Tobacco stocks tank after FDA says it plans to cut nicotine in cigarettes to non-addictive levels

Markets Insider

Tobacco stocks slumped on Friday following news that the US Food and Drug Administration seeks to lower nicotine in cigarettes to non-addictive levels.

Here are some of the movers:

• Altria: -9%
• Phillip Morris International: -5%
• Vector Group: -4%
• British American Tobacco's American depository receipt shares: -4%

"Because nicotine lives at the core of both the problem and the solution to the question of addiction, addressing the addictive levels of nicotine in combustible cigarettes must be part of the FDA's strategy for addressing the devastating, addiction crisis that is threatening American families," said Scott Gottlieb, the FDA commissioner, in a statement.

"Unless we change course, 5.6 million young people alive today will die prematurely later in life from tobacco use," he added.

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