Altria Group Inc (MO)

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Altria's stock falls, reversing earlier gains after FDA prioritized enforcement of unauthorized e-cigarette flavors
By: MarketWatch | January 2, 2020

Shares of Altria Group Inc. MO, -1.32% sank 1.5% in afternoon trading Thursday, reversing earlier gains of as much as 0.9%, after the U.S. Food and Drug Administration said it would prioritize enforcement against unauthorized flavored e-cigarettes, including fruit and mint flavors. "The United States has never seen an epidemic of substance use arise as quickly as our current epidemic of youth use of e-cigarettes," the FDA said in a statement. The Wall Street Journal had reported on Tuesday, citing people familiar with the matter, that the FDA planned to ban the sale of fruity flavors in cartridge-based e-cigarettes. Altria owns a 35% stake in e-cigarette giant Juul Inc. In late October, Altria had announced a $4.5 billion write-down of its investment in Juul, citing the increased likelihood of FDA action to ban flavored e-vapor products. Altria's stock has rallied 22% over the past three months, but was down 0.3% over the past 12 months, while the S&P 500 SPX, +0.84% has gained 29% the past year.

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