22nd Century Group Inc (XXII)

[commoncentsinvestor]

<Ive read a couple of articles but can someone please send me an article or something that shows me how XXII stands to benefit from cigarettes that contain less nicotine? >

22nd Century products address unmet needs of smokers: for those that want to quit, an innovative smoking cessation aid, and for those who decide to continue to smoke, cigarettes that
can reduce the level of exposure to nicotine, “tar” and other chemicals in cigarettes. (Source:
Dr. Elemer Piros, May 2011)


The company has 5 revenue models. (market in red)

1. Two “modified risk” cigarette candidates for F.D.A. clearance: BRAND A, a very low nicotine (VLN) cigarette and BRAND B, a very low tar-to-nicotine product (Modified Risk Products)... $80B U. S. and $700B globally

2. A prescription smoking cessation aid in development (X-22)...$1.5B U. S. and $4B globally

3. Super premium cigarettes (Red Sun® and Magic®) …just 1% of the premium U.S. market is valued more than $1B – Lorillard (NYSE: LO) only sells cigarettes in the U.S.; has 14% market share and $15B market cap

4. Huge licensing opportunities (105 patents in 78 countries and 38 patent applications) to both Big Pharma (prescription X-22) and Big Tobacco (technology and tobaccos for modified risk tobacco products...Multibillion dollar opportunity

5. A 5-year U.S. government contract with NIDA, a department of the National Institutes of Health (NIH) to sell its SPECTRUM® research cigarettes that contain various nicotine levels (from very low to high).