The Food and Drug Administration said on Tuesday it would allow two new cigarettes from Lorillard Inc onto the market, marking the first time the agency has exercised its power to regulate tobacco products.
The FDA, which got that authority in 2009, authorized the company to sell Newport Non-Menthol Gold Box 100s and Newport Non-Menthol Gold Box after it showed they were no more dangerous than products it already sold.
Lorillard's shares rose as much as 4.9 percent before dropping back. They closed up 0.3 percent at $43.53.
"The FDA actions are a very positive development for the tobacco sector, in our view," said Bonnie Herzog, an analyst at Wells Fargo Securities, who noted that the lack of action on the part of the FDA for so long had weighed on the industry. "Now that a potential precedent has been set," she said, "we believe future actions may occur more quickly."
http://www.reuters.com/article/2013/06/25/us-fda-cigarettes-idUSBRE95O13020130625
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