22nd Century Stock Surges 85% Amid New Partnerships and FDA Compliance

22nd Century (XXII) stock rose 86% on Thursday after the company announced new partnerships for its low-nicotine cigarettes, designed to reduce smoking's harmful effects. The FDA-compliant cigarettes aim to wean smokers off normal cigarettes and help them quit. The stock has fallen 96.25% year to date but sees a 9.17% upside potential according to TipRanks' AI analyst Spark.

July 2, 2025 - 22nd Century Group (XXII) stock experienced a significant 86% increase on Thursday, following the announcement of new partnerships to expand the availability of its low-nicotine cigarettes. These cigarettes, designed to reduce smoking's harmful effects, aim to help smokers wean off regular cigarettes and potentially quit. Despite a year-to-date decline of 96.25%, the stock is seen with an upside potential of 9.17% according to TipRanks' AI analyst Spark [1].

The company's VLN (Very Low Nicotine) products contain tobacco with 95% less nicotine than conventional cigarettes, aligning with the U.S. Food and Drug Administration's (FDA) proposed Tobacco Product Standard for Nicotine Yield. This standard, set to take effect two years after final approval, aims to limit nicotine content to 0.7 mg per gram of tobacco in cigarettes [2].

22nd Century's VLN cigarettes are currently the only combustible products authorized by the FDA to meet the proposed standard, with an average nicotine content of 0.5 mg per gram of tobacco. The company's partnerships with multiple tobacco brands are expected to enhance market availability and consumer choice regarding nicotine consumption.

Larry Firestone, Chief Executive Officer of 22nd Century Group, expressed enthusiasm about the partnerships, stating, "We are excited to see our customer’s brands adding VLN cigarettes to their lineup. This will enhance market availability of VLN cigarettes and offer customers a Tobacco Harm Reduction product" [2].

The FDA estimates that by 2100, approximately 48 million youth and young adults who would have otherwise started smoking will not do so as a result of the proposed standard. 22nd Century Group is preparing to scale availability to all 50 states once it receives necessary state approvals.

Despite the stock's recent surge, 22nd Century Group continues to face challenges, including a market cap of $1.5 million and a net loss of $3.3 million for the first quarter of 2025. However, the company reported a substantial 50% increase in net revenue for the same period. The company's next earnings report is scheduled for August 8, 2025, which could serve as a significant catalyst for the stock.

References:
[1] https://www.nasdaq.com/articles/22nd-century-group-partners-tobacco-brands-promote-vln-reduced-nicotine-cigarettes
[2] https://za.investing.com/news/company-news/tobacco-brands-partner-with-22nd-century-to-expand-reduced-nicotine-cigarettes-93CH-3792255