Philip Morris and Altria Shares Decline After FDA Clears Juul E-Cigarettes for Market

Shares of Philip Morris International and Altria Group declined after the FDA authorized Juul Labs to keep its e-cigarettes on the US market. Philip Morris fell 2.6% to $178.52, while Altria dropped 2.3% to $57.52 in early afternoon trading. The decision comes after a 2022 federal ban pushed Juul to the brink of bankruptcy and Altria's stake in the company was divested at a near-total loss.

Shares of Philip Morris International and Altria Group declined after the Food and Drug Administration (FDA) authorized Juul Labs to keep its e-cigarettes on the U.S. market. Philip Morris fell 2.6% to $178.52, while Altria dropped 2.3% to $57.52 in early afternoon trading on July 17, 2025 [1][2][3][4][5].

The FDA's decision marks a significant reversal from the 2022 ban that had pushed Juul to the brink of bankruptcy. The ban, which was later stayed, had halted the sale of Juul's four varieties of tobacco and menthol-flavored pods and the e-cigarette device. The FDA's authorization follows years of regulatory scrutiny and an appeal by Juul Labs [1].

The decision comes five years after Juul initially submitted its products for federal review. The FDA's approval was based on a rigorous evaluation of the data provided by Juul, which concluded that a marketing approval for the system was "appropriate for the protection of public health" [1].

The authorization is expected to serve as a catalyst for Juul Labs, which was once one of the biggest players in e-cigarettes. The company had faced lawsuits accusing it of targeting underage users with fruity flavors and had agreed to pay $1.2 billion to resolve thousands of lawsuits [2].

Altria Group, which in 2018 paid $12.8 billion for a minority stake in Juul, divested its holdings in 2023 at a near-total loss. The company also stopped selling its NJOY Ace e-cigarettes after the U.S. International Trade Commission sided with rival Juul Labs in a patent dispute [4][5].

The FDA's decision to authorize Juul Labs' e-cigarettes is a notable development in the regulatory landscape of nicotine products. It follows wider expectations that the Trump Administration would ease regulatory hurdles for launching new vapes and other smoking alternatives. However, the FDA has been criticized for slow product authorizations and for failing to address the widespread trade in unauthorized products [1].

References:
[1] https://www.reuters.com/sustainability/boards-policy-regulation/fda-approves-juuls-tobacco-menthol-e-cigarettes-2025-07-17/
[2] https://www.bloomberg.com/news/articles/2025-07-17/fda-gives-juul-authorization-for-e-cigarettes-wsj-reports
[3] https://www.investing.com/news/stock-market-news/tobacco-stocks-steady-after-fda-authorizes-juul-ecigarettes-93CH-4140135
[4] https://www.marketscreener.com/news/philip-morris-altria-shares-decline-following-fda-s-juul-ruling-ce7c5cd9d180f624
[5] https://www.marketwatch.com/story/philip-morris-altria-shares-decline-following-fda-s-juul-ruling-e690aecd