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Investing.com -- 22nd Century Group Inc (NASDAQ:XXII) stock surged 50% following the company’s announcement of new partnerships to expand the availability of its VLN® reduced nicotine content cigarettes.
The tobacco products company has secured new brand partnerships including Smoker Friendly VLN® and Pinnacle VLN®, reflecting growing industry interest in its proprietary cigarettes that contain 95% less nicotine than conventional products. These partnerships position the company to capitalize on the FDA’s proposed Tobacco Product Standard, which would limit nicotine content in cigarettes.
"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 that will give the smoker a choice to control their nicotine consumption," said Larry Firestone, CEO of 22nd Century Group.
The FDA’s proposed standard, announced in January 2025, would set a maximum nicotine content of 0.7 mg per gram of tobacco in cigarettes, taking effect two years after final approval. 22nd Century’s VLN® products, with an average of 0.5 mg per gram, are currently the only combustible cigarettes authorized by the FDA to meet this standard.
According to the company, its patented tobacco can be sourced in sufficient quantities to meet market demand once the regulation is implemented. The FDA estimates that by 2100, approximately 48 million youth and young adults in the United States would avoid initiating smoking as a result of the proposed standard.
22nd Century Group has been developing reduced nicotine tobacco products for 27 years and plans to submit comments before the FDA’s rule-making comment period closes.
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