Altria Group Inc (NYSE:MO) shares are trading higher Wednesday after the U.S. Food and Drug Administration temporarily suspended the ban of Juul e-cigarette sales.
“On July 5, 2022, FDA administratively stayed the marketing denial order. The agency has determined that there are scientific issues unique to the JUUL application that warrant additional review,” the FDA’s tobacco division said via tweet.
The administrative stay will temporarily suspend the previously issued marketing denial order during the additional review. However, the stay and the agency’s review does not constitute authorization to market, sell, or ship Juul products, the FDA said.
Altria owns a 35% stake in the e-cigarette company. At the end of the first quarter, the estimated fair value of Altria’s Juul investment was $1.6 billion.
See Also: FDA Temporarily Suspends Banning Order On Juul’s E-Cigarettes
MO Price Action: Altria has traded between $57.05 and $41 over a 52-week period.
The stock initially surged on the news in premarket trading, but it was flat at press time.
Photo: HS You from Flickr.