If you want to divorce yourself completely from tobacco, you’ll want nicotine that’s not derived from tobacco
Part of the goal, for Tully, is to make everything much cheaper—especially if they hope to compete with Big Tobacco. Originally, they were producing Synthetic Nicotine at $10,000 per liter. Over time, as the process was scaled and market demand increased, the cost has decreased to anywhere, Tully said, from $900 to $2,200 per liter. He adamantly dismisses the notion that Next Generation Labs has been trying to fall into some FDA loophole.
“A ‘loophole’ is a deficiency in the writing of the statute,” he said. “If the statute has been ill-conceived, and the regulation has been ill-drafted, it is not the responsibility of the industry to conform to some kind of idea that you can’t innovate in those spaces where the legislation doesn’t occur.”
Instead, Tully frames the value of his company’s products in terms of people looking to switch from smoking. “If you’re an adult consumer, and you’ve made a decision that you want to divorce yourself completely from tobacco, you’ll want to move toward nicotine that’s not derived from tobacco,” he said.
“The landscape around 2014, any kind of nicotine, whether it was in vaping devices or smoking-cessation products like gum, was all derived from tobacco,” he continued. “That requires a certain socioeconomic burden. It leaves consumers, really, with just one choice. If they wanted to quit tobacco, they would have had to keep supporting the tobacco industry to do it.”
Soon, he said, that might not be the case.
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