There is a regulatory vacuum for synthetic nicotine disposable / open flavor cigarettes in the United States
There is a regulatory vacuum for Synthetic Nicotine and disposable / open flavor cigarettes in the United States, and the industry is expected to continue to standardize with the introduction of policies in the future. In terms of flavor cigarettes, in 2020, the United States banned the sale of bullet change cigarettes and only allowed the sale of tobacco and mint flavor bullet change e-cigarettes.
However, the sale of open and one-time closed flavor cigarettes has not been banned. Considering the strong certainty of the harm reduction trend of e-cigarettes and the certain attraction of flavor cigarettes to minors, we believe that the certainty of getting the approval of tobacco and mint flavors is strong, while the probability of passing the approval of flavor cigarettes is relatively small; In terms of cigarette set and cigarette oil, electronic cigarette set is used as a conventional tool, and cigarette oil is complex and difficult to supervise.
Therefore, we believe that the approval of cigarette set is highly deterministic, while cigarette oil is uncertain. Domestically, Boulder, vaperesso (open e-cigarette brand of SIMORE) and other brands have submitted applications for cigarette sets, of which Boulder has submitted an application for cigarette oil; In terms of Synthetic Nicotine, the current FDA mainly regulates the extraction of nicotine, while Synthetic Nicotine is in a regulatory vacuum. Referring to the EU’s inclusion of Synthetic Nicotine in drug regulation, we believe that FDA is more likely to include synthetic nicotine in drug regulation in the future.
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