FDA proposes first regulations for e-cigarettes

At first glance, the FDA’s proposal is “broadly as expected and not as restrictive as some had feared,” Wells Fargo Securities analyst Bonnie Herzog wrote in a note to investors.

“It seems to be a responsible approach … and shows the FDA’s commitment to look at particular e-cigarettes in a science-based way rather than just conjecture,” said Jason Healy, president of Blu e-cigs, which is owned by Lorillard Inc. and holds more than 45 percent of the market. “Obviously we’ve got a long way to go. This may be just some calm before the storm.”

Healy noted that the e-cigarette landscape and the products themselves will continue to evolve and grow before the regulations take effect, and they will likely spur a consolidation of companies in the market.

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