🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Juul hires Altria executive to handle regulation amid vaping crisis

Published 10/01/2019, 09:57 PM
© Reuters. Signage for Juul vaping products is seen on a storefront in New York City

(Reuters) - Juul Labs Inc on Tuesday hired the head of regulatory affairs at its part-owner Altria Group (NYSE:MO) Inc to take on a similar role at the e-cigarette maker, amid a regulatory backlash against the growth of teen vaping in the United States.

Joe Murillo is the first big hire by Juul's new chief executive officer, K.C. Crosthwaite, who himself moved over from Altria last week.

Altria owns a 35.5% stake in Juul, which last week said it would suspend all advertising in the United States where the Trump administration has announced plans to remove all flavored e-cigarettes from store shelves to rising popularity among teenagers.

In his new role, Murillo will help guide the applications that Juul must submit by May to the U.S. Food and Drug Administration for any products it wants to keep on the market beyond that point, Crosthwaite said in an emailed statement.

"The company is fully committed to supporting and complying with FDA's final effective flavor policy and to working through the PMTA (premarket tobacco product application) process – a process Joe understands well and one he will help lead JUUL Labs through," Crosthwaite said.

"We invite an open dialogue, will listen to others and will be responsive to their concerns," he added.

The FDA last month warned the company about marketing its products as safer than traditional cigarettes and requested more documents and information within 30 days.

Flavored e-cigarettes represent 80% of Juul's sales. The company's had dropped to about $25 billion, from $38 billion when Altria invested in it, according to Morgan Stanley (NYSE:MS).

© Reuters. Signage for Juul vaping products is seen on a storefront in New York City

Federal prosecutors in California are conducting a criminal probe into Juul, The Wall Street Journal reported last month, though it said the focus of the probe was unclear.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.