Deeming rule ‘manageable’

| May 6, 2016

Morgan Stanley said the FDA’s final deeming rule is consistent with its prior draft and maintains “an onerous pre-market approval for any new e-cigarette products … while adopting a more overarching approach to regulating cigars,” by including premium cigars and a future intent to ban characterizing flavors in all cigars.

The long-term financial impact from the deeming rule is likely manageable for the industry, but it will “almost certainly serve to slow the pace of innovation in the category” if they are not amended by future Congressional legislation, and could help large manufacturers by “potentially “freez[ing] market share” at current levels.

Category: Breaking News

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