Does the FDA's Juul Ban Threaten Cannabis Stocks?
Any company making vaporizers must now beware that federal regulators are on the prowl. On June 23, the Food and Drug Administration (FDA) ordered Juul Labs, maker of the Juul vaporizer systems and a partially owned subsidiary of Altria (NYSE: MO), to immediately cease selling its products in the U.S. Regulators cited gaps and inconsistencies in the company's safety data to justify the ban, and while it's been temporarily suspended as a result of legal action, the message is clear: Anyone who manufactures vaporizer products is on notice.
Given that many cannabis companies offer vapes as part of their lineups, it's reasonable for investors to be on the lookout for any signs of heightened risks to the industry. But based on the FDA's rationale for the Juul ban, there shouldn't be too much to worry about -- here's why.
Two years ago, the FDA banned a couple of flavored nicotine products and it also requested that vaporizer manufacturers apply for the right to continue selling vaporizers by submitting data about their safety for users and their efficacy for their marketed applications.
Source Fool.com
