If Biden Nixes Nicotine, 22nd Century Group Stock Could 10X
Cigarettes just might be getting a whole lot less stimulating, per a new rule limiting the amount of nicotine in cigarettes being proposed by the regulators at the Food and Drug Administration (FDA). While the proposed rule probably won't be finalized enough for the public to comment on it until mid-2023, it's being pursued by the Biden administration because it would support the president's goal to significantly reduce the U.S. cancer death rate over the coming decades. And if the rule is ultimately adopted, it'll upend the entire cigarette industry, likely laying waste to players whose products don't meet the new ceilings on nicotine content, which is practically all of them.
There is a relatively unknown business that'll flourish under the new limits, though: 22nd Century Group (NASDAQ: XXII). In fact, the stock has a realistic chance of multiplying by 10 times over the coming years if the limit is imposed.
You probably haven't heard of 22nd Century Group's tobacco products because it isn't (yet) a major competitor in the cigarette industry, and it's debatable whether it's correct to call it a cigarette stock at all. Since getting the FDA's approval in late 2021, it makes cigarettes with very low nicotine content, which regulators explicitly endorse as being less risky than the alternatives. Low nicotine cigarettes are less addictive, making them a good tool for people trying to quit smoking.
Source Fool.com
