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Philip Morris Publishes Update on Reduced Risk Tobacco

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Philip Morris International Inc. (PM - Free Report) has published its first scientific update on its reduced risk tobacco products. As more and more people are shifting consumption away from traditional tobacco products, there is high competition among tobacco companies to capture market share by providing best quality tobacco products which are potentially less harmful.

Philip Morris puts a great focus on alternative tobacco products. In 2014, Philip Morris had constructed a €500 million ($679.5 million) manufacturing facility near Bologna, Italy to produce reduced risk tobacco products called 'Next Generation Products' (NGPs). Philip Morris launched a set of Next Generation Products (NGPs) in earlier 2015 to attract adult consumers while reducing the risks related to tobacco products.

The company has engaged 300 scientists for this project. They are carrying out a meticulous research which includes lab and clinical studies, along with pioneering systems toxicology. The program also incorporates studies of actual product use, along with better understanding of product communications and also post-market research in a bid to find a less harmful product for consumers.

The extensive research is in line with the guidelines set by the U.S. Food and Drug Association concerning the tobacco products that can be sold in the country. The study also conducts assessment programs which comprise studies on actual product use, methods of introducing the product in the market as well as post-market research.

Philip Morris, currently carries a Zacks Rank #3 (Hold) and has considerable presence in the unconventional tobacco products category. Further, several of its potentially less harmful products have gained popularity in the market. The company has also enhanced investment in research and development for the category in 2016.

Moreover, during fiscal 2015, Philip Morris expanded the geographic presence of its product, iQOS (Heatsticks that heat tobacco instead of burning it). The company achieved huge success with the first wave of expansion in Japan reaching over 60% of the adult smoker population.

Other tobacco companies like Altria Group Inc. (MO - Free Report) , Reynolds American Inc. and British American Tobacco (BTI - Free Report) have also come up with reduced risk tobacco products in order to tap the growing preference for these products. Reynolds’ Vuse and Altria’s Mark Ten e-cigs are significantly popular in the market.

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