We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Philip Morris (PM) Seeks FDA Approval for IQOS Products
Read MoreHide Full Article
Tobacco giant Philip Morris International Inc. (PM - Free Report) has filed an application with the US Food and Drug Administration (FDA) for its IQOS products (heatsticks that heat tobacco instead of burning it).
Once the Modified Risk Tobacco Product (MRTP) claim is approved by FDA, the company will be able to enjoy a significant marketing advantage over other reduced risk tobacco products that are being sold currently. The regulatory authority is expected to take a minimum of 60 days for completing an administrative review of the application.
The heatsticks are already available in several test markets. Philip Morris launched these products in fiscal 2015 in Japan and Italy where it became very popular. Further, there is a steady increase in the number of iQOS purchasers who have predominantly or fully converted to these reduced risk products.
Once these products get a go ahead from the FDA, Altria Group Inc. (MO - Free Report) will also be able to sell these products in the U.S.
Altria and Philip Morris have been working on reduced risk tobacco products for quite some time. In 2015, the two companies had entered into a strategic agreement under which Philip Morris markets Altria’s MarkTen e-cigarettes internationally. Altria in turn distributes two of Philip Morris’ heated tobacco products in the U.S.
Further, the companies have decided to partner on a regulatory engagement related to the products. The joint venture has made excellent progress on branding and go-to-market strategies for non-conventional cigarettes in the U.S. market. Additionally, the two companies were working together on the above mentioned modified-risk tobacco product claim.
Philip Morris, like several other tobacco companies has been witnessing declining demand for cigarettes due to the ongoing anti-tobacco campaigns and price rise to offset the rising taxes. In fact, so far this year, the shares of this tobacco maker have gained just 0.31%, underperforming the Zacks categorized Tobacco industry, which has showcased a gain of 6.74%.
Zacks Rank & Key Picks
Philip Morris currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader consumer staple sector include Sanderson Farms Inc. , Hormel Foods Corp. (HRL - Free Report) .
Hormel Foods Corp. also carries a Zacks Rank #2 and has an expected earnings growth rate of 10.4%.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Philip Morris (PM) Seeks FDA Approval for IQOS Products
Tobacco giant Philip Morris International Inc. (PM - Free Report) has filed an application with the US Food and Drug Administration (FDA) for its IQOS products (heatsticks that heat tobacco instead of burning it).
Once the Modified Risk Tobacco Product (MRTP) claim is approved by FDA, the company will be able to enjoy a significant marketing advantage over other reduced risk tobacco products that are being sold currently. The regulatory authority is expected to take a minimum of 60 days for completing an administrative review of the application.
The heatsticks are already available in several test markets. Philip Morris launched these products in fiscal 2015 in Japan and Italy where it became very popular. Further, there is a steady increase in the number of iQOS purchasers who have predominantly or fully converted to these reduced risk products.
Once these products get a go ahead from the FDA, Altria Group Inc. (MO - Free Report) will also be able to sell these products in the U.S.
Altria and Philip Morris have been working on reduced risk tobacco products for quite some time. In 2015, the two companies had entered into a strategic agreement under which Philip Morris markets Altria’s MarkTen e-cigarettes internationally. Altria in turn distributes two of Philip Morris’ heated tobacco products in the U.S.
Further, the companies have decided to partner on a regulatory engagement related to the products. The joint venture has made excellent progress on branding and go-to-market strategies for non-conventional cigarettes in the U.S. market. Additionally, the two companies were working together on the above mentioned modified-risk tobacco product claim.
PHILIP MORRIS Price
PHILIP MORRIS Price | PHILIP MORRIS Quote
Philip Morris, like several other tobacco companies has been witnessing declining demand for cigarettes due to the ongoing anti-tobacco campaigns and price rise to offset the rising taxes. In fact, so far this year, the shares of this tobacco maker have gained just 0.31%, underperforming the Zacks categorized Tobacco industry, which has showcased a gain of 6.74%.
Zacks Rank & Key Picks
Philip Morris currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader consumer staple sector include Sanderson Farms Inc. , Hormel Foods Corp. (HRL - Free Report) .
Sanderson Farms carries a Zacks Rank #2 (Buy) and has an expected earnings growth rate of 5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hormel Foods Corp. also carries a Zacks Rank #2 and has an expected earnings growth rate of 10.4%.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>