Philip Morris International Invests in U.S. Alternative Tobacco Market
STAMFORD, Conn. — Philip Morris International announced its intentions to invest $600 million in a new, Colorado-based manufacturing facility for Zyn nicotine patches even as it has pushed back the release of one of its other alternative tobacco products.
The plant is expected to open in 2025 and would create 500 jobs, according to Reuters. The decision to expand came from strong sales for Zyn, which entered the U.S. market after Philip Morris purchased the product's original parent company, Swedish Match, in 2022.
According to the news outlet, these plans build off of the company's work to create alternatives to traditional cigarettes amid greater health awareness and stricter regulation. However, how quickly those plans can come to fruition remains somewhat uncertain, as sales on Zyn.com have been suspended following a subpoena from the District of Columbia, which requested information about Philip Morris' compliance with the state's 2022 ban on the sale of all flavored tobacco.
The company has also pushed back the anticipated test launch of its IQOS heated tobacco product. Originally given the greenlight by the U.S. Food and Drug Administration (FDA) last year and scheduled for launch in the second quarter of 2024, the plan has been moved back to later in the year, with the introduction of IQOS now anticipated for the fourth quarter, Reuters reported.
Despite the agency authorization and the availability of similar products in 27 international markets, health campaigns and anti-smoking advocates have pushed back on the device's authorization, sending letters to regulators accusing the company of misrepresenting past regulatory decisions, the news outlet continued.
In the meantime, Philip Morris continues to wait on FDA approval for its other alternative tobacco products, including the IQOS ILUMA. Though IQOS smoking devices had been available via Altria Group Inc., an agreement to transfer the rights to Philip Morris meant new premarket tobacco product applications were needed for the updated versions, including the ILUMA.
Approval for the ILUMA device is anticipated for sometime in late 2025.