On Friday, the U.S. Food and Drug Administration plans to reduce the rate of disease and death caused by tobacco by proposing to lower nicotine in cigarettes to non addictive levels.
Shares of a maker of Marlboro and Parliament brands called Altria Group, Inc. (NYSE: MO) dropped more than 17% after this announcement. Other tobacco stocks such as Vetor Group fell more than 6% and British American Tobacco p.l.c. (NYSE: BTI) stock decreased by 3% as well.
Addiction to cigarettes has lead to an overwhelming amount of death and disease. The FDA plans to begin a “public dialogue” about lowering nicotine levels to non addictive levels in cigarettes aiming to cut down a number of future smokers since about 90% of adult smokers start before the age of 18.