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Oct 04, 2017

Altria Group Inc. , estimated that domestic cigarette industry shipment volume decreased by about 3.5 percent in the first half of 2017. Moody’s Investors Service projects 80 percent of the securities won’t make scheduled payments based on historical declines of 3 percent to 4 percent in U.S. smoking. A U.S. Food and Drug Administration proposal in July to cut the amount of nicotine in cigarettes to non-addictive levels cut tobacco bond returns 0.4 percentage point in the third-quarter, a potential buying opportunity, Barton said. Tobacco companies are expected to vigorously oppose the proposal. “Near-term, we don’t see a ban of nicotine in cigarettes," Barton said. There’s also value in certain zero-coupon tobacco bonds trading at discounts of more than 50 percent to accreted value that may be refinanced, said Ben Barber, who manages Goldman Sachs Asset Management’s $5.2 billion high-yield muni fund. The fund returned 8.2 percent through the third quarter and had 8.8 percent of assets in tobacco debt at the end of August. Nuveen stumbled on its investment in FirstEnergy Solutions, the power-generation unit of FirstEnergy Corp.

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study alleges cigarette makers promote "smoke without smoking" Source: Xinhua| 2017-08-19 15:34:09|Editor: Song Lifang SAN FRANCISCO, Aug. 18 (Xinhua) -- Tobacco companies have known for decades that without counseling "nicotine replacement therapy" or NTR, used by consumers to complement smoking, hardly helps smokers quit, according to a study out of the United States. What's more, American cigarette makers embraced NTR as a business opportunity. Combined with counseling, nicotine patches, gum, lozenges, inhalers or nasal sprays - together known as NRT - came into play in 1984 as prescription medicine. In 1996, at the urging of pharmaceutical companies, the U.S. Food and Drug Administration (FDA) allowed those products to be sold over-the-counter. The tobacco industry once viewed nicotine patches and gum as a threat to their cigarette sales. However, with formerly secret internal documents known as the "Tobacco Papers," dated between 1960 and 2010 from the seven major tobacco companies operating in the United States, researchers at the University of California, San Francisco, revealed that cigarette makers had started investing in alternative forms of nicotine delivery as early as the 1950s, but stopped short because people largely regarded nicotine as harmful, and such products might have attracted the attention of FDA regulators. Published this week in the American Journal of Public Health (AJPH), the study titled "Tobacco Industry Research on Nicotine Replacement Therapy: 'If Anyone Is Going to Take Away Our Business It Should Be Us'" found that in 1987, three years after FDA first approved nicotine gum as a quitting aid, the tide had turned on the public perception of nicotine; and that by 1992, the tobacco industry had determined that patches and gum by themselves do not help smokers quit.

4. Another critical area of consideration is economics. Tobacco use reduces overall national incomes by up to 3.6%. At the society level, direct costs are estimated from public and private medical costs of treating cigarette-related diseases. According to a study reported by Bernama in 2007, three smoking-related diseases – ischemic heart disease, lung cancer and chronic obstructive pulmonary disease – consumed about RM3.5bil of Malaysia’s healthcare budget. 5. More importantly, a 2007 study demonstrated that retailer compliance with laws limiting sales to minors appears to be significant in reducing youth access to cigarettes. In fact, the Government’s 2012 International Tobacco Control Report stated that tobacco taxes and prices have not increased at a rate high enough to offset income growth, so cigarettes are becoming more affordable to consumers. We must persist with the Government’s recommendation that the price be kept high through taxation as this works as a measure to help smokers quit and also as a deterrent to young people. As a nation, we simply cannot turn our backs on the responsibility of protecting our youths and children from any threat to their lives.

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