Philip Morris Shares Drop 7.5% as Nicotine Pouches Await FDA Approval
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 01 2026
0mins
Popular nicotine pouch products have yet to be cleared for sale in the United States despite a fast-track Food and Drug Administration scheme as scientists at the agency hesitate to authorize them due to potential risks to new users, including children, three sources told Reuters. Shares of Philip Morris (PM) are down $12.38, or 7.5%, to $152.97 in early Wednesday trading. Other publicly traded makers of tobacco products include Altria Group (MO), British American Tobacco (BTI) and Imperial Brands (IMBBY).
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Analyst Views on BTI
About BTI
British American Tobacco p.l.c. is a global multi-category consumer goods business company. The Company provides tobacco and nicotine products. Its segments include the United States, Asia Pacific Middle East and Africa, and Americas and Europe. Its product categories include Vapor, Heating Products (HPs), Modern Oral, Traditional Oral, and Combustible cigarettes. Vapor products are handheld, battery-powered devices that heat a liquid to produce an inhalable aerosol, known as vapor. HPs are devices that use heat to generate a nicotine-containing aerosol, which the user inhales. This category includes Tobacco Heated Products and Herbal Products for Heating (HPH). Modern Oral products are smoke-free oral nicotine products called nicotine pouches, designed for use in the mouth. Traditional oral products include snus and snuff. Its brands include Vuse, glo, Velo, Grizzly, Dunhill, Kent, Lucky Strike, Pall Mall, Rothmans, Newport, Natural American Spirit, Camel, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- New Executive Appointment: The company announced Dragos Constantinescu as the new Chief Financial Officer and Executive Director effective September 1, 2026, aiming to strengthen financial management and enhance corporate governance to tackle future market challenges.
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- Wall Street Perspectives: Four analysts rated BTI as Strong Buy, while one analyst gave it a Hold recommendation and another suggested Strong Sell, highlighting divergent views in the market and the need for investors to carefully assess risks and rewards.
See More
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- Market Reaction Analysis: Analysts noted that this price increase is sharper than previous ones, reflecting ongoing pressures on cigarette volumes, although it is not surprising as it follows Altria's typical quarterly pricing cadence.
- Brand Loyalty Impact: Despite potential downtrading pressures on consumers, Altria's Marlboro brand is expected to maintain customer loyalty due to its strong promotional activities and loyal customer base, particularly through products like Marlboro Special Select, Marlboro Black, and the new Marlboro Cowboy Cut.
- Industry Outlook: Investor concerns regarding the health of low-income consumers are being closely monitored, with expectations that Altria and British American Tobacco will face elasticity challenges in future price increases, while the overall industry is still anticipated to achieve strong net price realization.
See More
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- Executive Appointment: British American Tobacco announced that Dragos Constantinescu will join as CFO and executive director effective September 1, 2026, marking a strategic shift in financial management aimed at enhancing transparency and efficiency.
- Previous Role: Currently serving as CEO of Asahi Europe & International since 2019, Dragos brings extensive management experience that is expected to provide new perspectives and leadership to British American Tobacco.
- Transition Plan: Until Dragos's appointment, Javed Iqbal will continue as interim CFO, ensuring a smooth transition in financial functions while also maintaining his role as Director of Digital & Information to support ongoing digital transformation efforts.
- Market Reaction: British American Tobacco is viewed as an ideal defensive asset with a current P/E ratio of 12, and the new CFO is expected to further solidify the company's financial stability, attracting more investor interest in its high dividend yields.
See More
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- Extensive Experience: Prior to joining BAT, Constantinescu served as CEO of Asahi Europe & International and has been with Asahi Breweries since 2019, bringing 16 years of senior finance and management experience from BAT, which will be crucial for supporting the company's transformation.
- Strategic Transformation: BAT's CEO Tadeu Marroco stated that Constantinescu's international experience and deep understanding of the company will be key assets during this critical phase of transformation, aiding in achieving sustainable mid-term growth and robust cash returns.
- Positive Momentum: Constantinescu emphasized that BAT is on a clear transformation path towards
See More
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- New Capital Injection: British American Tobacco has invested $10 million in Charlotte's Web, providing fresh capital to support the company's strategic initiatives, which is expected to drive product innovation and market expansion.
- Revenue Growth Momentum: The company reported a 15.8% sequential revenue increase in Q4 2025, driven by direct-to-consumer sales and product diversification, indicating a strong rebound in market demand.
- Significant Cost Management: Charlotte's Web has reduced its SG&A expenses by 44.5% over the past two years, demonstrating effective cost control and positioning for future profitability, despite facing a net loss of $11.4 million.
See More
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- Healthcare Program Participation: As a CBD launch partner for the CMMI Medicare pilot, the company is set to provide CBD products to senior patients starting in April 2026, potentially opening new market opportunities for approximately 67 million Medicare beneficiaries.
- Regulatory Policy Progress: The advancement of the HEMP Act signals significant policy support for the CBD industry, expected to facilitate the legalization of full-spectrum CBD products, further enhancing Charlotte's Web's competitive position in the market.
- Product Innovation and Market Expansion: In 2025, the company launched Brightside™ low-dose THC gummies, diversifying its product portfolio and achieving a 4.7% year-over-year growth in direct-to-consumer sales, indicating strong market demand.
See More
