FDA Approval For iQOS To Be A Game Changer For Altria

Philip Morris International (NYSE:PM) submitted a Modified Risk Tobacco Product (MRTP) application for its electronically heated tobacco product, iQOS, with the US Food and Drug Administration (FDA) on December 5th. This was consistent with the company’s goal of submitting the application in 2016, and the company anticipates the FDA taking a minimum of 60 days to complete an administrative review of its application. Once iQOS gets a go ahead, Altria (NYSE:MO) will get exclusive rights to sell these products in the US. Altria and Philip Morris have been working on reduced risk tobacco products for a while. In 2015, the companies entered into a strategic agreement under which PMI markets Altria’s MarkTen e-cigarettes internationally, while Altria distributes PMI’s heated tobacco products in the US. The companies have also decided to partner on regulatory matters in relation to the products. In this regard, the two companies are working together on the MRTP claim for iQOS.
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