Philip Morris International (PM) and other US tobacco stocks edged higher in Friday trading after the US Food and Drug Administration proposed to require foreign tobacco product manufacturers to register their companies and list their products with the agency.
The regulator said Friday the proposed rule seeks to protect public health by improving its ability to identify illegal foreign tobacco products, such as e-cigarettes, and conduct on-site inspections abroad.
The proposed regulation also seeks to level the playing field for US tobacco manufacturers, which are currently required under federal law to register and list their products, the FDA said.
Under the FDA's proposal, the agency said it would prescribe the format, content, and procedures for establishment registration and tobacco product listing for both foreign and domestic firms that manufacture, prepare, compound, or process tobacco products.
Shares of Philip Morris rose 1.4%, British American Tobacco (BTI) added 0.5%, Turning Point Brands (TPB) was up 0.3%, while Altria Group (MO) fell 0.2%.
Price: $181.44, Change: $+2.51, Percent Change: +1.40%