Altria Halts Sales of NJOY Ace E-Cigarette Amid Patent Dispute

Apr.03

Altria halts sales of NJOY Ace e-cigarette after patent dispute with Juul Labs, impacting mint flavor market.

Key Points:

Altria has halted sales of its NJOY Ace e-cigarette due to a patent dispute.
The patent dispute involving NJOY Ace is related to Juul Labs.
This move is impacting the market, especially the only mint-flavored e-cigarette product authorized for sale.

According to a report from Morningstar on April 2nd, Altria Group has decided to stop selling its NJOY Ace e-cigarette product following a patent dispute with competitor Juul Labs. However, consumers can still purchase the product until the existing inventory at retailers is sold out.

This ruling is a setback for Altria. In 2023, the company had just completed its investment in Juul and agreed to acquire NJOY for at least $2.75 billion. Shortly after, Juul filed a complaint with the U.S. International Trade Commission (ITC), accusing NJOY Ace of patent infringement. The ITC requested that Altria cease importing, distributing, and marketing these devices by March 31. As a result, Altria's stock dropped by about 2% during Tuesday's midday trading.

Among the NJOY products that have been removed from the market is the mint-flavored e-cigarette product that was the only one authorized for sale by the Food and Drug Administration (FDA) in the United States. Altria CEO Billy Gifford stated in a January conference call with analysts that the ITC's decision limits consumer choice and "undermines public health" in a market saturated with illegal products.

References:

[1] Altria Stops Selling NJOY Ace E-Cigarettes in Patent Dispute With Juul

Also Read:

[1] ITC Upholds No Infringement Ruling in Juul Case

[2] USITC Rules in Favor of JUUL in Patent Infringement Case

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