BAT London Shares Gain 13.99% as FDA Vape Decision Draws Market Attention

Key Points

• BAT’s London-listed shares rose 13.99% last week, closing at 4,864 pence on May 15.
• The FDA’s recent authorization of flavored Glas ENDS products drew market attention to the U.S. review environment for flavored e-cigarettes.
• A U.S. court dismissed a sanctions-related criminal case against BAT, easing a historical legal overhang.
• BAT’s previously announced £1.3 billion 2026 share buyback plan and newer nicotine products such as VELO remained in investor focus.

2Firsts

May 18, 2026

According to bez-kabli.pl, citing market data, British American Tobacco’s London-listed shares rose 13.99% last week, climbing from 4,267 pence on May 8 to 4,864 pence on May 15.

On a daily basis, BAT shares rose 5.82% on May 12, the strongest single-day gain of the week. The stock gained 3.73% on May 13 and 3.22% on May 14. On May 15, BAT shares fell 1.98%, suggesting some profit-taking after the rapid rise.

FDA Authorization of Flavored Glas ENDS Products Drew Market Attention

One factor behind the shift in market sentiment was the U.S. Food and Drug Administration’s recent authorization of four flavored electronic nicotine delivery system (ENDS) products under the Glas brand. The authorization did not involve BAT’s Vuse products, but it attracted attention from investors in the tobacco and vapor sectors because it involved flavored e-cigarette products.

Flavored e-cigarettes have long faced significant uncertainty under the U.S. premarket tobacco product application (PMTA) review process. The Glas decision was viewed by the market as an important signal for monitoring the review environment for flavored ENDS products. However, because the authorization applied to Glas, it should not be interpreted as a direct regulatory breakthrough for BAT products.

U.S. Criminal Case Against BAT Over North Korea Sanctions Was Dismissed

In addition to the regulatory backdrop, BAT also received a company-specific legal development last week. Reuters reported that a U.S. judge dismissed a criminal case against BAT related to alleged violations of North Korea sanctions. The U.S. Department of Justice said BAT had fully complied with its 2023 deferred prosecution agreement.

Under the earlier agreement, BAT agreed to pay approximately $630 million in penalties and forfeiture and strengthen related compliance procedures. The dismissal eased some market concerns over BAT’s historical legal and compliance risks.

Buyback Plan and Newer Nicotine Business Remained in Focus

BAT previously announced a share buyback plan of up to £1.3 billion for 2026. For investors, the buyback plan reflects the company’s continued cash generation and capital-return capacity.

At the same time, BAT’s newer nicotine business remained in focus. Vuse is one of the major e-cigarette brands in the U.S. market, while VELO competes in the oral nicotine segment against brands such as Philip Morris International’s ZYN. Investors are watching whether BAT’s newer nicotine portfolio can continue to expand as U.S. regulation evolves and competition among compliant products intensifies.

Brief Industry Analysis: The Rally Reflects Improved Expectations, Not Final Outcomes

From an industry perspective, BAT’s rally reflected changing market expectations around the U.S. regulatory environment for newer nicotine products. The FDA’s authorization of flavored Glas ENDS products prompted investors to revisit the possibility that some flavored e-cigarettes could gain authorization through the PMTA pathway. BAT’s legal relief and buyback plan also provided company-specific support.

However, the rally should be interpreted with caution. The FDA authorization did not apply to BAT products, and U.S. regulation of flavored e-cigarettes remains subject to public-health debate and policy uncertainty. For BAT, the long-term growth of Vuse and VELO will still depend on the U.S. regulatory path, market competition, and consumer acceptance of compliant products.

(Cover Image:LInkedin)

2FIRSTS | FDA Tobacco Center Pushes Review-Efficiency Statement After Commissioner’s Exit

FDA CTP issued a May 7 statement on accelerating product review and improving PMTA efficiency, but did not push it via official X and newsletter until May 13, one day after FDA Commissioner Marty Makary’s resignation was confirmed. FDA has not explained the delay, and no public evidence links it directly to the leadership change. The timing is notable given CTP’s usual 24-hour distribution practice.

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2FIRSTS | U.S. Senator Durbin Criticizes FDA’s First Flavored Vape Authorization, Says Trump Administration Conceded to Big Tobacco

U.S. Senator Dick Durbin on May 13 criticized the Trump Administration’s Food and Drug Administration for approving the sale and marketing of fruit-flavored e-cigarettes for the first time, while also allowing some illegal vaping products to remain on the market. He also linked the regulatory shift to the departure of FDA Commissioner Marty Makary, saying White House pressure on regulators to approve tobacco product applications could create serious public-health consequences.

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