Rising Use Of E-Cigarettes

BMI View : There is a growing demand for smoking cessation products as global tobacco consumption remains stubbornly highly despite the increase in global health warning labels on tobacco packages and national anti-tobacco mass-media campaigns. Factors driving this include ongoing marketing efforts by the tobacco industry and population growth in countries with high tobacco consumption. With tobacco consumption linked to negative healthcare outcomes, governments are looking to diversify the provision of treatment for smokers looking to quit.

In February 2014, GlaxoSmithKline (GSK) and Johnson & Johnson (J&J) called for more stringent regulation of e-cigarettes. According to e-mails from a GSK executive that were made public in mid-February 2014, the company stated that Europe should follow the lead of the UK, which was looking to enforce requirements for e-cigarettes to be licensed as medicines much the way other nicotine-replacement therapy products are. J&J, also stated that it is 'strongly in favour of' regulating all non-tobacco nicotine products, including e-cigarettes, as medicines.

In March 2014, the European Parliament and Council announced that it was revising the Tobacco Product Directive (TPD). Under this directive, advertising of nicotine-containing devices that are not licensed as medicines will be prohibited, products will be required to carry health warnings, meet purity and emissions standards that are yet to be defined, provide data on nicotine uptake, be subject to restrictions on total nicotine content, and suppliers will be required to bear full responsibility for quality and safety when used 'under normal or reasonably foreseeable conditions'. Dates for enactment are yet to be specified, but legislation is expected to be required in member states by 2016, and full compliance by 2017. In practice, this means that from 2017 at the latest, suppliers will have to choose between the probably lower manufacturing costs but greater marketing restrictions imposed by the TPD, or to accept the higher manufacturing costs but other benefits of medicines licensing.

Addictive
UK NHS: Prescription Of Nicotine Cessation Products (Thousands)

Rising Use Of E-Cigarettes

BMI View : There is a growing demand for smoking cessation products as global tobacco consumption remains stubbornly highly despite the increase in global health warning labels on tobacco packages and national anti-tobacco mass-media campaigns. Factors driving this include ongoing marketing efforts by the tobacco industry and population growth in countries with high tobacco consumption. With tobacco consumption linked to negative healthcare outcomes, governments are looking to diversify the provision of treatment for smokers looking to quit.

In February 2014, GlaxoSmithKline (GSK) and Johnson & Johnson (J&J) called for more stringent regulation of e-cigarettes. According to e-mails from a GSK executive that were made public in mid-February 2014, the company stated that Europe should follow the lead of the UK, which was looking to enforce requirements for e-cigarettes to be licensed as medicines much the way other nicotine-replacement therapy products are. J&J, also stated that it is 'strongly in favour of' regulating all non-tobacco nicotine products, including e-cigarettes, as medicines.

In March 2014, the European Parliament and Council announced that it was revising the Tobacco Product Directive (TPD). Under this directive, advertising of nicotine-containing devices that are not licensed as medicines will be prohibited, products will be required to carry health warnings, meet purity and emissions standards that are yet to be defined, provide data on nicotine uptake, be subject to restrictions on total nicotine content, and suppliers will be required to bear full responsibility for quality and safety when used 'under normal or reasonably foreseeable conditions'. Dates for enactment are yet to be specified, but legislation is expected to be required in member states by 2016, and full compliance by 2017. In practice, this means that from 2017 at the latest, suppliers will have to choose between the probably lower manufacturing costs but greater marketing restrictions imposed by the TPD, or to accept the higher manufacturing costs but other benefits of medicines licensing.

Addictive
UK NHS: Prescription Of Nicotine Cessation Products (Thousands)

Patches, Chewing Gum Or An E-Cigarette?

Governments across Europe have included anti-smoking drugs on their reimbursement lists - creating revenue-earning opportunities for companies investing funds in the R&D of smoking cessation products. The regulation of e-cigarettes (which compete directly against smoking cessation products such as GSK's Nicorette) will therefore act as a bottleneck for the electronic device's developers and manufacturers. This will be positive for the producers of the more traditional anti-smoking products, particularly as data for the UK shows that the increase in e-cigarette use over recent years appears to reflect in part, smokers using e-cigarettes instead of more traditional nicotine replacement therapies (NRT) and also users who would not otherwise have used NRTs. E-cigarettes are now the first choice of many smokers attempting to quit the habit.

Up In Smoke
UK NHS: Prescription Value Of Nicotine Cessation Products (GBPmn)

UK: Consumption Of Smoking Cessation Products

The UK's NHS Stop Smoking Service offers patients: nicotine gum, patches, microtabs, lozenges, inhalators, nasal sprays and prescription medicines Zyban (bupropion hydrochloride) and Champix (varenicline). A smoking ban, making it illegal to smoke in all enclosed places in England, came into force on 1 July 2007 as a consequence of the Health Act 2006 - indirectly creating a case for smokers to consume smoking cessation products in bid to beat cravings.

A Growing Use Of E-Cigarettes
UK: Aids Used In Most Recent Quit Attempt (%)

In 2013, the NHS dispensed 1.90mn smoking cessation products at a value of GBP51.76mn (USD88.63mn), a decrease from the 2.61mn dispensed in 2011 at a value of GBP66.49mn (US113.85mn). Data published by the Department of Health shows that between Q309 and Q214 the percentage of smokers trying to quit smoking using e-cigarettes increased from 0.6% to 31.4%. In contrast, the percentage of smokers trying to quit smoking using over-the-counter (OTC) nicotine replacement therapies declined from 30.3% to 24.9% and using prescription nicotine replacement therapies declined from 9.9% to 4.9%.

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