On the Call: Altria Group CEO Michael E. Szymanczyk

Source from:  Associated Press 01/29/2010

The U.S. Food and Drug Administration, which gained the authority to regulate tobacco in June, could limit nicotine in tobacco products, ban candy flavorings and block labels such "low tar" and "light." It can't ban nicotine or tobacco outright, just control what goes into the products, publicize those ingredients and regulate marketing campaigns. Philip Morris USA is expected to suffer least among tobacco companies from regulation because tighter rules could cement its position as market leader. Altria Group Inc., Philip Morris USA's owner, supported the legislation, while its chief rivals - No. 2 Reynolds American Inc. and No. 3 Lorillard Inc., both based in North Carolina - opposed it. With many moving parts and deadlines for regulation, the FDA must communicate with the industry to seek input and issue directives. Some in the industry have said that communication has been inconsistent. In a conference call with analysts regarding Altria's fourth-quarter and full-year earnings, CEO Michael E. Szymanczyk talked about the company's interaction with the FDA thus far: "I understand that the FDA is building their enterprise, if you will. They started from scratch. … They have set up an electronic docket where they raise the subjects that they want to have input and then you communicate to that electronic docket. … We communicate to them via that, and that's the process so far. I think as they get their enterprise put together there will become more interaction that is direct communication … but that hasn't begun yet." Enditem