November 25, 2014
Stanton A. Glantz, PhD
Morgan Stanley says Obama is not moving on menthol
The investment firm Morgan Stanley has looked at the White House Office of Management and Budget (OMB) plans and sees no action on menthol planned.
Here is what they say:
Menthol Risk Recedes; FTC Risk Accruing Largely to LO [Lorillard]
The release of OMB’s unified agenda (no menthol mentions) further reduces FDA-related transaction risk. However, LO shares still offer balanced riskreward & OMB yesterday published its unified fall agenda (the administration’s list of planned NTM regulation), which encouragingly includes no mention of menthol regulation. While L-T risk remains, this suggests an increasingly low probability of menthol “news” prior to the expected 1H15 transaction closure. Note that that spring agenda has in recent years been issued during late May or early June.
The full Morgan Stanley report is available here.
Add new comment