Jump to full article: Winston-Salem (NC) Journal, 2009-11-12
Author: Richard Craver * Journal Reporter
Intro: Trying to buy a company that specializes in products that help people quit smoking may seem like a radical change for Reynolds American Inc.
But analysts said yesterday that it all depends on how Reynolds would potentially use and market cigarette-replacement products in gum, pouch and spray form made by that company, Niconovum AB.
Media reports have said that Reynolds is close to buying Niconovum, of Helsingborg, Sweden, for $44.5 million. The reports are based on comments by David Sweanor, a law professor at the University of Ottawa and a tobacco analyst. Sweanor could not be reached for comment.
Reynolds said it is against its policy to comment on speculation. Niconovum officials could not be reached for comment. . . .
Niconovum was formed in 2000 by Karl Olov Fagerström, who is considered a leading expert on smoking cessation and nicotine dependence. It is managed by many of the individuals who were pivotal in the development of Nicorette, a nicotine-replacement gum.
Although some analysts view Niconovum's products as primarily smoking cessation, the company says on its Web site that it "believes that there is a market for a range of nicotine-replacement therapy products that will deliver nicotine more quickly and effectively than those currently available, thereby giving the consumer a perceived better control of cravings."
The evolution of some health-advocacy groups from anti-smoking to anti-tobacco is ratcheting up the moralistic aspect of buying and consuming a legal product.
Bill Godshall, the executive director of SmokeFree Pennsylvania, said he believes that smokers and public health could benefit if Reynolds buys Niconovum or its patents.
"Its smoke-free nicotine products are 99.9 percent less hazardous alternatives to cigarettes, pose no risks to nonusers, and appear to be more smoker friendly than similar products marketed as smoking cessation aids,'' Godshall said.
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