22nd Century Group Inc (NYSEMKT:XXII) is off to an incredibly strong start to the day today in the pre-market, and for good reason. The company announced that it has received authorization from the United States FDA to conduct a key clinical trial. This caused excitement among investors and sent the stock screaming upward. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (8:59), XXII is trading at $1.46 per share after a gain of $0.06 per share or 4.29% thus far today.
XXII Announces Authorization To Conduct Clinical Trial
As mentioned above, 22nd Century Group is having a strong time in the pre-market hours today after announcing that the United States Food and Drug Administration has granted the company authorization to conduct a clinical trial. The trial is centered around low tar-to-nicotine ratio cigarettes. The idea of the trial is to prove that when smokers make a move to higher nicotine cigarettes, they take in less smoke because the nicotine within the cigarette is more readily available. In a statement, Dr. Michael Moynihan, Vice President of Research & Development at XXII had the following to offer…
“Our initial clinical trial investigating the effects of BRAND B’s design-objective – the reduced delivery of smoke components, other than nicotine – is a measurable step forward in the development of our Company’s mission…”
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on XXII. In particular, we’re interested in following the clinical trial to see if the company may be able to prove that there is a cigarette that is healthier than others. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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