22nd Century Group Inc (NYSEAMERICAN: XXII) has been an incredibly interesting stock to watch over the past year. In fact, over the past year, the stock has nearly tripled in value, making it one of the best performing on the market in this period. However, is the growth going to fizzle or is XXII a great stock pick? Today, we’ll talk about:
- what XXII does;
- why the company could get a boost from regulatory agencies;
- the risks associated with the stock;
- and whether or not now is the time to start looking into this as an investment option.
What Does XXII Do?
22nd Century Group is a biotechnology company that focuses on tobacco and marijuana. Ultimately, the company works to alter the strains of these plants in order to yield safer alternatives to the conventional tobacco and cannabis that we see on the market today, and they’ve done a great job of doing so thus far. Here’s a list of their products:
X-22 Smoking Cessation Kit
One product that XXII is currently working on is known as the X-22 smoking cessation kit. This kit is actually comprised of cigarettes made with the company’s ultra-low nicotine level cigarettes. Using the company’s VLN, or Very Low Nicotine, cigarettes, the idea is to allow the user to continue to smoke while reducing his or her dependence on nicotine.
In studies, the product has shown some pretty promising results. In fact, on the company’s investor relations website, XXII outlines data showing that their VLN smoking cessation kit worked better in clinical studies than nicotine lozenges or reduced nicotine cigarettes. As a result, the company is currently in the process of working with the United States Food and Drug Administration to bring this product to the market as a smoking cessation aid.
Modified Risk Cigarettes
22nd Century Group is also working on two different types of modified risk cigarettes. The first, listed on their investor relations website as “Brand A”, is a very low nicotine cigarette. In fact, the cigarette has 95% less nicotine than seen in conventional cigarette options. The idea behind this is the same idea behind the company’s smoking cessation aid kit. By smoking cigarettes with lower volumes of nicotine, users are less likely to become addicted.
The second type of modified risk cigarette that the company is working on is listed on the XXII investor relations website as “Brand B”. Brand B modified risk cigarettes are on the other side of the spectrum with very high nicotine levels. The intention here is for the cigarettes to meet the needs of smokers with a craving with far less smoke. As a result, these users will be less exposed to tar and other harmful chemicals included in cigarette smoke.
SPECTRUM® Research Cigarettes
At the moment, XXII is even working with government entities in an attempt to help users quit smoking cigarettes or smoke them in a more safe way. In fact, the company was chosen by the National Institute on Drug Abuse (NIDA) to supply its proprietary cigarettes as a subcontractor under a federal contract.
This particular line of cigarettes was designed with a fixed tar yield and varying nicotine levels. There are currently 24 different styles of SPECTRUM cigarettes being manufactured by 22nd Century Group. These styles include 11 regular flavored cigarette types and 13 with menthol flavors. These cigarettes also come in 8 different levels of nicotine content.
Currently, SPECTRUM branded cigarettes are being used only for research. So, they are not available to be sold to the general public. Nonetheless, the company has delivered more than 22 million SPECTRUM research cigarettes to the National Institute on Drug Abuse. i
Magic 0 And Magic 2
Magic 0 and Magic 2 are cigarettes that are made using the company’s proprietary very low nicotine tobacco. In fact, these brands of cigarettes contain approximately 95% less nicotine than traditional cigarettes that are referred to in the light category. Ultimately, these cigarettes help to satisfy cravings. At the same time, due to the very low nicotine levels, they are far less addictive, reducing dependency on nicotine among smokers.
Moonlight is a brand of cigarette that XXII developed for smokers outside of the United States. The brand was designed to give users the bold, full flavor cigarette effect while generating substantially less tar than leading cigarette brands.
Red sun is another brand of premium cigarettes that the XXII is working on. The company designed these cigarettes to have a rich tobacco taste and relatively high levels of nicotine. At the moment, these cigarettes are not available in the United States, but are being sold around the world.
Zero THC Hemp
Finally, the company is currently working on a zero-THC hemp. The hemp is being grown for industrial purposes, and with zero THC, there is no chance of abuse of this plant.