Altria extends losses as Biden administration considers forcing cigarette makers to slash nicotine levels

• Shares of Altria fell Tuesday following a report that the Biden administration wants cigarette makers to reduce nicotine levels.
• The administration is also considering a ban on menthol cigarettes to curb smoking among young people, The Wall Street Journal reported.
• Shares of British American Tobacco and Imperial Brands also lost ground.

Shares of Altria shares stretched losses early Tuesday following a report that the Biden administration may require cigarette and tobacco companies to cut down the amount of nicotine in cigarettes sold in the US.

The administration wants lower nicotine levels to make cigarettes less addictive and it is also considering a ban on menthol cigarettes, according to a Wall Street Journal report Monday, citing unnamed sources familiar with the matter. The ban on menthol cigarettes would be aimed at curbing smoking among young people, the Journal reported.

Altria stock fell 3.3% in premarket trading Tuesday after sliding by 6.2% Monday afternoon following the story's publication. Altria makes Marlboro and Parliament cigarettes and has an investment in vape brand Juul.

US-listed shares of British American Tobacco fell 3.2% premarket after Monday's 2.2% decline. Its Reynolds American subsidiary makes Newport and Camel cigarettes. In London, Winston and Kool cigarettes maker Imperial Brands fell 6%.

But shares of 22nd Century Group, which makes tobacco products with low nicotine content, jumped about 10% early Tuesday after climbing 10.6% before Monday's regular session closed.

The Food and Drug Administration has an April 29 deadline to respond in court to a citizens' petition to ban menthols by disclosing whether the agency intends to pursue such a policy, the report said.

"Any action that the FDA takes must be based on science and evidence and must consider the real-world consequences of such actions, including the growth of an illicit market and the impact on hundreds of thousands of jobs from the farm to local stores across the country," an Altria spokesman told the Journal.