$KAVL Kaival Brands: Positioning for the Future
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Posted On: 08/23/2023 12:08:29 PM
$KAVL Kaival Brands: Positioning for the Future
https://www.globenewswire.com/news-release/20...uture.html
GRANT-VALKARIA, Fla., Aug. 23, 2023 (GLOBE NEWSWIRE) -- Kaival Brands Innovations Group, Inc. (NASDAQ: KAVL) ("Kaival Brands," the "Company" or "we,” “our” or similar terms), today announced a general business outlook update. The Company has been actively maintaining an outlook of positive change as it seeks to grow in a diversified way.
UNPRECEDENTED EARLY GROWTH
In less than 12 months of initial operations, Kaival Brands achieved over $100 million in gross revenues through distribution of the BIDI® Stick. Since then, the Company has continued to navigate significant regulatory turbulence within the domestic United States ENDS market. To augment our core offering, the Company has continued to pursue pathways for diversification.
Regulatory Hurdles:1
Bidi Vapor submitted PMTAs for all 11 flavor varieties (9 flavored ENDS plus Menthol and Tobacco) of its BIDI® Stick prior to the court-ordered September 9, 2020, PMTA deadline, despite considerable business and logistical challenges due to the COVID-19 pandemic. The detailed applications ran over 285,000 pages and contained significant information supporting the products as appropriate for the protection of the public health – including robust and reliable scientific data supporting that its flavored BIDI® Sticks provide an added benefit to adult smokers over tobacco-flavored ENDS.
Despite submitting scientifically rigorous PMTAs and keeping the FDA informed about its ongoing clinical and behavioral studies, among other things, Bidi Vapor received a marketing denial order ("MDO”) for its flavored BIDI® Sticks, along with nearly all other manufacturers of flavored ENDS, in early September 2021. On September 29, 2021, Bidi Vapor subsequently filed a Petition for Review with the U.S. Court of Appeals for the Eleventh Circuit, seeking judicial review of the MDO under the Tobacco Control Act ("TCA"
, the Administrative Procedure Act ("APA" , as well as the U.S. Constitution.
On February 1, 2022, U.S. Court of Appeals for the Eleventh Circuit granted a judicial stay of the marketing denial order ("MDO" previously issued by the U.S. Food and Drug Administration ("FDA" to Bidi Vapor in September 2021.
The stay ruling allowed Bidi Vapor and Kaival Brands to continue to market and sell all of its BIDI® Stick ENDS, including its tobacco, menthol and flavored products, while the case on the merits continued.
Following the judicial stay of the MDO issued in February 2022, on August 23, 2022, the 11th Circuit granted Bidi Vapor’s petition for review and set aside and remanded the MDO, which the Court held was arbitrary and capricious because FDA failed to consider relevant evidence before it, specifically Bidi Vapor’s aggressive and comprehensive marketing and sales-access-restrictions plans.
Despite the issuance of MDOs covering over 1.2 million flavored ENDS products, the FDA failed to adequately enforce the denials at the ground level. This lack of enforcement allowed the sale of illegal products to continue, accelerating the tailwinds created during the pandemic, where e-cigarette sales surged2, with the spike concentrated in disposable vapes after they took a back seat in federal enforcement actions.
https://www.globenewswire.com/news-release/20...uture.html
GRANT-VALKARIA, Fla., Aug. 23, 2023 (GLOBE NEWSWIRE) -- Kaival Brands Innovations Group, Inc. (NASDAQ: KAVL) ("Kaival Brands," the "Company" or "we,” “our” or similar terms), today announced a general business outlook update. The Company has been actively maintaining an outlook of positive change as it seeks to grow in a diversified way.
UNPRECEDENTED EARLY GROWTH
In less than 12 months of initial operations, Kaival Brands achieved over $100 million in gross revenues through distribution of the BIDI® Stick. Since then, the Company has continued to navigate significant regulatory turbulence within the domestic United States ENDS market. To augment our core offering, the Company has continued to pursue pathways for diversification.
Regulatory Hurdles:1
Bidi Vapor submitted PMTAs for all 11 flavor varieties (9 flavored ENDS plus Menthol and Tobacco) of its BIDI® Stick prior to the court-ordered September 9, 2020, PMTA deadline, despite considerable business and logistical challenges due to the COVID-19 pandemic. The detailed applications ran over 285,000 pages and contained significant information supporting the products as appropriate for the protection of the public health – including robust and reliable scientific data supporting that its flavored BIDI® Sticks provide an added benefit to adult smokers over tobacco-flavored ENDS.
Despite submitting scientifically rigorous PMTAs and keeping the FDA informed about its ongoing clinical and behavioral studies, among other things, Bidi Vapor received a marketing denial order ("MDO”) for its flavored BIDI® Sticks, along with nearly all other manufacturers of flavored ENDS, in early September 2021. On September 29, 2021, Bidi Vapor subsequently filed a Petition for Review with the U.S. Court of Appeals for the Eleventh Circuit, seeking judicial review of the MDO under the Tobacco Control Act ("TCA"
, the Administrative Procedure Act ("APA" , as well as the U.S. Constitution. On February 1, 2022, U.S. Court of Appeals for the Eleventh Circuit granted a judicial stay of the marketing denial order ("MDO"
previously issued by the U.S. Food and Drug Administration ("FDA" to Bidi Vapor in September 2021. The stay ruling allowed Bidi Vapor and Kaival Brands to continue to market and sell all of its BIDI® Stick ENDS, including its tobacco, menthol and flavored products, while the case on the merits continued.
Following the judicial stay of the MDO issued in February 2022, on August 23, 2022, the 11th Circuit granted Bidi Vapor’s petition for review and set aside and remanded the MDO, which the Court held was arbitrary and capricious because FDA failed to consider relevant evidence before it, specifically Bidi Vapor’s aggressive and comprehensive marketing and sales-access-restrictions plans.
Despite the issuance of MDOs covering over 1.2 million flavored ENDS products, the FDA failed to adequately enforce the denials at the ground level. This lack of enforcement allowed the sale of illegal products to continue, accelerating the tailwinds created during the pandemic, where e-cigarette sales surged2, with the spike concentrated in disposable vapes after they took a back seat in federal enforcement actions.
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