Good morning everyone,
Update #1, If you missed the original report we have included a copy and link below.
- 22nd Century's management and CEO has what it takes to take XXII to the next level and beyond.
- The market size and potential here.
- Recent $9/share 12 month price target and CFA report
(NYSE-MKT: XXII)
Henry Sicignano III, President & CEO
From February 1997 through July 2002, he served as Vice President and Marketing Director of Santa Fe Natural Tobacco Company (American Spirit Brand), a specialty tobacco company, prior to the sale of that company to R.J. Reynolds Tobacco Company for $356 million in 2002. Mr. Sicignano holds a Bachelors of Arts Degree in Government from Harvard College and a Master of Business Administration Degree from Harvard University. Note* that the American Spirit brand in September this year sold for $5 billion to Japan Tobacco company. (See article below) XXII management- http://www.xxiicentury.com/management/
Japan Tobacco Buys International Rights to Natural American Spirit
http://www.nytimes.com/2015/09/30/business/dealbook/reynolds-american-and-japan-tobacco-agree-to-rights-deal.html?_r=0
The Tobacco Market and the supplemental market to aid those trying to quit smoking
According to Euromonitor International, the retail value of all cigarettes sold in 2014 totaled $744 billion. The U.S. remains the third largest cigarette market by dollar volume, behind China and Russia. Roughly 18% of Americans smoke and approximately 265 billion cigarettes were sold in the U.S. in 2014, generating $75 billion in retail sales.
The global smoking cessation and nicotine de-addiction products market was estimated to be worth US $5.1 billion in 2012 and is further expected to rise at a CAGR of 8.7% during the forecast period 2013-2019. http://www.transparencymarketresearch.com/pressrelease/smoking-cessation-nicotine-de-addiction-products-market.htm
22nd Century Groups products cover both market's!
At a market capture rate of just 1% that's $7.4 billion.
A market capture rate of just 1/10 of 1% that's $774 million in annual sales.
Ask any smoker about the method of quitting by smoking cigarettes with less and less nicotine in them until the addiction is gone and I will guarantee you as a previous smoker this would be their first choice as a stop-smoking plan/aid. Just 10% of that market is over $500 million a year.
These are very realistic and very attainable numbers in my honest opinion. Not to mention there is much more in the works and happening now with XXII that I am saving for the next report.
Recent Price Target by a Chardan CFA
A recent price target of $9 and a "Buy" issued 11/11/15 by JAMES McILREE, CFA for Chardan Capital Markets LLC. Full report and disclaimer from
Chardan- http://www.xxiicentury.com/files/XXII_2015-11-11.pdf
More to come...
The Team
12/15/15 original report
Good morning everyone,
We hope you are all enjoying the Holiday season so far.
This new stock profile should turn a few heads.
Proprietary technolgy- XXII controls or owns more than 200 patents and has 50 more pending
Hot topic and sector worth billions
Chart showing positive long term indicators
22nd Century Group, Inc. (NYSE-MKT: XXII)
Why Should Get To Know 22nd Century Group?
Yes investors, there are still millions of people who smoke cigarettes! However, do not judge XXII yet they are creating healthier alternatives to traditional cigarettes and potential aids in quitting all together.
Bafflingly, despite all the science and meta-analyses, U.S. Surgeon General warnings and CDC case studies, the World Health Organization (WHO) estimates 5.6 trillion cigarettes were sold globally in 2014. Forty percent of these sales took place in Asia, where roughly two-thirds of the population smokes. Approximately one-third of all adult males around the globe smoke, and 10% of global mortality is directly attributable to smoking-relating diseases. According to Euromonitor International, the retail value of all cigarettes sold in 2014 totaled $744 billion. The U.S. remains the third largest cigarette market by dollar volume, behind China and Russia. Roughly 18% of Americans smoke and approximately 265 billion cigarettes were sold in the U.S. in 2014, generating $75 billion in retail sales. That is almost one-third the retail dollars spent on prescription drugs.
In light of this, the statement below by former U.S. Food and Drug Administration (FDA) commissioner, Dr. David Kessler, MD, JD, in June 2010, sums up the opportunity for 22nd Century Group. rather nicely:
“The FDA should quickly move to reduce nicotine levels in cigarettes to non-addictive levels. If we reduce the level of the stimulus, we reduce craving. It is the ultimate harm reduction strategy.”
Welcome to “The 22nd Century…”
22nd Century Group, Inc. (NYSE MKT: XXII) is a biopharmaceutical company founded in 1998 with proprietary technology in nicotine biosynthesis and tobacco plant-biotechnology. The company’s proprietary technology allows the company to increase or decrease levels of nicotine (and other nicotinic alkaloids) in the tobacco plant. More specifically, the company is engaged in the development of very low nicotine (VLN) tobacco, and produces a commercially-available cigarette called MAGIC® which yields approximately 95% less nicotine than other leading cigarettes previously marketed as “light” prior to The Family Smoking Prevention and Tobacco Control Act of 2009. The company also manufactures and commercializes an super-premium cigarette called Red Sun®, and provides contract manufacturing for other premium-brand cigarettes out of the company’s 61,000 square foot manufacturing facility in Mocksville, NC.
Beyond these commercially-available products, which I forecast to generate roughly $15 million in revenues in 2016, the company has publically announced that it will soon file an application with the U.S. FDA for a new VLN cigarette referred to as “Brand-A” that is expected to be the first U.S. FDA approved modified risk cigarette on the market. Recall, under the Tobacco Control Act of 2009, cigarettes are no longer allowed to be marketed as “light” or “ultra-light” or as having any reduced risk versus full flavor cigarettes without FDA approval. 22nd Century Group plans to file an application in December 2015 for Brand-A, which, if approved in 2016, will create a sizable competitive advantage for the company’s commercial marketing efforts. Another modified risk cigarette, “Brand-B”, is also under development. Unlike the VLN Brand-A cigarette designed to help people quit smoking, Brand-B is a low tar-to-nicotine ratio (TNR) cigarette designed to dramatically reduce the tar and smoke consumed by smokers, potentially reducing the risk of smoking-relating diseases, such as lung and esophageal cancers.
22nd Century Group is also working on a prescription-based cigarette, dubbed X-22, designed to help smokers quit smoking. The VLN tobacco cigarettes used in X-22 have shown efficacy helping smokers to quit smoking or to reduce the number of cigarettes smoked per day in numerous Phase 2 and Phase 3 independent clinical studies. The company is currently engaged in discussions with potential pharmaceutical partners to fund Phase 3 clinical trials using X-22. Once approved by the FDA, X-22 will compete against pharmaceutical products like Pfizer’s Chantix® (varenicline) or OTC nicotine replacement therapy (NRT) products (e.g. gums, patches, lozenges) in the $3 billion smoking-cessation market.
22nd Century Group already has an existing worldwide research and development licensing agreement in place with British American Tobacco, one of the four majors that dominate the global tobacco market, and a 5-year National Institute of Drug Abuse (NIDA) contract in place to provide its proprietary SPECTRUM® brand cigarettes for independent research of smoking cessation and behavioral studies. Management has also partnered with distributors to introduce its Red Sun® brand to retailers in the United States and its MAGIC® cigarettes into Europe, and is working to introduce its products in the Middle East, and China, the world’s largest cigarette market by far.
Proprietary Technology & Licensing
No biopharmaceutical company should be considered an attractive investment unless they have sound, proprietary technology that can not only be successfully defended, but monetized in the commercial market. At the center of the value-proposition for 22nd Century Group is an intellectual property portfolio consisting of more than 200 owned or controlled patents and more than 50 pending applications that relate to decreasing and increasing the expression of key genes and transcription factors responsible for the production of nicotine (and other alkaloids) in the tobacco plant and the tobacco and products produced therefrom.
See full article (It's must read)- http://smallcapstreet.com/xxii/
We will be covering 22nd Century Group (NYSE-MKT: XXII) all week. There is just too much good info for one email.
The Team |
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