to market its IQOS tobacco heating system (THS) as a “modified risk” product. This designation allows the company to promote these items “as containing a reduced level or exhibiting reduced exposure to a substance or as being substance-free when the issuance of the prescription should benefit the health of the population”, according to the FDA statement. Philip Morris describes these products as heating rather than burning tobacco, like a cigarette. Burning tobacco, which reaches 600 degrees Celsius, “contains high levels of harmful chemicals,” according to the company’s website. The THS product heats tobacco to 350 degrees Celsius. “However, HRT is not without risk and provides addictive nicotine,” says the site. Philip Morris focused on the IQOS product, Philip Morris chief operating officer Jacek Olczak, who told Deutsche Bank dbAccess Global Consumer Conference last month that the company was committed to “working towards achieving [the] potential of this opportunity, “according to a transcript from FactSet. Philip Morris shares are down 14.4% for the year to date while the S&P 500 SPX,
decreased 2.1% over the period.