E-cigarette company Juul’s valuation cut to $ 19 billion under regulatory pressure

 Tiger Global Management has cut its valuation of e-cigarette maker Juul Labs Inc in half to $ 19 billion in September this year.

Altria Group, the world’s largest tobacco company, holds a 35% stake in Juul. Altria’s write-down of $ 4.5 billion in Juul’s investment in October shrank its valuation by more than a third to about $ 24 billion.

Juul was born from Pax Labs and is a company specializing in the production of e-cigarettes. Juul became an independent company in July 2017. Its products of the same name also became popular among young Americans at the end of 2017. Under the US e-cigarette market share of 72%. Before the e-cigarette public health crisis broke out, the company’s annual revenue this year was expected to reach 2 billion US dollars.

Juul, which has been growing rapidly, has encountered Waterloo this year because of the large-scale health problems caused by its products.

At present, at least seven consumers have been killed by smoking Juul e-cigarettes, and in recent months have encountered intense regulatory pressure from the US federal and state governments. In late September, Juul announced that it would suspend all radio, print and digital advertising in the United States. Due to regulatory and public pressure, major US media companies have previously removed e-cigarette ads from their respective media platforms.

Juul’s expansion outside the United States is equally fatal. On September 16, Juul, which was launched in China for less than a week, was completely removed from retail platforms such as JD.com and Tmall. As of now, Juul has not been re-sold on the aforementioned platforms. The Indian government announced on September 18 that it will ban the production, manufacturing, sales and advertising of electronic cigarettes in India.

Juul was born out of Pax Labs and is a company specializing in the production of e-cigarettes. Juul became an independent company in July 2017. Its products of the same name also became popular among young Americans at the end of 2017. By September 2018, Win 72% of the US e-cigarette market. Before the e-cigarette public health crisis broke out, the company’s annual revenue this year was expected to reach 2 billion US dollars.

Juul’s rapid growth prompted Marlboro manufacturer Altria to acquire a 35% stake for $ 12.8 billion last year, when Juul was valued at $ 38 billion.

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