CHICAGO - If legislation passes to give the Food and Drug Administration the authority to regulate the tobacco industry, it could reshape the industry’s competitive landscape, Fitch Ratings said in a new report yesterday.
The U.S. House passed the legislation in July, but it requires approval by the Senate and President Bush. Bush’s administration has said he will veto the bill.
Fitch said it does not expect the law to be passed this year, but added that if a Democrat is elected president, the eventual passage of the bill is “highly probable.”
Analysts say that Philip Morris USA stands to benefit if the FDA receives power to regulate the tobacco industry because greater restrictions could solidify its position as the market leader with its Marlboro brand. R.J. Reynolds Tobacco Co. has said it opposes the bill.