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For smokers who want to quit, there are pills, patches, and gum. But how about an
electronic nicotine delivery device that looks and feels like smoking -- without the smell
or the carcinogens?
That's what Hong Kong-based Golden Dragon Group is selling. Known as Ruyan (meaning "like
smoking"), the electronic cigarette is a $208 battery-powered atomizer.
Cartridges containing pure nicotine, available in three strengths and good for some 350
puffs each, cost about $4.
Inhale, and the Ruyan -- powered by a Motorola (Charts, Fortune 500) chip -- turns the
nicotine into smokelike vapor. "We don't claim smoking cessation, just smoking
substitution," says Scott Fraser, vice president of Golden Dragon subsidiary SBT, which
came up with the Ruyan.
But "it could be used to ratchet down nicotine consumption." . . .
Working with an unnamed U.S. partner to get FDA approval, Golden Dragon expects to double
current sales by the end of the year. Morgan Stanley analyst David Adelman says the
e-cigarette would be lucky to snare even 1 percent of the U.S. cigarette market.
Still, that would add up to a healthy (cough) $750 million.
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