Top Takeaways:
- R.J. Reynolds recently added three PACHA synthetic nicotine products to its portfolio, bringing its total acquisitions from Charlie’s Holdings to 15 PMTA-submitted products.
- The most recent $1.5 million deal follows a $9.2 million purchase in March, in which R.J. Reynolds acquired 13 PACHA products and related regulatory assets.
- The acquisitions reflect a strategic focus on premarket-authorized products, as Reynolds strengthens its position in the U.S. market amid tighter FDA enforcement.
R.J. Reynolds Vapor Company has expanded its portfolio of synthetic nicotine products, acquiring three additional PACHA-branded products from Charlie’s Holdings, Inc. The purchase brings the total number of products purchased to 15. The latest transaction, completed on May 29, 2025, was valued at $1.5 million and includes products that are covered by premarket tobacco product applications (PMTAs) originally submitted in 2022.
The move follows a more substantial agreement earlier in the year, when Reynolds purchased 12 PACHA synthetic nicotine products for $9.2 million. Both transactions include associated regulatory assets, and all 15 products are part of Charlie’s previously filed PMTAs with the U.S. Food and Drug Administration.
“These assets were developed and submitted under FDA’s stringent premarket review pathway,” the companies said in separate statements. The deals reflect growing industry demand for products with active PMTA status as the agency steps up enforcement against unauthorized vapor products.
Background on the PACHA Portfolio
Charlie’s Holdings, known for its PACHA brand of synthetic nicotine disposables, originally filed PMTAs for 15 products in 2022. Those filings were part of a broader push by small and mid-sized firms to remain on the market after the FDA extended its tobacco regulatory authority to include synthetic nicotine.
In March 2025, Charlie’s announced the $9.2 million sale of 12 PACHA products to R.J. Reynolds, a subsidiary of British American Tobacco. At the time, the company said it would retain ownership of the PACHA brand name and trademarks, while divesting only the regulatory assets and PMTA submissions tied to specific products.
The recent $1.5 million amendment to that purchase agreement adds the final three PACHA products under PMTA review, rounding out Reynolds’ acquisition of the entire 15-product suite.
Strategic Focus on Compliance and Market Positioning
The move gives Reynolds a broader portfolio of synthetic nicotine products that are at least pending FDA authorization—a major advantage in a market where enforcement actions are accelerating. The FDA has stepped up its focus on unauthorized flavored disposable products, particularly those that are imported or contain synthetic nicotine.
For Charlie’s Holdings, the divestiture allows the company to redirect its focus toward nicotine-free alternatives, including its SBX brand, which uses a proprietary non-nicotine alkaloid known as Metatine. These products are not classified as tobacco products under the Tobacco Control Act and therefore fall outside FDA’s tobacco regulatory scope.
“SBX positions us in a space with much greater regulatory flexibility,” Charlie’s management wrote in a May 29 shareholder letter. The company is marketing SBX in 10 flavors and claims favorable early feedback from consumers, especially regarding taste and satisfaction.
The acquisition signals that large players like Reynolds are investing in regulatory certainty by acquiring PMTA-covered products rather than relying on new submissions. For smaller firms, the sale of regulatory assets may become an increasingly common exit or partnership strategy in the high-stakes U.S. vaping market.
