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`Exhibit 19
`Public Redacted Version
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`UNITED STATES INTERNATIONAL TRADE COMMISSION
`WASHINGTON, D.C.
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`
`
`
`
`In the Matter of
`
`
`CERTAIN TOBACCO HEATING
`ARTICLES AND COMPONENTS
`THEREOF
`
`
`
`
`
`
`
`
`
`Inv. No. 337-TA-1199
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`
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`EXPERT REPORT OF JONATHAN ARNOLD, PH.D.
`
`CONFIDENTIAL
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`
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`III.
`
`SUMMARY OF OPINIONS
`
`12.
`
`Based on my analysis to date, as well as my skill, knowledge, education,
`
`experience, and training, I have formed the following opinions:
`
` Domestic Industry. Dr. Mody’s assessment of Complainants’
`
`(i) investment in plant and equipment, (ii) investment in
`
`labor or capital, and (iii) exploitation of the patents for VUSE
`
`Solo (Generation 1 and 2) and VUSE Vibe is fundamentally
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`flawed for at least two reasons: her analysis (1) disregards
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`the factual record in this matter and (2) depends on
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`unsupported assumptions that have a material effect on her
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`opinions.
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` Public Interest. Dr. Mody is incorrect that the public’s
`
`interest would be unharmed by an exclusion order. Her
`
`opinion hinges on her assertation that e-cigarettes, IQOS®
`
`and other PRRPs are substitutes; however, the analysis Dr.
`
`Mody undertakes is flawed and unreliable. To the contrary,
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`substantial evidence suggests that IQOS® is a differentiated
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`product from other PRRPs and provides features to
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`consumers that other PRRPs do not. As such, an exclusion
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`order for IQOS® would adversely affect the public interest
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`by depriving consumers of a differentiated product.
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` Public Health and Welfare. Dr. Mody claims that the
`
`granting of an exclusion order would not have a negative
`
`impact on public health and welfare. To the contrary, if no
`
`exclusion were to issue, then a percentage of combustible
`
`cigarette smokers would likely transition to IQOS® use,
`
`thereby avoiding the harmful effects of combustible cigarette
`
`smoke. Even if only a relatively small percentage of
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`direct comparison of product pricing when she asserts that IQOS® has been “launched
`
`domestically with a pricing strategy intended to compete with other non-combustible
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`products.”130 In other words, in attempting to define the market, Dr. Mody implies that
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`IQOS® is priced similarly to the VUSE products and are therefore in the same market
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`and should be considered substitutes.
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`99. On the other hand, in her bond analysis she argues that “a direct
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`comparison of product pricing in this case is not meaningful.”131 Then based on a per-
`
`puff analysis (a cost measure Dr. Mody establishes without basis) of VUSE Solo and
`
`IQOS® she concludes that the cost of IQOS® is approximately
`
` than the
`
`cost of the VUSE products.132 (Based on this she concludes that a bond should be set at
`
`100 percent—an opinion with which I disagree and which I address in Section IX.)
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`100. Dr. Mody cannot have it both ways. If IQOS® and the VUSE products are
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`similarly priced, then her bond analysis must be wrong. If one accepts her bond
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`analysis then her assertions regarding the market definition must be wrong.133
`
`C.
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`Dr. Mody’s Own Evidence Shows that IQOS® and other PRRPs are
`Differentiated
`
`101. Dr. Mody selects quotes out of a variety of documents to attempt to
`
`establish that IQOS® and e-cigarettes are substitute products within the PRRP market.
`
`However, if one reviews Dr. Mody’s cherry-picked quotes in their context, these
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`documents reveal that multiple consumer groups in the U.S. markets consider IQOS®
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`to be differentiated from other non-combustible products.
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`
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`130 Mody Report, p. 50.
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`131 Mody Report, p. 102.
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`132 Mody Report, p. 104.
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`133 I make this point to show that, using the internal logic of Dr. Mody’s report, both opinions cannot
`coexist. As it turns out, neither opinion is correct – for a variety of other reasons that I address
`throughout this report.
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`i.
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`Market Participants View IQOS® and E-Cigarettes as Differentiated
`Products
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`102. Dr. Mody cites to certain quotes from industry analysts and experts that
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`“[define] the relevant market as larger than HNB products.”134 However, Dr. Mody fails
`
`to acknowledge that the documents she cites also discuss the ways in which IQOS® is
`
`differentiated from other PRRPs. As I explain above, if IQOS® and other PRRPs are
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`close substitutes, IQOS® could build market share only (or predominantly) by
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`competing on price. If, however, IQOS® and other PRRPs are differentiated (i.e.,
`
`imperfect substitutes), IQOS® may also build market share by attracting combustible
`
`cigarette consumers who prefer certain features of the IQOS® over other PRRPs. Exhibit
`
`10 below details some examples of market reaction to the launch of IQOS® in the U.S.
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`
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`134 Mody Report, p. 43.
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`Exhibit 10
`Market Participants View IQOS® as a Distinct Offering
`
`#
`
`Date
`
`IQOS® Discussion
`
`Statement
`Speaking on the PRRP market, one analyst stated:
`
`1.
`
`12/15/2014
`
`Yes
`
`2.
`
`07/26/2018
`
`Yes
`
`3.
`
`08/09/2019
`
`Yes
`
`4.
`
`10/15/2019
`
`Yes
`
`5.
`
`08/17/2020
`
`Yes
`
`6.
`
`03/12/2020
`
`No
`
`Sources:
`[1]
`[2]
`[3]
`[4]
`[5]
`[6]
`
`
`Looking ahead to future results, another analyst noted,
`
`Other analysts noted that IQOS® was
`
`When estimating retail sales for the remainder of 2019, Wells Fargo analysts noted,
`
`Analysts at Jefferies discussed
`
`.
`In an analysis of market competition, another analyst noted that IQOS®
`
`.
`
`.
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`103. Exhibit 10 shows that market participants expected
`
`
`
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`
`
`
`
`ii.
`
`Commercialization Efforts have Emphasized the Difference between
`IQOS® and E-Cigarettes
`
`104. Dr. Mody refers to certain commercialization and marketing efforts of
`
`IQOS®, including FDA applications, in an attempt to establish the substitutability of
`
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`IQOS® and other PRRPs.135 Specifically, she claims that because IQOS® and other non-
`
`combustible products have framed themselves as alternatives to combustible cigarettes,
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`IQOS® and other PRRPs are substitutable. However, Dr. Mody fails to recognize that
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`IQOS® commercialization efforts have also framed IQOS® as an alternative to other
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`PRRPs. Exhibit 11 below provides some examples of the differentiation between IQOS®
`
`and other PRRPs in commercial materials.
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`135 Mody Report, p. 49.
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`Exhibit 11
`Commercialization Efforts Reveal Differences between IQOS® and E-Cigarettes
`
`#
`
`Date
`
`IQOS® Discussion
`
`1.
`
`09/04/2019
`
`Yes
`
`2.
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`07/07/2020
`
`Yes
`
`3.
`
`07/07/2020
`
`Yes
`
`4.
`
`Q3 2020
`
`Yes
`
`5.
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`09/04/2019
`
`No
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`6.
`
`07/17/2020
`
`No
`
`Statement
`In a study on the Juul Labs deal, a research team from Georgetown noted; “with all of these products
`and [IQOS®] and Juul, Altria is able to provide a variety of nicotine products to different consumer
`tastes, thereby refining marketing efforts to expand sales with stronger market segmentation. As one
`financial analyst has stated, ‘Juul appeals to millennials/hipsters and [IQOS®] appeals to slightly older
`& more affluent smokers,’ suggesting that Altria is looking at greater market segmentation as the
`nicotine market is further disrupted.” As such, this study described Altria's offerings as distinct, and
`appealing to different types of consumer tastes.
`In an announcement authorizing IQOS® marketing efforts, the F.D.A. stated: “[t]oday, the U.S. Food
`and Drug Administration authorized the marketing of Philip Morris Products S.A.’s ‘[IQOS®] Tobacco
`Heating System’ as modified risk tobacco products (MRTPs). This marks the second set of products ever
`to be authorized as MRTPs and the first tobacco products to receive ‘exposure modification’ orders,
`which permits the marketing of a product as containing a reduced level of or presenting a reduced
`exposure to a substance or as being free of a substance when the issuance of the order is expected to
`benefit the health of the population.” Here, the FDA expressed the view that IQOS® was a unique
`offering due to its heating system.
`The FDA also stated that, “[t]oday’s action pertains to the separate MRTP applications for these
`products and further authorizes the manufacturer to market these specific products with the following
`information: AVAILABLE EVIDENCE TO DATE: -The [IQOS®] system heats tobacco but does not burn
`it. -This significantly reduces the production of harmful and potentially harmful chemicals. -Scientific
`studies have shown that switching completely from conventional cigarettes to the [IQOS®] system
`significantly reduces your body’s exposure to harmful or potentially harmful chemicals.” The
`authorization and language around IQOS® indicates the view that IQOS® represented a new and
`distinct offering.
`In an internal Reynolds spreadsheet, Reynolds compares the “Share of HNB” market, which it lists as
`split only between “Eclipse” and “Marlboro Heatsticks (HNB).” From the spreadsheet date range of Q4
`2019 to Q2 2020, Eclipse steadily loses market share to Marlboro Heatsticks. The structure and
`production of this document demonstrates that, internally, Reynolds determined HNB products as the
`most direct competition to Eclipse.
`The Georgetown research team further noted: “[w]ith tobacco companies having a relative advantage
`with heated tobacco products (HTPs), it may be in their interests to equate the rules for HTPs and
`vaping products, thereby making both nonviable as competitors to cigarettes, or to favour HTPs over
`vaping.” This study refers to distinct types of alternatives, of which one is HTP.
`The CDC produced guidance on heated tobacco products, stating: “[a]re Heated Tobacco Products the
`Same as Electronic Cigarettes? No. Heated tobacco products heat actual tobacco leaf. By contrast, e-
`cigarettes heat liquids that typically contain nicotine derived from tobacco, as well as flavorings and
`other ingredients.” As such, this guidance indicates that the CDC considers the two categories (heated
`tobacco products and e-cigarettes) to be distinct offerings.
`
`Sources:
`[1] Levy DT, Sweanor D, Sanchez-Romero LM, et al., “Altria-Juul Labs deal: why did it occur and what does it mean for the US nicotine delivery
`product market,” Tobacco Control , Published online first: 9/4/2019.
`[2] FDA, “Press Release - FDA Authorizes Marketing of IQOS Tobacco Heating System with ‘Reduced Exposure’ Information FDA,” 7/7/2020.
`[3] FDA, “Press Release - FDA Authorizes Marketing of IQOS Tobacco Heating System with ‘Reduced Exposure’ Information FDA,” 7/7/2020.
`[4] RJR, RJRITC_0012460.xlsx
`[5] Levy DT, Sweanor D, Sanchez-Romero LM, et al., “Altria-Juul Labs deal: why did it occur and what does it mean for the US nicotine delivery
`product market,” Tobacco Control , Published online first: 9/4/2019.
`[6] CDC, “Heated Tobacco Products,” 7/7/2020.
`
`
`
`
`105. As Exhibit 11 clearly shows, commercialization efforts have differentiated
`
`IQOS® not only from combustible cigarettes, as Dr. Mody points out, but also from
`
`other PRRPs.
`
`106.
`
`In fact, at least one of Complainants’ internal documents related to the
`
`commercialization of IQOS® demonstrates that they themselves do not view e-
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`cigarettes as substitutes for HNBs. For example, in a January 2018 document titled
`
`“THP-iQOS Readiness Integrated Demand Review,” Complainants state that “Eclipse
`
`[Complainants’ HNB product] is the only immediately available direct iQOS®
`
`response.”136 As such, Complainants recognize, according to their own internal
`
`documentation, that e-cigarettes are not good substitutes for IQOS®.
`
`iii.
`
`Contrary to Dr. Mody’s Assertions Consumers View IQOS® and E-
`Cigarettes as Differentiated Products
`
`107. Dr. Mody suggests repeatedly that consumers view IQOS® and other
`
`PRRPs as substitutes without offering evidence to support that suggestion. However,
`
`the documents Dr. Mody has relied upon suggest that consumers believe IQOS® offers
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`certain features that other PRRPs do not offer; that is, that IQOS® is differentiated from
`
`other PRRPs. Exhibit 12 provides some examples of consumer preference studies
`
`relating to IQOS®.
`
`
`
`
`136 RJRITC_000930584_RJRITC_008
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`Exhibit 12
`Consumers View IQOS® and E-Cigarettes as Differentiated Products
`
`#
`
`Date
`
`IQOS® Discussion
`
`Statement
`Analysts from BNP Paribas examined options available for consumers, and stated:
`
`1.
`
`12/15/2014
`
`Yes
`
`2.
`
`06/08/2018
`
`Yes
`
`3.
`
`07/17/2019
`
`Yes
`
`4.
`
`01/15/2020
`
`Yes
`
`5.
`
`09/27/2019
`
`6.
`
`09/27/2019
`
`7.
`
`09/20/2018
`
`Yes
`
`Yes
`
`No
`
`8.
`
`11/20/2018
`
`No
`
`9.
`
`11/20/2018
`
`No
`
`10. 11/20/2018
`
`11. 02/19/2020
`
`12. 04/29/2019
`
`No
`
`No
`
`No
`
`.
`A Georgetown research team analyzed the Juul Labs deal and noted: “[w]ith all of these products and
`[IQOS®] and Juul, Altria is able to provide a variety of nicotine products to different consumer tastes,
`thereby refining marketing efforts to expand sales with stronger market segmentation. As one financial
`analyst has stated,
`
`These findings indicate that Altria offers a variety of products to a variety
`
`of consumers.
`In a study of IQOS® users in the UK, "participants described the reason that they used [IQOS®] by
`comparing the benefits of [IQOS®] with the perceived drawbacks of e-cigarettes. Compared with e-
`cigarettes, [IQOS®] smelt better, was less bulky, felt more like combustible cigarettes in the hands and
`mouth, and [HeatSticks] had an end point.” These results indicate that participants saw the offerings to
`be distinct.
`
`.
`
`An industry report establishes distinct buckets for “E-Liquids Category Analysis,” “Oral Nicotine
`Category Analysis” and “THP Category Analysis.”
`In a study of the tobacco industry and its response to the growth of e-cigarettes, the authors note that
`there are many alternatives to traditional combustible products: “The arrival of the electronic cigarette
`(e-cigarette) and multiple other alternative nicotine delivery systems (ANDS) means that the traditional
`cigarette (or ‘combustible’) has been joined by a portfolio of products spanning new categories: first-
`generation e-cigarettes (closed system cig-a-likes, which replicate the look and feel of combustibles);
`vapors, tanks, and mods (VTMs) with open refillable systems; tobacco-heated products; and licensed
`medicinal products.” This study indicates that there are many categories of alternatives that are not
`substitutes for one another.
`In the same study, authors note that there are multiple categories of new products: “[t]hus, for BAT,
`‘differentiated products’ with ‘brand strength’ are part of the ‘commercial attractiveness’ of next-
`generation productions (Wheaton, 2015). It has ‘developed a portfolio of products spanning three
`categories: tobacco heated products (THP), e cigarettes and licensed medicinal products’” As such,
`tobacco heated products, like IQOS® are not considered to be in the same group as e-cigarettes.
`Additionally, the study noted that “BAT, for example, wants ‘to lead the segment’ by offering
`consumers ‘a choice of products across the risk continuum, including vapor, tobacco-heating and
`licensed medicinal products’ (Tuinstra, 2015, p. 24). In this way, the decisions about risk are delegated
`to the consumer.” Industry leaders identified the variety of products for the variety of consumers.
`In PMI market research, it is stated that adults expressing interest in heated products were “[b]est
`served by Heated Tobacco [as opposed to e-vapor]” if they were seeking familiarity, as heated products
`offer: “i) Tobacco taste ii) Familiar ritual iii) Convenience.”
`The F.D.A. reviewed the PMTAs for the IQOS® system and noted: “[PMI has] observed higher interest
`in adult smokers who have tried and rejected e-cigs than adult smokers who have not tried e-cigs.” As
`such, consumers did not treat the products as substitutes.
`
`
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`Exhibit 12
`Consumers View IQOS® and E-Cigarettes as Differentiated Products
`
`#
`
`Date
`
`IQOS® Discussion
`
`13. 04/29/2019
`
`No
`
`Statement
`In the same review, the F.D.A. noted that HeatSticks cannot be marketed the same way as e-cigarettes:
`“[a]s a cigarette product, [HeatSticks] cannot be marketed with characterizing flavors aside from
`tobacco or menthol; the availability of different flavors is a commonly-cited reason for never smokers'
`use of e-cigarettes. These characteristics may reduce the appeal to nonsmokers.” Again, this indicates
`that consumers did not treat the products as substitutes.
`
`14. 07/08/2019
`
`No
`
`In a press release announcing VELO, R.J. Reynolds describes its variety of PRRP options as follows:
`“‘[a]t RJRVC, our teams are working hard to expand our range of nicotine products to provide ATCs
`with a diverse set of choices. The current expansion of VELO, and the expansion of our dissolvable
`nicotine lozenge product REVEL earlier this year, are both evidence that we are serious about
`accelerating transformation in the modern oral space,’ said Shay Mustafa, Senior Vice President, Oral
`Business Unit. ‘These products are examples of the innovation and technology-driven options we will
`continue to provide in the tobacco industry to meet changing preferences.’” Accordingly, this indicates
`that not all PRRPs fit into any one market.
`
`15. 07/28/2020
`
`No
`
`IQOS® stores do not cater to non-smokers. The Washington Post reported “[a]ccess to the stores is
`limited to adults 21 and over. Staffers are instructed to turn away adults who are not smokers. The
`device is not intended for those who have already switched to e-cigarettes or other alternatives to
`smoking.” This indicates that IQOS® provides its own distinct offering.
`
`.
`
`Sources:
`[1]
`[2]
`[3] Levy DT, Sweanor D, Sanchez-Romero LM, et al., “Altria-Juul Labs deal: why did it occur and what does it mean for the US nicotine delivery
`product market,” Tobacco Control , 9/4/2019.
`[4] Complainants RAI Strategic Holdings, Inc., R.J. Reynolds Vapor Company, and R.J. Reynolds Tobacco Company's Eighth Supplemental
`Responses and Objections to Respondents Altria Client Services LLC, Altria Group, Inc., Philip Morris USA, Inc., Philip Morris International
`Inc., and Philip Morris Products S.A.'s First Set of Interrogatories (Nos. 1-12), 9/25/2020.
`.
`[5]
`[6]
`.
`[7] Kantar, “September Monthly Newsletter,” 9/20/2018.
`[8] De Andrade, Marisa et al., “Hostage to Fortune: An Empirical Study of the Tobacco Industry’s Business Strategies Since the Advent of E-
`Cigarettes,” Critical Public Health 30(3), 12/18/2018.
`[9] De Andrade, Marisa et al., “Hostage to Fortune: An Empirical Study of the Tobacco Industry’s Business Strategies Since the Advent of E-
`Cigarettes,” Critical Public Health 30(3), 12/18/2018.
`[10] De Andrade, Marisa et al., “Hostage to Fortune: An Empirical Study of the Tobacco Industry’s Business Strategies Since the Advent of E-
`Cigarettes,” Critical Public Health 30(3), 12/18/2018.
`[11] PMI Market Research, “Consumer Analyst Group of New York Conference,” 2/19/2020 (1199_RESP00010466–0549).
`[12] FDA, “Technical Project Lead Review of PMP IQOS PMTA,” 4/29/2019.
`[13] FDA, “Technical Project Lead Review of PMP IQOS PMTA,” 4/29/2019.
`[14] PR Newswire, “R.J. Reynolds Vapor Company Announces Velo – Expanding Emerging Modern Oral Portfolio and Choice for Adult
`Tobacco Consumers,” 7/8/2019.
`[15] The Washington Post, “Altria Expands Sales of Heated-Cigarette as Revenue Slides,” 7/28/2020.
`
`
`
`
`108. The examples in Exhibit 12 demonstrate that consumers have expressed
`
`preferences for IQOS® product features over other PRRPs.
`
`iv. Market Participants View a Need for a Broad Array of PRRPs
`
`109. Dr. Mody’s claim that the PRRP market offers sufficient substitutes for
`
`IQOS®, and consequently, there would be no effect of an exclusion order of IQOS® on
`
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`the public good, is incorrect. First, she offers no cross-elasticity analysis to support her
`
`conclusions. Dr. Mody also ignores the fact that market participants and regulators
`
`explicitly state that there is a need for a broad portfolio of PRRPs in the U.S. market to
`
`appeal to combustible cigarette consumer preferences. Exhibit 13 below provides some
`
`examples of discussion around the fragmented preferences of consumers who want to
`
`convert away from combustible cigarettes.
`
`Exhibit 13
`Discussion on the Need for a Broad Array Reduced Risk Products to
`Meet Goals of Reduced Combustible Cigarette Use
`Statement
`A 2014 Exane BNP Paribas analyst report on the
`
`Date
`
`#
`
`1.
`
`12/15/2014
`
`2.
`
`04/19/2016
`
`3.
`
`02/09/2017
`
`Reynolds American, in their 2016 10-K filing, said of their efforts to encourage smoking
`cessation, “(t)o achieve its strategy, RAI encourages the migration of adult smokers to
`smoke-free tobacco products and other non-combustible nicotine-containing products,
`which it believes aligns consumer preferences for new alternatives to traditional tobacco
`products in view of societal pressure to reduce smoking. RAI’s operating companies facilitate
`this migration through innovation, including the development of digital vapor cigarettes,
`CAMEL Snus, heat-not-burn cigarettes, and nicotine replacement therapy technologies.”
`
`4.
`
`04/30/2018
`
`The parent company of Reynolds American, British American Tobacco, characterized their
`reduced risk products strategy as follows:
`
`Philip Morris further discusses their reduced risk product offerings in their 10-K filing saying,
`“[o]ur product development is based on the elimination of combustion via tobacco heating and
`other innovative systems for aerosol generation, which we believe is the most promising path
`to providing a better consumer choice for those who would otherwise continue to smoke. We
`recognize that no single product will appeal to all adult smokers. Therefore, we are developing
`a portfolio of products intended to appeal to a variety of distinct adult consumer preferences.”
`
`Wells Fargo, in a report on the state of the tobacco industry, said of reduced risk products,
`
`5.
`
`01/31/2019
`
`6.
`
`10/15/2019
`
`7.
`
`03/26/2020
`
`Philip Morris says of its approach to reduced risk products, “[o]ur aim to deliver a smoke-free
`future extends beyond [IQOS®] heat-not-burn and requires a portfolio approach that addresses
`a range of adult smoker preferences and occasions in order to maximize full switching.”
`
`
`
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`#
`
`8.
`
`Date
`
`Exhibit 13
`Discussion on the Need for a Broad Array Reduced Risk Products to
`Meet Goals of Reduced Combustible Cigarette Use
`Statement
`Altria, in their 2019 10-K filing reported that “Altria and its subsidiaries have growth strategies
`involving moves and potential moves into adjacent products or processes, including innovative
`tobacco products. Some innovative tobacco products may reduce the health risks associated
`with current tobacco products, while continuing to offer adult tobacco consumers (within and
`outside the United States) products that meet their taste expectations and evolving preferences.
`Examples include tobacco-containing and nicotine-containing products that reduce or eliminate
`exposure to cigarette smoke and/or constituents identified by public health authorities as
`harmful, such as electronically heated tobacco products, oral nicotine pouches such as Helix’s
`on! products, and e-vapor products.”
`
`04/02/2020
`
`As Reynolds American notes on their website, “R.J. Reynolds Vapor Company (RJRV) offers
`innovative products for adult tobacco consumers’ evolving preferences. RJRV’s product
`portfolio reflects a commitment to leading the charge on transforming tobacco by developing a
`diverse portfolio of responsibly marketed, innovative and enjoyable products for adult tobacco
`consumers...RJRV’s vapor brand, Vuse, is an industry-leading brand that leverages innovative
`technologies to deliver a range of vapor products that meet the evolving preferences of adult
`tobacco consumers. Vuse’s portfolio includes four products in a range of formats and nicotine
`strengths to provide options for adult smokers seeking alternatives to combustible cigarettes.
`RJRV’s modern oral brands reflect a deep understanding of adult tobacco consumers’ interest
`in a range of product options to suit their modern lifestyles. RJRV’s modern oral products are
`VELO nicotine pouches and REVEL dissolvable nicotine lozenges.”
`
`Japan Tobacco International, one of the worlds largest tobacco companies, says of their reduced
`risk products strategy, “[reduced risk products] are core to the sustainability of our business, as
`we need to meet ever evolving, increasingly diverse consumer demands with the best and
`widest variety of smoking experiences. That’s why we have committed to providing the widest
`range of consumer choice in the [reduced risk product] category.”
`
`9.
`
`07/22/2020
`
`10.
`
`08/25/2020
`
`Sources:
`[1]
`[2]
`[3] Reynolds, Form 10-K, 2016, at 4.
`[4]
`[5] Philip Morris, Form 10-K, 2019, at 36.
`[6]
`[7] Philip Morris, Annual Report, 2019, at 2.
`[8] Altria, From 10-K, 2019, at 7.
`[9] Reynolds American Inc., Brands, https://www.reynoldsamerican.com/brands. Accessed 7/6/2020.
`[10] Japan Tobacco International, Reduced Risk Products-Our Vaping Products, https://www.jti.com/about-
`us/whatwe-do/our-reduced-riskproducts#element--4393. Accessed 8/25/2020.
`
`
`,
`
`
`
`
`
`D.
`
`Dr. Mody’s Analysis of IQOS® Market Share in the U.S. is Flawed and Not
`Relevant
`
`110. Dr. Mody claims that that the “consideration of the potential impact to
`
`
`
`56
`
`

`

`Case 1:20-cv-00393-LMB-WEF Document 1462-19 Filed 04/05/23 Page 14 of 14 PageID#
`39748
`
`Confidential-Subject to Protective Order
`
`Respectfully submitted,
`
`October 23, 2020
`
`-77-
`
`