(RTTNews) - Tobacco giant Reynolds American Inc. (RAI: News ) is in advanced talks to buy a Swedish maker of products that help people stop smoking, reported the Wall Street Journal on Sunday.

Citing David Sweanor, a Canadian law professor and tobacco expert, the newspaper reported that Reynolds, which offers cigarettes under Camel, Kool and Pall Mall brands, is near a deal to acquire closely held Niconovum AB.

David Sweanor has said that he was told by people involved in the discussions that the deal could be valued at $44.5 million, the report noted

Helsingborg-based Niconovum was formed in 2000 by Karl Olov Fagerstrom, an expert in nicotine dependence who has been involved in such products as Nicorette gum. Niconovum, whose products are not sold in the United States, makes nicotine-replacement therapies such as Zonnic pouch and Zonnic gum.

Reynolds currently sells several smokeless-tobacco products, including Camel Snus that satisfies nicotine cravings but exposes users to less risk than does smoking.

Reynolds and other tobacco companies, including Altria Group Inc. (MO: News ) have owned pharmaceutical businesses, but none yet market or sell an approved smoking-cessation product.
If Reynolds were to acquire Niconovum, it is unclear whether and how soon its product might be introduced in the U.S. The products will need approval from the Food and Drug Administration.

On its Web site, Niconovum says it sees a marketplace for products that "will deliver nicotine more quickly and effectively," thereby "giving the consumer a perceived better control of cravings."

Studies have shown that smoking-cessation products enhance the ability of smokers to quit. However, quitting remains difficult for millions of smokers, some of whom complain that existing smoking-cessation devices don't deliver enough nicotine to help them get over the habit, the report noted.

RAI rose $0.16 or 0.33% and closed Friday's regular trading session at $48.60. After hours, RAI declined $0.10 or 0.20% and traded at $48.50.

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by RTT Staff Writer

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