Could FDA Hurt Hansen Natural (HANS)?

November 7, 2007 12:04 PM EST
The FDA may begin looking into regulating energy drinks, such as Hansen's Natural (Nasdaq: HANS).
There was a study presented at the Scientific Sessions on Sunday, which detailed how students who consumed alcohol mixed with energy drinks were twice as likely to be hurt or injured, twice as likely to require medical attention, and twice as likely to ride with an intoxicated driver, as were students who did not consume alcohol mixed with energy drinks.

"The underlying pharmacological mechanism is caffeine, pure and simple," says Roland Griffiths, Ph.D, a professor in the psychiatry and neuroscience departments at Johns Hopkins School of Medicine. "There’s no scientific basis to believing that [other] additives are integral to the stimulating effects of the energy drinks." The energy drinks in the blood pressure study contained 80 milligrams of caffeine and 1,000 milligrams of taurine (about the same amount as found in the average 8 fl. oz. energy drink).

Hansen’s management knows that future growth will be more dependent on the introductions of new energy drinks in the fast-growing, $3.2 billion a year energy-drink market. If the FDA steps in, the share price of Hansen's is likely to come in.

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