Complex sentence: Initially the Swedish Medical Products Agency declined to approve Nicorette as a medicine because it considered smoking not an addiction, but a lifestyle choice; and the Swedish National Board of Health and Welfare regarded orally consumed nicotine products not as medicine but as foodstuffs.
Split into simpler sentences: Initially the Swedish Medical Products Agency did not approve Nicorette as a medicine because at that time smoking was considered not an addiction, but a lifestyle choice. Also Swedish National Board of Health and Welfare regarded orally consumed nicotine products not as medicine but as foodstuffs.