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NZ’s a2 Milk seeks to supply infant formula to U.S. after Bubs approval -Breaking

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© Reuters. FILEPHOTO: Singapore’s A2 milk was seen on a shelf at a grocery store in April 16, 2018. Picture taken April 16, 2018. REUTERS/Thomas White/File Photograph

(Reuters) – New Zealand’s a2 milk company said Monday that it submitted a request to the U.S. Food and Drug Administration to provide infant formula to Bubs, an Australian peer.

Antipodean firms were keen to capitalize on an FDA relaxation earlier this month regarding infant formula imports to help alleviate one of the most serious baby food shortages in America in recent times.

It was then that the crisis was started Abbott Laboratories (NYSE) – The biggest U.S. producer of powder infant formulation, Similac included, in February recall dozens of products following reports of severe bacterial infections in four infants.

“We are able to provide support… leveraging our existing U.S. presence and distribution capability,” David Bortolussi, managing director and CEO of a2, said in a statement emailed to Reuters.

According to Friday’s FDA statement, Bubs Australia will ship 1.25 Million cans of baby formula to America.

Shares of a2 milk rose as high as 13% and are set for their highest session since February. Bubs Australia climbed 42.1% to A$0.0.69 during afternoon trading.

On May 19, the FDA stated that Abbott would reopen Michigan’s key baby formula facility within one to two weeks.

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