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Abbott Shares Jump on FDA Deal to Restart Michigan Baby Formula Plant in as Little as 2 Weeks -Breaking

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© Reuters. Abbott (ABT), Shares Rise on FDA Deal To Restart Michigan Baby Formula Plant In as Short as Two Weeks

Abbott Laboratories (NYSE:) shares are gaining over 4% in mid-day trading Tuesday after the company entered into a consent decree with the FDA on steps to resume production at its troubled infant formula plant in Sturgis, Michigan. A shutdown at the facility, which was suspected to have been linked to infant illness, contributed to the crisis in infant formula supply.

Robert Ford, CEO of Abbott said that “Our top priority is to get infants and their families high-quality formulas. This is a significant step towards reopening our Sturgis plant so we can alleviate the national formula shortage.”

Two weeks from the FDA approval, the plant can be restarted.

Abbott indicated that it will begin the production of EleCare, Alimentum, metabolic formulas and metabolic compounds once authorization has been granted. Then, Similac would be produced.

Abbott, the FDA and Centers for Disease Control and Prevention have conducted extensive investigations and found no evidence linking Abbott’s infant formulas with these illnesses.

Court approval is required for the consent decree between Abbott & FDA.

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