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Vandana Singh

FDA Allows Import Of 2M Baby Formula Cans Amid Supply Shortage: Reuters

  • The FDA is easing regulations to allow infant formula imports from Britain, bringing around 2 million cans onto empty shelves by June to ease a nationwide shortage, Reuters reported.
  • The FDA said it was "exercising enforcement discretion" to allow Britain-based Kendal Nutricare to import certain infant formula products under the Kendamil brand.
  • The FDA said that Kendal has 40,000 cans in stock for immediate dispatch that the Department of Health and Human Services is working on bringing into the U.S. as soon as possible.
  • Related: More Companies Join Race To Ease US Baby Formula Supply Crunch.
  • The FDA said it would allow the release of about 300,000 cans of Abbott's EleCare amino acid-based formula for children who urgently need it to survive on a case-by-case basis.
  • EleCare was previously produced at the Sturgis facility but was not part of the recall, the FDA said.
  • Abbott plans to restart production at the facility on June 4, it said in a statement, adding it would prioritize making EleCare and supplying it on or about June 20. 
  • Abbott said it would provide the formula to children in need for free.
  • Additionally, the Federal Trade Commission said it had launched an inquiry into the ongoing shortage of infant formula.
  • The U.S is experiencing one of the most significant infant formula shortages in recent history after Abbott Laboratories (NYSE:ABT) recalled some products and closed its manufacturing plant in Sturgis, Michigan.
  • Price Action: ABT shares are up 0.27% at $114.08 during the market session on the last check Wednesday.
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