A2 Milk’s U.S. baby food hopes crumble, stock price plummets

A2 milk on a shelf in a supermarket in Singapore, April 16, 2018. Photo taken of him on April 16, 2018. REUTERS/Thomas White/File Photo

Register now for free, unlimited access to Reuters.com

  • A2 Milk shares drop more than 12%
  • FDA says some reviews have been postponed
  • Fonterra has not received an FDA deferral

Aug 10 (Reuters) – A2 Milk Company Limited’s (ATM.NZ) shares fell more than 12% on Wednesday after the U.S. Food and Drug Administration (FDA) delayed a requirement to sell infant formula dairy products in the United States. announced.

Dairy maker and rival Fonterra (FCG.NZ) has received approval from the International Dairy Association (IDFA), a US-based trade group, for all of the FDA’s approvals to market infant formula in the US. I was informed that I had sent a similar letter to the company.

However, Fonterra told Reuters it had not yet received such a notice from the FDA itself.

Register now for free, unlimited access to Reuters.com

An FDA spokeswoman said in an emailed response to Reuters that the FDA has sent letters to some, but not all, of the companies, deferring further review of the application due to a list of issues.

“For companies receiving the letters, they do not mean that infant formula is unsafe. Rather, they indicate that they have discovered problems that are unlikely to be resolved soon,” the spokesperson said. rice field.

The IDFA did not immediately respond to Reuters’ request for clarification.

“At this time, the FDA is deferring further consideration of the company’s request for enforcement discretion to import infant formula,” a2 Milk said Wednesday. (https://bit.ly/3dnbRaA)

A2 Milk’s share price plummeted 12.3% to NZ$4.94 after the new entrant, heading for its biggest one-day drop since 26 August 2021.

The FDA previously said it would allow infant formula sold in other countries to be imported into the United States under a temporary program that relaxed standards. I flew the formula from

The FDA has exercised “enforcement discretion” provisions to import certain infant formula products from Babs Australia (BUB.AX), UK’s Kendamill, Nestlé (NESN.S) and Danone (DANO.PA).

However, companies such as a2 Milk, Fonterra, Switzerland’s Holle and US-based Nature’s One have yet to receive approval.read more

Register now for free, unlimited access to Reuters.com

Reported by Harish Sridharan, Bangalore. Additional reporting by Upasana Singh and Sameer Manekar. Edited by Maju Samuel and Subhranshu Sahu

Our standards: Thomson Reuters Trust Principles.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *