Abbott Shares Jump on FDA Deal to Restart Michigan Baby Formula Plant in as Little as 2 Weeks
2022.05.17 19:36
Abbott (ABT) Shares Jump on FDA Deal to Restart Michigan Baby Formula Plant in as Little as 2 Weeks
Abbott Laboratories (NYSE:ABT) 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. The shutdown of the plant, due to suspected links to infant illnesses, has contributed to the national crisis of infant formula shortages.
“Our number one priority is getting infants and families the high-quality formulas they need, and this is a major step toward re-opening our Sturgis facility so we can ease the nationwide formula shortage,” Abbott CEO Robert Ford commented.
The plant is to restart within two weeks after the FDA confirms the initial requirements for start-up have been met.
Once authorized, Abbott said it would begin production of EleCare, Alimentum and metabolic formulas first and then begin production of Similac and other formulas.
A thorough investigation by FDA, Centers for Disease Control and Prevention (CDC) and Abbott has revealed there is no conclusive evidence to link Abbott’s formulas to these infant illnesses.
The consent decree between Abbott and the FDA is subject to court approval.
