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The Antipodean companies were looking to cash in on a relaxation of regulations around infant formula imports by the FDA earlier this month to mitigate one of the biggest baby food shortages in the United States in recent history.
The crisis was triggered when Abbott Laboratories (NYSE:ABT), the biggest U.S. supplier of powder infant formula including Similac, in February recalled dozens of products after reports of serious 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.
Bubs Australia plans to ship at least 1.25 million cans of its baby formula to the United States, the FDA said on Friday.
Shares in a2 Milk soared as much as 13%, and were set for their best session since February, while Bubs Australia shot up 42.1% at A$0.0.69 in afternoon trade.
The FDA said on May 19 that Abbott was on track to reopen its key baby formula plant in Michigan within one or two weeks.
