A2 Milk’s (ASX:A2M) share price drops on FDA notification

Image Source: © Mehaniq | Megapixl.com

Highlights:

  • Dual-listed a2 Milk Company has informed that its application to import baby milk formula to the US has been deferred by the US FDA.
  • Earlier this month, a2MC had stated that its application is under active review, but it is not certain whether it would receive approval or not.
  • On the ASX, the share price of a2MC dropped by more than 9% (as of 11:12 AM AEST).

Dairy nutritional company, The a2 Milk Company Limited (ASX:A2M), on Wednesday, (10 August 2022) shared that it has received a notification from the US Food and Drug Administration (FDA). FDA has informed the company that it is deferring its request for enforcement discretion to import the company’s baby milk formula into the US.

International Dairy Foods Association (IDFA) has advised the organisation that the FDA is deferring further consideration of all the pending applications at this time. Reportedly, FDA has not provided any reason for deferring the company’s request.

a2 Milk Company is a dual-listed company with its listing on ASX and NZX. The company is focused on products that contain the A2 beta-casein protein type. The company has products in North America, Greater China, Australia, New Zealand and a selection of emerging markets.

How are a2 Milk Company shares responding to the news?

The share price of a2 Milk Company was spotted 9.197% lower at AU$4.640 per share at 11:12 AM AEST.

With this, the share price has been dragged down by 15.77% on year-to-date basis. And in last one year, the share price has fallen by 20.47%. In last six months, it has gone down by 14.23%. The monthly gain stands at 4.91%.

More on the FDA approval to import a2MC’s baby milk formula products

Image source: © Jarretera | Megapixl.com

Earlier this month, a2MC informed the market that its application to import infant milk formula to the US is under active review. In the announcement (dated 2 August 2022), the company said that there is no certainty that it would get approval.

Australian and New Zealand dairy companies are on their feet to get approval to restock the shelves of the US as the country relaxed its import policy under a temporary program. The US relaxed its import standards as it is going through one of the largest infant formula shortages.

Australian milk company, Bubs Australia Limited (ASX:BUB) has sent several batches of infant formula to the US. Other companies like Nestle SA, UK-based Kendamil and Danone SA are putting their products on shelves of US supermarkets.

Many companies are still waiting to get approvals, including a2MC.


 


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