Free Subscription

  • Access daily briefings and unlimited news articles


Only $39.95 per year
  • Quarterly magazine and digital
  • Indepth executive interviews
  • Unlimited news and insights
  • Expert opinion and analysis

Bubs Australia to ship at least 1.25 million baby formula cans to US

(Source: Bigstock)

Bubs Australia plans to ship at least 1.25 million cans of its baby formula to the US to help ease a nationwide shortage, the US Food and Drug Administration (FDA) said on Friday.

Some of it is currently in stock for transport and more will be produced by the Australian company in the coming weeks and months, according to the FDA.

Shares in Bubs Australia surged on Monday after the news broke, and US President Joe Biden tweeted “the good news”.

Meanwhile, the US Department of Health and Human Services allowed global farm commodities trader Cargill to provide raw materials needed to maximise the production of infant formula by invoking the Defence Production Act.

Cargill supplies dozens of products to infant formula makers and the move will allow the manufacturers to produce at full capacity to address the “urgent marketplace shortages”, the department said in a statement.

The Biden administration had earlier decided to urgently meet the nationwide shortage by importing emergency supplies from Europe, the first of which arrived earlier this week.

Bubs’ supply is another import allowed by the FDA as part of its regulatory flexibility started earlier this month to mitigate one of the biggest baby formula shortages in recent history.

The shortage is partly due to Abbott Laboratories’ manufacturing plant in Michigan recalling some products including Similac in February.

Abbott said on Tuesday it plans to restart production at the facility on June 4, adding it would prioritise making EleCare and supplying it on or about June 20.

  • Reporting by Leroy Leo and Ananya Mariam Rajesh in Bengaluru; Editing by Shounak Dasgupta, of Reuters.

You have 3 free articles.