Baby formula maker Abbott said Monday it has reached an agreement with U.S. health regulators to restart production at its largest domestic factory, though it will be well over a month before any new products ship from the site to help alleviate the national shortage parents are facing.
Under the agreement, Abbott must work with outside experts to upgrade its standards and reduce bacterial contamination at the Sturgis, Mich., facility, which the Food and Drug Administration has been investigating since early this year. The deal, which must be reviewed by a federal judge, amounts to a legally binding agreement between the FDA and the company on steps needed to reopen the factory.
The agreement was filed in court by the U.S. Department of Justice, on behalf of the FDA.
After production resumes, Abbott said it will take six to eight weeks before new products begin arriving in stores. The company didn’t set a timeline to restart manufacturing, which must be cleared with the FDA.
The FDA is expected to announce additional steps Monday to allow more foreign imports into the U.S. to address the supply problems.
It comes as the administration of U.S. President Joe Biden faces intense pressure to do more to ease the shortage that has left many parents hunting for formula online or at food banks.
Recall squeezed already strained supply
Abbott’s plant came under scrutiny earlier this year after four infants became sick with bacterial infections after consuming powdered formula from the Michigan factory. Two of the babies died.
In February, the company halted production and recalled several brands of formula. Those steps squeezed supplies that were already strained by supply chain disruptions and parents stockpiling during COVID-19.
The shortage has led retailers like CVS and Target to limit how many containers customers can purchase per visit and forced some parents to swap and sell formula online.
Outrage over the issue has quickly snowballed and handed Republicans a fresh talking point to use against Biden ahead of November’s midterm elections.
Abbott is one of just four companies that produce roughly 90 per cent of U.S. formula, and its brands account for nearly half that market.
After a six-week inspection, FDA investigators published a list of problems in March, including lax safety and sanitary standards and a history of bacterial contamination in several parts of the plant.
Chicago-based Abbott has emphasized that its products have not been directly linked to the bacterial infections in children.
Samples of the bacteria found at its plant did not match the strains collected from the babies by federal investigators. The company has repeatedly stated it is ready to resume manufacturing, pending an FDA decision.
Former FDA officials say fixing the type of problems uncovered at Abbott’s plant takes time, and infant formula facilities receive more scrutiny than other food facilities. Companies need to exhaustively clean the facility and equipment, retrain staff, and repeatedly test and document there is no contamination.
Announcement expected on formula imports
On Monday, FDA Commissioner Robert Califf told ABC News that an announcement was forthcoming about importing baby formula from abroad.
The key issue is making sure the instructions for the formula are in languages that mothers and caregivers can understand, he noted.
Pediatricians say baby formulas produced in Canada and Europe are roughly equivalent to those in the U.S. But traditionally, 98 per cent of the infant formula supply in the U.S. is made domestically.
Companies seeking to enter the U.S. face several major hurdles, including rigourous research and manufacturing standards imposed by the FDA.
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