* A2 Milk shares fall more than 12%
* FDA says reviews deferred for some
* Fonterra has not received FDA deferral
Aug 10 (Reuters) - A2 Milk Company Ltd said on
Wednesday the U.S. Food and Drug Administration (FDA) deferred
its request to sell infant milk formula products in the United
States, sending its shares down more than 12%.
The dairy producer and rival Fonterra have been
advised by U.S.-based trade group International Dairy Foods
Association (IDFA) that the FDA has sent similar letters to all
firms seeking approvals to sell infant milk formula in the
Fonterra, however, told Reuters that it had not yet received
any such notice from the FDA itself.
An FDA spokesperson told Reuters in an email response that
the FDA had sent letters to some firms, not all, deferring
further reviews of applications due to a list of issues.
"For firms that received letters, they do not mean that the
infant formulas are unsafe; rather, they indicate that we have
found issues that would unlikely be resolved quickly," the
The IDFA did not immediately respond to a Reuters' request
"At this time, the FDA is deferring further consideration of
the company's request for enforcement discretion to import
infant milk formula products," a2 Milk said on Wednesday. (https://bit.ly/3dnbRaA)
Shares of a2 Milk tumbled as much as 12.3% to NZ$4.94 after
the new came in and were headed for their biggest single-day
drop since Aug. 26, 2021.
The FDA had previously said it would allow baby formula sold
in other countries into the United States under a temporary
programme with relaxed standards. The U.S. government has also
flown in formula from overseas plants.
The FDA has exercised its "enforcement discretion" provision
to import certain infant formula products from Bubs Australia
Ltd, UK-based Kendamil, Nestle SA and Danone
However, companies like a2 Milk, Fonterra, Switzerland's
Holle and U.S.-based Nature's One are yet to receive approvals.
(Reporting by Harish Sridharan in Bengaluru; Additional
reporting by Upasana Singh and Sameer Manekar; Editing by Maju
Samuel and Subhranshu Sahu)