ABBOTT LABORATORIES Resumes Similac Baby Formula Production at Michigan Plant
August 31, 2022
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Abbott Laboratories($NYSE:ABT) has restarted production of its Similac infant formula brand at the Sturgis, Mich., manufacturing facility, which was shut down early this year amid safety concerns.
However, the company said it would take about six weeks to begin delivery of products to retail locations. Following reports of bacterial infections linked to products that originated from the location, ABT, the nation’s largest baby formula supplier, recalled certain products and shut down the plant triggering a baby formula shortage in the U.S. After an agreement with the FDA, ABT resumed operations at the plant in early June, initially manufacturing Elecare and other specialty formulas.
However, a flooding incident in surrounding areas forced the company to pause production at the plant days later. It is unclear when production will resume. The company has not said if or when it plans to resume production of Similac products at the facility. The plant shutdown and subsequent recall of products put a strain on ABT’s operations and reputation. The company’s stock price took a hit, and it faces lawsuits from families of children who were sickened by the contaminated products. It remains to be seen how long it will take for ABT to recover from the incident. In the meantime, the company is working to restore its reputation and regain the trust of consumers.
The company is one of the world’s leading manufacturers of infant formula.
Company’s fundamentals reflect its long term potential, but there may be some risks associated with the company that investors should be aware of. According to VI’s Risk Rating, ABBOTT LABORATORIES is a medium risk investment in terms of financial and business aspects. This means that there are some potential risks associated with the company that investors should be aware of.
However, the company’s fundamentals do reflect its long term potential. You can check out what are the business and financial areas presenting potential risks in our website.
Investing in ABBOTT LABORATORIES may be a good idea based on recent news. This is good news for the company, as it shows that they are able to overcome the production issues that caused them to halt production in the first place. This news is also good for investors, as it shows that the company is on the rebound and is making progress in resolving its issues.
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