- Jatcorp (JAT) is seizing the opportunity to export in-house brands of infant formula into the US market to help alleviate the current shortages while seeking regulatory approvals
- The US market’s infant formula supply chain is facing shortages, largely due to the shutdown of one of its largest infant formula manufacturers
- The company is working with Austrade to provide infant formula labelling information to help fast track its US Food & Drug Administration (FDA) approval application
- FDA approval will allow Jatcorp to distribute its owned brands of formula into the US market via existing and new distribution channels, while also aiding the supply shortage
- Shares in Jatcorp are up 12.5 per cent, trading at 1.8 cents at 11:43 am AEST
Jatcorp (JAT) has progressed the opportunity to export several key in-house brands of infant formula into the US market to help alleviate the current shortages.
The strain on the US’ infant formula supply chain is largely due to the shutdown of Abbott, one of the country’s largest infant formula manufacturer.
Abbotts’ products were recalled due to health and safety concerns and reports of bacterial infections in four infants.
As part of the recently announced cooperation between the US and Australian governments, Austrade and Jatcorp are working to provide the company’s infant formula labelling information.
This will enable Austrade to help Jatcorp with fast-tracking its US Food & Drug Administration (FDA) approval application.
Due to the recent ANMA manufacturing facility upgrades, Jatcorp assured the market it has sufficient capacity to export its products into the US.
The company said it is exercising its partnership with US-based distributor Koha Foods to assist with distribution of the infant formula products in Hawaii and the US West Coast.
Jatcorp is also looking to capitalise on its partnership with other networks to distribute its products.
While the company is taking advantage of the current situation to obtain US FDA approval, it said it is remaining cautious given that Abbott Laboratories has resumed its operations in the Americas but at a reduced level.
Shares in Jatcorp were up 12.5 per cent, trading at 1.8 cents at 11:43 am AEST.