The Bubs Australia Ltd (ASX: BUB) share price is on the slide on Thursday morning.
At the time of writing, the junior infant formula companyâs shares are down 2.5% to 59.5 cents.
What’s going on with the Bubs share price?
The Bubs share price is falling today despite the company releasing yet another update on its US operations.
Todayâs update highlights that the US Food and Drug Administration (FDA) has announced that it is developing a new framework for continued, expanded access for US parents and caregivers to international infant formula products that it has assessed as being safe and nutritious.
While not unexpected, this is a potential positive for Bubs as the FDA’s temporary enforcement discretion policy to supply infant formula to the US runs until November.
The release notes that the FDA intends to issue further guidance in September. This will relate to how companies that have already received temporary enforcement discretion could meet the FDA requirements to continue supplying infant formula beyond that time.
Bubs has expressed an interest in helping to diversify and strengthen US infant formula supply by continuing to serve the American market permanently.
In other news, the fifth and sixth air freight shipment has been confirmed for this month. This will ship 180,000 tins of infant formula to the US.
Management commentary
Bubs Founder and CEO, Kristy Carr said:
We welcome Commissioner Cliff’s announcement today and look forward to continuing to work with the FDA over the coming months to address any additional steps required to ensure we can supply and market Bubsâ safe and nutritious formulas without interruption beyond November and over the longer term.
Bubs was one of the first international manufacturers to apply to the FDA to import infant formula under the initial enforcement discretion policy. Our long-standing commitment to the U.S. market ensured our ability to provide rapid response at the speed of safety, and satisfy the very stringent quality and safety nutrition requirements of the FDA, having first launched our toddler products in the United States in 2021 with our retail partners.
The post Bubs share price falls despite US FDA update appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BUBS AUST FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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