Abbott says agreement reached to reopen baby formula plant

WASHINGTON (AP) — Infant formula maker Abbott says it’s reached an agreement with U.S. health officials to restart production at its largest domestic factory, a key step toward easing a nationwide shortage tied to the plant’s shutdown earlier this year.

Abbott did not immediately detail the terms of the agreement reached with the Food and Drug Administration, which has been investigating safety problems at the Sturgis, Michigan, facility. The consent decree is a binding legal agreement between the company and the federal government.

After production resumes, Abbott has said it will take at least eight weeks to begin shipping new product to stores.

The Biden administration has come under intense pressure over the last week to do more to ease the shortage of formula that has forced parents of infants to go to significant lengths to feed their children.

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.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

WASHINGTON (AP) — Under fire from parents and politicians, President Joe Biden’s administration on Monday is expected to announce an agreement to reopen the largest domestic manufacturing plant of infant formula and to ease import rules to allow supplies in from overseas, amid a nationwide shortage spurred by the Michigan plant’s shutdown earlier this year over safety issues.

A consent decree between the producer, Abbott, and the Food and Drug Administration that would pave the way for reopening the plant is “forthcoming,” said Brian Deese, the director of the White House’s National Economic Council. He added the agency would also take steps Monday to allow more foreign imports into the U.S. to address the urgent supply constraints.

It comes as the Biden administration has come under intense pressure over the last week to do more to ease the shortage of formula that has forced parents of infants to go to significant lengths to feed their children.

Over the weekend, the White House offered formula manufacturers and retailers transportation and logistics support, and working with all major formula producers to boost production, including reaching out to their suppliers to encourage them to prioritize production and delivery of formula ingredients.