The more I read about the situation over there the worse it seems. I don't mean in terms of scale (which is obviously bad), but more in terms of culpability.
A whistleblower alerted the FDA to the dodgy practices at Abbott in October 2021, but it was not until about February 2022 that the FDA actually inspected Abbott's plant. By that time there had already been illnesses and deaths from the contamination. In the end it was consumer complaints rather than the report that meant they had to investigate.
Believe it or not the FDA is claiming that the whistleblower report was lost in the mail - like literally in their mailroom.
Now the FDA's own handling of the situation is being investigated by Department of Health and Human Services. Personally I would not be surprised in the slightest if there was corruption and deliberate effort to bury the whistleblower's report. That is the kind of behavior that is inevitably the outcome of allowing a monopoly or cartel in any industry - it is just easier for the regulator to turn a blind eye.
Either way, you can understand the pressure that is on FDA now as they review these applications from foreign companies like A2.
Meanwhile Abbott is actually still denying any link between the cases and their plant, so it's no wonder they weren't invited to the infant formula producers summit at the White House. Who would have ever imagined the #1 American IF brand trashing that brand so quickly and irretrievably.
It seems difficult for the Yanks to go back to 'business as usual' after this, but we'll see.
A2M Price at posting:
$4.74 Sentiment: Buy Disclosure: Held
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