Abbott Laboratories is facing another FTC investigation over infant formula shortages

Last month, Abbott received a civil lawsuit from the US Federal Trade Commission (FTC) seeking information in connection with its investigation of companies participating in bids for formula contracts, according to a financial statement filed Friday with the US Securities and Exchange Commission. Investigative request received. If the agency finds Abbott engaged in anti-competitive conduct, such as collusion with other manufacturers on pricing, the investigation could lead to a lawsuit by the FTC.

For decades, Abbott & Peer Perrigo Company, shelter SA and Mead Johnson Nutrition Company tightly control the infant formula market in the US. The risks of that level of market consolidation were brought into sharp relief last year when millions of cans of formula were recalled from Abbott’s plant in Sturgis, Michigan, after several babies became ill.

The plant was shut down, causing a nationwide shortage of powdered infant formula. Abbott’s plant in Sturgis was producing about 20% of the nation’s infant formula, including Similac, the country’s most popular brand. About 70 million cans and containers of Similac, as well as the specialty formulas Elecare and Alimentum, were recalled a year ago.

Other companies increased production and the US government loosened import restrictions to meet the shortage, but shelves remained empty and families struggled to obtain the formula they needed for their infants.

Abbott’s revelations show the US government is still considering the issue after officials vowed to hold the companies accountable for their role in the shortfall. The US Department of Justice has also opened a criminal investigation related to the manufacture of Abbott’s formula, which the company confirmed last month. In May Abbott entered into a five-year consent decree with the DOJ that gives the US Food and Drug Administration additional oversight of the Sturgis facility.

sec summons

The company also received a subpoena from the SEC’s Division of Enforcement requesting information related to Abbott’s powdered infant formula business and related public disclosures, according to the filing.

Separate from the new investigation, the FTC, which enforces consumer protection and antitrust laws, launched an investigation into the infant formula market last year after lawmakers urged it to look into whether consolidation helped reduce shortages. is of. FTC chair Leena Khan said the agency would investigate whether the merger contributed to the “vulnerable condition” of the market. A report with the findings of that investigation, in which the agency sought information from the public, is expected to be released this spring.

Several civil lawsuits have also been filed against Abbott regarding its manufacturing of certain powdered infant formula products, according to the filing.

The FTC declined to comment. Abbott spokesman Scott Stoffel said the company is cooperating with the FTC.

The text of this story is published from a wire agency feed without any modification. Only the headline has been changed.