Abbott Laboratories announced on Monday that it has obtained an agreement with the US Food and Drug Administration to restart manufacturing of infant formula at its troubled Michigan factory, a significant step toward resolving a statewide shortage of the product.

The site might be reopened within two weeks, according to the corporation, if the US Food and Drug Administration determines that the initial prerequisites have been completed.

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“This is a major step toward re-opening our Sturgis facility so we can ease the nationwide formula shortage. We look forward to working with the FDA to quickly and safely re-open the facility,” Robert Ford, the CEO of Abbott, stated.

The FDA began investigating the facility after receiving reports of bacterial illnesses in newborns who had taken the items.

Abbott, the largest milk formula supplier in the United States, recalled Similac and other baby formula prepared at the Michigan factory in February. This has caused a nationwide shortage, prompting several major retailers to limit purchasing.

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Abbott stated that after the FDA inspection, it has been working on corrective activities and submitted a response and corrective action plan to the authority on April 8.

The Abbott-FDA arrangement, known as a consent decree, is subject to court approval.

The company stated that it will suffer one-time defined charges for expenses relating to the consent decree, which it did not quantify. Abbott, on the other hand, reiterated its 2022 adjusted profit target of at least $4.70 per share.

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Abbott announced earlier on Friday that it had air-shipped millions of cans of infant formula powder into the United States from its facility in Ireland in order to solve shortages in the country as it attempted to restore its Michigan manufacturing plant.