Abbott is voluntarily recalling millions of containers of its Similac-brand infant formula after beetles were found in its products and in one plant where the product is made.
In a move that is expected to cost the company US$100m, Abbott said yesterday (22 September) it recalled the products following an internal quality review, which detected the remote possibility of the presence of a small common beetle in the product.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
“The United States Food and Drug Administration (FDA) has determined that while the formula containing these beetles poses no immediate health risk, there is a possibility that infants who consume formula containing the beetles or their larvae, could experience symptoms of gastrointestinal discomfort and refusal to eat as a result of small insect parts irritating the GI tract,” Abbott said.
The recall covers Similac in plastic containers and in eight-ounce, 12.4-ounce and 12.9-ounce cans that have been sold in the US, Puerto Rico, Guam and some countries in the Caribbean.
In a filing to the SEC, the company said the recall will cost it approximately US$100m in lost revenue, which will impact its third-quarter numbers.
However, Abbott is maintaining its third-quarter ongoing earnings per share guidance of $1.03 to $1.05 and its full-year 2010 ongoing earnings per share guidance of $4.13 to 4.18.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe company’s share price remained largely unchanged at the close of the market on 22 September.
