Shares in infant formula suppler The A2 Milk Company and Wattle Health Australia have lifted after both companies strengthened their regulatory position in the lucrative Chinese market.
A2 Milk was up 12 cents, or 2 per cent, at $6.11 in early trades, while Synlait Milk had risen 38 cents, or 7.1 per cent, to $5.76.
Wattle Health had lifted 7 cents, or 9 per cent, to 84.5 cents.
A2 Milk’s application to continue selling its infant formula products in China has been approved by health regulator the China Food and Drug Administration.
Formula manufacturer Synlait Milk, which has been in partnership with A2 Milk since 2010, submitted the mandatory CFDA application in May.
All infant formula manufacturers must register brands and recipes with the CFDA for products to be imported into China from January 1 next year.
After that date, all infant formula to be sold in China must be manufactured by a facility accredited by the CNCA, and each facility can only register up to three brands.
A2 Milk chief executive Geoffrey Babidge said the company’s multi-channel infant formula strategy in both Chinese-labelled products and English-labelled products had positioned A2 Milk well in the context of current regulatory requirements.
Meanwhile, Wattle Health has completed its previously announced $5 million acquisition of a 5 per cent interest in Australian infant formula maker Blend & Pack, which is licensed by the CNCA to produce infant formula for China’s market.
Wattle Health said the acquisition ensured its infant formula range would be the first brand nominated by Blend & Pack for CFDA approval.
As seen in Geelong Advertiser, September 29th 2017.