The Bubs Australia Ltd (ASX: BUB) share price is having a decent start to the week.
In morning trade, the junior infant formula company's shares are up 2% to 51.5 cents.
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Why is the Bubs share price rising?
The Bubs share price is pushing higher today after the company released another update on its US operations.
According to the release, the company has lodged a letter of intent to the U.S. Food and Drug Administration (FDA). This is in response to the FDA Guidance for Industry – Infant Formula Transition Plan for Exercise of Enforcement Discretion (Transition Plan) that was issued on 1 October 2022.
The release notes that the Transition Plan provides a clear regulatory pathway and framework of requirements for Bubs to gain permanent access without interruption to supply to American families.
If all goes to plan and Bubs makes meaningful progress towards compliance with the Transition Plan, the FDA will allow the company to continue to supply the US market until October 2025.
Management commentary
Bubs' founder and CEO, Kristy Carr, commented:
We are pleased to announce confirmation of our continued commitment to work with the U.S. Food and Drug Administration and welcome this important FDA announcement which provides a clear pathway for a select number of safe, nutritious, international infant formula brands to secure permanent regulatory approval.
This commitment and the FDA's announcement also mean American parents who are already safely using Bubs Infant Formula products, as well as our retail partners now stocking our formula in 6,500 stores across 42 states, can remain confident in ongoing supply, without interruption, providing more choices for American families seeking safe, clean nutrition for their children.
Importantly, the FDA announcement also provides continued support for the ongoing expansion of our U.S. distribution footprint, as we look forward to launching Bubs Infant Formula products in various new retail groups in the months ahead.
