ATM - A2 Milk Corporation Limited

[dreamcatcher]

Appears currently US has enough suppliers ..........

The a2 Milk Company (a2MC, the Company) wishes to advise that earlier today it received notification from the US Food and Drug Administration (FDA) that, at this time, the FDA is deferring further consideration of the Company’s request for enforcement discretion to import infant milk formula (IMF) products into the US.

The Company has also subsequently been advised by the International Dairy Foods Association (IDFA) that equivalent letters have been sent to all pending enforcement discretion applicants, indicating that the FDA is deferring any further review at this time of all pending applications.

Authorised for release by
David Bortolussi

[Wai Wai]

Bubs mkt cap NZ$ 500m looking underpriced
ATM Mkt Cap 4100mlooking overpriced
Bubs register wide open with short term FDA approval and long term entrance under consideration
A scrip plus cash bid for Bubs at a 20% premium would attract Bubs shareholders and could well be value accretive for ATM
In meantime surely ATM should pick a few cheap BUBs up in the market?

[dreamcatcher]

Bubs mkt cap NZ$ 500m looking underpriced
ATM Mkt Cap 4100mlooking overpriced
Bubs register wide open with short term FDA approval and long term entrance under consideration
A scrip plus cash bid for Bubs at a 20% premium would attract Bubs shareholders and could well be value accretive for ATM
In meantime surely ATM should pick a few cheap BUBs up in the market?

My understanding is Bubs already approved beyond Nov

[silverblizzard888]

Not the outcome many were looking for from the FDA, but given everyone thought it would be a short term supply anyway it wasn't a big loss by this outlook (though of course it dashes the long term potential many hoped A2 would have in the US), though with the international market opening up again, overall sentiment for A2 is positive.

Share price has been sold down in panic, but has bounced back a little for those who realise the overall picture and value the company still has.

[sb9]

Not the outcome many were looking for from the FDA, but given everyone thought it would be a short term supply anyway it wasn't a big loss by this outlook (though of course it dashes the long term potential many hoped A2 would have in the US), though with the international market opening up again, overall sentiment for A2 is positive.

Share price has been sold down in panic, but has bounced back a little for those who realise the overall picture and value the company still has.

Yeah, big yawn to FDA. Who cares its only a short term measure and also unsure how much A2 was willing to commit as volume, which wouldn't have been huge.

[Maxtrade]

Not the outcome many were looking for from the FDA, but given everyone thought it would be a short term supply anyway it wasn't a big loss by this outlook (though of course it dashes the long term potential many hoped A2 would have in the US), though with the international market opening up again, overall sentiment for A2 is positive.

Share price has been sold down in panic, but has bounced back a little for those who realise the overall picture and value the company still has.

The recent rally in ATM was purely associated with the potential of US market entry. Saying that has not come to fruition, makes sense the SP will now decline back to where it was prior to the excitement of pending FDA approval. More than likely a gradual decline to follow on its way back down to $4.80 NZD

[silverblizzard888]

Yeah, big yawn to FDA. Who cares its only a short term measure and also unsure how much A2 was willing to commit as volume, which wouldn't have been huge.

FDA still looking after their own, they have only let in mostly smaller companies in to fill supply. I think we thought that given A2 was supplying milk there, that supplying infant formula wasn't too far of a stretch, turns out it is. Best to focus on easier entry markets and better creativity in expanding the companies product range, production efficiencies and possible acquisitions.

Now to see how management have been handling things when the next set of financials come out at the end of the month.

[silverblizzard888]

The recent rally in ATM was purely associated with the potential of US market entry. Saying that has not come to fruition, makes sense the SP will now decline back to where it was prior to the excitement of pending FDA approval. More than likely a gradual decline to follow on its way back down to $4.80 NZD

Yes likely the case for those who bought in with the hope to see that FDA approval boost, all heads will be looking at the ASX when it opens. With financials coming out soon it should cushion the blow a little with those buying in hope of a good result.

[Ottiehund]

I would be asking why management had never applied for FDA approval for formula anyway when they first established their operations in the US, wouldn't that have been a logical thing to have done as a matter of course (to include your main product in the approvals for a new market)..... seems to me management have dropped the ball again.

[bull....]

I would be asking why management had never applied for FDA approval for formula anyway when they first established their operations in the US, wouldn't that have been a logical thing to have done as a matter of course (to include your main product in the approvals for a new market)..... seems to me management have dropped the ball again.

they probably havnt applied because US market for infant formula is a monopoly controlled by a few players. add to that the regs and tarrifs and wic programme controlled by these monopolies and its probably near on impossible to break into this market for infant formula