The A2 Milk Company has recalled three batches of baby formula imported to the US due to the presence of a highly potent toxin.
The announcement today caused the Auckland-based company's shares to plummet on the ASX by 12 per cent from $7.27 to $6.49, wiping hundreds of millions of dollars off its market capitalisation.
The company detected cereulide in the A2 Platinum Premium formula for infants 0 to 12 months old after additional testing was needed to comply with New Zealand's food regulatory authority's new guidance.
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Cereulide can cause gastrointestinal symptoms such as nausea and vomiting within 30 minutes to six hours after ingestion.
Symptoms typically ease on their own but infants can be at greater risk of dehydration due to their developing immune systems.
More than 16,428 units of formula were sold in the US through the A2 Milk Company's website, Amazon and Meijer stores.
The A2 Milk Company said there have been no confirmed incidents of any illness or harm.
The product was not available for sale in any other country.
A2 Milk Company chief executive David Bortolussi said the safety and quality of his products were his "highest priority".
"I want to reassure parents and caregivers that our infant milk formula products sold in Australia and New Zealand, China and other markets are not impacted by this isolated recall in the US," he told investors in a statement.
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The A2 Milk Company said there have been no confirmed incidents of any illness or harm.
The formula with the following batch numbers and use-by dates has been recalled:
- Batch number 2210269454 and use-by date 15/07/2026
- Batch number 2210324609 and use-by date 21/01/2027
- Batch number 2210321712 and use-by date 15/01/2027
Affected customers are advised to stop using the product, throw it away or return it to the place of purchase for a refund.
Any baby experiencing the related symptoms should receive medical care immediately, according to the company.
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