© Reuters. FILE PHOTO: U.S. President Joe Biden speaks at the U.S. Naval Academy graduation and commissioning ceremony in Annapolis, Maryland, U.S., May 27, 2022. REUTERS/Elizabeth Frantz/File Photo

(Reuters) – Shares in Bubs Australia surged on Monday after U.S. health authorities approved imports of its infant formula to help address a severe shortage and U.S. President Joe Biden tweeted “the good news”.

Bubs plans to ship at least 1.25 million cans of its baby formula and has 500,000 tins ready for immediate export.

It shares were up 40% or 19 cents at A$0.68 in early afternoon trade, valuing the company at A$417 million ($300 million).

The U.S. baby formula crisis was triggered when Abbott Laboratories (NYSE:) in February recalled dozens of products after customers complained of infants contracting bacterial infections.

The U.S. Food and Drug Administration said on May 19 Abbott was on track to reopen its key baby formula plant in Michigan within one or two weeks.

($1 = 1.3931 Australian dollars)

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