Baby Formula Startup Seeks To Compete Abbott With 15% Market Share: Report

Author: Vandana Singh | August 11, 2022 07:40am

Wall Street Journal reported that baby formula startup ByHeart is seeking to register two additional facilities with the FDA to increase its production as the U.S. continues to face shortages.
Co-founders Ron Belldegrun and Mia Funt said that if the agency completes the registration, ByHeart could expand manufacturing and operations well before the company's original plans.
A spokeswoman for the FDA said the agency is reviewing several such requests from formula manufacturers seeking to expand. The FDA would oversee such facilities.
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According to the WSJ report, ByHeart's expansion could position it to potentially gain a 15% share of the baby-formula market, led by Abbott Laboratories (NYSE:ABT) and Reckitt Benckiser Group (OTC:RBGLY), which controls roughly 80% of the market.
The crisis continues, despite government and manufacturers' efforts to boost supplies. In July, the availability of powdered baby formula dropped to its lowest level since the shortage began early this year, according to market-research firm IRI.
ByHeart said it plans to spend at least another $30 million increasing its manufacturing capabilities over the next two years, and the investments will help it move into retail stores.
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