Biden tweet adds boost to Australian formula maker’s 77% surge

Bloomberg: Shares of infant formula maker Bubs Australia Ltd soared the most in more than five years after the Sydney-based company struck a deal to ship its product to the US to ease a severe shortage.

The stock surged as much as 77% in Sydney on Monday after the Food and Drug Administration said the company would provide the US with at least 1.25 million cans of formula. President Joe Biden had earlier tweeted the news over the weekend, citing the equivalent volume in bottles.

The president’s tweet “should be helpful for the company’s marketing efforts, help position the brand as a safe and reliable foreign IMF manufacturer, and should be indirectly positive for sales of toddler formula,” Citigroup Inc analysts said in a note on Monday.

New Zealand formula maker A2 Milk Co also benefited from the news, jumping as much as 13% in Wellington.

US regulators have been taking steps to increase formula supplies as a shortage leaves shelves empty across the country. Bubs Australia, which has a market value of about A$420 million ($301 million), said it was working closely with the US to determine how to deliver the products as quickly as possible, according to a statement.