Abbott to extend baby formula rebates until at least Aug. 31

Abbott Laboratories ABT, +1.77% said Friday that it will pay rebates for other infant formula products similar to Similac through August as a result of the current formula shortage caused in part by a recall at its plant in Michigan. The company has infant formula contracts with the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC). The Department of Agriculture on Friday asked Abbott to stop extending the rebates on a month-by-month basis and instead extend them through Aug. 31 or until demand has been met. “That means that the states can plan ahead and they can purchase supply ahead from a range of manufacturers, not just the ones that they have contracts with,” White House press secretary Jen Psaki said Friday. “This means that families…can purchase any available product in the months to come through August, and states and retailers can plan ahead.” Abbott’s stock is down 24.2% so far this year, while the broader S&P 500 SPX, +2.39% has declined 16.0%.