(Reuters) -Perrigo said on Wednesday it has initiated a strategic review of its infant formula business as the consumer health company shifts its focus to higher-margin branded products.

The company is a top supplier of store-brand baby formula, which is sold under retailers’ labels and can cost less than branded products.

The infant formula unit has struggled with quality concerns at its manufacturing facilities that posed contamination risks.

In 2023, Perrigo’s Wisconsin unit received a warning letter from the U.S. health regulator to correct its manufacturing processes to better catch bacterial contamination.

The strategic review will focus on increasing cash flows, reassess a previously announced $240 million investment in the unit and evaluate other potential options, Perrigo said

See Full Page