A2 Milk hopes to join Bubs in alleviating US infant formula crisis, ASIC sues ANZ and Telix Pharma granted pass through

A2 Milk (ASX: A2M) is rallying in its efforts to join rival Bubs Australia (ASX: BUB), which revealed it will export 27.5 million bottles of infant formula products to the United States to help with a nationwide shortage created by the global pandemic.

Dual-listed A2 Milk submitted an application to the US Food and Drug Administration (FDA) last week and is awaiting approval.

A2 Milk chief David Bortolussi said the New Zealand-based company is prepared to assist the shortage sweeping across the US.

“We stand by to assist the US Government, FDA and our trade partners to help parents and caregivers access high-quality a2 Platinum infant milk formula from New Zealand during this difficult period subject to our stock availability,” he said.

As it stands, A2 Milk currently supplies three of its products, which aren’t infant formula, to 27,000 stores across the US.

The opportunity for Bubs Australia and A2 Milk comes as America’s largest formula manufacturer, Abbott Laboratories, was forced to close its Michigan plant in February after four babies became ill from bacterial infections after consuming its formula – with two of the four later dying.

ANZ

The Australian Securities & Investments Commission (ASIC) has sued Australian and New Zealand Banking Group (ASX: ANZ) for allegedly misleading customers over funds in credit card accounts, leading to inflated fees and interest when the funds were withdrawn.

ASIC deputy chairwoman Sarah Court said while the problems were a result of ANZ system errors, the bank showed a “lack of effort” to fix them.

Ms Court said ASIC is adamant in sending a stern message to all banks that ongoing compliance failures would bring with it significant penalties.

“This is yet another example of customers of a major bank being charged fees we allege they shouldn’t have been, over a lengthy time period, because of a failure to fix system issues,” she said.

The actions are said to have affected over 165,000 ANZ customers, being charged fees and interest for withdrawing or transferring funds from their credit card accounts, based on an incorrect balance displayed on the ANZ website, online banking app and ATMs.

While ASIC alleges the issues occurred between May 2016 and November 2018, the corporate regulator believes ANZ had not adequately resolved the problem and customers were still being affected.

Telix Pharmaceuticals

Telix Pharmaceuticals’ (ASX: TLX) prostate cancer imaging agent Illuccix has received a transitional pass-through payment status in the US from the US Centres for Medicare and Medicaid Services (CMS).

Illuccix is a positron emission tomography (PET) agent, which is used in the diagnostic imaging of men with prostate cancer.

Telix chief executive officer Dr Christian Behrenbruch said the reimbursement milestone is significant and shows the progress the PET agent has made in becoming a tool used in standard of care.

“This diagnostic agent is being rapidly adopted by physicians, who recognise its value in determining the extent of disease and to guide treatment decisions,” he said.

Illuccix is accessible to roughly 85% of PET imaging sites across the US currently and can be ordered by health care professionals in 128 pharmacies.

As for Australia, Illuccix will be available to order for nationwide delivery to all PET imaging sites from July, with Medicare funding set to cover the initial staging of intermediate to high-risk patients suffering with prostate cancer.

Telix Asia Pacific chief executive officer Dr David Cade said the timing was adequate.

“With the Australian launch of Illuccix timed to coincide with the commencement of Medicare funding, Telix and our distribution partner Global Medical Solutions Australia, are pleased to enable broad equity of access to PSMA-PET imaging for men with prostate cancer,” he said.

AGL Energy

AGL Energy (ASX: AGL) faces an uncertain future after the planned demerger of the company fell through on Monday.

AGL chief executive officer Graeme Hunt and chairman Peter Botten are set to depart the company once suitable replacements are found, after a planned shareholder vote.

Also leaving the board will be independent directors Diane Smith-Gander and Jacqueline Hey.

Plans to scrap the demerger was confirmed on Monday by the country’s biggest electricity supplier.

Billionaire Mike Cannon-Brookes, an 11.28% shareholder who was openly against the demerger, declared it was a “great day”, with the news also being recognised by institutional investors Martin Currie and HESTA, all of which are demanding AGL adopt a business plan aligning with the Paris Agreement.

“Having a Paris-aligned plan is incredibly important, because it unlocks a lot of capital for the company, and it also gives a lot of certainty to everybody, from the employees to the rest of the energy market, about what’s likely to happen,” he said.

While ultimately the demerger plans falling through comes at a cost of around $160 million, Mr Cannon-Brookes said the long-term prosperity of the company should be the focus going forward.

“The demerger may have helped potentially on some short-term paths, but it was more a temporary fix than a permanent fix,” he said.

Yancoal

Yancoal’s (ASX: YAL) majority shareholder, China’s state-owned Yankuang Energy, is considering a transaction to acquire enough Yancoal shares to force a takeover.

However, Hong Kong-listed Yankuang will need to increase its lowball offer in order to win unanimous support from the Yancoal shareholders.

The news comes as Yancoal revealed on Monday that on 29 April, Yankuang bid for the remaining 37.74% interest for US$1.8 billion.

Yancoal stated the information arrived last month in the form of an “unsigned, non-binding” expression of interest.

According to 2012 ruling of Australia’s Foreign Investment Review Board (FIRB), Yankuang is required to keep Yancoal listed on the ASX and own less than 70% of its shares.

In order for the privatisation of Yancoal to go ahead, treasurer Jim Chalmers would have to waive the conditions.

As shareholders were confused by the lack of disclosure, Yancoal co-vice chair Gregory Fletcher said the independent directors were continuing to engage with Yankuang in a bid to secure a deal.

“We are still working with Yankuang to provide a transaction that is in the best interests of all shareholders,” he said.

Yancoal is the largest pure coal miner on the ASX, with the business being built around the acquisition of Rio Tinto’s (ASX: RIO) thermal coal assets in NSW in 2017, with some coal assets in Queensland and Western Australia as well.