#Abbott #Reckitt #Stocks #Gain #Baby #Formula #Makers #Score #Rare #Legal #Win
Key takeaways
- Shares of Abbott Laboratories and Reckitt Benckiser Corp rose in London trading on Friday, a day after a jury acquitted the two companies that make infant formula of responsibility for the boy’s debilitating intestinal disease.
- The Missouri state court jury’s ruling is a rare legal win for Abbott Laboratories, maker of Similac, and Reckitt, which owns Enfamil maker Mead Johnson, after losses in similar trials.
- UBS described the win as “the first victory for both companies” in a government case involving necrotizing enterocolitis (NEC), a life-threatening disease that affects the colon and intestines.
Abbott Laboratories (ABT) shares rose and Reckitt Benckiser shares rose in London trading on Friday, a day after a jury acquitted the two companies that make infant formula of responsibility for the boy’s debilitating intestinal disease.
The ruling by a jury in a Missouri state court on Thursday is a rare legal victory for Abbott Laboratories, maker of the Similac formula, and Reckitt, which produces the Mead Johnson formula, after they lost in similar trials involving necrotizing enterocolitis (NEC), a fatal disease. life. A threatening disease that affects the colon and intestines.
“The decision reinforces what we, the medical community, and regulatory agencies have said: that premature infant feeding products are safe, and there is no reliable scientific evidence that they cause or contribute to causing NEC,” Abbott said in a statement. Investopedia.
Rickett echoed those comments in a press release on Thursday.
“Today’s ruling is consistent with the scientific consensus that there is no established causal relationship between the use of specialized hospital feeding products for preterm infants and NEC, and that when human milk is not available or when supplementation is necessary, specialized hospital feeding products for premature infants can provide the essential, “Life-saving nutrition,” Rickett said.
Rare legal victory for formula makers in NEC jurisdiction case
“This is the first victory for the two companies in the NEC jurisdiction case after Abbott was ordered to pay $495 million in July in the Jill case and Reckitt Mead Johnson was ordered to pay $60 million in March in the Watson case,” UBS analysts wrote on Friday.
Reckitt shares rose 8% in London trading on Friday but have lost 7% this year. Abbott shares rise 5% and rise 8% in 2024.
#Abbott #Reckitt #Stocks #Gain #Baby #Formula #Makers #Score #Rare #Legal #Win
