Abbott falls after Reckitt unit hit with $60 mln payout in baby formula case

 Shares of medical device maker Abbott Laboratories ABT.N fall 4.4% to $113.65

** Enfamil baby formula maker Reckitt Benckiser RKT.L has been ordered to pay $60 million to the mother of a premature baby who died of an intestinal disease after being fed the formula

** The verdict by an Illinois state court comes in the first trial out of hundreds of lawsuits claiming that various Enfamil and Abbott's Similac formulas caused the disease known as necrotizing enterocolitis (NEC)

** "After digging deeper into the Reckitt case, we don't think this ruling will result in the worst case scenario (for Abbott) that the initial headline read implies," J.P.Morgan analyst Robbie Marcus said in a note

** EvercoreISI analyst Vijay Kumar calls the Abbottstock move "egregious" suggesting the eventual settlement could be well under $250 mln

https://www.xm.com/research/markets/allNews/reuters/abbott-falls-after-reckitt-unit-hit-with-60-mln-payout-in-baby-formula-case-53791914