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Friday, November 1, 2024

Abbott, Reckitt Stocks Gain as Baby Formula Makers Score Rare Legal Win

 

  • Shares of Abbott Laboratories are rising and those of Reckitt Benckiser are gaining in London trading Friday, a day after a jury cleared the two infant formula makers of liability for a boy's debilitating intestinal disease.

  • The ruling by a Missouri state court jury is a rare legal win for Abbott Laboratories, maker of Similac formula, and Reckitt, which owns Enfamil formula maker Mead Johnson, following their losses in similar trials.

  • UBS called the win "the first victory for the two companies" in a state case involving necrotizing enterocolitis (NEC), a life-threatening disease that affects the colon and intestine.


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