Yahoo Finance Reckitt Benckiser falls on baby formula recall in U.S.
By Geoffrey Smith
Investing.com -- Shares in Reckitt Benckiser Group (LON:RKT) fell in London on Monday after the company said it will recall more of its plant-based infant formula in the U.S., due to the risk of cross-contamination with dangerous bacteria.
The company said it had withdrawn two batches of its ProSobee 12.9-ounce packs that were made between August and September "out of an abundance of caution", fearing that the batches may contain traces of the Cronobacter sakazakii bacteria.
It added, however, that all of the products being recalled had been through "extensive testing and tested negative for the bacteria" before distribution.
Cronobacter bacteria can cause life-threatening infections or meningitis.
Reckitt described its action as a response to an "isolated situation," which was linked to material from a third party.
"We have taken all appropriate corrective actions, including no longer sourcing this material from the supplier," Reckitt said.
ProSobee is a niche product in the infant formula market, being designed for babies with lactose intolerance. Reckitt owns the brand through Mead Johnson, which it bought for $16.7 billion in 2017. The acquisition, which drew criticism for being over-ambitious, was Reckitt's biggest ever and has failed to add anything to the company's share price. Reckitt stock currently trades over 15% below where it did before the deal.
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