Shares of London-listed Reckitt Benckiser (RBGLY) (LON:RKT) tumbled more than 12% Friday, hitting a 10-year low. A US jury found that the company's Mead Johnson unit had to pay $60 million to an Illinois woman.
Reports late Thursday stated Mead Johnson was ordered to pay the mother of a premature baby who died of an intestinal disease after being fed the company's Enfamil baby formula.
In a statement reported by Bloomberg, Reckitt said it stands by the safety of its products, and it does not believe any of them cause NEC. The verdict is the first in hundreds of lawsuits contending that many Enfamil and Abbott Laboratories (NYSE:ABT)' Similac formulas caused NEC.
However, analysts at Bloomberg Intelligence said Mead Johnson "may feel pressure to settle its hundreds of necrotizing enterocolitis (NEC) cases it still faces."
Abbott Laboratories shares are down over 4%, below the $114 mark at the time of writing. Reckitt shares are currently trading at 4,604p, their lowest level since February 2014.