Mead Johnson shares sink after Wal-Mart recall

Reuters News
Posted: Dec 22, 2011 11:53 AM
Mead Johnson shares sink after Wal-Mart recall

(Reuters) - Mead Johnson shares fell 8 percent on Thursday following the recall of some of its Emfamil baby formula from Wal-Mart Stores Inc after the death of a Missouri infant.

The infant tested positive for Cronobacter, a bacteria that has sometimes been linked to rare illnesses in newborns.

Walmart began the process of voluntarily removing the product -- Enfamil Newborn in a 12.5-ounce can -- from more than 3,000 U.S. stores late Monday night, a spokeswoman said.

Mead Johnson said it was confident that all of its products are safe when prepared, stored and used according to the label instructions.

"The batch of our product used by the child's family tested negative for Cronobacter when it was produced and packaged, and that has been reconfirmed from our batch records following this news," Mead Johnson spokesman Chris Perille said.

Mead Johnson shares were down $6.45, or 8.4 percent, at $70.03 on the New York Stock Exchange.

(Reporting By Martinne Geller in New York; Additional reporting by Lauren Keiper in Boston and Brad Dorfman in Chicago; Editing by Lisa Von Ahn)