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

Core Insights - Abbott Laboratories and Reckitt Benckiser experienced a rise in their stock prices following a jury's decision that cleared them of liability in a case related to a boy's intestinal disease [1][2][3] - The Missouri state court jury's ruling is considered a significant legal victory for both companies, especially after previous losses in similar cases involving necrotizing enterocolitis (NEC) [3][6] - UBS analysts noted that this ruling marks the first victory for Abbott and Reckitt in a NEC state case, contrasting with previous financial penalties they faced [6] Company Performance - Abbott's stock rose by 5% following the verdict and has gained 8% in 2024 [6] - Reckitt's shares increased by 8% in London trading but have seen a 7% decline year-to-date [6] Industry Context - Both companies emphasized that the decision aligns with the scientific consensus that there is no established causal link between their specialized preterm nutrition products and NEC [4][5] - The ruling supports the notion that specialized preterm hospital nutrition products are safe and essential for infants when human milk is unavailable [5]