A US jury has ruled in favor of Reckitt Benckiser’s baby milk unit, Mead Johnson, in a high-profile case involving allegations that its Enfamil formula was linked to necrotising enterocolitis (NEC), a serious bowel disease affecting premature infants. The verdict, delivered in the Northern District of Illinois, came in the first federal bellwether trial concerning Mead Johnson and follows previous decisions that have also supported the company.
The case centered on Alexis Inman’s infant son, Daniel, who was born prematurely in 2020 at 29 weeks and weighed under two pounds. Daniel initially received breast milk before being fed Enfamil Premature, a cow’s milk-based formula. He later developed NEC and died in hospital. The lawsuit claimed the formula increased the risk of NEC and that doctors were not adequately warned about potential hazards.
Reckitt expressed condolences to the Inman family, stating that the verdict confirms Mead Johnson’s position that scientific evidence does not support the claims made in this or related litigation. The company emphasized its rejection of any suggestion that its products cause NEC and affirmed plans to continue defending against similar lawsuits to protect the health of premature babies.
With this ruling, Reckitt announced there are no remaining jury verdicts outstanding in the broader NEC litigation against Mead Johnson. Reckitt, headquartered in Slough, acquired Mead Johnson for $16.6 billion in 2017 and has since been considering selling the unit to focus more on its core brands. The company recently sold a majority stake in its Essential Home division, which includes brands such as Cillit Bang and Air Wick, to private equity firm Advent International for $4.8 billion.
The verdict had an immediate effect on Reckitt’s stock, which rose by as much as 5 percent following the decision, closing up 4.4 percent at £53.60, though shares remain down nearly 20 percent for the year due to the impact of the litigation. Analysts at JP Morgan upgraded their rating on Reckitt shares to “overweight” from “neutral,” highlighting improved prospects for resolving the NEC legal issues. Celine Pannuti, a JP Morgan analyst, noted that Abbott Healthcare, a US rival facing similar claims, had recently reached a $670 million settlement to partially resolve NEC lawsuits, which may signal a broader trend toward settlement.
Reports indicate that Reckitt’s positive legal outcome may accelerate plans to sell Mead Johnson, with France’s Danone among the potential buyers being considered. The ruling could help clarify risks around the litigation, potentially enhancing the unit’s attractiveness to prospective purchasers.