Reckitt shares rise after US jury backs unit Mead Johnson in baby formula case

Reckitt Benckiser

01/09/2026 09:36

Sept 1 (Reuters) - Reckitt's shares RKT.L rose 5% on Tuesday after a U.S. jury sided with its unit, Mead Johnson, in a case alleging that its Enfamil preterm baby formula caused a serious bowel disease, handing the company a boost in the litigation that has weighed on its stock.
The unanimous jury verdict in the U.S. District Court for the Northern District of Illinois was the first bellwether case against Mead Johnson tried in the federal multidistrict litigation, the company said on Monday.
"With this decision, there are currently no outstanding jury verdicts in the overall NEC (necrotizing enterocolitis) litigation against Mead Johnson," Reckitt said.
Reckitt has been considering options for its litigation-hit baby formula business Mead Johnson. Last year, it sold a majority stake in its Essential Home business to private equity firm Advent for $4.8 billion to focus on its core brands.
Shares in the maker of Durex condoms and Lysol cleaning products were up nearly 5% and on track for their biggest one-day percentage gain since July 2025.
Analysts at J.P. Morgan on Tuesday also upgraded their rating on the stock to "overweight" from "neutral", saying the focus ahead should be on the value of the core business and the outlook for Mead Johnson. 
Abbott ABT.N last month reached a $670 million settlement to partially resolve the ongoing NEC litigation over alleged harm linked to its specialty formulas for preterm infants.
"We see rising prospects for resolution on NEC litigation following Abbott’s partial settlement of some NEC cases, which makes the potential for a resolution closer than feared, along with the elimination of the overhang for Reckitt should allow the market to refocus on the core valuation," J.P. Morgan analyst Celine Pannuti said in a note.
Pannuti said a liability for Reckitt could be at the low end or below the $1 billion to $2 billion the brokerage initially expected. 
     

 (Reporting by Yadarisa Shabong in Bengaluru; Editing by Sonia Cheema)
 ((Yadarisa.Shabong@thomsonreuters.com; +91 9742735150;))