Mead Johnson (MJN) Shares Rebound; Says Enfamil Tests Show No Signs of Cronobacter
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Mead Johnson (NYSE: MJN) is trading markedly higher Tuesday, following a release early Sunday morning showing that Enfamil was safe following "a new round of rigorous testing."
Following the tests, which were tied to a recent U.S. Food and Drug Administration (FDA) investigation, Mead Johnson said that there was no presence of Cronobacter (Enterobacter sakazakii) in the formula.
Last week, reports sprung up that infected Enfamil PREMIUM Newborn powdered formula was being pulled from Wal-mart (NYSE: WMT) due to reports of an infant death. Others, like SAFEWAY (NYSE: SWY) and Walgreen (NYSE: WAG) also reported removal of the product from shelves.
Mead Johnson shares sank, dropping nearly 20 percent in one-day, which is rare for a $16-$17 billion market cap company.
The stock rebounded when Mead Johnson said that no Enfamil had been recalled, but was undergoing testing.
Currently, shares are up nearly 6 percent ahead of the bell Tuesday, and could move an additional 5 to 6 percent as the stock looks to get back to the mid-$70s level.
Following the tests, which were tied to a recent U.S. Food and Drug Administration (FDA) investigation, Mead Johnson said that there was no presence of Cronobacter (Enterobacter sakazakii) in the formula.
Last week, reports sprung up that infected Enfamil PREMIUM Newborn powdered formula was being pulled from Wal-mart (NYSE: WMT) due to reports of an infant death. Others, like SAFEWAY (NYSE: SWY) and Walgreen (NYSE: WAG) also reported removal of the product from shelves.
Mead Johnson shares sank, dropping nearly 20 percent in one-day, which is rare for a $16-$17 billion market cap company.
The stock rebounded when Mead Johnson said that no Enfamil had been recalled, but was undergoing testing.
Currently, shares are up nearly 6 percent ahead of the bell Tuesday, and could move an additional 5 to 6 percent as the stock looks to get back to the mid-$70s level.
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