From Morningstar: 2024-11-04 05:37:32

Reckitt’s share price surged 10% after a victory in NEC litigation linked to its preemie formula. This win in Missouri, known for large jury awards, could lead to reduced damages and impact ongoing cases. The formula accounts for minimal sales but is crucial for preemies without enough breast milk access.

The company confirms a fair value estimate of £65.00 and a wide moat rating. A potential settlement could range from $1-3 billion, but this outcome may restore investor confidence and lower the risk. The transformation journey and divestment plans could generate shareholder value for Reckitt.

The FDA, CDC, and NIH stated there’s no conclusive evidence linking preemie formula to NEC. The critical nature of the product when human milk is insufficient was emphasized. Reckitt’s future may be impacted by this development and potential divestment deal, but uncertainties remain.



Read more at Morningstar: Reckitt: Litigation Win Will Restore Investor…