Shares of Mead Johnson (NYSE:MJN) surged nearly 5% on Tuesday after the company said new tests prove its baby formula Enfamil was not responsible for the death of a newborn boy last weekend.
The company saw its shares tumble some 15% last week after Wal-Mart (NYSE:WMT) pulled a batch of the baby formula from more than 3,000 stores after a baby boy in Missouri died from a rare bacterial infection shortly after taking the formula.
A Wal-Mart spokeswoman said last week that the company was pulling the formula out of caution, and that it would possibly return the product to shelves if it proved safe.
Despite ongoing investigations into the death by U.S. officials, Mead Johnson said it tested the product this weekend and found it completely safe, the same results the batch had before it was originally sent out to Wal-Mart.
“Based on both sets of tests, Mead Johnson can say with confidence that Enfamil Premium Newborn formula, like every infant formula the company produces, is safe,” the company said in a statement.
The U.S. Food and Drug Administration and Centers for Disease Control are trying to determine the origin of the bacteria involved in the Missouri case and are expected to be testing a variety of possible environmental sources.
Mead Johnson, which said it wanted to conduct its own tests to quickly reassure parents and health care professionals the safety and quality of its products, said its infant formulas undergo more than 2,300 quality tests and checks to ensure they meet or exceed all standards set by regulatory bodies, including the World Health Organization and the FDA.