Formula Maker Rebounds After FDA Defends Against Infant Death Allegations

Shares of Mead Johnson

have been soaring higher today, along with the S&P 500, though for different reasons. The United States Food & Drug Administration and the Centers for Disease Control announced this weekend that health inspectors have completed their testing on all formula samples collected from Mead Johnson and concluded that the Enfamil formula in question was safe.

, the first newborn was preliminarily diagnosed with the rare bacteria, Cronabacteris, after reportedly being fed the Enfamil baby formula made by Mead Johnson. Cronabacteris is said to be an extremely rare bacteria that causes fatal infections on bloodstream and central nervous systems, especially on infants with a weak immune system. Only 50 or so cases have been identified in the last 40 years, according to Wall Street Journal. Wal-Mart

and other retailers including Kroger

and Walgreens

pulled all similarly packaged units of the allegedly tainted Enfamil product, as a precaution. Specifically, Wal-Mart pulled the formula out of more than 3,000 stores over 49 states just a day after it pulled the product from its Lebanon, MO store where the fateful bottle fed to the dead infant had been purchased. After the news of the infant death and the product pulled by many retailers, shares of Mead Johnson were under much pressure, falling over 13% within a few days. Benzinga has been in contact with Chris Perille of Media Relations at Mead Johnson throughout this whole ordeal.

, he assured us that Mead Johnson was confident in the safety and quality of its products. Mead Johnson then

on samples of a batch of Enfamil Premium Newborn powdered formula related to a FDA investigation. Mead Johnson concluded that its new tests did not detect any presence of Cronobacter. These tests over the weekend further and officially confirmed that the Mead Johnson product was safe, and no presence of Cronobacter was detected. This is consistent with the two rounds of testing conducted by Mead Johnson. Benzinga reached out again to Chris Perille for further comments on the safety of its formula and any comments about the retailers' decision for returning it back to the shelves. “Retailers should be confident in the safety of Enfamil Newborn (formula), based on results of tests performed by the FDA, CDC and Mead Johnson,” Perille told Benzinga. “Each chain has its own unique process to work through, but we are aware of a number of national and regional retailers that are releasing the batch they pulled and held back into regular inventory.” Benzinga also reached out to Wal-Mart on its plan to return the formula back to the shelves. The spokesperson told us, “We are currently reviewing and assessing the test results and will work with the FDA, CDC and Mead Johnson to determine the appropriate next steps.” Whenever the retailers return the formula back to the shelves is likely immaterial, as investors find these final results from the FDA and CDC favorable to Mead Johnson. Shares of the nutrition company are trading over 6% higher on the session, currently at $72.95. Follow me on Twitter