Abbott Recalls Powder Formulas Manufactured in Michigan Unit

Abbott (ABT) is recalling all the powder formulas, including Similac, Alimentum and EleCare, that were manufactured at Abbott Nutrition’s Sturgis, Michigan, facility due to the presence of Cronobacter sakazakii and Salmonella Newport infections. 

The step has been taken based on complaints of four infant illnesses from three states, one of which has died. The U.S. Food and Drug Administration is investigating the matter and has initiated an onsite inspection at the facility.

Notably, the regulator said to have found several positive Cronobacter sakazakii results from environmental samples. Also, a review of the firm’s internal records reflects the presence of the germ in the environment and that Abbott destroyed some products due to the presence of Cronobacter. 

The company said that it did not detect the presence of germs in any distributed product, however, it still continues to test. Also, it assured that several quality checks are run before a batch of infant formula is sent out.

Meanwhile, retained samples related to the three complaints about Cronobacter sakazakii and the sample related to the complaint for Salmonella Newport have been tested negative.

Dividend History

Abbott’s dividend history remains impressive. ABT has been increasing its quarterly dividend once each year in January with the trend continuing in 2022 as well. The company has raised its quarterly common stock dividend to $0.47, up 4.4% from the previous payout, which is payable on February 15.

Positive Sentiment

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Abbott, as 14.6% of investors on TipRanks increased their exposure to ABT stock over the past 30 days.

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