It will be interesting to see if there is a short term impact to Reckitt Benckiser shares following the announcement of a recall of Nurofen plus following Seroquel XL 50mg being found in 3 packs.
Taken from the following article: www.bbc.co.uk: Investigations into the Nurofen Plus mix-up begin:
- "Seroquel XL is a prescription-only anti-psychotic drug used to treat several disorders including schizophrenia, mania and bipolar depression"
- "Thousands of 32-tablet packs are in the affected batches - numbered 13JJ, 57JJ and 49JJ."
- "Each of the affected batches contains between 4,000 and 7,500 packs - around half a million in total. But it is known that not all the packs are affected."
- "..."serious investigations" were under way to establish how the mix-up occurred, especially as Seroquel XL is manufactured by another drug firm, AstraZeneca."
As a consumer product company with potential access to new markets in China, India etc. Reckitt Benckiser is on my watchlist of candidates to add to the portfolio given the geographic shape of its current and potential sales; and its product portfolio of consumer and medicinal brands. The company has also maintained a progressive dividend policy to match its growth although, it has to said that this is historic and there have been recent doubts about future growth particularly given the recent loss of Bart Becht, the Chief Executive of the past 14 successful years.
Hopefully, the pro-active approach will close out this issue without any consumer being affected or any damage to the Nurofen brand which to be fair is a victim given that tablets have been substituted rather than anything contained within the actual manufacturing process.
As such, I will continue to watch for an opportunity to add it to the portfolio.
Related article links:
- www.bbc.co.uk: Investigations into the Nurofen Plus mix-up begin
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