Reckitt (RKTLN; A3 Pos, A- S)

Some insightful (& positive) colour from JP analyst on Reckitt (& in extension Abbott). It does trade well wide from equal rated names in € & £ but we still see better opp's for spread pick-up outside it from lower rated but ~staple names (WOW/WESAU, ATDBCN etc.). Credit & equities have traded sideways since the sell-off, a name to watch on positive legal updates.

• JP analyst weighted in (after discussions with neonatologist) on Reckitt (& in extension Abbott) formulas' causing NEC in premature babies. They're key conclusions were 1)formula is necessary for premature babies in certain situations (mother unable, donor supply low) & is used as a last line of use (doctors prescribe with consultation of patients) and help >90% of premature babies & 2) NEC risk can never entirely be eliminated (therefore causation needs to be established in cases of NEC) - particular relevant in premature babies given NEC risk also been associated with gestational age & (low) birth weight.
• The staple nature of formula was highlighted by management in its call 2 weeks ago. Perhaps more interesting was analyst adding doctors they talked to suggested physician societies could come out in support of the formulas given how essential it is (& on fears of liability for themselves).