Reckitt: benzene detected in Clearasil

(CercleFinance.com) - Reckitt lost ground on the London Stock Exchange on Wednesday following the detection of benzene, a carcinogenic chemical, in its popular acne treatment Clearasil.


According to Valisure, an independent US laboratory specializing in quality control, high levels of benzene were found in benzoyl peroxide-based acne creams.

According to its findings, the benzene level exceeded by 800 times the threshold of two parts per million (PPM) authorized by the US health agency, the FDA.

This discovery prompted Valisure to launch a petition to the health agency to request the recall of the incriminated products, the suspension of their sales and the introduction of new regulations.

Analysts were reminded that Clearasil's US sales represented only £20 million, or 0.15% of Reckitt's total sales, last year.

'Any news of this nature is likely to make investors and analysts nervous, but in this case the financial impact of the information seems particularly low', reacted RBC.

However, since the Roundup and Zantac cases, investors know that manufacturers can face potentially costly lawsuits, which led Reckitt shares to drop 1.6% on the stock market on Wednesday.

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