NEW YORK (AP) — Shares of Chinese nutritional products maker Synutra International Inc. fell Thursday after the company said two children became sick after taking its powdered milk formula, and one of the children died.
The company said four-month-old twins in Jiangxi province had been taking its formula for weeks before becoming sick. It said one of the children died of dehydration Jan. 7, and the other child later recovered. Synutra said it does not believe its formula made the children sick, and said it is not recalling any products. The company said its products are made under strict safety standards and are tested before they are shipped.
The dairy industry in China has come under fire recently because of tainted products. In December, a government safety industry said two dairy producers were selling milk that had high levels of a toxin that can cause cancer. Milk produced by industry giant Mengniu Dairy Group and the Fujian Changfu Dairy Industry Group had high levels of aflatoxin, which is produced by a fungus that grows on grains and legumes. The toxin turns up in the milk of animals that eat crops that have been affected by the fungus.
Synutra stock lost 49 cents, or 10.4 percent, to $4.24 in afternoon trading. Earlier shares touched a 52-week low of $3.90. They have traded as high as $13.35 a year ago.