Synutra denies formula link to premature development in babies

Shares in Chinese baby formula producer Synutra International (SYUT.NASDAQ) fell nearly 27% after reports in Chinese media of premature development in babies fed on the company’s formula, Bloomberg reported. Three girls in Wuhan who had been fed with the formula were said to have abnormally high levels of the hormone estradiol in their bodies. Synutra denied the report and threatened legal action to protect its brand, and said it was working with authorities to prove the safety of its products. "We have participated in exhaustive quality testing at all required government levels, including with the relevant state agencies and industry groups," said Liang Zhang, Synutra’s chairman and CEO.