The share prices of Synutra International Inc. rose by 20 percent immediately after China’s Health Ministry gave the company a clean chit of having any link with the milk powder and apparent breast growth in babies.

Parents had filed complaints against the company’s milk powder when three babies developed breasts after consuming the drinking formula made by Synutra. There was a series of tests conducted on samples collected from the milk powder in question and it was found that there was no evidence of any link between the apparent breast growth and the milk powder by Synutra.

The ministry said after testing 14 samples, “Researchers found nothing abnormal about the amount of hormones contained in milk powder from Synutra and other brands.”

If the milk powder did prove to be the cause behind the apparent breast development in babies then it would have been a major setback for the company and also the country. There have been some major product safety incidents in the country lately.

Following the clearance from the Health Ministry the shares of the company soared $2.43 to $14.71 in midday trading.

re prices of Synutra rise after clearance from Health Ministry

The share prices of Synutra International Inc. rose by 20 percent immediately after China’s Health Ministry gave the company a clean chit of having any link with the milk powder and apparent breast growth in babies.

Parents had filed complaints against the company’s milk powder when three babies developed breasts after consuming the drinking formula made by Synutra. There was a series of tests conducted on samples collected from the milk powder in question and it was found that there was no evidence of any link between the apparent breast growth and the milk powder by Synutra.

The ministry said after testing 14 samples, “Researchers found nothing abnormal about the amount of hormones contained in milk powder from Synutra and other brands.”

If the milk powder did prove to be the cause behind the apparent breast development in babies then it would have been a major setback for the company and also the country. There have been some major product safety incidents in the country lately.

Following the clearance from the Health Ministry the shares of the company soared $2.43 to $14.71 in midday trading.