Another baby formula recall as toxin scare grows

French food company Vitagermine has recalled several batches of baby formula, becoming the latest firm to take precautionary action amid a widening contamination scare.

Vitagermine said on Sunday that its Babybio brand had withdrawn three specific batches of infant formula after new tests, citing updated guidance from health authorities. The recall is limited to Optima 1 formula for newborns.

According to Reuters, the move follows similar recalls this month by major dairy groups including Danone, Nestlé and privately owned Lactalis over possible contamination with cereulide, a toxin that can cause nausea and vomiting.

Investor concern weighed on markets, with Danone shares falling 2.5% and Nestlé down more than 1% in early trading.

French authorities are investigating the deaths of two infants who had consumed baby formula products that were later recalled.