Monster Beverage, the largest U.S. energy drink maker by sales volume, rose the most in more than a month after Goldman Sachs said an FDA response to questions over the safety of energy drinks was “encouraging.”
The FDA is employing the help of outside advisers to determine whether the beverages may cause harm when consumed in excess or by those with pre-existing cardiac conditions, it wrote in a letter released Tuesday. Any regulatory outcome is likely to be “benign,” Judy Hong, an analyst with Goldman Sachs, said Tuesday in a note. “Our overall impression of the FDA letter would be that, at this point, the FDA has little reason to think energy drinks are unsafe when used in a responsible manner,” Hong wrote.
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