PBM Products, the producer of own label formula, has responded formally to the lawsuit filed by Bristol-Myers Squibb subsidiary Mead Johnson & Co, producer of Enfamil LIPIL Infant Formula, alleging trade dress infringement, false designation of origin, and unfair competition.

In its response, filed at the United States District Court, Southern Indiana District, PBM denied all allegations of trade dress infringement, false designation of origin, and unfair competition related to the introduction of its Member's Mark Infant Formula.

PBM entered into a partnership with Wal-Mart-owned Sam's Club in 2005 to launch the Member's Mark brand which was designed to offer the same quality and level of listed nutrients as Enfamil LIPIL at a lower price.

PBM stated that the decline in Enfamil LIPIL sales did not arise from any misconduct on PBM's part and stemmed from Mead's failure "to price its product competitively".

"It's clear that parents who shop at Sam's Club stores recognise a good deal on infant formula when they read the nutritional information on labels and compare pricing," said PBM managing director Paul Manning. "Moms and dads realise that, given the federal regulations that govern infant nutrition, price, and not brand, is what really matters when it comes to buying baby formula."