GSK Plc reached a settlement for another US lawsuit claiming the drugmaker’s blockbuster heartburn medication Zantac causes cancer.
(Bloomberg) — GSK Plc reached a settlement for another US lawsuit claiming the drugmaker’s blockbuster heartburn medication Zantac causes cancer.
The UK pharmaceutical company didn’t disclose the value of the settlement in a statement Wednesday. The case, which was scheduled to begin trial in California state court on Nov. 13, will be dismissed, it said. GSK shares rose as much as 2.3% in early London trading before paring gains.
A number of former Zantac users have sued GSK after the drug was found in 2019 to contain a probable carcinogen called NDMA. The US Food and Drug Administration forced Zantac and its generic versions off the market in 2020 after determining that NDMA hadn’t been introduced into the drug, but formed in the medication itself, either during storage or at elevated temperatures.
The company also settled three breast-cancer bellwether cases in California related to Zantac, it said, without giving details. GSK will be dismissed from these cases. It follows the first Zantac-related settlement that GSK reached in June, heading off a case that was also due to go to trial in California.
Read More: Zantac’s Maker Kept Quiet About Cancer Risks for 40 Years
The settlements “reflect the company’s desire to avoid the distraction related to protracted litigation,” it said. “GSK does not admit any liability in the settlements and will continue to vigorously defend itself based on the facts and the science in all other Zantac cases.”
More than 70,000 people from around the US have filed claims in Delaware state court against GSK and other pharmaceutical businesses.
Analysts at Barclays said they are not expecting any further updates on Zantac litigation for the rest of 2023, clearing the way for strong third-quarter results. Citi analysts reiterated an expectation that all Zantac litigation will be settled for $5 billion or less in the first quarter of next year.
(Corrects to remove reference to Florida cases.)
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