GSK Resolves Majority of US Zantac Lawsuits, Shares Surge 5% in London
GSK has successfully settled approximately 93% of US lawsuits related to its discontinued heartburn drug Zantac, leading to a 5% rise in its London share price. The company plans to pay up to $2.2 billion in total settlements without admitting liability.
Key Highlights
- GSK’s London-listed shares rose by 5% following the announcement of settlements covering nearly 80,000 Zantac lawsuits in the US.
- The pharmaceutical giant will pay up to $2.2 billion to resolve approximately 93% of pending claims related to allegations that Zantac causes cancer.
- Plaintiff firms involved are unanimously recommending acceptance of the settlement terms to their clients.
GlaxoSmithKline (GSK) shares experienced a notable 5% increase in London trading after the company revealed it had reached agreements to settle the majority of US lawsuits concerning its discontinued heartburn medication, Zantac, which was alleged to cause cancer.
The London-based pharmaceutical company confirmed it had negotiated settlements covering about 80,000 cases, representing 93% of all pending lawsuits, with total payments expected to reach up to $2.2 billion.
Unified Support for Settlement from Plaintiffs
GSK stated, "The participating plaintiff firms are unanimously recommending their clients accept the terms of the State Courts Settlement, anticipated to be fully implemented by the end of the first half of 2025."
Additionally, GSK agreed to a $70 million settlement with laboratory Valisure concerning a separate Zantac complaint, pending final approval from the U.S. Department of Justice.
The company reaffirmed there is no scientific evidence linking Zantac to an increased risk of cancer and emphasized that it has not admitted any liability through these settlements. The settlement costs will be covered from existing resources, with no impact on GSK’s growth strategy or investment plans.
While GSK’s American Depositary Receipts (ADRs) showed minimal change in premarket trading, the stock has gained approximately 9% year-to-date.
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