Sanofi Stock Is Trading Higher Today - Here's Why

Sanofi SA SNY announced that the tribunal dismissed Boehringer Ingelheim's indemnification claim against Sanofi in an International Chamber of Commerce dispute in cancer lawsuits linked to heartburn drug Zantac (ranitidine) in the United States.

The tribunal also confirmed that Sanofi shall not be liable to indemnify Boehringer Ingelheim for any potential losses concerning the ongoing Zantac litigation in the U.S.

Initially marketed by a forerunner of GSK plc GSK, the medicine has been sold at different times by companies including Pfizer Inc PFE, Boehringer and Sanofi, and several generic drugmakers.

The plaintiff dismissed GSK's first scheduled Zantac related-cancer trial, noting that it did not settle the claim and has not paid anything in exchange for the voluntary dismissal.

The company has approximately 3,000 lawsuits against it. Sanofi stated that it remains confident that the defense of the underlying U.S. Zantac litigation is solid. 

The company noted that, in December 2022, a U.S. federal court ruled that plaintiffs had no reliable scientific evidence that ranitidine could cause any of the plaintiffs' alleged injuries.

More than 77,000 people have Zantac lawsuits pending in Delaware state court alleging the widely used heartburn drug contains a known carcinogen called N-nitrosodimethylamine. Plaintiffs in the litigation ingested Zantac and developed various forms of cancer.

Price Action: SNY shares are up 2.86% at $53.53 during the premarket session on the last check Tuesday.