GSK Settles Another California Lawsuit On Heartburn Drug Zantac Causing Cancer, Second Within A Month

Thursday, GSK Plc GSK agreed to confidentially settle another lawsuit in California that had alleged its heartburn drug Zantac (ranitidine), now discontinued, caused cancer.

The case, which was set to begin trial on April 2, will be dismissed.

GSK does not admit to any liability in this settlement with Boyd/Steenvoord.

Earlier this month, GSK reached a confidential settlement with David Browne, resolving the case he filed in California state court. 

The case was set to go to trial on February 20 and, instead, will now be dismissed, the company said in a statement.

In October, GSK reached a confidential settlement in the Cantlay/Harper case filed in California state court. The case, which was set to begin trial on November 13, was dismissed.

Per the SEC filing, the company has resolved the final three breast cancer bellwether cases in California. 

Consequently, GSK will be exempted from these cases, alleviating the need for further pre-trial hearings.

In June, GSK reached a confidential settlement with James Goetz, and the case he filed in California state court, set to begin trial on July 24, 2023, was dismissed. 

Zantac, approved in 1983, was one of the top-selling medications in 1988 and one of the first to exceed $1 billion in annual sales.

Zantac sales were suspended by some manufacturers in 2019 due to concerns that its active ingredient, ranitidine, could degrade to form a carcinogenic chemical called NDMA.

The FDA pulled all remaining brand names, Zantac, and generic versions from the market in 2020.

Reuters notes that California is generally seen as a more challenging legal environment for multinational companies, as courts are known to be friendlier to plaintiffs.

Analysts had estimated total settlement costs for the company to be around $5 billion. GSK still needs to quantify the costs of these settlements.

Price Action: GSK shares are up 1.02 at $42.77 during the premarket session on the last check Thursday.

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