Zinger Key Points
- GSK's potential liability from the litigation is likely higher than the $2 billion to $3 billion potential liability assumed by the market.
- Before the Delaware court's decision, approximately 75,000 individuals had filed cases in Delaware.
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On Monday, GSK Plc GSK shares were down after the Delaware State Court ruled that more than 70,000 lawsuits could proceed over its discontinued heartburn drug, Zantac (ranitidine).
The State Court’s decision contradicts the Federal Court’s Multidistrict Litigation ruling under the same legal standard, which dismissed all cases alleging five cancer types in December 2022.
GSK says the litigation in Delaware remains at an early stage, and the ruling, under the Daubert standard, relates only to whether the methodology used by plaintiffs’ experts is sufficiently reliable to allow them to present their evidence at trial.
Related: GSK Concealed Risk Associated With Discontinued Heart Burn Drug Zantac, Whistleblower Lawsuit Claims.
The ruling does not mean the Court agrees with the plaintiffs’ experts’ scientific conclusions and does not determine liability.
“Following the 16 epidemiological studies looking at human data regarding the use of ranitidine, the scientific consensus is that there is no consistent or reliable evidence that ranitidine increases the risk of any cancer,” GSK said.
Citing JP MMorgan analysts, Reuters highlights that following the ruling, GSK’s potential liability from the litigation is likely higher than the $2 billion to $3 billion potential liability assumed by the market.
Sanofi SA SNY said it is disappointed with the State of Delaware court’s decision not to exclude plaintiffs’ experts from the cases and intends to appeal.
There is no reliable scientific evidence that Zantac can cause cancer, just as was held in 2022 by a US federal court in the State of Florida overseeing federal cases in a multidistrict litigation proceeding.
Before the Delaware court’s decision, approximately 75,000 individuals had filed cases in Delaware. Of those filed cases, approximately 25,000 named Sanofi, and almost all of those cases named additional defendants.
Sanofi believes that none of these cases should proceed to trial.
GSK said, “Scientific consensus is that there is no consistent or reliable evidence that ranitidine increases the risk of any cancer and GSK will continue to vigorously defend itself against all claims,”
Price Action: GSK shares are down 7.30% at $41.50 at the last check on Monday.
Photo via Wikimedia Commons
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