Little Less Heartburn For GSK: Settles Another California Lawsuit On Zantac

GSK plc GSK has 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, will be 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.

Last August, 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.

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.

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, will be dismissed. 

Citing Citi analysts, Reuters noted an estimate that GSK will settle all the Zantac cases against it for a total of about $5 billion in the first quarter of 2024, clearing what it called a "still relevant" overhang for its investment case and a distraction for management.

Price Action: GSK shares are up 0.72% at $37.61 during the premarket session on the last check Wednesday.