HomeStock MarketGSK resolves additional California lawsuit over heartburn medication Zantac, per Reuters.

GSK resolves additional California lawsuit over heartburn medication Zantac, per Reuters.

GSK Settles California Lawsuit on Heartburn Drug Zantac

GSK settles another California lawsuit on heartburn drug Zantac

GSK, a British drugmaker, has agreed to settle another lawsuit in California regarding its discontinued heartburn drug Zantac. The settlement aims to end the costly litigation that has been weighing on the company’s shares. The financial details of the settlement were not disclosed, but GSK stated that it was a “non-material” sum.

Citi analysts estimate GSK to settle all Zantac cases for around $5 billion

Citi analysts have estimated that GSK will settle all the Zantac cases against it for a total of approximately $5 billion in the first quarter of 2024. This settlement will clear a significant overhang for GSK’s investment case and remove a distraction for its management. The settlement also includes the dismissal of the trial for the Cantlay/Harper case, which was set to begin on November 13.

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GSK settles three remaining breast cancer cases in California

In addition to the heartburn-related cases, GSK has also settled three remaining breast cancer cases in California related to the same drug. These settlements were related to cases that were due to go to trial in November. GSK still faces a significant number of cases related to Zantac in the United States, with the majority of them in Delaware.

GSK eliminates potential risk and settlement demands

GSK’s decision to settle these California cases before the upcoming Delaware cases eliminates the potential risk of losing the California cases and facing greater settlement demands from the plaintiffs. This strategic move has been welcomed by GSK shareholders and has resulted in a more positive market response, with shares rising over 2% to a 10-month high.

Concerns over NDMA contamination and cancer risk

Zantac, which was first approved in 1983, became a popular heartburn medication and reached annual sales of over $1 billion. However, in 2019, concerns arose regarding the presence of a chemical called NDMA in the drug. NDMA is known to cause cancer in larger amounts. As a result, the FDA pulled all brand name Zantac and generic versions off the market in 2020, leading to a wave of lawsuits against the manufacturers, including GSK.

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GSK’s focus on new vaccine and positive market outlook

The settlement of the Zantac cases removes a significant risk for GSK and allows investors to focus on the launch of GSK’s new vaccine for respiratory syncytial virus (RSV), called Arexvy. Analysts expect strong third-quarter results from GSK based on better-than-expected sales of Arexvy in the United States.


GSK’s settlement of the Zantac lawsuits in California is a positive step for the company as it aims to put an end to the costly litigation and focus on its future endeavors. The settlement removes a major overhang and allows investors to look forward to the launch of GSK’s new vaccine. Despite the challenges faced, GSK remains committed to defending itself in any other Zantac cases that may arise.

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