GSK, a British pharmaceutical company, has announced a confidential settlement in the David Browne case filed in California state court. This case pertains to allegations that the heartburn medicine Zantac causes cancer. While no specific details of the settlement were provided, GSK confirmed that the trial set for February 20 will now be dismissed.
In a statement, GSK expressed its desire to avoid the distraction and lengthy litigation associated with this particular case. However, the company clarified that it will continue to defend itself in all other Zantac-related lawsuits.
This settlement marks the latest in a series of similar agreements made by GSK in response to claims filed against the company in California state court. In fact, the company settled its first such case in June, leading to a more than 5% increase in shares. Analysts at Citi deemed this settlement significant, stating that it removed one of the strongest cases against GSK from consideration and set a precedent that may benefit future cases.
Earlier in December 2022, a U.S. judge dismissed numerous Zantac lawsuits, which numbered in the tens of thousands. The judge ruled that there was insufficient scientific evidence to support the claim that Zantac’s active substance, ranitidine, was carcinogenic.
In 2020, the Food and Drug Administration (FDA) requested the removal of Zantac and its generic versions from the market after detecting low levels of a chemical called NDMA in the drug. The FDA identified NDMA as a “probable human carcinogen.” However, pharmaceutical companies, including GSK, have maintained that Zantac does not cause cancer.
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