Sanofi, GSK Shares Jump After Zantac Lawsuit Dismissal
December 07 2022 - 4:28AM
Dow Jones News
By Cecilia Butini
Shares in pharmaceutical companies Sanofi SA and GSK PLC jumped
in opening trade on Wednesday after a U.S. judge dismissed a series
of lawsuits around a heartburn treatment that both companies had
marketed.
The lawsuits, which were counted in the tens of thousands,
alleged that the drug, named Zantac, could cause cancer. The judge
concluded on Tuesday that there was no scientific evidence to
support the claim that Zantac's active substance, called
ranitidine, was in fact carcinogenic.
At 0830 GMT, shares in Sanofi traded 8.2% higher at EUR92.38,
while GSK's were up 12% at 1,559.80 pence.
Sanofi, GSK, but also Pfizer Inc. and Haleon, GSK's former
consumer-health division, could have all faced liabilities from the
litigation, since they all marketed the drug at some point during
its existence on the market.
Tuesday's ruling is multidistrict, meaning that it doesn't apply
to single state courts, where more complaints are still active. But
the decision bodes well for those too, according to Jefferies
analysts, since historically many state decision tend to follow
from multidistrict ones. "Plus, economic motivation for plaintiff
lawyers is likely now dented," the analysts said in a note.
Still, the decision could be appealed, and while the news should
be able to lift up shares following some Zantac-related declines in
the past months, there is likely to still be volatility until the
issue is fully resolved, analysts at Shore Capital said in a
note.
Write to Cecilia Butini at cecilia.butini@wsj.com
(END) Dow Jones Newswires
December 07, 2022 04:13 ET (09:13 GMT)
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