Shares slump for drugmaker GSK on Zantac ruling

Shares in British pharmaceutical group GSK tumbled Monday after a US court paved the way for legal action by tens of thousands of patients who allege the heartburn drug Zantac caused cancer.

The over-the-counter treatment, known also by its non-commercial name ranitidine, was manufactured by several rivals including the French group Sanofi and US drugmaker Pfizer before it was withdrawn in 2019.

“GSK disagrees with the ruling by the Delaware State Court and will immediately seek an appeal,” it said in a statement over the weekend, noting the decision was contrary to a federal court ruling in 2022.

“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,” it said.

GSK shares slumped 9.2 percent to £16.04 in morning deals, topping the fallers on London’s FTSE 100 index, which was up slightly overall.

The US court decision “has thrown a significant spanner into the works by giving the green light for 70,000 cases to go forward and by allowing expert witnesses to testify in court that the drug may cause cancer”, AJ Bell analyst Russ Mould said.

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GlaxoSmithKline

Sanofi

Pfizer

AFP

(NAMPA / AFP)