GSK Settles Another Zantac Case in California — Update

By Michael Susin

GSK said it reached a confidential settlement in the David Browne case filed in California state court related to claims that heartburn medicine Zantac causes cancer, without providing further details.

The British pharmaceutical major said Thursday that the case was set to go to trial on Feb. 20, and instead will now be dismissed.

"The settlement reflects the company's desire to avoid the distraction related to protracted litigation in this case", it said.

The company said it will continue to defend itself in all other Zantac cases.

The agreement is the latest of a number of settlements related to claims made against GSK filed in California state court. The company settled its first such case in June, with plaintiff James Goetz, prompting shares to rise more than 5%. Analysts at Citi said the settlement took one of the strongest cases against GSK off the table and created a precedent that could help with future cases.

In December 2022, a U.S. judge dismissed a series of lawsuits--which were measured in the tens of thousands--that alleged Zantac could cause cancer. The judge said there wasn't any scientific evidence to support the claim that the drug's active substance ranitidine was carcinogenic.

The Food and Drug Administration requested Zantac and its generic versions be pulled off the market in 2020 after it found low levels of a chemical called NDMA, which it described as a "probable human carcinogen," in samples of the drug. Pharmaceutical companies, including GSK, have said that the drug doesn't cause cancer.

Write to Michael Susin at michael.susin@wsj.com

(END) Dow Jones Newswires

February 01, 2024 03:42 ET (08:42 GMT)

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