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Latest development in Zantac patent litigation: GSK (US) wins in the latest trial

Market VisionTuesday, Aug 6, 2024 7:00 am ET
1min read

British drugmaker GlaxoSmithKline (GSK.US) has convinced an Illinois jury that its heartburn drug Zantac was not responsible for a woman’s colon cancer, winning a second trial. Just two months ago, a Chicago jury also found GlaxoSmithKline and Boehringer Ingelheim GmbH not liable for another woman’s illness.

As of publication, GlaxoSmithKline shares were trading slightly lower, down 1.60%, at $38.75, after rising 8.21% since the start of the year.

GlaxoSmithKline, Pfizer (PFE.US), Sanofi (SNY.US), and Boehringer Ingelheim GmbH have all sold Zantac at various times. The drug was first approved by US regulators in 1983 and became the world’s top-selling medicine in 1988, and one of the first to reach $1 billion in annual sales.

The companies have faced thousands of lawsuits in courts across the United States, accused of knowing that the active ingredient in Zantac, ranitidine, can become the cancer-causing chemical NDMA under certain conditions. In 2020, the US Food and Drug Administration (FDA) ordered the companies to remove all ranitidine-containing drugs from the US market.

In June, GlaxoSmithKline and other drugmakers appealed a Delaware decision that allowed more than 70,000 lawsuits claiming that Zantac caused cancer to proceed to trial. That decision had sent GlaxoSmithKline’s shares soaring.

GlaxoSmithKline said in a statement on Tuesday that the Illinois decision “is consistent with the scientific consensus that there is no consistent or reliable evidence that ranitidine increases the risk of any cancer.”

GlaxoSmithKline still faces thousands of cases in the United States. Earlier this year, a judge said GlaxoSmithKline, Pfizer and others must stand trial in Delaware. GlaxoSmithKline has settled some cases but does not admit liability.

However, the Zantac litigation continues to cloud the company’s progress in other areas, including sales of its vaccine for a common respiratory virus that surpassed the sales of a rival vaccine made by Pfizer.

Under the leadership of chief executive Emma Walmsley, GlaxoSmithKline has focused on developing products in its existing areas of strength, such as vaccines. Ms. Walmsley also split GlaxoSmithKline’s consumer health business to allow the company to focus on developing new medicines.

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