In a recent development, GSK announced on Thursday that it has reached a confidential settlement for yet another lawsuit in California. The lawsuit claimed that GSK’s discontinued heartburn drug, Zantac, was responsible for causing cancer. This settlement is part of a series of agreements aimed at resolving costly litigation.
In a recent statement, the British drugmaker announced that the case, which was scheduled to go to trial on Feb. 20, will now be dismissed. GSK reiterated its stance, emphasizing that it does not accept any responsibility.
In 2019, several manufacturers and pharmacies made the decision to stop selling Zantac due to concerns surrounding its active ingredient, ranitidine. It was discovered that over time, ranitidine could degrade and form a chemical known as NDMA. Research has revealed that higher amounts of NDMA can lead to the development of cancer, although it is worth noting that low levels of this substance can be found in food and water.
Suggested: Controversial proposal to prevent local governments from removing statues
In 2020, the US Food and Drug Administration (FDA) made the decision to remove Zantac and its generic versions from the market. This action resulted in a surge of lawsuits being filed.
In October, GSK was still dealing with approximately 79,000 cases related to Zantac in the United States, with a majority of 73,000 of them being in Delaware.
Multinational companies often find California to be a more demanding legal environment due to the courts’ reputation for being more favorable towards plaintiffs. According to analysts, GSK is expected to incur settlement costs of approximately $5 billion, which are projected to be incurred in the first quarter of 2024.
