GSK PLC (LSE:GSK, NYSE:GSK) shares rose by 3.4% following the announcement of a confidential settlement reached by the UK pharmaceutical group concerning a US lawsuit.
The case claimed that GSK's heartburn medication, Zantac, was responsible for causing cancer.
The lawsuit, filed in California by James Goetz, was scheduled for trial on July 24, potentially marking the first judicial evaluation of Zantac's cancer-related claims. However, with the recent settlement, the case will now be dismissed, GSK confirmed.
In 2019 sales of Zantac were abruptly stopped by some manufacturers and pharmacies due to worries that its active ingredient, ranitidine, could form a carcinogenic chemical called NDMA over time.
Despite the controversy, GSK has consistently refuted claims that Zantac can induce cancer.
GSK shares rose 46.3p to 1,405.30p, adding just under £2 billion to the value of the business.