GSK PLC's (LSE:GSK, NYSE:GSK) latest out-of-court Zantac deal is important to the ongoing "overhang" over the investment case, Citigroup said.
The US investment bank reiterated its belief that the FTSE 100 group will ultimately settle the entirety of the Zantac litigation "for $5bn or less" in the first quarter of 2024.
This will "[remove] a still relevant overhang from the investment narrative and a distraction for GSK management".
Yesterday, the drug giant said it struck a deal to stop the high-profile Cantlay/Harper case heading to court in California, dismissing a trial that had been set to begin on 13 November.
GSK said it has also settled the three remaining breast cancer bellwether cases in California and it will be dismissed from these cases, removing all related pre-trial hearings for the company.
These four additional California cases "represent the low-hanging fruit" for settlement, Citi added, with GSK also indicating the settlement amounts for these four cases were insignificant, commensurate with the low weight of supporting data.
Analysts at the bank anticipate GSK will settle the 15 other California bellwether cases "in a similar timely fashion albeit for larger considerations".