GSK PLC (LSE:GSK, NYSE:GSK) and Haleon PLC (LSE:HLN, NYSE:HLN) issued separate statements today after their stock was hit by lawsuits claiming GSK's acid indigestion drug Zantac can cause cancer.
GSK lost nearly 8% of its market value yesterday, with its share price tumbling from 1,527.2p to 1,409.5p, wiping billions of pounds from its £59.24bn market cap.
The pharma group vehemently defended its position and denied there were any links between Zantac, also known as ranitidine, and cancer.
GSK, which launched the drug under its original guise of Glaxo Holdings in the late 1980s, said it will “vigorously defend itself against all meritless claims”. It said: “The overwhelming weight of the scientific evidence supports the conclusion that there is no increased cancer risk associated with the use of ranitidine.”
In April 2020, the US Food and Drug Administration withdrew Zantac from the market.
The FDA and European Medicines Agency concluded that there was “no evidence of a causal association” between Zantac and cancer, GSK said in a statement.
About 3,000 personal injury cases have been filed in federal and state courts against GSK, together with claims registered in a court census concerned with the Zantac proceedings.
GSK also faces more than 100 personal injury cases pending in Canada and a class action in Israel.
A trial in California is due to start in February 2023, with trials in Illinois due to begin on 22 August and next February.
The main litigation cases have pursued links with the drug and bladder, oesophageal, gastric, liver and pancreatic cancer, with additional cancers being pursued in state courts.
Haleon, which was demerged from GSK in July and focuses on over-the-counter products vitamins, pain relief, oral health and digestive health, noted market speculation had impacted its share price and said it was “not a party to any of the Zantac claims” and “never marketed Zantac in any form in the US”.
Haleon also said it was “not aware of any material developments in relation to the Zantac litigation since the Haleon prospectus was issued on 1 June 2022”.
It said it was “not primarily liable for any [over the counter] or prescription claims”, but that it “may be required to idemnify GSK and/or Pfizer” if they are unable to recover costs or damages from any other party.
Having proved the initial launchpad for Glaxo's subsequent global expansion in the late 1980s and 90s, Zantac was marketed over the counter in the US by a joint venture with Warner Lambert.
Then Warner Lambert retained the exclusive rights to the product, before the company was bought by Pfizer in 2000, meaning Pfizer marketed the drug from 2000 to 2006, after which Johnson and Johnson bought Pfizer’s over the counter business.