Citibank analysts still expect the outcome of the Daubert (evidence admissibility) hearings into Zantac to be favourable to the defendants including GSK PLC (LSE:GSK, NYSE:GSK) and Sanofi SA after the initial proceedings.
“We anticipate investor’s expectations for liabilities to be meaningfully pared back pending the anticipated Daubert ruling,” the US bank's analysts said in a note.
Action is underway in Florida with a Federal judge assessing whether ranitidine, the generic name of Zantac, caused patients to develop one of five types of cancer - bladder, esophageal, gastric, liver or pancreatic.
“We expect a further reduction in the number of designated cancers in the MDL to c2 (versus five currently) as the most likely outcome,” the Citi analysts said, with a ruling expected as early as November.
GSK is being sued alongside Sanofi, Pfizer and Boehringer Ingelheim.
Haleon PLC was part of GSK at the time the incidences occurred but the spin-off company believes it is outside any legal action surrounding Zantac, something that GSK disputes.
In afternoon trading, GSK rose 0.5% to 1,370p, while Haleon shares edged up 0.1% at 269p.