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GSK plc faces scrutiny in Zantac litigation review

EditorTanya Mishra
Published 28/08/2024, 12:42
GSK
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GSK plc (LSE/NYSE: LON:GSK), a global biopharmaceutical company, today acknowledged the Delaware Supreme Court's decision to review a lower court ruling regarding the admissibility of expert testimony in the ongoing Zantac (ranitidine) litigation. This rare interlocutory review reflects the case's exceptional circumstances, as the company contends with claims over the drug's alleged cancer risks.

The controversy centers on the Delaware Superior Court's prior decision, which permitted plaintiffs' expert evidence to be presented at trial under the Daubert standard. This standard, stemming from a landmark U.S. Supreme Court case, sets the criteria for expert testimony in federal courts, focusing on the methodology's reliability and relevance.

GSK maintains that there is no reliable scientific evidence linking ranitidine to an increased risk of cancer. The company cites 16 epidemiological studies conducted since 2019, involving over a million patients, which support their stance.

As the Delaware litigation continues alongside the Supreme Court's review, GSK plans to assert additional defenses. These include challenging plaintiffs' proof of ranitidine use and cancer diagnosis, as recently mandated by the court.

GSK's commitment to vigorously defend itself aligns with its broader mission to advance health by uniting science, technology, and talent against disease.

The company's response to this legal challenge is part of its strategy to manage the litigation effectively for the benefit of its stakeholders.

This news is based on GSK's recent statement and serves to inform investors and the public of the latest developments in the Zantac litigation. The outcome of the Supreme Court's review could have significant implications for the case and GSK's legal strategy moving forward.

In other recent news, GlaxoSmithKline (NYSE:GSK) has been making significant strides in its operations. The company reported a robust Q2 performance, with a 13% increase in sales to £7.9 billion and a 21% rise in core operating profit to £2.5 billion, leading to an upgraded full-year guidance.

The FDA has also granted Breakthrough Therapy Designation to GSK's investigational drug GSK5764227 for the treatment of extensive-stage small-cell lung cancer. This designation is based on early clinical evidence suggesting promising results.

On the analyst front, Deutsche Bank (ETR:DBKGn) and Berenberg reaffirmed their Buy ratings on GSK, while JPMorgan (NYSE:JPM) maintained its Underweight rating on the pharmaceutical giant.

The FDA approved the expanded use of Jemperli, a key product in GSK's immuno-oncology portfolio, for the treatment of endometrial cancer. This approval was based on the RUBY phase III trial results, demonstrating a significant reduction in the risk of death when Jemperli was used in combination with chemotherapy.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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