Citibank said it still expects the outcome of the Daubert (evidence admissibility) hearings into Zantac to be favourable to the defendants including GlaxoSmithKline and Sanofi (EPA:SASY) after the initial proceedings.
“We anticipate investor’s expectations for liabilities to be meaningfully pared back pending the anticipated Daubert ruling,” the US bank 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,” Citi said in a note, with a ruling expected as early as November.
Glaxo is being sued alongside Sanofi, Pfizer (NYSE:PFE) and Boehringer Ingelheim.
Haleon was part of Glaxo or Pfizer at the time the incidences occurred but believes it is outside any legal action surrounding Zantac, something that GSK disputes,
Sharesfalt at 269p. in GSK rose 0.5% to 1,370p while Haleon was