GSK Settles 93% of Zantac Cancer Lawsuits for $2.2 Billion

Oct 9, 2024, 06:59 PM

GlaxoSmithKline (GSK) has agreed to pay up to $2.2 billion to settle approximately 80,000 U.S. state court lawsuits alleging that its discontinued heartburn medication Zantac, known generically as ranitidine, caused cancer. The settlement covers 93% of the pending product liability cases and involves agreements with ten plaintiff firms, expected to be finalized by the first half of 2025. GSK will recognize a £1.8 billion ($2.3 billion) charge in its third-quarter 2024 results due to the settlement. The U.S. Food and Drug Administration had previously asked manufacturers to remove Zantac from the market over concerns that an ingredient could degrade into a carcinogen. Following the announcement, GSK shares jumped as much as 6.5%.