GSK Faces Major Setback in Zantac Litigation as Judge Allows Over 70,000 Lawsuits to Proceed

1. Delaware Court Ruling: Judge Vivian Medinilla of the Delaware Superior Court has allowed more than 70,000 lawsuits against GSK and other former Zantac manufacturers to proceed, ruling that expert witnesses can testify in court that the drug may cause cancer.
2. Lawsuits Background: The lawsuits claim that Zantac, which was discontinued in 2019, contains a chemical called NDMA that can cause cancer. Plaintiffs argue that the companies knew or should have known about the cancer risk and failed to warn consumers.
3. GSK's Response: GSK has disagreed with the ruling and plans to appeal, stating that there is no reliable evidence showing Zantac caused cancer.
4. Impact on GSK: The ruling has led to a significant drop in GSK's stock price, with shares falling around 10% in the first trading session after the ruling.
5. Other Manufacturers Involved: Pfizer, Sanofi, and Boehringer Ingelheim are also facing lawsuits related to Zantac, with Pfizer having settled over 10,000 cases recently.
6. Previous Legal Developments: A jury in Chicago rejected a claim that Zantac caused colon cancer in May, and a federal court in Florida dismissed about 50,000 lawsuits in 2022, which are currently being appealed.