In Heart Burn Drug Zantac's Litigation Saga, Sanofi Nears Settlement in Major Lawsuit Cluster
Portfolio Pulse from Vandana Singh
Sanofi SA (NASDAQ:SNY) has reached an agreement in principle to settle around 4,000 U.S. lawsuits related to the heartburn drug Zantac, excluding cases in Delaware. The settlement, terms of which are confidential, comes amid allegations that Zantac could cause cancer due to NDMA, a potential carcinogen. Sanofi maintains no liability admission. The settlement aims to resolve most pending cases, avoiding prolonged litigation costs. Despite this, Sanofi faces ongoing lawsuits in Delaware. In 2019, Sanofi recalled Zantac, and the FDA ordered its removal in 2020. Sanofi has since reintroduced Zantac with a new active ingredient, famotidine. GSK Plc (NYSE:GSK) and Pfizer Inc (NYSE:PFE) have not joined broader settlement efforts. SNY shares rose 1.02% in premarket trading.
April 04, 2024 | 1:16 pm
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NEUTRAL IMPACT
GSK Plc, along with Pfizer and Sanofi, had about 50,000 claims dismissed in December 2022 related to Zantac causing cancer. GSK has not agreed to broader settlement efforts.
The dismissal of claims may reduce immediate legal risks for GSK, but the refusal to join broader settlement efforts could imply ongoing legal challenges or costs. The impact on stock price is uncertain without more specific developments.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Pfizer Inc, along with GSK and Sanofi, had about 50,000 claims dismissed related to Zantac causing cancer. Pfizer has not agreed to broader settlement efforts.
The dismissal of claims may mitigate immediate legal risks for Pfizer, but the lack of agreement on broader settlements suggests potential for ongoing legal challenges or costs. The impact on stock price is uncertain without further specifics.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Sanofi reaches a settlement in principle for around 4,000 Zantac-related lawsuits in the U.S., excluding Delaware. The terms are confidential, and Sanofi admits no liability. Shares rose 1.02% in premarket trading.
The settlement likely removes a significant legal overhang for Sanofi, potentially restoring investor confidence and reducing future litigation costs. The premarket stock price increase reflects positive investor sentiment.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100