Haleon Says It Hasn't Been Notified About Litigation on Zantac Drug -- Update

By Sabela Ojea

Haleon PLC said Friday that it hasn't been notified about potential negative implications of U.S. lawsuits over discontinued heartburn drug Zantac.

The consumer-healthcare business, which was spun out of GSK PLC and is partly owned by Pfizer Inc., said that it isn't a party to any of the Zantac claims and that it never marketed the drug in any form in the U.S.

GSK PLC added that the U.S. Food and Drug Administration and European Medicines Agency have concluded there is no evidence of a causal association between ranitidine therapy and the development of cancer.

"The overwhelming weight of the scientific evidence supports the conclusion that there is no increased cancer risk associated with the use of ranitidine. Suggestions to the contrary are therefore inconsistent with the science, and GSK will vigorously defend itself against all meritless claims alleging otherwise," GSK said.

Shares of Haleon and GSK, as well as Sanofi, which owns rights to over-the-counter Zantac in the U.S, have been falling over the past couple of days after a number of analysts notes that highlighted the potential exposure the companies faced as part of the litigation.

GSK shares have fallen 15% since Tuesday to close at 1400.0 pence on Thursday; Haleon shares have fallen 13% to close at 265.8 pence and Sanofi shares have fallen 11% to close at EUR84.75.

The first trial over Zantac is set to start on Aug. 22.

Write to Sabela Ojea at [e-mail]; @sabelaojeaguix

(END) Dow Jones Newswires

August 12, 2022 03:15 ET (07:15 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.