GSK strikes $2.2bn deal to resolve legal cases in US over heartburn treatment Zantac

Core Viewpoint - GSK has reached a settlement agreement to pay up to $2.2 billion to resolve litigation related to its heartburn treatment Zantac, addressing claims from approximately 80,000 cases in the US [1][2][5] Group 1: Settlement Details - The settlement will cover cases handled by 10 plaintiff law firms representing about 93% of the pending product liability cases [1][2] - Claimants alleged a link between Zantac and cancer, but GSK maintains there is no evidence supporting this claim and has not admitted liability [2][6] - The law firms involved are recommending their clients accept the settlement, which is expected to be implemented by the end of the first half of next year [3] Group 2: Additional Agreements - GSK has also reached an agreement in principle to pay $70 million to resolve a complaint from Valisure, which claimed Zantac could form a cancer-causing carcinogen [4] - This agreement is pending final approval from the Department of Justice [4] Group 3: Financial Implications - GSK anticipates recognizing an incremental charge of £1.8 billion in its third-quarter results for 2024 related to the settlements [6] - The company plans to fund the settlements through existing resources and will not alter its investment plans for research and development [7]