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Drugmakers GSK, Pfizer, Sanofi and Boehringer Ingelheim on Tuesday were spared thousands of US lawsuits claiming that the heartburn drug Zantac caused cancer, as a judge found the claims were not backed by sound science. The ruling by US District Judge Robin Rosenberg in West Palm Beach, Florida, knocks out about 50,000 claims in federal court, though it does not directly affect tens of thousands of similar cases pending in state courts around the country. "We are extremely surprised by this miscarriage of justice," and "fully expect" the ruling will be reversed on appeal, lawyers for the plaintiffs said in a joint statement. A Sanofi spokesperson said the decision "significantly decreases the scope of the litigation potentially by over 50 per cent," with the remaining litigation being only in state court. A spokesperson for GSK said the company welcomed the decision and Pfizer said it was pleased by the outcome. Privately-held German drugmaker Boehringer said in a statement that it looked forward to "continuing our vigorous defense of the remaining cases in state courts."

Shares in GSK, Sanofi, Haleon and Pfizer began to recover on Friday (Aug 12) after the companies said that nothing material had changed regarding US litigation focused on heartburn drug Zantac. The companies' share prices had fallen sharply last week on investor concern about the litigation over potential cancer-causing impurities that prompted the drug's withdrawal from markets in 2019 and 2020. More than 2,000 Zantac-related legal cases have been filed in the United States, analysts say, with the first trial beginning this month. The prospect of impending Zantac litigation is not new. Among other disclosures, recently listed Haleon had highlighted the risk of such lawsuits in its prospectus. GSK, Sanofi, Pfizer and Haleon have lost a combined $39 billion from their market value over the past week in the absence of any other particular catalyst, according to Barclays analysts.

Shares in GSK, Sanofi and Haleon fell sharply on Thursday (August 11) amid growing investor concerns about US litigation focused on a heartburn drug that contained a probable carcinogen, while Johnson and Johnson has decided to end sales of talcum powder after cancer claims. GSK shares were down 6.8 per cent, Sanofi's were down 6.9 per cent and Haleon's down per cent. GSK and Sanofi at various points sold the drug - originally branded as Zantac - which US regulators ordered off the market in 2020. Haleon, spun out as an independent listed company last month, comprises consumer health assets once partly owned by GSK. The prospect of impending litigation is not new. Among other disclosures, recently-listed Haleon had highlighted the risk of such lawsuits in its prospectus. The topic has arrived in investor consciousness in recent days it seems, but has been rumbling on in the background for a few years, Deutsche Bank analysts wrote in a note.