REG - GSK PLC - Zantac (ranitidine) litigation settlements

GSKAnnouncement

09/10/2024 18:00

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RNS Number : 6111H  GSK PLC  09 October 2024

Issued: 9 October 2024, London UK

 

Statement: Zantac (ranitidine) litigation - settlement agreements reached

 

·   GSK to resolve 93% (approximately 80,000 cases) of U.S. state court
Zantac product liability cases for up to $2.2 billion

·   Separate settlement of qui tam complaint for $70 million

·   Settlements agreed with no admission of liability

·   No change to GSK's growth agenda or investment plans

 

 

GSK plc (LSE/NYSE: GSK) today announced that it has reached agreements with 10
plaintiff firms who together represent 93% (approximately 80,000) of the
Zantac (ranitidine) state court product liability cases pending against GSK in
the United States.

 

Under these agreements, GSK will make an aggregate payment of up to $2.2
billion to resolve all U.S. state court product liability cases handled by
those plaintiff firms that meet agreed eligibility and participation criteria
(the "State Courts Settlement").

 

The participating plaintiff firms are unanimously recommending to their
clients that they accept the terms of the State Courts Settlement, which is
expected to be fully implemented by the end of H1 2025. Terms of the
agreements are confidential.

 

GSK also confirms that it has reached an agreement in principle to pay a total
of $70 million to resolve the Zantac qui tam complaint previously filed by
Valisure. The agreement in principle is subject to final approval from the
Department of Justice (the "Qui Tam Settlement").

 

GSK has not admitted any liability in the State Courts Settlement or in the
agreement in principle for the Qui Tam Settlement. While the scientific
consensus remains that there is no consistent or reliable evidence that
ranitidine increases the risk of any cancer, GSK strongly believes that these
settlements are in the best long-term interests of the company and its
shareholders as they remove significant financial uncertainty, risk and
distraction associated with protracted litigation.

 

GSK expects to recognise an incremental charge in its Q3 Results for 2024 of
£1.8 billion ($2.3 billion) in relation to the State Courts Settlement, the
Qui Tam Settlement, and the remaining 7% of pending state court product
liability cases, partially offset by expected reduced future legal costs.

 

The costs of these settlements will be funded through existing resources.
There are no changes to GSK's growth agenda or investment plans for R&D as
a result of these settlements.

 

About GSK

GSK is a global biopharma company with a purpose to unite science, technology,
and talent to get ahead of disease together. Find out more at gsk.com.

 

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                      Frannie DeFranco           +1 215 751 4855       (Philadelphia)

 

Cautionary statement regarding forward-looking statements
GSK cautions investors that any forward-looking statements or projections made
by GSK, including those made in this announcement, are subject to risks and
uncertainties that may cause actual results to differ materially from those
projected. Such factors include, but are not limited to, those described under
Item 3.D "Risk factors" in GSK's Annual Report on Form 20-F for 2023, and
GSK's Q2 Results for 2024.

 

This announcement contains inside information. The person responsible for
arranging the release of this announcement  on behalf of GSK is Victoria
Whyte, Company Secretary.

 

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