GSK said Wednesday that it is paying up to $2.2 billion to resolve 93% of its US state-based liability cases related to its heartburn medicine Zantac. The UK company also agreed to a separate agreement with Valisure, a company that claims to have discovered the link between Zantac and its generics to a carcinogen known as NDMA, for up to $70 million.
The agreement with Valisure is pending approval from the US Department of Justice, while the states-related agreement is with 10 separate firms, representing about 80,000 cases to be settled by the first half of 2025.
GSK is not admitting liability, and the company wrote in a Tuesday statement that settlements will be paid with existing funds and won’t change its growth or investment plans.
However, there will be an incremental charge in its third-quarter earnings of $2.3 billion, thanks to the agreements and the remaining 7% of state court liability cases.
“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,” the company wrote in a statement.
Cases against GSK and other manufacturers of Zantac began cropping up after an FDA investigation found that levels of the carcinogen N-nitrosodimethylamine (NDMA) increased in the drug with time and temperature.
GSK has had several court wins and other agreements over the last several years, including as recently as August, when it was found not liable in a jury trial in Illinois state court.