Pfizer agrees to settle over 10,000 Zantac cancer lawsuits
Pfizer has reached an agreement to settle more than 10,000 lawsuits that accused the pharmaceutical giant of hiding cancer risks linked to its heartburn medication, Zantac. This settlement is the largest among all litigation related to Zantac and covers cases in state courts across the United States. However, this does not fully absolve Pfizer's exposure to future Zantac claims. The financial specifics of these settlements have not been disclosed yet.
Pfizer's settlement expected to reassure investors
The settlement is anticipated to bring relief to investors who have seen other Zantac manufacturers, including GSK and Sanofi, sign similar agreements. These companies' exposure to Zantac lawsuits resulted in a combined market value loss of approximately $45 billion in the summer of 2022. However, shares have since rebounded and increased following news of earlier settlements. Despite a 26% loss over the past year, Pfizer's shares rose by 1.2% in trading on Thursday.
Pfizer's statement on Zantac lawsuits and future settlements
In a statement, Pfizer clarified its position on the lawsuits and future settlements. "Pfizer has explored and will continue to explore opportunistic settlements of certain cases if appropriate, and has settled certain cases," said the pharma giant. Furthermore, the New York-based firm emphasized that it hasn't sold a Zantac product in over 15 years and only did so for a limited period.
Zantac's history and current legal challenges
Zantac, a popular antacid in the US, has been owned by various drugmakers over its more than 30-year history. Last month, Sanofi agreed to pay over $100 million to resolve about 4,000 Zantac cases. Currently, GSK is defending itself in its first US jury trial over allegations that it was aware of Zantac's serious risks. Over 70,000 Zantac lawsuits have been filed in Delaware where a judge is considering the scientific evidence supporting these cases.
Zantac's market journey and recent developments
Zantac was developed by GSK and Warner-Lambert, entering the US market as a prescription drug in 1983 before becoming an over-the-counter heartburn treatment in 1996. Sanofi, which acquired it in 2017, recalled Zantac in 2019 after tests showed the likely carcinogen NDMA present in the drug. The US Food and Drug Administration confirmed these findings in 2020 and ordered all versions of the medicine to be removed from the market. Sanofi has since reintroduced Zantac with another active ingredient.
