LONDON: British pharmaceutical giant GSK has agreed to pay up to $2.2 billion to settle legal claims in the United States concerning its heartburn medication Zantac (ranitidine) to address approximately 80,000 lawsuits alleging a link between the drug and cancer.
GSK has reached the agreement with ten law firms representing 93pc of the pending cases. While the company denies any reliable scientific evidence linking Zantac to an increased cancer risk, it has decided to settle the lawsuits to avoid protracted litigation.
The settlement includes a separate $70 million agreement with Valisure, an independent laboratory that raised concerns about Zantac's potential to form a carcinogen, NMDA.
GSK will cover the settlement through existing financial resources, with no disruption to its research and development programs. The company expects the settlement to be fully implemented by mid-2025.