GSK to Pay $2.2B to Settle Zantac Cancer Lawsuits

Improve the News Foundation -

Facts

  • British pharmaceutical giant GSK has agreed to pay up to $2.2B to settle most pending US state court lawsuits that claim its now-discontinued heartburn drug Zantac causes cancer.[1][2]
  • Though the drugmaker struck the settlement earlier than expected, it denied any wrongdoing, stating there was "no consistent or reliable evidence" that Zantac could degrade into a carcinogen.[3][4]
  • Zantac, whose chemical ranitidine is believed to form the carcinogen NDMA, first sold in the US in 1983 and topped $1B in annual sales in 1988. Different pharmaceutical companies, including Sanofi and Pfizer, later marketed it.[3][5]
  • In 2019, the US Food and Drug Administration (FDA) probed Zantac over concerns it contained NDMA, leading to voluntary market withdrawals. In 2020, the FDA ordered GSK to pull all ranitidine drugs from the market.[6][7]
  • GSK is reportedly planning to pay $2.2B to settle thousands of cases, with some analysts predicting payouts of $7B to cover all claims. A combined $40B of market value was lost between GSK, Pfizer, Sanofi, and Haleon due to the controversy.[8][9]
  • The settlement covers about 93% of the cases — accounting for approximately 80K claimants — pending against GSK in state courts nationwide. Following the news, GSK's stock jumped 5.6% during morning trading in London.[9][10]

Sources: [1]CNN, [2]BBC News, [3]Reuters (a), [4]Reuters (b), [5]Euronews, [6]Forbes, [7]The New York Times, [8]Financial Times (a), [9]WSJ and [10]Financial Timest (b).

Narratives

  • Narrative A, as provided by GSK. GSK's decision to settle these cases simply avoids the distraction of protracted litigation. As there is no scientific evidence backing claims of consumer harm from Zantac, the company will continue defending itself in all other Zantac cases based on facts and science.
  • Narrative B, as provided by YouTube. GSK wouldn't be paying such enormous settlements if it wasn't hiding something. In fact, investigations have now shown the company was aware of Zantac's link to cancer as far back as the early 1980s, meaning GSK is liable for decades worth of unnecessary cancer diagnoses.
  • Cynical narrative, as provided by X. The vast majority of US health regulators have conflicts of interest with the food and pharmaceutical industries, which is why they promote these billion-dollar drugs rather than talk about underlying causes. For example, gastric reflux, which causes heartburn, could be prevented by simply walking a few thousand steps a day. The US government and its friends in big business are the main causes of American health problems.

Predictions