British pharmaceutical giant GSK is offering up to $2.2 billion (£1.68 billion) to settle thousands of lawsuits in US courts alleging that a discontinued version of its heartburn drug Zantac caused cancer. ) was announced to be paid.
The company announced it had reached agreements with 10 law firms representing approximately 80,000 claimants. Settlements account for 93% of all lawsuits.
GSK will also pay $70 million to settle a whistleblower complaint by the institute that alleged the drugmaker misled the U.S. government by concealing Zantac’s cancer risks.
GSK did not admit wrongdoing in any of the incidents.
The company said in a statement to investors that while there is “no consistent or reliable evidence” that the drug increases cancer risk, the settlement “resolves significant financial uncertainty.” .
Zantac was first approved for sale in the United States in 1983.
Within five years, it was the world’s best-selling drug, with annual sales exceeding $1 billion.
In 2020, U.S. regulators removed Zantac from shelves over concerns that the main ingredient, ranitidine, could transform into a potentially cancer-causing substance when exposed to heat.
The move led to tens of thousands of lawsuits against the drug’s manufacturers.
Last year, doctors in the UK were told to stop prescribing four types of Zantac as a “precautionary measure”.
This comes after concerns were raised in several countries that the products may contain impurities.
The drug is not only sold by GSK, but also by other major pharmaceutical companies Pfizer, Sanofi, and Boehringer Ingelheim.
Pfizer and Sanofi have both agreed to settle the lawsuit.
Boehringer Ingelheim is an exception. No large-scale settlements have been announced.
A drug called Zantac 360 that does not contain ranidine is still available.
