GSK Plc shares (
GSK.L) dropped over 7% following a court decision requiring the UK pharmaceutical company, along with others such as Sanofi, to face trials over whether the former heartburn medication Zantac causes cancer.
The stock fell by as much as 10% in London trading, erasing about £7 billion ($8.9 billion) from GSK’s market value. This is the most significant drop since another Zantac-related downturn in August 2022.
The selloff wiped out nearly half of the stock’s gains for the year, just as the company was showing signs of improvement.
The ruling is “a big, fat fly in the ointment of an otherwise improving story,” commented Tim Anderson of Wolfe Research in a client note.
This decision opens the door for multiple trials in Delaware state court. Zantac, once a popular antacid, has been the subject of numerous US personal i ...
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