The market value of all of the companies that sold off this week was tens of billions of dollars.
This has been a known issue for a long time but investor concern exploded this week in the lead-up to the first legal proceeding.
The drug ranitidine is also known as zantac. In the 1980s it was sold as a prescription drug by Glaxo.
Makers of the drug pulled it from shelves after regulators launched a safety review because they thought it contained a probable carcinogen. All versions of the treatment should be pulled from the market by 2020.
Since then, more than 2,000 cases have been filed in the U.S. with people claiming that consuming zantac can cause NMDA.
Key bellwether trials will start in early 2023.
Zantac heartburn medicine are seen at a store in Mountain View, California on Oct. 1, 2019.A lot of pharma players have been involved with the drug.
There are multiple manufacturers, retailers and distributors of the medicine named in the lawsuits.
The OTC rights in the US have been owned by a number of companies.
According to the company, Haleon isn't primarily liable for the claims, but may be related.
In the wake of the violent share price moves this week, all three of the companies have issued statements.
Drug prices were stable on Friday morning.
There is no increased cancer risk associated with the use of ranitidine according to the overwhelming weight of the scientific evidence. Suggestions to the contrary are not consistent with the science.
There is no reliable evidence that the drug causes injuries under real-world conditions, and the company is confident in its defense. No contingencies have been established because of the strength of our case.
Zantac is the brand name for a drug called ranitidine, a medicine used to relieve heartburn.Potential liability and Haleon's involvement seem less clear-cut.
Haleon asserts that it is not a party to any of the claims and is not responsible for any OTC or prescription claims.
Haleon may be required to indemnify Pfizer and/or Glaxosmithkline under certain conditions if they are held liable for OTCzantac.
The European pharma team said in a note that there were considerable uncertainties. Four companies have been involved in the ownership of the rights.
The team believes that the OTC manufacturers could be on the hook for more of the liabilities than the brand originators.
Redburn said in a research note that the impact at the company level could be reduced by the fact that there are multiple manufacturers of the drug.
On Thursday, the pharmaceuticals team atDeutsche Bank Research upgraded its recommendation on sanofi from a hold to a buy.
The German bank believes that maintaining a Sell at these levels feels egregious.
The team says that both GSK and SAN seem to present a classic dilemma: they cannot yet fully assess the liability overhang.
The strength of the court's decision depends on whether or not there is a link between the two.
There have been drug settlements ranging from $30,000 to $270,000 per person.
As the trials go on, there will be more known claims.
For many investors and analysts, the incident brings back bad memories.
After Bayer took over Monsanto, there were a lot of lawsuits related to the weed killer.
In the case of Monsanto, the litigation risk was flagged to investors before the deal was completed, and in this case, the litigation risk is a key risk for Haleon.
In the nearly 500-page document, the group warned that it could have a material adverse effect on the group's finances.
Regulators around the world have removed the drug from the market. There are over 2k claims relating to ranitidine products compared to the 130k cases faced by Bayer.
"We don't think the evidence points to this as anotherGlyphosate, but it is very possible that we will see a liability of some billion dollars."
All Rights Reserved © 2024
