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More than 2,000 legal cases related to Zantac have been filed in the United States over allegations that the compound contains a probable carcinogen.
Zantac, originally marketed by a forerunner of GSK, has been sold by several companies at different times, including Pfizer, Boehringer Ingelheim and Sanofi (NASDAQ:SNY) as well as a plethora of generic drugmakers.
Haleon, spun out as an independent company in July as the world’s biggest standalone consumer health business, comprises consumer health assets once owned by GSK and Pfizer.
Haleon – alongside GSK, Sanofi and Pfizer – saw billions wiped off their market value last month as uncertainty around the outcome of the impending litigation triggered investor concern, although some of those losses have been since pared back.
Shareholders fear a worse-case scenario where costs run into billions of dollars, as happened in cases involving Merck & Co’s painkiller Vioxx and Bayer (OTC:BAYRY)’s glyphosate-based weedkiller.
However, in August, Haleon clarified that it never marketed Zantac in any form in the U.S., either as Haleon or as GSK consumer healthcare.
On Tuesday, the company said it had rejected the indemnification requests from GSK and Pfizer on the basis that the scope of the indemnities set out in the joint venture agreement only covers their consumer healthcare businesses as conducted when the JV was formed in 2018.
