Why did Sanofi stock jump up today? Zantac litigation tossed out by judge
Sanofi (NASDAQ:SNY) jumped 8.1% after a federal judge in Florida ruled that the drugmaker as well as GSK Plc (NYSE:GSK) won't have to face thousands of lawsuits related to claims that Zantac heartburn medication may cause cancer.
GSK rose 7.8% and GSK consumer spinoff Haleon(HLN) advanced 7.3% in trading on Tuesday.
The companies were granted summary judgement by federal judge Robin Rosenberg in South Florida in multi district litigation related to Zantac.
Zantac was withdrawn from the U.S. market in 2020 amid concerns over the unacceptable levels of potential human carcinogen, N-nitrosodimethylamine. The users of the drug have filed thousands of lawsuits over its carcinogenic effects against drugmakers, including Sanofi (SNY) and GSK (GSK).
Thousands of Zantac users have filed lawsuits over its carcinogenic effects, implicating drugmakers such as GSK (GSK), Sanofi (SNY), Pfizer (PFE), Teva Pharmaceutical (TEVA), Perrigo (PRGO) and Dr. Reddy's Laboratories (RDY).
In September GSK (GSK) was upgraded to neutral from underperform at Credit Suisse, with the analyst noting that Zantac litigation is "likely to remain a concern for some time" as legal proceedings will likely take years to resolve.