GSK Shares Rise After Court Decision

Shares of GSK plc (LON:GSK) rose on Wednesday following the Delaware Supreme Court’s decision to grant an interlocutory review of the Delaware Superior Court’s ruling. This previous ruling allowed plaintiffs to introduce expert evidence at trial.

At 4:31 am (0831 GMT), GSK shares were trading 1.5% higher at £1,642.11.

The ongoing litigation involves allegations that ranitidine, the active ingredient in Zantac, may increase cancer risk.

Analyst Insights
According to analysts at Guggenheim, the Delaware Supreme Court’s interlocutory review is a positive sign, suggesting that GSK’s appeal may have a reasonable chance of success and could lead to the reversal of the prior decision.

GSK maintains that there is no definitive scientific evidence linking ranitidine to cancer, a stance supported by several epidemiological studies involving over 1 million patients conducted since 2019.

If Judge Medinilla’s decision is overturned, Guggenheim analysts believe GSK could face a significantly reduced settlement amount or liability threat soon thereafter.

In light of the Supreme Court’s ruling, GSK remains committed to vigorously defending its interests and managing the litigation effectively for its shareholders. The company will continue with Delaware litigation concurrently with the review by the Supreme Court.

Additionally, GSK aims to provide further defenses in the litigation, including challenges related to proof of use and diagnosis as mandated by the Court.