Breaking News
Investing Pro 0
Free Webinar - What Is a Gold IRA? Fees, Advantages, and Risks - December 7, 2022 | 01:00PM EST Enroll Now

Haleon believes it is not liable for any potential Zantac liabilities

Stock Markets Sep 20, 2022 12:26PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. The company logo for Haleon and the trading info is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 20, 2022. REUTERS/Brendan McDermid
 
PFE
+1.45%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
SNY
-2.20%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
BAYRY
+0.43%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Natalie Grover

LONDON (Reuters) -Haleon believes it is not liable for any claims that may arise from U.S. litigation over the heartburn drug Zantac, the London-listed company's CEO Brian McNamara told Reuters on Tuesday.

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 (NYSE:PFE), Boehringer Ingelheim and Sanofi (NASDAQ:SNY) as well as a plethora of generic drugmakers.

Haleon, spun out of GSK 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 has repeatedly said that it never marketed Zantac in any form in the United States, either as Haleon or as GSK Consumer Healthcare.

In an interview with Reuters, McNamara reiterated that if any damages are accrued as a result of U.S. litigation over Zantac, Haleon had never agreed to accept a share of any potential such liabilities.

"We felt like it was important that all our shareholders were aware of that stance," he said.

Uncertainty around the outcome of the litigation triggered investor concern last month, wiping billions off the market value of Haleon - alongside GSK, Sanofi and Pfizer - although some of those losses have been since pared back.

Shareholders fear a worst-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.

In a note last week, Credit Suisse analysts estimated pre-tax Zantac liabilities for Haleon could be in the region of $200 million to $400 million.

In a statement on Tuesday, Haleon said it had rejected 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.

"We do not agree with Haleon’s position," a GSK spokesperson said.

"GSK believes that there are grounds for it to bring indemnification claims in respect of certain potential liabilities, including against Haleon."

Pfizer was not immediately available for comment.

Haleon shares were up 1.4% as of 0750 GMT, while shares in GSK were down 0.2%.

Haleon on Tuesday also posted detailed results for its performance in the six months ending June 30.

Adjusted profit per share over the period was 9.6 pence per share, beating expectations of 8.85 pence per share in company-compiled consensus estimates.

The company also stood by its forecast for organic revenue growth in the region of 6% to 8% for 2022.

Haleon believes it is not liable for any potential Zantac liabilities
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email