The FTSE 100-listed GlaxoSmithKline PLC (GB:GSK) reached a settlement on another Zantac lawsuit in California as part of the company’s efforts to put an end to the expensive legal proceedings. The company also stated that it does not accept any liability and remains committed to defending itself. The company will continue to uphold its stance based on the facts and scientific evidence in all other Zantac-related cases.
According to analysts at Citi and J.P. Morgan, the company’s total liability for the lawsuits is around $5 billion.
The company’s shares were trading up by 0.45% on Wednesday at the time of writing. The stock has witnessed a decline of 30% since June 2022, after the company was haunted by litigation concerns surrounding Zantac.
Headquartered in the UK, GlaxoSmithKline is a global pharmaceutical company, operating in approximately 80 countries. The company’s diverse portfolio comprises three segments: Vaccines, Specialty Medicines, and General Medicines.
The Cantlay/Harper case, originally scheduled for trial on November 13, 2023, is now set to be dismissed. Additionally, the company has successfully resolved the three remaining breast cancer cases in California about the same drug. These lawsuits claimed the heartburn drug Zantac was responsible for causing cancer. Zantac was discontinued by the company in April 2020 after the FDA ordered it to be removed from the market.
On the flip side, the company still has approximately 79,000 cases related to Zantac to resolve in the U.S. GSK’s next challenge will be a hearing in January, addressing the majority of the cases, totaling around 73,000.
Is GSK a Good Stock to Buy?
According to the TipRanks Smart Score tool, GSK stock has earned a “Perfect 10,” suggesting a higher probability that the stock will outperform market averages. The TipRanks Smart Score assesses stocks and assigns a score between one and ten, which offers insights into a stock’s potential to outperform overall market returns. Top Smart Score Stocks-UK compiles the list of the best stocks as per this tool.
According to the consensus on TipRanks, GSK stock is currently assigned a Hold rating. This rating is backed by three Buy recommendations, four Hold recommendations, and four Sell recommendations. The GSK share price forecast is set at 1,460p, indicating a projected decrease of 4.74% from the current level.