By Helena Smolak

GSK said a plaintiff in an Illinois lawsuit against the company voluntarily dismissed her case, one of many legal disputes alleging its discontinued drug Zantac caused cancer.

The British pharmaceutical giant said late Monday that the trial was scheduled to start yesterday in Illinois, adding that it didn't reach a settlement nor made any payments in exchange for the voluntary case dismissal.

Separately, as expected, the company filed an appeal with the Delaware Supreme Court, challenging a lower court's decision to allow jury trials in Zantac litigation within the state. The lower court earlier this month ruled to allow plaintiffs' experts to present their evidence at trial. GSK anticipates a decision on whether an interlocutory review and hearing of the appeal will be granted this year.

GSK said the court's ruling concerning its Zantac drug, jointly owned by several pharmaceutical companies, contradicts the application of the Daubert standard--a rule governing the admissibility of expert testimony--in Delaware and federal courts.

GSK shed 5.51 billion pounds ($7.02 billion) in market value, while its shares slumped more than 9% last Monday following the Delaware ruling, according to FactSet. The group's shares recovered 2.2% since then, with the company's market value at around GBP67.2 billion as of Monday's close.

"Volatility in the share price will likely persist over the near term until there is some further clarity around the size and scope of potential damages," Shore Capital Markets analyst Sean Conroy said in a market comment.

In 2020, the U.S. Food and Drug Administration requested manufacturers take Zantac off the market. The FDA concluded that the drug's ingredient, ranitidine, can form a cancer-causing contaminant, N-Nitrosodimethylamine, over time or through heat exposure.

Write to Helena Smolak at

(END) Dow Jones Newswires

06-11-24 0517ET