GlaxoSmithKline or GSK, is one of the most renowned pharma giants around the globe. In a recent development regarding the UK-based company with presence around the globe, including India, the company shares boomed on October 10.
GSK Reaches USD 2.2 Billion Settlement
This development came to pass after reports emerged that the pharmaceutical behemoth reached an agreement to resolve the great majority of lawsuits connected to its heartburn medication Zantac. The value of the deal is estimated to be around USD 2.2 billion.
As per GSK's own statement, they had arrived at an agreement with 10 plaintiff firms representing about 80,000 people, who had brought product liability cases against it in US state court.
As per the Financial Times, this settlement amount is far below the initial estimates of about USD 8 billion, which were derived by the Bank of America.
The most crucial part about this case is that GSK did not accept any liability.
Zantac or Ranitidine, was discovered in 1976 in England. The medicine was first made commercially available in 1981. It was once listed as an essential medicine by the World Health Organisation. However, now most markets, including the US, have had it removed at regulators' request. The UK NHS claims that use has been stopped worldwide.
GSK Shares Jump After Settlement
When we come to the company shares listed on the London Stock Exchange, they zoomed in the intraday trading session on Thursday, October 10.
In fact, the company shares have seen a cumulative rise of 5.39 per cent or GBP 78.50. On Thursday, the green streak continued, and at 9:24 AM (London Time), the company shares jumped to 5.26 per cent or GBP 76.75. This took the overall value of the shares GBP 1,534.75 per piece.
GSK is regarded amongst the top 10 global drugmakers, alongside its fellow UK Pharma giant AstraZeneca.
