Pfizer has reached a major settlement in a legal battle concerning its recalled heartburn medication, Zantac.
According to a Bloomberg report, Pfizer has agreed to settle over 10,000 lawsuits that accused the company of concealing the cancer risks associated with Zantac. This settlement marks the largest deal yet in the litigation surrounding the popular antacid drug.
Pfizer Settles Over 10,000 Zantac-Related Cancer Lawsuits in Landmark Agreement
The lawsuits, filed across state courts in the United States, allege that Pfizer failed to warn consumers about the potential cancer risks posed by Zantac.
Although the specific financial details of the settlement agreements have not been disclosed, the sheer magnitude of the settlement is expected to reassure investors and stakeholders.
The legal issue surrounding Zantac is not unique to Pfizer. Other pharmaceutical companies, including GSK Plc and Sanofi, have also faced similar lawsuits related to the safety of Zantac. Sanofi recently agreed to pay over $100 million to resolve approximately 4,000 Zantac cases.
Concerns over these lawsuits had previously led to a substantial decline in market value for the companies involved. However, the recent settlement news has provided some relief to investors, with Pfizer shares showing a slight increase following the announcement.
NEW YORK, NY - SEPTEMBER 19: In this photo illustration, packages and pills of Zantac, a popular medication which decreases stomach acid production and prevents heartburn, sit on a table on September 19, 2019 in New York City. The FDA announced that is has found small amounts of a probable carcinogen in versions of Zantac and other forms of ranitidine. Photo Illustration by Drew Angerer/Getty Images
Zantac and Cancer Risk
The origins of Zantac date back over three decades, dating back to when it was introduced to the US market as a prescription drug in 1983. It later became available over the counter in 1996, gaining widespread popularity as an effective treatment for heartburn, acid indigestion, GERD, and gastric ulcers. However, in recent years, concerns have emerged regarding the safety of Zantac.
In 2019, an independent laboratory discovered the presence of N-Nitrosodimethylamine (NDMA), a probable human carcinogen, in Zantac and its generic equivalents. This discovery prompted the US Food and Drug Administration (FDA) to take action, confirming the presence of NDMA in ranitidine products like Zantac. As a result, the FDA ordered the immediate withdrawal of all ranitidine medications from the market in April 2020.
NDMA is known to increase over time and at higher temperatures, potentially posing a significant risk to consumers. The FDA explains that while low levels of NDMA are commonly found in various sources, sustained exposure to higher levels of the substance may increase the risk of cancer in humans.
In response to the recall, Sanofi reformulated Zantac, introducing a new version called Zantac 360, which contains famotidine instead of ranitidine. This reformulated version is currently available over the counter and does not come in prescription strength. The FDA has deemed famotidine a safe alternative to ranitidine, with no NDMA contamination detected in famotidine products.
