Thousands of Zantac lawsuits dismissed on Tuesday
Decision bodes well for pending lawsuits analysts
GSK, Sanofi rally adds more than 20 bln to combined mkt cap

LONDON, Dec 7 Reuters Shares of GSK and Sanofi surged on Wednesday, adding more than 20 billion in combined value in early trade following the dismissal of thousands of U.S. lawsuits claiming that the heartburn drug Zantac caused cancer.

The ruling on Tuesday by U.S. District Judge Robin Rosenberg in West Palm Beach, Florida, knocked out about 50,000 claims in federal court on the basis that they were not backed by sound science.

The drugmakers, citing scientific consensus, have repeatedly asserted that Zantac does not cause cancer.

The Florida outcome represents a nice early Christmas present for the defendants. Was this all just a storm in a teacup after all?, Bernstein analysts wrote in a note.

The ruling can still be appealed and the decision does not directly affect tens of thousands of similar cases pending in state courts around the country. In a statement on Wednesday, GSK said it would continue to defend itself vigorously, including against all claims brought at the state level.

Although it is unlikely investors will assume Zantac risk has completely dissipated, Wall Street analysts suggested the probability and scale of future Zantac damages via other legal routes do look significantly lower.

Originally marketed by a forerunner of GSK, the medicine has been sold by several companies at…