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Graywolf, it as nothing to do with HLN, its a prescription medication that was discontinued some time back.
Zanatac = Ranitidine was prescription, not OTC, and when Pfizer sold OTC they became liable due to removing labeling
What's this got to do with HLN please ?
From Bloomberg -- Sanofi, Haleon and GSK extend Wednesday’s losses amid concern about the risk stemming from litigation over Zantac, a once-popular antacid that has drawn a flurry of US personal-injury lawsuits alleging it causes cancer. Analysts, however, say the selloff in Sanofi looks overdone and that Haleon’s involvement in the issue also seems limited.
The two-day rout has wiped out a combined $22 billion from the market capitalization of the three companies.
Deutsche Bank says the issue is likely to put pressure on near-term sentiment for Sanofi and GSK
Sanofi shares closed 8.2% lower on Wednesday, with Haleon falling 8.1% and GSK down 5.5%
GSK down 1.5% as of 08:42 am in London, a day after its worst one-day drop since October 2014
NOTE: GlaxoSmithKline, Sanofi, Others See Zantac Cancer Claims Advance
SVB Leerink (outperform on Sanofi) says the risks facing Sanofi related to Zantac litigation look “overblown,” with its exposure to potential liability “relatively low”
The drop in Sanofi shares on Wednesday, amid fears around Zantac litigation, offers a buying opportunity, analyst David Risinger says
Credit Suisse (outperform on Haleon) says that Haleon’s involvement in the litigation also looks “limited”
Haleon does not own the rights to OTC Zantac in the US and is consequently not a defendant in any of the lawsuits, analyst Faham Baig says
Still, the UK-listed firm lost 6% on Thursday
Deutsche Bank says the Zantac issue is “not new” but appears to have “arrived in investor consciousness” in recent days, even though it has been “rumbling on in the background” for a few years
Don’t think the evidence suggests this will be an issue in the scale of glysophate, but it’s possible that it will result in liabilities in the billions of dollars
That, coupled with some negative headlines around the pending cases, is likely to be a short-term headwind for investor sentiment on GSK and Sanofi, analyst Emmanuel Papadakis says
Sanofi, GSK, Boehringer Ingelheim and Pfizer’s Zantac lawsuit risks could be “many billions of dollars, but we think settlement value could be around $5-$7 billion, with GSK bearing about 30% of the risk,”
Pfizer Hit With Class Action Suit Over OTC Zantac Labeling
A group of consumers filed a class action suit against Pfizer, alleging that the company knew or should have known that its over-the-counter heartburn drug Zantac (ranitidine) was contaminated with dangerous levels of NDMA and unsafe for consumption.
The complaint alleges that Pfizer marketed its OTC Zantac as safe and effective despite “evidence to the contrary,” noting that the drug’s original labeling did not list NDMA or disclose the contaminant’s properties as a probable carcinogen.
“NDMA would not be present if the medication were properly synthesized,” according to the complaint. The medications “expose users to NDMA well above the legal limit,” so they are “not fit for human consumption.”
Pfizer was the original NDA holder for OCT Zantac, manufacturing and controlling the drug from 2000 to 2006. The company and other prominent drugmakers, including the drug’s current brand name manufacturer, Sanofi, have recalled their ranitidine products. Pharmacy chains such as Walgreens, Rite Aid and CVS, have also followed suit.
After selling Igas noticed 12% fall here .
Topped up small holding with a 100% deal size , now three times as many as at demerger which less then one month ago .
Increased my limit from 150p to 152p which was previous day low .
Oh it was 75 million not 60!!! That can seriously drop the price and spook people.
Ouch, I sold Aviva yesterday and bought here, that seems a bid error in the short term, but I assume those 60 million share sold in 15 million chunks yesterday did not help, they all seemed to appear after hours, I am guessing someone offloading big style.
Glad you lot are posting this info ! Not gonna touch with a bargepole now , thanks
Right, so now we know.
So Haleon appear to have liability for OTC Zantac that
contains ranitidine as per the Canada.
I do not have information on how many other
countries OTC Zantac with that active ingredient
is available in.
Needs a statement from the company but can now
understand the fall and it was not an Elliott exit -
got this one wrong.
Most of us have had buyers regret....eventually you will be in positive territory so try not to worry.
Patience is key....
And I think that the dividend will be quite reliable here. Stable brands and the household business does not have the vast costs linked to drug development so should be pretty profitable....
And who knows when a bigger fish may buy a position and make an offer...
Big mistake buying yesterday....huge one.....for me, not even a dividend to look forward either
Like a lot of people here I received shares at the split.
I will probably only top up if, or once, the price drops to 220 or lower.
Everyone else will have their own buy or sell limits and it is all based on your own calculations, gut instinct or general guesswork. Like everyone else my investments are at the mercy of the markets and all any of us can hope to do is buy lower than we sell at least some of the time...
DYOR and GLA
I'm not normally a conspiracy theorist but with the sharp fall here continuing today I wonder if news of a significant offload by Pfizer(at below market price) is imminent?
Now in my humble opinion is a buy opportunity. Good hold for the future.
Thanks for the update. Seems extreme to knock billions of haleons value for this...
BUZZ-GSK, Sanofi: "Zantac has arrived" - Reuters News
11-Aug-2022 07:45:37
** GSK, Sanofi and Haleon remain in spotlight after heavy drop in previous session on rumours fuelling concern over potential negative implication from lawsuits in the U.S. over Zantac, a drug that was withdrawn in 2019
** "Zantac has arrived," writes Deutsche Bank on GSK/Sanofi
** "We don't think the evidence points to this as another glyphosate, but it is very possible we may see a liability of some $bn magnitude incurred which, coupled with negative headlines from the slate of imminently pending cases... is likely to act as a short-term headwind (already has?)," it adds
** Credit Suisse sees Haleon's involvement in Zantac litigation as limited. It adds: "more than 2,000 cases have been filed in the US and the first trial begins on 22 August 2022"
** One trader sees shares in GSK, Sanofi and Haleon rebounding. GSK up 1.4%, Sanofi up 0.9%, Haleon down 2% on Tradegate
(Reporting by Danilo Masoni)
(( Danilo.Masoni@TR.com ))
Market cap below 25 billion...this looks really cheap now so have added more funds
Remember Pfizer who hold 32% are committed to selling down their stake , this will be a drag on the SP here for months if not years. Also, when GSK threw HLN overboard they tossed them a concrete lifebelt in the form of £10 bill of debt!!
As you may guess I am a non-holder here and exited GSK shortly after they inexplicably turned down the ULVR offer.
With the value almost half what unilever offered I bought more yesterday. Hopefully there will be takeover interest from the American giants at this valuation
Pound strengthening.
Anyone know what are the actual disclosure rules for a fund selling a material stake ? Can they do it quietly, without their sales trans being shown immediately, and then an RNS within a day or so ? Doesn't seem right to me that the sales trans are delayed because this is market sensitive information and all parties are meant to be on an equal playing field. I'll phone the LSE tomorrow.
Companies going bust! Methinks I will. Definitely be buying tomorrow hopefully it might drop a bit more in the first half hour or so. :-).
Elliott exit or stake reduction imho.
Added a small amount more before the close.
Now worth 26bn with 10bn of debt, and Unilever offered 50bn , so 14bn difference now , this split did not maximise shareholder value , a sale would have deliver 14bn more value
Drop here and in GSK today looks very suspicious. C 4.5% drop in GSK and over 6% in HLN when markets are well up.....the Regulator should delve into these to establish who sold and whether legitimate or not.