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Took their time. Could have made this announcement 24 hours ago.
Back up over 300 for W/E ?
Haleon PLC - Statement re Zantac
11 August 2022 22:20
WEYBRIDGE, UK / ACCESSWIRE / August 11, 2022 / Haleon plc (LSE:HLN) notes the
recent volatility in its share price and is aware of market speculation on
Haleon's potential liability in respect of Zantac product liability
litigation.
· Haleon is not aware of any material developments in relation to the Zantac
litigation since the Haleon prospectus was issued on 1 June 2022.
· Haleon is not a party to any of the Zantac claims.
· Haleon never marketed Zantac in any form in the U.S.
· Haleon is not primarily liable for any OTC or prescription claims.
· To the extent GSK and/or Pfizer are held liable in respect of OTC Zantac
during the periods outlined below, Haleon may be required to indemnify GSK
and/or Pfizer, only if the following conditions are met:
o GSK and/or Pfizer are unable to recover in respect of OTC Zantac from any
third parties who are ahead of Haleon and who have given indemnities under
previous transfers of rights to OTC Zantac; and
o Haleon is determined to be liable under the indemnification provisions among
Haleon, Pfizer and GSK.
Haleon told the media it is not a party of the litigation proceedings and it has never marketed the drug in any form in America.
Dumped is a bit harsh, whichever fund sold another fund bought . More buys than sells today .
Hi Rickengland,
As pockerchips says they don’t really pay it back it’s just a revolving door metaphorically speaking they just renegotiate the loans bonds over long time . The good news is they will chip away at the debit as they will have a large cashflow over the coming years from the greater number of products they sell I.e. toothpaste to painkillers . In regard to the div I personally haven’t a clue they may elect to pay one to keep shareholders happy or bang the first div into paying a bit of the debit off . I would like to see the debit being banged on the head a bit.
So not one other person is going to comment on the fact someone dumped 5 lots of £15 million yesterday and the effect that would of had on the share price? No one thinks £75 million is worthy of thought?
Recent large directors purchases eases concerns for me will top up next week if around these levels gla holders regards jack
Just seen by buy order at 245p lifted at 11.30am .
At 2pm its recovered to 265p above my to eager early buy .
your £18bn of liabilities merely tells part of the story... a reasonable amount are long term loans , and you need to weigh up that with what they are owed themselves etc ....get the full picture....look at the asset values the loans provide and the returns they produce (ROCE)
need to only really look at short term borrowings at present ...book shareholder equity is higher than the MCAP at present
" I'm trying to understand how they will pay it back "
they don't tend to pay it back....and the lenders dont want them to......they just renegotiate them and maybe pay off a part of them ....they merely aim to cover the yearly Finance costs
Dividends would come from cash flow and earnings performance
HLN are carrying £18bn of liabilities, a lot of that loans based on the prospectus. I'm trying to understand how they will pay it back on 343m profit and the impact t of that on potential divs.
So what have I missed that you feel there's value. Just trying to understand it that's all, against limited information.
Yes you are this ain’t cineworld. Read all the rns. Also upto date hon. Share news on the tab above. Then make your choice.
I'm interested in HLN, although currently trying to do some research.
In prospectus 343m profit / number of shares = 3.7p a share earnings. Thats not alot based on share pricem
Different number in prospectus lokoks like a typo in there earning per share quoted.
Threre's a ton of debt on the balance sheet , looks like cineworld territory. I am I missing something here?
Well I’ve added. Seems this has been exaggerated regarding the Zantac. We shall see good fall yesterday and more today it’s still the biggest consumer healthcare business around and at a low sp sharks would definitely be circling. :-)
At the end of yesterday someone dumped 75 million quids worth of shares, that had to scare off someone and/or flood the market dropping the price, that kind of movement must make people look and react to things they may of overlooked originally whilst they look for answers.
Haleon not a party to U.S. litigation focused on Zantac – spokesperson
11 August 2022 12:23
LONDON, Aug 11 (Reuters) – Haleon – GSK's recently spun off consumer health unit – is not a party to the U.S. litigation focused on the heartburn medicine Zantac, a spokesperson told Reuters on Thursday.
"We have never marketed Zantac in any form in the U.S., as Haleon or as GSK consumer healthcare," the spokesperson said in response to queries about sharp declines in Haleon shares.
Given over-the-counter Zantac has been sold by several companies over time, that "may make third parties liable ahead of any Haleon exposure," the spokesperson added.
Agree , well done fatprofits. Still think this is a buying opportunity now. Was expecting a bit of a fall this morning but not this much. Still waiting and may buy after the dust settles and more news. I have £5000 in at the moment but it’s longer term so not to bothered. :-). NIESR worth following of predicted economics. They tend to be spot on.
fatprofits
Thanks for this, I also missed it but your posts on here have been most useful & accurate, imho.
A true case of "caveat emptor" if ever there was one, I can not recall seeing this in any of the many press write ups on HLN, I wish I had done though !
With respect, read the document
Https://www.gsk.com/media/8976/haleon-prospectus.pdf
They are saying potential 7bn cost to the guilty parties, of which 30% to GSK. Haleon are not involved.
"...2.4 Litigation, disputes and regulatory investigations may materially and adversely affect
the Group’s business, financial condition, results of operations and prospects
The Group is, and may in the future be, subject to legal proceedings, disputes and regulatory
and governmental investigations in various contexts, including consumer fraud actions,
competitor and regulatory challenges to product and marketing claims, competition law
investigations, product liability and quality claims, human resources claims, contractual
disputes and other disputes or claims arising in the ordinary course of its business operations.
These legal actions, disputes and investigations may relate to aspects of the Group’s
businesses and operations that are specific to the Group, or that are common to companies
that operate in the Group’s markets, and this risk may be enhanced in circumstances where
the Group is operating in new markets. Legal actions and disputes may arise under contracts,
regulations or from a course of conduct taken by the Group, and may be class actions.
For example, in the USA, the Group is a defendant in ongoing proton pump inhibitor (“PPI”)
litigation, in which plaintiffs have alleged that their use of PPIs caused serious bodily injuries.
The Group has filed motions to dismiss several hundred cases, but the court has not yet ruled
on those motions. In addition, certain members of the GSK Group and the Pfizer Group are
party to proceedings relating to the detection of N-Nitroso-dimethylamine in Zantac (ranitidine)
products. Pursuant to the Pfizer SAPA, the Group has certain indemnification obligations to the
GSK Group and the Pfizer Group in respect of “Purchaser Liabilities” and “Assumed Liabilities”
(each as defined in the Pfizer SAPA), which may include liabilities related to OTC Zantac (see
paragraph 3.5 of Risk Factors below). Further, in 2013, GlaxoSmithKline Consumer Healthcare
GmbH & Co. KG and other members of a German trade mark association were fined by the
Federal Cartel Office of Germany, as a result of the exchange of certain information during
meetings from 2004 to 2006. Following the fine, the Group has become party to several civil
proceedings in Germany for follow-on damages. An adverse outcome in such proceedings (or
any other related proceedings) may have a material adverse effect on the Group’s business,
reputation, results of operations and financial condition.
Although the Group has developed and implemented a set of standards, controls, and policies
and procedures that are highly tailored to the specific requirements of the Group and the
regulatory regimes of the jurisdictions in which it operates, there is no guarantee that those
standards, controls, and policies and procedures will totally shield the Group from liability, and
the Group remains exposed to the risk of potential civil and/or criminal actions leading to
damages, fines and sanctions...*
hmm I misjudged this one but think it looks way overdone so will hold...we`ve now lost 18% nearly 3 billion in less than 48 hours and £27 billion lower than Unilever`s takeover offer...is this Zantac issue really going to be that bad it destroys the company...
The risks of a liability in Canada on this very issue is flagged
up in the listing prospectus.
Holiday stop losses targeted as well as the panic retail crowd ...could go lower based purely on there being lower volumes in August and the market looking for a stealth grab on the sells...
I am watching
Yeah agreed, I shared because it states HLN is not named in the lawsuit causing the selloff