The GSK plc (LON: GSK) share price rose 1.45% after revealing that it had completed the sale of shares in Haleon Plc as announced yesterday. The company had announced on 11 May 2023 that it was selling 240 million ordinary shares in Haleon plc at 335 pence per share to raise gross proceeds of approximately £804 million.
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According to the announcement, the global pharmaceutical company noted that it had completed the sale of the shares. Therefore, the company will now hold 955 million ordinary shares in Haleon, representing about 10.3% of Haleon’s issued share capital.
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GSK and Pfizer Inc. (which holds a 32% stake in Haleon) have decided not to sell any more shares in Haleon for the next 60 days to avoid further dilution of the company’s share price. The shares sold by GSK excluded shares held by the GSK employee share ownership trust.
GSK also issued another announcement regarding the Zantac (ranitidine) litigation in the British Columbia Supreme Court in Dussiaume v. Sandoz Canada Inc. 2023 BCSC 795. The court dismissed the proposed class action on behalf of a class of ranitidine users in Canada.
The Supreme Court stated: “Given the uncontroverted evidence that neither ranitidine nor NDMA are reliably associated with increased cancer risk, and the absence of evidence that ranitidine or NDMA cause cancer in humans, the plaintiff has failed to raise a bona fide triable issue regarding injury due to the ingestion and/or purchase of ranitidine.”
Since 2019 there have been 13 peer-reviewed epidemiological studies conducted looking at human data regarding the use of ranitidine. However, the decision recognises that after more than three years of extensive study, the scientific consensus is that there is no consistent or reliable evidence that ranitidine increases the risk for any type of cancer.
GSK confirmed that it would continue to defend itself against proposed class actions by ranitidine users filed in Ontario and Quebec and individual suits filed by ranitidine users in Canada. The rally in GSK's share price could be attributed to the Court decision.
*This is not investment advice.
GSK share price.
The GSK share price rose 1.45% to trade at 1464.00p, from Thursday’s closing price of 1443.10p.
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