Delaware Supreme Court Rejects Expert Testimony in 75,000 Zantac Cancer Lawsuits

The Delaware Supreme Court ruled against the admissibility of expert testimony linking the heartburn drug Zantac, which contains ranitidine, to cancer, siding with pharmaceutical companies including GSK, Pfizer, Sanofi, and Boehringer Ingelheim. The court found that a trial judge erred in allowing about 75,000 lawsuits to proceed without properly evaluating the reliability and sufficiency of the expert reports. It emphasized that the burden rests on plaintiffs to prove expert opinions are based on solid facts and reliable methods, aligning Delaware's evidentiary standards with federal law. This ruling halts the progression of these mass tort litigations, providing a significant legal victory for the drugmakers. The decision has implications for Delaware’s reputation as a business-friendly jurisdiction by preventing what business groups fear could be an erosion due to mass litigation. Additionally, the ruling impacts GSK’s stock outlook, which currently holds a 'Hold' rating with modest downside risk and an estimated one-year upside based on fair value calculations.