Astrazeneca: Pharma giant splashes the cash to settle two legal claims
AstraZeneca has agreed to pay out $425m in a settlement today after facing multiple claims that two of its old stomach acid drugs caused kidney injuries.
In a statement this morning, the FTSE 100 firm said it had struck a settlement over the Nexium and Prilosec drugs to “effectively resolve” product liability claims facing the firms in multiple courts across New Jersey and Delaware in the US.
Bosses doubled down on their belief the “claims are without merit” today and said the firm “admits no wrongdoing in the settlement agreement”.
“These settlements avoid continued costly litigation and allow the Company to move forward with its purpose of delivering life changing medicines to millions of patients around the world,” Astrazeneca added.
A single case remains pending in the US District Court for the Middle District of Louisiana. Trial is scheduled in that case for April 15, 2024.
The $425bn bill footed by the firm may come as a relief in the City, however, after investors had feared of a potential $1bn bill being slapped on the firm.
Fears over litigation have similarly weighed on rival GSK which is facing potentially multi-billion dollar liabilities over its heartburn drug Zantac.
Shares in GSK and its spun off consumer health business Haleon tumbled earlier this year as court proceedings kicked off against the firms. They have strongly denied the allegations.