Haleon Shares Pop After Rejecting Zantac Indemnification Requests From GSK, Pfizer

Haleon Plc HLN notified GSK Plc GSK and Pfizer Inc PFE that it had rejected their requests for indemnification concerning U.S.-based litigation over the heartburn drug, Zantac.
In a statement, Haleon said the rejection is based on the scope of the indemnities set out in the joint venture agreement, only covering their consumer healthcare businesses as conducted when the JV was formed in 2018.
Over 2,000 cases related to Zantac have been filed in the U.S. over the alleged presence of probable cancer-causing carcinogens.
Related: One Suit Down Out Of 3,000 Zantac Related Lawsuits, Says GSK.
Initially marketed by GSK, Zantac has been sold by several companies at different times, including Pfizer, Boehringer Ingelheim, and Sanofi SA SNY, as well as several generic drugmakers.
Haleon has repeatedly said that it never marketed Zantac in any form in the U.S, either as Haleon or as GSK Consumer Healthcare.
In July, GSK completed the demerger of the Consumer Healthcare business to form the Haleon Group.
In an interview with Reuters, CEO Brian McNamara reiterated that if any damages are accrued due to U.S. litigation over Zantac, Haleon had never agreed to accept a share of any potential such liabilities.
Last week, Credit Suisse analysts estimated pre-tax Zantac liabilities for Haleon could be around $200 million-$400 million.
Price Action: HLN shares are up 3.21% at $6.10 during the premarket session on the last check Tuesday.