A California judge will allow expert testimony linking GSK's heartburn medication Zantac to one man's cancer. The decision took a bite out of GSK stock on Friday.
The company disagreed with Alameda County Superior Court Judge Evelio Grillo's decision. Grillo said experts hired by plaintiff James Goetz can testify in a trial this summer, according to Reuters. Goetz says he developed bladder cancer after taking Zantac from GSK.
On today's stock market, GSK stock toppled 2.4% to close at 34.38.
GSK Stock: Zantac Trial This Summer
The decision comes after a U.S. judge tossed out thousands of cases in December, saying there's no evidence that Zantac causes cancer. But the ruling doesn't pertain to cases filed in some states. The California trial this summer will be a key test for GSK stock.
GSK disagreed with Grillo's decision, noting 13 epidemiological studies have found "no consistent or reliable evidence" that ties ranitidine to cancer. Ranitidine is the active ingredient behind Zantac.
"The litigation is still at an early stage and yesterday's decision relates only to the question of whether the plaintiff's experts can testify at trial in the Goetz case," GSK said in a written statement Friday. "It does not mean that the Court agrees with plaintiff's experts' scientific conclusions or their litigation-driven science."
The news sent GSK stock below its 50-day moving average, according to MarketSmith.com.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
