GSK shares slump 9% on Zantac ruling

UK drugmaker GSK (LSE: GSK) closed 9% lower after Monday’s trading in London on news of a negative court ruling.

Investors were evidently spooked by a judge’s ruling over in Delaware, which means that more than 70,000 cases against the London-based pharma major relating to the stomach acid medication Zantac (ranitidine), can go ahead.

"GSK will continue to vigorously defend itself against all claims and manage this litigation in the best interests of shareholders"The complainants can now testify before a jury about the alleged link between Zantac and cancer, a connection that GSK and other companies that have sold the drug - including Sanofi (Euronext: SAN) and Boehringer Ingelheim - continue to deny.