GSK’s first settlement of a lawsuit in the Zantac litigation may set the momentum ahead of a sequence of trials set to begin in the US. Concerns around claims relating to the heartburn drug sent shares tumbling last summer, knocking billions off the pharmaceutical company’s market capitalization. Still, this is just one of the cases related to the drug, which the pharmaceutical company said it will continue to fight.
Here’s the key business news from London this morning:
In The City
GSK Plc: The pharmaceutical company agreed to confidentially settle a lawsuit that was due to go to a trial in California state court on July 24, the first such case set to go to trial in the US.
- The settlement relates to a trial in which a man claimed the drugmaker’s blockbuster heartburn medication Zantac caused his cancer
- In 2019 Zantac was found to form NDMA, a probable carcinogen
Neptune Energy Group Ltd: Eni and Vår Energi together agreed to buy most of the London-headquartered oil explorer, in a deal valued at about $4.9 billion.
- Eni will buy Neptune’s entire portfolio other than its operations in Germany and Norway, while Var will buy its Norwegian operations under separate deal
THG Plc: John Gallemore, the consumer company’s COO and co-Founder, and his spouse bought nearly half a million pounds worth of shares earlier this week. The purchase comes after CEO and co-Founder Matt Moulding relinquished his special share in the company earlier this week.
Hotel Chocolat Group Plc: The UK chocolate maker expects financial performance to be lower than market expectations, according to a statement issued today.
In Westminster
Rishi Sunak said he is “absolutely confident” he will meet his pledge to halve inflation this year, even after the Bank of England’s decision to raise interest rates to 5% laid bare frustration among ministers and Conservative politicians about the slow progress of his efforts. “Rooting out inflation is not easy, it requires difficult decisions, it doesn’t happen overnight,” the British prime minister told during a business event in Kent.
Yet, UK consumer confidence improved more than expected in June, reaching its strongest level in 17 months despite elevated inflation and soaring interest rates. The market research firm GfK Ltd. said its measure of sentiment rose 3 points to minus 24 this month, suggesting households are so far are weathering the worst cost-of-living crisis in generations.
In Case You Missed It
Women in the UK’s financial industry don’t see the downfall of hedge fund manager Crispin Odey from the company he co-founded as a Weinstein moment. The financial industry, they say, has a long way to go to improve the way women are treated.
Meanwhile, if a bid emerges for Ocado Group Plc, shareholders would have the opportunity to realize some value and they should seize it, Bloomberg Opinion columnist Andrea Felsted writes. The key question is what is the right price for its cutting-edged technology and future potential in partnerships it struck, she adds. Ocado shares rose as much as 47% on Thursday, after The Times reported the company has drawn interest from more than one US suitor, including Amazon.com Inc.
Still in the retail universe, billionaire Mike Ashley has been snapping up shares in retailers including Asos Plc, Boohoo Group Plc, AO World Plc and Currys Plc in the past couple of weeks. The moves come via Frasers Group Plc, the retail empire which Ashley originally founded back in the 1980s as Sports Direct.
Looking Ahead
Next week begins with Associated British Foods Plc’s third-quarter update on Monday morning, with analysts eager to see how the the Primark owner is faring the steep cost of inflation. In late April, the retailer said the budget fashion chain was growing its footprint in southern US, particularly in Texas, with a new warehouse in Florida.
Also watch out for money transfer fintech Wise Plc’s full-year results on Tuesday.
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