SNY Stock Alert: Why 1 Analyst Says Zantac Ruling Is ‘Best-Case Scenario’ for Drugmakers

  • Sanofi (SNY) stock is a hot topic following a court case update.
  • A judge has dismissed cases against the company over Zantac.
  • Plaintiffs in the case had argued that the drug could cause cancer.
Sanofi (SNY stock) logo on the side of company branch in Germany

Source: nitpicker / Shutterstock.com

Sanofi (NASDAQ:SNY) stock is in the news as one analyst believes the latest court ruling is the “best-case scenario” for the drugmaker.

The big news here is U.S. District Judge Robin Rosenberg dismissing lawsuits concerning Zantac. The people behind these lawsuits claimed that the heartburn drug could cause cancer. According to Rosenberg, the plaintiff’s scientists “systemically utilized unreliable methodologies” in their cases.

With this dismissal, “thousands of potential lawsuits” against Sanofi and other drugmakers are no longer a burden. That frees Sanofi from the potential $8 billion in liabilities that could have been paid out had the company lost the case.

While it’s true that Sanofi may still have to deal with appeals from these lawsuits, the majority of them will likely end here. That’s a boon to SNY stock, as it means investors don’t have to worry about the effects the liabilities would have on business.

How This Affects SNY Stock

When news of the latest ruling broke yesterday, shares of SNY stock saw a massive rally. That saw the shares close out the day at $48.55 each. For the record, SNY stock started out trading on Tuesday at $45.11 per share.

SNY stock is down 1.4% as of Wednesday morning and down 5.7% since the start of the year.

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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2022/12/sny-stock-alert-why-1-analyst-says-zantac-ruling-is-best-case-scenario-for-drugmakers/.

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