The Tokyo High Court on Tuesday overturned a lower court ruling that had ordered the government and the Japanese unit of British drugmaker AstraZeneca PLC to pay damages to plaintiffs over side effects caused by the lung cancer drug Iressa.

Presiding Judge Takashi Sonoo, deciding that the government and AstraZeneca K.K. should not be held liable, turned down the plaintiffs' demand for a combined ¥77 million in compensation.

In March, the Tokyo District Court ordered AstraZeneca K.K., the importer and seller of Iressa, and the government to pay a combined ¥17.6 million to two of the four plaintiffs — relatives of three victims who died due to the drug's side effects. Both the plaintiffs and defendants appealed that ruling.