GSK takes orders for 195m swine flu doses
GlaxoSmithKline (GSK), the UK pharmaceuticals company, has received orders for 195 million doses of its swine flu vaccine and expects a sustained level of demand for pandemic medicine “over the next few years”.
The company added that it was on track to meet orders from governments and the World Health Organisation (WHO) to provide the H1N1 vaccine, with shipments expected in the second half of 2009.
Sales growth in Glaxo’s consumer division rose by 9 per cent to £1.2 billion in the six months to the end of June, with sales of vaccines up by 14 per cent to £800 million.
Glaxo said that it has also tripled production of Relenza, another flu drug, to reach 190 million treatment courses by the end of 2009. It is in talks with 50 governments and has agreements in place with the US Government to supply pandemic products worth $250 million. The group also announced donations to the WHO for supplies of the vaccine and Relenza to use in developing countries.
In a statement to the market, Andrew Witty, the chief executive of GSK, said: “In these last three months, governments have rapidly strengthened their pandemics stockpile and prevention strategies, and whilst we are currently seeing a heightened period of demand, it is likely that we will see a sustained level of orders for pandemic products over the next few years.”
Despite the strong rise in sales of flu vaccines, group turnover dropped by 2 per cent to £6.7 billion due to generic competition in the US pharmaceuticals market. Its operations in emerging markets grew by 14 per cent, while the sales of other new vaccines to prevent gastroenteritis and cervical cancer also boosted half year results. Profits for the six months were flat at £3.7 billion. The dividend, payable on July 9, has risen to 14p from 13p in 2008.
Glaxo also said that it has developed a meningitis vaccine, Menhibrix, for children aged under 2 months that will be filed in the US in the second half of the year.
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