Flu rush delays job cuts
DEMAND for the swine flu vaccine has delayed job cuts at the biggest pharmaceutical plant in the North-east.
GlaxoSmithKline, which employs 1,100 people at Barnard Castle, announced earlier this year that it would cut 200 staff over the next 12 months. But in a statement yesterday it said some of those would be put on hold.
The pharma giant should begin shipping a swine flu vaccine by September.
It is one of several firms commissioned by the World Health Organisation (WHO) to produce a vaccine for the pandemic virus, and has already agreed contracts for 195 million doses in 16 countries worldwide; 95 million doses will be in Britain. It is in discussions with another 50 countries about its treatments.
The drug firm said it expected further “significant orders” of the H1N1 vaccine and announced plans to triple the availability of its swine flu treatment Relenza to 190 million doses per year by the end of 2009.
In addition Glaxo has agreements worth £152.3m with the US Government to supply the ingredients for the vaccine and Relenza.
A spokesperson for the company’s Barnard Castle site said: “The production is scheduled through to the end of the year, and the site will be delaying some redundancy dates and retaining staff in order to support this short-term increase in workload.
“The exact number of staff affected will not have a significant impact on proposed head reduction and detailed plans for this campaign are being developed at the moment.
“The long term plan for the site remains on track; which is to reduce the number of staff over the next 12 months as part of a programme to improve productivity and efficiency with the loss of around 200 jobs as part of that process.”
The news came as Glaxo reported its financial results - but added it was too early for the effects of the swine flu pandemic to appear on its balance sheet.
In the last three months, Glaxo’s turnover was down 2%, hit by poor performance in its US pharmaceuticals business.
Sales in this division were down 15% to £2.3bn as a fistful of drug patents expired.
But the company said revenues across all other areas grew, with particularly strong performances in emerging markets, up 14% to £700m and consumer healthcare, with sales up 9% to £1.2bn.
Pre-tax profits were £2.06bn in the second quarter, up from £1.8bn in the same period last year.
