GSK delivers double-edged sword
Company announces investments, the sale of several products and a proposal to close a UK manufacturing site.
GSK has set out several announcements made by the company to improve the efficiency and competitiveness of its manufacturing network. These include both investments for respiratory and HIV medicines manufacturing in the UK and strategic reviews, including the sale of several products and a proposal to close a UK manufacturing site.
Between now and 2020, the company plans to invest more than £140 million at its Ware, Hertfordshire, Barnard Castle, Co Durham and Montrose, Scotland sites. The investments will support expansion of manufacturing for respiratory and HIV medicines. This new investment is in addition to the £275 million announced last year and investment of over £1.2 billion in UK manufacturing since 2012.
In pharmaceuticals, the company is to undertake a strategic review of its cephalosporins antibiotics business, with an option to sell the business including the associated manufacturing facilities. These medicines are produced at GSK sites in Ulverston, Cumbria, Verona in Italy and part of its Barnard Castle site. The company has also decided to outsource some manufacturing activity at its Worthing site in the UK. GSK will continue to manufacture other antibiotics such as Augmentin and will continue to conduct research on new antibiotics. The company has also decided not to proceed with a previously planned investment to build a biopharmaceutical facility in Ulverston as it no longer needs the additional capacity.
In its Consumer Healthcare business, the company intends to sell its Horlicks brand in the UK and is proposing to close the associated manufacturing site in Slough where UK product is made. In addition, GSK intends to sell the MaxiNutrition brand in the UK. GSK is also exploring options to divest some other smaller non-core nutrition brands.
Overall, GSK employs a total of around 17000 people across the UK of which 5000 are in UK manufacturing operations. The proposals announced today for Worthing and Slough will result in a reduction of approximately 320 permanent jobs over the next 4 years.
Roger Connor, President, GSK Global Manufacturing and Supply said: “We have a substantial manufacturing presence in the UK and continue to support the network with new investment of more than £140 million in the next 3 years. At the same time, we have had to make some decisions which we know will cause uncertainty for some of our employees. We will do all we can to support them through this process.”
Philip Thomson, President, Global Affairs, GSK, said: “We are continuing to invest in science and our core businesses in the UK and we continue to see the UK as an attractive place for the life sciences industry. We are working constructively with the Government and others to develop an ambitious plan for the sector as part of the UK’s new industrial strategy.”
None of the announcements made by the company have resulted from the UK’s decision to leave the European Union.
Related News
-
News Moderna to buy OriCiro Genomics in USD $85 million deal
Pharmaceutical company Moderna acquires genomics services company OriCiro Genomics, based in Tokyo, Japan, to boost mRNA therapeutics development and manufacturing portfolio. -
News New year, new prices: at least 350 drugs in USA to see price increases in January
Drugmakers such as Pfizer, GSK, BMS, AstraZeneca, and Sanofi are planning to raise prices for at least 350 unique drugs in the United States in early January. -
Sponsored Content 2023 Pharma Trend Outlook: Innovation, Resilience, and Pharma 4.0
Download our 2023 Pharma Trends Outlook report to discover the trends set to shape the pharmaceutical landscape in the new year, with expert opinions and insight from across the pharmaceutical value chain. -
News Strategic partnership between AstraZeneca and G42 Healthcare to increase pharmaceutical manufacturing in Abu Dhabi
A comprehensive, long-term partnership agreement between AstraZeneca and G42 Healthcare is set to enhance local drug manufacturing in Abu Dhabi, UAE, and bolster pharmaceutical manufacturing innovation within the country. -
News CordenPharma joins sustainability initiative to achieve Net Zero
The CDMO has joined the environmental initiative looking to align private sector companies with those aims upheld by the Paris Agreement to reduce global warming. -
News AstraZeneca acquires Neogene in shift into cell-based cancer therapies
AstraZeneca has recently announced that it will be acquiring the biotechnology company Neogene Therapeutics as part of it’s expansion into cell-based cancer treatments.
-
News A mRNA universal flu vaccine is in early stages of development
Researchers from the University of Pennsylvania have developed a universal flu vaccine using nanoparticle encapsulated mRNA. -
News Biovac partnership to increase African vaccine manufacturing capabilities
South African biopharma company Biovac signs a partnership deal with the International Vaccine Institute to develop and manufacture an oral cholera vaccine for both the African and global market.
Position your company at the heart of the global Pharma industry with a CPHI Online membership
-
Your products and solutions visible to thousands of visitors within the largest Pharma marketplace
-
Generate high-quality, engaged leads for your business, all year round
-
Promote your business as the industry’s thought-leader by hosting your reports, brochures and videos within your profile
-
Your company’s profile boosted at all participating CPHI events
-
An easy-to-use platform with a detailed dashboard showing your leads and performance