Vaccine Company GlaxoSmithKline Starts $175 Million Production Boost
Posted: Apr 14th, 2017 at 12:00AM
For GlaxoSmithKline (GSK), vaccines have been one of the financial bright spots following an asset swap with Novartis that has resulted in stellar sales. The two companies agreed to run a consumer health joint venture combining approximately $11 billion in sales. To boost both, GSK is building a plant in Marburg, Germany worth $175 million that will increase its capacity for the production of the meningococcal B shot. This investment was announced in October last year and its construction has officially begun.
The new facility will allow for in-house production of GSK's meningococcal B vaccine Bexsero. This will give the company complete control of the supply chain, according to spokesman Volker Husslein last week. Bexsero was approved in 2015 by the US and by the EU in 2016. The Marburg site is also the subject of a €10 million investment for the installation of mumps vaccine production, a key component of GSK’s MMRV (measles, mumps, rubella, and varicella) vaccine.
The plant will be a four-story, 9,000 square-meter antigen production space located in Marburg. This site is one of those that were acquired by GSK when it traded some of its cancer operations to Novartis in exchange for most vaccine operations of the Swiss company. The company is expected to start validation runs in the third quarter of the year 2020.
According to a statement by Jochen Reutter, manager of the site, GSK is pleased with soon moving the production for three of the four active components of the meningococcal B vaccine to Marburg. The new facility will allow Bexsero proteins production to be moved from the GSK Sandoz plant located in Kundl, Austria. Given that approximately 1,300 people currently work in the Marburg area, GSK intends to fill the 100 jobs needed for the operation of the facility from this population.
Additionally, GSK is transferring the production of its tetanus and diphtheria toxoids from Marburg to Godollo, Hungary so as to make room for the expanded production of Bexsero. To facilitate the move, the company is adding a $61.5 million facility in Hungary to accommodate the transferred work. According to Angela Hill, GSK director of external communications for vaccines, this move will add 100 jobs at the 10-year-old plant in Hungary. Work on this project is expected to start in August and if given regulatory approvals, manufacturing is anticipated in 2023.
The project will involve adding a new media preparation building and expanding production at the site. Needless to say, Marburg is set to continue production of GSK's Synflorix and Infanrix vaccines until their production can be successfully established in Godollo. This will ensure a constant supply of the vaccines. Hungary's government will also kick in a grant worth $6.1 million to aid in funding the project according to a Budapest Business Journal report that cited Hungarian news agency MTI news.
For GSK CEO, Andrew Witty, this is his last full year at the company following his stay at the helm of the company for the past decade. Initially, there was skepticism when Witty decided to concentrate on the production of lower margin areas such as consumer products and vaccines, trading off some older cancer drugs. GSK has, however, had success building on vaccines. During the company's Q4 conference call, Simon Dingemans, GSK CFO, communicated that vaccine sales for the UK-headquartered drug making company increased by 14% in 2016 to approximately $5.73 billion.
These sales outpaced growth in much larger pharma (by 3%) and consumer operations (by 9%). Infanrix raked in global sales worth £769 million in 2016 while Synflorix added £504 million to GSK. The booster immunization against diphtheria, tetanus, and pertussis added a further £470 million. GSK's flu shots FluLaval and Fluarix together jumped $517 million or 38% on the year. Their HPV shot, Cervarix, posted the biggest percentage decrease on the year falling by 14% to £81 million. In August last year, GSK pulled the vaccine from the US market.
According to the Daily Mail, one month after receiving the vaccines from Novartis, GSK was able to end a one yearlong pricing standoff between Novartis and the United Kingdom's National Health Service. Bexsero was then added to the UK's national immunization schedule for approximately 800,000 babies at a cost of £16 million. The deal was sealed for £20 per dose of Bexsero. According to Jeremy Hunt, UK Health Secretary, following this deal, Britain will become the first country globally to offer a nationwide meningitis vaccine program as reported in The Guardian.
A statement by GSK indicated that it was delighted to have reached the agreement and that it had moved rapidly since the beginning of March 2015 to conclude negotiations. As such, the company communicated that the agreement reached was offering the NHS fair value while allowing a reasonable return for GSK.
The Daily Mail also reports that Britain treats approximately 1,870 cases of meningitis B annually, mostly in children. 400 lifelong injuries and 120 deaths are witnessed every year as a result of this vaccine-preventable disease. Meningitis charities praised the deal indicating that it would spare families and save lives. When parents of thousands of children showed up at private clinics to have their children vaccinated after they missed the NHS program, shortages developed. In response to the "unexpected global demand," GSK boosted production of the shot within a couple of months.
GSK has reason to keep up its vaccine momentum as seen in its first Shingrix applications last year. Market-watchers are predicting the shot could increase in sales to $1 billion by 2021 because it would steal market share from Merck's Shingles Vaccine and drive uptake. As such, GSK expects a regulatory action on the shot in Europe and the US in this year's fourth quarter.
According to Dingemans, this will make 2018 the first year GSK sees "meaningful contribution" from the shingles vaccine. GSK has been seeking marketing approval for the vaccine for adults 50 years and older. Even though Merck's Shingles Vaccine and GSK's Shingrix have not been tested head to head, the latter has posted higher efficacy numbers. Additionally, the efficacy of Merck's Shingles Vaccine wanes after five years in individuals 60 years and older which could work in GSK's favor.
E7 is very fast, there electronic appt system and EMR are easy to use and they work well with my employer for all of the tests, vaccines, and...Read More
Very professional and fast!!Read More
Excellent and professional costumer service. I was in and out. The best part is the best reasonable pricing I found in all Clark County👍Read More
They were very professional, organized, and caring!Read More
The staff an nurses were very polite and informative about my shots I was getting. I recommend this place to everyone. Again thank u .Read More
The staff it’s very efficient and well educated, both times I been at this location has been a great experience.Read More
The customer service is always superb! The nurses, doctors and administrators are very thorough in their steps they are about to take. The best...Read More
great servicesRead More
Excellent staff and highly proficient/gentle booster/immunization administerer!Read More
Went here for vaccine for a trip to S. Africa. Staff friendly, knowledgeable and the wait time is minimal. Only thing they won't bill your...Read More
Very knowledgeable and professional! Appointment at 1:45 pm and they were ready, no waiting. Was in and out in less than 30 minutes. Great job by..Read More
Very Courteous, warm, friendly environment.Read More
Everyone was friendly, organized and very professional.Read More
The staff was very friendly and professional. I definitely recommend them to anyone who needs their services!Read More
There was no waiting, e7 had all vaccines that I needed for my trip and they were fast!Read More
very professional staff. All worked quickly to get me taken care of.Read More
Professional with quick results.Read More
The dr was very nice and staff was very friendly I was in and out pretty quickRead More
It’s simple, fast, and self-explanatory for plenty health needs!Read More
Very Clean Professional staff and Great Place to Get Testing done 👍Read More
Super time efficient, friendly and thorough with patient educationRead More
Very friendly staff, clean organized environment, appointment was easy to make and they sent reminders. Our test results are all on their online...Read More
Very quick & easy visit! The staff are very friendlyRead More
My doc put together a Very comprehensive discussion of where I might be at risk in South Africa over a 24 day itinerary and what vaccines to take..Read More
I like how easy it was to schedule the appointment, fill out the paperwork ahead of time online, being professionally greeted and treated, how the.Read More
The staff at the Rainbow location are AWESOME! I've never had a bad experience. I highly recommend the e7 Health Rainbow location.Read More
Always pleasant staff at the front desk and the medical folks are professional and courteousRead More
Courteous, efficient and the MA assisting me was kind and patient to his learner that was shadowing him.Read More
Quick, easy and very professionalRead More
Personable, friendly, quick. I had an appointment.Read More
1)I was scheduled for a two step tb test and up to that point they were great, reminded me of my upcoming appointment and everything. They took theRead More
I went to get vaccinated before my overseas trip. They are not cheap if you don't have insurance but well worth the visit. The staff is friendly...Read More
I came in to have blood drawn. The location is clean. The staff is very intelligent and helps you right away. My nurse was Alison. She drew two...Read More
I don’t write reviews, with that being said, Karen (phlebotomist) deserves all the praise in the world. Not only was she patient with me, she...Read More
Very fast and confidently.Read More
I really like the online portal e7 has so I can view documents and upcoming appointments. I've never spent over an hour at the Rainbow location...Read More
WONDERFUL EXPERIENCE, THE STAFF IS VERY NICE AND PROFESSIONALRead More
LOVE this place!! Upon getting a flu shot, I received amazing customer service and was in and out within 10-15 minutes!! They were very informativeRead More
Great experience!! Quick and easy process!! Received a flu shot and was in and out within 10 minutes or less!! Staff was so friendly and caring...Read More
QUICK EFFICIENT. FRIENDLY. PROFESSIONAL. .FROM. BEGINNING TO THE END. THANKZ. FOR THE SERVICE. .Read More
Quick and friendly staff. Very professional and efficient!Read More
Very courteous, professional, friendly and efficientRead More
Well-organized, fast service, staffs are very helpful !Read More
Everyone was very friendly and the customer service was impeccable!! Their professionalism and warm inviting environment made me feel comfortable..Read More
Super quick and easy process! They let you fill out paperwork before the appointment to expedite the appointment. So smart. They were also very...Read More
Staff was friendly, especially Melissa at the front desk and Lindy who handled most of my appointment (the blood work, etc.). The process was easy.Read More
Quick, friendly and professional - I didn't even have an appointment and was in and out in about 1/2 hour - got my results the following day...Read More
Great staff. Everyone was knowledgeable and friendly. I highly recommend e7 Health.Read More
E7 Health when I got to have a TB Test done for my other job I go there all the employees are friendly and polite there facilities are cleanRead More
Very professional, knowledgeable, and kind employees!!!Read More
Quick service and friendly staff.....Read More
My experience with E7 was fantastic and I highly recommend them. The clinic was clean, and the staff was very professional and curtious.Read More
Very fast and simple to register as a patient on line and make appointments. I was able to make a same day appointment and even change it to an...Read More
Pleasant, timely, and efficient. The travel doctor I talked to was helpful and dedicated to prepairing me for my trip. I'd highly recommend this...Read More
I went in for an employer-mandated drug test, and was impressed by this site...I was served with alacrity, and the process was seamless. If I ever.Read More
They staff and Doctors at so professional. They are very welcoming answer all your questions.Read More
Great place to go for vaccinations if you are uninsured!!! Quick and friendly service!!!Read More
I set my account up online which sped things up quite a bit when I came in. There wasn't much of a wait. Everyone was very professional and polite.Read More
Outstanding doctors office. The staff are cordial and treat patients like customers (as opposed to inconveniences, which I have experienced...Read More
Very friendly and professional staffRead More
Easy and quick experience. Staff were all very friendly!Read More
If you are in need of flushots, vaccinations etc. for work or travel this place has friendly employees and almost no wait times.Read More
Great customer service and timelyRead More
Very secure, place is super clean and fast serviceRead More
Definitely recommend this place. Fast service and efficiency. Excellent environment very clean. Affordable prices. Very friendly work team.Read More
This is my 2nd time coming here and I've always had a good experience. The staff is very courteous and friendly and the service was fast and easy..Read More
Very quick service and pleasant staffRead More
Completely incompetent staff. Spoke to an agent on the phone about making a vaccination appointment for my daughter and specified her age on the...Read More
Friendly and FastRead More
Friendly service and minimal wait time! Definitely, recommend!Read More
The services at e7 Health are excellent from scheduling an appointment to the office visits.Read More
After accepting a teaching job, I needed. TB rest. I walked in and was greeted right away. I was directed to fill out the form which was easy and..Read More
I have been here 3 times already, going through TB tests and a physical, and I have never been more impressed with both speed and quality of...Read More
They we're very friendly and professional. They also squeezed me in for a physical without an appointment. I was in from out of town so I really...Read More
The staff was very nice. Ms Sidney was wonderful. She explained the process effectively and efficiently.Read More
I had a great experience here. Easy appointment booking, was taken right on time. Everyone was extremely friendly, and all of the options were...Read More
Stuff was very knowledgeable and kind. I reccommend this location, every experience I had here was a good one.Read More
Loved it!Read More
Pain free intake process. I called and was able to make a next day morning appointment. The paperwork was emailed to me so it was filled out...Read More
There’s a variety of services, the receptionist is helpful and welcoming, and the prices of the services are affordable. I went in for a tb test.Read More
Very professional and conscientiousRead More
I love everything e7 health I recommend for everybodyRead More
Friendly staff and efficient service; Elizabeth at Horizon Ridge location, Henderson, was awesome!Read More
Awesome place! Good people, Great service!Read More