GSK’s Shares Up on EU Permission to Sell Bird-Flu Vaccine

By Alice Turner
21:51, May 19th 2008
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GSK’s Shares Up on EU Permission to Sell Bird-Flu Vaccine


GlaxoSmithKline, the United Kingdom-based pharmaceutical, biological, and healthcare company, announced Monday it has received the go-ahead to sell its bird-flu vaccine in the 27 member countries of the European Union as well.

The permission it’s an historic milestone for the drug maker. GSK is the first company which was granted permission to sell its vaccine (Prepandrix) in the EU.

"This vaccine marks a significant step in the world's ability to cope with an influenza pandemic," CEO Jean-Pierre Garnier said in a statement in which he also labeled the EU permission as a “testament to GSK scientists who have pioneered the approach to pre-pandemic vaccination.”

Glaxo's Prepandrix protects against the deadly H5N1 virus, more commonly known as bird flu, and its release comes as experts forecast a major outbreak of the virus.

Although the worldwide bird flu pandemic didn’t occur yet, mainly because the Influenza A virus subtype H5N1 hasn’t yet been able to transmit itself from human to human, the London-based drug manufacturer offers the governments of the EU member states to stockpile the Prepandrix just in case.

Numerous states all over the world, including the United States, have already signed contracts to buy Preparix in anticipation of a possible bird flu epidemic.

According to GSK, the studies carried out to find out how the vaccine works showed that Preparix is highly effective against multiple strains.

However, GlaxoSmithKline won’t be the only company with this product on the market for long. Sanofi-Aventis and Novartis are currently developing their own bird flu vaccines.

GlaxoSmithKline, which employs about 6,000 people in the Triangle, saw its shares go up 20 pence (39 cents), or 1.8%, to £11.59 ($22.63), on Monday afternoon in London.

However, some experts believe the EU permission might be a positive that boosted GSK’s shares, but it wont’ be a big sales boost. The interest in a possible bird flu epidemic has lost the high place in the public's interest, thus determining many governments to pass on the stockpiling.

Furthermore, if the virus breaks out and involves a strain different from H5N1, the Preparix would become futile.



© 2007 - 2008 - eFluxMedia
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