Patents expiry forces GSK cuts
8 Jan 2003
GlaxoSmithKline is to axe 400 jobs at its plant in Ulverston, Cumbria with the phase-out of production of aminocephalosporanic acid.
Known as 7-ACA, the compound is an intermediate in the production of antibiotics.
The company says that the decision is the result of loss of patent protection for cephalosporin antibiotics. These garner annual sales of some £750million for GSK, but low-cost generic versions are now putting margins under severe pressure.
The company is working with the chemical industry trade union Amicus to avoid compulsory redundancies.
GlaxoSmithKline has agreed to sell its Montrose plant, which makes pharmaceutical active ingredients, to Akzo Nobel subsidiary Diosynth for an undisclosed sum. The plant will continue to make ingredients for GSK under contract. The deal safeguards 500 jobs.
