Update expected from Glaxo on swine flu drugs

One of the firms at the forefront of fighting the swine flu pandemic is today expected to give an update on its anti H1N1 drugs.

GlaxoSmithKline is one of several companies charged with producing a vaccine for H1N1 after the World Health Organisation (WHO) declared it a pandemic last month.

The firm, which also produces flu treatment Relenza, will report its second quarter results at midday.

Analysts predict the firm could make around €1.49bn from its vaccine next year.

According to the WHO, more than 700 people are estimated to have died from swine flu worldwide, with 30 deaths in the UK.

Glaxo is tipped to have seen a boost to its sales in the three months to the end of June, helped by the weakness in the pound as the company sells many of its products abroad.

While Glaxo announced in May that it had received advance orders from countries including the UK, the firm’s balance sheet is not yet expected to reflect an upturn from swine flu’s spread.

Production of an H1N1 vaccine is already under way at the firm’s German and Canadian plants, however, and analysts expect the firm will outline the expected benefits of the drug.

Jeremy Batstone-Carr of Charles Stanley said: “Operationally, although much has been made of GSK’s Relenza treatment for swine flu, we do not expect this to be a particular feature within these results given the company’s earlier comments relating to only limited supplies available at the time of the pandemic alert announcement.

“We do, however, expect the company to comment on Relenza and other possible anti-virals going forward.”

The UK’s Health Protection Agency (HPA) estimates there were 55,000 new cases of swine flu in England the week before last, including people visiting GPs and those who are looking after themselves at home.

Glaxo said in May that it had agreed to supply nearly 130 million doses of the swine flu vaccine to the UK, France, Belgium and Finland.

It also said it would donate 50 million doses to developing countries.

The vaccine is expected to come before the end of the year.

Yesterday, Glaxo also announced a deal to develop and supply an on-site test, which it said would prevent delays in diagnosis.

Although as swine flu has spread, it is increasingly being diagnosed over the telephone.

The expected boost to sales would come at a welcome time for Glaxo, which was hit by the impact of competition from new generic drugs in the first quarter of the year, when underlying pre-tax profits fell more than 30%.