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Released February 19, 2020 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--GlaxoSmithKline (NYSE:GSK) (GSK) (Brentford, England) is laying off 720 workers at its Belgian vaccines manufacturing operation in Wavre.
The cuts will come from its manufacturing, R&D and support functions and most of the employees that will be affected are managers. A further 215 temporary work contracts will not be renewed. The move is part of what the company called a two-year transformation to prepare for separation of the GSK group into two new companies, one for prescription drugs and vaccines, and the new joint venture for over-the-counter products. Last October, Industrial Info reported on GSK and Pfizer (NYSE:PFE) (New York, New York) planning to merge their consumer health care divisions with combined sales of approximately £9.8 billion ($12.7 billion). For additional information, see October, 2019, article - GSK and Pfizer Merging Consumer Health Businesses.
Patrick Florent, managing director of GSK Vaccines in Belgium, said: "I understand the emotion that this announcement can arouse among our collaborators who make enormous efforts every day to ensure the availability of our vaccines for those who need them. It is important that we start discussions today with our social partners through the Works Council in order to examine in more detail the potential impact of this transformation project on our employees. GSK takes its responsibilities to its employees very seriously and ensure that proposed changes are addressed responsibly, in accordance with the values of the company. Finally, I would like to reconfirm GSK's strategic commitment in Belgium, which will remain at the heart vaccine operations."
GSK Vaccines, one of three divisions of GSK (vaccines, prescription drugs and consumer health products) has a portfolio of more than 30 vaccines, with16 more vaccines in development. With more than 9,000 employees, GSK is the largest pharmaceutical company in Belgium.
"Belgium plays a strategic role in the global network of the GSK vaccines division, not only where the headquarters are located, but also the historic R&D centre for vaccines in Rixensart, as well as the largest manufacturing site of vaccines to the world in Wavre," the company stated. "To ensure future growth, competitiveness and prepare for the future, GSK Vaccines is considering changes essential to maintain its long-term position in the field of vaccinology. GSK will increase its R&D investments to accelerate development and market launch new vaccines. In addition, in order to optimally respond to global demand, the company plans to strengthen the automation of its production units to increase capacity and make investments in technology, with the intention of investing more than 500 million euro ($547 million) over the next three years in Belgium."
The company posted strong 2019 fiscal results, with its leading shingles vaccine Shingrix accounting for around $2.3 billion in sales, more than double what it sold in 2018. In November, GSK struck a 955 million-euro ($1.1 billion) deal to sell its two travel vaccines to Denmark's Bavarian Nordic (Kvistgaard, Denmark). The deal is for the travel vaccines Rabipur (traded as Rabavert in the U.S.) for the prevention of rabies, and Encepur for the prevention of tick-borne encephalitis. Both were acquired from Novartis in 2015 when GSK bought out its vaccines business [excluding influenza treatments] for $5.25 billion while at the same time offloading its oncology division to Novartis for $16 billion. For additional information, see November 6, 2019, article--GlaxoSmithKline Sells Rabies and Tick Vaccines in $1.1 Billion Deal.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
The cuts will come from its manufacturing, R&D and support functions and most of the employees that will be affected are managers. A further 215 temporary work contracts will not be renewed. The move is part of what the company called a two-year transformation to prepare for separation of the GSK group into two new companies, one for prescription drugs and vaccines, and the new joint venture for over-the-counter products. Last October, Industrial Info reported on GSK and Pfizer (NYSE:PFE) (New York, New York) planning to merge their consumer health care divisions with combined sales of approximately £9.8 billion ($12.7 billion). For additional information, see October, 2019, article - GSK and Pfizer Merging Consumer Health Businesses.
Patrick Florent, managing director of GSK Vaccines in Belgium, said: "I understand the emotion that this announcement can arouse among our collaborators who make enormous efforts every day to ensure the availability of our vaccines for those who need them. It is important that we start discussions today with our social partners through the Works Council in order to examine in more detail the potential impact of this transformation project on our employees. GSK takes its responsibilities to its employees very seriously and ensure that proposed changes are addressed responsibly, in accordance with the values of the company. Finally, I would like to reconfirm GSK's strategic commitment in Belgium, which will remain at the heart vaccine operations."
GSK Vaccines, one of three divisions of GSK (vaccines, prescription drugs and consumer health products) has a portfolio of more than 30 vaccines, with16 more vaccines in development. With more than 9,000 employees, GSK is the largest pharmaceutical company in Belgium.
"Belgium plays a strategic role in the global network of the GSK vaccines division, not only where the headquarters are located, but also the historic R&D centre for vaccines in Rixensart, as well as the largest manufacturing site of vaccines to the world in Wavre," the company stated. "To ensure future growth, competitiveness and prepare for the future, GSK Vaccines is considering changes essential to maintain its long-term position in the field of vaccinology. GSK will increase its R&D investments to accelerate development and market launch new vaccines. In addition, in order to optimally respond to global demand, the company plans to strengthen the automation of its production units to increase capacity and make investments in technology, with the intention of investing more than 500 million euro ($547 million) over the next three years in Belgium."
The company posted strong 2019 fiscal results, with its leading shingles vaccine Shingrix accounting for around $2.3 billion in sales, more than double what it sold in 2018. In November, GSK struck a 955 million-euro ($1.1 billion) deal to sell its two travel vaccines to Denmark's Bavarian Nordic (Kvistgaard, Denmark). The deal is for the travel vaccines Rabipur (traded as Rabavert in the U.S.) for the prevention of rabies, and Encepur for the prevention of tick-borne encephalitis. Both were acquired from Novartis in 2015 when GSK bought out its vaccines business [excluding influenza treatments] for $5.25 billion while at the same time offloading its oncology division to Novartis for $16 billion. For additional information, see November 6, 2019, article--GlaxoSmithKline Sells Rabies and Tick Vaccines in $1.1 Billion Deal.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
