GlaxoSmithKline update: Government orders for pandemic H1N1 vaccine

London UK – LSE Announcement - Following declaration of the pandemic by the World Health Organization (WHO) in June 2009, GlaxoSmithKline (GSK) has been working closely with governments to respond to their changing needs as understanding of the H1N1 pandemic has increased.

GSK today confirmed that approximately 130 million doses of its pandemic H1N1 adjuvanted vaccine were shipped to governments in the fourth quarter of 2009. These shipments, together with pandemic vaccine products supplied to the US and other governments in the quarter, amount to provisional, unaudited sales of £835 million.

The company is also donating 60 million doses of its vaccine to the WHO for distribution to developing countries. This will be charged as an SG&A cost to GSK in the fourth quarter of 2009.

Shipments of the vaccine continue to be delivered in the first half of 2010 and GSK is in ongoing discussions with many governments, as their needs evolve. This includes renegotiation of contracts with governments who have announced changes to their planned immunisation programmes and with governments who have placed new orders for the pandemic vaccine. It is therefore too early to say what the final number of doses supplied and the value of these orders will be.

Pandemics by their nature are unpredictable and GSK recognises that governments needs are changing. GSK is committed to finding solutions for governments to the ongoing pandemic and the current supply of H1N1 vaccine.

As the WHO has stated, the circulation of the H1N1 influenza virus remains active and geographically widespread, with more than 200 countries and overseas territories or communities worldwide with laboratory confirmed cases.

GSK has been conducting research and development into vaccines for a pandemic since 1997 to enable Governments to protect their populations in the event of an outbreak. The company has also invested more than £2bn in developing technologies to respond to an influenza pandemic and increase capacity at its vaccine and antiviral manufacturing sites.

Information regarding development of GSK’s vaccine is available at: www.gsk.com/media/pandemic-flu.htm

GlaxoSmithKline – one of the world’s leading research-based pharmaceutical and healthcare companies – is committed to improving the quality of human life by enabling people to do more, feel better and live longer. For further information please visit www.gsk.com.

This press release is intended for business journalists and analysts/investors. Please note that this release may not have been issued in every market in which GSK operates.