Jobs are likely to be lost after pharmaceutical giant GlaxoSmithKline (GSK) signalled the closure of part of its plant in County Durham.
The company has announced the sale of its Cephalosporin antibiotics business to Swiss firm Sandoz which will mean it closing part of its plant at Barnard Castle, plus another site at Ulverston, in south Cumbria.
The $350m deal - which could reach $500m depending on reaching financial milestones - inclues an agreement to continue manufacturing at the two Northern sites for the next four years, after which it will switch to Sandoz plants in Austria.
It comes as part of GSK’s strategy to simplify its business and invest in developing new products new products.
GSK said: “Cephalosporin manufacturing will transfer from GSK sites to Sandoz following a four-year manufacturing and supply agreement (MSA) and subsequent transfer of manufacturing operations.
“GSK proposes to close its Cephalosporins manufacturing operations once the transfer of manufacturing operations to Sandoz is complete and the MSA has come to an end, currently expected to be in 2025. GSK is providing support to potentially affected employees and is committed to supporting the local communities affected.”
The deal is subject to regulatory approvals.
GSK last week reported a surge in profits last year with consumers turning to vitamins and minerals alongside strong sales in respiratory drugs.
Total sales rose 1% in 2020 to £34.1bn, with pre-tax profits rising 12% to £6.97bn for 2020. But the company struggled in the final quarter of the year, with sales falling 2% to £8.74bn. Pre-tax profits dropped 52% to £821m.
