A DRUGS firm operating a County Durham plant is offloading more than 100 brands in a £1bn savings restructure.

GlaxoSmithKline will shed the “non-core” marques under plans aimed at shaving annual costs by 2020.

The company is also cutting more than 30 pre-clinical and clinical programmes, including those involved in treatments of hepatitis C and psoriasis, revealing spending will be prioritised for respiratory and HIV and infectious diseases, and potential areas of oncology and immuno-inflammation.

The update, announced today (Wednesday, July 26), comes just days after the business, which runs a plant in Barnard Castle, revealed it would spend nearly £40m on the County Durham base, though bosses admitted separate restructuring plans could affect jobs.

The firm plans to pump fresh cash into Barnard Castle through to 2020 to strengthen work on asthma, HIV and lupus treatment.

However, it is also exploring the potential sale of an antibiotics business, which The Northern Echo understands could impact on a small number of posts.

The changes are the first major announcements made by new chief executive Emma Walmsley, who, speaking today (Wednesday, July 26), cheered the company’s progress after second quarter results showed a 12 per cent rise in revenue to £7.3bn.

The firm also managed to lower its pre-tax loss to £178m compared to £318m reported for the same period last year.

A spokesman said: “A key driver of the new savings will be through realising efficiency improvements in the supply chain.

“This will include changes to the manufacturing network, divestment and exit of more than 130 non-core tail brands (£500m in annual sales), reductions in overheads, improved procurement savings and more strategic supplier relationships.”

The company is also reviewing its rare diseases unit and considering options for future asset ownership.

However, the spokesman added savings from the divestments are being earmarked to fund new product launches and research and development, as well as offsetting price pressures.

According to the company’s investment plans for Barnard Castle, which are part of a national £140m spending drive, £20m will be used to install an assembly and packing line for a new medicine for severe asthma.

A further £14m will support manufacturing of a HIV medicine currently in development, with another £5m allocated for assembly and packaging facilities to increase capacity to make a lupus treatment.

However, since the commitment is primarily on technology and equipment, bosses say they don’t expect to create too many jobs.

A spokesman told the Echo that no decision has yet been made on a sale, adding any changes would have a limited effect on Barnard Castle since the base forms only a small part of the antibiotics operation that also includes sites in Cumbria and Italy.

Last year, GlaxoSmithKline, which provides work for more than 1,000 people in the region, revealed a £275m expansion that included a commitment to strengthen Barnard Castle.

It has since begun work on an aseptic facility, which will provide a base to make and supply injectable liquids for treatments of HIV and respiratory and auto-immune diseases.

The Echo also previously revealed the plant could support the launch of a fresh remedy for lupus, with bosses confirming they were submitting plans for regulatory approval for a new therapy to ease symptoms such as facial rashes and extreme tiredness.