STAFF at one of the region’s biggest employers – drugs company GlaxoSmithKline – have this morning been told that part of its antibiotics operation has been sold.
The pharmaceutical giant, which employs about 1,100 people at its site in Barnard Castle, has agreed a deal with German company Sandoz.
Workers in GSK's sites in Barnard Castle, County Durham, and Ulverston, in Cumbria, were told the for its cephalosporins antibiotics sections at both will shut.
At Barnard Castle, the Zinnat Supply Chain currently employees around 170 people and, whilst no job losses were announced today, all those posts are likely to be affected over the next four years as manufacturing gradually transfers to Sandoz's own network.
The company told The Northern Echo that manufacturing of other products at Barnard Castle is not impacted by this announcement.
A spokesperson said: "GSK has announced it has reached agreement with Sandoz to sell its Cephalosporin antibiotics business.
"This announcement means that manufacture of these products would transfer to Sandoz’s manufacturing network after a transfer period of approximately four years. At that time – currently expected to be in 2025 – and in the absence of any alternative, it would be GSK’s proposal to close its Cephalosporins manufacturing operations at Ulverston, Cumbria and the Zinnat building, Barnard Castle, County Durham.
"Today we informed colleagues at our Zinnat Supply Chain sites at Ulverston, Cumbria and Zinnat building, Barnard Castle, County Durham of the potential future impact to our manufacturing operations and we are offering support to them."
GlaxoSmithKline (GSK) began a strategic review of its cephalosporins antibiotics business back in 2017, to focus on innovative medicines and vaccines.
A sale was not achieved at that time but industry analysts said the option was put back on the table a year ago.
At Barnard Castle, the Business Unit known as the Cephs or former K-Block is the centre for GSK’s production and distribution of cephalosporin oral products in both tablet and suspension granule form.
It supplies more than 80 markets around the globe – the main ones being in China, Turkey, Spain, Poland, Greece, Germany, Romania, Vietnam, Philippines, UAE and Saudi Arabia.
One of its best known products is Zinnat which is prescribed for a range of conditions including pneumonia, nose, throat, urinary tract and skin infections.
GSK retains other antibiotic assets and in a company blog last year said it was “committed to continuing our research in this area.”
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