GSK to close German flu vaccine plant as demand for egg-based shots falls
The shift also comes as pharmaceutical companies invest in newer technologies that could change how influenza vaccines are developed and manufactured.
GERMANY—British pharma giant GSK plans to consolidate its influenza vaccine manufacturing operations at one site, putting 641 jobs at its Dresden facility in Germany at risk.
The British pharmaceutical company currently produces egg-based influenza vaccines at plants in Dresden and Ste Foy, Canada.
However, declining demand for traditional egg-based flu vaccines has prompted GSK to review the future of both facilities.
The company has now decided to retain its Canadian operation and close the Dresden site.
German trade union Industriegewerkschaft Bergbau, Chemie, Energie (IGBCE) said the decision could affect 641 workers at the Dresden plant.
“Due to decreasing demand for traditional egg-based flu vaccines, we have more capacity than we need,” GSK said in a statement.
“We have therefore conducted a review of the viability of our two flu vaccine manufacturing sites.”
The company said the Canadian facility could meet its expected future requirements while operating sustainably and competitively.
Declining demand for traditional flu vaccines
GSK’s decision follows a difficult period for its influenza vaccine business.
The company’s flu vaccine sales fell 25% last year amid what it described as competitive pressure in the US, according to its full-year financial results released earlier this year.
The shift also comes as pharmaceutical companies invest in newer technologies that could change how influenza vaccines are developed and manufactured.
On September 1, GSK announced plans to begin a Phase 3 clinical trial of its messenger RNA (mRNA) influenza vaccine candidate, FLUm3HA.b 3NA, in September.
The candidate uses an optimized B strain haemagglutinin (HA), a surface protein targeted by influenza vaccines.
GSK is among several pharmaceutical companies exploring mRNA technology as an alternative to conventional egg-based vaccine production.
Restructuring programme targets cost savings
The closure of the Dresden facility also forms part of a broader restructuring programme at GSK.
In July, newly appointed Chief Executive Officer Luke Miels outlined a three-year initiative designed to deliver £1.9 billion ($2.5 billion) in annual cost savings by 2029.
The programme is expected to involve £2.4 billion (US$3.2 billion) in total one-time costs.
Miels said around 15% of the planned savings would come from changes to GSK’s supply chain.
The company also plans to generate 45% of the savings by simplifying processes and improving procurement across its systems, consultancy arrangements, and other support functions.
The remaining 40% of the restructuring will focus on shifting resources away from GSK’s mature product portfolio and towards specialty medicines and newer products.
The Dresden closure therefore comes alongside wider changes to GSK’s manufacturing network and business operations as the company adjusts its investment priorities and responds to changes in the vaccine market.
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