To Bolster Shingrix Production, GSK Invests $100 Million in Montana Manufacturing Facility
GlaxoSmithKline is investing heavily in a Montana manufacturing facility that specializes in the manufacture of the company’s two-year-old shingles vaccine, Shingrix, which is eying blockbuster status. The success of Shingrix has compelled GSK to significantly invest in its manufacturing.
Late Wednesday, U.K.-based GSK said it is plunking down $100 million for its manufacturing facility in Hamilton, Montana. The funding will be used to expand the production capacity of key components of the adjuvant system used in several of GSK’s vaccines, including its shingles vaccine, Shingrix, as well as its malaria vaccine. The Hamilton vaccines facility currently manufactures components of GSK’s essential adjuvant technologies, which this investment will expand further, the company said in a brief announcement.
“For more than a decade, our Hamilton facility has supported GSK’s adjuvant system development program,” Jack Bailey, president of U.S. Pharmaceuticals at GSK said in a statement. “By expanding the adjuvant system production capabilities in Hamilton, we will continue to deliver long-term and sustainable supply for key vaccines, including Shingrix.”
Shingrix was approved in 2017 and quickly became the go-to shingles vaccine, replacing rival drugmaker Merck’s shingles vaccine Soztavax. Shingrix has become a strong revenue driver for the company. In the final quarter of 2018, Shingrix earned about $285 million.
Over the next few years, the Hamilton site expansion is expected to add a combination of temporary construction and contracting jobs, as well as new permanent positions, including scientists, engineers and manufacturing and quality professionals, the company added. The Hamilton facility is one of nine GSK manufacturing sites in the United States, and 86 sites globally, that produce a variety of prescription medicines, vaccines and consumer healthcare products.
The 193,000-square-foot Hamilton site is the sole manufacturing facility for Monophosphoryl Lipid (MPL), the world’s first bacterially-derived adjuvant. MPL is a crucial component in our vaccines for a wide range of diseases—including, human papillomavirus, hepatitis B vaccine, and vaccine candidates in development, GSK said. GSK is dedicated to investing in and supporting communities by creating high-quality jobs in areas like R&D and manufacturing, the company said. There are approximately 200 employees at the facility, with about half of them having advanced educational degrees, according to GSK’s website. The company did not specify if there will be additional jobs created due to the funding.
While GSK is investing in its Montana facility, the company did announce some job cuts last week for a facility in the U.K. The cuts were implemented to reduce redundancies as GSK implements its long-term strategy focused on oncology, the immune system and genetics. R&D head Hal Barron laid out the framework for the new strategy last year.
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