GSK takes steps to meet demand of avian flu treatment

GlaxoSmithKline is to signal that it is willing to licence production of its avian flu treatment Relenza to outside manufacturers in order to ensure sufficient supplies to tackle a pandemic and to pre-empt calls that the company be stripped of patent rights on the drug.

The UK's largest drug maker is also hoping to advertise the merits of Relenza to governments making contingency plans for a public health emergency, and to avoid the controversy that has dogged Roche, the maker of Tamiflu, which is struggling to keep up with orders. Politicians in the US, Australia and the developing world have suggested Roche should be ordered to allow other manufacturers to make the product.

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GSK, reporting its third-quarter results today, is expected to say that it could out-licence Relenza to other manufacturers, particularly in the developing world. The company is already boosting its own manufacturing capacity and will be quizzed closely on the volume of its additional orders.

The company made 11 million doses of Relenza last year and has invested in equipment at several manufacturing sites, including at Montrose in Scotland, that will boost capacity to 31 million doses in 2007.

GSK's Relenza acts in a similar way as Tamiflu to help fight the flu virus but it is regarded as less reliable because it is inhaled rather than taken in pill form. That might mean people with breathing difficulties do not get the correct dose.

However, hopes for Relenza sales have helped boost GSK shares and one City analyst said the company might see an additional $1.4bn (£800m) in annual sales when the new capacity comes on-stream.