GlaxoSmithKline and JSC Binnopharm enter vaccine production alliance in Russia

Issued: London UK & Moscow, Russia

GlaxoSmithKline (GSK) and JSC Binnopharm (Binnopharm) today announced an alliance to enable the local secondary manufacture of a number of GSK vaccines in Russia. The agreement was signed in Moscow during the session of the Russian-British Intergovernmental Steering Committee (ISC) for Trade and Investment.

Under this alliance, GSK will supply bulk vaccine and provide technology and expertise to enable Binnopharm to undertake the secondary manufacture, including filling and packaging of a number of innovative GSK vaccines in accordance with international current Good Manufacturing Practice (cGMP) standards. Binnopharm will be responsible for gaining approval of their facilities to allow supply of GSK cervical cancer, rotavirus and pneumococcal vaccines under Binnopharm’s trademark for the Russian public market.

The local manufacture of these vaccines should help Russia to modernise its National Immunisation Calendar in the future, adding additional vaccination against highly prevalent infections such as human papillomavirus (HPV), rotavirus and Streptococcus pneumoniae.

GSK will book sales of the bulk vaccine supplied to Binnopharm through this alliance. No further financial details of the agreement have been disclosed.

Commenting on the agreement, Abbas Hussain, President, Emerging Markets & Asia Pacific, GSK said, “This agreement is an example of the flexible approach we are taking to make innovative vaccines more available in emerging markets through local partnerships. GSK has one of the broadest and fastest growing vaccines businesses in the world. This alliance with Binnopharm should ensure that more of these innovative vaccines are made available in Russia to benefit public health.”

Maxim Uvarov, General Manager, Binnopharm said: “The prompt implementation of this joint project between Binnopharm and GSK is a testament to the continued investment in our existing facilities and the quality of the Russian staff and management who have worked efficiently to create an international and innovative business partnership. Our aim through signing this partnership agreement is to create a leading biotechnology company in Russia.”

Dr Vince Cable, UK Secretary of State for Business, Innovation and Skills added: “GlaxoSmithKline's alliance with Binnopharm shows just what can be accomplished when companies work together to achieve their goals. Not only does this demonstrate trust between companies sharing their knowledge across borders, but ordinary people will see the benefits. As a result, there will be more locally manufactured vaccines available in Russia covering illnesses from pneumonia through to HPV. This is a very positive outcome and one which emphasises the strong pharmaceutical links that the UK shares with Russia.”

GlaxoSmithKline – one of the world’s leading research-based pharmaceutical and healthcare companies – is committed to improving the quality of human life by enabling people to do more, feel better and live longer. For further information please visit www.gsk.com

Binnopharm (Moscow, Zelenograd, 100% charter capital belonging to JFC Sistema) is one of the largest biotechnological and pharmaceutical complexes in Russia (more than 32 thous. m2) with the largest in Russia biotech medicines manufacture, complete production cycle in accordance with GMP (Good Manufacturing Practice) standards. It is equipped with multipurpose production lines for the production of tablets, capsules, ampoules, sprays, aerosols.

Cautionary statement regarding forward-looking statements
Under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, GSK cautions investors that any forward-looking statements or projections made by GSK, including those made in this announcement, are subject to risks and uncertainties that may cause actual results to differ materially from those projected. Factors that may affect GSK' s operations are described under 'Risk Factors' in the 'Business Review' in the company' s Annual Report on Form 20-F for 2009.