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CHINESE FIRM TO MANUFACTURE INFLUENZA DRUG

September 29, 2006

Chinese drugmaker Simcere Pharmaceutical has signed a licensing agreement with GlaxoSmithKline (GSK) to manufacture and sell generic versions of GSK's Relenza (zanamivir) in China, Indonesia, Thailand, Vietnam and all least-developed countries. Relenza is approved in many markets for the prophylaxis and treatment of influenza A and B in children and adults.

"GSK is doing everything we can to prepare for a global influenza pandemic, including expanding production of Relenza and developing a pandemic vaccine," said David Stout, president of pharmaceutical operations. "This agreement with Simcere is intended to expand available supplies of zanamivir in areas of the world that may be on the front line of a possible influenza pandemic."

Of the more than 240 cases reported in which humans have been infected with H5N1 avian influenza virus, more than half have occurred in Asia-Pacific nations or in least-developed countries. Experts have expressed concern that H5N1 could mutate to become a strain that is more easily transmitted between humans, leading to a global pandemic.

GlaxoSmithKline has an active research and development program targeted at both seasonal and pandemic influenza and has committed more than $2 billion to expand capacity for manufacturing flu vaccine and Relenza.