GlaxoSmithKline slips after France cuts back on swine flu vaccine
The FTSE 100 may be on the rise again - up nearly 30 points at the moment - but GlaxoSmithKline is missing out on the rally.
Shares in the pharmaceutical group are down 28p at 1311.5p on concerns about the revenue prospects for its swine flu vaccine. This has been prompted by news yesterday that France has cancelled 50m doses of H1N1 vaccine from Glaxo and other suppliers, around half of the shots it had ordered. Traders said that the initial thought was that two shots per person would be needed, but now one may be sufficient.
The French move followed decisions by Spain, Germany and Switzerland last month to cut deliveries. Analysts are therefore becoming increasingly pessimistic about revenue and earnings prospects for the vaccine.