Glaxo warns of vaccination slump as it strikes deal for 60 million Covid jabs

Crucial vaccination programmes have ground to a halt during lockdowns around the world, drug maker GlaxoSmithKline warned as it struck a deal with ministers for 60 million doses of its potential Covid jab.

Innoculation rates for other diseases have slumped as countries focus on fighting coronavirus, Glaxo said, adding that its financial performance will suffer this year if take-up does not recover by the third quarter as expected.

The FTSE 100 company also signed an agreement with the Government for doses of a coronavirus vaccine it is developing with French rival Sanofi.

The vaccine will be provided to the UK if it proves effective when human trials begin in September.

Britain has been racing to buy up potential Covid jabs so they can be used as soon as testing is completed. The country has now secured 250 million doses of four different types of vaccine, with hopes growing that the first versions will be cleared for use in a matter of months.

Glaxo said: "There remain notable risks to business performance over the balance of the year.

“In particular, the outcome is dependent on the timing of a recovery in vaccination rates, particularly in the US, which we anticipate in the third quarter. If we were to experience a delay in this recovery we could see a significant impact in 2020."

However, boss Emma Walmsley insisted that where government restrictions have been lifted, immunisation rates have improved. She noted that vaccinations for children are now back to pre-Covid levels.

Ms Walmsley said: “Clearly, in the second quarter with lockdown measures, we have seen an impact as people’s confidence in being able, or willingness in being able to access vaccines slowed a bit.

“We are very encouraged by early signs that are coming through, and also particularly by the policies that have been put in place by different governments to really drive catch-up cohorts, not least related to flu.”

Glaxo's revenues for the six months to June stood at £16.7bn, up 8pc on a year earlier. But there was a sharp drop off in the second quarter as disruption from the pandemic set in, causing revenues to fall 3pc to £7.62bn.

Statutory half-year profits rose by 74pc to £4.5bn, boosted by a sale of the firm's consumer brands including Horlicks to Unilever.

Sales within GSK's vaccines division fall 29pc to £1.1bn as patients avoided doctors surgeries.