Soaring demand for Swine Flu vaccines to boost GlaxoSmithKline's revenue

Soaring demand for GlaxoSmithKline's (GSK) swine flu vaccines Pandemrix and Relenza has led to a boo

Analysts say that as governments are stockpiling medicines, the company's revenues are likely to increase by £1bn in 2010.

GSK has received 22 government contracts since last summer. As the demand is about 60 per cent higher than for usual seasonal vaccines, GSK is outsourcing production to third-party manufacturers.

The government is keen on inoculating the most vulnerable groups of people, such as pregnant women, frontline health workers, and young children.

However, "the boost to revenue is a drop in the ocean when you consider group sales for this year are estimated at £28bn," said Andrew Witty, GSK's chief executive. He added that the company is keen on reducing its reliance on a few blockbuster medicines in developed countries, and diversifying into emerging markets.