2nd UPDATE: Govts Order More GlaxoSmithKline Swine Flu Drug

U.K.-based drugmaker GlaxoSmithKline PLC (GSK) Tuesday said governments around the world have so far ordered 440 million doses of its pandemic swine flu vaccine as they brace for a possible resurgence of the illness.

"Discussions continue with governments for further supplies," the company added in a statement.

In August, Glaxo, the world's second-largest drugmaker, said it had contracts in place to supply 291 million doses of the H1N1 vaccine. Twenty-two additional governments have ordered another 149 million doses, the company said.

First supplies of Glaxo's vaccine are scheduled to commence this week. A company spokeswoman declined to provide details on the delivery schedule but said shipments would be phased in to multiple destinations simultaneously.

Glaxo and other big pharmaceutical companies have raced to develop a vaccine against H1N1 swine flu ahead of a possible spread of the virus in the northern hemisphere this autumn and winter. Other drugmakers developing swine flu vaccines include Sanofi-Aventis SA (SNY), Novartis AG (NVS), AstraZeneca PLC's (AZN) MedImmune unit, Baxter International Inc. (BAX) and CSL Ltd (CSL.AU).

GlaxoSmithKline has not released terms on its government contracts for the vaccines. However, Chief Executive Andrew Witty in July said Glaxo was charging wealthy nations EUR7 per H1N1 vaccine shot and developing countries less. The drugmaker is also donating 50 million doses to the World Health Organization.

European regulators last month approved Glaxo's swine flu vaccine, called Pandemrix, amid deep concern about the new winter influenza season and an upturn in U.K. cases of swine flu.

The U.K. government's Health Protection Agency estimated there were 14,000 new cases of swine flu in England during the last full week of September, up from 9,000 the previous week, and 5,000 the week before that, indicating rising infections among school age children following the start of the academic year.

"It does suggest that during the summer months swine flu was sleeping, not dead," said Charles Stanley analyst Jeremy Batstone-Carr. "(GlaxoSmithKline's statement) is a pretty timely announcement."

Batstone-Carr said GlaxoSmithKline had first mover advantage in the swine flu vaccine field, but added that Tuesday's announcement was unlikely to make a big difference to the company's share price.

At 1102 GMT, Glaxo's shares were up 11 pence, or 0.9% at 1230 pence, in a stronger London market. The stock is largely unchanged from year-ago levels.

Company Web site: www.gsk.co.uk; www.gsk.com/

-By Jeffrey Sparshott, Dow Jones Newswires; [phone]; [e-mail]