Porton Biopharma, a drug development and production company owned by the Department of Health and Social Care, will be shut down, CSW can reveal.
The firm was part of Public Health England (the predecessor to the UK Health Security Agency) until 2015, when it was spun out as a state-owned biopharmaceutical company. The company manufactures the leukaemia drug Erwinase and is the sole manufacturer of the UK’s licensed anthrax vaccine.
A Department of Health and Social Care spokesperson said: "Porton Biopharma Limited will cease manufacturing operations following a detailed review of its operations.
“We are working to help ensure patients can continue to access the treatments they need from alternative global suppliers.”
The health secretary is the sole shareholder in Porton Biopharma, with UKHSA responsible for the operational relationship.
The company is based at Porton Down, alongside UKHSA and the Defence, Science and Technology Laboratory.
UKHSA’s 2023-24 annual report and accounts, published in December, warned that there was a risk of Porton Biopharma’s “business viability being significantly reduced due to a change in market access”and said this could lead to “loss of political and societal confidence”. CSW understands this relates to Porton Biopharma losing access to the US market for its Erwinase product.
The accounts added: “There is a risk that the fair value of Porton Biopharma Ltd will fluctuate because of changes in market process for its flagship product, although at 31 March 2024, the risk has diminished given the financial asset has been valued at nil.” CSW understands the flagship product being referred to is Erwinase.
The annual report also said the challenges faced by Porton Biopharma had been shared with senior officials and ministers so that decisions could be made on its future, "protecting the interests of the taxpayer”.
CSW understands that all 110 staff who work at the firm are at risk of redundancy and that collective redundancy consultation is ongoing and due to end on 21 March.