IVAX Pharmaceuticals is shedding 35 jobs as an 'essential short term-measure'.

The losses are coming at the Preston Brook site in Runcorn.

A source said: "The employees have been told the losses are due to lack of demand for their products in the US because one of their partner companies has been massively overestimating forecasts and has not been pushing Ivax products as they should have.

"There is no demand for Ivax current product range in the US resulting in a warehouse in Kentucky holding almost 12 months' stock."

Company spokesman Claire Phillpot said: "We can't comment on commercial details."

She also said there were not any plans for further job losses 'just at the moment'.

Ivax will continue to employ more than 280 people at the Runcorn facility.

The company makes sterile products, for use in nebulisers to treat asthma and chronic obstructive pulmonary, as well as solutions for injection and unit-dose eye drops.

Runcorn is also home to IVAX's warehouse and distribution facility in the UK. The firm received £3.8m in grants to help its £27.4m move to Preston Brook in 2003, when 385 jobs were supposed to be safeguarded.

Ivax Pharmaceuticals is the largest UK subsiduary of the American firm, Ivax Corporation, based in Miami.

sbailey@worldgroup.co.uk