UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR
15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the
month of July 2024
Commission
File Number 001-15170
GSK plc
(Translation
of registrant's name into English)
980 Great West Road, Brentford, Middlesex, TW8 9GS
(Address
of principal executive office)
Indicate
by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form
20-F . . . .X. . . . Form 40-F . . . . . . . .
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GSK delivers continued strong performance and upgrades 2024
guidance
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Broad-based performance drives sales, core profit and core EPS
growth:
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●
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Total
Q2 2024 sales £7.9 billion +13%
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●
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Vaccines
sales +1%, +3% ex COVID. Shingrix £0.8
billion -4%
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●
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Specialty
Medicines sales +22%. HIV sales +13%. Oncology sales more
than doubled at £0.4 billion
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●
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General
Medicines sales +12%. Trelegy £0.8
billion +41%
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●
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Total
operating profit -22% and Total EPS -27% for Q2 2024 primarily
reflected higher charges for CCL(1) remeasurements
driven by improved longer term HIV prospects and foreign currency
movements
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●
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Core
operating profit +18% (with further positive impact of 3% ex COVID)
and Core EPS +13% (with further positive impact of 4% ex COVID).
This reflected continued leverage from strong sales and favourable
product and regional mix, partly offset by continued increased
investment in R&D and growth assets, and lower royalty
income
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●
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Cash
generated from operations in the quarter £1.7 billion with
Free cash flow of £0.3 billion
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(Financial Performance – Q2 2024 results unless otherwise
stated, growth % and commentary at CER, ex COVID is excluding
COVID-19 solutions as defined on page 60).
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Q2 2024
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Year to date
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£m
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%
AER
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%
CER
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£m
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%
AER
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%
CER
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Turnover
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7,884
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10
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13
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15,247
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8
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12
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Turnover ex COVID
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7,884
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10
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13
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15,246
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9
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13
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Total
operating profit
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1,646
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(23)
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(22)
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3,136
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(26)
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(20)
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Total
operating margin %
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20.9%
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(8.9ppts)
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(9.1ppts)
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20.6%
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(9.3ppts)
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(8.4ppts)
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Total
EPS
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28.8p
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(28)
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(27)
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54.5p
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(29)
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(24)
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Core
operating profit
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2,513
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16
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18
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4,956
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16
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22
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Core
operating margin %
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31.9%
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1.6ppts
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1.3ppts
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32.5%
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2.3ppts
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2.9ppts
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Core
EPS
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43.4p
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12
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13
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86.5p
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14
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20
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Cash
generated from operations
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1,650
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2
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2,776
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46
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Continued R&D progress with growth prospects strengthened in
all key therapeutic areas:
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●
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Infectious
Diseases: FDA approval for Arexvy in adults aged 50-59 at
increased risk from RSV; filings accepted for meningitis (ABCWY)
vaccine
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●
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HIV:
regimen selection for CAB-ULA, and data for new 3rd generation
integrase inhibitor, support portfolio progression and long-term
growth outlooks
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Respiratory/Immunology:
Pivotal data for depemokimab (SWIFT 1/2) support filings as first
ultra-long-acting biologic for severe asthma
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Oncology:
Pivotal data for Blenrep
(DREAMM-8) support regulatory submissions (EU filed; US H2 2024).
Data supporting expanded use of Jemperli in patients with endometrial
cancer presented (regulatory decisions expected H2 2024). Approval
for Omjjara received in
Japan
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2024 guidance upgraded; Q2 2024 dividend of 15p declared continue
to expect 60p full year dividend:
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●
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2024
turnover growth increase of 7% to 9% (previously 5% to 7%); Core
operating profit growth of 11% to 13% (previously 9% to 11%); Core
EPS growth of 10% to 12% (previously 8% to 10%)
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Guidance all at CER and excluding COVID-19
solutions
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Emma Walmsley, Chief Executive Officer, GSK:
"GSK's
momentum this year continues with excellent second quarter
performance, reflecting strong operational execution and the
strengthening breadth of our portfolio to both prevent and treat
disease. Q2 sales grew in all areas, with Specialty Medicines in
particular benefitting from new product launches in oncology and
HIV. In R&D, so far this year, we have secured approvals or
filings for 10 major opportunities and reported positive data from
7 phase III trials. We have also strengthened capabilities in key
technology platforms and completed investments to develop new mRNA
vaccines, ultra-long-acting HIV medicines and a promising new
medicine for severe asthma. All this supports our future growth and
confidence to bring meaningful innovation to
patients".
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The Total results are presented in summary above and on page 8 and
Core results reconciliations are presented on pages 20 and
23. Core results are a non-IFRS measure that may be
considered in addition to, but not as a substitute for, or superior
to, information presented in accordance with IFRS. The following
terms are defined on page 60: Core results, £% or AER% growth,
CER% growth,COVID-19 solutions, turnover excluding COVID-19
solutions; and other non-IFRS measures. GSK provides guidance on a
Core results basis only, for the reasons set out on page 18. All
expectations, guidance and targets regarding future performance and
dividend payments should be read together with ‘Guidance and
outlooks, assumptions and cautionary statements’ on page 62.
(1) Contingent consideration liability is abbreviated to
CCL.
2024 Guidance
GSK
revises its full-year guidance at constant exchange rates (CER).
All guidance, expectations and full-year growth rates exclude any
contributions from COVID-19 solutions.
GSK
delivered a strong first half 2024 performance with excellent
business momentum, including increased sales growth of Specialty
Medicines, particularly reflecting successful new launches in
Oncology and for long-acting HIV medicines. General Medicines,
including Trelegy, also
continued to perform better than expected. Sales are now expected
to grow between 7 to 9 per cent at CER (previously "upper part of
the range of between 5 to 7 per cent increase"). Improved sales
performances in Specialty and General Medicines are expected to
more than offset lower sales growth of Vaccines this year, which
reflects revised recommendations for RSV vaccinations issued in
June by the US Advisory Committee on Immunization
Practices.
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All Guidance excludes the contributions of COVID-19
solutions
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New 2024 guidance at CER
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Previous 2024 guidance at CER
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Turnover
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Increase
between 7% to 9%
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Increase
towards the upper part of the range of between 5% to
7%
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Core
operating profit
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Increase
between 11% to 13%
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Increase
between 9% to 11%
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Core
earnings per share
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Increase
between 10% to 12%
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Increase
between 8% to 10%
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Growth
in the second half of 2024 will be impacted by the annualisation of
product launches and stocking impacts as compared with the same
period last year, particularly in Vaccines and
Oncology.
This
guidance continues to be supported by the following revised
turnover expectations for full-year 2024 at CER:
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All turnover expectations exclude the contributions of COVID-19
solutions
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New 2024 guidance at CER
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Previous 2024 guidance at CER
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Vaccines
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Increase
low to mid-single digit per cent in turnover
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Increase
of high single-digit to low double-digit per cent in
turnover
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Specialty
Medicines
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Increase
mid to high teens per cent in turnover
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Increase
of low double-digit per cent in turnover
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General
Medicines
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Increase
low to mid-single digit per cent in turnover
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Decrease
of mid-single digit per cent in turnover
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Core
Operating profit is now expected to grow between 11 to 13 per cent
at CER (previously 9 to 11 per cent increase), despite a 6
percentage point impact to Operating Profit growth following the
loss of the majority of Gardasil royalties effective from the
beginning of 2024. SG&A is expected to grow low-single digits,
with effective cost control driving operating leverage and further
margin improvements. R&D expenditure is expected to increase
slightly below sales growth and for royalty income to be around
£600 million for the full year.
Core
Earnings per share is now expected to increase between 10 to 12 per
cent at CER, (previously 8 to 10 per cent increase) reflecting
continued higher operating profit with lower net finance costs.
Expectations for non-controlling interests remain unchanged
relative to 2023, and GSK continues to anticipate an increase in
the Core effective tax rate to around 17% for the full year
following implementation of new global minimum corporate income tax
rules which came into effect from 1 January 2024 in line with the
Organisation for Economic Co-Operation and Development
‘Pillar 2’ model framework.
Additional commentary
Dividend policy
The
Dividend policy and the expected pay-out ratio remain unchanged.
Consistent with this, and reflecting strong business performance
during the quarter, GSK expects to declare a dividend for Q2 2024
of 15p per share and for the full year 2024 60p.
COVID-19 solutions
For the
full year 2024, GSK does not anticipate any further COVID-19
pandemic-related sales or operating profit. Consequently, and in
comparison to 2023, it is anticipated that the full year growth in
sales and Core operating profit will be adversely impacted by one
and two percentage points, respectively.
Exchange rates
If
exchange rates were to hold at the closing rates on 30 June 2024
($1.27/£1, €1.18/£1 and Yen 203/£1) for the
rest of 2024, the estimated impact on 2024 Sterling turnover growth
for GSK would be -4% and if exchange gains or losses were
recognised at the same level as in 2023, the estimated impact on
2024 Sterling Core Operating Profit growth for GSK would be
-6%.
Results presentation
A
conference call and webcast for investors and analysts of the
quarterly results will be hosted by Emma Walmsley, CEO, at 12 noon
BST (US ET at 7am) on 31 July 2024. Presentation materials
will be published on www.gsk.com prior to the webcast and a
transcript of the webcast will be published
subsequently.
Notwithstanding
the inclusion of weblinks, information available on the
company’s website, or from non GSK sources, is not
incorporated by reference into this Results
Announcement.
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Turnover
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Q2 2024
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Year to date
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£m
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Growth
AER%
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Growth
CER%
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£m
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Growth
AER%
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Growth
CER%
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Shingles
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832
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(5)
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(4)
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1,777
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4
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7
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Meningitis
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323
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21
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24
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622
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14
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17
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RSV
(Arexvy)
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62
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–
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–
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244
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–
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–
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Influenza
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7
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(70)
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(65)
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20
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(43)
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(40)
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Established
Vaccines
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775
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(5)
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(2)
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1,613
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(1)
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2
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Vaccines ex COVID
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1,999
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1
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3
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4,276
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9
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12
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Pandemic
vaccines
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–
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(100)
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(100)
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-
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(100)
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(100)
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Vaccines
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1,999
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(1)
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1
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4,276
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5
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8
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HIV
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1,757
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11
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13
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3,370
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11
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14
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Respiratory/Immunology
and Other
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911
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15
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18
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1,546
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11
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15
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Oncology
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356
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>100
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>100
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629
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>100
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>100
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Specialty Medicines ex COVID
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3,024
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20
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22
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5,545
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17
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21
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Xevudy
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–
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(100)
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(100)
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1
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(97)
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(97)
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Specialty Medicines
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3,024
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20
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22
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5,546
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17
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20
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Respiratory
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2,065
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15
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18
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3,790
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6
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10
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Other
General Medicines
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796
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(5)
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(1)
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1,635
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(6)
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(2)
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General Medicines
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2,861
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9
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12
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5,425
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2
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6
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Total
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7,884
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10
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13
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15,247
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8
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12
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Total ex COVID
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7,884
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10
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13
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15,246
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9
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13
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By Region:
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US
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4,147
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15
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17
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7,736
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12
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15
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Europe
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1,672
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2
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3
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3,293
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(2)
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–
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International
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2,065
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7
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13
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4,218
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8
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15
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Total
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7,884
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10
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13
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15,247
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8
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12
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Turnover ex COVID is excluding COVID-19 solutions during the years
from 2020 to 2023 and is a non-IFRS measure defined on page 60 with
the reconciliation to the IFRS measure Turnover included in the
table above. Financial Performance – Q2 2024 results unless
otherwise stated, growth % and commentary at
CER.
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Q2 2024
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Year to date
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£m
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AER
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CER
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£m
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AER
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CER
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Vaccines
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Total
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1,999
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(1%)
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1%
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4,276
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5%
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8%
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Excluding COVID
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1,999
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1%
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3%
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4,276
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9%
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12%
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In Q2 2024, Vaccine sales growth was driven by increased
demand for Meningitis vaccines and uptake of Arexvy in the US in line with expected waning seasonal
demand. Shingrix grew YTD but declined in the quarter as channel
inventory reductions, changes in retail vaccine prioritisation and
lower demand in the US more than offset growth in International and
Europe. Both the quarter and YTD growth comparators were adversely
impacted due to COVID-19 solution sales in
2023.
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|
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Shingles
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832
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(5%)
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(4%)
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1,777
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4%
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7%
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Sales
of Shingrix, a vaccine
against herpes zoster (shingles), declined in the quarter, while
continuing to grow YTD.
In the
US, sales in the quarter decreased by 36% at AER and CER reflecting
channel inventory reductions and changes in retail vaccine
prioritisation in part due to a transition to a new CMS(1) rule that changed
how pharmacies process reimbursements from payers. In addition
lower demand was driven by challenges activating harder-to-reach
consumers which remains a priority with the US cumulative
immunisation penetration rate at the end of Q1 2024 reaching 37% of
the more than 120 million US adults(2) currently
recommended to receive Shingrix, up six percentage
points(3)
since the end of Q1 2023.
Shingrix grew significantly in International in the quarter
and YTD, driven by a national immunisation programme in Australia
and regional funding in Japan together with supply to our
co-promotion partner in China despite phasing of some expected
sales into Q3. In Europe, Shingrix grew in the quarter and YTD
from expanded public funding, partly offset by declining demand in
Germany. Markets outside the US now represent 64% of Q2 2024 global
sales (Q2 2023: 46%), with Shingrix launched in 45 countries. The
majority of these markets have average cumulative immunisation
rates below 5%.
Footnotes:
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(1)
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Centers for Medicare & Medicaid
Services
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(2)
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United States Census Bureau,
International Database, Year 2024
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(3)
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Reflects latest United States
Census Bureau data and delivery orders
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Q2 2024
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Year to date
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|
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£m
|
AER
|
CER
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£m
|
AER
|
CER
|
|
Meningitis
|
323
|
21%
|
24%
|
|
622
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14%
|
17%
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In Q2
2024 and YTD, both key Meningitis vaccines grew double-digit.
Bexsero, a vaccine against
meningitis B, grew primarily reflecting favourable pricing mix in
the US, recommendation in Germany, increased demand in Australian
regional immunisation programmes and launch in Vietnam, partly
offset by tender phasing in Europe. Menveo, a vaccine against meningitis
ACWY, grew due to favourable delivery timing in International and
the Center for Disease Control (CDC) purchasing patterns in the
US.
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RSV (Arexvy)
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62
|
–
|
–
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|
244
|
–
|
–
|
Arexvy, a respiratory syncytial virus (RSV) vaccine for
older adults, continued to demonstrate consumer uptake and leading
market share. In the US, Q2 2024 sales were £56 million, with
the overwhelming majority of doses administered in the retail
setting. Arexvy maintained
around two-thirds of the retail vaccination share, while demand
decreased overall in line with anticipated respiratory virus
seasonality patterns. Nearly eight million of the 85 million US
adults(1)
aged 60 and older have been protected by Arexvy since the launch in Q3 2023. The
performance YTD also reflected initial tender deliveries in Saudi
Arabia, continued consumer uptake in Canada and new launch
inventory build in Brazil. While Arexvy is approved in 49 markets
globally, 12 countries had national RSV vaccination recommendations
for older adults and 5, including the US, had reimbursement
programmes in place at the quarter end.
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Established
Vaccines
|
775
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(5%)
|
(2%)
|
|
1,613
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(1%)
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2%
|
Established
Vaccines declined in Q2 2024, reflecting unfavourable CDC stockpile
movements for Rotarix and
Infanrix/Pediarix in the
US, partly offset by increased supply of measles, mumps, rubella,
and varicella (MMRV) vaccines and higher demand for Infanrix/Pediarix in International. YTD
sales were also impacted by competitive pressure in the US for
Infanrix/
Pediarix.
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|
|
|
|
|
|
|
|
|
Specialty Medicines
|
Total
|
3,024
|
20%
|
22%
|
|
5,546
|
17%
|
20%
|
|
Excluding COVID
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3,024
|
20%
|
22%
|
|
5,545
|
17%
|
21%
|
Specialty Medicines sales increased by double digits in the
quarter, reflecting continued growth across disease areas, with
strong performances in HIV, Respiratory/Immunology and
Oncology.
|
|
|
|
|
|
|
|
|
|
HIV
|
1,757
|
11%
|
13%
|
|
3,370
|
11%
|
14%
|
In Q2
2024 HIV delivered 13% growth, which was primarily driven by a 2
percentage point increase in market share versus Q2 2023 as a
result of strong patient demand for Oral 2DR (Dovato, Juluca) and long-acting medicines
(Cabenuva, Apretude). The YTD growth was also
primarily driven by strong patient demand, whilst benefitting from
favourable pricing, including the positive impact from channel mix
including adjustments to returns and rebates.
|
|
|
|
|
|
|
|
|
|
Oral
2DR
|
727
|
23%
|
25%
|
|
1,367
|
20%
|
23%
|
Oral
2-drug regimens sales in the quarter were £727 million, which
now represents 41% of the total HIV portfolio. Dovato continues to be the highest
selling product in the HIV portfolio with sales of £551
million in the quarter and growing 30% at CER versus Q2
2023.
|
|
|
|
|
|
|
|
|
|
Long-Acting
Medicines
|
317
|
50%
|
52%
|
|
584
|
61%
|
65%
|
Long-Acting
Medicine sales in the quarter now represent 18% of the total HIV
portfolio compared to 13% for Q2 2023 and contributed more than 50%
of the total HIV growth. Cabenuva sales in Q2 2024 were
£245 million and growing 42% at CER driven by strong patient
demand. Apretude sales in
Q2 2024 were £72 million, growing £36 million at AER;
£37 million at CER compared to Q2 2023.
|
|
|
|
|
|
|
|
|
|
Respiratory/Immunology and Other
|
911
|
15%
|
18%
|
|
1,546
|
11%
|
15%
|
Sales
primarily comprise contributions from Nucala in respiratory and Benlysta in immunology. In Q2 2024,
sales growth for Nucala and
Benlysta increased, driven
by patient demand globally across US, European and International
markets. YTD performance was slightly lower due to US Q1 2024
performance, where the growth of the medicines remained broadly
stable due to the impact of channel inventory reduction following a
channel inventory build in Q4 2023.
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|
|
Nucala
|
482
|
14%
|
17%
|
|
856
|
11%
|
15%
|
Nucala, is an IL-5 antagonist
monoclonal antibody treatment for severe asthma, with additional
indications including chronic rhinosinusitis with nasal polyps,
eosinophilic granulomatosis with polyangiitis (EGPA), and
hypereosinophilic syndrome (HES). In Q2 2024, sales growth was
driven by strong performances globally across all regions, which
reflected higher patient demand for treatments addressing
eosinophilic-led disease.
Footnote:
|
|
|
|
(1)
|
United States
Census Bureau, International Database, Year
2024
|
|
|
|
|
|
|
|
|
|
|
|
Q2 2024
|
|
Year to date
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
Benlysta
|
418
|
17%
|
20%
|
|
678
|
11%
|
15%
|
Benlysta, a monoclonal antibody treatment for Lupus,
continues to grow consistently in Q2 2024, representing strong
demand and volume growth in US, European and International regions,
with bio-penetration rates having increased across many
markets.
|
|
|
|
|
|
|
|
|
|
Oncology
|
356
|
>100%
|
>100%
|
|
629
|
>100%
|
>100%
|
In Q2
2024, Oncology sales growth increased driven by strong patient
growth for Zejula, a
PARP(1),
Jemperli, a
PD-1(2)
blocking antibody, and Ojjaara/Omjjara, a daily JAK1/JAK2 and
ACVR1(3)
inhibitor. Jemperli, a
medicine for front-line treatment in combination with chemotherapy
for patients with dMMR/MSI-H primary advanced or recurrent
endometrial cancer, continued to grow strongly and delivered sales
of £108 million in the quarter. Ojjaara/Omjjara, a treatment for
myelofibrosis patients with anaemia, launched in the US in Q3 2023
and in the UK and Germany in Q1 2024, has seen strong uptake since
launch and delivered £85 million of sales in the
quarter.
|
|
|
|
|
|
|
|
|
|
Zejula
|
165
|
41%
|
44%
|
|
306
|
32%
|
35%
|
Zejula delivered continued double-digit
sales growth in the quarter and YTD, with strong performances
across all regions. Growth globally was sustained with increased
patient demand and higher volumes, further enhanced by positive
price impacts in the US including impacts from launch of the tablet
formulation in the US in Q3 2023.
|
|
|
|
|
|
|
|
|
|
General Medicines
|
2,861
|
9%
|
12%
|
|
5,425
|
2%
|
6%
|
Sales include contributions from both the Respiratory and Other
General Medicine portfolios. In Q2 2024, sales growth increased
primarily driven by Trelegy, a chronic obstructive pulmonary disease (COPD)
and asthma medicine, with strong demand across all regions and
pricing benefits from channel and segment mix and adjustments to
returns and rebates in the US. Performance was adversely impacted
by the removal of the Average Manufacturer Price (AMP) cap on
Medicaid drug prices in the US. This removal impacted
Advair, Flovent, and Lamictal due to significant pricing reductions, reduced
commercial contracting, and the decision to discontinue
branded Flovent. However, this has been fully offset by the
increased use of authorised generic versions of Advair and Flovent while, significantly, continuing to provide access
to patients.
|
|
|
|
|
|
|
|
|
|
Respiratory
|
2,065
|
15%
|
18%
|
|
3,790
|
6%
|
10%
|
In Q2
2024 and YTD, sales growth reflected Trelegy's strong performance in all
regions and the increased demand for Anoro, particularly in Europe and
International. Seretide/Advair and other respiratory
declined due to the impact of continued generic erosion in Europe
and International markets. As mentioned above, in the US adverse
impacts from the removal of the AMP cap were fully offset by the
increased use of authorised generic versions of Advair and Flovent, providing access to medicines
for patients.
|
|
|
|
|
|
|
|
|
|
Trelegy
|
842
|
38%
|
41%
|
|
1,433
|
33%
|
38%
|
Trelegy is the most prescribed single inhaler triple therapy
(SITT) treatment worldwide for COPD and asthma. In Q2 2024 sales
growth further increased with strong growth across all regions,
reflecting patient demand, single-inhaled triple therapy class
growth, and increased market share. Around half of the growth in
the quarter was driven by price benefit from channel and segment
mix as well as adjustments to returns and rebates.
|
|
|
|
|
|
|
|
|
|
Seretide/Advair
|
298
|
(7%)
|
(5%)
|
|
580
|
(12%)
|
(9%)
|
Seretide/Advair is a combination treatment used to treat
asthma and COPD. In Q2 2024, the decrease in sales reflected
continued generic erosion from competitor products in Europe and
International. Broadly stable performance in the US reflected
impacts of the removal of the AMP cap on Medicaid drug prices in
the US on branded Advair,
offset by the increased use of authorised generic
versions.
|
|
|
|
|
|
|
|
|
|
Other General Medicines
|
796
|
(5%)
|
(1%)
|
|
1,635
|
(6%)
|
(2%)
|
The
performance in Q2 2024 and YTD was adversely impacted by ongoing
generic competition globally, and continued impacts to Lamictal’s performance in the US
from the removal of the AMP cap on Medicaid drug prices. This
performance was partially offset by increased antibiotic growth in
International markets.
Footnotes:
|
|
|
|
(1)
|
PARP: a Poly ADP ribose
polymerase
|
|
(2)
|
PD-1: a programmed death receptor-1
blocking antibody
|
|
(3)
|
JAK1/JAK2 and
ACVR1: once a-day, oral JAK1/JAK2 and activin A receptor type 1
(ACVR1) inhibitor
|
By Region
|
|
|
|
|
|
|
|
|
|
|
|
Q2 2024
|
|
Year to date
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
US
|
Total
|
4,147
|
15%
|
17%
|
|
7,736
|
12%
|
15%
|
|
|
Excluding COVID
|
4,147
|
15%
|
17%
|
|
7,736
|
12%
|
15%
|
Vaccine
sales decreased in Q2 2024 driven by Shingrix reflecting channel inventory
reductions, changes in retail vaccine prioritisation and lower
demand driven by challenges activating harder-to-reach customers
which remains a priority. In addition, adverse CDC stockpile
movements impacted Established Vaccines. This was partly offset by
Arexvy continued uptake and
leading market share. YTD performance also reflected the strong
Shingrix comparator of
2023.
In Q2
2024, sales growth of Specialty Medicines increased, following
adverse inventory channel impacts in Q1 2024 in Nucala and Benlysta in the US. Specialty Medicines
continued to grow YTD driven by Oncology and HIV performance and
continued growth in Nucala
and Benlysta.
General
Medicine’s growth in Q2 2024 and YTD was primarily driven by
increased demand for Trelegy, with strong volume growth
driven by patient demand, growth of the SITT market, and price
benefits from channel mix and adjustments to returns and rebates.
Performance continues to be impacted following the removal of the
AMP cap on Medicaid drug prices, which particularly impacted
Advair, Flovent and Lamictal. However this was fully offset
by the increased use of authorised generic versions of Advair and Flovent, providing access to medicines
for patients.
|
|
|
|
|
|
|
|
|
|
|
Europe
|
Total
|
1,672
|
2%
|
3%
|
|
3,293
|
(2%)
|
–
|
|
|
Excluding COVID
|
1,672
|
3%
|
5%
|
|
3,293
|
2%
|
4%
|
In Q2
2024 and YTD, Vaccine sales growth excluding COVID-19 solutions
reflected Shingrix growth
across several markets following public funding expansion and
Bexsero recommendation in
Germany partly offset by lower Shingrix demand in Germany and
decreased tender sales for Established Vaccines and Bexsero.
Specialty
Medicines sales grew in the quarter and YTD by a double-digit
percentage due to the performance in Oncology, Benlysta in immunology, and
Nucala in respiratory
including the impact of new indication launches. HIV growth
continued in the quarter and YTD at a high single digit
percentage.
General
Medicines sales were broadly stable in the quarter and YTD,
reflecting strong growth in Trelegy and Anoro, offset by a decrease in other
respiratory medicines.
|
|
|
|
|
|
|
|
|
|
|
International
|
Total
|
2,065
|
7%
|
13%
|
|
4,218
|
8%
|
15%
|
|
|
Excluding COVID
|
2,065
|
8%
|
14%
|
|
4,217
|
10%
|
16%
|
In Q2
2024, sales excluding COVID-19 solutions increased 8% at AER and
14% at CER, which reflected year-on-year exchange movements in
several International markets compared to Q2 2023.
Vaccines'
double-digit growth in Q2 2024 and YTD was driven by the expansion
of public funding for Shingrix in Australia and Japan and
supply to our co-promotion partner in China together with increased
supply and higher demand for Established vaccines.
Specialty
Medicine’s double-digit growth in the quarter and YTD was
driven by HIV, Nucala in
Respiratory, Benlysta in
Immunology, and Zejula in
Oncology.
General
Medicines sales grew low single digit percentage in the quarter and
YTD, with Trelegy and
Antibiotics delivering growth offset by a decrease in other
respiratory medicines.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Results
|
Q2 2024
|
|
Year to date
|
|
|
£m
|
|
%
AER
|
|
%
CER
|
|
£m
|
|
%
AER
|
|
%
CER
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
7,884
|
|
10
|
|
13
|
|
15,247
|
|
8
|
|
12
|
|
Cost of
sales
|
(2,122)
|
|
10
|
|
13
|
|
(4,092)
|
|
6
|
|
7
|
|
Selling,
general and administration
|
(2,465)
|
|
9
|
|
13
|
|
(4,552)
|
|
3
|
|
7
|
|
Research
and development
|
(1,477)
|
|
10
|
|
12
|
|
(2,911)
|
|
12
|
|
14
|
|
Royalty
income
|
144
|
|
(36)
|
|
(37)
|
|
295
|
|
(27)
|
|
(27)
|
|
Other
operating income/(expense)
|
(318)
|
|
|
|
|
|
(851)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
1,646
|
|
(23)
|
|
(22)
|
|
3,136
|
|
(26)
|
|
(20)
|
|
Net
finance expense
|
(150)
|
|
(1)
|
|
1
|
|
(284)
|
|
(13)
|
|
(12)
|
|
Share
of after tax profit/(loss) of associates
and joint ventures
|
(1)
|
|
|
|
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
1,495
|
|
(25)
|
|
(23)
|
|
2,850
|
|
(27)
|
|
(21)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
(191)
|
|
|
|
|
|
(465)
|
|
|
|
|
|
Tax rate %
|
12.8%
|
|
|
|
|
|
16.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation
|
1,304
|
|
(25)
|
|
(24)
|
|
2,385
|
|
(29)
|
|
(23)
|
|
Profit
attributable to non-controlling interests
|
131
|
|
|
|
|
|
166
|
|
|
|
|
|
Profit
attributable to shareholders
|
1,173
|
|
|
|
|
|
2,219
|
|
|
|
|
|
|
1,304
|
|
(25)
|
|
(24)
|
|
2,385
|
|
(29)
|
|
(23)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share
|
28.8p
|
|
(28)
|
|
(27)
|
|
54.5p
|
|
(29)
|
|
(24)
|
|
Financial Performance – Q2 2024 results unless otherwise
stated, growth % and commentary at CER.
|
|
|
|
Core results
Reconciliations
between Total results and Core results for Q2 2024, Q2 2023, H1
2024 and H1 2023 are set out on pages 20, 21, 23 and
24.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 2024
|
|
Year to date
|
|
|
£m
|
|
%
AER
|
|
%
CER
|
|
£m
|
|
%
AER
|
|
%
CER
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
7,884
|
|
10
|
|
13
|
|
15,247
|
|
8
|
|
12
|
|
Cost of
sales
|
(1,877)
|
|
9
|
|
12
|
|
(3,610)
|
|
4
|
|
6
|
|
Selling,
general and administration
|
(2,223)
|
|
1
|
|
6
|
|
(4,202)
|
|
(1)
|
|
2
|
|
Research
and development
|
(1,415)
|
|
8
|
|
9
|
|
(2,774)
|
|
9
|
|
12
|
|
Royalty
income
|
144
|
|
(36)
|
|
(37)
|
|
295
|
|
(27)
|
|
(27)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core
operating profit
|
2,513
|
|
16
|
|
18
|
|
4,956
|
|
16
|
|
22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core
profit before taxation
|
2,364
|
|
17
|
|
19
|
|
4,674
|
|
19
|
|
25
|
|
Taxation
|
(423)
|
|
34
|
|
36
|
|
(827)
|
|
34
|
|
41
|
|
Core
profit after taxation
|
1,941
|
|
14
|
|
16
|
|
3,847
|
|
16
|
|
22
|
|
Core
profit attributable to non-controlling
interests
|
170
|
|
|
|
|
|
324
|
|
|
|
|
|
Core
profit attributable to shareholders
|
1,771
|
|
|
|
|
|
3,523
|
|
|
|
|
|
|
1,941
|
|
14
|
|
16
|
|
3,847
|
|
16
|
|
22
|
|
Core
Earnings per share
|
43.4p
|
|
12
|
|
13
|
|
86.5p
|
|
14
|
|
20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 2024
|
|
Year to date
|
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
Cost of
sales
|
Total
|
2,122
|
10%
|
13%
|
|
4,092
|
6%
|
7%
|
|
% of sales
|
26.9%
|
<(0.1%)
|
<0.1%
|
|
26.8%
|
(0.6%)
|
(1.0%)
|
|
Core
|
1,877
|
9%
|
12%
|
|
3,610
|
4%
|
6%
|
|
% of sales
|
23.8%
|
(0.3%)
|
(0.2%)
|
|
23.7%
|
(1.0%)
|
(1.3%)
|
Total
and Core cost of sales as a percentage of sales was slightly down
in the quarter and decreased in the year to date. The quarter
benefitted from growth in higher margin Specialty Medicines
products and regional mix as well as price benefits from channel
mix and adjustments to returns and rebates in the US. In addition,
in the year to date there are further mix benefits from the growth
in higher margin Arexvy.
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 2024
|
|
Year to date
|
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
Selling,
general & administration
|
Total
|
2,465
|
9%
|
13%
|
|
4,552
|
3%
|
7%
|
|
% of sales
|
31.3%
|
(0.3%)
|
0.1%
|
|
29.9%
|
(1.4%)
|
(1.4%)
|
|
Core
|
2,223
|
1%
|
6%
|
|
4,202
|
(1%)
|
2%
|
|
% of sales
|
28.2%
|
(2.3%)
|
(1.9%)
|
|
27.6%
|
(2.6%)
|
(2.6%)
|
In the
quarter and year to date, Core SG&A improved as a percentage of
sales due to continued disciplined investment to support global
market expansion and disease awareness particularly for
Arexvy and investment
behind long-acting HIV medicines. The year to date growth was
partly offset by a 2 percentage point favourable impact of the
reversal of the legal provision taken in Q1 2023 for the
Zejula royalty dispute,
following a successful appeal.
Total
SG&A growth also included an increase in Significant legal
costs reflecting prospective legal fees for the defence of the
litigation relating to Zantac (see details on page
38).
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 2024
|
|
Year to date
|
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
Research
&
development
|
Total
|
1,477
|
10%
|
12%
|
|
2,911
|
12%
|
14%
|
|
% of sales
|
18.7%
|
0.1%
|
(0.1%)
|
|
19.1%
|
0.7%
|
0.4%
|
|
Core
|
1,415
|
8%
|
9%
|
|
2,774
|
9%
|
12%
|
|
% of sales
|
17.9%
|
(0.4%)
|
(0.6%)
|
|
18.2%
|
0.2%
|
<(0.1%)
|
In Q2
2024 and year to date, R&D expense increased due to continued
investment across disease areas, including bepirovirsen (chronic
hepatitis B) and the advancement of clinical trial programmes
associated with the pneumococcal Multi Antigen Presenting System
(MAPS) and mRNA in Infectious Diseases.
In HIV,
investment increased on next-generation long-acting treatment and
preventative medicines. In Respiratory and Oncology, investment
increased to support lifecycle innovation and late-stage clinical
development programmes for depemokimab (asthma and eosinophilic
inflammation), camlipixant (refractory chronic cough), and
Jemperli (endometrial
cancer). This was partly offset by cost decreases following
launches of Arexvy and
Ojjaara and reduction in
development spend for Zejula.
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 2024
|
|
Year to date
|
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
Royalty
income
|
Total
|
144
|
(36%)
|
(37%)
|
|
295
|
(27%)
|
(27%)
|
|
|
Core
|
144
|
(36%)
|
(37%)
|
|
295
|
(27%)
|
(27%)
|
The
decrease in Total and Core royalty income in Q2 2024 and year to
date primarily reflected the cessation of the majority of Gardasil
royalties at the end of 2023, with Q2 2024 Gardasil royalties of
£12 million (Q2 2023: £132 million). This was partly
offset by increases in Kesimpta and Biktarvy
royalties.
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 2024
|
|
Year to date
|
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
Other
operating
income/(expense)
|
Total
|
(318)
|
>(100%)
|
>(100%)
|
|
(851)
|
>(100%)
|
>(100%)
|
In Q2
2024 the other operating expense reflected a charge of £378
million (Q2 2023: £189 million credit) arising from the
remeasurement of contingent consideration liabilities (CCL)
primarily reflecting improved longer term HIV prospects and foreign
currency movements, an increase in liability for the Vaccines CCL,
and the liabilities for the Pfizer, Inc. (Pfizer) put option. In
addition, there was a fair value loss of £35 million (Q2 2023:
£35 million gain) on the retained stake in Haleon plc
(Haleon), partly offset by higher other net income of £95
million (Q2 2023: £54 million). All of the remaining shares
held in Haleon were sold in May 2024.
The
year to date other operating expense reflected a charge of
£1,063 million (YTD 2023: £460 million credit) arising
from the remeasurement of CCLs primarily reflecting improved longer
term HIV prospects and foreign currency movements and increase in
liability for the Vaccines CCL and the liabilities for the Pfizer
put option. This was partly offset by a fair value gain of £22
million (YTD 2023: £29 million loss) on the retained stake in
Haleon, as well as higher other net income of £190 million
(YTD 2023: £144 million).
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 2024
|
|
Year to date
|
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
Operating
profit
|
Total
|
1,646
|
(23%)
|
(22%)
|
|
3,136
|
(26%)
|
(20%)
|
|
|
% of sales
|
20.9%
|
(8.9%)
|
(9.1%)
|
|
20.6%
|
(9.3%)
|
(8.4%)
|
|
|
Core
|
2,513
|
16%
|
18%
|
|
4,956
|
16%
|
22%
|
|
|
% of sales
|
31.9%
|
1.6%
|
1.3%
|
|
32.5%
|
2.3%
|
2.9%
|
Total
operating profit margin was lower in Q2 2024 primarily due to
unfavourable movements in the ViiV Healthcare CCL reflecting
improved longer term HIV prospects and foreign currency movements,
an increase in liability for the Vaccines CCL and a fair value loss
on the retained stake in Haleon (Q2 2023 fair value gain), partly
offset by higher other net income. The year to date also has
unfavourable movements in CCL remeasurements, partly offset by a
fair value gain on the retained Haleon shares (2023 year to date
fair value loss) and higher other net income.
Core
operating profit in the quarter and year to date benefitted from
continued leverage from strong sales and favourable product and
regional mix. This was partly offset by increased investment in
R&D and growth assets, and lower royalty income. The year to
date also includes a favourable impact from the reversal of the
legal provision taken in Q1 2023 for the Zejula royalty dispute, following a
successful appeal. The adverse impact of lower sales of COVID-19
solutions was three percentage points of Core operating profit
growth in the quarter and six percentage points year to date, with
minimal impact on Core operating profit margin.
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 2024
|
|
Year to date
|
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
Net
finance expense
|
Total
|
150
|
(1%)
|
1%
|
|
284
|
(13%)
|
(12%)
|
|
|
Core
|
148
|
(3%)
|
(1%)
|
|
280
|
(13%)
|
(12%)
|
The
decrease in net finance costs in Q2 2024 and year to date was
mainly driven by lower interest on short-term financing as a result
of cash received from the successful disposal of all Haleon shares
and savings from maturing bonds, partly offset by higher lease
interest expense. Year to date also benefitted from the net cost of
bond buybacks completed in Q1 2023.
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 2024
|
|
Year to date
|
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
Taxation
|
Total
|
191
|
(21%)
|
(19%)
|
|
465
|
(10%)
|
(2%)
|
|
|
Tax rate %
|
12.8%
|
|
|
|
16.3%
|
|
|
|
|
Core
|
423
|
34%
|
36%
|
|
827
|
34%
|
41%
|
|
|
Tax rate %
|
17.9%
|
|
|
|
17.7%
|
|
|
The
effective tax rate on Total results reflects the different tax
effects of the various Adjusting items included in Total
results.
The
effective tax rate on Core profits is broadly in line with
expectations for the year and includes the impact of new global
minimum corporate income tax rules which came into effect from 1
January 2024 in line with the OECD’s 'Pillar 2' model
framework. Issues related to taxation are described in Note 14,
‘Taxation’ in the Annual Report 2023. The Group
continues to believe it has made adequate provision for the
liabilities likely to arise from periods that are open and not yet
agreed by relevant tax authorities. The ultimate liability for such
matters may vary from the amounts provided and is dependent upon
the outcome of agreements with relevant tax
authorities.
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 2024
|
|
Year to date
|
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
Non-controlling
interests
("NCIs")
|
Total
|
131
|
8%
|
14%
|
|
166
|
(37%)
|
(29%)
|
|
Core
|
170
|
31%
|
37%
|
|
324
|
29%
|
37%
|
The
increase in Total profit allocated to NCIs in the quarter was
primarily driven by higher net profits in some of the Group's other
entities. The decrease in the year to date Total profit allocated
to NCIs was driven by lower ViiV Healthcare Total profits
(including the remeasurement loss on the CCL) with an allocation of
£150 million (YTD 2023: £267 million), partly offset by
higher net profits in some of the Group's other
entities.
The
increase in Core profit from operations allocated to NCIs in Q2
2024 and year to date primarily reflected higher core profit
allocations from ViiV Healthcare, with £161 million in the
quarter (Q2 2023: £136 million) and £308 million in the
year to date (YTD 2023: £256 million), as well as higher net
profits in some of the Group’s other entities with
NCIs.
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 2024
|
|
Year to date
|
|
|
|
£p
|
AER
|
CER
|
|
£p
|
AER
|
CER
|
|
Earnings
per share
|
Total
|
28.8p
|
(28%)
|
(27%)
|
|
54.5p
|
(29%)
|
(24%)
|
|
Core
|
43.4p
|
12%
|
13%
|
|
86.5p
|
14%
|
20%
|
The
decrease in the Q2 2024 and year to date Total EPS is primarily due
to higher charges for CCL remeasurements reflecting improved longer
term HIV prospects and foreign currency movements.
The
increase in the Core EPS in the quarter and year to date primarily
reflected the growth in Core operating profit as well as lower
finance costs, partly offset by higher non-controlling interests
and a higher effective taxation rate. Lower sales of COVID-19
solutions reduced Core EPS by four percentage points in the quarter
and by six percentage points in the year to date.
Currency impact on results
The
results for Q2 2024 are based on average exchange rates,
principally $1.26/£1, €1.17/£1 and Yen198/£1.
The period-end exchange rates were $1.27/£1,
€1.18/£1 and Yen 203/£1. Comparative exchange rates
are given on page 41.
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 2024
|
|
Year to date
|
|
|
|
£m/£p
|
AER
|
CER
|
|
£m/£p
|
AER
|
CER
|
|
Turnover
|
|
7,884
|
10%
|
13%
|
|
15,247
|
8%
|
12%
|
|
Earnings
per share
|
Total
|
28.8p
|
(28%)
|
(27%)
|
|
54.5p
|
(29%)
|
(24%)
|
|
Core
|
43.4p
|
12%
|
13%
|
|
86.5p
|
14%
|
20%
|
In Q2
2024, the adverse currency impact primarily reflected the
strengthening of Sterling against the US Dollar, Euro and Yen.
Exchange gains or losses on the settlement of intercompany
transactions had a favourable two percentage point impact on Total
and Core EPS.
In the
year to date, the adverse currency impact primarily reflected the
strengthening of Sterling against the US Dollar, Euro, Yen and
emerging market currencies. Exchange gains or losses on the
settlement of intercompany transactions had a marginal impact on
Total and Core EPS.
|
|
|
|
Cash generation
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow
|
|
|
Q2 2024
£m
|
|
Q2
2023
£m
|
|
H1 2024
£m
|
|
H1
2023
£m
|
|
Cash
generated from operations (£m)
|
1,650
|
|
1,620
|
|
2,776
|
|
1,907
|
|
Net
cash generated from operating activities (£m)
|
1,113
|
|
1,307
|
|
2,071
|
|
1,360
|
|
Free
cash inflow/(outflow)* (£m)
|
328
|
|
348
|
|
617
|
|
(341)
|
|
Free
cash flow growth (%)
|
(6)%
|
|
34%
|
|
>100%
|
|
<(100)%
|
|
Free
cash flow conversion* (%)
|
28%
|
|
21%
|
|
28%
|
|
–
|
|
Total
net debt** (£m)
|
13,960
|
|
18,220
|
|
13,960
|
|
18,220
|
|
|
|
|
*
|
Free cash flow and free cash
flow conversion are defined on page 60. Free cash flow is analysed
on page 44.
|
|
**
|
Net debt is analysed on page
44.
|
Q2 2024
Cash
generated from operations for the quarter was £1,650 million
(Q2 2023: £1,620 million). The increase primarily
reflected higher Core operating profit and lower additional pension
contributions, partly offset by an increase in trade receivables
due to higher sales and the timing of returns and rebates,
including the impact of the removal of the AMP cap.
Total
contingent consideration cash payments in the quarter were
£317 million (Q2 2023: £288 million), including cash
payments made to Shionogi & Co. Ltd (Shionogi) of
£305 million (Q2 2023: £278 million). £313
million (Q2 2023: £285 million) of these were recognised
in cash flows from operating activities.
Free
cash inflow was £328 million for the quarter (Q2 2023:
£348 million). In addition to the increase in cash
generated from operations, there was lower net interest paid, lower
dividends paid to non-controlling interests and lower capital
expenditure. These were more than offset by higher tax payments,
resulting in a decrease in free cash flow in the
quarter.
H1 2024
Cash
generated from operating activities was £2,776 million (H1
2023: £1,907 million). The increase primarily reflected higher
Core operating profit, higher receivables' collections,
particularly for Arexvy and
Shingrix, and lower pension
contributions. This was partly offset by the timing of returns and
rebates, including the impact of the removal of the AMP
cap.
Total
contingent consideration cash payments in H1 2024 were
£626 million (H1 2023: £579 million),
including cash payments made to Shionogi of
£605 million (H1 2023: £565 million).
£619 million (H1 2023: £575 million) of these
were recognised in cash flows from operating
activities.
Free
cash inflow was £617 million for H1 2024 (H1 2023: £341
million outflow). The increase was primarily driven by the increase
in cash generated from operating activities, as well as lower net
interest paid, lower dividends paid to non-controlling interests
and lower capital expenditure, partly offset by higher tax
payments.
Total Net debt
At 30
June 2024, net debt was £13,960 million, compared with
£15,040 million at 31 December 2023, comprising gross debt of
£16,943 million and cash and liquid investments of £2,983
million. See net debt information on page 43 and 44.
Net
debt decreased by £1,080 million primarily due to £617
million free cash inflow and £2,296 million proceeds from the
disposal of investments, primarily the sale of the remaining
retained stake in Haleon, and exchange on net debt of £97
million. This was partly offset by the net acquisition costs of
Aiolos Bio, Inc. (Aiolos) and Elsie Biotechnologies for £748
million, and dividends paid to shareholders of £1,220
million.
At 30
June 2024, GSK had short-term borrowings (including overdrafts and
lease liabilities) repayable within 12 months of £3,366
million and £845 million repayable in the subsequent
year.
|
|
|
|
|
Page
|
|
Q2 2024
pipeline highlights
|
14
|
|
ESG
|
16
|
|
Total
and Core results
|
18
|
|
Income
statement
|
26
|
|
Statement
of comprehensive income
|
27
|
|
Balance
sheet
|
28
|
|
Statement
of changes in equity
|
29
|
|
Cash
flow statement
|
30
|
|
Sales
tables
|
31
|
|
Segment
information
|
36
|
|
Legal
matters
|
38
|
|
Returns
to shareholders
|
40
|
|
Additional
information
|
41
|
|
Net
debt information
|
43
|
|
Post
balance sheet event
|
44
|
|
Related
party transactions
|
44
|
|
Financial
instruments fair value disclosures
|
45
|
|
R&D
commentary
|
50
|
|
Principal
risks and uncertainties
|
59
|
|
Reporting
definitions
|
60
|
|
Guidance
and outlooks, assumptions and cautionary statements
|
62
|
|
Directors'
responsibility statement
|
63
|
|
Independent
Auditor's review report to GSK plc
|
64
|
|
|
|
Contacts
|
|
|
|
GSK plc
(LSE/NYSE:GSK) is a global biopharma company with a purpose to
unite science, technology, and talent to get ahead of disease
together. Find out more at www.gsk.com.
|
|
|
|
|
|
|
GSK enquiries:
|
|
|
|
|
Media
|
Tim
Foley
|
+44 (0)
20 8047 5502
|
(London)
|
|
|
Kathleen
Quinn
|
+1 202
603 5003
|
(Washington)
|
|
|
|
|
|
|
Investor
Relations
|
Nick
Stone
|
+44 (0)
7717 618834
|
(London)
|
|
|
James
Dodwell
|
+44 (0)
7881 269066
|
(London)
|
|
|
Mick
Readey
|
+44 (0)
7990 339653
|
(London)
|
|
|
Joshua
Williams
|
+44 (0)
7385 415719
|
(London)
|
|
|
Jeff
McLaughlin
|
+1 215
589 3774
|
(Philadelphia)
|
|
|
|
|
|
|
Registered in England & Wales:
No.
3888792
|
|
|
|
Registered Office:
980
Great West Road
Brentford,
Middlesex
TW8
9GS
|
|
Q2 2024 pipeline highlights (since
1 May 2024)
|
|
|
|
|
|
|
|
Medicine/vaccine
|
Trial (indication, presentation)
|
Event
|
|
Regulatory decisions or other regulatory actions
|
Arexvy
|
RSV,
adults aged 50-59 years at increased risk
|
Regulatory
decision (US)
|
|
Arexvy
|
RSV,
adults aged 50-59 years at increased risk
|
Positive
CHMP opinion (EU)
|
|
Omjjara
|
MOMENTUM
(myelofibrosis with anaemia)
|
Regulatory
decision (JP)
|
|
Regulatory submissions or acceptances
|
Jemperli
|
RUBY
part 1 (OS overall population, 1L endometrial cancer)
|
Regulatory
submission (EU)
|
|
Blenrep
|
DREAMM-7/8
(2L+ multiple myeloma)
|
Regulatory
submission (EU)
|
|
Phase III data readouts or other significant events
|
depemokimab
|
SWIFT-1/2
(severe asthma)
|
Positive
phase III data readout
|
|
Timing
|
Medicine/vaccine
|
Trial (indication, presentation)
|
Event
|
|
H2
2024
|
Arexvy
|
RSV,
adults aged 50-59 years at increased risk
|
Regulatory
decision (EU, JP)
|
|
gepotidacin
|
EAGLE-2/3
(uncomplicated urinary tract infection)
|
Regulatory
submission (US)
|
|
depemokimab
|
ANCHOR-1/2
(chronic rhinosinusitis with nasal polyps)
|
Phase
III data readout
|
|
depemokimab
|
ANCHOR-1/2
(chronic rhinosinusitis with nasal polyps)
|
Regulatory
submission (US)
|
|
depemokimab
|
SWIFT-1/2
(severe asthma)
|
Regulatory
submission (US)
|
|
Nucala
|
Chronic
rhinosinusitis with nasal polyps
|
Regulatory
decision (JP)
|
|
Nucala
|
MATINEE
(chronic obstructive pulmonary disease)
|
Phase
III data readout
|
|
Nucala
|
MATINEE
(chronic obstructive pulmonary disease)
|
Regulatory
submission (US)
|
|
Blenrep
|
DREAM-7/8
(2L + multiple myeloma)
|
Regulatory
submission
(US,
JP)
|
|
Blenrep
|
DREAMM-7
(2L + multiple myeloma)
|
Regulatory
submission (CN)
|
|
Jemperli
|
RUBY
part 1 (OS overall population, 1L endometrial cancer)
|
Regulatory
decision (US)
|
|
Zejula
|
FIRST
(1L maintenance ovarian cancer)
|
Phase
III data readout
|
|
Zejula
|
ZEAL
(1L maintenance non-small cell lung cancer)
|
Phase
III data readout
|
|
linerixibat
|
GLISTEN
(cholestatic pruritus in primary biliary cholangitis)
|
Phase
III data readout
|
|
|
|
|
|
|
Anticipated news flow continued
|
|
|
|
|
Timing
|
Medicine/vaccine
|
Trial (indication, presentation)
|
Event
|
|
H1
2025
|
Arexvy
|
RSV,
adults aged 18-49 years at increased risk
|
Phase
III data readout
|
|
MenABCWY
(gen 1) vaccine candidate
|
Meningococcal
ABCWY
|
Regulatory
decision (US)
|
|
Shingrix
|
Shingles,
adults aged 18+ years
|
Regulatory
decision (CN)
|
|
gepotidacin
|
EAGLE-2/3
(uncomplicated urinary tract infection)
|
Regulatory
decision (US)
|
|
gepotidacin
|
EAGLE-1
(urogenital gonorrhoea)
|
Regulatory
submission (US)
|
|
depemokimab
|
SWIFT-1/2
(severe asthma)
|
Regulatory
submission
(EU,
CN, JP)
|
|
depemokimab
|
ANCHOR-1/2
(chronic rhinosinusitis with nasal polyps)
|
Regulatory
submission
(EU,
CN, JP)
|
|
Nucala
|
Chronic
rhinosinusitis with nasal polyps
|
Regulatory
decision (CN)
|
|
Nucala
|
MATINEE
(chronic obstructive pulmonary disease)
|
Regulatory
decision (US)
|
|
Nucala
|
MATINEE
(chronic obstructive pulmonary disease)
|
Regulatory
submission
(CN,
EU)
|
|
Ventolin
|
Low
carbon MDI (asthma)
|
Phase
III data readout
|
|
Ventolin
|
Low
carbon MDI (asthma)
|
Regulatory
submission (EU)
|
|
Blenrep
|
DREAMM-7/8
(2L+ multiple myeloma)
|
Regulatory
decision (JP)
|
|
cobolimab
|
COSTAR
(non-small cell lung cancer)
|
Phase
III data readout
|
|
Jemperli
|
RUBY
part 1 (OS overall population, 1L endometrial cancer)
|
Regulatory
decision (EU)
|
|
linerixibat
|
GLISTEN
(cholestatic pruritus in primary biliary cholangitis)
|
Regulatory
submission
(US,
EU, CN)
|
|
H2
2025
|
Arexvy
|
RSV,
adults aged 18-49 years at increased risk
|
Regulatory
submission (US)
|
|
Bexsero
|
Meningococcal
B (infants)
|
Phase
III data read out
|
|
Bexsero
|
Meningococcal
B (infants)
|
Regulatory
submission (US)
|
|
gepotidacin
|
EAGLE-1
(urogenital gonorrhoea)
|
Regulatory
decision (US)
|
|
gepotidacin
|
EAGLE-J
(uncomplicated urinary tract infection)
|
Regulatory
submission (JP)
|
|
tebipenem
pivoxil
|
PIVOT-PO
(complicated urinary tract infection)
|
Phase
III data readout
|
|
tebipenem
pivoxil
|
PIVOT-PO
(complicated urinary tract infection)
|
Regulatory
submission (US)
|
|
camlipixant
|
CALM-1/2
(refractory chronic cough)
|
Phase
III data readout
|
|
camlipixant
|
CALM-1/2
(refractory chronic cough)
|
Regulatory
submission
(US,
EU)
|
|
depemokimab
|
SWIFT-1/2
(severe asthma)
|
Regulatory
decision (US)
|
|
depemokimab
|
ANCHOR-1/2
(chronic rhinosinusitis with nasal polyps)
|
Regulatory
decision (US)
|
|
depemokimab
|
OCEAN
(eosinophilic granulomatosis with polyangiitis)
|
Phase
III data readout
|
|
depemokimab
|
NIMBLE
(asthma)
|
Phase
III data readout
|
|
Blenrep
|
DREAMM-7/8
(2L+ multiple myeloma)
|
Regulatory
decision (US, EU)
|
|
Blenrep
|
DREAMM-8
(2L + multiple myeloma)
|
Regulatory
submission (CN)
|
|
cobolimab
|
COSTAR,
(2L non-small cell lung cancer)
|
Regulatory
submission
(US,
EU)
|
|
linerixibat
|
GLISTEN
(cholestatic pruritus in primary biliary cholangitis)
|
Regulatory
decision (US)
|
|
linerixibat
|
GLISTEN
(cholestatic pruritus in primary biliary cholangitis)
|
Regulatory
submission (JP)
|
|
|
|
|
|
|
|
Refer to pages 50 to 58 for further details on several key
medicines and vaccines in development by therapy
area.
|
Trust: progress on our six priority
areas for responsible business
Building
Trust by operating responsibly is integral to GSK’s strategy
and culture. This will support growth and returns to shareholders,
reduce risk, and help GSK’s people thrive while delivering
sustainable health impact at scale. The company has identified six
Environmental, Social, and Governance (ESG) focus areas that
address what is most material to GSK’s business and the
issues that matter the most to its stakeholders. Highlights below
include activity since Q1 2024
results. For more details on annual updates, please see GSK's ESG
Performance Report 2023. (1)
Access
Commitment:
to make GSK’s vaccines and medicines available at value-based
prices that are sustainable for the business and implement access
strategies that increase the use of GSK’s vaccines and
medicines to treat and protect underserved people.
Progress
since Q1 2024:
|
|
|
|
●
|
In
July, GSK announced that the first single-dose medicine for the
prevention of relapse of Plasmodium vivax (P. vivax) malaria
– tafenoquine, co-administered with chloroquine for radical
cure, has now been launched in both Thailand and Brazil. The
development and launch of this new treatment is the result of a
partnership between GSK and Medicines for Malaria Venture. More
information can be found here. (2)
|
|
●
|
In
April, ViiV Healthcare announced that ten years after the signing
of ground-breaking licensing agreements with the Medicines Patent
Pool (MPP), more than 1 billion packs of generic dolutegravir (DTG)
- based medicines have reached 24 million people living with HIV in
128 low- and middle-income countries (LMICs). The partnership has
also accelerated access to innovative HIV medicines for
paediatrics, as well as furthering access to innovative HIV
prevention for adults, with a licence agreement supporting access
to cabotegravir long-acting in LMICs. More information can be found
here. (3)
|
|
●
|
In
June, the inaugural set of funding partners of the Global
Fund’s Gender Equality Fund - set up to recognise the
critical importance of gender equality to ending AIDS, tuberculosis
(TB) and malaria as epidemics - were announced. They will be
awarded up to $7.5 million in grants over the next three years to
help accelerate progress towards gender equality through community
engagement and empowerment. More information can be found here.
(4)
|
|
●
|
Performance
metrics related to access are updated annually with related details
in GSK’s ESG Performance Report 2023 on page 10.
|
Global health and health security
Commitment:
develop novel products and technologies to treat and prevent
priority diseases, including pandemic threats.
Progress
since Q1 2024:
|
|
|
|
●
|
In May,
GSK made a £45 million pledge to support the Fleming
Initiative, a new global network of scientific, technology,
clinical, policy and public engagement expertise, to develop new
antimicrobial resistance (AMR) interventions. AMR is an urgent
global public health threat, with potential to cause 10 million
deaths annually by 2050 without effective action. The partnership
will bring together GSK’s leadership in prevention and
treatment of infectious diseases, along with Imperial College
London and Imperial College Healthcare NHS Trust’s
world-class clinical and research expertise. More information can
be found here. (5)
|
|
●
|
Performance
metrics related to global health and health security are updated
annually with related details in GSK’s ESG Performance Report
2023 on page 15.
|
Environment
Commitment:
committed to a net zero, nature-positive, healthier planet with
ambitious goals set for 2030 and 2045.
Progress
since Q1 2024:
|
|
|
|
●
|
In May,
Phase III trials started for a low carbon version of our metered
dose inhaler (MDI), Ventolin (salbutamol), using a next generation
propellant. The propellants currently contained in all MDIs,
including GSK’s, contribute to greenhouse gas emissions. The
gas released through patient use of Ventolin MDI specifically
accounts for close to half (48%) of GSK’s global total carbon
footprint. If successful, this has the potential to reduce
greenhouse gas emissions from use of the inhaler by approximately
90%, significantly contributing to GSK’s ambitious net-zero
climate targets.
|
|
●
|
GSK
continues to make progress towards its reduction in greenhouse gas
emissions across all scopes by 2030 and 2045, including increasing
its use of renewable energy. In June, GSK activated a new 56-acre
solar farm and two new wind turbines at its Irvine manufacturing
site and also announced it signed a 10-year energy deal with
Sembcorp, covering the electricity demand for all three of
GSK’s global manufacturing sites in Singapore. This means
that from 1 January 2025, all of GSK's manufacturing operations in
Singapore will be covered by renewable energy certificates from
Sembcorp’s solar projects in Singapore, along with the 3%
already being generated by GSK’s on-site solar panels. More
information can be found here. (6)
|
|
●
|
Performance
metrics related to environment are updated annually with related
details in GSK’s ESG Performance Report 2023 on page
18.
|
Diversity, equity and inclusion
Commitment:
create a diverse, equitable and inclusive workplace; enhance
recruitment of diverse patient populations in GSK clinical trials;
and support diverse communities.
|
|
|
|
●
|
Performance
metrics related to diversity, equity and inclusion are updated
annually with related details in GSK’s ESG Performance Report
2023 on page 26.
|
Ethical standards
Commitment:
promote ethical behaviour across GSK’s business by supporting
its employees to do the right thing and working with suppliers that
share GSK’s standards and operate responsibly.
|
|
|
|
●
|
Performance
metrics related to ethical standards are updated annually with
related details in GSK’s ESG Performance Report 2023 on page
30.
|
Product governance
Commitment:
maintain robust quality and safety processes and responsibly use
data and new technologies.
|
|
|
|
●
|
Performance
metrics related to product governance are updated annually with
related details in GSK’s ESG Performance Report 2023 on page
35.
|
ESG rating performance
Detailed
below is how GSK performs in key ESG ratings.
|
|
|
|
|
|
External benchmark
|
Current
score/ranking
|
Previous
score/ranking
|
Comments
|
|
S&P
Global’s Corporate Sustainability Assessment
|
79
|
84
|
2nd in
the pharmaceutical industry group; current score updated July
2024.
|
|
Access
to Medicines Index
|
4.06
|
4.23
|
Led the
bi-annual index since its inception in 2008; Updated bi-annually,
current results from Nov 2022
|
|
Antimicrobial
resistance benchmark
|
84%
|
86%
|
Led the
benchmark since its inception in 2018; Current ranking updated Nov
2021
|
|
CDP
Climate Change
|
A-
|
A-
|
Updated
annually, current scores updated February 2024 (for supplier
engagement, March 2023)
|
|
CDP
Water Security
|
A-
|
B
|
|
CDP
Forests (palm oil)
|
B
|
A-
|
|
CDP
Forests (timber)
|
B
|
B
|
|
CDP
supplier engagement rating
|
Leader
|
Leader
|
|
Sustainalytics
|
15.4
|
16.7
|
2nd
percentile in pharma subindustry group; lower score represents
lower risk. Current ranking updated May 2024
|
|
MSCI
|
AA
|
AA
|
Last
rating action date: September 2023
|
|
Moody’s
ESG solutions
|
62
|
61
|
Current
score updated August 2023
|
|
ISS
Corporate Rating
|
B+
|
B+
|
Current
score updated June 2023
|
|
FTSE4Good
|
Member
|
Member
|
Member
since 2004, latest review in June 2024
|
|
ShareAction’s
Workforce Disclosure Initiative
|
79%
|
77%
|
Current
score updated Jan 2024
|
Footnotes:
|
|
|
|
(1)
|
https://www.gsk.com/media/11009/esg-performance-report-2023.pdf
|
|
(2)
|
https://www.gsk.com/en-gb/media/press-releases/brazil-and-thailand-become-first-malaria-endemic-countries-to-launch-new-single-dose-radical-cure-medicine/
|
|
(3)
|
https://viivhealthcare.com/hiv-news-and-media/news/press-releases/2024/april/mpp-10-years-anniversary/
|
|
(4)
|
https://www.theglobalfund.org/en/news/2024/2024-06-13-gender-equality-fund-announces-funding-partners/
|
|
(5)
|
https://www.gsk.com/en-gb/media/press-releases/gsk-to-become-a-founding-partner-of-fleming-initiative-to-fight-antimicrobial-resistance-amr/
|
|
(6)
|
https://www.gsk.com/media/11369/gsk-set-to-achieve-100-renewable-electricity-at-all-manufacturing-sites-in-singapore-from-2025.pdf
|
Total and Core
results
Total
reported results represent the Group’s overall
performance.
GSK
made one update to its reporting framework in Q1 2024 which is to
change the description of Adjusted results to Core to align with
European peers in the pharmaceutical industry but with no change to
the basis or figures. In Q2 2024 an update was made to the
definition of Core results to exclude amounts greater than £25
million from the foreign currency translation reserve which are
reclassified to the income statement upon the liquidation of a
subsidiary. There is no impact in the quarter or year to date from
this adjusting item. There is no change to Total
Results.
GSK
uses a number of non-IFRS measures to report the performance of its
business. Core results and other non-IFRS measures may be
considered in addition to, but not as a substitute for, or superior
to, information presented in accordance with IFRS. Core results are
defined below and other non-IFRS measures are defined on page
60.
GSK
believes that Core results, when considered together with Total
results, provide investors, analysts and other stakeholders with
helpful complementary information to understand better the
financial performance and position of the Group from period to
period, and allow the Group’s performance to be more easily
compared against the majority of its peer companies. These measures
are also used by management for planning and reporting purposes.
They may not be directly comparable with similarly described
measures used by other companies.
GSK
encourages investors and analysts not to rely on any single
financial measure but to review GSK’s quarterly results
announcements, including the financial statements and notes, in
their entirety.
GSK is
committed to continuously improving its financial reporting, in
line with evolving regulatory requirements and best practice. In
line with this practice, GSK expects to continue to review and
refine its reporting framework.
Core
results exclude the following items in relation to our operations
from Total results, together with the tax effects of all of these
items:
|
|
|
|
●
|
amortisation
of intangible assets (excluding computer software and capitalised
development costs)
|
|
●
|
impairment
of intangible assets (excluding computer software) and
goodwill
|
|
●
|
major
restructuring costs, which include impairments of tangible assets
and computer software, (under specific Board approved programmes
that are structural, of a significant scale and where the costs of
individual or related projects exceed £25 million), including
integration costs following material acquisitions
|
|
●
|
transaction-related
accounting or other adjustments related to significant
acquisitions
|
|
●
|
proceeds
and costs of disposal of associates, products and businesses;
significant settlement income; significant legal charges (net of
insurance recoveries) and expenses on the settlement of litigation
and government investigations; other operating income other than
royalty income, and other items including amounts reclassified from
the foreign currency translation reserve to the income statement
upon the liquidation of a subsidiary where the amount exceeds
£25 million
|
Costs
for all other ordinary course smaller scale restructuring and legal
charges and expenses from operations are retained within both Total
and Core results.
As Core
results include the benefits of Major restructuring programmes but
exclude significant costs (such as Significant legal, major
restructuring and transaction items) they should not be regarded as
a complete picture of the Group’s financial performance,
which is presented in Total results. The exclusion of other
Adjusting items may result in Core earnings being materially higher
or lower than Total earnings. In particular, when significant
impairments, restructuring charges and legal costs are excluded,
Core earnings will be higher than Total earnings.
GSK has
undertaken a number of Major restructuring programmes in response
to significant changes in the Group’s trading environment or
overall strategy or following material acquisitions. Within the
Pharmaceuticals sector, the highly regulated manufacturing
operations and supply chains and long lifecycle of the business
mean that restructuring programmes, particularly those that involve
the rationalisation or closure of manufacturing or R&D sites
are likely to take several years to complete. Costs, both cash and
non-cash, of these programmes are provided for as individual
elements are approved and meet the accounting recognition criteria.
As a result, charges may be incurred over a number of years
following the initiation of a Major restructuring
programme.
Significant
legal charges and expenses are those arising from the settlement of
litigation or government investigations that are not in the normal
course and materially larger than more regularly occurring
individual matters. They also include certain major legacy
matters.
Reconciliations
between Total and Core results, providing further information on
the key Adjusting items, are set out on pages 20 and
23.
GSK
provides earnings guidance to the investor community on the basis
of Core results. This is in line with peer companies and
expectations of the investor community, supporting easier
comparison of the Group’s performance with its peers. GSK is
not able to give guidance for Total results as it cannot reliably
forecast certain material elements of the Total results,
particularly the future fair value movements on contingent
consideration and put options that can and have given rise to
significant adjustments driven by external factors such as currency
and other movements in capital markets.
ViiV Healthcare
ViiV
Healthcare is a subsidiary of the Group and 100% of its operating
results (turnover, operating profit, profit after tax) are included
within the Group income statement.
Earnings
are allocated to the three shareholders of ViiV Healthcare on the
basis of their respective equity shareholdings (GSK 78.3%, Pfizer
11.7% and Shionogi 10%) and their entitlement to preferential
dividends, which are determined by the performance of certain
products that each shareholder contributed. As the relative
performance of these products changes over time, the proportion of
the overall earnings allocated to each shareholder also changes. In
particular, the increasing proportion of sales of dolutegravir and
cabotegravir-containing products has a favourable impact on the
proportion of the preferential dividends that is allocated to GSK.
Adjusting items are allocated to shareholders based on their equity
interests. GSK was entitled to approximately 84% of the Total
earnings and 83% of the Core earnings of ViiV Healthcare for
2023.
As
consideration for the acquisition of Shionogi’s interest in
the former Shionogi-ViiV Healthcare joint venture in 2012, Shionogi
received the 10% equity stake in ViiV Healthcare and ViiV
Healthcare also agreed to pay additional future cash consideration
to Shionogi, contingent on the future sales performance of the
products being developed by that joint venture, dolutegravir and
cabotegravir. Under IFRS 3 ‘Business combinations’, GSK
was required to provide for the estimated fair value of this
contingent consideration at the time of acquisition and is required
to update the liability to the latest estimate of fair value at
each subsequent period end. The liability for the contingent
consideration recognised in the balance sheet at the date of
acquisition was £659 million. Subsequent remeasurements are
reflected within other operating income/(expense) and within
Adjusting items in the income statement in each
period.
Cash
payments to settle the contingent consideration are made to
Shionogi by ViiV Healthcare each quarter, based on the actual sales
performance and other income of the relevant products in the
previous quarter. These payments reduce the balance sheet liability
and hence are not recorded in the income statement. The cash
payments made to Shionogi by ViiV Healthcare in the six months
ended 30 June 2024 were £605 million.
As the
liability is required to be recorded at the fair value of estimated
future payments, there is a significant timing difference between
the charges that are recorded in the Total income statement to
reflect movements in the fair value of the liability and the actual
cash payments made to settle the liability.
Further
explanation of the acquisition-related arrangements with ViiV
Healthcare are set out on pages 84 and 85 of the Annual Report
2023.
Adjusting items
The
reconciliations between Total results and Core results for Q2 2024
and Q2 2023 are set out below.
Three months ended 30 June 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
results
£m
|
|
Intangible
amort-
isation
£m
|
|
Intangible
impair-
ment
£m
|
|
Major
restruct-
uring
£m
|
|
Trans-
action-
related
£m
|
|
Divest-
ments,
Significant
legal
and
other
items
£m
|
|
Core
results
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
7,884
|
|
|
|
|
|
|
|
|
|
|
|
7,884
|
|
Cost of
sales
|
(2,122)
|
|
180
|
|
|
|
41
|
|
19
|
|
5
|
|
(1,877)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
5,762
|
|
180
|
|
|
|
41
|
|
19
|
|
5
|
|
6,007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administration
|
(2,465)
|
|
|
|
|
|
75
|
|
1
|
|
166
|
|
(2,223)
|
|
Research
and development
|
(1,477)
|
|
13
|
|
47
|
|
2
|
|
|
|
|
|
(1,415)
|
|
Royalty
income
|
144
|
|
|
|
|
|
|
|
|
|
|
|
144
|
|
Other
operating income/(expense)
|
(318)
|
|
|
|
|
|
6
|
|
378
|
|
(66)
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
1,646
|
|
193
|
|
47
|
|
124
|
|
398
|
|
105
|
|
2,513
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
finance expense
|
(150)
|
|
|
|
|
|
|
|
|
|
2
|
|
(148)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
of after tax profit/(loss) of associates
and joint ventures
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
1,495
|
|
193
|
|
47
|
|
124
|
|
398
|
|
107
|
|
2,364
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
(191)
|
|
(43)
|
|
(11)
|
|
(34)
|
|
(121)
|
|
(23)
|
|
(423)
|
|
Tax rate %
|
12.8%
|
|
|
|
|
|
|
|
|
|
|
|
17.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation
|
1,304
|
|
150
|
|
36
|
|
90
|
|
277
|
|
84
|
|
1,941
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to non-controlling
interests
|
131
|
|
|
|
|
|
|
|
39
|
|
|
|
170
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to shareholders
|
1,173
|
|
150
|
|
36
|
|
90
|
|
238
|
|
84
|
|
1,771
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,304
|
|
150
|
|
36
|
|
90
|
|
277
|
|
84
|
|
1,941
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
28.8p
|
|
3.7p
|
|
0.9p
|
|
2.2p
|
|
5.8p
|
|
2.0p
|
|
43.4p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares (millions)
|
4,079
|
|
|
|
|
|
|
|
|
|
|
|
4,079
|
Three months ended 30 June 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
results
£m
|
|
Intangible
amort-
isation
£m
|
|
Intangible
impair-
ment
£m
|
|
Major
restruct-
uring
£m
|
|
Trans-
action-
related
£m
|
|
Divest-
ments,
Significant
legal
and
other
items
£m
|
|
Core
results
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
7,178
|
|
|
|
|
|
|
|
|
|
|
|
7,178
|
|
Cost of
sales
|
(1,932)
|
|
164
|
|
|
|
33
|
|
|
|
7
|
|
(1,728)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
5,246
|
|
164
|
|
|
|
33
|
|
|
|
7
|
|
5,450
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administration
|
(2,268)
|
|
|
|
|
|
11
|
|
|
|
66
|
|
(2,191)
|
|
Research
and development
|
(1,341)
|
|
20
|
|
4
|
|
2
|
|
|
|
|
|
(1,315)
|
|
Royalty
income
|
226
|
|
|
|
|
|
|
|
|
|
|
|
226
|
|
Other
operating income/(expense)
|
278
|
|
|
|
|
|
|
|
(189)
|
|
(89)
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
2,141
|
|
184
|
|
4
|
|
46
|
|
(189)
|
|
(16)
|
|
2,170
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
finance expense
|
(152)
|
|
|
|
|
|
1
|
|
|
|
(1)
|
|
(152)
|
|
Share
of after tax profit/(loss) of associates
and joint ventures
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
1,987
|
|
184
|
|
4
|
|
47
|
|
(189)
|
|
(17)
|
|
2,016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
(242)
|
|
(40)
|
|
(1)
|
|
(11)
|
|
17
|
|
(38)
|
|
(315)
|
|
Tax rate %
|
12.2%
|
|
|
|
|
|
|
|
|
|
|
|
15.6%
|
|
Profit after taxation
|
1,745
|
|
144
|
|
3
|
|
36
|
|
(172)
|
|
(55)
|
|
1,701
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to non-controlling
interests
|
121
|
|
|
|
|
|
|
|
9
|
|
|
|
130
|
|
Profit attributable to shareholders
|
1,624
|
|
144
|
|
3
|
|
36
|
|
(181)
|
|
(55)
|
|
1,571
|
|
|
1,745
|
|
144
|
|
3
|
|
36
|
|
(172)
|
|
(55)
|
|
1,701
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
40.1p
|
|
3.5p
|
|
0.1p
|
|
0.9p
|
|
(4.5)p
|
|
(1.3)p
|
|
38.8p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares (millions)
|
4,053
|
|
|
|
|
|
|
|
|
|
|
|
4,053
|
Adjusting items Q2
2024
Major restructuring and integration
Total
Major restructuring charges incurred in Q2 2024 were £124
million (Q2 2023: £46 million), analysed as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 2024
|
|
Q2
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
£m
|
|
Non-
cash
£m
|
|
Total
£m
|
|
Cash
£m
|
|
Non-
cash
£m
|
|
Total
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Separation
Preparation restructuring
programme
|
99
|
|
8
|
|
107
|
|
25
|
|
4
|
|
29
|
|
Significant
acquisitions
|
16
|
|
1
|
|
17
|
|
15
|
|
1
|
|
16
|
|
Legacy
programmes
|
–
|
|
–
|
|
–
|
|
2
|
|
(1)
|
|
1
|
|
|
115
|
|
9
|
|
124
|
|
42
|
|
4
|
|
46
|
The
Separation Preparation programme incurred cash charges of £99
million primarily from restructuring of some commercial and
administrative functions as well as Global Supply Chain. The
non-cash charges of £8 million primarily reflected the write
down of assets in manufacturing locations.
Costs
of significant acquisitions relate to integration costs of Sierra
Oncology Inc. (Sierra) and Affinivax Inc. (Affinivax) which were
acquired in Q3 2022, BELLUS Health Inc. (Bellus) acquired in Q2
2023 and Aiolos acquired in Q1 2024.
Transaction-related adjustments
Transaction-related
adjustments resulted in a net charge of £398 million (Q2 2023:
£189 million credit), the majority of which related to
charges/(credits) for the remeasurement of contingent consideration
liabilities, the liabilities for the Pfizer put option, and Pfizer
and Shionogi preferential dividends in ViiV
Healthcare.
|
|
|
|
|
|
Charge/(credit)
|
Q2 2024
£m
|
|
Q2
2023
£m
|
|
Contingent
consideration on former Shionogi-ViiV Healthcare joint
Venture
(including Shionogi preferential dividends)
|
228
|
|
(9)
|
|
ViiV
Healthcare put options and Pfizer preferential
dividends
|
4
|
|
(138)
|
|
Contingent
consideration on former Novartis Vaccines business
|
132
|
|
(53)
|
|
Contingent
consideration on acquisition of Affinivax
|
11
|
|
11
|
|
Other
adjustments
|
23
|
|
–
|
|
|
|
|
|
|
Total
transaction-related charges
|
398
|
|
(189)
|
The
£228 million charge relating to the contingent consideration
for the former Shionogi-ViiV Healthcare joint venture represented
an increase in the valuation of the contingent consideration due to
Shionogi by £124 million from updated sales forecasts
and exchange rates, and the unwind of the discount for £104
million. The £4 million charge relating to the ViiV Healthcare
put option and Pfizer preferential dividends represented an
increase in the valuation of the put option primarily as a result
of updated sales forecasts.
The
ViiV Healthcare contingent consideration liability is fair valued
under IFRS. An explanation of the accounting for the
non-controlling interests in ViiV Healthcare is set out on page
19.
The
£132 million charge relating to the contingent consideration
on the former Novartis Vaccines business primarily relates to
changes to future sales forecasts.
The
£11 million charge relating to the contingent consideration on
the acquisition of Affinivax primarily relates to the unwind of the
discount.
Divestments, Significant legal charges, and other
items
Divestments,
Significant legal charges, and other items included other net
income of £66 million, which includes milestone income and a
£16 million final dividend from Haleon as well as a fair value
loss of £35 million on the investment in Haleon, which was
sold in May 2024. Legal charges provide for all significant legal
matters and are not broken out separately by litigation or
investigation. Significant legal charges in the quarter primarily
reflected prospective legal fees for the defence of the litigation
relating to Zantac.
|
|
|
The
reconciliations between Total results and Core results for H1 2024
and H1 2023 are set out below.
Six months ended 30 June 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
results
£m
|
|
Intangible
amort-
isation
£m
|
|
Intangible
impair-
ment
£m
|
|
Major
restruct-
uring
£m
|
|
Trans-
action-
related
£m
|
|
Divest-
ments,
Significant
legal
and
other
items
£m
|
|
Core
results
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
15,247
|
|
|
|
|
|
|
|
|
|
|
|
15,247
|
|
Cost of
sales
|
(4,092)
|
|
362
|
|
|
|
74
|
|
38
|
|
8
|
|
(3,610)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
11,155
|
|
362
|
|
|
|
74
|
|
38
|
|
8
|
|
11,637
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administration
|
(4,552)
|
|
|
|
|
|
92
|
|
1
|
|
257
|
|
(4,202)
|
|
Research
and development
|
(2,911)
|
|
27
|
|
101
|
|
9
|
|
|
|
|
|
(2,774)
|
|
Royalty
income
|
295
|
|
|
|
|
|
|
|
|
|
|
|
295
|
|
Other
operating income/(expense)
|
(851)
|
|
|
|
|
|
6
|
|
1,063
|
|
(218)
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
3,136
|
|
389
|
|
101
|
|
181
|
|
1,102
|
|
47
|
|
4,956
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
finance expense
|
(284)
|
|
|
|
|
|
|
|
|
|
4
|
|
(280)
|
|
Share
of after tax profit/(loss) of associates
and joint venture
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
2,850
|
|
389
|
|
101
|
|
181
|
|
1,102
|
|
51
|
|
4,674
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
(465)
|
|
(84)
|
|
(25)
|
|
(47)
|
|
(197)
|
|
(9)
|
|
(827)
|
|
Tax rate %
|
16.3%
|
|
|
|
|
|
|
|
|
|
|
|
17.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation
|
2,385
|
|
305
|
|
76
|
|
134
|
|
905
|
|
42
|
|
3,847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to non-controlling
interests
|
166
|
|
|
|
|
|
|
|
158
|
|
|
|
324
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to shareholders
|
2,219
|
|
305
|
|
76
|
|
134
|
|
747
|
|
42
|
|
3,523
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,385
|
|
305
|
|
76
|
|
134
|
|
905
|
|
42
|
|
3,847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
54.5p
|
|
7.5p
|
|
1.9p
|
|
3.3p
|
|
18.3p
|
|
1.0p
|
|
86.5p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares (millions)
|
4,074
|
|
|
|
|
|
|
|
|
|
|
|
4,074
|
|
|
|
Six months ended 30 June 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
results
£m
|
|
Intangible
amort-
isation
£m
|
|
Intangible
impair-
ment
£m
|
|
Major
restruct-
uring
£m
|
|
Trans-
action-
related
£m
|
|
Divest-
ments,
Significant
legal
and
other
items
£m
|
|
Core
results
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
14,129
|
|
|
|
|
|
|
|
|
|
|
|
14,129
|
|
Cost of
sales
|
(3,875)
|
|
315
|
|
|
|
68
|
|
|
|
12
|
|
(3,480)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
10,254
|
|
315
|
|
|
|
68
|
|
|
|
12
|
|
10,649
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administration
|
(4,411)
|
|
|
|
|
|
80
|
|
|
|
75
|
|
(4,256)
|
|
Research
and development
|
(2,601)
|
|
38
|
|
20
|
|
6
|
|
|
|
|
|
(2,537)
|
|
Royalty
income
|
406
|
|
|
|
|
|
|
|
|
|
|
|
406
|
|
Other
operating income/(expense)
|
575
|
|
|
|
|
|
|
|
(460)
|
|
(115)
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
4,223
|
|
353
|
|
20
|
|
154
|
|
(460)
|
|
(28)
|
|
4,262
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
finance expense
|
(326)
|
|
|
|
|
|
1
|
|
|
|
3
|
|
(322)
|
|
Share
of after tax profit/(loss) of
associates and joint ventures
|
(4)
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
|
Profit/(loss)
on disposal of interest in associates
|
1
|
|
|
|
|
|
|
|
|
|
(1)
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
3,894
|
|
353
|
|
20
|
|
155
|
|
(460)
|
|
(26)
|
|
3,936
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
(518)
|
|
(76)
|
|
(5)
|
|
(33)
|
|
32
|
|
(18)
|
|
(618)
|
|
Tax rate %
|
13.3%
|
|
|
|
|
|
|
|
|
|
|
|
15.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation
|
3,376
|
|
277
|
|
15
|
|
122
|
|
(428)
|
|
(44)
|
|
3,318
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to non-controlling
interests
|
262
|
|
|
|
|
|
|
|
(11)
|
|
|
|
251
|
|
Profit attributable to shareholders
|
3,114
|
|
277
|
|
15
|
|
122
|
|
(417)
|
|
(44)
|
|
3,067
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,376
|
|
277
|
|
15
|
|
122
|
|
(428)
|
|
(44)
|
|
3,318
|
|
Earnings per share
|
76.9p
|
|
6.8p
|
|
0.4p
|
|
3.0p
|
|
(10.3)p
|
|
(1.0)p
|
|
75.8p
|
|
Weighted
average number of shares (millions)
|
4,048
|
|
|
|
|
|
|
|
|
|
|
|
4,048
|
Adjusting items H1
2024
Major restructuring and integration
|
|
|
Total
Major restructuring charges incurred in H1 2024 were £181
million (H1 2023: £154 million), analysed as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
H1 2024
|
|
H1
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
£m
|
|
Non-
cash
£m
|
|
Total
£m
|
|
Cash
£m
|
|
Non-
cash
£m
|
|
Total
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Separation
Preparation restructuring programme
|
127
|
|
16
|
|
143
|
|
62
|
|
51
|
|
113
|
|
Significant
acquisitions
|
35
|
|
1
|
|
36
|
|
36
|
|
2
|
|
38
|
|
Legacy
programmes
|
2
|
|
–
|
|
2
|
|
2
|
|
1
|
|
3
|
|
|
164
|
|
17
|
|
181
|
|
100
|
|
54
|
|
154
|
The
Separation Preparation programme incurred cash charges of £127
million primarily from the restructuring of some commercial and
administrative functions as well as Global Supply Chain. The
non-cash charges of £16 million primarily reflected the
write-down of assets in manufacturing locations.
The
programme is now largely complete and has delivered its target of
£1.1 billion of annual savings, with total costs still
expected at £2.4 billion, with slightly higher cash charges of
£1.7 billion but lower non-cash charges of £0.7
billion.
Costs
of significant acquisitions relate to integration costs of Sierra
Oncology Inc (Sierra) and Affinivax Inc. (Affinivax) which were
acquired in Q3 2022, Bellus Health Inc. (Bellus) acquired in Q2
2023 and Aiolos acquired in Q1 2024.
Transaction-related adjustments
Transaction-related
adjustments resulted in a net charge of £1,102 million (H1
2023: £460 million net credit), the majority of which related
to charges/(credits) for the remeasurement of contingent
consideration liabilities, the liabilities for the Pfizer put
option, and Pfizer and Shionogi preferential dividends in ViiV
Healthcare.
|
|
|
|
|
|
Charge/(credit)
|
H1 2024
£m
|
|
H1 2023
£m
|
|
|
|
|
|
|
Contingent
consideration on former Shionogi-ViiV Healthcare joint
Venture
(including Shionogi preferential dividends)
|
814
|
|
(73)
|
|
ViiV
Healthcare put options and Pfizer preferential
dividends
|
70
|
|
(243)
|
|
Contingent
consideration on former Novartis Vaccines business
|
160
|
|
(122)
|
|
Contingent
consideration on acquisition of Affinivax
|
16
|
|
(22)
|
|
Other
adjustments
|
42
|
|
-
|
|
|
|
|
|
|
Total
transaction-related charges
|
1,102
|
|
(460)
|
The
£814 million charge relating to the contingent consideration
for the former Shionogi-ViiV Healthcare joint venture represented
an increase in the valuation of the contingent consideration due to
Shionogi, driven by £603 million from updated future sales
forecasts and exchange rates, and the unwind of the discount for
£211 million. The £70 million charge relating to the ViiV
Healthcare put option and Pfizer preferential dividends represented
an increase in the valuation of the put option primarily as a
result of updated sales forecasts.
The
ViiV Healthcare contingent consideration liability is fair valued
under IFRS. An explanation of the accounting for the
non-controlling interests in ViiV Healthcare is set out on page
19.
The
£160 million charge relating to the contingent consideration
on the former Novartis Vaccines business primarily relates to
changes to future sales forecasts.
The
£16 million charge relating to the contingent consideration on
the acquisition of Affinivax primarily relates to the unwind of the
discount.
Divestments, Significant legal charges, and other
items
Divestments,
Significant legal charges, and other items primarily included
£218 million of other net income from milestones and dividends
related to investments, including a £16 million final dividend
received from the investment in Haleon, as well as a fair value
gain of £22 million on the investment in Haleon, which was
sold in May 2024. Legal charges provide for all significant legal
matters, including Zantac,
and are not broken out separately by litigation or investigation.
Significant legal charges in the year primarily reflected increased
legal charges for Zantac of
which the vast majority relate to the prospective legal fees for
the defence of the litigation.
|
|
|
Financial
information
|
|
Income
statement
|
|
|
|
|
|
|
|
|
|
|
|
Q2 2024
£m
|
|
Q2
2023
£m
|
|
H1 2024
£m
|
|
H1
2023
£m
|
|
|
|
|
|
|
|
|
|
|
TURNOVER
|
7,884
|
|
7,178
|
|
15,247
|
|
14,129
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
(2,122)
|
|
(1,932)
|
|
(4,092)
|
|
(3,875)
|
|
Gross
profit
|
5,762
|
|
5,246
|
|
11,155
|
|
10,254
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administration
|
(2,465)
|
|
(2,268)
|
|
(4,552)
|
|
(4,411)
|
|
Research
and development
|
(1,477)
|
|
(1,341)
|
|
(2,911)
|
|
(2,601)
|
|
Royalty
income
|
144
|
|
226
|
|
295
|
|
406
|
|
Other
operating income/(expense)
|
(318)
|
|
278
|
|
(851)
|
|
575
|
|
|
|
|
|
|
|
|
|
|
OPERATING PROFIT
|
1,646
|
|
2,141
|
|
3,136
|
|
4,223
|
|
|
|
|
|
|
|
|
|
|
Finance
income
|
24
|
|
33
|
|
56
|
|
62
|
|
Finance
expense
|
(174)
|
|
(185)
|
|
(340)
|
|
(388)
|
|
Share
of after tax profit/(loss) of associates and joint
ventures
|
(1)
|
|
(2)
|
|
(2)
|
|
(4)
|
|
Profit/(loss)
on disposal of interests in associates and joint
ventures
|
–
|
|
–
|
|
–
|
|
1
|
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAXATION
|
1,495
|
|
1,987
|
|
2,850
|
|
3,894
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
(191)
|
|
(242)
|
|
(465)
|
|
(518)
|
|
Tax rate %
|
12.8%
|
|
12.2%
|
|
16.3%
|
|
13.3%
|
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAXATION
|
1,304
|
|
1,745
|
|
2,385
|
|
3,376
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling interests
|
131
|
|
121
|
|
166
|
|
262
|
|
Profit
attributable to shareholders
|
1,173
|
|
1,624
|
|
2,219
|
|
3,114
|
|
|
1,304
|
|
1,745
|
|
2,385
|
|
3,376
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE
|
28.8p
|
|
40.1p
|
|
54.5p
|
|
76.9p
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share
|
28.5p
|
|
39.7p
|
|
53.9p
|
|
76.2p
|
|
|
|
|
|
|
|
|
|
|
|
|
Statement of comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
Q2 2024
£m
|
|
Q2
2023
£m
|
|
H1 2024
£m
|
|
H1
2023
£m
|
|
|
|
|
|
|
|
|
|
|
Total
profit for the period
|
1,304
|
|
1,745
|
|
2,385
|
|
3,376
|
|
|
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently to income
statement:
|
|
|
|
|
|
|
|
|
Exchange
movements on overseas net assets and net
investment hedges
|
(21)
|
|
(80)
|
|
(211)
|
|
7
|
|
Reclassification
of exchange movements on liquidation or
disposal of overseas subsidiaries and associates
|
1
|
|
(10)
|
|
1
|
|
(13)
|
|
Fair
value movements on cash flow hedges
|
–
|
|
1
|
|
–
|
|
1
|
|
Deferred
tax on fair value movements on cash flow hedges
|
–
|
|
(1)
|
|
–
|
|
(1)
|
|
Reclassification
of cash flow hedges to income statement
|
–
|
|
2
|
|
2
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
(20)
|
|
(88)
|
|
(208)
|
|
(3)
|
|
|
|
|
|
|
|
|
|
|
Items that will not be reclassified to income
statement:
|
|
|
|
|
|
|
|
|
Exchange
movements on overseas net assets of
non-controlling interests
|
4
|
|
(8)
|
|
7
|
|
(22)
|
|
Fair
value movements on equity investments
|
(159)
|
|
51
|
|
(81)
|
|
(117)
|
|
Tax on
fair value movements on equity investments
|
18
|
|
(5)
|
|
3
|
|
17
|
|
Fair
value movements on cash flow hedges
|
(2)
|
|
(34)
|
|
(1)
|
|
(34)
|
|
Remeasurement
gains/(losses) on defined benefit plans
|
135
|
|
(300)
|
|
181
|
|
50
|
|
Tax on
remeasurement losses/(gains) on defined benefit
plans
|
(32)
|
|
79
|
|
(42)
|
|
(8)
|
|
|
|
|
|
|
|
|
|
|
|
(36)
|
|
(217)
|
|
67
|
|
(114)
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income/(expense) for the period
|
(56)
|
|
(305)
|
|
(141)
|
|
(117)
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income for the period
|
1,248
|
|
1,440
|
|
2,244
|
|
3,259
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income for the period attributable to:
|
|
|
|
|
|
|
|
|
Shareholders
|
1,113
|
|
1,327
|
|
2,071
|
|
3,019
|
|
Non-controlling interests
|
135
|
|
113
|
|
173
|
|
240
|
|
|
|
|
|
|
|
|
|
|
|
1,248
|
|
1,440
|
|
2,244
|
|
3,259
|
|
|
|
|
|
|
|
30 June 2024
£m
|
|
31
December 2023
£m
|
|
ASSETS
|
|
|
|
|
Non-current assets
|
|
|
|
|
Property,
plant and equipment
|
8,982
|
|
9,020
|
|
Right
of use assets
|
841
|
|
937
|
|
Goodwill
|
6,960
|
|
6,811
|
|
Other
intangible assets
|
15,473
|
|
14,768
|
|
Investments
in associates and joint ventures
|
53
|
|
55
|
|
Other
investments
|
1,099
|
|
1,137
|
|
Deferred
tax assets
|
6,166
|
|
6,049
|
|
Other
non-current assets
|
1,728
|
|
1,584
|
|
|
|
|
|
|
Total non-current assets
|
41,302
|
|
40,361
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
Inventories
|
5,859
|
|
5,498
|
|
Current
tax recoverable
|
519
|
|
373
|
|
Trade
and other receivables
|
7,259
|
|
7,385
|
|
Derivative
financial instruments
|
84
|
|
130
|
|
Current
equity investments
|
–
|
|
2,204
|
|
Liquid
investments
|
21
|
|
42
|
|
Cash
and cash equivalents
|
2,962
|
|
2,936
|
|
Assets
held for sale
|
60
|
|
76
|
|
|
|
|
|
|
Total current assets
|
16,764
|
|
18,644
|
|
|
|
|
|
|
TOTAL ASSETS
|
58,066
|
|
59,005
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
Current liabilities
|
|
|
|
|
Short-term
borrowings
|
(3,366)
|
|
(2,813)
|
|
Contingent
consideration liabilities
|
(1,095)
|
|
(1,053)
|
|
Trade
and other payables
|
(14,245)
|
|
(15,844)
|
|
Derivative
financial instruments
|
(103)
|
|
(114)
|
|
Current
tax payable
|
(731)
|
|
(500)
|
|
Short-term
provisions
|
(805)
|
|
(744)
|
|
|
|
|
|
|
Total current liabilities
|
(20,345)
|
|
(21,068)
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
Long-term
borrowings
|
(13,577)
|
|
(15,205)
|
|
Corporation
tax payable
|
(104)
|
|
(75)
|
|
Deferred
tax liabilities
|
(290)
|
|
(311)
|
|
Pensions
and other post-employment benefits
|
(2,243)
|
|
(2,340)
|
|
Other
provisions
|
(567)
|
|
(495)
|
|
Contingent
consideration liabilities
|
(6,043)
|
|
(5,609)
|
|
Other
non-current liabilities
|
(1,127)
|
|
(1,107)
|
|
|
|
|
|
|
Total non-current liabilities
|
(23,951)
|
|
(25,142)
|
|
|
|
|
|
|
TOTAL LIABILITIES
|
(44,296)
|
|
(46,210)
|
|
|
|
|
|
|
NET ASSETS
|
13,770
|
|
12,795
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
Share
capital
|
1,348
|
|
1,348
|
|
Share
premium account
|
3,472
|
|
3,451
|
|
Retained
earnings
|
8,583
|
|
7,239
|
|
Other
reserves
|
969
|
|
1,309
|
|
|
|
|
|
|
Shareholders’ equity
|
14,372
|
|
13,347
|
|
|
|
|
|
|
Non-controlling
interests
|
(602)
|
|
(552)
|
|
|
|
|
|
|
TOTAL EQUITY
|
13,770
|
|
12,795
|
|
Statement of changes in
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
capital
£m
|
|
Share
premium
£m
|
|
Retained
earnings
£m
|
|
Other
reserves
£m
|
|
Share-
holder’s
equity
£m
|
|
Non-
controlling
interests
£m
|
|
Total
equity
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1
January 2024
|
1,348
|
|
3,451
|
|
7,239
|
|
1,309
|
|
13,347
|
|
(552)
|
|
12,795
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
for the period
|
|
|
|
|
2,219
|
|
|
|
2,219
|
|
166
|
|
2,385
|
|
Other comprehensive
income/(expense) for the period
|
|
|
|
|
(69)
|
|
(79)
|
|
(148)
|
|
7
|
|
(141)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income/(expense)
for the period
|
|
|
|
|
2,150
|
|
(79)
|
|
2,071
|
|
173
|
|
2,244
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
to non-controlling interests
|
|
|
|
|
|
|
|
|
|
|
(219)
|
|
(219)
|
|
Dividends
to shareholders
|
|
|
|
|
(1,220)
|
|
|
|
(1,220)
|
|
|
|
(1,220)
|
|
Realised
after tax losses on disposal
or liquidation of equity investments
|
|
|
|
|
(46)
|
|
46
|
|
|
|
|
|
–
|
|
Share
of associates and joint ventures
realised profit/(loss) on disposal of
equity investments
|
|
|
|
|
52
|
|
(52)
|
|
|
|
|
|
–
|
|
Shares
issued
|
|
|
19
|
|
|
|
|
|
19
|
|
|
|
19
|
|
Write-down
on shares held by ESOP Trusts
|
|
|
|
|
(204)
|
|
204
|
|
|
|
|
|
–
|
|
Shares
acquired by ESOP Trusts
|
|
|
2
|
|
457
|
|
(459)
|
|
|
|
|
|
–
|
|
Share-based
incentive plans
|
|
|
|
|
155
|
|
|
|
155
|
|
|
|
155
|
|
Contributions
from non-controlling interests
|
|
|
|
|
|
|
|
|
|
|
1
|
|
1
|
|
Changes
to non-controlling interests
|
|
|
|
|
|
|
|
|
–
|
|
(5)
|
|
(5)
|
|
At 30 June 2024
|
1,348
|
|
3,472
|
|
8,583
|
|
969
|
|
14,372
|
|
(602)
|
|
13,770
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
capital
£m
|
|
Share
premium
£m
|
|
Retained
earnings
£m
|
|
Other
reserves
£m
|
|
Share-
holder’s
equity
£m
|
|
Non-
controlling
interests
£m
|
|
Total
equity
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1
January 2023
|
1,347
|
|
3,440
|
|
4,363
|
|
1,448
|
|
10,598
|
|
(502)
|
|
10,096
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
for the period
|
|
|
|
|
3,114
|
|
–
|
|
3,114
|
|
262
|
|
3,376
|
|
Other comprehensive
income/(expense) for the period
|
|
|
|
|
15
|
|
(110)
|
|
(95)
|
|
(22)
|
|
(117)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income/(expense)
for the period
|
|
|
|
|
3,129
|
|
(110)
|
|
3,019
|
|
240
|
|
3,259
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
to non-controlling interests
|
|
|
|
|
|
|
|
|
|
|
(277)
|
|
(277)
|
|
Contributions
from non-controlling
interests
|
|
|
|
|
|
|
|
|
|
|
7
|
|
7
|
|
Dividends
to shareholders
|
|
|
|
|
(1,112)
|
|
|
|
(1,112)
|
|
|
|
(1,112)
|
|
Realised
after tax losses on disposal or
liquidation of equity investments
|
|
|
|
|
(9)
|
|
9
|
|
|
|
|
|
–
|
|
Share
of associates and joint ventures
realised profits on disposal of equity
investments
|
|
|
|
|
2
|
|
(2)
|
|
|
|
|
|
–
|
|
Share
issued
|
1
|
|
8
|
|
|
|
|
|
9
|
|
|
|
9
|
|
Write-down
of shares held by ESOP Trusts
|
|
|
|
|
(101)
|
|
101
|
|
|
|
|
|
–
|
|
Shares
acquired by ESOP Trusts
|
|
|
2
|
|
1
|
|
(3)
|
|
|
|
|
|
–
|
|
Share-based
incentive plans
|
|
|
|
|
145
|
|
|
|
145
|
|
|
|
145
|
|
Hedging
gain/(loss) after taxation
transferred to non-financial assets
|
|
|
|
|
|
|
32
|
|
32
|
|
|
|
32
|
|
At 30
June 2023
|
1,348
|
|
3,450
|
|
6,418
|
|
1,475
|
|
12,691
|
|
(532)
|
|
12,159
|
|
Cash flow statement six
months ended 30 June 2024
|
|
|
|
|
|
|
|
H1 2024
£m
|
|
H1
2023
£m
|
|
Profit after tax
|
2,385
|
|
3,376
|
|
Tax on
profits
|
465
|
|
518
|
|
Share
of after tax loss/(profit) of associates and joint
ventures
|
2
|
|
4
|
|
(Profit)/loss
on disposal of interest in associates and joint
ventures
|
–
|
|
(1)
|
|
Net
finance expense
|
284
|
|
326
|
|
Depreciation,
amortisation and other adjusting items
|
1,188
|
|
1,092
|
|
(Increase)/decrease
in working capital
|
(955)
|
|
(1,237)
|
|
Contingent
consideration paid
|
(619)
|
|
(575)
|
|
Increase/(decrease)
in other net liabilities (excluding contingent consideration
paid)
|
26
|
|
(1,596)
|
|
Cash generated from operations
|
2,776
|
|
1,907
|
|
Taxation
paid
|
(705)
|
|
(547)
|
|
Total net cash inflow/(outflow) from operating
activities
|
2,071
|
|
1,360
|
|
|
|
|
|
|
Cash flow from investing activities
|
|
|
|
|
Purchase
of property, plant and equipment
|
(550)
|
|
(529)
|
|
Proceeds
from sale of property, plant and equipment
|
3
|
|
10
|
|
Purchase
of intangible assets
|
(455)
|
|
(535)
|
|
Proceeds
from sale of intangible assets
|
28
|
|
12
|
|
Purchase
of equity investments
|
(47)
|
|
(59)
|
|
Proceeds
from sale of equity investments
|
2,296
|
|
809
|
|
Purchase
of businesses, net of cash acquired
|
(748)
|
|
(1,399)
|
|
Investment
in joint ventures and associates
|
(3)
|
|
–
|
|
Contingent
consideration paid
|
(7)
|
|
(4)
|
|
Disposal
of businesses
|
(10)
|
|
58
|
|
Interest
received
|
61
|
|
62
|
|
(Increase)/decrease
in liquid investments
|
22
|
|
–
|
|
Dividends
from joint ventures and associates
|
15
|
|
1
|
|
Dividend
and distributions from investments
|
16
|
|
201
|
|
Proceeds
from disposal of associates and Joint ventures
|
–
|
|
1
|
|
Total net cash inflow/(outflow) from investing
activities
|
621
|
|
(1,372)
|
|
|
|
|
|
|
Cash flow from financing activities
|
|
|
|
|
Issue
of share capital
|
19
|
|
9
|
|
Repayment
of long-term loans
|
–
|
|
(150)
|
|
Repayment
of short-term loans
|
(788)
|
|
(653)
|
|
Net
increase/(repayment) of other short-term loans
|
(74)
|
|
2,247
|
|
Repayment
of lease liabilities
|
(114)
|
|
(94)
|
|
Interest
paid
|
(342)
|
|
(448)
|
|
Dividends
paid to shareholders
|
(1,220)
|
|
(1,112)
|
|
Distribution
to non-controlling interests
|
(207)
|
|
(277)
|
|
Contributions
from non-controlling interests
|
1
|
|
7
|
|
Other
financing items
|
81
|
|
184
|
|
Total net cash inflow/(outflow) from financing
activities
|
(2,644)
|
|
(287)
|
|
Increase/(decrease) in cash and bank overdrafts in the
period
|
48
|
|
(299)
|
|
Cash
and bank overdrafts at beginning of the period
|
2,858
|
|
3,425
|
|
Exchange
adjustments
|
(27)
|
|
(88)
|
|
Increase/(decrease)
in cash and bank overdrafts
|
48
|
|
(299)
|
|
Cash and bank overdrafts at end of the period
|
2,879
|
|
3,038
|
|
Cash
and bank overdrafts at end of the period comprise:
|
|
|
|
|
Cash
and cash equivalents
|
2,962
|
|
3,140
|
|
Overdrafts
|
(83)
|
|
(102)
|
|
|
2,879
|
|
3,038
|
Sales tables
Vaccines turnover – three months ended 30 June
2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
Shingles
|
832
|
|
(5)
|
|
(4)
|
|
301
|
|
(36)
|
|
(36)
|
|
244
|
|
–
|
|
2
|
|
287
|
|
75
|
|
80
|
|
Shingrix
|
832
|
|
(5)
|
|
(4)
|
|
301
|
|
(36)
|
|
(36)
|
|
244
|
|
–
|
|
2
|
|
287
|
|
75
|
|
80
|
|
Meningitis
|
323
|
|
21
|
|
24
|
|
143
|
|
19
|
|
21
|
|
116
|
|
10
|
|
12
|
|
64
|
|
56
|
|
63
|
|
Bexsero
|
232
|
|
20
|
|
23
|
|
85
|
|
23
|
|
26
|
|
113
|
|
11
|
|
13
|
|
34
|
|
48
|
|
57
|
|
Menveo
|
84
|
|
27
|
|
30
|
|
58
|
|
14
|
|
14
|
|
2
|
|
–
|
|
–
|
|
24
|
|
85
|
|
100
|
|
Other
|
7
|
|
17
|
|
–
|
|
–
|
|
–
|
|
–
|
|
1
|
|
–
|
|
–
|
|
6
|
|
20
|
|
–
|
|
RSV
|
62
|
|
–
|
|
–
|
|
56
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
6
|
|
–
|
|
–
|
|
Arexvy
|
62
|
|
–
|
|
–
|
|
56
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
6
|
|
–
|
|
–
|
|
Influenza
|
7
|
|
(70)
|
|
(65)
|
|
(1)
|
|
>(100)
|
|
>(100)
|
|
(1)
|
|
>(100)
|
|
>(100)
|
|
9
|
|
(61)
|
|
(61)
|
|
Fluarix, FluLaval
|
7
|
|
(70)
|
|
(65)
|
|
(1)
|
|
>(100)
|
|
>(100)
|
|
(1)
|
|
>(100)
|
|
>(100)
|
|
9
|
|
(61)
|
|
(61)
|
|
Established Vaccines
|
775
|
|
(5)
|
|
(2)
|
|
266
|
|
(14)
|
|
(13)
|
|
178
|
|
(6)
|
|
(4)
|
|
331
|
|
5
|
|
10
|
|
Infanrix, Pediarix
|
94
|
|
11
|
|
14
|
|
24
|
|
(29)
|
|
(32)
|
|
29
|
|
45
|
|
50
|
|
41
|
|
32
|
|
42
|
|
Boostrix
|
183
|
|
12
|
|
13
|
|
111
|
|
10
|
|
11
|
|
36
|
|
12
|
|
16
|
|
36
|
|
16
|
|
19
|
|
Hepatitis
|
163
|
|
3
|
|
4
|
|
92
|
|
11
|
|
13
|
|
46
|
|
–
|
|
–
|
|
25
|
|
(14)
|
|
(14)
|
|
Rotarix
|
124
|
|
(33)
|
|
(30)
|
|
28
|
|
(64)
|
|
(64)
|
|
30
|
|
7
|
|
7
|
|
66
|
|
(15)
|
|
(9)
|
|
Synflorix
|
62
|
|
(18)
|
|
(16)
|
|
–
|
|
–
|
|
–
|
|
1
|
|
(91)
|
|
(91)
|
|
61
|
|
(6)
|
|
(3)
|
|
Priorix, Priorix Tetra,
Varilrix
|
79
|
|
46
|
|
50
|
|
8
|
|
60
|
|
80
|
|
32
|
|
7
|
|
7
|
|
39
|
|
>100
|
|
>100
|
|
Cervarix
|
16
|
|
(69)
|
|
(69)
|
|
–
|
|
–
|
|
–
|
|
3
|
|
(84)
|
|
(84)
|
|
13
|
|
(61)
|
|
(61)
|
|
Other
|
54
|
|
38
|
|
44
|
|
3
|
|
(63)
|
|
(63)
|
|
1
|
|
(67)
|
|
(33)
|
|
50
|
|
79
|
|
82
|
|
Vaccines excluding
COVID-19 solutions
|
1,999
|
|
1
|
|
3
|
|
765
|
|
(15)
|
|
(14)
|
|
537
|
|
–
|
|
2
|
|
697
|
|
29
|
|
33
|
|
Pandemic vaccines
|
–
|
|
(100)
|
|
(100)
|
|
–
|
|
–
|
|
–
|
|
–
|
|
(100)
|
|
(100)
|
|
–
|
|
(100)
|
|
(100)
|
|
Pandemic
adjuvant
|
–
|
|
(100)
|
|
(100)
|
|
–
|
|
–
|
|
–
|
|
–
|
|
(100)
|
|
(100)
|
|
–
|
|
(100)
|
|
(100)
|
|
Vaccines
|
1,999
|
|
(1)
|
|
1
|
|
765
|
|
(15)
|
|
(14)
|
|
537
|
|
(4)
|
|
(2)
|
|
697
|
|
24
|
|
29
|
Vaccines turnover – six months ended 30 June
2024
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
Shingles
|
1,777
|
|
4
|
|
7
|
|
771
|
|
(21)
|
|
(19)
|
|
473
|
|
4
|
|
5
|
|
533
|
|
94
|
|
>100
|
|
Shingrix
|
1,777
|
|
4
|
|
7
|
|
771
|
|
(21)
|
|
(19)
|
|
473
|
|
4
|
|
5
|
|
533
|
|
94
|
|
>100
|
|
Meningitis
|
622
|
|
14
|
|
17
|
|
264
|
|
10
|
|
13
|
|
217
|
|
(1)
|
|
1
|
|
141
|
|
62
|
|
69
|
|
Bexsero
|
449
|
|
9
|
|
12
|
|
157
|
|
10
|
|
13
|
|
211
|
|
–
|
|
2
|
|
81
|
|
42
|
|
47
|
|
Menveo
|
164
|
|
31
|
|
35
|
|
107
|
|
11
|
|
14
|
|
4
|
|
(33)
|
|
(33)
|
|
53
|
|
>100
|
|
>100
|
|
Other
|
9
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
2
|
|
–
|
|
–
|
|
7
|
|
–
|
|
–
|
|
RSV
|
244
|
|
–
|
|
–
|
|
210
|
|
–
|
|
–
|
|
1
|
|
–
|
|
–
|
|
33
|
|
–
|
|
–
|
|
Arexvy
|
244
|
|
–
|
|
–
|
|
210
|
|
–
|
|
–
|
|
1
|
|
–
|
|
–
|
|
33
|
|
–
|
|
–
|
|
Influenza
|
20
|
|
(43)
|
|
(40)
|
|
1
|
|
–
|
|
>100
|
|
(1)
|
|
>(100)
|
|
>(100)
|
|
20
|
|
(41)
|
|
(41)
|
|
Fluarix, FluLaval
|
20
|
|
(43)
|
|
(40)
|
|
1
|
|
–
|
|
>100
|
|
(1)
|
|
>(100)
|
|
>(100)
|
|
20
|
|
(41)
|
|
(41)
|
|
Established Vaccines
|
1,613
|
|
(1)
|
|
2
|
|
597
|
|
(10)
|
|
(8)
|
|
356
|
|
(7)
|
|
(5)
|
|
660
|
|
13
|
|
18
|
|
Infanrix, Pediarix
|
239
|
|
(9)
|
|
(6)
|
|
111
|
|
(22)
|
|
(20)
|
|
60
|
|
13
|
|
15
|
|
68
|
|
1
|
|
7
|
|
Boostrix
|
321
|
|
6
|
|
9
|
|
196
|
|
2
|
|
4
|
|
69
|
|
10
|
|
13
|
|
56
|
|
19
|
|
21
|
|
Hepatitis
|
338
|
|
3
|
|
5
|
|
183
|
|
1
|
|
4
|
|
97
|
|
5
|
|
7
|
|
58
|
|
5
|
|
9
|
|
Rotarix
|
278
|
|
(14)
|
|
(10)
|
|
85
|
|
(32)
|
|
(30)
|
|
59
|
|
(3)
|
|
(2)
|
|
134
|
|
(1)
|
|
5
|
|
Synflorix
|
107
|
|
(22)
|
|
(20)
|
|
–
|
|
–
|
|
–
|
|
3
|
|
(84)
|
|
(84)
|
|
104
|
|
(13)
|
|
(9)
|
|
Priorix, Priorix Tetra,
Varilrix
|
157
|
|
47
|
|
51
|
|
14
|
|
>100
|
|
>100
|
|
61
|
|
(3)
|
|
(2)
|
|
82
|
|
>100
|
|
>100
|
|
Cervarix
|
48
|
|
(39)
|
|
(37)
|
|
–
|
|
–
|
|
–
|
|
7
|
|
(75)
|
|
(75)
|
|
41
|
|
(20)
|
|
(16)
|
|
Other
|
125
|
|
42
|
|
45
|
|
8
|
|
(43)
|
|
(50)
|
|
–
|
|
(100)
|
|
(100)
|
|
117
|
|
65
|
|
70
|
|
Vaccines excluding
COVID-19 solutions
|
4,276
|
|
9
|
|
12
|
|
1,843
|
|
(2)
|
|
–
|
|
1,046
|
|
(1)
|
|
1
|
|
1,387
|
|
42
|
|
48
|
|
Pandemic vaccines
|
–
|
|
(100)
|
|
(100)
|
|
–
|
|
–
|
|
–
|
|
–
|
|
(100)
|
|
(100)
|
|
–
|
|
(100)
|
|
(100)
|
|
Pandemic
adjuvant
|
–
|
|
(100)
|
|
(100)
|
|
–
|
|
–
|
|
–
|
|
–
|
|
(100)
|
|
(100)
|
|
–
|
|
(100)
|
|
(100)
|
|
Vaccines
|
4,276
|
|
5
|
|
8
|
|
1,843
|
|
(2)
|
|
–
|
|
1,046
|
|
(12)
|
|
(10)
|
|
1,387
|
|
39
|
|
45
|
Specialty Medicines turnover – three months ended 30 June
2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
HIV
|
1,757
|
|
11
|
|
13
|
|
1,191
|
|
13
|
|
15
|
|
382
|
|
7
|
|
8
|
|
184
|
|
11
|
|
13
|
|
Dolutegravir
products
|
1,391
|
|
5
|
|
7
|
|
881
|
|
4
|
|
6
|
|
339
|
|
4
|
|
6
|
|
171
|
|
11
|
|
13
|
|
Tivicay
|
318
|
|
(6)
|
|
(6)
|
|
193
|
|
(9)
|
|
(7)
|
|
66
|
|
(4)
|
|
(3)
|
|
59
|
|
(2)
|
|
(5)
|
|
Triumeq
|
346
|
|
(12)
|
|
(10)
|
|
241
|
|
(11)
|
|
(9)
|
|
61
|
|
(18)
|
|
(16)
|
|
44
|
|
(8)
|
|
(4)
|
|
Juluca
|
176
|
|
8
|
|
10
|
|
141
|
|
12
|
|
13
|
|
32
|
|
(6)
|
|
(3)
|
|
3
|
|
–
|
|
33
|
|
Dovato
|
551
|
|
28
|
|
30
|
|
306
|
|
29
|
|
31
|
|
180
|
|
21
|
|
23
|
|
65
|
|
51
|
|
56
|
|
Rukobia
|
38
|
|
41
|
|
44
|
|
36
|
|
44
|
|
48
|
|
2
|
|
>100
|
|
>100
|
|
–
|
|
(100)
|
|
(100)
|
|
Cabenuva
|
245
|
|
39
|
|
42
|
|
204
|
|
38
|
|
40
|
|
36
|
|
44
|
|
44
|
|
5
|
|
67
|
|
>100
|
|
Apretude
|
72
|
|
100
|
|
>100
|
|
69
|
|
92
|
|
94
|
|
–
|
|
–
|
|
–
|
|
3
|
|
–
|
|
–
|
|
Other
|
11
|
|
(31)
|
|
(37)
|
|
1
|
|
(50)
|
|
(50)
|
|
5
|
|
(17)
|
|
(17)
|
|
5
|
|
(37)
|
|
(50)
|
|
Respiratory/Immunology
and Other
|
911
|
|
15
|
|
18
|
|
637
|
|
15
|
|
17
|
|
138
|
|
19
|
|
21
|
|
136
|
|
11
|
|
22
|
|
Nucala
|
482
|
|
14
|
|
17
|
|
287
|
|
12
|
|
14
|
|
112
|
|
18
|
|
20
|
|
83
|
|
14
|
|
23
|
|
Benlysta
|
418
|
|
17
|
|
20
|
|
350
|
|
18
|
|
20
|
|
30
|
|
20
|
|
20
|
|
38
|
|
6
|
|
14
|
|
Other
|
11
|
|
10
|
|
30
|
|
–
|
|
(100)
|
|
>(100)
|
|
(4)
|
|
–
|
|
–
|
|
15
|
|
15
|
|
38
|
|
Oncology
|
356
|
|
>100
|
|
>100
|
|
251
|
|
>100
|
|
>100
|
|
86
|
|
15
|
|
17
|
|
19
|
|
>100
|
|
>100
|
|
Zejula
|
165
|
|
41
|
|
44
|
|
88
|
|
73
|
|
76
|
|
61
|
|
7
|
|
9
|
|
16
|
|
78
|
|
78
|
|
Blenrep
|
(2)
|
|
>(100)
|
|
>(100)
|
|
(2)
|
|
–
|
|
–
|
|
–
|
|
(100)
|
|
(91)
|
|
–
|
|
–
|
|
–
|
|
Jemperli
|
108
|
|
>100
|
|
>100
|
|
88
|
|
>100
|
|
>100
|
|
17
|
|
>100
|
|
>100
|
|
3
|
|
>100
|
|
>100
|
|
Ojjaara/Omjjara
|
85
|
|
–
|
|
–
|
|
77
|
|
–
|
|
–
|
|
8
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
Specialty Medicines
excluding COVID-19
solutions
|
3,024
|
|
20
|
|
22
|
|
2,079
|
|
24
|
|
26
|
|
606
|
|
10
|
|
12
|
|
339
|
|
14
|
|
20
|
|
Pandemic
|
–
|
|
(100)
|
|
(100)
|
|
–
|
|
100
|
|
100
|
|
–
|
|
(100)
|
|
(100)
|
|
–
|
|
–
|
|
–
|
|
Xevudy
|
–
|
|
(100)
|
|
(100)
|
|
–
|
|
100
|
|
100
|
|
–
|
|
(100)
|
|
(100)
|
|
–
|
|
–
|
|
–
|
|
Specialty Medicines
|
3,024
|
|
20
|
|
22
|
|
2,079
|
|
24
|
|
26
|
|
606
|
|
10
|
|
12
|
|
339
|
|
14
|
|
20
|
Specialty Medicines turnover – six months ended 30 June
2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
HIV
|
3,370
|
|
11
|
|
14
|
|
2,222
|
|
13
|
|
16
|
|
746
|
|
6
|
|
8
|
|
402
|
|
8
|
|
14
|
|
Dolutegravir
products
|
2,695
|
|
4
|
|
6
|
|
1,653
|
|
3
|
|
6
|
|
663
|
|
3
|
|
5
|
|
379
|
|
8
|
|
14
|
|
Tivicay
|
672
|
|
(4)
|
|
(1)
|
|
379
|
|
(4)
|
|
(2)
|
|
130
|
|
(4)
|
|
(2)
|
|
163
|
|
(2)
|
|
4
|
|
Triumeq
|
656
|
|
(14)
|
|
(12)
|
|
452
|
|
(13)
|
|
(11)
|
|
120
|
|
(19)
|
|
(18)
|
|
84
|
|
(14)
|
|
(10)
|
|
Juluca
|
333
|
|
6
|
|
9
|
|
263
|
|
11
|
|
14
|
|
64
|
|
(7)
|
|
(4)
|
|
6
|
|
(14)
|
|
–
|
|
Dovato
|
1,034
|
|
25
|
|
29
|
|
559
|
|
23
|
|
27
|
|
349
|
|
20
|
|
22
|
|
126
|
|
56
|
|
64
|
|
Rukobia
|
71
|
|
37
|
|
40
|
|
67
|
|
40
|
|
44
|
|
4
|
|
33
|
|
33
|
|
–
|
|
(100)
|
|
>(100)
|
|
Cabenuva
|
458
|
|
51
|
|
55
|
|
375
|
|
49
|
|
53
|
|
71
|
|
58
|
|
60
|
|
12
|
|
71
|
|
86
|
|
Apretude
|
126
|
|
>100
|
|
>100
|
|
123
|
|
>100
|
|
>100
|
|
–
|
|
–
|
|
–
|
|
3
|
|
–
|
|
–
|
|
Other
|
20
|
|
(35)
|
|
(32)
|
|
4
|
|
(56)
|
|
(44)
|
|
8
|
|
(27)
|
|
(27)
|
|
8
|
|
(27)
|
|
(27)
|
|
Respiratory/Immunology
and Other
|
1,546
|
|
11
|
|
15
|
|
1,015
|
|
7
|
|
10
|
|
270
|
|
21
|
|
23
|
|
261
|
|
18
|
|
29
|
|
Nucala
|
856
|
|
11
|
|
15
|
|
467
|
|
5
|
|
8
|
|
221
|
|
20
|
|
23
|
|
168
|
|
18
|
|
30
|
|
Benlysta
|
678
|
|
11
|
|
15
|
|
548
|
|
9
|
|
12
|
|
57
|
|
19
|
|
21
|
|
73
|
|
18
|
|
27
|
|
Other
|
12
|
|
9
|
|
27
|
|
–
|
|
>(100)
|
|
>(100)
|
|
(8)
|
|
–
|
|
(12)
|
|
20
|
|
11
|
|
28
|
|
Oncology
|
629
|
|
>100
|
|
>100
|
|
437
|
|
>100
|
|
>100
|
|
161
|
|
10
|
|
12
|
|
31
|
|
72
|
|
72
|
|
Zejula
|
306
|
|
32
|
|
35
|
|
160
|
|
58
|
|
63
|
|
119
|
|
6
|
|
8
|
|
27
|
|
50
|
|
50
|
|
Blenrep
|
(2)
|
|
>(100)
|
|
>(100)
|
|
(3)
|
|
(50)
|
|
(50)
|
|
1
|
|
(95)
|
|
(91)
|
|
–
|
|
–
|
|
–
|
|
Jemperli
|
188
|
|
>100
|
|
>100
|
|
153
|
|
>100
|
|
>100
|
|
31
|
|
>100
|
|
>100
|
|
4
|
|
>100
|
|
>100
|
|
Ojjaara/Omjjara
|
137
|
|
–
|
|
–
|
|
127
|
|
–
|
|
–
|
|
10
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
Specialty Medicines
excluding COVID-19
solutions
|
5,545
|
|
17
|
|
21
|
|
3,674
|
|
21
|
|
24
|
|
1,177
|
|
9
|
|
11
|
|
694
|
|
14
|
|
21
|
|
Pandemic
|
1
|
|
(97)
|
|
(97)
|
|
–
|
|
100
|
|
100
|
|
–
|
|
(100)
|
|
(100)
|
|
1
|
|
(97)
|
|
(97)
|
|
Xevudy
|
1
|
|
(97)
|
|
(97)
|
|
–
|
|
100
|
|
100
|
|
–
|
|
(100)
|
|
(100)
|
|
1
|
|
(97)
|
|
(97)
|
|
Specialty Medicines
|
5,546
|
|
17
|
|
20
|
|
3,674
|
|
21
|
|
24
|
|
1,177
|
|
9
|
|
11
|
|
695
|
|
8
|
|
16
|
General Medicines turnover – three months ended 30 June
2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
Respiratory
|
2,065
|
|
15
|
|
18
|
|
1,229
|
|
29
|
|
32
|
|
356
|
|
1
|
|
3
|
|
480
|
|
(2)
|
|
4
|
|
Anoro Ellipta
|
160
|
|
14
|
|
17
|
|
81
|
|
17
|
|
19
|
|
56
|
|
17
|
|
19
|
|
23
|
|
–
|
|
9
|
|
Flixotide/Flovent
|
132
|
|
38
|
|
41
|
|
91
|
|
72
|
|
75
|
|
18
|
|
6
|
|
–
|
|
23
|
|
(12)
|
|
(4)
|
|
Relvar/Breo Ellipta
|
281
|
|
(2)
|
|
1
|
|
115
|
|
(5)
|
|
(2)
|
|
92
|
|
–
|
|
2
|
|
74
|
|
(1)
|
|
4
|
|
Seretide/Advair
|
298
|
|
(7)
|
|
(5)
|
|
120
|
|
(4)
|
|
(2)
|
|
55
|
|
(15)
|
|
(14)
|
|
123
|
|
(7)
|
|
(3)
|
|
Trelegy Ellipta
|
842
|
|
38
|
|
41
|
|
667
|
|
45
|
|
48
|
|
76
|
|
13
|
|
15
|
|
99
|
|
19
|
|
28
|
|
Ventolin
|
188
|
|
10
|
|
13
|
|
100
|
|
15
|
|
16
|
|
26
|
|
30
|
|
30
|
|
62
|
|
(3)
|
|
3
|
|
Other
Respiratory
|
164
|
|
–
|
|
4
|
|
55
|
|
62
|
|
59
|
|
33
|
|
(21)
|
|
(19)
|
|
76
|
|
(14)
|
|
(6)
|
|
Other General Medicines
|
796
|
|
(5)
|
|
(1)
|
|
74
|
|
(10)
|
|
(6)
|
|
173
|
|
(6)
|
|
(5)
|
|
549
|
|
(5)
|
|
2
|
|
Augmentin
|
142
|
|
6
|
|
10
|
|
–
|
|
–
|
|
–
|
|
41
|
|
2
|
|
2
|
|
101
|
|
7
|
|
14
|
|
Lamictal
|
109
|
|
(5)
|
|
(2)
|
|
49
|
|
(13)
|
|
(11)
|
|
26
|
|
(4)
|
|
(4)
|
|
34
|
|
6
|
|
16
|
|
Other
"Other General Medicines"
|
545
|
|
(8)
|
|
(3)
|
|
25
|
|
(4)
|
|
4
|
|
106
|
|
(9)
|
|
(8)
|
|
414
|
|
(8)
|
|
(2)
|
|
General Medicines
|
2,861
|
|
9
|
|
12
|
|
1,303
|
|
26
|
|
29
|
|
529
|
|
(1)
|
|
–
|
|
1,029
|
|
(3)
|
|
3
|
General Medicines turnover – six months ended 30 June
2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
Respiratory
|
3,790
|
|
6
|
|
10
|
|
2,092
|
|
17
|
|
20
|
|
717
|
|
(1)
|
|
1
|
|
981
|
|
(7)
|
|
–
|
|
Anoro Ellipta
|
279
|
|
7
|
|
10
|
|
125
|
|
4
|
|
7
|
|
108
|
|
15
|
|
17
|
|
46
|
|
–
|
|
7
|
|
Flixotide/Flovent
|
271
|
|
7
|
|
10
|
|
186
|
|
17
|
|
20
|
|
36
|
|
(5)
|
|
(5)
|
|
49
|
|
(12)
|
|
(7)
|
|
Relvar/Breo Ellipta
|
551
|
|
(2)
|
|
2
|
|
214
|
|
(3)
|
|
–
|
|
190
|
|
–
|
|
2
|
|
147
|
|
(3)
|
|
6
|
|
Seretide/Advair
|
580
|
|
(12)
|
|
(9)
|
|
212
|
|
(13)
|
|
(11)
|
|
116
|
|
(15)
|
|
(13)
|
|
252
|
|
(10)
|
|
(5)
|
|
Trelegy Ellipta
|
1,433
|
|
33
|
|
38
|
|
1,092
|
|
39
|
|
42
|
|
151
|
|
13
|
|
14
|
|
190
|
|
23
|
|
34
|
|
Ventolin
|
356
|
|
(5)
|
|
(2)
|
|
186
|
|
(5)
|
|
(2)
|
|
51
|
|
6
|
|
8
|
|
119
|
|
(11)
|
|
(6)
|
|
Other
Respiratory
|
320
|
|
(14)
|
|
(9)
|
|
77
|
|
43
|
|
44
|
|
65
|
|
(22)
|
|
(20)
|
|
178
|
|
(24)
|
|
(18)
|
|
Other General Medicines
|
1,635
|
|
(6)
|
|
(2)
|
|
127
|
|
(27)
|
|
(25)
|
|
353
|
|
(4)
|
|
(2)
|
|
1,155
|
|
(4)
|
|
2
|
|
Augmentin
|
328
|
|
5
|
|
10
|
|
–
|
|
–
|
|
–
|
|
95
|
|
(1)
|
|
–
|
|
233
|
|
8
|
|
15
|
|
Lamictal
|
210
|
|
(14)
|
|
(11)
|
|
86
|
|
(30)
|
|
(28)
|
|
54
|
|
(2)
|
|
–
|
|
70
|
|
4
|
|
12
|
|
Other
"Other General Medicines"
|
1,097
|
|
(8)
|
|
(3)
|
|
41
|
|
(21)
|
|
(17)
|
|
204
|
|
(6)
|
|
(4)
|
|
852
|
|
(8)
|
|
(2)
|
|
General Medicines
|
5,425
|
|
2
|
|
6
|
|
2,219
|
|
13
|
|
16
|
|
1,070
|
|
(2)
|
|
–
|
|
2,136
|
|
(6)
|
|
1
|
Commercial Operations turnover
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
Three months ended 30 June 2024
|
7,884
|
|
10
|
|
13
|
|
4,147
|
|
15
|
|
17
|
|
1,672
|
|
2
|
|
3
|
|
2,065
|
|
7
|
|
13
|
|
Six months ended 30 June 2024
|
15,247
|
|
8
|
|
12
|
|
7,736
|
|
12
|
|
15
|
|
3,293
|
|
(2)
|
|
–
|
|
4,218
|
|
8
|
|
15
|
Commercial Operations turnover excluding COVID-19
solutions
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
Three months ended 30 June 2024
|
7,884
|
|
10
|
|
13
|
|
4,147
|
|
15
|
|
17
|
|
1,672
|
|
3
|
|
5
|
|
2,065
|
|
8
|
|
14
|
|
Six months ended 30 June 2024
|
15,246
|
|
9
|
|
13
|
|
7,736
|
|
12
|
|
15
|
|
3,293
|
|
2
|
|
4
|
|
4,217
|
|
10
|
|
16
|
Segment information
Operating
segments are reported based on the financial information provided
to the Chief Executive Officer and the responsibilities of the GSK
Leadership Team (GLT). GSK reports results under two segments:
Commercial Operations and Total R&D. Members of the GLT are
responsible for each segment.
R&D
investment is essential for the sustainability of the business.
However, for segment reporting the Commercial operating profits
exclude allocations of globally funded R&D.
The
Total R&D segment is the responsibility of the Chief Scientific
Officer and is reported as a separate segment. The operating costs
of this segment includes R&D activities across Specialty
Medicines, including HIV and Vaccines. It includes R&D and some
SG&A costs relating to regulatory and other
functions.
The
Group’s management reporting process allocates intra-Group
profit on a product sale to the market in which that sale is
recorded, and the profit analyses below have been presented on that
basis.
Adjusting
items reconciling segment profit and operating profit comprise
items not specifically allocated to segment profit. These include
impairment and amortisation of intangible assets, major
restructuring costs, which include impairments of tangible assets
and computer software, transaction-related adjustments related to
significant acquisitions, proceeds and costs of disposals of
associates, products and businesses, significant legal charges and
expenses on the settlement of litigation and government
investigations, other operating income other than royalty income,
and other items including amounts reclassified from the foreign
currency translation reserve to the income statement upon the
liquidation of a subsidiary where the amount exceeds £25
million.
|
|
|
|
|
|
|
|
|
|
Turnover by segment
|
|
|
Q2 2024
£m
|
|
Q2
2023
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
|
|
Commercial
Operations (total turnover)
|
7,884
|
|
7,178
|
|
10
|
|
13
|
|
|
|
|
|
|
|
|
|
|
Operating profit by segment
|
|
|
Q2 2024
£m
|
|
Q2
2023
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
|
|
Commercial
Operations
|
3,962
|
|
3,481
|
|
14
|
|
17
|
|
Research
and Development
|
(1,413)
|
|
(1,273)
|
|
11
|
|
13
|
|
|
|
|
|
|
|
|
|
|
Segment
profit
|
2,549
|
|
2,208
|
|
15
|
|
19
|
|
Corporate
and other unallocated costs
|
(36)
|
|
(38)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core
operating profit
|
2,513
|
|
2,170
|
|
16
|
|
18
|
|
Adjusting
items
|
(867)
|
|
(29)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
operating profit
|
1,646
|
|
2,141
|
|
(23)
|
|
(22)
|
|
|
|
|
|
|
|
|
|
|
Finance
income
|
24
|
|
33
|
|
|
|
|
|
Finance
costs
|
(174)
|
|
(185)
|
|
|
|
|
|
Share
of after tax profit/(loss) of associates and
joint ventures
|
(1)
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
before taxation
|
1,495
|
|
1,987
|
|
(25)
|
|
(23)
|
Commercial
Operations Core operating profit of £3,962 million grew in the
quarter driven by sales growth and favourable product and
regional mix as well as price benefits from channel mix and
adjustments to returns and rebates in the US, partly offset by
disciplined investment in growth assets and lower royalty
income.
The
R&D segment operating expenses of £1,413 million, grew in
the quarter driven by late-stage investment in Vaccines,
Respiratory/Immunology and Infectious Diseases, including
pneumococcal and mRNA programmes, and camlipixant for refractory
chronic cough (RCC). This was partly offset by decreases
related to the completion of late-stage clinical development
programmes including RSV and momelotinib, and reduced investment in
Zejula.
|
|
|
|
|
|
|
|
|
|
Turnover by segment
|
|
|
H1 2024
£m
|
|
H1
2023
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
|
|
Commercial
Operations (total turnover)
|
15,247
|
|
14,129
|
|
8
|
|
12
|
|
|
|
|
|
|
|
|
|
|
Operating profit by segment
|
|
|
H1 2024
£m
|
|
H1
2023
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
|
|
Commercial
Operations
|
7,817
|
|
6,856
|
|
14
|
|
19
|
|
Research
and Development
|
(2,721)
|
|
(2,505)
|
|
9
|
|
11
|
|
|
|
|
|
|
|
|
|
|
Segment
profit
|
5,096
|
|
4,351
|
|
17
|
|
23
|
|
Corporate
and other unallocated costs
|
(140)
|
|
(89)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core
operating profit
|
4,956
|
|
4,262
|
|
16
|
|
22
|
|
Adjusting
items
|
(1,820)
|
|
(39)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
operating profit
|
3,136
|
|
4,223
|
|
(26)
|
|
(20)
|
|
|
|
|
|
|
|
|
|
|
Finance
income
|
56
|
|
62
|
|
|
|
|
|
Finance
costs
|
(340)
|
|
(388)
|
|
|
|
|
|
Share
of after tax profit/(loss) of associates
and joint ventures
|
(2)
|
|
(4)
|
|
|
|
|
|
Profit/(loss)
on disposal of associates and joint ventures
|
–
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
before taxation
|
2,850
|
|
3,894
|
|
(27)
|
|
(21)
|
Commercial
Operations Core operating profit of £7,817 million grew in H1
2024 driven by continued leverage from strong sales and favourable
product and regional mix, and a reversal of the Zejula royalty dispute legal provision
in Q1 2024, partly offset by disciplined investment in growth
assets and lower royalty income.
The
R&D segment operating expenses of £2,721 million, grew in
H1 2024 driven by late-stage investment in Vaccines,
Respiratory/Immunology and Infectious Diseases, including
pneumococcal and mRNA programmes, and camlipixant for refractory
chronic cough (RCC). This was partly offset by decreases
related to the completion of late-stage clinical development
programmes including RSV and momelotinib, and reduced investment in
Zejula.
Legal
matters
The
Group is involved in significant legal and administrative
proceedings, principally product liability, intellectual property,
tax, anti-trust, consumer fraud and governmental investigations,
which are more fully described in the ‘Legal
Proceedings’ note in the Annual Report 2023. At 30 June 2024,
the Group’s aggregate provision for legal and other disputes
(not including tax matters described on page 10) was
£454 million (31 December 2023: £267
million).
The
Group may become involved in significant legal proceedings in
respect of which it is not possible to meaningfully assess whether
the outcome will result in a probable outflow, or to quantify or
reliably estimate the liability, if any, that could result from
ultimate resolution of the proceedings. In these cases, the Group
would provide appropriate disclosures about such cases, but no
provision would be made.
The
ultimate liability for legal claims may vary from the amounts
provided and is dependent upon the outcome of litigation
proceedings, investigations and possible settlement negotiations.
The Group’s position could change over time, and, therefore,
there can be no assurance that any losses that result from the
outcome of any legal proceedings will not exceed by a material
amount the amount of the provisions reported in the Group’s
financial accounts.
Significant
legal developments since the date of the Q1 2024
results:
Product Liability
Zantac
On 31
May 2024, the Delaware Superior Court issued its Daubert decision allowing Plaintiffs to
present expert evidence of general causation on all ten cancer
types to a jury. Defendants filed a request with the Superior Court
to certify an interlocutory appeal to the Delaware Supreme Court,
which the Superior Court denied on 1 July 2024. Defendants filed a
direct appeal to the Delaware Supreme Court on 28 June 2024. The
Supreme Court has discretion as to whether to accept the appeal.
The Superior Court’s decision relates only to the
admissibility of evidence and not to the determination of liability
or to the merits of the underlying claims.
In the
Illinois state proceedings, on 23 May 2024, the jury returned a
verdict in GSK’s favour in the first case to go to trial
(Valadez, a case alleging
colorectal cancer). Prior to this verdict, the court rejected the
Plaintiff’s ability to request punitive damages. The next
case that was scheduled for trial (Williams, a case alleging lung cancer)
was dismissed before trial on the basis that GSK was not the brand
manufacturer of over-the-counter Zantac at the time the Plaintiff
allegedly used it and should not be liable for any subsequent use
of over-the-counter Zantac.
Kasza (a case alleging
breast cancer) was dismissed with prejudice by the Plaintiff on 7
June 2024 following the first day of jury selection. GSK resolved
Gross (a case alleging
prostate cancer) on 28 June 2024 and Kimbrow (a case alleging prostate
cancer) on 29 July 2024. GSK did not admit any liability in
either settlement and both cases will be dismissed as to GSK.
The trial in Joiner (a case
alleging colorectal cancer) began on 16 July 2024 and Dixon (a case alleging prostate cancer)
is scheduled to begin trial on 5 September 2024. The Court
recently granted Plaintiffs’ motion to consolidate three
cases (Seilhymer,
Snider and Goode) for trial beginning on 18
November 2024. Additional cases have been set for trial in
2025.
In the
California Judicial Council Coordination Proceedings (JCCP),
Plaintiffs have filed an Amended Master Complaint alleging new
theories of liability. A Sargon hearing is scheduled in
Russell (a case alleging
bladder cancer) on 14 August 2024 and trial will begin on 30
September 2024. The seven other bellwether cases have been given
trial transfer dates of December 2024 with the expectation that
they will be set for trial in January 2025.
Trial
dates have also been set in other state courts as follows: Florida
(Wilson, a case alleging
prostate cancer, 23 September 2024, with a Daubert hearing scheduled for 2 August
2024); Texas (Heald, a case
alleging bladder cancer, 21 October 2024); Pennsylvania (February,
August, October 2025); and Nevada (28 September 2026).
The
trial date in the Mayor & City of Baltimore action, which was
scheduled for June 2025, has been moved by agreement of the parties
to begin in June 2026.
On 17
May 2024, GSK was served with a qui tam complaint filed by
Valisure. The action was originally filed in September 2019 and
alleges claims under the False Claims Act. The action remained
under seal until 11 March 2024 when the Department of Justice (DOJ)
formally declined to intervene and pursue the case. DOJ’s
declination did not terminate the action and Valisure is still
pursuing those claims.
The
scientific consensus remains that there is no consistent or
reliable evidence that Zantac increases the risk of any
cancer. GSK will continue to vigorously defend itself against all
claims and manage this litigation in the best interests of the
company and shareholders.
Given
the current stage of the proceedings, GSK cannot meaningfully
assess what liability, if any, it may have, nor can it meaningfully
assess the liability of other parties under relevant
indemnification provisions.
Commercial and corporate
Zejula Royalty
Dispute
On 9
February 2024, the UK Court of Appeal ruled in the Group’s
favour, overturning the trial court’s judgement and
determining that only Zejula sales for uses falling within
the licensed patents could be deemed royalty-bearing. AstraZeneca
requested permission to appeal and on 28 May 2024, the UK Supreme
Court rejected AstraZeneca’s request. The appropriate quantum
of royalties following the Court of Appeal’s judgement may be
the subject of further proceedings.
Returns to
shareholders
Quarterly dividends
The
Board has declared a second interim dividend for Q2 2024 of 15p per
share (Q2 2023: 14p per share).
Dividends
remain an essential component of total shareholder return and GSK
recognises the importance of dividends to shareholders. On 23 June
2021, at the GSK Investor Update, GSK set out that from 2022 a
progressive dividend policy will be implemented guided by a 40 to
60 percent pay-out ratio through the investment cycle. Consistent
with this, GSK has declared a dividend of 15p for Q2 2024 and
expects to declare a dividend of 60p per share for full year 2024.
In setting its dividend policy, GSK considers the capital
allocation priorities of the Group and its investment strategy for
growth alongside the sustainability of the dividend.
Payment of dividends
The
equivalent interim dividend receivable by ADR holders will be
calculated based on the exchange rate on 8 October 2024. An annual
fee of $0.03 per ADS (or $0.0075 per ADS per quarter) is charged by
the Depositary. The ex-dividend and record dates will be 16 August
2024 with a payment date of 10 October 2024.
|
|
|
|
|
|
|
|
|
Paid/
Payable
|
|
Pence
per
share
|
|
£m
|
|
|
|
|
|
|
|
|
2024
|
|
|
|
|
|
|
First
interim
|
11 July
2024
|
|
15
|
|
612
|
|
Second
interim
|
10
October 2024
|
|
15
|
|
612
|
|
|
|
|
|
|
|
|
2023
|
|
|
|
|
|
|
First
interim
|
13 July
2023
|
|
14
|
|
567
|
|
Second
interim
|
12
October 2023
|
|
14
|
|
568
|
|
Third
interim
|
11
January 2024
|
|
14
|
|
568
|
|
Fourth
interim
|
11
April 2024
|
|
16
|
|
652
|
|
|
|
|
|
|
|
|
|
|
|
58
|
|
2,355
|
Share capital in issue
At 30
June 2024, 4,079 million shares (Q2 2023: 4,053 million) were in
free issue (excluding Treasury shares and shares held by the ESOP
Trusts). No Treasury shares have been repurchased since 2014. The
company issued 0.2 million shares under employee share schemes in
the quarter for proceeds of £1 million (Q2 2023:
£1 million).
At 30
June 2024, the ESOP Trusts held 66.1 million shares of GSK shares,
of which 65.8 million were held for the future exercise of share
options and share awards and 0.3 million were held for the
Executive Supplemental Savings plan. The carrying value of
£546 million has been deducted from other reserves.
The market value of these shares was £1,011
million.
At 30
June 2024, the company held 169 million Treasury shares at a cost
of £2,958 million which has been deducted
from retained earnings.
Weighted average number of shares
The
numbers of shares used in calculating basic and diluted earnings
per share are reconciled below:
|
|
|
|
|
|
|
|
Weighted average number of shares
|
|
|
|
|
Q2 2024
millions
|
|
Q2
2023
millions
|
|
|
|
|
|
|
|
|
Weighted
average number of shares – basic
|
|
|
4,079
|
|
4,053
|
|
Dilutive
effect of share options and share awards
|
|
|
43
|
|
40
|
|
|
|
|
|
|
|
|
Weighted
average number of shares – diluted
|
|
|
4,122
|
|
4,093
|
|
|
|
|
|
|
|
|
Weighted average number of shares
|
|
|
|
|
H1 2024
millions
|
|
H1
2023
millions
|
|
|
|
|
|
|
|
|
Weighted
average number of shares – basic
|
|
|
4,074
|
|
4,048
|
|
Dilutive
effect of share options and share awards
|
|
|
43
|
|
41
|
|
|
|
|
|
|
|
|
Weighted
average number of shares – diluted
|
|
|
4,117
|
|
4,089
|
Additional information
Accounting policies and basis of preparation
This
unaudited Results Announcement contains condensed financial
information for the three and six months ended 30 June 2024 and
should be read in conjunction with the Annual Report 2023, which
was prepared in accordance with United Kingdom adopted
International Financial Reporting Standards. This Results
Announcement has been prepared applying consistent accounting
policies to those applied by the Group in the Annual Report
2023.
The
Group has not identified any changes to its key sources of
accounting judgements or estimations of uncertainty compared with
those disclosed in the Annual Report 2023.
This
Results Announcement does not constitute statutory accounts of the
Group within the meaning of sections 434(3) and 435(3) of the
Companies Act 2006. The full Group accounts for 2023 were published
in the Annual Report 2023, which has been delivered to the
Registrar of Companies and on which the report of the independent
auditor was unqualified and did not contain a statement under
section 498 of the Companies Act 2006.
Exchange rates
GSK
operates in many countries and earns revenues and incurs costs in
many currencies. The results of the Group, as reported in Sterling,
are affected by movements in exchange rates between Sterling and
other currencies. Average exchange rates, as modified by specific
transaction rates for large transactions, prevailing during the
period, are used to translate the results and cash flows of
overseas subsidiaries, associates and joint ventures into Sterling.
Period-end rates are used to translate the net assets of those
entities. The currencies which most influenced these translations
and the relevant exchange rates were:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 2024
|
|
Q2
2023
|
|
H1 2024
|
|
H1
2023
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
rates:
|
|
|
|
|
|
|
|
|
|
|
|
|
US$/£
|
1.26
|
|
1.25
|
|
1.27
|
|
1.23
|
|
1.24
|
|
|
|
Euro/£
|
1.17
|
|
1.15
|
|
1.17
|
|
1.14
|
|
1.15
|
|
|
|
Yen/£
|
198
|
|
173
|
|
193
|
|
168
|
|
175
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end
rates:
|
|
|
|
|
|
|
|
|
|
|
|
|
US$/£
|
1.27
|
|
1.26
|
|
1.27
|
|
1.26
|
|
1.27
|
|
|
|
Euro/£
|
1.18
|
|
1.17
|
|
1.18
|
|
1.17
|
|
1.15
|
|
|
|
Yen/£
|
203
|
|
183
|
|
203
|
|
183
|
|
180
|
Contingent liabilities
There
were contingent liabilities at 30 June 2024 in respect of
arrangements entered into as part of the ordinary course of the
Group’s business. No material losses are expected to arise
from such contingent liabilities. Provision is made for the outcome
of legal and tax disputes where it is both probable that the Group
will suffer an outflow of funds and it is possible to make a
reliable estimate of that outflow. Descriptions of the significant
legal disputes to which the Group is a party are set out on page 38
and pages 263 to 266 of the 2023 Annual Report.
Net assets
The
book value of net assets increased by £975 million from
£12,795 million at 31 December 2023 to £13,770 million at
30 June 2024. This primarily reflected contribution from Total
comprehensive income for the period partly offset by dividends paid
to shareholders.
At 30
June 2024, the net deficit on the Group’s pension plans was
£597 million compared with £764 million at 31 December
2023. This decrease in the net deficit is primarily due to
increases in the UK and US discount rates, partially offset by
lower UK asset values and an increase to the US cash balance credit
rate.
The
estimated present value of the potential redemption amount of the
Pfizer put option related to ViiV Healthcare, recorded in Other
payables in Current liabilities, was £918 million (31
December 2023: £848 million).
Contingent
consideration amounted to £7,138 million at 30 June 2024 (31
December 2023: £6,662 million), of which £5,927 million
(31 December 2023: £5,718 million) represented the estimated
present value of amounts payable to Shionogi relating to ViiV
Healthcare, £566 million (31 December 2023: £424
million) represented the estimated present value of contingent
consideration payable to Novartis related to the Vaccines
acquisition, £536 million (31 December 2023: £516
million) represented the estimated present value of contingent
consideration payable to Affinivax, and £98 million (31
December 2023: £nil) represented the estimated present value
of contingent consideration payable in relation to the Aiolos
acquisition. Of the contingent consideration payable to Shionogi at
30 June 2024, £1,048 million (31 December 2023:
£1,017 million) is expected to be paid within one
year.
Movements
in contingent consideration are as follows:
|
|
|
|
|
|
H1 2024
|
ViiV
Healthcare
£m
|
|
Group
£m
|
|
|
|
|
|
|
Contingent
consideration at beginning of the period
|
5,718
|
|
6,662
|
|
Additions
|
–
|
|
104
|
|
Remeasurement
through income statement and other movements
|
814
|
|
998
|
|
Cash
payments: operating cash flows
|
(605)
|
|
(619)
|
|
Cash
payments: investing activities
|
–
|
|
(7)
|
|
|
|
|
|
|
Contingent
consideration at end of the period
|
5,927
|
|
7,138
|
|
|
|
|
|
|
H1
2023
|
ViiV
Healthcare
£m
|
|
Group
£m
|
|
|
|
|
|
|
Contingent
consideration at beginning of the period
|
5,890
|
|
7,068
|
|
Remeasurement
through income statement and other movements
|
(73)
|
|
(262)
|
|
Cash
payments: operating cash flows
|
(565)
|
|
(575)
|
|
Cash
payments: investing activities
|
–
|
|
(4)
|
|
|
|
|
|
|
Contingent
consideration at end of the period
|
5,252
|
|
6,227
|
Business acquisitions
On 9
January 2024, GSK announced it had entered into an agreement to
acquire 100% of Aiolos Bio, Inc. (Aiolos), a clinical stage
biopharmaceutical company focused on addressing the unmet treatment
needs of patients with certain respiratory and inflammatory
conditions, for a total consideration of US$1,004 million
(£800 million) as adjusted for working capital acquired
paid upon closing and up to US$400 million
(£319 million) in certain success-based regulatory
milestone payments. The estimated fair value of the contingent
consideration payable was US$120 million
(£96 million). In addition, GSK will also be responsible
for success-based milestone payments as well as tiered royalties
owed to Jiangsu Hengrui Pharmaceuticals Co., Ltd. (Hengrui). The
acquisition completed on 14 February 2024. The values in the table
below are provisional and subject to change.
Goodwill
of £191 million has been recognised. The goodwill represents
specific synergies available to GSK from the business combination.
The goodwill has been allocated to the Group’s R&D
segment.
The
provisional fair values of the net assets acquired, including
goodwill, are as follows:
|
|
|
|
|
|
|
|
|
£m
|
|
|
|
|
|
|
Net
assets acquired:
|
|
|
|
|
Intangible
assets
|
|
|
886
|
|
Cash
and cash equivalents
|
|
|
23
|
|
Other
net liabilities
|
|
|
(16)
|
|
Deferred
tax liabilities
|
|
|
(188)
|
|
|
|
|
|
|
|
|
|
705
|
|
Goodwill
|
|
|
191
|
|
|
|
|
|
|
Total
consideration
|
|
|
896
|
Of the
£896 million consideration, £121 million was unpaid as at
30 June 2024 of which £96 million relates to the contingent
consideration.
On 6
June 2024, GSK announced that it had acquired Elsie
Biotechnologies, a San Diego-based private biotechnology company
dedicated to unlocking the full potential of oligonucleotide
therapeutics, for a total cash consideration of up to
US$51 million (approximately £40 million). The
acquisition is accounted for as a business combination but is not
considered a significant acquisition for the Group. This agreement
is not subject to closing conditions and the acquisition has been
completed.
|
|
|
Net debt
information
|
|
|
|
Reconciliation of cash flow to movements in net debt
|
|
|
|
|
|
|
|
H1 2024
£m
|
|
H1
2023
£m
|
|
|
|
|
|
|
Total
Net debt at beginning of the period
|
(15,040)
|
|
(17,197)
|
|
|
|
|
|
|
Increase/(decrease)
in cash and bank overdrafts
|
48
|
|
(299)
|
|
Increase/(decrease)
in liquid investments
|
(22)
|
|
–
|
|
Net
(increase)/repayment of short-term loans
|
862
|
|
(1,594)
|
|
Repayment
of long-term notes
|
–
|
|
150
|
|
Repayment
of lease liabilities
|
114
|
|
94
|
|
Net
debt of subsidiary undertakings acquired
|
–
|
|
49
|
|
Exchange
adjustments
|
97
|
|
660
|
|
Other
non-cash movements
|
(19)
|
|
(83)
|
|
|
|
|
|
|
(Increase)/decrease
in net debt
|
1,080
|
|
(1,023)
|
|
Total
Net debt at end of the period
|
(13,960)
|
|
(18,220)
|
|
|
|
|
|
|
|
30 June 2024
£m
|
|
31
December 2023
£m
|
|
|
|
|
|
|
Liquid
investments
|
21
|
|
42
|
|
Cash
and cash equivalents
|
2,962
|
|
2,936
|
|
Short-term
borrowings
|
(3,366)
|
|
(2,813)
|
|
Long-term
borrowings
|
(13,577)
|
|
(15,205)
|
|
|
|
|
|
|
Total
Net debt at the end of the period
|
(13,960)
|
|
(15,040)
|
|
Free cash flow reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
Q2 2024
£m
|
|
Q2
2023
£m
|
|
H1 2024
£m
|
|
H1
2023
£m
|
|
|
|
|
|
|
|
|
|
|
Net
cash inflow/(outflow) from operating activities
|
1,113
|
|
1,307
|
|
2,071
|
|
1,360
|
|
Purchase
of property, plant and equipment
|
(302)
|
|
(296)
|
|
(550)
|
|
(529)
|
|
Proceeds
from sale of property, plant and equipment
|
2
|
|
3
|
|
3
|
|
10
|
|
Purchase
of intangible assets
|
(140)
|
|
(239)
|
|
(455)
|
|
(535)
|
|
Proceeds
from disposals of intangible assets
|
1
|
|
8
|
|
28
|
|
12
|
|
Net
finance costs
|
(247)
|
|
(295)
|
|
(281)
|
|
(386)
|
|
Dividends
from associates and joint ventures
|
15
|
|
–
|
|
15
|
|
1
|
|
Contingent
consideration paid (reported in investing activities)
|
(4)
|
|
(3)
|
|
(7)
|
|
(4)
|
|
Distributions
to non-controlling interests
|
(111)
|
|
(137)
|
|
(208)
|
|
(277)
|
|
Contributions
from non-controlling interests
|
1
|
|
–
|
|
1
|
|
7
|
|
|
|
|
|
|
|
|
|
|
Free
cash inflow/(outflow)
|
328
|
|
348
|
|
617
|
|
(341)
|
Post balance sheet event
GSK and
CureVac N.V. announced on 3 July 2024 that they have restructured
their existing collaboration into a new licensing agreement,
allowing each company to prioritise investment and focus their
respective mRNA development activities. GSK acquired the full
rights to develop, manufacture and commercialise globally mRNA
candidate vaccines for influenza and COVID-19, including
combinations. CureVac will receive €400 million upfront and
potentially up to an additional €1.05 billion in development,
regulatory and sales milestone payments as well as tiered
royalties; all previous financial considerations from the prior
collaboration agreement are replaced.
Following
completion of customary closing conditions, as well as certain
antitrust and regulatory approvals, the deal was closed on 11 July
2024.
Related party transactions
Details
of GSK’s related party transactions are disclosed on page 235
of our 2023 Annual Report.
Financial instruments fair value disclosures
The
following tables categorise the Group’s financial assets and
liabilities held at fair value by the valuation methodology applied
in determining their fair value. Where possible, quoted prices in
active markets are used and the asset or liability is classified as
Level 1. Where such prices are not available, the asset or
liability is classified as Level 2, provided all significant inputs
to the valuation model used are based on observable market data. If
one or more of the significant inputs to the valuation model is not
based on observable market data, the instrument is classified as
Level 3. Other investments classified as Level 3 in the tables
below comprise equity investments in unlisted entities with which
the Group has entered into research collaborations and also
investments in emerging life science companies.
|
|
|
|
|
|
|
|
|
|
At 30 June 2024
|
Level 1
£m
|
|
Level 2
£m
|
|
Level 3
£m
|
|
Total
£m
|
|
Financial assets at fair value
|
|
|
|
|
|
|
|
|
Financial
assets at fair value through other comprehensive
income (FVTOCI):
|
|
|
|
|
|
|
|
|
Other investments designated at FVTOCI
|
667
|
|
–
|
|
194
|
|
861
|
|
Trade and other receivables
|
–
|
|
2,258
|
|
–
|
|
2,258
|
|
Financial
assets mandatorily at fair value through
profit or loss (FVTPL):
|
|
|
|
|
|
|
|
|
Current equity investments and Other investments
|
–
|
|
–
|
|
238
|
|
238
|
|
Other non-current assets
|
–
|
|
–
|
|
16
|
|
16
|
|
Trade and other receivables
|
–
|
|
31
|
|
2
|
|
33
|
|
Held for trading derivatives that are not in a
designated and effective hedging relationship
|
–
|
|
26
|
|
–
|
|
26
|
|
Cash and cash equivalents
|
1,338
|
|
–
|
|
–
|
|
1,338
|
|
Derivatives
designated and effective as hedging
instruments (FVTOCI)
|
–
|
|
58
|
|
–
|
|
58
|
|
|
2,005
|
|
2,373
|
|
450
|
|
4,828
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities at fair value
|
|
|
|
|
|
|
|
|
Financial
liabilities mandatorily at fair value through profit
or
loss (FVTPL):
|
|
|
|
|
|
|
|
|
Contingent
consideration liabilities
|
–
|
|
–
|
|
(7,138)
|
|
(7,138)
|
|
Held for trading derivatives that are not in a
designated and effective hedging relationship
|
–
|
|
(73)
|
|
–
|
|
(73)
|
|
Derivatives
designated and effective as hedging
instruments (FVTOCI)
|
–
|
|
(30)
|
|
–
|
|
(30)
|
|
|
–
|
|
(103)
|
|
(7,138)
|
|
(7,241)
|
|
|
|
|
|
|
|
|
|
|
At 31
December 2023
|
Level 1
£m
|
|
Level 2
£m
|
|
Level 3
£m
|
|
Total
£m
|
|
Financial
assets at fair value
|
|
|
|
|
|
|
|
|
Financial
assets at fair value through other comprehensive
income (FVTOCI):
|
|
|
|
|
|
|
|
|
Other investments designated at FVTOCI
|
741
|
|
–
|
|
190
|
|
931
|
|
Trade and other receivables
|
–
|
|
2,541
|
|
–
|
|
2,541
|
|
Financial
assets mandatorily at fair value through profit or
loss
(FVTPL):
|
|
|
|
|
|
|
|
|
Current equity investments and Other investments
|
2,204
|
|
–
|
|
206
|
|
2,410
|
|
Other non-current assets
|
–
|
|
–
|
|
18
|
|
18
|
|
Trade and other receivables
|
–
|
|
23
|
|
–
|
|
23
|
|
Held for trading derivatives that are not in a
designated and effective hedging relationship
|
–
|
|
98
|
|
–
|
|
98
|
|
Cash and cash equivalents
|
994
|
|
–
|
|
–
|
|
994
|
|
Derivatives
designated and effective as hedging
instruments (FVTOCI)
|
–
|
|
32
|
|
–
|
|
32
|
|
|
3,939
|
|
2,694
|
|
414
|
|
7,047
|
|
|
|
|
|
|
|
|
|
|
Financial
liabilities at fair value
|
|
|
|
|
|
|
|
|
Financial
liabilities mandatorily at fair value through profit
or
loss (FVTPL):
|
|
|
|
|
|
|
|
|
Contingent
consideration liabilities
|
–
|
|
–
|
|
(6,662)
|
|
(6,662)
|
|
Held
for trading derivatives that are not in a
designated and effective hedging relationship
|
–
|
|
(78)
|
|
–
|
|
(78)
|
|
Derivatives
designated and effective as hedging
instruments (FVTOCI)
|
–
|
|
(36)
|
|
–
|
|
(36)
|
|
|
–
|
|
(114)
|
|
(6,662)
|
|
(6,776)
|
Movements
in the six months to 30 June 2024 and the six months to 30 June
2023 for financial instruments measured using Level 3 valuation
methods are presented below:
|
|
|
|
|
|
|
Financial
assets
£m
|
|
Financial
liabilities
£m
|
|
At 1
January 2024
|
414
|
|
(6,662)
|
|
Gains/(losses)
recognised in the income statement
|
22
|
|
(995)
|
|
Gains/(losses)
recognised in other comprehensive income
|
(18)
|
|
–
|
|
Additions
|
50
|
|
(104)
|
|
Disposals
and settlements
|
(18)
|
|
–
|
|
Payments
in the period
|
–
|
|
626
|
|
Exchange
adjustments
|
–
|
|
(3)
|
|
At 30 June 2024
|
450
|
|
(7,138)
|
|
|
|
|
|
|
At 1
January 2023
|
657
|
|
(7,068)
|
|
Gains/(losses)
recognised in the income statement
|
(88)
|
|
262
|
|
Gains/(losses)
recognised in other comprehensive income
|
(149)
|
|
–
|
|
Additions
|
30
|
|
–
|
|
Disposals
and settlements
|
(17)
|
|
–
|
|
Transfer
from Level 3
|
(8)
|
|
–
|
|
Payments
in the period
|
–
|
|
579
|
|
Exchange
adjustments
|
(24)
|
|
–
|
|
At 30
June 2023
|
401
|
|
(6,227)
|
Net
losses of £973 million (H1 2023: £174 million net gains)
reported in other operating income were attributable to Level 3
financial instruments held at the end of the period. Net gains and
losses include the impact of exchange movements.
Financial
liabilities measured using Level 3 valuation methods at 30 June
2024 primarily included £5,927 million (31 December 2023:
£5,718 million) of contingent consideration for the
acquisition in 2012 of the former Shionogi-ViiV Healthcare joint
venture, £566 million (31 December 2023: £424 million) of
contingent consideration for the acquisition of the Novartis
Vaccines business in 2015 and £536 million (31 December 2023:
£516 million) of contingent consideration payable for the
acquisition of Affinivax in 2022. Contingent consideration is
expected to be paid over a number of years and will vary in line
with the future performance of specified products, the achievement
of certain milestone targets and movements in certain foreign
currencies.
The
financial liabilities are measured at the present value of expected
future cash flows, the most significant inputs and assumptions in
the valuation models being future sales forecasts, probability of
milestone success, the discount rate, the Sterling/US Dollar
exchange rate and the Sterling/Euro exchange rate. The exchange
rates used are consistent with market rates at 30 June
2024.
The
Shionogi-ViiV Healthcare contingent consideration liability is
discounted at 8% (31 December 2023: 8%), the Affinivax contingent
consideration liability is discounted at 9% (31 December 2023:
8.5%) and the Novartis Vaccines contingent consideration liability
is discounted at 8% (31 December 2023: 7.5%) for commercialised
products and at 9% (31 December 2023: 8.5%) for pipeline
assets.
The
Shionogi-ViiV Healthcare and Novartis Vaccines contingent
consideration liabilities are calculated principally based on the
forecast sales performance of specified products over the lives of
those products.
The
Affinivax contingent consideration is based upon two potential
milestone payments, each of $0.6 billion (£0.5 billion) which
will be paid if certain paediatric clinical development milestones
are achieved
The
table below shows, on an indicative basis, the income statement and
balance sheet sensitivity to reasonably possible changes in key
inputs to the valuation of the largest contingent consideration
liabilities.
|
Increase/(decrease) in liability
|
Shionogi-
ViiV
Healthcare
contingent
consideration
£m
|
|
Novartis
Vaccines
contingent
consideration
£m
|
|
Affinivax
contingent
consideration
£m
|
|
10%
increase in sales forecasts*
|
588
|
|
83
|
|
N/A
|
|
15%
increase in sales forecasts*
|
881
|
|
125
|
|
N/A
|
|
10%
decrease in sales forecasts*
|
(586)
|
|
(83)
|
|
N/A
|
|
15%
decrease in sales forecasts*
|
(879)
|
|
(124)
|
|
N/A
|
|
10%
increase in probability of milestone success
|
N/A
|
|
20
|
|
78
|
|
10%
decrease in probability of milestone success
|
N/A
|
|
(10)
|
|
(78)
|
|
1%
increase in discount rate
|
(190)
|
|
(40)
|
|
(10)
|
|
1.5%
increase in discount rate
|
(282)
|
|
(58)
|
|
(15)
|
|
1%
decrease in discount rate
|
207
|
|
47
|
|
11
|
|
1.5%
decrease in discount rate
|
315
|
|
73
|
|
16
|
|
10 cent
appreciation of US Dollar
|
414
|
|
14
|
|
46
|
|
15 cent
appreciation of US Dollar
|
648
|
|
22
|
|
72
|
|
10 cent
depreciation of US Dollar
|
(352)
|
|
(12)
|
|
(39)
|
|
15 cent
depreciation of US Dollar
|
(510)
|
|
(17)
|
|
(57)
|
|
10 cent
appreciation of Euro
|
85
|
|
22
|
|
N/A
|
|
15 cent
appreciation of Euro
|
131
|
|
35
|
|
N/A
|
|
10 cent
depreciation of Euro
|
(70)
|
|
(19)
|
|
N/A
|
|
15 cent
depreciation of Euro
|
(102)
|
|
(27)
|
|
N/A
|
|
*
|
The sales forecasts for the
Shionogi-ViiV Healthcare contingent consideration are for ViiV
Healthcare sales only.
|
The
Group transfers financial instruments between different levels in
the fair value hierarchy when, as a result of an event or change in
circumstances, the valuation methodology applied in determining
their fair values alters in such a way that it meets the definition
of a different level. There were no transfers between the Level 1
and Level 2 fair value measurement categories.
The
following methods and assumptions are used to measure the fair
value of the significant financial instruments carried at fair
value on the balance sheet:
|
|
|
|
●
|
Current
equity investments and Other investments – equity investments
traded in an active market determined by reference to the relevant
stock exchange quoted bid price; other equity investments
determined by reference to the current market value of similar
instruments, recent financing rounds or the discounted cash flows
of the underlying net assets
|
|
●
|
Trade
receivables carried at fair value – based on invoiced amount,
which is not materially different to the present value of future
cash flows
|
|
●
|
Interest
rate swaps, foreign exchange forward contracts, swaps and options
– based on the present value of contractual cash flows or
option valuation models using market-sourced data (exchange rates
or interest rates) at the balance sheet date
|
|
●
|
Cash
and cash equivalents carried at fair value – based on net
asset value of the funds
|
|
●
|
Contingent
consideration for business acquisitions and divestments –
based on present values of expected future cash flows
|
There
are no material differences between the carrying value of the
Group's other financial assets and liabilities and their estimated
fair values, with the exception of bonds, for which the carrying
values and fair values are set out in the table below:
|
|
|
|
|
|
|
|
|
|
|
30 June 2024
|
|
31
December 2023
|
|
|
Carrying
value
£m
|
|
Fair
value
£m
|
|
Carrying
value
£m
|
|
Fair
value
£m
|
|
Bonds
in a designated hedging relationship
|
(5,191)
|
|
(5,011)
|
|
(5,348)
|
|
(5,233)
|
|
Other
bonds
|
(9,716)
|
|
(9,585)
|
|
(10,456)
|
|
(10,762)
|
|
|
(14,907)
|
|
(14,596)
|
|
(15,804)
|
|
(15,995)
|
The
following methods and assumptions are used to estimate the fair
values of financial assets and liabilities which are not measured
at fair value on the balance sheet:
|
|
|
|
●
|
Receivables
and payables, including put options over non-controlling interests
carried at amortised cost - approximates to the carrying
amount
|
|
●
|
Liquid
investments - approximates to the carrying amount
|
|
●
|
Cash
and cash equivalents carried at amortised cost - approximates to
the carrying amount
|
|
●
|
Short-term
loans, overdrafts and commercial paper - approximates to the
carrying amount because of the short maturity of these
instruments
|
|
●
|
Long-term
loans (European and US Medium Term Notes) - based on quoted market
prices (a Level 1 fair value measurement); approximates to the
carrying amount in the case of floating rate bank
loans
|
Other
payables in Current liabilities includes the present value of the
expected redemption amount of the Pfizer put option over its
non-controlling interest in ViiV Healthcare of £918 million
(31 December 2023: £848 million). This reflects a number of
assumptions around future sales, profit forecasts and the
Sterling/US Dollar exchange rate and the Sterling/Euro exchange
rate. The exchange rates used are consistent with market rates at
30 June 2024.
The
table below shows on an indicative basis the income statement and
balance sheet sensitivity to reasonably possible changes in the key
inputs to the measurement of this liability.
|
|
|
|
Increase/(decrease) in liability
|
ViiV
Healthcare
put
option
£m
|
|
10%
increase in sales forecasts*
|
92
|
|
15%
increase in sales forecasts*
|
138
|
|
10%
decrease in sales forecasts*
|
(92)
|
|
15%
decrease in sales forecasts*
|
(138)
|
|
1%
increase in discount rate
|
(23)
|
|
1.5%
increase in discount rate
|
(33)
|
|
1%
decrease in discount rate
|
24
|
|
1.5%
decrease in discount rate
|
36
|
|
10 cent
appreciation of US Dollar
|
65
|
|
15 cent
appreciation of US Dollar
|
103
|
|
10 cent
depreciation of US Dollar
|
(56)
|
|
15 cent
depreciation of US Dollar
|
(81)
|
|
10 cent
appreciation of Euro
|
24
|
|
15 cent
appreciation of Euro
|
37
|
|
10 cent
depreciation of Euro
|
(20)
|
|
15 cent
depreciation of Euro
|
(29)
|
|
*
|
The sales forecasts
for the ViiV Healthcare put option are for the ViiV Healthcare
sales only.
|
|
|
|
|
|
|
Medicines
and vaccines in phase III development (including major lifecycle
innovation or under regulatory review)
|
18
|
Infectious Diseases (7)
|
|
●
|
Arexvy (RSV vaccine) RSV older adults (50-59 years of age at
increased risk (AIR))
|
|
●
|
gepotidacin
(bacterial topoisomerase inhibitor) uncomplicated urinary tract
infection and urogenital gonorrhoea
|
|
●
|
bepirovirsen
(HBV ASO) hepatitis B virus
|
|
●
|
Bexsero infants vaccine (US)
|
|
●
|
MenABCWY
(gen 1) vaccine candidate
|
|
●
|
tebipenem
pivoxil (antibacterial carbapenem) complicated urinary tract
infection
|
|
●
|
ibrexafungerp
(antifungal glucan synthase inhibitor) invasive
candidiasis
|
|
|
|
Respiratory/Immunology (6)
|
|
|
|
●
|
Nucala (anti-IL5 biologic) chronic obstructive pulmonary
disease
|
|
|
|
●
|
depemokimab
(ultra long-acting anti-IL5 biologic) severe eosinophilic asthma,
eosinophilic granulomatosis with polyangiitis (EGPA), chronic
rhinosinusitis with nasal polyps (CRSwNP), hyper-eosinophilic
syndrome (HES)
|
|
|
|
●
|
latozinemab
(AL001, anti-sortilin) frontotemporal dementia
|
|
|
|
●
|
camlipixant
(P2X3 receptor antagonist) refractory chronic cough
|
|
|
|
●
|
Ventolin (salbutamol, Beta 2 adrenergic receptor agonist)
asthma
|
|
|
|
●
|
linerixibat
(IBATi) cholestatic pruritus in primary biliary
cholangitis
|
|
|
|
Oncology (5)
|
|
|
|
●
|
Blenrep (anti-BCMA ADC) multiple myeloma
|
|
|
|
●
|
Jemperli (anti-PD-1) 1L endometrial cancer, colon cancer,
rectal cancer, head and neck cancer
|
|
|
|
●
|
Zejula (PARP inhibitor) 1L ovarian and non-small cell lung
cancer, glioblastoma
|
|
|
|
●
|
belrestotug
(anti-TIGIT) 1L non-small cell lung cancer
|
|
|
|
●
|
cobolimab
(anti-TIM-3) 2L non-small cell lung cancer
|
|
Total
vaccines and medicines in all phases of clinical
development
|
70
|
|
|
|
Total
projects in clinical development (inclusive of all phases and
indications)
|
91
|
|
|
Our key growth assets by therapy area
The
following outlines several key vaccines and medicines by therapy
area that will help drive growth for GSK to meet its outlooks for
2021-2026 and beyond.
Infectious Diseases
Arexvy (respiratory
syncytial virus vaccine, adjuvanted)
In June
2024, the US FDA approved Arexvy for the prevention of RSV in
adults 50 to 59 years of age who are at increased risk. However,
the US Advisory Committee on Immunization Practices postponed its
vote for use in this population, requesting additional data. The
Committee also recommended the use of Arexvy in all adults aged 75 and over
and for adults aged 60-74 who are at increased risk from severe RSV
disease, which was a change to the prior recommendation in adults
aged 60 and older with shared clinical decision
making.
In July
2024, the European Medicines Agency’s Committee for Medicinal
Products for Human Use (CHMP) adopted a positive opinion
recommending extending the vaccine’s approval for the
prevention of RSV-LRTD from adults aged 60 and above to include
adults aged 50-59 years at increased risk for RSV disease. This is
one of the final steps prior to the extension of the marketing
authorisation by the European Commission.
Key
phase III trials for Arexvy:
|
|
|
|
|
|
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
|
RSV
OA=ADJ-004
(Adults
≥ 60 years old)
NCT04732871
|
III
|
A
randomised, open-label, multi-country trial to evaluate the
immunogenicity, safety, reactogenicity and persistence of a single
dose of the RSVPreF3 OA investigational vaccine and different
revaccination schedules in adults aged 60 years and
above
|
Trial
start:
Q1
2021
Primary
data reported:
Q2
2022
|
Active,
not recruiting; primary endpoint met
|
|
RSV
OA=ADJ-006
(ARESVI-006;
Adults ≥ 60 years old)
NCT04886596
|
III
|
A
randomised, placebo-controlled, observer-blind, multi-country trial
to demonstrate the efficacy of a single dose of GSK’s
RSVPreF3 OA investigational vaccine in adults aged 60 years and
above
|
Trial
start:
Q2
2021
Primary
data reported:
Q2
2022;
two
season data reported:
Q2
2023
|
Active,
not recruiting; primary endpoint met
|
|
RSV
OA=ADJ-007
(Adults
≥ 60 years old)
NCT04841577
|
III
|
An
open-label, randomised, controlled, multi-country trial to evaluate
the immune response, safety and reactogenicity of RSVPreF3 OA
investigational vaccine when co-administered with FLU-QIV vaccine
in adults aged 60 years and above
|
Trial
start:
Q2
2021
Primary
data reported:
Q4
2022
|
Complete;
primary endpoint met
|
|
RSV
OA=ADJ-008
(Adults
≥ 65 years old)
NCT05559476
|
III
|
A phase
III, open-label, randomised, controlled, multi country trial to
evaluate the immune response, safety and reactogenicity of RSVPreF3
OA investigational vaccine when co-administered with FLU HD vaccine
in adults aged 65 years and above
|
Trial
start:
Q4
2022
Primary
data reported:
Q2
2023
|
Complete
|
|
RSV
OA=ADJ-009
(Adults
≥ 60 years old)
NCT05059301
|
III
|
A
randomised, double-blind, multi-country trial to evaluate
consistency, safety, and reactogenicity of 3 lots of RSVPreF3 OA
investigational vaccine administrated as a single dose in adults
aged 60 years and above
|
Trial
start:
Q4
2021
Trial
end:
Q2
2022
|
Complete;
primary endpoint met
|
|
RSV
OA=ADJ-017
(Adults
≥ 65 years old)
NCT05568797
|
III
|
A phase
III, open-label, randomised, controlled, multi-country trial to
evaluate the immune response, safety and reactogenicity of an
RSVPreF3 OA investigational vaccine when co-administered with FLU
aQIV (inactivated influenza vaccine – adjuvanted) in adults
aged 65 years and above
|
Trial
start:
Q4
2022
Primary
data reported:
Q2
2023
|
Complete
|
|
RSV
OA=ADJ-018
(Adults
50-59 years)
NCT05590403
|
III
|
A phase
III, observer-blind, randomised, placebo-controlled trial to
evaluate the non-inferiority of the immune response and safety of
the RSVPreF3 OA investigational vaccine in adults 50-59 years of
age, including adults at increased risk of respiratory syncytial
virus lower respiratory tract disease, compared to older adults
≥60 years of age
|
Trial
start:
Q4
2022
Primary
data reported:
Q4
2023
|
Complete;
primary endpoint met
|
|
RSV
OA=ADJ-019
(Adults
≥ 60 years old)
NCT05879107
|
III
|
An
open-label, randomised, controlled, multi-country trial to evaluate
the immune response, safety and reactogenicity of RSVPreF3 OA
investigational vaccine when co-administered with PCV20 in adults
aged 60 years and older
|
Trial
start:
Q2
2023
Data
anticipated:
H2
2024
|
Complete
|
|
RSV
OA=ADJ-023
(Immunocompromised
Adults 50-59 years)
NCT05921903
|
IIb
|
A
randomised, controlled, open-label trial to evaluate the immune
response and safety of the RSVPreF3 OA investigational vaccine in
adults (≥50 years of age) when administered to lung and renal
transplant recipients comparing one versus two doses and compared
to healthy controls (≥50 years of age) receiving one
dose
|
Trial
start:
Q3
2023
Data
anticipated:
H2
2024
|
Active,
not recruiting
|
|
RSV-OA=ADJ-020
(Adults
aged >=50 years of age)
NCT05966090
|
III
|
A study
on the safety and immune response of investigational RSV OA vaccine
in combination with herpes zoster vaccine in healthy
adults
|
Trial
start:
Q3
2023
Data
anticipated:
H2
2024
|
Active,
not recruiting
|
|
RSV-OA=ADJ-013
(Adults
aged 50 years and above)
NCT06374394
|
III
|
An
open-label, randomized, controlled study to evaluate the immune
response, safety and reactogenicity of RSVPreF3 OA investigational
vaccine when co-administered with a COVID-19 mRNA
vaccine
|
Trial
start:
Q2
2024
Data
anticipated:
H2
2024
|
Recruiting
|
|
RSV
OA=ADJ-025
(Adults,
18-49 years of age, at increased risk for RSV disease and older
adults participants, >=60 YOA)
NCT06389487
|
IIIb
|
An
open-label study to evaluate the non-inferiority of the immune
response and to evaluate the safety of the RSVPreF3 OA
investigational vaccine in adults 18-49 years of age at increased
risk for Respiratory Syncytial Virus disease, compared to older
adults >=60 years of age
|
Trial
start:
Q2
2024
Data
anticipated:
H2
2024
|
Recruiting
|
bepirovirsen (HBV ASO)
Bepirovirsen,
a triple-action antisense oligonucleotide, is a potential new
treatment option for people with chronic hepatitis B (CHB) that has
been granted Fast Track designation by the US FDA for the treatment
of CHB. To further expand development in novel sequential regimens,
GSK has entered an agreement for an exclusive worldwide license to
develop and commercialise daplusiran/tomligisiran (GSK5637608,
formerly JNJ-3989), an investigational hepatitis B virus-targeted
small interfering ribonucleic acid (siRNA) therapeutic. This
agreement provides an opportunity to investigate a novel sequential
regimen to pursue functional cure in an even broader patient
population with bepirovirsen.
Key
trials for bepirovirsen:
|
|
|
|
|
|
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
|
B-Well
1 bepirovirsen in nucleos(t)ide treated patients (chronic hepatitis
B)
NCT05630807
|
III
|
A
multi-centre, randomised, double-blind, placebo-controlled trial to
confirm the efficacy and safety of treatment with bepirovirsen in
participants with chronic hepatitis B virus
|
Trial
Start:
Q1
2023
Data
anticipated: 2026+
|
Active,
not recruiting
|
|
B-Well
2 bepirovirsen in nucleos(t)ide treated patients (chronic hepatitis
B)
NCT05630820
|
III
|
A
multi-centre, randomised, double-blind, placebo-controlled trial to
confirm the efficacy and safety of treatment with bepirovirsen in
participants with chronic hepatitis B virus
|
Trial
Start:
Q1
2023
Data
anticipated: 2026+
|
Active,
not recruiting
|
|
bepirovirsen
sequential combination therapy with targeted
immunotherapy
(chronic
hepatitis B)
NCT05276297
|
II
|
A trial
on the safety, efficacy and immune response following sequential
treatment with an anti-sense oligonucleotide against chronic
hepatitis B (CHB) and chronic hepatitis B targeted immunotherapy
(CHB-TI) in CHB patients receiving nucleos(t)ide analogue (NA)
therapy
|
Trial
start:
Q2
2022
Data
anticipated: 2026+
|
Active,
not recruiting
|
gepotidacin (bacterial topoisomerase inhibitor)
Gepotidacin
is an investigational bactericidal, first-in-class antibiotic with
a novel mechanism of action for the treatment of uncomplicated
urinary tract infections (uUTI) and urogenital gonorrhoea. Positive
data from three pivotal trials demonstrate its potential to provide
a new oral treatment option for patients, including against drug
resistant infections. Regulatory submissions in uUTI are planned
for H2 2024, with filings for gonorrhoea expected to follow in
2025. If approved, gepotidacin could be the first in a new class of
oral antibiotics in uUTI in over 20 years.
Key
phase III trials for gepotidacin:
|
|
|
|
|
|
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
|
EAGLE-1
(uncomplicated urogenital gonorrhoea)
NCT04010539
|
III
|
A
randomised, multi-centre, open-label trial in adolescent and adult
participants comparing the efficacy and safety of gepotidacin to
ceftriaxone plus azithromycin in the treatment of uncomplicated
urogenital gonorrhoea caused by Neisseria gonorrhoeae
|
Trial
start:
Q4
2019
Data
reported:
Q1
2024
|
Complete;
primary
endpoint met
|
|
EAGLE-2
(females with uUTI / acute cystitis)
NCT04020341
|
III
|
A
randomised, multi-centre, parallel-group, double-blind,
double-dummy trial in adolescent and adult female participants
comparing the efficacy and safety of gepotidacin to nitrofurantoin
in the treatment of uncomplicated urinary tract infection (acute
cystitis)
|
Trial
start:
Q4
2019
Data
reported:
Q2
2023
|
Complete;
primary endpoint met
|
|
EAGLE-3
(females with uUTI / acute cystitis)
NCT04187144
|
III
|
A
randomised, multi-centre, parallel-group, double-blind,
double-dummy trial in adolescent and adult female participants
comparing the efficacy and safety of gepotidacin to nitrofurantoin
in the treatment of uncomplicated urinary tract infection (acute
cystitis)
|
Trial
start:
Q2
2020
Data
reported:
Q2
2023
|
Complete;
primary endpoint met
|
MenABCWY vaccine candidate
GSK’s
5-in-1 meningococcal ABCWY (MenABCWY) vaccine candidate combines
the antigenic components of its two well-established meningococcal
vaccines with demonstrated efficacy and safety profiles,
Bexsero (Meningococcal
Group B Vaccine) and Menveo
(Meningococcal Groups A, C, Y, and W-135). Combining the protection
offered by these vaccines aims to reduce the number of injections,
simplifying immunisation and potentially increasing series
completion and vaccination coverage of adolescents and young
adults. A Biologics License Application (BLA) is currently under
review by the US FDA with a Prescription Drug User Fee Act (PDUFA)
action date of 14 February 2025. In June 2024, safety and
immunogenicity data were presented at the CDC’s ACIP meeting
ahead of a potential vote in February 2025.
Key
trials for MenABCWY vaccine candidate:
|
|
|
|
|
|
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
|
MenABCWY
– 019
NCT04707391
|
IIIb
|
A
randomised, controlled, observer-blind trial to evaluate safety and
immunogenicity of GSK’s meningococcal ABCWY vaccine when
administered in healthy adolescents and adults, previously primed
with meningococcal ACWY vaccine
|
Trial
start:
Q1
2021
Data
reported:
Q1
2024
|
Complete,
primary endpoints met
|
|
MenABCWY
– V72 72
NCT04502693
|
III
|
A
randomised, controlled, observer-blind trial to demonstrate
effectiveness, immunogenicity, and safety of GSK's meningococcal
Group B and combined ABCWY vaccines when administered to healthy
adolescents and young adults
|
Trial
start:
Q3
2020
Data
reported:
Q1
2023
|
Complete;
primary endpoints met
|
HIV
cabotegravir
GSK
continues to advance its early-stage HIV pipeline focused on
innovative long-acting injectable regimens and expects cabotegravir
to increasingly replace dolutegravir as the foundational integrase
inhibitor in its portfolio.
In July
2024, positive data from the PASO DOBLE study, the largest
head-to-head randomised clinical trial of Dovato compared against
the three-drug-regimen Biktarvy, were presented at the AIDS
congress. The study met its primary endpoint with Dovato showing
non-inferior efficacy and significantly less weight gain than the
three-drug-regimen. First-time-in-human data for GSK’s
third-generation integrase inhibitor, VH184, were also shared.
These demonstrated strong efficacy and a unique resistance profile,
reinforcing integrase inhibitors as the gold standard in HIV and
supporting further development of VH184 as an option for
long-acting therapies. GSK has also committed to progress phase III
trials for ULA Q4M PrEP and selected rilpivirine as the partner for
CAB ULA in Q4M treatment. This regimen selection is based on
progress in formulation studies for rilpivirine and builds on
existing positive patient and physician experience with these
medicines. Four monthly dosing options are on track to be
delivered for prevention in 2026 and for treatment in 2027, in line
with the ambition to extend the dosing interval of long-acting
regimens to enable every-six monthly dosing towards the end of the
decade.
Respiratory/Immunology
camlipixant (P2X3 receptor antagonist)
Camlipixant
(BLU-5937) is an investigational, highly selective oral P2X3
antagonist currently in development for first-line treatment of
adult patients suffering from refractory chronic cough (RCC). The
CALM phase III development programme to evaluate the efficacy and
safety of camlipixant for use in adults with RCC is
ongoing.
|
|
|
|
|
|
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
|
CALM-1
(refractory chronic cough)
NCT05599191
|
III
|
A
52-week, randomised, double-blind, placebo-controlled, parallel-arm
efficacy and safety trial with open-label extension of camlipixant
in adult participants with refractory chronic cough, including
unexplained chronic cough
|
Trial
start:
Q4
2022
Data
anticipated:
2025
|
Recruiting
|
|
CALM-2
(refractory chronic cough)
NCT05600777
|
III
|
A
24-week, randomised, double-blind, placebo-controlled, parallel-arm
efficacy and safety trial with open-label extension of camlipixant
in adult participants with refractory chronic cough, including
unexplained chronic cough
|
Trial
start:
Q1
2023
Data
anticipated:
2025
|
Recruiting
|
depemokimab (long acting anti-IL5)
Depemokimab
is in late-stage development for severe asthma, chronic
rhinosinusitis with nasal polyps (CRSwNP), hypereosinophilic
syndrome (HES) and eosinophilic granulomatosis with polyangiitis
(EGPA). Depemokimab is the first ultra-long-acting biologic
engineered to have a binding affinity and high potency for IL-5,
resulting in an extended half-life and enabling six-month
dosing intervals for patients with severe asthma.
The
phase III programme for depemokimab continues to make progress
across a range of IL-5 mediated conditions. In May 2024, positive
data were reported from the pivotal SWIFT-1 and SWIFT-2 trials
evaluating the efficacy and safety of depemokimab in severe asthma
with type 2 inflammation. Both trials met their primary endpoints
with depemokimab showing statistically significant and clinically
meaningful reductions in exacerbations (asthma attacks) over 52
weeks vs. placebo. Full results will be presented at an upcoming
scientific congress. Further phase III data from ANCHOR-1 and
ANCHOR-2, assessing the safety and efficacy of depemokimab in
patients with CRSwNP are expected to read out in H2 2024. This data
will be used to support regulatory submissions to health
authorities worldwide.
Key
phase III trials for depemokimab:
|
|
|
|
|
|
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
|
SWIFT-1
(severe eosinophilic asthma)
NCT04719832
|
III
|
A
52-week, randomised, double-blind, placebo-controlled,
parallel-group, multi-centre trial of the efficacy and safety of
depemokimab adjunctive therapy in adult and adolescent participants
with severe uncontrolled asthma with an eosinophilic
phenotype
|
Trial
start:
Q1
2021
Data
reported:
Q2
2024
|
Completed,
primary endpoint met
|
|
SWIFT-2
(severe eosinophilic asthma)
NCT04718103
|
III
|
A
52-week, randomised, double-blind, placebo-controlled,
parallel-group, multi-centre trial of the efficacy and safety of
depemokimab adjunctive therapy in adult and adolescent participants
with severe uncontrolled asthma with an eosinophilic
phenotype
|
Trial
start:
Q1
2021
Data
reported:
Q2
2024
|
Completed,
primary endpoint met
|
|
AGILE
(SEA)
NCT05243680
|
III
(exten
sion)
|
A
52-week, open label extension phase of SWIFT-1 and SWIFT-2 to
assess the long-term safety and efficacy of depemokimab adjunctive
therapy in adult and adolescent participants with severe
uncontrolled asthma with an eosinophilic phenotype
|
Trial
start:
Q1
2022
Data
anticipated:
2025
|
Active,
not recruiting
|
|
NIMBLE
(SEA)
NCT04718389
|
III
|
A
52-week, randomised, double-blind, double-dummy, parallel group,
multi-centre, non-inferiority trial assessing exacerbation rate,
additional measures of asthma control and safety in adult and
adolescent severe asthmatic participants with an eosinophilic
phenotype treated with depemokimab compared with mepolizumab or
benralizumab
|
Trial
start:
Q1
2021
Data
anticipated:
2025
|
Recruiting
|
|
ANCHOR-1
(chronic rhinosinusitis with nasal polyps; CRSwNP)
NCT05274750
|
III
|
Efficacy
and safety of depemokimab in participants with CRSwNP
|
Trial
start:
Q2
2022
Data
anticipated:
H2
2024
|
Active,
not recruiting
|
|
ANCHOR-2
(CRSwNP)
NCT05281523
|
III
|
Efficacy
and safety of depemokimab in participants with CRSwNP
|
Trial
start:
Q2
2022
Data
anticipated:
H2
2024
|
Active,
not recruiting
|
|
OCEAN
(eosinophilic granulomatosis with polyangiitis; EGPA)
NCT05263934
|
III
|
Efficacy
and safety of depemokimab compared with mepolizumab in adults with
relapsing or refractory EGPA
|
Trial
start:
Q3
2022
Data
anticipated:
2025
|
Recruiting
|
|
DESTINY
(hyper-eosinophilic syndrome; HES)
NCT05334368
|
III
|
A
52-week, randomised, placebo-controlled, double-blind, parallel
group, multicentre trial of depemokimab in adults with uncontrolled
HES receiving standard of care (SoC) therapy
|
Trial
start:
Q3
2022
Data
anticipated:
2026+
|
Recruiting
|
Nucala (mepolizumab)
Nucala, is a first in class anti-IL-5 biologic and the only
treatment approved for use in the US and Europe across four IL-5
medicated conditions: severe asthma with an eosinophilic phenotype,
EGPA, HES and CRSwNP.
The
MATINEE phase III trial investigating Nucala in patients with chronic
obstructive pulmonary disease (COPD) is expected to readout in the
second half of 2024.
Key
phase trials for Nucala:
|
|
|
|
|
|
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
|
MATINEE
(chronic obstructive pulmonary disease; COPD)
NCT04133909
|
III
|
A
multicentre randomised, double-blind, parallel-group,
placebo-controlled trial of mepolizumab 100 mg subcutaneously as
add-on treatment in participants with COPD experiencing frequent
exacerbations and characterised by eosinophil levels
|
Trial
start:
Q4
2019
Data
anticipated:
H2
2024
|
Active,
not recruiting
|
Oncology
Blenrep (belantamab
mafodotin)
GSK
continues to explore the potential for Blenrep to help address
unmet need for patients with multiple myeloma, in early treatment
lines and in combination with novel therapies and standard of care
treatments.
In June
2024, positive results from the DREAMM-8 phase III head-to-head
trial were presented at the 2024 American Society of Clinical
Oncology (ASCO) Annual Meeting and simultaneously published in the
New England Journal of Medicine. The trial met its primary endpoint
of progression-free survival (PFS), with belantamab mafodotin, in
combination with pomalidomide plus dexamethasone (PomDex) showing a
statistically significant and clinically meaningful reduction of
nearly 50% in the risk of disease progression or death versus a
standard of care, bortezomib plus PomDex. Median PFS was not yet
reached with the belantamab mafodotin combination compared to 12.7
months in the bortezomib combination. At the end of one year, 71%
of patients in the belantamab mafodotin combination group compared
to 51% in the bortezomib combination group were alive and had not
progressed. A positive overall survival (OS) trend was observed but
not statistically significant, with OS follow-up
ongoing.
DREAMM-8
is the second phase III head-to-head belantamab mafodotin
combination trial to show robust efficacy in relapsed/refractory
multiple myeloma, following the presentation of results from the
DREAMM-7 trial at an ASCO virtual plenary in February 2024 and
publication of those results in June in the New England Journal of
Medicine.
The
pivotal data from DREAMM-7 and DREAMM-8 will serve as the basis for
intended regulatory filings for new indications for belantamab
mafodotin, anticipated in the US, EU, Japan and China by the end of
2024. In July 2024, GSK announced that the European Medicines
Agency accepted the marketing authorisation application for
belantamab mafodotin combinations for the treatment of
relapsed/refractory multiple myeloma in the EU.
Key
phase III trials for Blenrep:
|
|
|
|
|
|
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
|
DREAMM-7
(2L+ multiple myeloma; MM)
NCT04246047
|
III
|
A
multi-centre, open-label, randomised trial to evaluate the efficacy
and safety of the combination of belantamab mafodotin, bortezomib,
and dexamethasone (B-Vd) compared with the combination of
daratumumab, bortezomib and dexamethasone (D-Vd) in participants
with relapsed/refractory multiple myeloma
|
Trial
start:
Q2
2020
Primary
data reported:
Q4 2023
|
Primary
endpoint met
|
|
DREAMM-8
(2L+ MM)
NCT04484623
|
III
|
A
multi-centre, open-label, randomised trial to evaluate the efficacy
and safety of belantamab mafodotin in combination with pomalidomide
and dexamethasone (B-Pd) versus pomalidomide plus bortezomib and
dexamethasone (P-Vd) in participants with relapsed/refractory
multiple myeloma
|
Trial
start:
Q4
2020
Primary
data reported:
Q1
2024
|
Primary
endpoint met
|
Jemperli (dostarlimab)
Jemperli (dostarlimab) is the foundation of GSK’s
ongoing immuno-oncology-based research and development programme.
In June 2024, the European Medicines Agency accepted a regulatory
application to extend use of Jemperli (dostarlimab) in combination
with standard-of-care chemotherapy (carboplatin and paclitaxel) to
all adult patients with primary advanced or recurrent endometrial
cancer, with a decision expected in H1 2025.
Dostarlimab
is also being studied in several other cancers. In June 2024, GSK
announced updated, longer-term results from the phase II supported
collaborative study with Memorial Sloan Kettering Cancer Center
evaluating dostarlimab as a first-line treatment alternative to
surgery, radiation and chemotherapy for mismatch repair deficient
(dMMR) locally advanced rectal cancer. The trial showed an
unprecedented 100% clinical complete response rate (cCR) in 42
patients who completed treatment with dostarlimab, defined as
complete pathologic response or no evidence of tumours as assessed
by magnetic resonance imaging, endoscopy and digital rectal exam.
In the first 24 patients evaluated, a sustained cCR with a median
follow-up of 26.3 months (95% CI: 12.4-50.5) was
observed.
Key
trials for Jemperli:
|
|
|
|
|
|
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
|
RUBY
(1L stage III or IV endometrial cancer)
NCT03981796
|
III
|
A
randomised, double-blind, multi-centre trial of dostarlimab plus
carboplatin-paclitaxel with and without niraparib maintenance
versus placebo plus carboplatin-paclitaxel in patients with
recurrent or primary advanced endometrial cancer
|
Trial
start:
Q3
2019
Part 1
data reported:
Q4
2022
Part 2
data reported:
Q4
2023
|
Active,
not recruiting; primary endpoints met
|
|
PERLA
(1L metastatic non-small cell lung cancer)
NCT04581824
|
II
|
A
randomised, double-blind trial to evaluate the efficacy of
dostarlimab plus chemotherapy versus pembrolizumab plus
chemotherapy in metastatic non-squamous non-small cell lung
cancer
|
Trial
start:
Q4
2020
Primary
data reported:
Q4
2022
|
Active,
not recruiting; primary endpoint met
|
|
GARNET
(advanced solid tumours)
NCT02715284
|
I/II
|
A
multi-centre, open-label, first-in-human trial evaluating
dostarlimab in participants with advanced solid tumours who have
limited available treatment options
|
Trial
start:
Q1
2016
Primary
data reported:
Q1
2019
|
Recruiting
|
|
AZUR-1
(locally advanced rectal cancer)
NCT05723562
|
II
|
A
single-arm, open-label trial with dostarlimab monotherapy in
participants with untreated stage II/III dMMR/MSI-H locally
advanced rectal cancer
|
Trial
start:
Q1
2023
Data
anticipated: 2026
|
Recruiting
|
|
AZUR-2
(untreated perioperative T4N0 or stage III colon
cancer)
NCT05855200
|
III
|
An
open-label, randomised trial of perioperative dostarlimab
monotherapy versus standard of care in participants with untreated
T4N0 or stage III dMMR/MSI-H resectable colon cancer
|
Trial
start:
Q3
2023
Data
anticipated: 2026+
|
Recruiting
|
|
COSTAR
Lung (advanced non-small cell lung cancer that has progressed on
prior PD-(L)1 therapy and chemotherapy)
NCT04655976
|
II/III
|
A
multi-centre, randomised, parallel group treatment, open label
trial comparing cobolimab + dostarlimab + docetaxel to dostarlimab
+ docetaxel to docetaxel alone in participants with advanced
non-small cell lung cancer who have progressed on prior
anti-PD-(L)1 therapy and chemotherapy
|
Trial
start:
Q4
2020
Data
anticipated:
2025
|
Active,
not recruiting
|
|
JADE
(locally advanced unresected head and neck cancer)
NCT06256588
|
III
|
A
randomised, double-blind, study to evaluate dostarlimab versus
placebo as sequential therapy after chemoradiation in participants
with locally advanced unresected head and neck squamous cell
carcinoma
|
Trial
start:
Q1
2024
Data
anticipated: 2026+
|
Recruiting
|
Ojjaara/Omjjara (momelotinib)
With
its differentiated mechanism of action, Ojjaara has become a backbone therapy
in myelofibrosis (MF) and a new standard of care for MF patients
with anaemia. In June 2024, the Ministry of Health, Labour and
Welfare (MHLW) approved momelotinib under the brand name
Omjjara for the treatment
of myelofibrosis in Japan. GSK continues to pursue regulatory
submissions and approvals for momelotinib in myelofibrosis across
the globe, as well as to evaluate its potential in combinations and
other areas of unmet need.
Key
phase III trial for momelotinib:
|
|
|
|
|
|
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
|
MOMENTUM
(myelofibrosis)
NCT04173494
|
III
|
A
randomised, double-blind, active control phase III trial intended
to confirm the differentiated clinical benefits of the
investigational drug momelotinib (MMB) versus danazol (DAN) in
symptomatic and anaemic subjects who have previously received an
approved Janus kinase inhibitor (JAKi) therapy for myelofibrosis
(MF)
|
Trial
start:
Q1
2020
Primary
data reported:
Q1
2022
|
Complete;
primary endpoint met
|
Zejula (niraparib)
GSK
continues to assess the potential of Zejula across multiple tumour types and
in combination with other agents. The ongoing development programme
includes several phase III combination studies including the RUBY
Part 2 trial of niraparib and dostarlimab in recurrent or primary
advanced endometrial cancer; the FIRST trial of niraparib and
dostarlimab in stage III or IV nonmucinous epithelial ovarian
cancer; and the ZEAL trial of niraparib plus pembrolizumab in
advanced/metastatic non-small cell lung cancer. In addition,
niraparib is being evaluated in patients with newly diagnosed, MGMT
unmethylated glioblastoma in a recently initiated phase III trial
sponsored by the Ivy Brain Tumor Center and supported by
GSK.
Key
ongoing phase III trials for Zejula (see also RUBY Part 2 in
Jemperli
section):
|
|
|
|
|
|
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
|
ZEAL-1L
(1L advanced non-small cell lung cancer maintenance )
NCT04475939
|
III
|
A
randomised, double-blind, placebo-controlled, multi-centre trial
comparing niraparib plus pembrolizumab versus placebo plus
pembrolizumab as maintenance therapy in participants whose disease
has remained stable or responded to first-line platinum-based
chemotherapy with pembrolizumab for Stage IIIB/IIIC or IV non-small
cell lung cancer
|
Trial
start:
Q4
2020
Data
anticipated:
H2
2024
|
Active,
not recruiting
|
|
FIRST
(1L ovarian cancer maintenance)
NCT03602859
|
III
|
A
randomised, double-blind, comparison of platinum-based therapy with
dostarlimab (TSR-042) and niraparib versus standard of care
platinum-based therapy as first-line treatment of stage III or IV
non-mucinous epithelial ovarian cancer
|
Trial
start:
Q4
2018
Data
anticipated:
H2
2024
|
Active,
not recruiting
|
Principal risks and
uncertainties
The
principal risks and uncertainties affecting the Group for 2024 are
those described under the headings below. These are not listed in
order of significance. In our December 2023 annual risk review, the
Audit & Risk Committee agreed our principal risks for 2024,
which remain largely unchanged.
We
describe our risk management process on pages 57-58 of our 2023
Annual Report, along with more detailed information on our risks,
including definitions, trends, potential impact, context and
mitigation activities as set out on pages 59-61 and pages 284-294
of our 2023 Annual Report.
Other
risks, not at the level of principal risk, and opportunities,
related to Environmental, Social, and Governance (ESG), including
environmental sustainability and climate change, are managed
through our six focus areas, as described in our 2023 ESG
Performance Report. Additional information on climate related risk
management is in our climate related financial disclosure on pages
62-75 of our 2023 Annual Report.
|
|
|
|
2024 Principal Risks
|
|
Enterprise Risk Title
|
Definition
|
|
Patient
safety
|
The
risk that GSK, including our third parties, fails to appropriately
collect, assess, follow up, or report human safety information,
including adverse events, from all potential sources or that GSK
potentially fails to appropriately act on any relevant findings
that may affect the benefit-risk profile of a medicine or vaccine
in a timely manner.
|
|
Product
quality
|
The
risk that GSK or our third parties potentially fail to ensure
appropriate controls and governance of quality for development and
commercial products are in place; compliance with industry
practices and regulations in manufacturing and distribution
activities; and terms of GSK product licenses and supporting
regulatory activities are met.
|
|
Financial
controls and reporting
|
The
risk that GSK fails to comply with current tax laws; fails to
report accurate financial information in compliance with accounting
standards and applicable legislation; or incurs significant losses
due to treasury activities.
|
|
Legal
matters
|
The
risk that GSK or our third parties potentially fail to comply with
certain legal requirements for the development and management of
our pipeline, supply and commercialisation of our products and
operation of business, and specifically in relation to requirements
for competition law, anti-bribery and corruption, and sanctions.
Any failure to meet compliance and legal standards for these
particular areas could lead to increasing scrutiny and enforcement
from government agencies.
|
|
Commercial
practices
|
The
risk that GSK or our third parties potentially engage in commercial
activities that fail to comply with laws, regulations, industry
codes, and internal controls and requirements.
|
|
Scientific
and patient engagement
|
The
risk that GSK or our third parties potentially fail to engage
externally to gain insights, educate and communicate on the science
of our medicines and associated disease areas, and provide
healthcare and patient support, grants and donations in a
legitimate and transparent manner compliant with laws, regulations,
industry codes and internal controls and requirements.
|
|
Data
ethics and privacy
|
The
risk that GSK or our third parties potentially fail to ethically
collect; use; re-use through artificial intelligence, data
analytics or automation; secure; share and destroy personal
information in accordance with laws, regulations, and internal
controls and requirements.
|
|
Research
practices
|
The
risk that GSK or our third parties potentially fail to adequately
conduct ethical and credible pre-clinical and clinical research,
collaborate in research activities compliant with laws,
regulations, and internal controls and requirements.
|
|
Environment,
health and safety (EHS)
|
The
risk that GSK or our third parties potentially fail to ensure
appropriate controls and governance of the organisation's assets,
facilities, infrastructure, and business activities, including
execution of hazardous activities, handling of hazardous materials,
or release of substances harmful to the environment that disrupts
supply or harms employees, third parties or the
environment.
|
|
Information
and cyber security
|
The
risk that GSK or our third parties fail to ensure appropriate
controls and governance to identify, protect, detect, respond, and
recover from cyber security incidents in accordance with applicable
laws, regulations, industry standards, internal controls, and
requirements. This could be due to unauthorised access, disclosure,
loss, theft, unavailability or corruption of GSK's information, key
systems, or technology infrastructure.
|
|
Supply
continuity
|
The
risk that GSK or our third parties potentially fail to deliver a
continuous supply of compliant finished product or respond
effectively to a crisis incident in a timely manner to recover and
sustain critical supply operations.
|
Reporting
definitions
Total and Core results
Total
reported results represent the Group’s overall performance.
GSK uses a number of non-IFRS measures to report the performance of
its business. Core results and other non-IFRS measures may be
considered in addition to, but not as a substitute for or superior
to, information presented in accordance with IFRS. Core results are
defined on page 18 and other non-IFRS measures are defined
below.
CER and AER growth
In
order to illustrate underlying performance, it is the Group’s
practice to discuss its results in terms of constant exchange rate
(CER) growth. This represents growth calculated as if the exchange
rates used to determine the results of overseas companies in
Sterling had remained unchanged from those used in the comparative
period. CER% represents growth at constant exchange rates. For
those countries which qualify as hyperinflationary as defined by
the criteria set out in IAS 29 ‘Financial Reporting in
Hyperinflationary Economies’ (Argentina and Turkey) CER
growth is adjusted using a more appropriate exchange rate
reflecting depreciation of their respective currencies in order to
provide comparability and not to distort CER growth
rates.
£%
or AER% represents growth at actual exchange rates.
Free cash flow
Free
cash flow is defined as the net cash inflow/outflow from operating
activities less capital expenditure on property, plant and
equipment and intangible assets, contingent consideration payments,
net finance costs, and dividends paid to non-controlling interests,
contributions from non-controlling interests plus proceeds from the
sale of property, plant and equipment and intangible assets, and
dividends received from joint ventures and associates. The measure
is used by management as it is considered a good indicator of net
cash generated from business activities (excluding any cash flows
arising from equity investments, business acquisitions or disposals
and changes in the level of borrowing) available to pay
shareholders dividends and to fund strategic plans. Free cash flow
growth is calculated on a reported basis. A reconciliation of net
cash inflow from operations to free cash flow from operations is
set out on page 44.
Free cash flow conversion
Free
cash flow conversion is free cash flow from operations as a
percentage of profit attributable to shareholders.
Total Net debt
Net
debt is defined as total borrowings less cash, cash equivalents,
liquid investments, and short-term loans to third parties that are
subject to an insignificant risk of change in value. The measure is
used by management as it is considered a good indicator of GSK's
ability to meet its financial commitments and the strength of its
balance sheet.
COVID-19
solutions
COVID-19
solutions include the sales of pandemic adjuvant and other COVID-19
solutions during the years from 2020-2023 and includes vaccine
manufacturing and Xevudy
and the associated costs but does not include reinvestment in
R&D. This categorisation is used by management who believe it
is helpful to investors through providing clarity on the results of
the Group by showing the contribution to growth from COVID-19
solutions during this period.
Turnover excluding COVID-19 solutions
Turnover excluding COVID-19 solutions excludes the impact of sales
of pandemic adjuvant within Vaccines and Xevudy within Specialty Medicines related to the
COVID-19 pandemic during the years 2020-2023. Management believes
that the exclusion of the impact of these COVID-19 solutions sales
aids comparability in the reporting periods and understanding of
GSK’s growth including by region versus prior periods and
also 2024 Guidance which excludes any contributions from COVID-19
solutions in current year or comparator
periods.
Non-controlling interest
Non-controlling
interest is the equity in a subsidiary not attributable, directly
or indirectly, to a parent.
Working capital
Working
capital represents inventory and trade receivables less trade
payables.
Total Operating Margin
Total
Operating margin is Total operating profit divided by
turnover.
Core Operating Margin
Core
Operating margin is Core operating profit divided by
turnover.
Total Earnings per
share
Unless
otherwise stated, Total earnings per share refers to Total basic
earnings per share.
RAR (Returns and Rebates)
GSK
sells to customers both commercial and government mandated
contracts with reimbursement arrangements that include rebates,
chargebacks and a right of return for certain pharmaceutical
products principally in the US. Revenue recognition reflects
gross-to-net sales adjustments as a result. These adjustments are
known as the RAR accruals and are a source of significant
estimation uncertainty and fluctuation which can have a material
impact on reported revenue from one accounting period to the
next.
Risk adjusted sales
Pipeline
risk-adjusted sales are based on the latest internal estimate of
the probability of technical and regulatory success for each asset
in development.
General Medicines
General
Medicines are usually prescribed in the primary care or community
settings by general healthcare practitioners. For GSK, this
includes medicines for inhaled respiratory, dermatology,
antibiotics and other diseases.
Specialty
Medicines
Specialty
Medicines are typically prescription medicines used to treat
complex or rare chronic conditions. For GSK, this comprises
medicines for infectious diseases, HIV, Respiratory/Immunology and
Other and Oncology.
Percentage points
Percentage
points of growth which is abbreviated to ppts.
Year to date
Year to
date is the six-month period in the year to 30 June 2024 or the
same prior period in 2023 as appropriate.
Brand names and partner acknowledgements: brand
names appearing in italics throughout this document are trademarks
of GSK or associated companies or used under licence by the
Group.
Guidance and outlooks, assumptions
and cautionary statements
2024 Guidance
GSK
expects 2024 turnover to increase between 7 to 9 per cent
(previously 5 to 7 per cent) and Core Operating profit to increase
between 11 to 13 per cent (previously 9 to 11 per cent). Core
Earnings per share is expected to increase between 10 to 12 per
cent (previously 8 to 10 per cent).
The
Group revises turnover expectations for Vaccines to an increase of
low to mid-single digit per cent, for Specialty Medicines an
increase of mid to high teens per cent and for General Medicines an
increase of low to mid-single digit per cent.
This
guidance is provided at CER and excludes any contribution from
COVID-19 related solutions.
Assumptions and basis of preparation related to 2024
guidance
In
outlining the guidance for 2024, the Group has made certain
planning assumptions about the macro-economic environment, the
healthcare sector (including regarding existing and possible
additional governmental legislative and regulatory reform), the
different markets and competitive landscape in which the Group
operates and the delivery of revenues and financial benefits from
its current portfolio, its development pipeline and restructuring
programmes.
These
planning assumptions as well as operating profit and earnings per
share guidance and dividend expectations assume no material
interruptions to supply of the Group’s products, no material
mergers, acquisitions or disposals, no material litigation or
investigation costs for the Company (save for those that are
already recognised or for which provisions have been made) and no
change in the Group’s shareholdings in ViiV Healthcare. The
assumptions also assume no material changes in the healthcare
environment or unexpected significant changes in pricing as a
result of government or competitor action. The 2024 guidance
factors in all divestments and product exits announced to
date.
Notwithstanding
our guidance, outlooks and expectations, there is still uncertainty
as to whether our assumptions, guidance, outlooks and expectations
will be achieved.
The
guidance is given on a constant currency basis.
Assumptions and cautionary statement regarding forward-looking
statements
The
Group’s management believes that the assumptions outlined
above are reasonable, and that the guidance, outlooks, and
expectations described in this report are achievable based on those
assumptions. However, given the forward-looking nature of these
guidance, outlooks, and expectations, they are subject to greater
uncertainty, including potential material impacts if the above
assumptions are not realised, and other material impacts related to
foreign exchange fluctuations, macro-economic activity, the impact
of outbreaks, epidemics or pandemics, changes in legislation,
regulation, government actions or intellectual property protection,
product development and approvals, actions by our competitors, and
other risks inherent to the industries in which we
operate.
This
document contains statements that are, or may be deemed to be,
“forward-looking statements”. Forward-looking
statements give the Group’s current expectations or forecasts
of future events. An investor can identify these statements by the
fact that they do not relate strictly to historical or current
facts. They use words such as ‘anticipate’,
‘estimate’, ‘expect’, ‘intend’,
‘will’, ‘project’, ‘plan’,
‘believe’, ‘target’ and other words and
terms of similar meaning in connection with any discussion of
future operating or financial performance. In particular, these
include statements relating to future actions, prospective products
or product approvals, future performance or results of current and
anticipated products, sales efforts, expenses, the outcome of
contingencies such as legal proceedings, dividend payments and
financial results. Other than in accordance with its legal or
regulatory obligations (including under the Market Abuse
Regulation, the UK Listing Rules and the Disclosure and
Transparency Rules of the Financial Conduct Authority), the Group
undertakes no obligation to update any forward-looking statements,
whether as a result of new information, future events or otherwise.
The reader should, however, consult any additional disclosures that
the Group may make in any documents which it publishes and/or files
with the SEC. All readers, wherever located, should take note of
these disclosures. Accordingly, no assurance can be given that any
particular expectation will be met and investors are cautioned not
to place undue reliance on the forward-looking
statements.
All
guidance, outlooks and expectations should be read together with
the guidance and outlooks, assumptions and cautionary statements in
this Q2 2024 earnings release and in the Group's 2023 Annual Report
on Form 20-F.
Forward-looking
statements are subject to assumptions, inherent risks and
uncertainties, many of which relate to factors that are beyond the
Group’s control or precise estimate. The Group cautions
investors that a number of important factors, including those in
this document, could cause actual results to differ materially from
those expressed or implied in any forward-looking statement. Such
factors include, but are not limited to, those discussed under Item
3.D ‘Risk Factors’ in the Group’s Annual Report
on Form 20-F for 2023. Any forward-looking statements made by or on
behalf of the Group speak only as of the date they are made and are
based upon the knowledge and information available to the Directors
on the date of this report.
Directors’ responsibility
statement
The
Board of Directors approved this Half-yearly Financial Report on
31 July 2024.
The
Directors confirm that to the best of their knowledge the unaudited
condensed financial information has been prepared in accordance
with IAS 34 as contained in UK-adopted International Financial
Reporting Standards (IFRS) and that the interim management report
includes a fair review of the information required by DTR 4.2.7 and
DTR 4.2.8.
After
making enquiries, the Directors considered it appropriate to adopt
the going concern basis in preparing this Half-yearly Financial
Report.
The
Directors of GSK plc are as follows:
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Sir
Jonathan Symonds
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Non-Executive
Chair, Nominations & Corporate Governance Committee
Chair
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Dame
Emma Walmsley
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Chief
Executive Officer (Executive Director)
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Julie
Brown
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Chief
Financial Officer (Executive Director)
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Elizabeth
McKee Anderson
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Independent
Non-Executive Director
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Charles
Bancroft
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Senior
Independent Non-Executive Director, Audit & Risk Committee
Chair
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Dr Hal
Barron
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Non-Executive
Director
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Dr Anne
Beal
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Independent
Non-Executive Director, Corporate Responsibility Committee
Chair
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Wendy
Becker
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Independent
Non-Executive Director, Remuneration Committee Chair
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Dr
Harry (Hal) Dietz
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Independent
Non-Executive Director, Science Committee Chair
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Dr
Jesse Goodman
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Independent
Non-Executive Director
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Dr
Jeannie Lee
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Independent
Non-Executive Director
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Dr
Vishal Sikka
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Independent
Non-Executive Director
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By
order of the Board
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Emma
Walmsley
Chief
Executive Officer
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Julie
Brown
Chief
Financial Officer
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31 July
2024
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Independent review report to GSK plc
Conclusion
We have
been engaged by GSK plc (“the Company”) to review the
condensed financial information in the Results Announcement of the
Company for the three and six months ended 30 June
2024.
The
condensed financial information comprises:
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the
income statement and statement of comprehensive income for the
three and six month periods ended 30 June 2024 on pages 26 and
27;
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the
balance sheet as at 30 June 2024 on page 28;
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the
statement of changes in equity for the six-month period then ended
on page 29;
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the
cash flow statement for the six-month period then ended on page 30;
and
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●
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the
accounting policies and basis of preparation and the explanatory
notes to the condensed financial information on pages 31 to 49 that
have been prepared applying consistent accounting policies to those
applied by GSK plc and its subsidiaries (“the Group”)
in the Annual Report 2023, which was prepared in accordance with
International Financial Reporting Standards (“IFRS”) as
adopted by the United Kingdom.
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Based
on our review, nothing has come to our attention that causes us to
believe that the condensed financial information in the Results
Announcement for the three and six months ended 30 June 2024 is not
prepared, in all material respects, in accordance with United
Kingdom adopted International Accounting Standard 34 and the
Disclosure Guidance and Transparency Rules of the United
Kingdom’s Financial Conduct Authority.
Basis for Conclusion
We
conducted our review in accordance with International Standard on
Review Engagements (UK) 2410 “Review of Interim Financial
Information Performed by the Independent Auditor of the
Entity” issued by the Financial Reporting Council for use in
the United Kingdom (ISRE (UK) 2410). A review of interim financial
information consists of making inquiries, primarily of persons
responsible for financial and accounting matters, and applying
analytical and other review procedures. A review is substantially
less in scope than an audit conducted in accordance with
International Standards on Auditing (UK) and consequently does not
enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit.
Accordingly, we do not express an audit opinion.
As
disclosed on page 41, the annual financial statements of the
Company are prepared in accordance with United Kingdom adopted
international accounting standards. The condensed set of financial
information included in this Results Announcement have been
prepared in accordance with United Kingdom adopted International
Accounting Standard 34, “Interim Financial
Reporting”.
Conclusion Relating to Going Concern
Based
on our review procedures, which are less extensive than those
performed in an audit as described in the Basis for Conclusion
section of this report, nothing has come to our attention to
suggest that the directors have inappropriately adopted the going
concern basis of accounting or that the directors have identified
material uncertainties relating to going concern that are not
appropriately disclosed.
This
Conclusion is based on the review procedures performed in
accordance with ISRE (UK) 2410, however future events or conditions
may cause the entity to cease to continue as a going
concern.
Responsibilities of the directors
The
directors are responsible for preparing the Results Announcement of
the Company in accordance with the Disclosure Guidance and
Transparency Rules of the United Kingdom’s Financial Conduct
Authority.
In
preparing the Results Announcement, the directors are responsible
for assessing the Company’s ability to continue as a going
concern, disclosing as applicable, matters related to going concern
and using the going concern basis of accounting unless the
directors either intend to liquidate the company or to cease
operations, or have no realistic alternative but to do
so.
Auditor’s Responsibilities for the review of the financial
information
In
reviewing the Results Announcement, we are responsible for
expressing to the Company a conclusion on the condensed financial
information in the Results Announcement based on our review. Our
Conclusion, including our Conclusion Relating to Going Concern, are
based on procedures that are less extensive than audit procedures,
as described in the Basis for Conclusion paragraph of this
report.
Use of our report
This
report is made solely to the Company in accordance with ISRE (UK)
2410. Our work has been undertaken so that we might state to
the Company those matters we are required to state to it in an
independent review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility
to anyone other than the Company, for our review work, for this
report, or for the conclusions we have formed.
Deloitte LLP
Statutory
Auditor
London,
United Kingdom
30 July
2024
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorised.
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GSK plc
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(Registrant)
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Date:
July 31, 2024
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By:/s/ VICTORIA
WHYTE
--------------------------
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Victoria Whyte
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Authorised
Signatory for and on
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behalf
of GSK plc
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GSK (NYSE:GSK)
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