![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Name | Symbol | Market | Type |
---|---|---|---|
GSK plc | NYSE:GSK | NYSE | Depository Receipt |
Price Change | % Change | Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
1.00 | 2.57% | 39.90 | 39.94 | 39.14 | 39.20 | 3,846,610 | 23:27:10 |
Sales and earnings growth delivered by key growth
drivers
|
|
●
|
Q2 2023
sales +4% and +11% ex COVID
|
●
|
Vaccines
sales +18%, +15% ex COVID with Shingrix +20%
|
●
|
Specialty Medicines sales -7%, +12% ex COVID with HIV
+12%
|
●
|
General Medicines sales +8% with Trelegy +30%
|
●
|
Strong sales growth of products launched since 2017 including in
Vaccines and HIV contributing to step change in
performance
|
●
|
Total operating profit and Total continuing EPS >100% driven by
strong operating performance and favourable movements in contingent
consideration liabilities
|
●
|
Adjusted
operating profit +11% and Adjusted EPS +16% reflects strong sales
ex COVID and higher royalty income offset by increased investment
in R&D and new product launches
|
(Financial
Performance – Q2 2023 results unless otherwise stated, growth
% and commentary at CER, ex COVID is excluding COVID-19 solutions
as defined on page 54).
|
|
Q2 2023
|
|
Year to Date
|
||||||||
|
£m
|
|
%
AER
|
|
%
CER
|
|
£m
|
|
%
AER
|
|
%
CER
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
7,178
|
|
4
|
|
4
|
|
14,129
|
|
-
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover ex COVID-19 solutions
|
7,137
|
|
10
|
|
11
|
|
13,956
|
|
13
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating profit
|
2,141
|
|
98
|
|
>100
|
|
4,223
|
|
25
|
|
23
|
|
|
|
|
|
|
|
|
|
|
|
|
Total continuing EPS
|
40.1p
|
|
>100
|
|
>100
|
|
76.9p
|
|
40
|
|
39
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
operating profit
|
2,170
|
|
8
|
|
11
|
|
4,262
|
|
8
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
operating margin %
|
30.2%
|
|
1.3ppts
|
|
2.0ppts
|
|
30.2%
|
|
2.2ppts
|
|
2.3ppts
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EPS
|
38.8p
|
|
12
|
|
16
|
|
75.8p
|
|
13
|
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash generated from operations
|
1,620
|
|
3
|
|
|
|
1,907
|
|
(52)
|
|
|
R&D innovation continued delivery of organic portfolio and
targeted business development
|
|
●
|
Arexvy, world’s first RSV
vaccine in older adults, approved in US and EU
|
●
|
Shingrix approved, for shingles
in at-risk adults aged 18 and over in Japan
|
●
|
Positive phase III data for MenABCWY vaccine candidate presented at
ESPID and supports filing in 2024
|
●
|
US FDA Fast Track designation granted to gonorrhoea vaccine
candidate
|
●
|
CHMP positive opinion for long-acting treatment cabotegravir in HIV
prevention
|
●
|
Paediatric exclusivity granted for dolutegravir extends US LOE to
April 2028
|
●
|
Completion of Bellus Health acquisition adds camlipixant, a phase
III asset for refractory chronic cough
|
●
|
Next US FDA approval decisions include momelotinib (myelofibrosis)
and Jemperli (1L endometrial cancer)
|
●
|
Development decisions on key phase I/II assets before year end
include: bepirovirsen (Hep B), mRNA influenza, CCL17 (pain), IL18
(atopic dermatitis) and therapeutic HSV
|
2023 guidance upgraded, Q2 2023 dividend of 14p declared, 56.5p
expected for full year
|
|
●
|
Turnover
to increase 8-10% (from
6-8%)
|
●
|
Adjusted
operating profit growth 11-13% (from 10-12%)
|
●
|
Adjusted
EPS growth 14-17% (from
12-15%)
|
Guidance all at CER and excluding COVID-19
solutions.
|
Emma Walmsley, Chief Executive Officer, GSK:
“We
have delivered another excellent quarter of performance, with
strong sales and earnings growth, notably in HIV and Vaccines, and
continued strengthening of the R&D pipeline and product
portfolio. The approval of Arexvy, the world’s first RSV vaccine, was an
important milestone for us and is at the forefront of a next wave
in vaccine innovation for GSK. Completion of the Bellus Health
acquisition also strengthened our late-stage respiratory pipeline.
Our momentum supports the upgrade we have made to our financial
guidance for 2023 and further increases our confidence in
delivering longer-term profitable growth for
shareholders.”
|
The Total results are presented in summary above and on page 7 and
Adjusted results reconciliations are presented on pages 19, 20, 22
and 23. Adjusted results are a non-IFRS measure excluding
discontinued operations and other adjustments that may be
considered in addition to, but not as a substitute for, or superior
to, information presented in accordance with IFRS. Adjusted results
are defined on page 17 and £% or AER% growth, CER% growth,
turnover excluding COVID-19 solutions and other non-IFRS measures
are defined on page 54, COVID-19 solutions are defined on page 54.
GSK provides guidance on an Adjusted results basis only, for the
reasons set out on page 17. All expectations, guidance and targets
regarding future performance and dividend payments should be read
together with ‘Guidance, assumptions and cautionary
statements’ on page 55.
|
2023 guidance
|
GSK
revises its full year guidance at constant exchange rates (CER).
All expectations and full-year growth rates exclude any
contributions from COVID-19 solutions.
During
the first half of 2023, GSK exceeded its full-year guidance
expectations with a strong performance. This was due to GSK’s
strong business momentum across all product areas but particularly
in HIV, as well as in General Medicines. The strong allergy season
and a favourable post-pandemic recovery in comparison to the first
half of 2022 also contributed to the performance. As a result, GSK
has upgraded its full-year 2023 guidance at constant exchange rates
(CER), excluding any contributions from COVID-19
solutions:
|
Turnover is expected to increase between 8 to 10 per cent
(from 6 to 8 per
cent)
Adjusted operating profit is expected to
increase between 11 to 13 per
cent (from 10 to 12 per
cent)
Adjusted earnings per share is expected
to increase between 14 to 17
per cent (from 12 to 15 per
cent)
|
In the
second half of 2023, GSK expects continued strong performance
across all three product areas but with lower growth reflecting a
tough comparison to the second half of 2022, particularly in HIV
and General Medicines. GSK still expects Adjusted operating profit
growth to be higher in the second half of 2023 relative to
full-year expectations, with growth of investment reducing in the
second half, particularly in the fourth quarter.
This
guidance is supported by the following turnover expectations for
full year 2023 at CER:
|
Vaccines
|
–
|
expected
increase of mid-teens per
cent in turnover (unchanged)
|
Specialty
Medicines
|
–
|
expected
increase of high single-digit per
cent in turnover (from mid
to high single-digit increase)
|
General
Medicines
|
–
|
expected
increase of low single-digit per
cent in turnover (from
broadly flat to slightly down)
|
Adjusted
Operating profit is now expected to grow between 11 to 13 per cent
at CER (previously 10 to 12 per cent increase), reflecting higher
sales and higher royalty income partially offset by cost of sales
which is now expected to increase broadly in line with turnover,
reflecting a greater contribution from General Medicines. SG&A
is anticipated to increase at a rate broadly aligned to turnover,
reflecting targeted support for launches and R&D continues to
be expected to increase at a rate slightly below turnover. Adjusted
earnings per share are now expected to increase between 14 to 17
per cent at CER, reflecting higher operating profit and more
favourable net finance costs. Expectations for non-controlling
interests and tax rate of around 15% are unchanged.
|
Additional commentary
|
Dividend
policies and expected pay-out ratios remain unchanged for GSK. The
future dividend policies and guidance regarding the expected
dividend pay-out in 2023 for GSK are provided on page
36.
|
COVID-19 solutions
|
In Q2
2023, turnover increased by 4% at CER reflecting the comparison to
Q2 2022. Excluding COVID-19 solutions, turnover increased by 11% at
CER. The adverse impact of lower sales of COVID-19 solutions was
one percentage point of growth in the quarter on Adjusted operating
profit but increased the margin by 1.8 percentage points. GSK does
not anticipate further significant COVID-19 pandemic-related sales
or operating profit in 2023. Consequently, GSK now expects
full-year 2023 turnover growth to be impacted by approximately 8%,
with Adjusted Operating profit growth being reduced between 4% to
5% versus the prior year.
All
expectations, guidance and targets regarding future performance and
dividend payments should be read together with ‘Guidance,
assumptions and cautionary statements’ on page 55. If
exchange rates were to hold at the closing rates on 30 Jun 2023
($1.26/£1, €1.17/£1 and Yen 183/£1) for the
rest of 2023, the estimated impact on 2023 Sterling turnover growth
for GSK would be -2% and if exchange gains or losses were
recognised at the same level as in 2022, the estimated impact on
2023 Sterling Adjusted Operating Profit growth for GSK would be
-5%.
|
Results presentation
|
A
conference call and webcast for investors and analysts of the
quarterly results will be hosted by Emma Walmsley, CEO, at 12pm BST
on 26 July 2023. 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.
|
Performance: turnover
|
Turnover
|
Q2 2023
|
|
Year to date
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
£m
|
|
Growth
AER%
|
|
Growth
CER%
|
|
£m
|
|
Growth
AER%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
|
|
|
|
Shingles
|
880
|
|
20
|
|
20
|
|
1,713
|
|
20
|
|
16
|
Meningitis
|
266
|
|
13
|
|
13
|
|
546
|
|
22
|
|
19
|
Influenza
|
23
|
|
(28)
|
|
(28)
|
|
35
|
|
(30)
|
|
(28)
|
Established
Vaccines
|
812
|
|
13
|
|
13
|
|
1,627
|
|
12
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
Vaccines excluding COVID-19
solutions
|
1,981
|
|
16
|
|
15
|
|
3,921
|
|
16
|
|
12
|
COVID-19
solutions: Pandemic
vaccines
|
41
|
|
-
|
|
-
|
|
142
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Vaccines
|
2,022
|
|
18
|
|
18
|
|
4,063
|
|
20
|
|
16
|
|
|
|
|
|
|
|
|
|
|
|
|
HIV
|
1,580
|
|
13
|
|
12
|
|
3,048
|
|
18
|
|
14
|
Respiratory/Immunology
and Other
|
792
|
|
16
|
|
16
|
|
1,393
|
|
16
|
|
13
|
Oncology
|
151
|
|
(2)
|
|
(3)
|
|
287
|
|
2
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty Medicines excluding
COVID-19 solutions
|
2,523
|
|
13
|
|
12
|
|
4,728
|
|
16
|
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
COVID-19
solutions: Xevudy
|
-
|
|
(100)
|
|
(100)
|
|
31
|
|
(98)
|
|
(98)
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty Medicines
|
2,523
|
|
(7)
|
|
(7)
|
|
4,759
|
|
(18)
|
|
(21)
|
|
|
|
|
|
|
|
|
|
|
|
|
Respiratory
|
1,792
|
|
9
|
|
9
|
|
3,559
|
|
12
|
|
10
|
Other
General Medicines
|
841
|
|
(2)
|
|
4
|
|
1,748
|
|
2
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
General Medicines
|
2,633
|
|
5
|
|
8
|
|
5,307
|
|
8
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
7,178
|
|
4
|
|
4
|
|
14,129
|
|
-
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total excluding COVID-19 solutions
|
7,137
|
|
10
|
|
11
|
|
13,956
|
|
13
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
By Region:
|
|
|
|
|
|
|
|
|
|
|
|
US
|
3,610
|
|
9
|
|
7
|
|
6,880
|
|
-
|
|
(5)
|
Europe
|
1,644
|
|
6
|
|
4
|
|
3,348
|
|
4
|
|
1
|
International
|
1,924
|
|
(7)
|
|
-
|
|
3,901
|
|
(3)
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
7,178
|
|
4
|
|
4
|
|
14,129
|
|
-
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
Turnover excluding COVID-19 solutions is a non-IFRS measure defined
on page 54 with the reconciliation to the IFRS measure Turnover
included in the table above.
|
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Vaccines
|
Total
|
Q2 23
|
2,022
|
18%
|
18%
|
YTD
|
4,063
|
20%
|
16%
|
Excluding COVID-19 solutions
|
Q2 23
|
1,981
|
16%
|
15%
|
YTD
|
3,921
|
16%
|
12%
|
|
|
|||||||||
Double-digit
growth for Vaccines in Q2 23 and YTD was driven by geographical
expansion and market growth for Shingrix, favourable US Center for
Disease Control (CDC) stockpile movements for Rotarix, and uptake in National
Immunisation Programmes for Bexsero.
|
Shingles
|
Q2 23
|
880
|
20%
|
20%
|
YTD
|
1,713
|
20%
|
16%
|
|
||||||||
Shingrix, a vaccine against
herpes zoster (shingles), grew in Q2 23 and YTD in International
and Europe reflecting geo-expansion and increased demand. Sales
outside of the US in the quarter also include stocking for the UK
national immunisation programme and channel inventory replenishment
in China. US sales declined 10% in the quarter impacted by
unfavourable wholesaler and distributor inventory movements plus
lower non-retail demand partly offset by strong retail growth and
pricing. The US cumulative immunisation rate grew from 30% at year
end to 32% at the end of Q1 23 with vaccination in adults 65 and
older boosted by co-pay removal in the Inflation Reduction
Act. Shingrix is now available in 33
countries.
|
Meningitis
|
Q2 23
|
266
|
13%
|
13%
|
YTD
|
546
|
22%
|
19%
|
|
||||||||
Building upon the momentum from Q1 23, Meningitis vaccines grew
again in Q2 23 primarily driven by Bexsero, the vaccine against meningitis B, with higher
sales in Europe mainly from inclusion in National Immunisation
Programmes and in International due to increased private and public
market demand. YTD sales benefitted from the initial stocking
of Menveo liquid formulation and higher CDC purchases in the
US as well as demand in anticipation of a Bexsero price increase in International in Q1
23.
|
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Established
Vaccines
|
Q2 23
|
812
|
13%
|
13%
|
YTD
|
1,627
|
12%
|
8%
|
|
|
|||||||||
Established
Vaccines growth in Q2 23 was driven by Rotarix, benefitting from the
favourable impacts of a US CDC stockpile borrow in 2022 and a
replenishment in the current quarter. Cervarix, grew in Q2 23 in
International and Europe reflecting higher demand and timing of
deliveries. This is partly offset by Infanrix/Pediarix, due to the negative
impact of a CDC stockpile borrow in the quarter and continued
competitive pressure in the US. Outside of Q2 23 performance
drivers, YTD turnover includes growth of Hepatitis vaccines
resulting from continued travel market recovery in Europe and
International and a decline on Synflorix, reflecting lower demand
related to decreased birth cohorts and phasing of public market
supply in International.
|
Specialty Medicines
|
Total
|
Q2 23
|
2,523
|
(7%)
|
(7%)
|
YTD
|
4,759
|
(18%)
|
(21%)
|
Excluding COVID-19 solutions
|
Q2
23
|
2,523
|
13%
|
12%
|
YTD
|
4,728
|
16%
|
12%
|
|
|
|||||||||
In Q2
23 and YTD there were minimal sales of Xevudy contrasting with strong sales
YTD 2022. Specialty Medicines growth excluding COVID-19 solutions
reflects consistent performance in Q2 23 and YTD driven by HIV and
Respiratory/Immunology and Other categories.
|
HIV
|
Q2 23
|
1,580
|
13%
|
12%
|
YTD
|
3,048
|
18%
|
14%
|
|
||||||||
The performance of HIV benefitted from strong patient demand,
driven by the Oral two-drug regimen (Oral 2DR) and Long-Acting
medicines which contributed approximately eight percentage points
of growth. Pricing favourability driven by the US contributed two
percentage points of growth. YTD includes the majority of the
inventory depletion now expected from the 2022 build.
|
Oral
2DR and Long-Acting
|
Q2 23
|
805
|
46%
|
44%
|
YTD
|
1,502
|
53%
|
47%
|
|
||||||||
Oral
2DR (Dovato, Juluca) and
Long-Acting medicines (Cabenuva,
Apretude) sales growth continues and now represent 51% of
the total HIV portfolio compared to 39% for Q2 22, driven by market
share growth of 4 percentage points versus Q2 22. Long-Acting
medicines sales in the quarter were £212 million, growing
£128 million versus Q2 22 and £61 million versus Q1 23,
with approximately three quarters of sales coming from patient
switches from competitor products.
|
Respiratory/Immunology and Other
|
Q2 23
|
792
|
16%
|
16%
|
YTD
|
1,393
|
16%
|
13%
|
|
||||||||
This therapy area includes sales of Nucala and Benlysta plus Duvroq (Daprodustat) in Japan. Growth in Q2 23 exceeds
YTD reflecting the impact of wholesaler inventory movements in US
and International regions in Q1 23.
|
Nucala
|
Q2 23
|
424
|
16%
|
15%
|
YTD
|
771
|
16%
|
13%
|
|
||||||||
Nucala is a 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). Strong growth in all
regions in Q2 23 reflected patient demand in severe
eosinophilic asthma and for the new
indications with ongoing launches. YTD growth is slightly lower due
to impact of US inventory depletion in Q1 23 and an unfavourable
prior period Return and Rebates (RAR)
adjustment.
|
Benlysta
|
Q2 23
|
358
|
21%
|
19%
|
YTD
|
611
|
19%
|
15%
|
|
||||||||
Benlysta, a monoclonal antibody
treatment for Lupus, continues to show consistent growth
representing strong demand in US and Europe alongside biological
penetration and volume uptake in China and Japan. US
growth in Q2 23 shows an acceleration
following wholesaler inventory movements in Q1
23.
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Oncology
|
Q2 23
|
151
|
(2%)
|
(3%)
|
YTD
|
287
|
2%
|
(1%)
|
|
||||||||
In Q2 23 and YTD sales were impacted by the withdrawal of
Blenrep
from the US market in November
2022. Jemperli grew strongly in Q2 23, achieving £25 million
sales driven by increasing new patient starts in the US, and is now
available in 18 markets worldwide.
|
Zejula
|
Q2 23
|
117
|
(3%)
|
(2%)
|
YTD
|
231
|
6%
|
4%
|
|
||||||||
In the US, growth of the first line indication of
Zejula, a PARP inhibitor treatment for ovarian
cancer, was more than offset by reduction in use in second
line following the update to prescribing information agreed with
the FDA in Q4 2022. Zejula
delivered strong sales growth in
Europe and International markets in both Q2 23 and
YTD.
|
General Medicines
|
Q2 23
|
2,633
|
5%
|
8%
|
YTD
|
5,307
|
8%
|
8%
|
|
||||||||
Growth
driven in Q2 23 and YTD by both Respiratory and Other General
Medicines categories, with ongoing demand for Trelegy in all regions. YTD benefitted
from a strong allergy season in Japan and continued post pandemic
recovery of the antibiotic market in Europe and International
regions.
|
Respiratory
|
Q2 23
|
1,792
|
9%
|
9%
|
YTD
|
3,559
|
12%
|
10%
|
|
||||||||
Performance in Q2 23 and YTD reflects growth of Trelegy and the single inhaled triple therapy (SITT) class
across all regions and of Anoro in Europe and International. YTD growth also
includes the benefits of a strong allergy season in Japan. In Q2 23
and YTD favourable US prior period RAR adjustments to
Seretide/Advair
and Trelegy were offset by adverse adjustments to
Relvar/Breo
and Flixotide/Flovent.
|
Trelegy
|
Q2 23
|
611
|
31%
|
30%
|
YTD
|
1,076
|
33%
|
29%
|
|
||||||||
Trelegy is the most prescribed SITT treatment for COPD and
asthma. Trelegy grew in Q2
23 and YTD with strong performance across all regions, reflecting
increased patient demand and growth of the SITT market.
Favourable US prior period RAR
adjustments contributed 7 percentage points of growth in Q2 23 and
3 percentage points YTD.
|
Seretide/Advair
|
Q2 23
|
322
|
23%
|
26%
|
YTD
|
661
|
17%
|
16%
|
|
||||||||
Seretide/Advair is an ICS/LABA
treatment for asthma and COPD. Growth in Q2 23 and YTD reflected
targeted promotion in certain International markets and the benefit
of favourable US prior period RAR adjustments which contributed 16
percentage points in Q2 23 and 14 percentage points YTD. Growth was
partially offset by the ongoing impact of generic competition in
Europe, US and certain International markets.
|
Other General Medicines
|
Q2 23
|
841
|
(2%)
|
4%
|
YTD
|
1,748
|
2%
|
6%
|
|
||||||||
Growth in Q2 23 reflects ongoing post pandemic demand for
anti-infectives in Europe and International, and certain third
party manufacturing agreements. Ongoing generic competition
continues to impact this product group in Q2 23 and
YTD.
|
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
US
|
Total
|
Q2 23
|
3,610
|
9%
|
7%
|
YTD
|
6,880
|
-
|
(5%)
|
|
Excluding COVID-19 solutions
|
Q2 23
|
3,611
|
10%
|
8%
|
YTD
|
6,881
|
13%
|
7%
|
|
|||||||||
Strong Xevudy sales in 2022 caused a 12 percentage points
adverse impact on growth YTD, but in Q2 23 the impact is not
significant. Excluding this effect, Specialty Medicines grew in Q2
23 and YTD driven by strong HIV performance and Nucala and Benlysta continued growth, partially offset by Oncology,
due to the withdrawal of Blenrep in November 2022. General Medicines growth was
driven by Trelegy increased patient demand and growth
of the SITT market. Vaccines product group was broadly flat in Q2 23 and YTD reflecting
lower non-retail demand, wholesaler destocking and a strong Q1 22
comparator on Shingrix
growth resulting in a decline of 10% in the quarter for
Shingrix, offset by
favourable CDC stockpile movements in Established
Vaccines.
|
Europe
|
Total
|
Q2 23
|
1,644
|
6%
|
4%
|
YTD
|
3,348
|
4%
|
1%
|
|
Excluding COVID-19 solutions
|
Q2 23
|
1,621
|
14%
|
12%
|
YTD
|
3,224
|
16%
|
13%
|
|
|||||||||
Strong Xevudy sales in 2022 caused a 8 percentage points adverse
impact on growth in Q2 23 and 12 percentage points in YTD.
Excluding this effect, Europe grew strongly in Q2 23 and YTD.
Vaccines strong growth reflected Shingrix stocking, launches and uptake and
Bexsero
national immunisation campaigns in
France and Spain alongside ongoing travel vaccine recovery.
Specialty Medicines delivered double digit growth due to HIV,
Oncology, and in Respiratory/ Immunology for Benlysta and Nucala which included the impact of new indication
launches.
|
International
|
Total
|
Q2 23
|
1,924
|
(7%)
|
-
|
YTD
|
3,901
|
(3%)
|
1%
|
|
Excluding COVID-19 solutions
|
Q2 23
|
1,905
|
9%
|
17%
|
YTD
|
3,851
|
11%
|
15%
|
|
|||||||||
Strong Xevudy sales in 2022 caused a 17 percentage points
adverse impact on growth in Q2 23 and 14 percentage points in YTD.
Excluding this effect, all product groups grew in Q2 23 and YTD.
Vaccines double digit growth was driven by Shingrix stocking in China and uptake in Japan plus
launches in other markets. Specialty Medicines grew due to HIV,
Oncology and Respiratory/Immunology with Nucala delivering strong growth in severe eosinophilic
asthma and new indications. General Medicines product group was
driven by Respiratory, with Trelegy growth and a strong allergy season in Japan. Other
General Medicines growth was driven by strong post pandemic
antibiotic demand for Augmentin.
|
Financial
performance
|
Total Results
|
Q2 2023
|
|
Year to Date
|
||||||||
|
£m
|
|
%
AER
|
|
%
CER
|
|
£m
|
|
%
AER
|
|
%
CER
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
7,178
|
|
4
|
|
4
|
|
14,129
|
|
-
|
|
(2)
|
Cost of
sales
|
(1,932)
|
|
(11)
|
|
(11)
|
|
(3,875)
|
|
(21)
|
|
(21)
|
Selling,
general and administration
|
(2,268)
|
|
10
|
|
9
|
|
(4,411)
|
|
14
|
|
10
|
Research
and development
|
(1,341)
|
|
8
|
|
7
|
|
(2,601)
|
|
11
|
|
8
|
Royalty
income
|
226
|
|
42
|
|
44
|
|
406
|
|
37
|
|
36
|
Other
operating income/(expense)
|
278
|
|
|
|
|
|
575
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
2,141
|
|
98
|
|
>100
|
|
4,223
|
|
25
|
|
23
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Finance expense
|
(152)
|
|
|
|
|
|
(326)
|
|
(14)
|
|
(17)
|
Share
of after tax profit/(loss) of associates
and
joint ventures
|
(2)
|
|
|
|
|
|
(4)
|
|
|
|
|
Profit/(loss)
on disposal of interest in
associates
|
-
|
|
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
1,987
|
|
>100
|
|
>100
|
|
3,894
|
|
30
|
|
28
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
(242)
|
|
|
|
|
|
(518)
|
|
|
|
|
Tax
rate %
|
12.2%
|
|
|
|
|
|
13.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation
|
1,745
|
|
>100
|
|
>100
|
|
3,376
|
|
34
|
|
32
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling
interests
|
121
|
|
|
|
|
|
262
|
|
|
|
|
Profit
attributable to shareholders
|
1,624
|
|
|
|
|
|
3,114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,745
|
|
>100
|
|
>100
|
|
3,376
|
|
34
|
|
32
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share
|
40.1p
|
|
>100
|
|
>100
|
|
76.9p
|
|
40
|
|
39
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Performance – Q2 2023 results
unless otherwise stated, growth % and commentary at
CER.
|
Adjusted results
Reconciliations
between Total results and Adjusted results for Q2 2023, Q2 2022, H1
2023 and H1 2022 are set out on pages 19, 20, 22 and
23.
|
|
Q2 2023
|
|
Year to Date
|
||||||||
|
£m
|
|
%
AER
|
|
%
CER
|
|
£m
|
|
%
AER
|
|
%
CER
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
7,178
|
|
4
|
|
4
|
|
14,129
|
|
-
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
(1,728)
|
|
(12)
|
|
(12)
|
|
(3,480)
|
|
(23)
|
|
(23)
|
Selling,
general and administration
|
(2,191)
|
|
12
|
|
11
|
|
(4,256)
|
|
14
|
|
11
|
Research
and development
|
(1,315)
|
|
14
|
|
13
|
|
(2,537)
|
|
13
|
|
10
|
Royalty
income
|
226
|
|
42
|
|
44
|
|
406
|
|
37
|
|
36
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
operating profit
|
2,170
|
|
8
|
|
11
|
|
4,262
|
|
8
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
profit before taxation
|
2,016
|
|
10
|
|
14
|
|
3,936
|
|
10
|
|
8
|
Taxation
|
(315)
|
|
14
|
|
18
|
|
(618)
|
|
10
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
profit after taxation
|
1,701
|
|
10
|
|
14
|
|
3,318
|
|
10
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
profit attributable to non-controlling interests
|
130
|
|
|
|
|
|
251
|
|
|
|
|
Adjusted
profit attributable to shareholders
|
1,571
|
|
|
|
|
|
3,067
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,701
|
|
10
|
|
14
|
|
3,318
|
|
10
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share
|
38.8p
|
|
12
|
|
16
|
|
75.8p
|
|
13
|
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 2023
|
|
Year to Date
|
||||
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Cost of
sales
|
Total
|
1,932
|
(11%)
|
(11%)
|
|
3,875
|
(21%)
|
(21%)
|
% of sales
|
26.9%
|
(4.5%)
|
(4.5%)
|
|
27.4%
|
(7.2%)
|
(6.8%)
|
|
Adjusted
|
1,728
|
(12%)
|
(12%)
|
|
3,480
|
(23%)
|
(23%)
|
|
|
% of sales
|
24.1%
|
(4.4%)
|
(4.3%)
|
|
24.6%
|
(7.2%)
|
(6.8%)
|
|
||||||||
The decrease in Total and Adjusted cost of sales as a percentage of
sales in Q2 2023 and year to date primarily reflected lower sales
of lower margin Xevudy compared to Q2 2022 and YTD 2022. In the quarter,
positive mix and efficiencies were offset by higher freight and
energy costs and the year to date also reflected an unfavourable
comparator to a one-time benefit from inventory adjustments in Q1
2022.
|
|
|
Q2 2023
|
|
Year to Date
|
||||
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Selling,
general & administration
|
Total
|
2,268
|
10%
|
9%
|
|
4,411
|
14%
|
10%
|
% of sales
|
31.6%
|
1.8%
|
1.3%
|
|
31.2%
|
3.8%
|
3.4%
|
|
Adjusted
|
2,191
|
12%
|
11%
|
|
4,256
|
14%
|
11%
|
|
|
% of sales
|
30.5%
|
2.3%
|
1.8%
|
|
30.1%
|
3.7%
|
3.4%
|
|
||||||||
Growth
in Total and Adjusted SG&A in Q2 2023 primarily reflected an
increased level of launch investment in Specialty Medicines,
particularly HIV and Vaccines including Shingrix and preparation for the launch
of Arexvy. Total SG&A
also reflected an increase in significant legal costs in the
quarter (see details on page 19).
Year to
date growth in Total and Adjusted SG&A is primarily relating to
an increased level of launch investment in Specialty Medicines,
particularly HIV and Vaccines, and the Zejula royalty dispute provision in Q1
2023. Growth was partly offset by favourable comparison due to
impairment provisions relating to Ukraine in the year to date 2022
and the continuing benefit of restructuring and tight control of
ongoing costs.
|
|
|
Q2 2023
|
|
Year to Date
|
||||
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Research
& development
|
Total
|
1,341
|
8%
|
7%
|
|
2,601
|
11%
|
8%
|
% of sales
|
18.7%
|
0.8%
|
0.5%
|
|
18.4%
|
1.8%
|
1.7%
|
|
Adjusted
|
1,315
|
14%
|
13%
|
|
2,537
|
13%
|
10%
|
|
|
% of sales
|
18.3%
|
1.7%
|
1.4%
|
|
18.0%
|
2.1%
|
1.9%
|
|
||||||||
Growth
in Total and Adjusted R&D reflected continued investment across
a combination of both early and late-stage programmes. There was
increased investment in the early-stage research portfolio,
particularly CCL17 for osteo arthritic pain and IL18 for atopic
dermatitis. There was also increased investment in the HIV
portfolio, particularly in next generation long-acting HIV
medicines. In addition, there was higher investment in Jemperli as phase II/III trials in
rectal and colon cancer progress as well as in ongoing trials in
endometrial cancer and momelotinib, a potential new treatment of
myelofibrosis patients with anaemia; and for bepirovirsen, to
support development in chronic hepatitis B. These increases in
investment were partly offset by decreases related to the
completion of late-stage clinical programmes for otilimab and Cell
& Gene Therapy.
Within
Vaccines there was increased investment in recently acquired
pneumococcal programmes, partly offset by reduced investment in RSV
following the successful completion of a phase III clinical trial
and decreased spend on other programmes.
The
year to date factors were similar, but also included reduced
R&D investment in Blenrep versus the same period in
2022.
|
|
|
Q2 2023
|
|
Year to Date
|
||||
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Royalty
income
|
Total
|
226
|
42%
|
44%
|
|
406
|
37%
|
36%
|
|
Adjusted
|
226
|
42%
|
44%
|
|
406
|
37%
|
36%
|
|
||||||||
Growth
in Total and Adjusted royalty income in Q2 2023 primarily related
to Gardasil royalties, which increased to £132 million in the
quarter and £203 million in the year to date, as well as
Kesimpta and Biktarvy royalties.
|
|
|
Q2 2023
|
|
Year to Date
|
||||
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Other
operating income/(expense)
|
Total
|
278
|
>100%
|
>100%
|
|
575
|
>100%
|
>100%
|
|
||||||||
The
increase in Q2 2023 primarily reflected an accounting credit of
£189 million (Q2 2022: £699 million charge) arising from
the remeasurement of contingent consideration liabilities and the
liabilities for the Pfizer, Inc. (Pfizer) put option and Pfizer and
Shionogi & Co. Ltd (Shionogi) preferential dividends in ViiV
Healthcare.
Year to
date includes a favourable comparison due to an accounting credit
of £460 million (YTD 2022: £1,031 million charge) arising
from the remeasurement of contingent consideration liabilities and
the liabilities for the Pfizer put option and the Pfizer and
Shionogi preferential dividends. This was partly offset by the
upfront income in Q1 2022 of £0.9 billion received from the
settlement with Gilead Sciences, Inc. (Gilead).
|
|
|
Q2 2023
|
|
Year to Date
|
||||
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Operating
profit
|
Total
|
2,141
|
98%
|
>100%
|
|
4,223
|
25%
|
23%
|
|
% of sales
|
29.8%
|
14.2%
|
15.0%
|
|
29.9%
|
6.0%
|
6.2%
|
|
Adjusted
|
2,170
|
8%
|
11%
|
|
4,262
|
8%
|
6%
|
|
% of sales
|
30.2%
|
1.3%
|
2.0%
|
|
30.2%
|
2.2%
|
2.3%
|
|
||||||||
Total
operating profit margin was higher in the quarter and year to date
due to strong operating performance and favourable movements in
contingent consideration liabilities, partly offset in the year to
date by an unfavourable comparison due to the £0.9 billion
upfront income received from the settlement with Gilead in Q1
2022.
Adjusted
operating profit in Q2 2023 benefitted from strong sales across all
three product areas and higher royalty income, partly offset by
increased investment in R&D and product launches. The adverse
impact of lower sales of COVID-19 solutions was one percentage
point of growth in the quarter but increased the Adjusted operating
profit margin by 1.8 percentage points. Year to date Adjusted
operating profit was also impacted by lower sales of COVID-19
solutions which led to a drag of 3 percentage points at AER and CER
but increased the Adjusted operating profit margin by 2.9
percentage points. Excluding COVID-19 solutions sales, year to date
Adjusted operating profit benefitted from strong sales partly
offset by increased legal charges primarily relating to the
Zejula royalty dispute and
an unfavourable comparison to one-time benefits from inventory
adjustments in the year to date 2022.
Contingent
consideration cash payments made to Shionogi and other companies
reduce the balance sheet liability. Total contingent consideration
cash payments in the year to date 2023 amounted to £579
million (YTD 2022: £615 million). These included cash payments
made to Shionogi of £565 million (YTD 2022: £603
million).
|
|
|
Q2 2023
|
|
Year to Date
|
||||
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Adjusted
operating profit by business
|
Commercial Operations
|
3,481
|
5%
|
6%
|
|
6,856
|
7%
|
4%
|
% of sales
|
48.5%
|
0.8%
|
0.7%
|
|
48.5%
|
3.0%
|
2.6%
|
|
R&D
|
(1,273)
|
11%
|
10%
|
|
(2,505)
|
11%
|
8%
|
|
|
||||||||
Commercial
Operations Adjusted operating profit in the quarter and year to
date benefitted from product mix upside (with minimal Xevudy sales) and increased royalty
income, partly offset by increased investment in growth and launch
assets as well as an increase in legal provisions in the year to
date.
The
R&D segment operating expenses primarily reflected continued
investment across a combination of both early and late-stage
programmes, as well as pneumococcal programmes. This was partly
offset by decreases related to the completion of late-stage
clinical development programmes and reduced investment in RSV and
Blenrep versus the same
period in 2022.
|
|
|
Q2 2023
|
|
Year to Date
|
||||
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Net
finance costs
|
Total
|
152
|
(17%)
|
(17%)
|
|
326
|
(14%)
|
(17%)
|
|
Adjusted
|
152
|
(16%)
|
(17%)
|
|
322
|
(15%)
|
(17%)
|
|
||||||||
The decrease in net finance costs in Q2 2023 and year to date is
mainly driven by the net savings from maturing bonds including the
Sterling Notes repurchase in Q4 2022 and higher interest income on
cash.
|
|
|
Q2 2023
|
|
Year to Date
|
||||
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Taxation
|
Total
|
242
|
61%
|
67%
|
|
518
|
10%
|
7%
|
|
Tax rate %
|
12.2%
|
|
|
|
13.3%
|
|
|
|
Adjusted
|
315
|
14%
|
18%
|
|
618
|
10%
|
8%
|
|
Tax rate %
|
15.6%
|
|
|
|
15.7%
|
|
|
|
||||||||
The
effective tax rate impact is broadly in line with expectations for
the quarter. Issues related to taxation are described in Note 14,
‘Taxation’ in the Annual Report 2022. 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 2023
|
|
Year to Date
|
||||
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Non-controlling
interests
|
Total
|
121
|
>100%
|
>100%
|
|
262
|
(17%)
|
(22%)
|
Adjusted
|
130
|
(13%)
|
(15%)
|
|
251
|
(19%)
|
(24%)
|
|
|
||||||||
The
increase in Total profit from continuing operations allocated to
non-controlling interests in Q2 2023 was primarily driven by a
higher allocation of ViiV Healthcare profits of £127 million
(Q2 2022: £41 million). The year to date was impacted by lower
net profits in some of the Group’s other entities with
non-controlling interests with a stable allocation of ViiV
Healthcare profits of £267 million (2022: £268
million).
The Q2
2023 and year to date decreases in Adjusted profit from continuing
operations allocated to non-controlling interests reflected lower
profit allocations from ViiV Healthcare of £136 million in the
quarter (Q2 2022: £151 million) and year to date £256
million (2022: £264 million) and lower net profits in some of
the Group’s other entities with non-controlling
interests.
|
|
|
Q2 2023
|
|
Year to Date
|
||||
|
|
£p
|
AER
|
CER
|
|
£p
|
AER
|
CER
|
Earnings
per share
|
Total
|
40.1p
|
>100%
|
>100%
|
|
76.9p
|
40%
|
39%
|
Adjusted
|
38.8p
|
12%
|
16%
|
|
75.8p
|
13%
|
12%
|
|
|
||||||||
The
increase in Total EPS in the quarter primarily reflected
remeasurement credits for contingent consideration liabilities
compared to charges in Q2 2022 partly offset by higher
non-controlling interests. In the year to date there is an
unfavourable comparison due to upfront income received from the
settlement with Gilead in Q1 2022.
Adjusted
EPS in the quarter and YTD reflected strong growth in sales across
all product areas excluding COVID-19 solutions, a benefit from mix,
higher royalty income, lower finance costs and lower
non-controlling interests, partly offset by investment behind
launches in Specialty Medicines including HIV and Vaccines and
higher supply chain costs, freight and distribution costs. The year
to date growth was also impacted by increased legal charges
primarily relating to royalties. The decline in lower margin
COVID-19 solutions sales resulted in 1 percentage point impact on
Adjusted EPS growth in the quarter and 3 percentage points in the
year to date.
|
Currency impact on results
The
results for the year to date 2023 are based on average exchange
rates, principally £1/$1.23, £1/€1.14 and
£1/Yen 168. The results for Q2 2023 are based on average
exchange rates, principally £1/$1.25, £1/€1.15 and
£1/Yen 173. The period-end exchange rates were £1/$1.26,
£1/€1.17 and £1/Yen 183. Comparative exchange rates
are given on page 37.
In Q2
2023, turnover was up 4% at AER and 4% at CER. Total EPS from
continuing operations was 40.1p compared with 17.5p in Q2 2022.
Adjusted EPS was 38.8p compared with 34.7p in Q2 2022, up 12% at
AER and 16% at CER. The adverse currency impact primarily reflected
the weakening of emerging market currencies against Sterling partly
offset by weakening of Sterling against the US Dollar and the Euro.
Exchange gains or losses on the settlement of intercompany
transactions had a two percent adverse impact on the four
percentage points adverse currency impact on Adjusted
EPS.
In the
year to date 2023, turnover was stable at AER and down 2% at CER.
Total EPS from continuing operations was 76.9p compared with 54.8p
in YTD 2022. Adjusted EPS was 75.8p compared with 67.0p in YTD
2022, up 13% at AER and 12% at CER. The favourable currency impact
primarily reflected the weakening of Sterling against the US Dollar
and the Euro partly offset by the weakening of emerging market
currencies against Sterling. Exchange gains or losses on the
settlement of intercompany transactions had a one percent adverse
impact on the one percentage point favourable currency impact on
Adjusted EPS.
|
Cash generation
|
Cash flow
|
|||||
|
Q2 2023
£m
|
|
H1 2023
£m
|
|
H1
2022
£m
|
|
|
|
|
|
|
Cash
generated from operations attributable to continuing
operations
(£m)
|
1,620
|
|
1,907
|
|
3,936
|
Cash
generated from operations attributable to discontinued
operations
(£m)
|
-
|
|
-
|
|
918
|
|
|
|
|
|
|
Total
cash generated from operations (£m)
|
1,620
|
|
1,907
|
|
4,854
|
|
|
|
|
|
|
Total
net cash generated from operating activities (£m)
|
1,307
|
|
1,360
|
|
4,177
|
|
|
|
|
|
|
Free
cash inflow/(outflow) from continuing operations*
(£m)
|
348
|
|
(341)
|
|
1,741
|
Free
cash flow from continuing operations growth (%)
|
34%
|
|
<(100)%
|
|
>100%
|
Free
cash flow conversion from continuing operations* (%)
|
21%
|
|
-
|
|
79%
|
Total
net debt** (£m)
|
18,220
|
|
18,220
|
|
21,458
|
|
|
|
|
|
|
*
|
Free cash flow from continuing operations and free cash flow
conversion are defined on page 54. Free cash flow from continuing
operations is analysed on page 44.
|
**
|
Net debt is analysed on page 44.
|
Q2 2023
Cash
generated from operating activities from continuing operations for
the quarter was £1,620 million (Q2 2022: £1,584 million).
The increase primarily reflected favourable timing of profit share
payments for Xevudy and
timing of returns and rebates, partly offset by additional pension
contributions and an increase in trade receivables due to higher
sales.
Total
cash payments to Shionogi in relation to the ViiV Healthcare
contingent consideration liability in the quarter were £278
million (Q2 2022: £395 million), all of which was recognised
in cash flows from operating activities. These payments are
deductible for tax purposes.
Free
cash inflow was £348 million for the quarter (Q2 2022:
£264 million inflow). The increase primarily reflected
favourable timing of profit share payments for Xevudy and timing of returns and
rebates, partly offset by an increase in trade receivables due to
higher sales, additional pension contributions and higher dividend
payments to non-controlling interests.
H1 2023
Cash
generated from operating activities from continuing operations was
£1,907 million (H1 2022: £3,936 million). The decrease
primarily reflected an unfavourable comparison due to the upfront
income from the settlement with Gilead received in Q1 2022,
additional pension contributions, increase in trade receivables due
to higher sales, increase in seasonal inventory and lower payable
balances reflecting increased investment in 2022.
Total
cash payments to Shionogi in relation to the ViiV Healthcare
contingent consideration liability in the half year were £565
million (H1 2022: £603 million), all of which was recognised
in cash flows from operating activities. These payments are
deductible for tax purposes.
Free cash outflow was £341 million for the six months (H1
2022: £1,741 million inflow). The decrease primarily reflected
an unfavourable comparison due to the upfront income from the
settlement with Gilead received in Q1 2022, additional pension
contributions, increase in trade receivables due to higher sales,
increase in seasonal inventory, lower payable balances reflecting
increased investment in 2022 and higher dividend payments to
non-controlling interests.
|
Total Net debt
At 30
June 2023, net debt was £18,220 million, compared with
£17,197 million at 31 December 2022, comprising gross debt of
£21,474 million and cash and liquid investments of £3,254
million.
Net
debt increased by £1 billion primarily due to the net
acquisition cost of Bellus Health for £1.4 billion, dividends
paid to shareholders of £1.1 billion, and £0.3 billion
free cash outflow. This was partly offset by £0.8 billion
disposal of investments, £0.1 billion disposal of businesses,
£0.2 billion of income received from equity investments and
net favourable exchange impacts of £0.7 billion from the
translation of non-Sterling denominated debt and exchange on other
financing items.
At 30
June 2023, GSK had short-term borrowings (including overdrafts and
lease liabilities) repayable within 12 months of £5,921
million with loans of £2,286 million repayable in the
subsequent year.
|
Q2 2023 pipeline highlights (since 26
April 2023)
|
|
Medicine/vaccine
|
Trial (indication, presentation)
|
Event
|
Regulatory approvals or other regulatory action
|
Arexvy
|
RSV, older adults aged
60+ years
|
Regulatory approval
(US, EU)
|
Shingrix
|
Shingles, at-risk adults aged 18+ years
|
Regulatory approval (JP)
|
|
cabotegravir
|
HIV, pre-exposure prophylaxis, long-acting injectable and
tablets
|
Positive CHMP opinion (EU)
|
|
daprodustat
|
ASCEND-D (anaemia of chronic kidney disease on
dialysis)
|
Positive CHMP opinion (EU) refer to page 52
|
|
Regulatory submissions or acceptances
|
Menveo
|
Liquid formulation, meningitis ACWY
|
Regulatory acceptance (EU)
|
Jemperli
|
RUBY (1L mismatch repair deficient/microsatellite instability-high
(dMMR/MSI-H) endometrial cancer)
|
Regulatory acceptance (US)
|
|
Phase III data readouts or other significant events
|
Arexvy
|
RSV, older adults aged
60+ years
|
Positive phase III data (season two)
|
Arexvy
|
RSV, older adults aged
60+ years
|
US CDC ACIP recommendation
|
|
MenABCWY (gen 1)
vaccine candidate
|
Meningitis ABCWY
|
Phase III data presentation
|
|
Neisseria gonorrhoeae vaccine
candidate
|
Neisseria gonorrhoeae
|
US FDA Fast Track designation granted
|
|
GSK3858279 (anti-CCL17 antibody)
|
Osteoarthritis pain, diabetic peripheral neuropathic
pain
|
US FDA Fast Track designation granted
|
Anticipated news flow
|
Timing
|
Medicine/vaccine
|
Trial (indication, presentation)
|
Event
|
H2 2023
|
Arexvy
|
RSV, older adults aged
50-59 years
|
Phase III data readout
|
Arexvy
|
RSV, older adults aged
50-59 years
|
Regulatory submission
(US, EU, JP)
|
|
RSV older adult vaccine
candidate
|
RSV, older adults aged
60+ years
|
Regulatory decision (JP)
|
|
bepirovirsen
|
B-Together (hepatitis B virus)
|
Phase IIb data readout
|
|
gepotidacin
|
EAGLE-2/3 (uncomplicated urinary tract infection)
|
Regulatory submission
(US, EU)
|
|
cabotegravir
|
HIV, pre-exposure prophylaxis, long-acting injectable
|
Regulatory decision (EU)
|
|
Vocabria
|
HIV
|
Regulatory decision (CN)
|
|
Nucala
|
Chronic rhinosinusitis with nasal polyps
|
Regulatory submission
(CN, JP)
|
|
Blenrep
|
DREAMM-7 (2L+ multiple myeloma)
|
Phase III data readout
|
|
Blenrep
|
DREAMM-8 (2L+ multiple myeloma)
|
Phase III data readout
|
|
Jemperli
|
RUBY (1L dMMR/MSI-H endometrial cancer)
|
Regulatory decision (US)
|
|
momelotinib
|
MOMENTUM (myelofibrosis with anaemia)
|
Regulatory decision (US)
|
|
momelotinib
|
MOMENTUM (myelofibrosis with anaemia)
|
Regulatory submission (JP)
|
|
H1 2024
|
gepotidacin
|
EAGLE-1 (urogenital gonorrhoea)
|
Phase III data readout
|
MenABCWY (gen 2)
vaccine candidate
|
Meningitis ABCWY
|
Phase II data readout
|
|
MenABCWY (gen 1)
vaccine candidate
|
Meningitis ABCWY
|
Regulatory submission
(US, EU)
|
|
Blenrep
|
DREAMM-7 (2L+ multiple myeloma)
|
Regulatory submission
(US, EU)
|
|
Blenrep
|
DREAMM-8 (2L+ multiple myeloma)
|
Regulatory submission
(US, EU)
|
|
Jemperli
|
RUBY (1L dMMR/MSI-H endometrial cancer)
|
Regulatory decision (EU)
|
|
Jemperli
|
RUBY part 2 (1L endometrial cancer)
|
Phase III data readout
|
|
Jemperli
|
RUBY part 2 (1L endometrial cancer)
|
Regulatory submission
(US, EU)
|
|
momelotinib
|
MOMENTUM (myelofibrosis with anaemia)
|
Regulatory decision
(EU, JP)
|
|
Zejula
|
FIRST (1L maintenance ovarian cancer)
|
Phase III data readout
|
|
H2 2024
|
Arexvy
|
RSV, older adults aged
50-59 years
|
Regulatory decision
(US, EU, JP)
|
gepotidacin
|
EAGLE-2/3 (uncomplicated urinary tract infection)
|
Regulatory decision
(US, EU)
|
|
gepotidacin
|
EAGLE-1 (urogenital gonorrhoea)
|
Regulatory submission (US)
|
|
depemokimab
|
SWIFT-1/2 (severe asthma)
|
Phase III data readout
|
|
depemokimab
|
ANCHOR-1/2 (chronic rhinosinusitis with nasal polyps)
|
Phase III data readout
|
|
Nucala
|
Severe asthma
|
Regulatory decision (CN)
|
|
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)
|
|
cobolimab
|
COSTAR (non-small cell lung 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
|
Refer
to pages 45 to 52 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 2023 results. For more details on annual
updates, please see GSK’S ESG Performance Report 2022 at:
https://gsk.to/2022ESGPerf.
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 2023:
|
●
|
GSK
continues to support access to vaccines through Gavi, the Vaccine
Alliance. In July, Gavi announced the first countries to be
allocated doses of the RTS,S/AS01E vaccine against malaria, a
vaccine developed by GSK and partners for use in malaria endemic
countries. These nine new countries will start rolling out the
vaccine with Gavi support from early 2024, joining the three
countries (Ghana, Kenya and Malawi) involved in the Malaria Vaccine
Implementation Programme. The announcement marks an important step
towards reaching millions more children with this ground-breaking
vaccine.
|
|
|
●
|
In
2013, GSK and Save the Children formed an ambitious and strategic
global partnership using the companies’ combined expertise,
resources and influence to help save one million children's lives.
In June, the partnership reached a ten-year milestone and reported
progress reaching over 3.5 million children in 51 countries with
essential healthcare, training over 39,000 health workers and
immunising over 240,000 children under the age of
five.
|
|
|
●
|
Performance
metrics related to access are updated annually with details from
the most recent year on page 9 of GSK’s ESG Performance
Report 2022.
|
Global health and health
security
Commitment: develop novel products and technologies to treat
and prevent priority diseases, including pandemic
threats.
|
Progress since Q1 2023:
|
●
|
GSK is
committed to tackling tuberculosis, the world’s
second-leading cause of death by infectious diseases after
COVID-19. GSK’s early research, up to proof-of-concept (phase
IIb), led to the development of candidate vaccine M72/AS01E against
tuberculosis. GSK partnered with the Bill and Melinda Gates Medical
Research institute for further development. In June, Wellcome and
the Bill & Melinda Gates Foundation announced funding
(approximately $550 million) for a phase III trial of the M72/AS01E
candidate vaccine. If successful in late-stage clinical trials, it
will be the first new vaccine to help prevent pulmonary
tuberculosis in over a century.
|
|
|
●
|
GSK has
been working with partners since 1999 to tackle neglected tropical
diseases, including lymphatic filariasis (LF), a debilitating
disease caused by a parasite transmitted to humans through the
bites of mosquitoes. A key component in eliminating LF, is the use
of GSK’s albendazole to reduce the level of parasites in
infected people and break the cycle of transmission to endemic
countries. GSK provides albendazole to endemic countries, including
Bangladesh, through its donation programme. In June, Bangladesh,
via the WHO’s South-East Asia Regional Office, announced that
it has eliminated LF – a significant milestone in our joint
effort to get ahead of disease together.
|
|
|
●
|
Performance
metrics related to global health and health security are updated
annually with details from the most recent year on page 13 of
GSK’s ESG Performance Report 2022.
|
Environment
Commitment: committed to a net zero, nature-positive,
healthier planet with ambitious goals set for 2030 and
2045.
|
Progress since Q1 2023:
|
●
|
GSK is
dedicated to doing more to protect the environment and was selected
by the Science Based Target Network (SBTN) to be part of the first
group of companies preparing to set science-based targets for
nature, building on our existing nature targets. GSK will be using
their new guidance and methodologies to reduce our impacts on
nature, increase positive outcomes for people, and build business
resilience.
|
|
|
●
|
GSK remains resolutely focused on delivering on existing nature
targets while following new guidance and methodologies. GSK is
supporting key suppliers to reduce their impact on nature by
setting ambitious new standards for suppliers who provide materials
that are highly dependent on nature, like lactose, gelatine and
soy. The standards, developed in collaboration with third-party
experts, aim to support these suppliers to assess, improve, and
verify their approach to addressing a range of nature impacts
– and associated climate and social impacts – including
land-use, water stewardship and biodiversity. Meeting these
standards should have positive impacts for nature and people and
make our supply chains more resilient. More information can be
found at: https://gsk.to/sustainable.
|
|
|
●
|
Performance
metrics related to environment are updated annually with details
from the most recent year on page 16 of GSK’s ESG Performance
Report 2022
|
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.
|
Progress since Q1 2023:
|
●
|
GSK is committed to reducing health inequities and understands the
industry can do more by investing in local interventions to help
create healthier communities and sustain best practices from the
pandemic. In June, GSK announced the launch of the COiMMUNITY
Initiative to contribute to a more equitable and resilient public
health infrastructure and bolster existing partner efforts –
leading to more vaccinated adults. Through the initiative, grant
funding will be provided to support national, state, and local
non-profit organisations and community-based groups focused on
adult immunisation and health equity, increased information on
adult immunisation trends will be made available through enhanced
vaccine tracking capabilities and new resources will help implement
tangible solutions. More information can be found at
https://gsk.to/COiMMUNITY.
|
|
|
●
|
Performance
metrics related to diversity, equity and inclusion are updated
annually with details from the most recent year on page 23 of
GSK’s ESG Performance Report 2022.
|
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
details from the most recent year on page 26 of GSK’s ESG
Performance Report 2022.
|
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
details from the most recent year on page 30 of GSK’s ESG
Performance Report 2022.
|
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
|
86
|
88
|
2nd in
the pharmaceutical industry group; Assessment conducted annually,
current score based on 2022 submission
|
Access
to Medicines Index
|
4.23
|
4.06
|
Led the
bi-annual index since its inception in 2008; Updated bi-annually,
current results from Nov 2022
|
Antimicrobial
resistance benchmark
|
86%
|
84%
|
Led the
bi-annual benchmark since its inception in 2018; Current ranking
updated Nov 2021
|
CDP
Climate Change
|
A-
|
A-
|
Updated
annually, current scores updated Dec 2022 (for supplier engagement,
March 2023)
|
CDP
Water Security
|
B
|
B
|
|
CDP
Forests (palm oil)
|
A-
|
B
|
|
CDP
Forests (timber)
|
B
|
B
|
|
CDP
supplier engagement rating
|
Leader
|
Leader
|
|
Sustainalytics
|
18.6
|
18.8
|
2nd
percentile in pharma subindustry group; Lower score represents
lower risk. Current ranking updated Apr 2022
|
MSCI
|
AA
|
AA
|
Last
rating action date: Nov 2022
|
Moody’s
ESG solutions
|
61
|
61
|
2nd in
the pharmaceutical sector; Current score updated Sept
2021
|
ISS
Corporate Rating
|
B+
|
B+
|
Current
score updated June 2023
|
FTSE4Good
|
Member
|
Member
|
Member
since 2004
|
ShareAction’s
Workforce Disclosure Initiative
|
77%
|
75%
|
Current
score updated Feb 2023
|
Contents
|
Page
|
Q2 2023
pipeline highlights
|
12
|
ESG
|
14
|
Total
and Adjusted results
|
17
|
Income
statement
|
25
|
Statement
of comprehensive income
|
26
|
Balance
sheet
|
27
|
Statement
of changes in equity
|
28
|
Cash
flow statement
|
29
|
Sales
tables
|
30
|
Segment
information
|
33
|
Legal
matters
|
35
|
Returns
to shareholders
|
36
|
Additional
information
|
37
|
Net
assets
|
38
|
Reconciliation
of cash flow to movements in net debt
|
43
|
Net
debt analysis
|
44
|
Free
cash flow reconciliation
|
44
|
R&D
commentary
|
45
|
Principal
risks and uncertainties
|
53
|
Reporting
definitions
|
54
|
Guidance,
assumptions and cautionary statements
|
55
|
Directors’
responsibility statement
|
56
|
Independent
review report to GSK plc
|
57
|
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)
|
|
Frances
De Franco
|
+1 215
751 4855
|
(Philadelphia)
|
|
|
|
|
|
|
|
|
|
|
|
|
Registered in England & Wales:
No.
3888792
|
|||
|
|||
Registered Office:
980
Great West Road
Brentford,
Middlesex
TW8
9GS
|
Total and Adjusted
results
|
Total
reported results represent the Group’s overall
performance.
GSK
also uses a number of adjusted, non-IFRS, measures to report the
performance of its business. Adjusted 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.
Adjusted results are defined below and other non-IFRS measures are
defined on page 54.
GSK
believes that Adjusted 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.
Adjusted
results exclude the profits from discontinued operations from the
Consumer Healthcare business and the following items in relation to
our continuing 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
|
Costs
for all other ordinary course smaller scale restructuring and legal
charges and expenses from continuing operations are retained within
both Total and Adjusted results.
As
Adjusted 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 Adjusted earnings being
materially higher or lower than Total earnings. In particular, when
significant impairments, restructuring charges and legal costs are
excluded, Adjusted 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 Adjusted results, providing further information
on the key Adjusting items, are set out on pages 19, 20, 22 and
23.
GSK
provides earnings guidance to the investor community on the basis
of Adjusted 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 83% of the Total
earnings and 82% of the Adjusted earnings of ViiV Healthcare for
2022.
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 H1 2023 were
£565 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 71 and 72 of the Annual Report
2022.
|
Adjusting items
The
reconciliations between Total results and Adjusted results for Q2
2023 and Q2 2022 are set out below.
|
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
|
|
Adjusted
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 cost
|
(152)
|
|
|
|
|
|
1
|
|
|
|
(1)
|
|
(152)
|
Share
of after tax profit/(loss) of associates
and
joint venture
|
(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 from continuing
operations
|
1,745
|
|
144
|
|
3
|
|
36
|
|
(172)
|
|
(55)
|
|
1,701
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to non-controlling
interests from continuing operations
|
121
|
|
|
|
|
|
|
|
9
|
|
|
|
130
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to shareholders from
continuing operations
|
1,624
|
|
144
|
|
3
|
|
36
|
|
(181)
|
|
(55)
|
|
1,571
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,745
|
|
144
|
|
3
|
|
36
|
|
(172)
|
|
(55)
|
|
1,701
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share from continuing operations
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended 30 June 2022
|
|
Total
results
£m
|
|
Profit
from
discon-
tinued
operations
£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
|
|
Adjusted
results
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
6,929
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,929
|
Cost of
sales
|
(2,176)
|
|
|
|
166
|
|
|
|
21
|
|
10
|
|
9
|
|
(1,970)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
4,753
|
|
|
|
166
|
|
|
|
21
|
|
10
|
|
9
|
|
4,959
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administration
|
(2,066)
|
|
|
|
|
|
|
|
107
|
|
|
|
4
|
|
(1,955)
|
Research
and development
|
(1,242)
|
|
|
|
26
|
|
55
|
|
6
|
|
|
|
|
|
(1,155)
|
Royalty
income
|
159
|
|
|
|
|
|
|
|
|
|
|
|
|
|
159
|
Other
operating income/(expense)
|
(523)
|
|
|
|
|
|
|
|
|
|
675
|
|
(152)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
1,081
|
|
|
|
192
|
|
55
|
|
134
|
|
685
|
|
(139)
|
|
2,008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
finance cost
|
(183)
|
|
|
|
|
|
|
|
1
|
|
|
|
1
|
|
(181)
|
Share
of after tax losses of
associates
and joint ventures
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
896
|
|
|
|
192
|
|
55
|
|
135
|
|
685
|
|
(138)
|
|
1,825
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
(150)
|
|
|
|
(41)
|
|
(10)
|
|
(24)
|
|
(78)
|
|
26
|
|
(277)
|
Tax rate %
|
16.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from
continuing operations
|
746
|
|
|
|
151
|
|
45
|
|
111
|
|
607
|
|
(112)
|
|
1,548
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from
discontinued operations
|
229
|
|
((229)
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit after taxation for
the period
|
975
|
|
(229)
|
|
151
|
|
45
|
|
111
|
|
607
|
|
(112)
|
|
1,548
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to non-
controlling
interest from
continuing
operations
|
40
|
|
|
|
|
|
|
|
|
|
110
|
|
|
|
150
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to shareholders
from
continuing operations
|
706
|
|
|
|
151
|
|
45
|
|
111
|
|
497
|
|
(112)
|
|
1,398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to non-
controlling
interest from
discontinued
operations
|
97
|
|
(97)
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to
shareholders
from
discontinued
operations
|
132
|
|
(132)
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
975
|
|
(229)
|
|
151
|
|
45
|
|
111
|
|
607
|
|
(112)
|
|
1,548
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit attributable to
non-controlling interests
|
137
|
|
(97)
|
|
|
|
|
|
|
|
110
|
|
|
|
150
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit attributable to
shareholders
|
838
|
|
(132)
|
|
151
|
|
45
|
|
111
|
|
497
|
|
(112)
|
|
1,398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
975
|
|
(229)
|
|
151
|
|
45
|
|
111
|
|
607
|
|
(112)
|
|
1,548
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share from
continuing
operations
|
17.5p
|
|
|
|
3.8p
|
|
1.1p
|
|
2.8p
|
|
12.3p
|
|
(2.8)p
|
|
34.7p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share from
discontinued
operations
|
3.3p
|
|
(3.3)p
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total earnings per share
|
20.8p
|
|
(3.3)p
|
|
3.8p
|
|
1.1p
|
|
2.8p
|
|
12.3p
|
|
(2.8)p
|
|
34.7p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of
shares
(millions)
|
4,025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Major restructuring and integration
|
Total
Major restructuring charges from continuing operations incurred in
Q2 2023 were £46 million (Q2 2022: £134 million),
analysed as follows:
|
|
Q2 2023
|
|
Q2
2022
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
£m
|
|
Non-
cash
£m
|
|
Total
£m
|
|
Cash
£m
|
|
Non-
cash
£m
|
|
Total
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
Separation
Preparation restructuring
programme
|
25
|
|
4
|
|
29
|
|
28
|
|
105
|
|
133
|
Significant
acquisitions
|
15
|
|
1
|
|
16
|
|
-
|
|
-
|
|
-
|
Legacy
programmes
|
2
|
|
(1)
|
|
1
|
|
(1)
|
|
2
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
42
|
|
4
|
|
46
|
|
27
|
|
107
|
|
134
|
|
|
|
|
|
|
|
|
|
|
|
|
The
Separation Preparation programme incurred cash charges of £25
million primarily from the restructuring of some administrative
functions as well as Global Supply Chain and R&D.
|
The
benefit in Q2 2023 from restructuring programmes was £0.1
billion, primarily relating to the Separation Preparation
restructuring programme. The programme has delivered £1.0
billion of annual savings to date and targets to deliver £1.1
billion by 2023, with total costs estimated at £2.4 billion,
of which £1.6 billion is expected to be cash
costs.
Costs
of significant acquisitions relate to integration costs of Sierra
Oncology Inc. (Sierra) and Affinivax Inc. (Affinivax) which were
acquired in Q3 2022.
|
Transaction-related adjustments
Transaction-related
adjustments from continuing operations resulted in a net credit of
£189 million (Q2 2022: £685 million charge) all of which
related to accounting (credits)/charge 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 2023
£m
|
|
Q2
2022
£m
|
|
|
|
|
Contingent
consideration on former Shionogi-ViiV Healthcare joint
Venture
(including
Shionogi preferential dividends)
|
(9)
|
|
585
|
ViiV
Healthcare put options and Pfizer preferential
dividends
|
(138)
|
|
118
|
Contingent
consideration on former Novartis Vaccines business
|
(53)
|
|
(4)
|
Contingent
consideration on acquisition of Affinivax
|
11
|
|
-
|
Other
adjustments
|
-
|
|
(14)
|
|
|
|
|
Total
transaction-related charges
|
(189)
|
|
685
|
|
|
|
|
The £9 million credit relating to the contingent consideration
for the former Shionogi-ViiV Healthcare joint venture represented a
reduction in the valuation of the contingent consideration due to
Shionogi, as a result of a credit of £106 million primarily
from exchange rates as well as sales forecasts, partly offset by
the unwind of the discount for £97 million. The £138
million credit relating to the ViiV Healthcare put option and
Pfizer preferential dividends represented a reduction in the
valuation of the put option primarily as a result of updated
exchange rates as well as updated sales forecasts and lower cash
balances.
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
18.
The £53 million credit relating to the contingent
consideration on the former Novartis Vaccines business primarily
relates to changes to future sales forecasts.
Divestments, significant legal charges, and other
items
Divestments,
significant legal charges, and other items primarily included
dividend and distribution income received from investments
including £35 million fair value gain on the investment in
Haleon plc (Haleon) and £30 million dividend income in the
quarter. 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 quarter primarily reflected
increased legal charges for Zantac of which the vast majority
relate to the prospective legal costs for the defence of the
litigation.
|
The
reconciliations between Total results and Adjusted results for H1
2023 and H1 2022 are set out below.
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
|
|
Adjusted
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 cost
|
(326)
|
|
|
|
|
|
1
|
|
|
|
3
|
|
(322)
|
Share
of after tax profit/(loss) of associates
and
joint venture
|
(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 from continuing
operations
|
3,376
|
|
277
|
|
15
|
|
122
|
|
(428)
|
|
(44)
|
|
3,318
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to non-controlling
interests from continuing operations
|
262
|
|
|
|
|
|
|
|
(11)
|
|
|
|
251
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to shareholders from
continuing operations
|
3,114
|
|
277
|
|
15
|
|
122
|
|
(417)
|
|
(44)
|
|
3,067
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,376
|
|
277
|
|
15
|
|
122
|
|
(428)
|
|
(44)
|
|
3,318
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share from continuing operations
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended 30 June 2022
|
|
Total
results
£m
|
|
Profit from
discon-
tinued
operations
£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
|
|
Adjusted
results
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
14,119
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,119
|
Cost of
sales
|
(4,893)
|
|
|
|
329
|
|
|
|
36
|
|
22
|
|
9
|
|
(4,497)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
9,226
|
|
|
|
329
|
|
|
|
36
|
|
22
|
|
9
|
|
9,622
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administration
|
(3,878)
|
|
|
|
|
|
|
|
135
|
|
|
|
18
|
|
(3,725)
|
Research
and development
|
(2,345)
|
|
|
|
49
|
|
39
|
|
14
|
|
|
|
|
|
(2,243)
|
Royalty
income
|
297
|
|
|
|
|
|
|
|
|
|
|
|
|
|
297
|
Other
operating
income/(expense)
|
74
|
|
|
|
|
|
|
|
|
|
1,010
|
|
(1,084)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
3,374
|
|
|
|
378
|
|
39
|
|
185
|
|
1,032
|
|
(1,057)
|
|
3,951
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
finance cost
|
(381)
|
|
|
|
|
|
|
|
1
|
|
|
|
1
|
|
(379)
|
Share
of after tax losses of
associates
and joint ventures
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
2,990
|
|
|
|
378
|
|
39
|
|
186
|
|
1,032
|
|
(1,056)
|
|
3,569
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
(473)
|
|
|
|
(80)
|
|
(7)
|
|
(36)
|
|
(131)
|
|
163
|
|
(564)
|
Tax rate %
|
15.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from
continuing operations
|
2,517
|
|
|
|
298
|
|
32
|
|
150
|
|
901
|
|
(893)
|
|
3,005
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from
discontinued operations
|
625
|
|
(625)
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit after taxation
for the period
|
3,142
|
|
(625)
|
|
298
|
|
32
|
|
150
|
|
901
|
|
(893)
|
|
3,005
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to non-
controlling
interest from
continuing
operations
|
315
|
|
|
|
|
|
|
|
|
|
(4)
|
|
|
|
311
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to
shareholders
from
continuing
operations
|
2,202
|
|
|
|
298
|
|
32
|
|
150
|
|
905
|
|
(893)
|
|
2,694
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to non-
controlling
interest from
discontinued
operations
|
187
|
|
(187)
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to shareholders
from
discontinued operations
|
438
|
|
(438)
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,142
|
|
(625)
|
|
298
|
|
32
|
|
150
|
|
901
|
|
(893)
|
|
3,005
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit attributable to
non-controlling interests
|
502
|
|
(187)
|
|
|
|
|
|
|
|
(4)
|
|
|
|
311
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit attributable to
shareholders
|
2,640
|
|
(438)
|
|
298
|
|
32
|
|
150
|
|
905
|
|
(893)
|
|
2,694
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,142
|
|
(625)
|
|
298
|
|
32
|
|
150
|
|
901
|
|
(893)
|
|
3,005
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share from
continuing
operations
|
54.8p
|
|
|
|
7.4p
|
|
0.8p
|
|
3.7p
|
|
22.5p
|
|
(22.2)p
|
|
67.0p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share from
discontinued
operations
|
10.9p
|
|
(10.9)p
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total earnings per share
|
65.7p
|
|
(10.9)p
|
|
7.4p
|
|
0.8p
|
|
3.7p
|
|
22.5p
|
|
(22.2)p
|
|
67.0p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of
shares
(millions)
|
4,021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Major restructuring and integration
|
Total
Major restructuring charges from continuing operations incurred in
H1 2023 were £154 million (H1 2022: £185 million),
analysed as follows:
|
|
H1 2023
|
|
H1
2022
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
£m
|
|
Non-
cash
£m
|
|
Total
£m
|
|
Cash
£m
|
|
Non-
cash
£m
|
|
Total
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
Separation
Preparation restructuring
programme
|
62
|
|
51
|
|
113
|
|
39
|
|
142
|
|
181
|
Significant
acquisitions
|
36
|
|
2
|
|
38
|
|
-
|
|
-
|
|
-
|
Legacy
programmes
|
2
|
|
1
|
|
3
|
|
1
|
|
3
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
100
|
|
54
|
|
154
|
|
40
|
|
145
|
|
185
|
|
|
|
|
|
|
|
|
|
|
|
|
The
Separation Preparation programme incurred cash charges of £62
million primarily from the restructuring of some administrative
functions as well as Global Supply Chain and R&D. The non-cash
charges of £51 million primarily reflected the write-down of
assets in administrative as well as manufacturing
locations.
|
The
benefit in H1 2023 from restructuring programmes was £0.2
billion, primarily relating to the Separation Preparation
restructuring programme. The programme has delivered £1.0
billion of annual savings to date and targets to deliver £1.1
billion by 2023, with total costs estimated at £2.4 billion,
of which £1.6 billion is expected to be cash
costs.
Costs
of significant acquisitions relate to integration costs of Sierra
and Affinivax which were acquired in Q3 2022.
|
Transaction-related adjustments
Transaction-related
adjustments from continuing operations resulted in a net credit of
£460 million (H1 2022: £1,032 million charge) all of
which related to accounting (credits)/charge 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 2023
£m
|
|
H1
2022
£m
|
|
|
|
|
Contingent
consideration on former Shionogi-ViiV Healthcare joint
Venture
(including
Shionogi preferential dividends)
|
(73)
|
|
841
|
ViiV
Healthcare put options and Pfizer preferential
dividends
|
(243)
|
|
150
|
Contingent
consideration on former Novartis Vaccines business
|
(122)
|
|
40
|
Contingent
consideration on acquisition of Affinivax
|
(22)
|
|
-
|
Other
adjustments
|
-
|
|
1
|
|
|
|
|
Total
transaction-related charges
|
(460)
|
|
1,032
|
|
|
|
|
The £73 million credit relating to the contingent
consideration for the former Shionogi-ViiV Healthcare joint venture
represented a reduction in the valuation of the contingent
consideration due to Shionogi, as a result of a credit of £278
million primarily from exchange rates as well as sales forecasts,
partly offset by the unwind of the discount for £205 million.
The £243 million credit relating to the ViiV Healthcare put
option and Pfizer preferential dividends represented a reduction in
the valuation of the put option primarily as a result of updated
exchange rates as well as updated sales forecasts and lower cash
balances.
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
18.
The £122 million credit relating to the contingent
consideration on the former Novartis Vaccines business primarily
relates to changes to future sales forecasts.
Divestments, significant legal charges, and other
items
Divestments, significant legal charges, and other items primarily
included dividend and distribution income received from investments
including £30 million dividend from the retained investment in
Haleon which was partly offset by a £29 million fair value
loss in H1 2023. Significant legal charges in the year to date
primarily reflected increased legal charges for Zantac of which the vast majority relate to the
prospective legal costs for the defence of the
litigation.
|
Financial
information
|
Income
statements
|
|
Q2 2023
£m
|
|
Q2
2022
£m
|
|
H1 2023
£m
|
|
H1
2022
£m
|
|
|
|
|
|
|
|
|
TURNOVER |
7,178
|
|
6,929
|
|
14,129
|
|
14,119
|
|
|
|
|
|
|
|
|
Cost of
sales
|
(1,932)
|
|
(2,176)
|
|
(3,875)
|
|
(4,893)
|
|
|
|
|
|
|
|
|
Gross
profit
|
5,246
|
|
4,753
|
|
10,254
|
|
9,226
|
|
|
|
|
|
|
|
|
Selling,
general and administration
|
(2,268)
|
|
(2,066)
|
|
(4,411)
|
|
(3,878)
|
Research
and development
|
(1,341)
|
|
(1,242)
|
|
(2,601)
|
|
(2,345)
|
Royalty income
|
226
|
|
159
|
|
406
|
|
297
|
Other
operating income/(expense)
|
278
|
|
(523)
|
|
575
|
|
74
|
|
|
|
|
|
|
|
|
OPERATING PROFIT
|
2,141
|
|
1,081
|
|
4,223
|
|
3,374
|
|
|
|
|
|
|
|
|
Finance
income
|
33
|
|
21
|
|
62
|
|
28
|
Finance
expense
|
(185)
|
|
(204)
|
|
(388)
|
|
(409)
|
Share
of after tax profit/(loss) of associates and joint
ventures
|
(2)
|
|
(2)
|
|
(4)
|
|
(3)
|
Profit/(loss)
on disposal of interests in associates
|
-
|
|
-
|
|
1
|
|
-
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAXATION
|
1,987
|
|
896
|
|
3,894
|
|
2,990
|
|
|
|
|
|
|
|
|
Taxation
|
(242)
|
|
(150)
|
|
(518)
|
|
(473)
|
Tax rate %
|
12.2%
|
|
16.7%
|
|
13.3%
|
|
15.8%
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAXATION FROM CONTINUING OPERATIONS
|
1,745
|
|
746
|
|
3,376
|
|
2,517
|
|
|
|
|
|
|
|
|
Profit
after taxation from discontinued operations
and
other gains from the demerger
|
-
|
|
229
|
|
-
|
|
625
|
PROFIT AFTER TAXATION FROM DISCONTINUED OPERATIONS
|
-
|
|
229
|
|
-
|
|
625
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAXATION FOR THE PERIOD
|
1,745
|
|
975
|
|
3,376
|
|
3,142
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling interests from
continuing
operations
|
121
|
|
40
|
|
262
|
|
315
|
|
|
|
|
|
|
|
|
Profit
attributable to shareholders from continuing
operations
|
1,624
|
|
706
|
|
3,114
|
|
2,202
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling interests from
discontinued
operations
|
-
|
|
97
|
|
-
|
|
187
|
|
|
|
|
|
|
|
|
Profit
attributable to shareholders from discontinued
operations
|
-
|
|
132
|
|
-
|
|
438
|
|
|
|
|
|
|
|
|
|
1,745
|
|
975
|
|
3,376
|
|
3,142
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling interests
|
121
|
|
137
|
|
262
|
|
502
|
Profit
attributable to shareholders
|
1,624
|
|
838
|
|
3,114
|
|
2,640
|
|
|
|
|
|
|
|
|
|
1,745
|
|
975
|
|
3,376
|
|
3,142
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE FROM CONTINUING OPERATIONS
|
40.1p
|
|
17.5p
|
|
76.9p
|
|
54.8p
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE FROM DISCONTINUED OPERATIONS
|
-
|
|
3.3p
|
|
-
|
|
10.9p
|
|
|
|
|
|
|
|
|
TOTAL EARNINGS PER SHARE
|
40.1p
|
|
20.8p
|
|
76.9p
|
|
65.7p
|
|
|
|
|
|
|
|
|
Diluted
earnings per share from continuing operations
|
39.7p
|
|
17.4p
|
|
76.2p
|
|
54.3p
|
|
|
|
|
|
|
|
|
Diluted
earnings per share from discontinued
operations
|
-
|
|
3.2p
|
|
-
|
|
10.7p
|
|
|
|
|
|
|
|
|
Total
diluted earnings per share
|
39.7p
|
|
20.6p
|
|
76.2p
|
|
65.0p
|
|
|
|
|
|
|
|
|
Statement of comprehensive
income
|
|
Q2 2023
£m
|
|
Q2
2022
£m
|
|
H1 2023
£m
|
|
H1
2022
£m
|
|
|
|
|
|
|
|
|
Total
profit for the period
|
1,745
|
|
975
|
|
3,376
|
|
3,142
|
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently to continuing
operations income statement:
|
|
|
|
|
|
|
|
Exchange
movements on overseas net assets and
net
investment hedges
|
(80)
|
|
(179)
|
|
7
|
|
(198)
|
Reclassification
of exchange movements on liquidation
or
disposal of overseas subsidiaries and associates
|
(10)
|
|
9
|
|
(13)
|
|
9
|
Fair
value movements on cash flow hedges
|
1
|
|
-
|
|
1
|
|
2
|
Deferred
tax on fair value movements on cash flow
hedges
|
(1)
|
|
-
|
|
(1)
|
|
-
|
Reclassification
of cash flow hedges to income
statement
|
2
|
|
14
|
|
3
|
|
13
|
|
|
|
|
|
|
|
|
|
(88)
|
|
(156)
|
|
(3)
|
|
(174)
|
|
|
|
|
|
|
|
|
Items that will not be reclassified to continuing operations income
statement:
|
|
|
|
|
|
|
|
Exchange
movements on overseas net assets of
non-controlling
interests
|
(8)
|
|
(3)
|
|
(22)
|
|
-
|
Fair
value movements on equity investments
|
51
|
|
(81)
|
|
(117)
|
|
(624)
|
Tax on
fair value movements on equity investments
|
(5)
|
|
10
|
|
17
|
|
57
|
Fair
value movements on cash flow hedges
|
(34)
|
|
-
|
|
(34)
|
|
-
|
Remeasurement
gains/(losses) on defined benefit plans
|
(300)
|
|
200
|
|
50
|
|
513
|
Tax on
remeasurement losses/(gains) on defined
benefit
plans
|
79
|
|
(53)
|
|
(8)
|
|
(126)
|
|
|
|
|
|
|
|
|
|
(217)
|
|
73
|
|
(114)
|
|
(180)
|
|
|
|
|
|
|
|
|
Other
comprehensive expense for the period from
continuing
operations
|
(305)
|
|
(83)
|
|
(117)
|
|
(354)
|
|
|
|
|
|
|
|
|
Other
comprehensive income for the period from
discontinued
operations
|
-
|
|
493
|
|
-
|
|
928
|
|
|
|
|
|
|
|
|
Total
comprehensive income for the period
|
1,440
|
|
1,385
|
|
3,259
|
|
3,716
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income for the period attributable
to:
|
|
|
|
|
|
|
|
Shareholders
|
1,327
|
|
1,277
|
|
3,019
|
|
3,239
|
Non-controlling
interests
|
113
|
|
108
|
|
240
|
|
477
|
|
|
|
|
|
|
|
|
|
1,440
|
|
1,385
|
|
3,259
|
|
3,716
|
|
|
|
|
|
|
|
|
Balance
sheet
|
|
30 June 2023
£m
|
|
31
December 2022
£m
|
ASSETS
|
|
|
|
Non-current assets
|
|
|
|
Property,
plant and equipment
|
8,661
|
|
8,933
|
Right
of use assets
|
654
|
|
687
|
Goodwill
|
6,716
|
|
7,046
|
Other
intangible assets
|
15,531
|
|
14,318
|
Investments
in associates and joint ventures
|
64
|
|
74
|
Other
investments
|
1,286
|
|
1,467
|
Deferred
tax assets
|
5,799
|
|
5,658
|
Other
non-current assets
|
1,402
|
|
1,194
|
|
|
|
|
Total non-current assets
|
40,113
|
|
39,377
|
|
|
|
|
Current assets
|
|
|
|
Inventories
|
5,512
|
|
5,146
|
Current
tax recoverable
|
319
|
|
405
|
Trade
and other receivables
|
6,776
|
|
7,053
|
Derivative
financial instruments
|
164
|
|
190
|
Current
equity investments
|
3,250
|
|
4,087
|
Liquid
investments
|
114
|
|
67
|
Cash
and cash equivalents
|
3,140
|
|
3,723
|
Assets
held for sale
|
73
|
|
98
|
|
|
|
|
Total current assets
|
19,348
|
|
20,769
|
|
|
|
|
TOTAL ASSETS
|
59,461
|
|
60,146
|
|
|
|
|
LIABILITIES
|
|
|
|
Current liabilities
|
|
|
|
Short-term
borrowings
|
(5,921)
|
|
(3,952)
|
Contingent
consideration liabilities
|
(947)
|
|
(1,289)
|
Trade
and other payables
|
(13,951)
|
|
(16,263)
|
Derivative
financial instruments
|
(136)
|
|
(183)
|
Current
tax payable
|
(544)
|
|
(471)
|
Short-term
provisions
|
(609)
|
|
(652)
|
|
|
|
|
Total current liabilities
|
(22,108)
|
|
(22,810)
|
|
|
|
|
Non-current liabilities
|
|
|
|
Long-term
borrowings
|
(15,553)
|
|
(17,035)
|
Corporation
tax payable
|
(76)
|
|
(127)
|
Deferred
tax liabilities
|
(500)
|
|
(289)
|
Pensions
and other post-employment benefits
|
(2,337)
|
|
(2,579)
|
Other
provisions
|
(544)
|
|
(532)
|
Contingent
consideration liabilities
|
(5,280)
|
|
(5,779)
|
Other
non-current liabilities
|
(904)
|
|
(899)
|
|
|
|
|
Total non-current liabilities
|
(25,194)
|
|
(27,240)
|
|
|
|
|
TOTAL LIABILITIES
|
(47,302)
|
|
(50,050)
|
|
|
|
|
NET ASSETS
|
12,159
|
|
10,096
|
|
|
|
|
EQUITY
|
|
|
|
Share
capital
|
1,348
|
|
1,347
|
Share
premium account
|
3,450
|
|
3,440
|
Retained
earnings
|
6,418
|
|
4,363
|
Other
reserves
|
1,475
|
|
1,448
|
|
|
|
|
Shareholders’ equity
|
12,691
|
|
10,598
|
|
|
|
|
Non-controlling
interests
|
(532)
|
|
(502)
|
|
|
|
|
TOTAL EQUITY
|
12,159
|
|
10,096
|
|
|
|
|
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 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
profit/(loss) on disposal of equity
investments
|
|
|
|
|
2
|
|
(2)
|
|
-
|
|
|
|
-
|
Shares
issued
|
1
|
|
8
|
|
|
|
|
|
9
|
|
|
|
9
|
Write-down
on 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 2022
|
1,347
|
|
3,301
|
|
7,944
|
|
2,463
|
|
15,055
|
|
6,287
|
|
21,342
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
for the period
|
|
|
|
|
2,640
|
|
|
|
2,640
|
|
502
|
|
3,142
|
Other
comprehensive
income/(expense)
for the period
|
|
|
|
|
1,010
|
|
(411)
|
|
599
|
|
(25)
|
|
574
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income/(expense)
for
the period
|
|
|
|
|
3,650
|
|
(411)
|
|
3,239
|
|
477
|
|
3,716
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
to non-controlling interests
|
|
|
|
|
|
|
|
|
|
|
(506)
|
|
(506)
|
Contributions
from non-controlling
interests
|
|
|
|
|
|
|
|
|
|
|
8
|
|
8
|
Dividends
to shareholders
|
|
|
|
|
(2,108)
|
|
|
|
(2,108)
|
|
|
|
(2,108)
|
Realised
after tax losses on disposal
or
liquidation of equity investments
|
|
|
|
|
(23)
|
|
23
|
|
-
|
|
|
|
-
|
Shares
issued
|
|
|
20
|
|
|
|
|
|
20
|
|
|
|
20
|
Write-down
on shares held by ESOP
Trusts
|
|
|
|
|
(510)
|
|
510
|
|
-
|
|
|
|
-
|
Shares
acquired by ESOP Trusts
|
|
|
118
|
|
704
|
|
(822)
|
|
-
|
|
|
|
-
|
Share
of associates and joint ventures
realised
profits on disposal of equity
investments
|
|
|
|
|
(1)
|
|
1
|
|
-
|
|
|
|
-
|
Share-based
incentive plans
|
|
|
|
|
168
|
|
|
|
168
|
|
|
|
168
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30
June 2022
|
1,347
|
|
3,439
|
|
9,824
|
|
1,764
|
|
16,374
|
|
6,266
|
|
22,640
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow statement six months ended 30 June
2023
|
|
H1 2023
£m
|
|
H1
2022
£m
|
|
|
|
|
Profit after tax from continuing operations
|
3,376
|
|
2,517
|
Tax on
profits
|
518
|
|
473
|
Share
of after tax loss/(profit) of associates and joint
ventures
|
4
|
|
3
|
(Profit)/loss
on disposal of interest in associates and joint
ventures
|
(1)
|
|
-
|
Net
finance expense
|
326
|
|
381
|
Depreciation,
amortisation and other adjusting items
|
1,092
|
|
1,335
|
Increase
in working capital
|
(1,237)
|
|
(198)
|
Contingent
consideration paid
|
(575)
|
|
(542)
|
Decrease
in other net liabilities (excluding contingent consideration
paid)
|
(1,596)
|
|
(33)
|
|
|
|
|
Cash generated from operations attributable to continuing
operations
|
1,907
|
|
3,936
|
Taxation
paid
|
(547)
|
|
(534)
|
|
|
|
|
Net cash inflow/(outflow) from continuing operating
activities
|
1,360
|
|
3,402
|
Cash
generated from operations attributable to discontinued
operations
|
-
|
|
918
|
Taxation
paid from discontinued operations
|
-
|
|
(143)
|
Net operating cash flows attributable to discontinued
operations
|
-
|
|
775
|
|
|
|
|
Total net cash inflows/(outflows) from operating
activities
|
1,360
|
|
4,177
|
|
|
|
|
Cash flow from investing activities
|
|
|
|
Purchase
of property, plant and equipment
|
(529)
|
|
(430)
|
Proceeds
from sale of property, plant and equipment
|
10
|
|
6
|
Purchase
of intangible assets
|
(535)
|
|
(597)
|
Proceeds
from sale of intangible assets
|
12
|
|
13
|
Purchase
of equity investments
|
(59)
|
|
(59)
|
Proceeds
from sale of equity investments
|
809
|
|
-
|
Share
transactions with minority shareholders
|
-
|
|
1
|
Purchase
of businesses, net of cash acquired
|
(1,399)
|
|
-
|
Contingent
consideration paid
|
(4)
|
|
(73)
|
Disposal
of businesses
|
58
|
|
(12)
|
Interest
received
|
62
|
|
26
|
Proceeds
from disposal of associates and joint ventures
|
1
|
|
-
|
Dividend
and distributions from investments
|
201
|
|
-
|
Dividends
from associates and joint ventures
|
1
|
|
-
|
|
|
|
|
Net cash inflow/(outflow) from continuing investing
activities
|
(1,372)
|
|
(1,125)
|
Net
investing cash flows attributable to discontinued
operations
|
-
|
|
(3,013)
|
|
|
|
|
Total net cash inflow/(outflow) from investing
activities
|
(1,372)
|
|
(4,138)
|
|
|
|
|
Cash flow from financing activities
|
|
|
|
Issue
of share capital
|
9
|
|
20
|
Shares
acquired by ESOP trust
|
-
|
|
(3)
|
Decrease
in long-term loans
|
(150)
|
|
(3)
|
Repayment
of short-term loans(1)
|
(653)
|
|
(2,645)
|
Net
increase/(repayment) of short-term loans(1)
|
2,247
|
|
(417)
|
Repayment
of lease liabilities
|
(94)
|
|
(99)
|
Interest
paid
|
(448)
|
|
(437)
|
Dividends
paid to shareholders
|
(1,112)
|
|
(2,108)
|
Distribution
to non-controlling interests
|
(277)
|
|
(177)
|
Contributions
from non-controlling interests
|
7
|
|
8
|
Other
financing items
|
184
|
|
264
|
|
|
|
|
Net cash inflow/(outflow) from continuing financing
activities
|
(287)
|
|
(5,597)
|
Net
financing cash flows attributable to discontinued
operations
|
-
|
|
9,084
|
|
|
|
|
Total net cash inflow/(outflow) from financing
activities
|
(287)
|
|
3,487
|
|
|
|
|
Increase/(decrease) in cash and bank overdrafts in the
period
|
(299)
|
|
3,526
|
|
|
|
|
Cash
and bank overdrafts at beginning of the period
|
3,425
|
|
3,817
|
Exchange
adjustments
|
(88)
|
|
83
|
Increase/(decrease)
in cash and bank overdrafts
|
(299)
|
|
3,526
|
|
|
|
|
Cash and bank overdrafts at end of the period
|
3,038
|
|
7,426
|
|
|
|
|
Cash
and bank overdrafts at end of the period comprise:
|
|
|
|
Cash
and cash equivalents
|
3,140
|
|
6,465
|
Cash
and cash equivalents reported in assets held for
sale/distribution
|
-
|
|
1,421
|
Overdrafts
|
(102)
|
|
(460)
|
|
|
|
|
|
3,038
|
|
7,426
|
(1)
|
Amended to reflect the gross cashflows with no impact on overall
financing cashflows.
|
Vaccines turnover – three
months ended 30 June 2023
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
||||||||||||||||
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
||||||||
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shingles
|
880
|
|
20
|
|
20
|
|
473
|
|
(9)
|
|
(10)
|
|
243
|
|
61
|
|
58
|
|
164
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shingrix
|
880
|
|
20
|
|
20
|
|
473
|
|
(9)
|
|
(10)
|
|
243
|
|
61
|
|
58
|
|
164
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meningitis
|
266
|
|
13
|
|
13
|
|
120
|
|
-
|
|
(2)
|
|
105
|
|
21
|
|
18
|
|
41
|
|
46
|
|
61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bexsero
|
194
|
|
18
|
|
18
|
|
69
|
|
6
|
|
5
|
|
102
|
|
26
|
|
22
|
|
23
|
|
21
|
|
42
|
Menveo
|
66
|
|
(4)
|
|
(4)
|
|
51
|
|
(7)
|
|
(9)
|
|
2
|
|
(60)
|
|
(40)
|
|
13
|
|
44
|
|
44
|
Other
|
6
|
|
>100
|
|
>100
|
|
-
|
|
-
|
|
-
|
|
1
|
|
-
|
|
-
|
|
5
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Influenza
|
23
|
|
(28)
|
|
(28)
|
|
-
|
|
>(100)
|
|
>(100)
|
|
-
|
|
-
|
|
-
|
|
23
|
|
(26)
|
|
(26)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fluarix, FluLaval
|
23
|
|
(28)
|
|
(28)
|
|
-
|
|
>(100)
|
|
>(100)
|
|
-
|
|
-
|
|
-
|
|
23
|
|
(26)
|
|
(26)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Established Vaccines
|
812
|
|
13
|
|
13
|
|
309
|
|
20
|
|
20
|
|
189
|
|
7
|
|
5
|
|
314
|
|
11
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Infanrix, Pediarix
|
85
|
|
(29)
|
|
(27)
|
|
34
|
|
(33)
|
|
(29)
|
|
20
|
|
(35)
|
|
(39)
|
|
31
|
|
(18)
|
|
(13)
|
Boostrix
|
164
|
|
4
|
|
2
|
|
101
|
|
6
|
|
4
|
|
32
|
|
(16)
|
|
(18)
|
|
31
|
|
24
|
|
24
|
Hepatitis
|
158
|
|
(1)
|
|
(2)
|
|
83
|
|
(15)
|
|
(15)
|
|
46
|
|
18
|
|
15
|
|
29
|
|
32
|
|
27
|
Rotarix
|
184
|
|
53
|
|
53
|
|
78
|
|
>100
|
|
>100
|
|
28
|
|
(3)
|
|
(7)
|
|
78
|
|
1
|
|
4
|
Synflorix
|
76
|
|
(10)
|
|
(11)
|
|
-
|
|
-
|
|
-
|
|
11
|
|
10
|
|
10
|
|
65
|
|
(12)
|
|
(14)
|
Priorix, Priorix Tetra,
Varilrix
|
54
|
|
35
|
|
32
|
|
5
|
|
-
|
|
-
|
|
30
|
|
30
|
|
39
|
|
19
|
|
12
|
|
-
|
Cervarix
|
52
|
|
>100
|
|
>100
|
|
-
|
|
-
|
|
-
|
|
19
|
|
>100
|
|
>100
|
|
33
|
|
83
|
|
89
|
Other
|
39
|
|
>100
|
|
>100
|
|
8
|
|
>100
|
|
>100
|
|
3
|
|
50
|
|
(100)
|
|
28
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vaccines excluding
COVID-19 solutions
|
1,981
|
|
16
|
|
15
|
|
902
|
|
1
|
|
-
|
|
537
|
|
30
|
|
27
|
|
542
|
|
34
|
|
37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pandemic vaccines
|
41
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
22
|
|
-
|
|
-
|
|
19
|
|
-
|
|
-
|
Pandemic
adjuvant
|
41
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
22
|
|
-
|
|
-
|
|
19
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vaccines
|
2,022
|
|
18
|
|
18
|
|
902
|
|
1
|
|
-
|
|
559
|
|
35
|
|
33
|
|
561
|
|
39
|
|
41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vaccines turnover – Six months
ended 30 June 2023
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
||||||||||||||||
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
||||||||
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shingles
|
1,713
|
|
20
|
|
16
|
|
981
|
|
(3)
|
|
(7)
|
|
457
|
|
47
|
|
42
|
|
275
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shingrix
|
1,713
|
|
20
|
|
16
|
|
981
|
|
(3)
|
|
(7)
|
|
457
|
|
47
|
|
42
|
|
275
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meningitis
|
546
|
|
22
|
|
19
|
|
239
|
|
9
|
|
4
|
|
220
|
|
29
|
|
25
|
|
87
|
|
50
|
|
55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bexsero
|
412
|
|
26
|
|
22
|
|
143
|
|
9
|
|
4
|
|
212
|
|
32
|
|
28
|
|
57
|
|
54
|
|
59
|
Menveo
|
125
|
|
13
|
|
9
|
|
96
|
|
9
|
|
3
|
|
6
|
|
(25)
|
|
(25)
|
|
23
|
|
53
|
|
60
|
Other
|
9
|
|
13
|
|
13
|
|
-
|
|
-
|
|
-
|
|
2
|
|
-
|
|
-
|
|
7
|
|
17
|
|
17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Influenza
|
35
|
|
(30)
|
|
(28)
|
|
1
|
|
(50)
|
|
(50)
|
|
-
|
|
-
|
|
-
|
|
34
|
|
(29)
|
|
(27)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fluarix, FluLaval
|
35
|
|
(30)
|
|
(28)
|
|
1
|
|
(50)
|
|
(50)
|
|
-
|
|
-
|
|
-
|
|
34
|
|
(29)
|
|
(27)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Established Vaccines
|
1,627
|
|
12
|
|
8
|
|
662
|
|
18
|
|
13
|
|
382
|
|
12
|
|
8
|
|
583
|
|
5
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Infanrix, Pediarix
|
262
|
|
(11)
|
|
(14)
|
|
142
|
|
(13)
|
|
(17)
|
|
53
|
|
(12)
|
|
(13)
|
|
67
|
|
(7)
|
|
(7)
|
Boostrix
|
303
|
|
7
|
|
2
|
|
193
|
|
17
|
|
11
|
|
63
|
|
(11)
|
|
(14)
|
|
47
|
|
(2)
|
|
(2)
|
Hepatitis
|
328
|
|
17
|
|
12
|
|
181
|
|
3
|
|
(2)
|
|
92
|
|
35
|
|
31
|
|
55
|
|
49
|
|
46
|
Rotarix
|
322
|
|
36
|
|
33
|
|
125
|
|
>100
|
|
>100
|
|
61
|
|
-
|
|
(3)
|
|
136
|
|
7
|
|
9
|
Synflorix
|
138
|
|
(16)
|
|
(18)
|
|
-
|
|
-
|
|
-
|
|
19
|
|
19
|
|
19
|
|
119
|
|
(20)
|
|
(22)
|
Priorix, Priorix Tetra,
Varilrix
|
107
|
|
23
|
|
20
|
|
7
|
|
-
|
|
-
|
|
63
|
|
24
|
|
22
|
|
37
|
|
3
|
|
-
|
Cervarix
|
79
|
|
55
|
|
57
|
|
-
|
|
-
|
|
-
|
|
28
|
|
>100
|
|
>100
|
|
51
|
|
19
|
|
23
|
Other
|
88
|
|
52
|
|
45
|
|
14
|
|
>100
|
|
>100
|
|
3
|
|
(57)
|
|
(86)
|
|
71
|
|
58
|
|
51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vaccines excluding
COVID-19 solutions
|
3,921
|
|
16
|
|
12
|
|
1,883
|
|
5
|
|
-
|
|
1,059
|
|
29
|
|
25
|
|
979
|
|
27
|
|
27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pandemic vaccines
|
142
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
123
|
|
-
|
|
-
|
|
19
|
|
-
|
|
-
|
Pandemic
adjuvant
|
142
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
123
|
|
-
|
|
-
|
|
19
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vaccines
|
4,063
|
|
20
|
|
16
|
|
1,883
|
|
5
|
|
-
|
|
1,182
|
|
44
|
|
39
|
|
998
|
|
29
|
|
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty Medicines turnover –
three months ended 30 June 2023
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
||||||||||||||||
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
||||||||
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HIV
|
1,580
|
|
13
|
|
12
|
|
1,056
|
|
18
|
|
16
|
|
358
|
|
7
|
|
4
|
|
166
|
|
(5)
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dolutegravir
products
|
1,325
|
|
4
|
|
3
|
|
845
|
|
6
|
|
5
|
|
326
|
|
2
|
|
-
|
|
154
|
|
(6)
|
|
6
|
Tivicay
|
340
|
|
(2)
|
|
-
|
|
211
|
|
5
|
|
3
|
|
69
|
|
(4)
|
|
(7)
|
|
60
|
|
(18)
|
|
(3)
|
Triumeq
|
392
|
|
(15)
|
|
(16)
|
|
270
|
|
(12)
|
|
(13)
|
|
74
|
|
(24)
|
|
(26)
|
|
48
|
|
(16)
|
|
(11)
|
Juluca
|
163
|
|
7
|
|
6
|
|
126
|
|
9
|
|
6
|
|
34
|
|
3
|
|
3
|
|
3
|
|
-
|
|
33
|
Dovato
|
430
|
|
34
|
|
33
|
|
238
|
|
38
|
|
37
|
|
149
|
|
26
|
|
24
|
|
43
|
|
43
|
|
53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rukobia
|
27
|
|
42
|
|
37
|
|
25
|
|
39
|
|
39
|
|
1
|
|
>100
|
|
>100
|
|
1
|
|
-
|
|
(100)
|
Cabenuva
|
176
|
|
>100
|
|
>100
|
|
148
|
|
>100
|
|
>100
|
|
25
|
|
>100
|
|
>100
|
|
3
|
|
>100
|
|
>100
|
Apretude
|
36
|
|
>100
|
|
>100
|
|
36
|
|
>100
|
|
>100
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Other
|
16
|
|
(38)
|
|
(46)
|
|
2
|
|
(78)
|
|
(67)
|
|
6
|
|
(25)
|
|
(13)
|
|
8
|
|
(11)
|
|
(56)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Respiratory/Immunology and Other
|
792
|
|
16
|
|
16
|
|
554
|
|
14
|
|
11
|
|
116
|
|
26
|
|
24
|
|
122
|
|
21
|
|
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nucala
|
424
|
|
16
|
|
15
|
|
256
|
|
8
|
|
6
|
|
95
|
|
28
|
|
26
|
|
73
|
|
28
|
|
40
|
Benlysta
|
358
|
|
21
|
|
19
|
|
297
|
|
18
|
|
16
|
|
25
|
|
25
|
|
25
|
|
36
|
|
38
|
|
46
|
Other
|
10
|
|
(38)
|
|
(38)
|
|
1
|
|
-
|
|
-
|
|
(4)
|
|
>(100)
|
|
>(100)
|
|
13
|
|
(28)
|
|
(28)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oncology
|
151
|
|
(2)
|
|
(3)
|
|
67
|
|
(19)
|
|
(20)
|
|
75
|
|
21
|
|
19
|
|
9
|
|
-
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Zejula
|
117
|
|
(3)
|
|
(2)
|
|
51
|
|
(19)
|
|
(21)
|
|
57
|
|
19
|
|
19
|
|
9
|
|
-
|
|
22
|
Blenrep
|
9
|
|
(70)
|
|
(73)
|
|
(2)
|
|
>(100)
|
|
>(100)
|
|
11
|
|
-
|
|
(9)
|
|
-
|
|
-
|
|
-
|
Jemperli
|
25
|
|
>100
|
|
>100
|
|
18
|
|
>100
|
|
>100
|
|
8
|
|
>100
|
|
>100
|
|
(1)
|
|
-
|
|
-
|
Other
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1)
|
|
-
|
|
-
|
|
1
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty Medicines
excluding COVID-19
solutions
|
2,523
|
|
13
|
|
12
|
|
1,677
|
|
15
|
|
12
|
|
549
|
|
12
|
|
10
|
|
297
|
|
5
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pandemic
|
-
|
|
(100)
|
|
(100)
|
|
(1)
|
|
>(100)
|
|
>(100)
|
|
1
|
|
(99)
|
|
(99)
|
|
-
|
|
(100)
|
|
(100)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Xevudy
|
-
|
|
(100)
|
|
(100)
|
|
(1)
|
|
>(100)
|
|
>(100)
|
|
1
|
|
(99)
|
|
(99)
|
|
-
|
|
(100)
|
|
(100)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty Medicines
|
2,523
|
|
(7)
|
|
(7)
|
|
1,676
|
|
13
|
|
11
|
|
550
|
|
(10)
|
|
(12)
|
|
297
|
|
(51)
|
|
(47)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty Medicines turnover –
six months ended 30 June 2023
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
||||||||||||||||
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
||||||||
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HIV
|
3,048
|
|
18
|
|
14
|
|
1,973
|
|
24
|
|
18
|
|
704
|
|
11
|
|
7
|
|
371
|
|
3
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dolutegravir
products
|
2,602
|
|
9
|
|
5
|
|
1,605
|
|
12
|
|
6
|
|
645
|
|
6
|
|
3
|
|
352
|
|
4
|
|
6
|
Tivicay
|
697
|
|
5
|
|
1
|
|
396
|
|
10
|
|
4
|
|
135
|
|
(1)
|
|
(4)
|
|
166
|
|
(1)
|
|
(1)
|
Triumeq
|
766
|
|
(10)
|
|
(13)
|
|
519
|
|
(6)
|
|
(11)
|
|
149
|
|
(22)
|
|
(25)
|
|
98
|
|
(11)
|
|
(9)
|
Juluca
|
313
|
|
10
|
|
5
|
|
237
|
|
10
|
|
5
|
|
69
|
|
10
|
|
6
|
|
7
|
|
-
|
|
14
|
Dovato
|
826
|
|
43
|
|
38
|
|
453
|
|
47
|
|
39
|
|
292
|
|
35
|
|
31
|
|
81
|
|
56
|
|
62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rukobia
|
52
|
|
49
|
|
40
|
|
48
|
|
45
|
|
39
|
|
3
|
|
>100
|
|
>100
|
|
1
|
|
-
|
|
(100)
|
Cabenuva
|
303
|
|
>100
|
|
>100
|
|
251
|
|
>100
|
|
>100
|
|
45
|
|
>100
|
|
>100
|
|
7
|
|
>100
|
|
>100
|
Apretude
|
60
|
|
>100
|
|
>100
|
|
60
|
|
>100
|
|
>100
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Other
|
31
|
|
(37)
|
|
(41)
|
|
9
|
|
(44)
|
|
(44)
|
|
11
|
|
(15)
|
|
(15)
|
|
11
|
|
(45)
|
|
(55)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Respiratory/Immunology and Other
|
1,393
|
|
16
|
|
13
|
|
947
|
|
14
|
|
8
|
|
224
|
|
27
|
|
23
|
|
222
|
|
17
|
|
23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nucala
|
771
|
|
16
|
|
13
|
|
445
|
|
8
|
|
2
|
|
184
|
|
32
|
|
28
|
|
142
|
|
29
|
|
36
|
Benlysta
|
611
|
|
19
|
|
15
|
|
501
|
|
19
|
|
13
|
|
48
|
|
23
|
|
21
|
|
62
|
|
19
|
|
23
|
Other
|
11
|
|
(58)
|
|
(54)
|
|
1
|
|
-
|
|
-
|
|
(8)
|
|
>(100)
|
|
>(100)
|
|
18
|
|
(36)
|
|
(32)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oncology
|
287
|
|
2
|
|
(1)
|
|
122
|
|
(20)
|
|
(24)
|
|
147
|
|
27
|
|
23
|
|
18
|
|
38
|
|
54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Zejula
|
231
|
|
6
|
|
4
|
|
101
|
|
(11)
|
|
(16)
|
|
112
|
|
23
|
|
20
|
|
18
|
|
38
|
|
62
|
Blenrep
|
20
|
|
(64)
|
|
(65)
|
|
(2)
|
|
>(100)
|
|
>(100)
|
|
22
|
|
10
|
|
5
|
|
-
|
|
-
|
|
-
|
Jemperli
|
36
|
|
>100
|
|
>100
|
|
23
|
|
>100
|
|
>100
|
|
13
|
|
>100
|
|
>100
|
|
-
|
|
-
|
|
-
|
Other
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty Medicines
excluding COVID-19
solutions
|
4,728
|
|
16
|
|
12
|
|
3,042
|
|
18
|
|
12
|
|
1,075
|
|
16
|
|
12
|
|
611
|
|
9
|
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pandemic
|
31
|
|
(98)
|
|
(98)
|
|
(1)
|
|
>(100)
|
|
>(100)
|
|
1
|
|
(100)
|
|
(100)
|
|
31
|
|
(94)
|
|
(95)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Xevudy
|
31
|
|
(98)
|
|
(98)
|
|
(1)
|
|
>(100)
|
|
>(100)
|
|
1
|
|
(100)
|
|
(100)
|
|
31
|
|
(94)
|
|
(95)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty Medicines
|
4,759
|
|
(18)
|
|
(21)
|
|
3,041
|
|
(10)
|
|
(14)
|
|
1,076
|
|
(21)
|
|
(23)
|
|
642
|
|
(42)
|
|
(41)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General Medicines turnover –
three months ended 30 June 2023
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
||||||||||||||||
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
||||||||
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Respiratory
|
1,792
|
|
9
|
|
9
|
|
950
|
|
12
|
|
11
|
|
351
|
|
1
|
|
(1)
|
|
491
|
|
8
|
|
15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Arnuity Ellipta
|
13
|
|
-
|
|
(8)
|
|
11
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2
|
|
-
|
|
(50)
|
Anoro Ellipta
|
140
|
|
19
|
|
19
|
|
69
|
|
17
|
|
14
|
|
48
|
|
23
|
|
21
|
|
23
|
|
15
|
|
30
|
Avamys/Veramyst
|
74
|
|
-
|
|
3
|
|
-
|
|
-
|
|
-
|
|
17
|
|
(15)
|
|
(15)
|
|
57
|
|
6
|
|
9
|
Flixotide/Flovent
|
96
|
|
(33)
|
|
(31)
|
|
53
|
|
(46)
|
|
(45)
|
|
17
|
|
(6)
|
|
(6)
|
|
26
|
|
(4)
|
|
4
|
Incruse Ellipta
|
44
|
|
(14)
|
|
(14)
|
|
24
|
|
(17)
|
|
(21)
|
|
14
|
|
(18)
|
|
(18)
|
|
6
|
|
20
|
|
40
|
Relvar/Breo Ellipta
|
288
|
|
(7)
|
|
(6)
|
|
121
|
|
(19)
|
|
(21)
|
|
92
|
|
6
|
|
3
|
|
75
|
|
4
|
|
14
|
Seretide/Advair
|
322
|
|
23
|
|
26
|
|
125
|
|
>100
|
|
>100
|
|
65
|
|
(11)
|
|
(12)
|
|
132
|
|
3
|
|
10
|
Trelegy Ellipta
|
611
|
|
31
|
|
30
|
|
461
|
|
30
|
|
28
|
|
67
|
|
16
|
|
14
|
|
83
|
|
51
|
|
60
|
Ventolin
|
171
|
|
(2)
|
|
1
|
|
87
|
|
2
|
|
2
|
|
20
|
|
(26)
|
|
(26)
|
|
64
|
|
3
|
|
10
|
Other
Respiratory
|
33
|
|
(13)
|
|
(11)
|
|
(1)
|
|
-
|
|
-
|
|
11
|
|
22
|
|
11
|
|
23
|
|
(23)
|
|
(20)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other General Medicines
|
841
|
|
(2)
|
|
4
|
|
82
|
|
(6)
|
|
(7)
|
|
184
|
|
6
|
|
3
|
|
575
|
|
(4)
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dermatology
|
88
|
|
(3)
|
|
3
|
|
-
|
|
-
|
|
-
|
|
26
|
|
(7)
|
|
(7)
|
|
62
|
|
(2)
|
|
8
|
Augmentin
|
134
|
|
3
|
|
11
|
|
-
|
|
-
|
|
-
|
|
40
|
|
8
|
|
5
|
|
94
|
|
1
|
|
13
|
Avodart
|
90
|
|
11
|
|
15
|
|
-
|
|
-
|
|
-
|
|
30
|
|
11
|
|
4
|
|
60
|
|
11
|
|
20
|
Lamictal
|
115
|
|
(9)
|
|
(6)
|
|
56
|
|
(14)
|
|
(12)
|
|
27
|
|
-
|
|
(4)
|
|
32
|
|
(9)
|
|
3
|
Other
|
414
|
|
(4)
|
|
4
|
|
26
|
|
18
|
|
9
|
|
61
|
|
11
|
|
11
|
|
327
|
|
(8)
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General Medicines
|
2,633
|
|
5
|
|
8
|
|
1,032
|
|
11
|
|
9
|
|
535
|
|
2
|
|
1
|
|
1,066
|
|
1
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General Medicines turnover –
six months ended 30 June 2023
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
||||||||||||||||
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
||||||||
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Respiratory
|
3,559
|
|
12
|
|
10
|
|
1,782
|
|
14
|
|
8
|
|
723
|
|
6
|
|
3
|
|
1,054
|
|
13
|
|
16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Arnuity Ellipta
|
21
|
|
(19)
|
|
(23)
|
|
17
|
|
(23)
|
|
(23)
|
|
-
|
|
-
|
|
-
|
|
4
|
|
-
|
|
(25)
|
Anoro Ellipta
|
260
|
|
20
|
|
18
|
|
120
|
|
20
|
|
14
|
|
94
|
|
22
|
|
19
|
|
46
|
|
18
|
|
23
|
Avamys/Veramyst
|
198
|
|
18
|
|
18
|
|
-
|
|
-
|
|
-
|
|
35
|
|
(3)
|
|
(6)
|
|
163
|
|
23
|
|
25
|
Flixotide/Flovent
|
253
|
|
(6)
|
|
(9)
|
|
159
|
|
(13)
|
|
(17)
|
|
38
|
|
6
|
|
3
|
|
56
|
|
10
|
|
14
|
Incruse Ellipta
|
79
|
|
(22)
|
|
(24)
|
|
37
|
|
(33)
|
|
(36)
|
|
30
|
|
(9)
|
|
(12)
|
|
12
|
|
(8)
|
|
-
|
Relvar/Breo Ellipta
|
562
|
|
(4)
|
|
(5)
|
|
221
|
|
(18)
|
|
(22)
|
|
190
|
|
12
|
|
8
|
|
151
|
|
5
|
|
10
|
Seretide/Advair
|
661
|
|
17
|
|
16
|
|
245
|
|
69
|
|
61
|
|
136
|
|
(7)
|
|
(10)
|
|
280
|
|
3
|
|
6
|
Trelegy Ellipta
|
1,076
|
|
33
|
|
29
|
|
788
|
|
33
|
|
27
|
|
134
|
|
21
|
|
18
|
|
154
|
|
48
|
|
54
|
Ventolin
|
376
|
|
-
|
|
(1)
|
|
195
|
|
(3)
|
|
(8)
|
|
48
|
|
(16)
|
|
(18)
|
|
133
|
|
15
|
|
18
|
Other
Respiratory
|
73
|
|
-
|
|
3
|
|
-
|
|
-
|
|
-
|
|
18
|
|
20
|
|
13
|
|
55
|
|
(7)
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other General Medicines
|
1,748
|
|
2
|
|
6
|
|
174
|
|
(1)
|
|
(6)
|
|
367
|
|
7
|
|
3
|
|
1,207
|
|
1
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dermatology
|
185
|
|
1
|
|
5
|
|
-
|
|
-
|
|
-
|
|
54
|
|
(2)
|
|
(4)
|
|
131
|
|
2
|
|
9
|
Augmentin
|
311
|
|
20
|
|
24
|
|
-
|
|
-
|
|
-
|
|
96
|
|
32
|
|
27
|
|
215
|
|
16
|
|
23
|
Avodart
|
182
|
|
12
|
|
12
|
|
-
|
|
-
|
|
-
|
|
59
|
|
9
|
|
4
|
|
123
|
|
14
|
|
16
|
Lamictal
|
244
|
|
(1)
|
|
(2)
|
|
122
|
|
(2)
|
|
(6)
|
|
55
|
|
4
|
|
2
|
|
67
|
|
(4)
|
|
-
|
Other
|
826
|
|
(4)
|
|
2
|
|
52
|
|
-
|
|
(8)
|
|
103
|
|
(6)
|
|
(8)
|
|
671
|
|
(4)
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General Medicines
|
5,307
|
|
8
|
|
8
|
|
1,956
|
|
12
|
|
7
|
|
1,090
|
|
6
|
|
3
|
|
2,261
|
|
6
|
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Operations
turnover
|
|||||||||||||||||||||||
|
Total
|
|
US
|
|
Europe
|
|
International
|
||||||||||||||||
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
||||||||
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
30 June 2023
|
7,178
|
|
4
|
|
4
|
|
3,610
|
|
9
|
|
7
|
|
1,644
|
|
6
|
|
4
|
|
1,924
|
|
(7)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
30 June 2023
|
14,129
|
|
-
|
|
(2)
|
|
6,880
|
|
-
|
|
(5)
|
|
3,348
|
|
4
|
|
1
|
|
3,901
|
|
(3)
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 2023
|
7,137
|
|
10
|
|
11
|
|
3,611
|
|
10
|
|
8
|
|
1,621
|
|
14
|
|
12
|
|
1,905
|
|
9
|
|
17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
30 June 2023
|
13,956
|
|
13
|
|
11
|
|
6,881
|
|
13
|
|
7
|
|
3,224
|
|
16
|
|
13
|
|
3,851
|
|
11
|
|
15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
Turnover
by segment
|
|||||||
|
Q2 2023
£m
|
|
Q2
2022
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
Commercial
Operations (total turnover)
|
7,178
|
|
6,929
|
|
4
|
|
4
|
|
|
|
|
|
|
|
|
Operating profit by segment
|
|||||||
|
Q2
2023
£m
|
|
Q2
2022
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
Commercial
Operations
|
3,481
|
|
3,304
|
|
5
|
|
6
|
Research
and Development
|
(1,273)
|
|
(1,152)
|
|
11
|
|
10
|
|
|
|
|
|
|
|
|
Segment
profit
|
2,208
|
|
2,152
|
|
3
|
|
4
|
Corporate
and other unallocated costs
|
(38)
|
|
(144)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
operating profit
|
2,170
|
|
2,008
|
|
8
|
|
11
|
Adjusting
items
|
(29)
|
|
(927)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
operating profit
|
2,141
|
|
1,081
|
|
98
|
|
>100
|
|
|
|
|
|
|
|
|
Finance
income
|
33
|
|
21
|
|
|
|
|
Finance
costs
|
(185)
|
|
(204)
|
|
|
|
|
Share
of after tax profit/(loss) of associates
and
joint ventures
|
(2)
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
before taxation from continuing operations
|
1,987
|
|
896
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
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.
|
Turnover by
segment
|
|||||||
|
H1 2023
£m
|
|
H1
2022
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
Commercial
Operations (total turnover)
|
14,129
|
|
14,119
|
|
-
|
|
(2)
|
|
|
|
|
|
|
|
|
Operating profit by
segment
|
|||||||
|
H1 2023
£m
|
|
H1
2022
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
Commercial
Operations
|
6,856
|
|
6,421
|
|
7
|
|
4
|
Research
and Development
|
(2,505)
|
|
(2,247)
|
|
11
|
|
8
|
|
|
|
|
|
|
|
|
Segment
profit
|
4,351
|
|
4,174
|
|
4
|
|
1
|
Corporate
and other unallocated costs
|
(89)
|
|
(223)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
operating profit
|
4,262
|
|
3,951
|
|
8
|
|
6
|
Adjusting
items
|
(39)
|
|
(577)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
operating profit
|
4,223
|
|
3,374
|
|
25
|
|
23
|
|
|
|
|
|
|
|
|
Finance
income
|
62
|
|
28
|
|
|
|
|
Finance
costs
|
(388)
|
|
(409)
|
|
|
|
|
Share
of after tax profit/(loss) of associates
and
joint ventures
|
(4)
|
|
(3)
|
|
|
|
|
Profit
on disposal of associates and joint ventures
|
1
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
before taxation from continuing operations
|
3,894
|
|
2,990
|
|
30
|
|
28
|
|
|
|
|
|
|
|
|
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 2022. At 30 June 2023,
the Group’s aggregate provision for legal and other disputes
(not including tax matters described on page 10 was £0.3
billion (31 December 2022: £0.2 billion).
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 2023
results:
Intellectual
Property
Coreg
In
2014, GSK initiated suit against Teva in the US District Court for
the District of Delaware for inducing infringement of its patent
relating to the use of carvedilol (Coreg). In 2017, the jury returned a
verdict in GSK’s favour, awarding GSK lost profits and
reasonable royalties for a total award of $235.51 million, which
was ultimately upheld by the Court of Appeals for the Federal
Circuit. On 11 July 2022, Teva filed a petition for writ of
certiorari with the Supreme Court of the United States seeking to
overturn the Federal Court decision. On 15 May 2023, the US Supreme
Court denied Teva’s request. Certain issues remain to be
resolved at the District Court and the parties await the scheduling
of a status conference.
Product
Liability
Zantac
On 23
June 2023, GSK reached a confidential settlement in the first case
that was scheduled to go to trial in California state court (the
Goetz case). The settlement
reflects the Company’s desire to avoid distraction related to
protracted litigation in this case. GSK does not admit any
liability in this settlement and will continue to vigorously defend
itself based on the facts and the science in all other Zantac cases.
The
next case in California (the Cantlay/Harper case) has been set for
trial in November 2023. Cases in Texas, Illinois, and Florida have
also been scheduled for trial in 2024 and 2025. The Delaware
Superior Court has scheduled a hearing regarding admissibility of
expert testimony as to general causation for 22 January 2024. GSK
will continue to defend itself vigorously against all
claims.
On 12
May 2023, the British Columbia Supreme Court dismissed a proposed
class action on behalf of a class of ranitidine users in Canada.
Plaintiffs have filed an appeal. GSK will continue to
vigorously defend proposed class actions by ranitidine users that
have been filed in Ontario and Quebec as well as individual actions
filed by ranitidine users in Canada.
Commercial and
corporate
Zejula Royalty
Dispute
On 12
June 2023, the Court of Appeal of England and Wales granted the
Group’s request for permission to appeal the 5 April 2023
judgment which upheld AstraZeneca’s interpretation of the two
license agreements. The appeal will be heard in January
2024.
|
Returns
to shareholders
|
Quarterly dividends
The
Board has declared a second interim dividend for 2023 of 14p per
share (Q2 2022: 16.25p(1) 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. The dividend
policy, the total expected cash distribution, and the respective
dividend pay-out ratios for GSK remain unchanged. GSK expects to
declare a dividend of 56.5p per share for 2023. In setting its
dividend policy, GSK considers the capital allocation priorities of
the Group, 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 10 October 2023. An annual
fee of $0.03 per ADS (or $0.0075 per ADS per quarter) is charged by
the Depositary. The ex-dividend date will be 17 August 2023, with a
record date of 18 August 2023 and a payment date of 12 October
2023.
|
|
Paid/
Payable
|
|
Pence
per
share/
pre
share
consolidation
|
|
Pence
per
share/
post
share
consolidation
|
|
£m
|
|
|
|
|
|
|
|
|
2023
|
|
|
|
|
|
|
|
First
interim
|
13 July
2023
|
|
-
|
|
14
|
|
567
|
Second
interim
|
12
October 2023
|
|
-
|
|
14
|
|
567
|
|
|
|
|
|
|
|
|
2022
|
|
|
|
|
|
|
|
First
interim
|
1 July
2022
|
|
14
|
|
17.50
|
|
704
|
Second
interim
|
6
October 2022
|
|
13
|
|
16.25
|
|
654
|
Third
interim
|
12
January 2023
|
|
11
|
|
13.75
|
|
555
|
Fourth
interim
|
13
April 2023
|
|
11
|
|
13.75
|
|
557
|
|
|
|
|
|
|
|
|
|
|
|
49
|
|
61.25
|
|
2,470
|
|
|
|
|
|
|
|
|
(1)
|
Adjusted for the Share Consolidation on 18 July 2022. For details
of the Share Consolidation see page 54.
|
Weighted average number of shares
|
|||||
|
|
|
Q2 2023
millions
|
|
Q2
2022
millions
|
|
|
|
|
|
|
Weighted
average number of shares – basic
|
|
|
4,053
|
|
4,025
|
Dilutive
effect of share options and share awards
|
|
|
40
|
|
39
|
|
|
|
|
|
|
Weighted
average number of shares – diluted
|
|
|
4,093
|
|
4,064
|
|
|
|
|
|
|
Weighted average number of shares
|
|||||
|
|
|
H1 2023
millions
|
|
H1
2022
millions
|
|
|
|
|
|
|
Weighted
average number of shares – basic
|
|
|
4,048
|
|
4,021
|
Dilutive
effect of share options and share awards
|
|
|
41
|
|
38
|
|
|
|
|
|
|
Weighted
average number of shares – diluted
|
|
|
4,089
|
|
4,059
|
|
|
|
|
|
|
At 30
June 2023, 4,053 million shares (Q2 2022: 4,026 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 0.1 million shares under employee share schemes in
the quarter for proceeds of £1 million (Q2 2022: £3
million).
|
At 30
June 2023, the ESOP Trusts held 42.0 million GSK shares against the
future exercise of share options and share awards. The carrying
value of £228 million has been deducted from other reserves.
The market value of these shares was £587
million.
At 30
June 2023, the Company held 217 million Treasury shares at a cost
of £3,796 million which has been deducted from retained
earnings.
|
Additional information
|
Disposal group and discontinued operations accounting
policy
Disposal
groups are classified as held for distribution if their carrying
amount will be recovered principally through a distribution to
shareholders rather than through continuing use, they are available
for distribution in their present condition and the distribution is
considered highly probable. They are measured at the lower of their
carrying amount and fair value less costs to
distribute.
Non-current
assets included as part of a disposal group are not depreciated or
amortised while they are classified as held for distribution. The
assets and liabilities of a disposal group classified as held for
distribution are presented separately from the other assets and
liabilities in the balance sheet.
A
discontinued operation is a component of the entity that has been
disposed of or distributed or is classified as held for
distribution and that represents a separate major line of business.
The results of discontinued operations are presented separately in
the statement of profit or loss and comparatives are restated on a
consistent basis.
IAS 12 ‘Income Taxes’
On 20
June 2023, the UK Government substantively enacted legislation
introducing a global minimum corporate income tax rate, to have
effect from 2024 in line with the Organisation for Economic
Co-operation and Development’s (OECD) Pillar Two model
framework. GSK has applied the mandatory IAS 12 ‘Income
Taxes’ exception under paragraph 98 M (b) and is not
recognising any deferred tax impact.
Accounting policies and basis of preparation
This
unaudited Results Announcement contains condensed financial
information for the three and six months ended 30 June 2023 and should be read in
conjunction with the Annual Report 2022, 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
2022.
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 2022.
|
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 2022 were published
in the Annual Report 2022, 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 2023
|
|
Q2
2022
|
|
H1 2023
|
|
H1
2022
|
|
2022
|
||
|
|
|
|
|
|
|
|
|
|
||
Average
rates:
|
|
|
|
|
|
|
|
|
|
||
|
|
US$/£
|
1.25
|
|
1.26
|
|
1.23
|
|
1.30
|
|
1.24
|
|
|
Euro/£
|
1.15
|
|
1.18
|
|
1.14
|
|
1.19
|
|
1.17
|
|
|
Yen/£
|
173
|
|
162
|
|
168
|
|
159
|
|
161
|
|
|
|
|
|
|
|
|
|
|
||
Period-end
rates:
|
|
|
|
|
|
|
|
|
|
||
|
|
US$/£
|
1.26
|
|
1.21
|
|
1.26
|
|
1.21
|
|
1.20
|
|
|
Euro/£
|
1.17
|
|
1.16
|
|
1.17
|
|
1.16
|
|
1.13
|
|
|
Yen/£
|
183
|
|
165
|
|
183
|
|
165
|
|
159
|
Net assets
|
The
book value of net assets increased by £2,063 million from
£10,096 million at 31 December 2022 to £12,159 million at
30 June 2023. This primarily reflected contribution from Total
comprehensive income for the period partly offset by dividends paid
to shareholders.
At 30 June 2023, the net deficit on the Group’s pension plans
was £945 million compared with £1,355 million at 31
December 2022. This decrease in the net deficit is primarily
related to higher UK asset values, an increase to the UK discount
rate from 4.8% to 5.3%, decrease to the US Cash balance credit rate
from 3.9% to 3.7% and cash contributions of £353 million made
to the UK Pension schemes offset by an actuarial experience
adjustment for higher inflation than expected in UK pension
increases of approximately £400 million.
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 £850 million (31 December
2022: £1,093 million).
Contingent
consideration amounted to £6,227 million at 30 June 2023 (31
December 2022: £7,068 million), of which £5,252 million
(31 December 2022: £5,890 million) represented the estimated
present value of amounts payable to Shionogi relating to ViiV
Healthcare, £516 million (31 December 2022: £673 million)
represented the estimated present value of contingent consideration
payable to Novartis related to the Vaccines acquisition and
£455 million (31 December 2022: £501 million) represented
the estimated present value of contingent consideration payable to
Affinivax.
Of the
contingent consideration payable (on a post-tax basis) to Shionogi
at 30 June 2023, £903 million (31 December 2022: £940
million) is expected to be paid within one year.
|
Movements in contingent consideration are as follows:
|
|||
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
|
|
|
|
|
H1 2022
|
ViiV
Healthcare
£m
|
|
Group
£m
|
|
|
|
|
Contingent
consideration at beginning of the period
|
5,559
|
|
6,076
|
Remeasurement
through income statement and other movements
|
841
|
|
899
|
Cash
payments: operating cash flows
|
(534)
|
|
(542)
|
Cash
payments: investing activities
|
(69)
|
|
(73)
|
|
|
|
|
Contingent
consideration at end of the period
|
5,797
|
|
6,360
|
|
|
|
|
Contingent liabilities
|
There
were contingent liabilities at 30 June 2023 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 35
and on pages 265 to 267 of the 2022 Annual Report.
|
Business acquisitions
|
On 18
April 2023, GSK announced it had reached agreement to acquire
late-stage biopharmaceutical company BELLUS Health Inc. (Bellus).
On 28 June 2023, GSK completed the acquisition which was effected
through a Plan of Arrangement (the “Arrangement”)
pursuant to the Canada Business Corporations Act. The Arrangement
was approved by Bellus’ shareholders on 16 June 2023. Upon
completion, GSK acquired all outstanding common shares of Bellus
for US$14.75 per common share in cash, representing a total equity
value of US$2.0 billion (£1.6 billion). The acquisition
provides GSK access to camlipixant, a potential best-in-class and
highly selective P2X3 antagonist currently in phase III development
for the first-line treatment of adult patients with refractory
chronic cough (RCC). The values in the table on the next page are
provisional and are subject to change.
|
The
provisional fair values of the net assets acquired, including
goodwill, are as follows:
|
|
|
|
£m
|
|
|
|
|
Net
assets acquired:
|
|
|
|
Intangible
assets
|
|
|
1,630
|
Cash
and cash equivalents
|
|
|
145
|
Other
net assets/(liabilities)
|
|
|
55
|
Deferred
tax liabilities
|
|
|
(216)
|
|
|
|
|
|
|
|
1,614
|
Goodwill
|
|
|
-
|
|
|
|
|
Total
consideration
|
|
|
1,614
|
|
|
|
|
Of the
£1,614 million consideration, £70 million was unpaid as
at 30 June 2023 and was subsequently settled in July
2023.
|
Related party transactions
Details
of GSK’s related party transactions are disclosed on page 236
of our 2022 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 (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 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
|
899
|
|
-
|
|
174
|
|
1,073
|
Trade and other receivables
|
-
|
|
2,244
|
|
-
|
|
2,244
|
Financial
assets mandatorily at fair value through
profit
or loss (FVTPL):
|
|
|
|
|
|
|
|
Current equity investments and Other
investments
|
3,250
|
|
-
|
|
213
|
|
3,463
|
Other non-current assets
|
-
|
|
-
|
|
14
|
|
14
|
Trade and other receivables
|
-
|
|
55
|
|
-
|
|
55
|
Held for trading derivatives that are not in
a
designated and effective hedging
relationship
|
-
|
|
39
|
|
-
|
|
39
|
Cash and cash equivalents
|
1,641
|
|
-
|
|
-
|
|
1,641
|
Derivatives designated and effective as hedging
instruments (FVTOCI)
|
-
|
|
125
|
|
-
|
|
125
|
|
|
|
|
|
|
|
|
|
5,790
|
|
2,463
|
|
401
|
|
8,654
|
|
|
|
|
|
|
|
|
Financial liabilities at fair value
|
|
|
|
|
|
|
|
Financial
liabilities mandatorily at fair value through profit or loss
(FVTPL):
|
|
|
|
|
|
|
|
Contingent consideration liabilities
|
-
|
|
-
|
|
(6,227)
|
|
(6,227)
|
Held for trading derivatives that are not in
a
designated and effective hedging
relationship
|
-
|
|
(119)
|
|
-
|
|
(119)
|
Derivatives designated and effective as hedging
instruments (FVTOCI)
|
-
|
|
(17)
|
|
-
|
|
(17)
|
|
|
|
|
|
|
|
|
|
-
|
|
(136)
|
|
(6,227)
|
|
(6,363)
|
|
|
|
|
|
|
|
|
At 31 December 2022
|
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
|
823
|
|
-
|
|
330
|
|
1,153
|
Trade and other receivables
|
-
|
|
2,327
|
|
-
|
|
2,327
|
Financial
assets mandatorily at fair value through profit or loss
(FVTPL):
|
|
|
|
|
|
|
|
Current equity investments and Other
investments
|
4,087
|
|
-
|
|
314
|
|
4,401
|
Other non-current assets
|
-
|
|
-
|
|
13
|
|
13
|
Trade and other receivables
|
-
|
|
50
|
|
-
|
|
50
|
Held for trading derivatives that are not in
a
designated and effective hedging
relationship
|
-
|
|
165
|
|
-
|
|
165
|
Cash and cash equivalents
|
2,399
|
|
-
|
|
-
|
|
2,399
|
Derivatives designated and effective as hedging
instruments (FVTOCI)
|
-
|
|
25
|
|
-
|
|
25
|
|
|
|
|
|
|
|
|
|
7,309
|
|
2,567
|
|
657
|
|
10,533
|
|
|
|
|
|
|
|
|
Financial liabilities at fair value
|
|
|
|
|
|
|
|
Financial
liabilities mandatorily at fair value through profit or loss
(FVTPL):
|
|
|
|
|
|
|
|
Contingent consideration liabilities
|
-
|
|
-
|
|
(7,068)
|
|
(7,068)
|
Held for trading derivatives that are not in
a
designated and effective hedging
relationship
|
-
|
|
(77)
|
|
-
|
|
(77)
|
Derivatives designated and effective as hedging
instruments (FVTOCI)
|
-
|
|
(106)
|
|
-
|
|
(106)
|
|
|
|
|
|
|
|
|
|
-
|
|
(183)
|
|
(7,068)
|
|
(7,251)
|
|
|
|
|
|
|
|
|
Movements in the six months to 30 June 2023 and the six months to
30 June 2022 for financial instruments measured using Level 3
valuation methods are presented below:
|
|
Financial
assets
£m
|
|
Financial
liabilities
£m
|
|
|
|
|
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)
|
|
|
|
|
At 1 January 2022
|
419
|
|
(6,076)
|
Gains/(losses) recognised in the income statement
|
(7)
|
|
(900)
|
Gains/(losses) recognised in other comprehensive
income
|
32
|
|
-
|
Additions
|
60
|
|
-
|
Disposals and settlements
|
-
|
|
-
|
Transfer from Level 3
|
-
|
|
-
|
Payments in the period
|
-
|
|
615
|
|
|
|
|
At 30 June 2022
|
504
|
|
(6,361)
|
|
|
|
|
Net gains of £174 million (H1 2022: net losses of £907
million) reported in other operating income were attributable to
Level 3 financial instruments held at the end of the period.
£8 million of investments transferred from Level 3 as a result
of the exchange of shares in an unlisted investee entity for shares
in a listed entity (H1 2022: £nil). A gain of £4m arose
prior to transfer from Level 3 on the equity investment which
transferred to a Level 1 valuation methodology. Net gains and
losses include the impact of exchange movements.
Financial liabilities measured using Level 3 valuation methods at
30 June 2023 included £5,252 million (31 December 2022:
£5,890 million) of contingent consideration for the
acquisition in 2012 of the former Shionogi-ViiV Healthcare joint
venture, £516 million (31 December 2022: £673 million) of
contingent consideration for the acquisition of the Novartis
Vaccines business in 2015 and £455 million (31 December 2022:
£501 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 2023.
|
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*
|
519
|
|
72
|
|
-
|
15%
increase in sales forecasts*
|
776
|
|
109
|
|
-
|
10%
decrease in sales forecasts*
|
(516)
|
|
(71)
|
|
-
|
15%
decrease in sales forecasts*
|
(776)
|
|
(106)
|
|
-
|
10%
increase in probability of milestone success
|
-
|
|
20
|
|
75
|
10%
decrease in probability of milestone success
|
-
|
|
(10)
|
|
(75)
|
1% (100
basis points) increase in discount rate
|
(169)
|
|
(38)
|
|
(9)
|
1.5%
(150 basis points) increase in discount rate
|
(248)
|
|
(55)
|
|
(13)
|
1% (100
basis points) decrease in discount rate
|
182
|
|
45
|
|
9
|
1.5%
(150 basis points) decrease in discount rate
|
275
|
|
70
|
|
14
|
10 cent
appreciation of US Dollar
|
349
|
|
22
|
|
39
|
15 cent
appreciation of US Dollar
|
549
|
|
35
|
|
61
|
10 cent
depreciation of US Dollar
|
(299)
|
|
(18)
|
|
(33)
|
15 cent
depreciation of US Dollar
|
(432)
|
|
(26)
|
|
(48)
|
10 cent
appreciation of Euro
|
90
|
|
17
|
|
-
|
15 cent
appreciation of Euro
|
140
|
|
27
|
|
-
|
10 cent
depreciation of Euro
|
(74)
|
|
(14)
|
|
-
|
15 cent
depreciation of Euro
|
(106)
|
|
(20)
|
|
-
|
|
|
|
|
|
|
*
|
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 2023
|
|
31 December 2022
|
||||
|
|
|
|
|
|
|
|
|
Carrying
value
£m
|
|
Fair
value
£m
|
|
Carrying
value
£m
|
|
Fair
value
£m
|
|
|
|
|
|
|
|
|
Bonds in a designated hedging relationship
|
(5,476)
|
|
(5,209)
|
|
(6,322)
|
|
(6,035)
|
Other bonds
|
(11,490)
|
|
(11,270)
|
|
(12,017)
|
|
(11,930)
|
|
|
|
|
|
|
|
|
|
(16,966)
|
|
(16,479)
|
|
(18,339)
|
|
(17,965)
|
|
|
|
|
|
|
|
|
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
|
Put option
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 £850 million
(31 December 2022: £1,093 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 2023.
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*
|
85
|
15%
increase in sales forecasts*
|
128
|
10%
decrease in sales forecasts*
|
(85)
|
15%
decrease in sales forecasts*
|
(127)
|
1% (100
basis points) increase in discount rate
|
(22)
|
1.5%
(150 basis points) increase in discount rate
|
(33)
|
1% (100
basis points) decrease in discount rate
|
24
|
1.5%
(150 basis points) decrease in discount rate
|
36
|
10 cent
appreciation of US Dollar
|
58
|
15 cent
appreciation of US Dollar
|
90
|
10 cent
depreciation of US Dollar
|
(49)
|
15 cent
depreciation of US Dollar
|
(71)
|
10 cent
appreciation of Euro
|
25
|
15 cent
appreciation of Euro
|
40
|
10 cent
depreciation of Euro
|
(21)
|
15 cent
depreciation of Euro
|
(31)
|
|
|
*
|
The sales forecasts for the ViiV Healthcare put
option are for the ViiV Healthcare sales
only.
|
Reconciliation of cash
flow to movements in net debt
|
|
H1 2023
£m
|
|
H1
2022
£m
|
|
|
|
|
Total
Net debt at beginning of the period
|
(17,197)
|
|
(19,838)
|
|
|
|
|
Increase/(decrease)
in cash and bank overdrafts
|
(299)
|
|
(3,320)
|
Net
decrease/(increase) in short-term loans
|
(1,594)
|
|
3,062
|
Net
decrease/(increase) in long-term loans
|
150
|
|
3
|
Repayment
of lease liabilities
|
94
|
|
99
|
Net
debt of subsidiary undertakings acquired
|
49
|
|
-
|
Exchange
adjustments
|
660
|
|
(1,381)
|
Other
non-cash movements
|
(83)
|
|
(52)
|
|
|
|
|
Decrease/(increase)
in net debt from continuing operations
|
(1,023)
|
|
(1,589)
|
Decrease/(increase)
in net debt from discontinued operations
|
-
|
|
(31)
|
|
|
|
|
Total
Net debt at end of the period
|
(18,220)
|
|
(21,458)
|
|
|
|
|
Net debt
analysis
|
|
30 June
2023
£m
|
|
31
December
2022
£m
|
|
|
|
|
Liquid
investments
|
114
|
|
67
|
Cash
and cash equivalents
|
3,140
|
|
3,723
|
Short-term
borrowings
|
(5,921)
|
|
(3,952)
|
Long-term
borrowings
|
(15,553)
|
|
(17,035)
|
|
|
|
|
Total
Net debt at the end of the period
|
(18,220)
|
|
(17,197)
|
|
|
|
|
Free cash flow reconciliation from
continuing operations
|
|
Q2 2023
£m
|
|
H1 2023
£m
|
|
H1
2022
£m
|
|
|
|
|
|
|
Net
cash inflow/(outflow) from continuing operating
activities
|
1,307
|
|
1,360
|
|
3,402
|
Purchase
of property, plant and equipment
|
(296)
|
|
(529)
|
|
(430)
|
Proceeds
from sale of property, plant and equipment
|
3
|
|
10
|
|
6
|
Purchase
of intangible assets
|
(239)
|
|
(535)
|
|
(597)
|
Proceeds
from disposals of intangible assets
|
8
|
|
12
|
|
13
|
Net
finance costs
|
(295)
|
|
(386)
|
|
(411)
|
Dividends
from associates and joint ventures
|
-
|
|
1
|
|
-
|
Contingent
consideration paid (reported in investing activities)
|
(3)
|
|
(4)
|
|
(73)
|
Distributions
to non-controlling interests
|
(137)
|
|
(277)
|
|
(177)
|
Contributions
from non-controlling interests
|
-
|
|
7
|
|
8
|
|
|
|
|
|
|
Free
cash inflow/(outflow) from continuing operations
|
348
|
|
(341)
|
|
1,741
|
|
|
|
|
|
|
R&D commentary
|
Pipeline overview
|
Medicines
and vaccines in phase III development (including major lifecycle
innovation or under regulatory review)
|
17
|
Infectious Diseases (7)
|
|
●
|
Arexvy (RSV vaccine) RSV older adults
|
||
●
|
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 (4)
|
|||
●
|
Nucala (anti-IL5) chronic obstructive pulmonary
disease
|
||
●
|
depemokimab
(long acting anti-IL5) severe eosinophilic asthma, eosinophilic
granulomatosis with polyangiitis, chronic rhinosinusitis with nasal
polyps, hyper-eosinophilic syndrome
|
||
●
|
latozinemab
(AL001, anti-sortilin) frontotemporal dementia
|
||
●
|
camlipixant
(P2X2/P2X3 receptor antagonist) refractory chronic
cough
|
||
|
|
||
Oncology (5)
|
|||
●
|
momelotinib
(JAK1, JAK2 and ACVR1 inhibitor) myelofibrosis with
anaemia
|
||
●
|
Blenrep (anti-BCMA ADC) multiple myeloma
|
||
●
|
Jemperli (anti-PD-1) 1L endometrial cancer
|
||
●
|
Zejula (PARP inhibitor) 1L ovarian and non-small cell lung
cancer
|
||
●
|
cobolimab
(anti-TIM-3) 2L non-small cell lung cancer
|
||
|
|
||
Opportunity driven (1)
|
|||
●
|
linerixibat
(IBATi) cholestatic pruritus in primary biliary
cholangitis
|
||
Total
vaccines and medicines in all phases of clinical
development
|
68
|
|
|
Total
projects in clinical development (inclusive of all phases and
indications)
|
87
|
|
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 and ambition for 2021-2026 and beyond.
|
Infectious Diseases
|
Arexvy
(respiratory syncytial virus vaccine,
adjuvanted)
|
In May
2023, the US Food and Drug Administration (FDA) approved
Arexvy (respiratory
syncytial virus vaccine, adjuvanted) for the prevention of lower
respiratory tract disease (LRTD) caused by respiratory syncytial
virus (RSV) in individuals 60 years of age and older. This was the
first RSV vaccine for older adults to be approved anywhere in the
world. The US Centers for Disease Control and Prevention’s
(CDC) Advisory Committee on Immunisation Practices (ACIP) voted in
favour of recommending the vaccine in adults aged 60 and older
using shared clinical decision making in June 2023.
Also in
June 2023, the European Commission authorised the vaccine for
active immunisation for the prevention of LRTD caused by RSV in
adults 60 years of age and older. This followed a positive opinion
from the European Medicines Agency’s Committee for Medicinal
Products for Human Use (CHMP) which was adopted in April
2023.
New
data from the AReSVi-006 (Adult Respiratory Syncytial Virus) phase
III trial showing that one dose of the vaccine is efficacious
against RSV-LRTD and severe LRTD in adults aged 60 years and older
over two full RSV seasons were reported in June 2023. Safety and
reactogenicity data were consistent with initial observation from
the phase III programme. The trial also evaluated efficacy
following an annual revaccination schedule. Results suggested
revaccination after 12 months does not appear to confer additional
benefit for the overall population. The clinical development
programme will continue to evaluate longer term follow up and the
optimal timing for potential revaccination.
|
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
|
Active, not recruiting
|
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
|
Active, not recruiting
|
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
Data anticipated: H2 2023
|
Active, not recruiting
|
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
|
Active, recruiting
|
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
|
Not yet recruiting
|
bepirovirsen (HBV ASO)
|
Bepirovirsen is a potential new treatment option for people with
chronic hepatitis B being evaluated in nucleos(t)ide
analogue-treated patients, and as a sequential therapy with both
existing and novel treatments. Two randomised, double-blind,
placebo-controlled phase III trials (B-Well 1 and B-Well 2)
evaluating the safety and efficacy of bepirovirsen in nucleos(t)ide
analogue treated patients started in Q1 2023 and are actively
recruiting.
|
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: 2025+
|
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: 2025+
|
Recruiting
|
B-Together bepirovirsen sequential combination therapy with
Peg-interferon (chronic hepatitis B)
NCT04676724
|
IIb
|
A multi-centre, randomised, open label trial to assess the efficacy
and safety of sequential treatment with bepirovirsen followed by
Pegylated Interferon Alpha 2a in participants with chronic
hepatitis B virus
|
Trial start:
Q1 2021
Data anticipated: H2 2023
|
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: 2025+
|
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).
In
April 2023, GSK presented positive results from the pivotal EAGLE-2
and EAGLE-3 phase III trials for gepotidacin in an oral
presentation at the European Congress of Clinical Microbiology and
Infectious Diseases in Copenhagen, Denmark. In the EAGLE-2 and
EAGLE-3 trials, gepotidacin demonstrated non-inferiority to
nitrofurantoin, an existing first-line treatment for uUTI, in
patients with a confirmed uUTI and a uropathogen susceptible to
nitrofurantoin. Additionally, in the EAGLE-3 phase III trial,
gepotidacin demonstrated statistically significant superiority
versus nitrofurantoin.
|
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 anticipated: H1 2024
|
Recruiting
|
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
|
In May
2023, GSK presented preliminary positive results from the phase III
trial (NCT04502693) evaluating the immunological vaccine
effectiveness and safety of its MenABCWY combination vaccine
candidate, administered as two doses given six months apart in
healthy individuals aged 10-25 years. The preliminary data were
disclosed at the 41st Annual Meeting of the European Society for
Paediatric Infectious Diseases (ESPID) in Lisbon,
Portugal.
The
vaccine candidate demonstrated non-inferiority in primary endpoints
for the five Neisseria
meningitidis serogroups (A, B, C, W, and Y) compared to two
doses of Bexsero
(meningococcal group B vaccine) and one dose of Menveo (meningococcal group A, C, W,
and Y conjugate vaccine). Furthermore, the MenABCWY candidate
showed immunological vaccine effectiveness against a panel of 110
diverse meningococcal serogroup B (MenB) invasive strains, which
account for 95% of strains circulating in the US. The vaccine
candidate was generally well tolerated, with a safety profile
consistent with Bexsero and
Menveo.
|
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
Trial end:
Q2 2023
|
Complete
|
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
|
In July 2023, ViiV Healthcare welcomed a positive opinion by the
European Medicines Agency's (EMA) CHMP recommending marketing
authorisation for cabotegravir long-acting (LA) injectable and
tablets for HIV prevention. Cabotegravir is recommended in
combination with safer sex practices for pre-exposure prophylaxis
(PrEP) to reduce the risk of sexually acquired HIV-1 infection in
high-risk adults and adolescents weighing at least 35 kg.
Cabotegravir is the first and only long-acting injectable option
for PrEP to reduce the risk of sexually acquired HIV-1. With
approximately 100,000 people in Europe newly diagnosed with HIV
each year, this is an important step towards expanding HIV
prevention options in the region.
Also in July, ViiV Healthcare shared 12-month patient reported
outcomes data from SOLAR, a phase IIIb, randomised, open-label,
multi-centre, non-inferiority trial which assessed switching
virologically suppressed adults to cabotegravir + rilpivirine
long-acting dosed every two months versus continuing
bictegravir/emtricitabine/tenofovir alafenamide at the
International AIDS Society 2023 Conference on HIV
Science.
The results show that after 12 months of treatment most (90%)
participants preferred cabotegravir + rilpivirine long-acting
versus bictegravir/emtricitabine/tenofovir alafenamide (5%), Not
having to worry about taking daily HIV medicine (85%) was cited as
a top reason for preferring long-acting therapy. There were also
emotional well-being benefits of switching to cabotegravir +
rilpivirine long-acting; over 70% of participants who switched
showed improvements in adherence anxiety and fear of disclosure
after 12 months of therapy. Previously presented findings showed
that the regimen of cabotegravir + rilpivirine long-acting dosed
every two months demonstrated non-inferior efficacy compared to
continuation of daily oral bictegravir/emtricitabine/tenofovir
alafenamide.
|
Respiratory/Immunology
|
camlipixant (P2X2/P2X3 receptor antagonist)
|
In June
2023, GSK announced the completed acquisition of BELLUS Health
Inc., a biopharmaceutical company working to better the lives of
patients suffering from refractory chronic cough (RCC). The
acquisition of Bellus included camlipixant (BLU-5937), an
investigational, highly selective oral P2X3 antagonist currently in
development for first-line treatment of adult patients with 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 (ultra-long acting anti-IL5)
|
Depemokimab is a unique and distinct monoclonal antibody developed
specifically for its affinity for IL-5 and long duration of
inhibition. The phase III programme for depemokimab continues to
make progress across a range of eosinophil-driven
diseases.
|
Key
phase III trials for depemokimab:
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
SWIFT-1 (severe eosinophilic asthma; SEA)
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 anticipated:
H2 2024
|
Active, not recruiting
|
SWIFT-2 (SEA)
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 anticipated:
H2 2024
|
Active, not recruiting
|
AGILE (SEA)
NCT05243680
|
III
(extension)
|
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+
|
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
|
Recruiting
|
ANCHOR-2 (CRSwNP)
NCT05281523
|
III
|
Efficacy and safety of depemokimab in participants with
CRSwNP
|
Trial start:
Q2 2022
Data anticipated:
H2 2024
|
Recruiting
|
OCEAN (eosinophilic granulomatosis with polyangiitis)
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)
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:
2025+
|
Recruiting
|
Oncology
|
Blenrep
(belantamab mafodotin)
|
Trials
within the DREAMM (DRiving Excellence in Approaches to Multiple
Myeloma) clinical trial programme are ongoing, evaluating
belantamab mafodotin in earlier lines of therapy and in
combination. We anticipate data from DREAMM-7 and DREAMM-8 in the
second-line setting in the second half of 2023.
|
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
Data anticipated:
H2 2023
|
Active, not recruiting
|
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
Data anticipated:
H2 2023
|
Enrolment complete
|
Jemperli
(dostarlimab)
|
In June 2023, the US FDA accepted the supplemental Biologics
License Application for Jemperli in combination with chemotherapy for the treatment
of adult patients with mismatch repair deficient
(dMMR)/microsatellite instability-high (MSI-H) primary advanced or
recurrent endometrial cancer. Endometrial cancer is one of the most
common gynaecologic cancers in developed countries. An estimated
20-29% of all endometrial cancers are
dMMR/MSI-H.
In May 2023, GSK began recruiting for AZUR-2, a phase III trial to
evaluate the efficacy of perioperative dostarlimab compared with
standard of care in participants with untreated T4N0 or Stage III
(resectable), defective mismatch repair/ microsatellite instability
high (dMMR/MSI-H) colon cancer.
We continue to study the full potential of Jemperli with other oncology compounds, including our
ongoing phase III COSTAR Lung trial, a randomised, open label 3-arm
trial comparing cobolimab, an investigational selective
anti–TIM-3 monoclonal antibody, plus dostarlimab plus
docetaxel to dostarlimab plus docetaxel to docetaxel alone in
patients with advanced non-small cell lung cancer who have
progressed on prior anti-PD-(L)1 therapy and
chemotherapy.
|
Key
trials for Jemperli:
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
RUBY
ENGOT-EN6
GOG-3031 (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 anticipated: H1 2024
|
Active, not recruiting; primary endpoint met in RUBY Part
1
|
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: 2025+
|
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:
Q2 2023
Data anticipated: 2025+
|
Active, not yet 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: H2 2024
|
Recruiting
|
momelotinib (JAK1/2
and ACVR1/ALK2 inhibitor)
|
In June 2023, GSK announced that the US FDA has extended the review
period of the new drug application (NDA) for momelotinib by three
months to provide time to review recently submitted data. The
extended action date is 16 September 2023. GSK is confident in the
momelotinib NDA and looks forward to working with the FDA as they
finalise their review.
|
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
|
Active, not recruiting; primary endpoint met
|
Zejula
(niraparib)
|
GSK is building a robust clinical development programme by
assessing activity across multiple tumour types and evaluating
several potential combinations of Zejula
with other
therapeutics. The ongoing development programme includes several
combination studies, including the FIRST phase III trial assessing
niraparib in combination with dostarlimab, a programmed death
receptor-1 (PD-1)-blocking antibody, as a potential treatment for
first-line ovarian cancer maintenance; RUBY Part II, the phase III
trial of niraparib and dostarlimab in recurrent or primary advanced
(stage III or IV) endometrial cancer; and the ZEAL phase III trial
assessing niraparib in combination with standard of care for the
maintenance treatment of first line advanced non-small cell lung
cancer.
|
Key
phase III trials for Zejula:
|
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:
H1 2024
|
Active, not recruiting
|
Opportunity driven
|
Jesduvroq
(daprodustat)
|
Following
the positive CHMP opinion for daprodustat for symptomatic anaemia
associated with chronic kidney disease in adults on chronic
maintenance dialysis, due to the significant reduction in the size
of the opportunity and the exclusion of the non-dialysis
population, as well as the availability in Europe of other
medicines for patients living with anaemia of chronic kidney
disease (CKD), the decision has been made to not commercialise in
Europe, to withdraw the file for EU and to cease filing in further
markets.
The
application withdrawal in the EU does not include the US, where
Jesduvroq is currently
approved for the treatment of anaemia due to CKD in adults who have
been receiving dialysis for at least four months. In February 2023,
the US FDA approved Jesduvroq tablets for the once-a-day
treatment of anaemia due to CKD in adults who have been receiving
dialysis for at least four months. In June 2020, Duvroq (daprodustat) tablets were
approved by Japan’s Ministry of Health, Labour and Welfare
for the treatment of patients with anaemia of CKD not on dialysis
and on dialysis. Duvroq is
the market leading and preferred hypoxia-inducible
factor–prolyl hydroxylase inhibitor (HIF-PHI) in
Japan.
|
Principal risks and uncertainties
The
principal risks and uncertainties affecting the Group for 2023 are
those described under the headings below. These are not listed in
order of significance. In our December 2022 annual risk review, the
Audit & Risk Committee agreed our principal risks for 2023,
which remain largely unchanged. We identified a new principal risk,
Legal Matters, which brings into greater focus a range of legal
risks. As a result, Anti-bribery and Corruption will no longer be a
stand-alone principal risk in 2023. Additionally, we expanded our
Information Security principal risk to explicitly include cyber
risks.
We
describe our risk management process on page 51-52 of our 2022
Annual Report, along with more detailed information on our risks,
including definitions, trends, potential impact, context and
mitigation activities as set out on pages 53-54 and pages 285-295
of our 2022 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 2022 ESG
Performance Report. Additional information on climate related risk
management is in our climate related financial disclosure on pages
55-63 of our 2022 Annual Report.
|
2023 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, 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 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 potentially fail to ensure
appropriate controls and governance to identify, protect, detect,
respond, and recover from cyber incidents through unauthorised
access, disclosure, theft, unavailability or corruption of GSK's
information, key systems, or technology infrastructure in
accordance with applicable laws, regulations, industry standards,
internal controls and requirements.
|
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, Continuing and Adjusted results
Total
reported results represent the Group’s overall performance
including discontinued operations. Continuing results represents
performance excluding discontinued operations.
GSK
also uses a number of adjusted, non-IFRS, measures to report the
performance of its business. Adjusted 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.
Adjusted results are defined on page 17 and other non-IFRS measures
are defined below and are based on continuing
operations.
Free cash flow from continuing operations
Free
cash flow is defined as the net cash inflow/outflow from continuing
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 (all attributable to continuing operations). It is used
by management for planning and reporting purposes and in
discussions with and presentations to investment analysts and
rating agencies. Free cash flow growth is calculated on a reported
basis. A reconciliation of net cash inflow from continuing
operations to free cash flow from continuing operations is set out
on page 44.
Free cash flow conversion
Free
cash flow conversion is free cash flow from continuing operations
as a percentage of profit attributable to shareholders from
continuing operations.
Working capital
Working
capital represents inventory and trade receivables less trade
payables.
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. £%
or AER% represents growth at actual exchange rates.
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.
Discontinued operations
Consumer Healthcare was presented as a discontinued operation from
Q2 2022. The demerger of Consumer Healthcare was completed on 18
July 2022. The Group Income Statement and Group Cash Flow Statement
distinguish discontinued operations from continuing
operations.
Share Consolidation
Following
completion of the Consumer Healthcare business demerger on 18 July
2022, GSK plc Ordinary shares were consolidated to maintain share
price comparability before and after demerger. Shareholders
received 4 new Ordinary shares with a nominal value of 31¼
pence each for every 5 existing Ordinary shares which had a nominal
value of 25 pence each. Earnings per share, diluted earnings per
share, adjusted earnings per share and dividends per share were
retrospectively adjusted to reflect the Share Consolidation in all
the periods presented.
Earnings per share
Earnings
per share has been retrospectively adjusted for the Share
Consolidation on 18 July 2022, applying a ratio of 4 new Ordinary
shares for every 5 existing Ordinary shares.
Total Earnings per share
Unless
otherwise stated, Total earnings per share refers to Total basic
earnings per share.
Total Operating Margin
Total Operating margin is Total operating profit divided by
turnover.
COVID-19 solutions
COVID-19
solutions include the sales of pandemic adjuvant and other COVID-19
solutions including vaccine manufacturing and Xevudy and the associated costs but
does not include reinvestment in R&D. This categorisation is
used by management and we believe is helpful to investors through
providing clarity on the results of the Group by showing the
contribution to growth from COVID-19 solutions.
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. 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 2023 Guidance which excludes any contributions from COVID-19
solutions.
General Medicines
General
Medicines are usually prescribed in the primary care or community
settings by general healthcare practitioners. For GSK, this
includes medicines in 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 in infectious diseases, HIV, Oncology,
Respiratory/Immunology and Other.
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 2023 or
the same prior period in 2022 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, assumptions and cautionary
statements
|
2023 guidance
GSK now
expects 2023 turnover to increase between 8 to 10 per cent,
Adjusted operating profit to increase between 11 to 13 per cent and
Adjusted earnings per share to increase between 14 to 17 per cent.
This guidance is provided at CER and excludes any contributions
from COVID-19 solutions.
Assumptions related to 2023 guidance
In
outlining the guidance for 2023, the Group has made certain
assumptions about the healthcare sector, the different markets in
which the Group operates and the delivery of revenues and financial
benefits from its current portfolio, pipeline and restructuring
programmes. In the second half of 2023, GSK expects continued
strong performance across all three product areas but with lower
growth reflecting a tough comparison to the second half of 2022,
particularly in HIV and General Medicines. For full year sales,
Vaccines is expected to increase by mid-teens per cent, Specialty
Medicines, including HIV, is now expected to grow high single-digit
per cent, and General Medicines is now expected to grow low single
digit per cent. GSK still expects Adjusted operating profit growth
to be higher in the second half of 2023 relative to full-year
expectations, with growth of investment reducing in the second
half, particularly in the fourth quarter.
These
planning assumptions as well as operating profit 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 2023 guidance factors in all divestments and
product exits announced to date.
The
Group’s guidance assumes successful delivery of the
Group’s integration and restructuring plans. Material costs for investment in new product
launches and R&D have been factored into the expectations
given. Given the potential development options in the Group’s
pipeline, the outlook may be affected by additional data-driven
R&D investment decisions. 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, ambitions
and expectations described in this report are achievable based on
those assumptions. However, given the forward-looking nature of
these guidance, outlooks, ambitions 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, such as the COVID-19 pandemic and ongoing challenges and
uncertainties posed by the COVID-19 pandemic for businesses and
governments around the world, 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, ambitions and expectations should be read
together with the guidance, assumptions and cautionary statements
in this Q2 2023 earnings release and the 2022 Annual
Report.
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 2022. 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 26 July 2023.
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:
|
|
|
|
Sir Jonathan Symonds
|
Non-Executive Chair, Nominations & Corporate Governance
Committee Chair
|
Dame Emma Walmsley
|
Chief Executive Officer (Executive Director)
|
Julie Brown
|
Chief Financial Officer (Executive Director)
|
|
|
Elizabeth McKee Anderson
|
Independent Non-Executive Director
|
Charles Bancroft
|
Senior Independent Non-Executive Director, Audit & Risk
Committee Chair
|
Dr Hal Barron
|
Non-Executive Director
|
Dr Anne Beal
|
Independent Non-Executive Director, Corporate Responsibility
Committee Chair
|
Dr Harry (Hal) Dietz
|
Independent Non-Executive Director, Science Committee
Chair
|
Dr Jesse Goodman
|
Independent Non-Executive Director
|
Urs Rohner
|
Independent Non-Executive Director, Remuneration Committee
Chair
|
Dr Vishal Sikka
|
Independent Non-Executive Director
|
|
|
|
|
By order of the Board
|
|
Emma Walmsley
Chief Executive Officer
26 July 2023
|
Julie Brown
Chief Financial Officer
|
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
2023.
|
The
condensed financial information comprises:
|
|
●
|
the
income statement and statement of comprehensive income for the
three and six month periods ended 30 June 2023 on pages 25 to
26;
|
●
|
the
balance sheet as at 30 June 2023 on page 27;
|
●
|
the
statement of changes in equity for the six month period then ended
on page 28;
|
●
|
the
cash flow statement for the six month period then ended on page 29;
and
|
●
|
the
accounting policies and basis of preparation and the explanatory
notes to the condensed financial information on pages 30 to 44 that
have been prepared applying consistent accounting policies to those
applied by GSK plc and its subsidiaries (“the Group”)
in the Annual Report 2022, which was prepared in accordance with
International Financial Reporting Standards (“IFRS”) as
adopted by the United Kingdom.
|
We have
read the other information contained in the Results Announcement,
including the non-IFRS measures contained on pages 30 to 44 and
considered whether it contains any apparent misstatements or
material inconsistencies with the information in the condensed
financial information.
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 2023 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 37, the annual financial statements of the
Company are prepared in accordance with United Kingdom adopted
international accounting standards. The condensed set of financial
statements 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, our responsibility is to
express to the Company a conclusion on the condensed financial
information in the Results Announcement based on our review. Our
Conclusion, including our Conclusions Relating to Going Concern,
are based on procedures that are less extensive than audit
procedures, as described in the Basis of 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
26 July
2023
|
|
GSK plc
|
|
(Registrant)
|
|
|
Date:
July 26, 2023
|
|
|
|
|
By:/s/ VICTORIA
WHYTE
--------------------------
|
|
|
|
Victoria Whyte
|
|
Authorised
Signatory for and on
|
|
behalf
of GSK plc
|
1 Year GSK Chart |
1 Month GSK Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions