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Name | Symbol | Market | Type |
---|---|---|---|
GSK plc | NYSE:GSK | NYSE | Depository Receipt |
Price Change | % Change | Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.06 | -0.14% | 44.09 | 290 | 09:36:12 |
|
|
|
GSK delivers strong 2023 performance
and upgrades growth outlooks
|
|
|
|
Broad-based performance drives sales, profits and earnings
growth:
|
|
●
|
Total
2023 sales £30.3 billion +5% and +14% ex COVID
|
●
|
Vaccines
sales +25%, +24% ex COVID. Shingrix £3.4
billion +17%, Arexvy £1.2
billion
|
●
|
Specialty
Medicines sales -8%, +15% ex COVID with HIV +13%; General Medicines
sales +5%
|
●
|
Total
operating profit and Total continuing EPS for 2023 reflects strong
growth, with lower charges for contingent consideration liabilities
remeasurement
|
●
|
Adjusted
operating profit +12% (with further positive impact of +4% ex
COVID) and Adjusted EPS +16% (with further positive impact of +6%
ex COVID). This reflected strong sales ex COVID and higher royalty
income, partly offset by increased investment in R&D and new
product launches
|
(Financial Performance – 2023 results unless otherwise
stated, growth % and commentary at CER, ex COVID is excluding
COVID-19 solutions as defined on page 53).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
Q4 2023
|
||||||||
|
£m
|
|
%
AER
|
|
%
CER
|
|
£m
|
|
%
AER
|
|
%
CER
|
Turnover
|
30,328
|
|
3
|
|
5
|
|
8,052
|
|
9
|
|
15
|
Turnover ex COVID
|
30,134
|
|
12
|
|
14
|
|
8,032
|
|
12
|
|
17
|
Total
operating profit
|
6,745
|
|
5
|
|
10
|
|
573
|
|
(69)
|
|
(60)
|
Total
continuing EPS
|
121.6p
|
|
10
|
|
16
|
|
8.6p
|
|
(77)
|
|
(68)
|
Adjusted
operating profit
|
8,786
|
|
8
|
|
12
|
|
1,752
|
|
10
|
|
21
|
Adjusted
operating margin %
|
29.0%
|
|
1.2ppts
|
|
1.8ppts
|
|
21.8%
|
|
0.1ppts
|
|
1.2ppts
|
Adjusted
EPS
|
155.1p
|
|
11
|
|
16
|
|
28.9p
|
|
12
|
|
25
|
Cash
generated from operations
|
8,096
|
|
2
|
|
|
|
3,681
|
|
75
|
|
|
|
|
Organic R&D delivery and targeted business development supports
future growth:
|
|
●
|
71
Vaccines and Specialty Medicines now in clinical development,
including 18 in phase III/registration
|
●
|
Strong
pipeline progress, with 4 major product approvals: Arexvy
RSV vaccine; Apretude
for HIV prevention; Ojjaara
for myelofibrosis and Jemperli
in 1L endometrial cancer
|
●
|
Targeted
business development further strengthens the pipeline including:
acquisition of Bellus Health and proposed acquisition of Aiolos Bio
(Respiratory), licence agreements with Janssen (Infectious
Diseases) and Hansoh Pharma (Oncology)
|
●
|
Significant
late-stage R&D milestones expected in 2024, including: approval
of Arexvy in
50-59 year-olds; regulatory submission for meningitis (ABCWY)
vaccine; phase III data for depemokimab (severe asthma),
Nucala
(COPD), gepotidacin (UTIs/gonorrhoea), Jemperli
(endometrial cancer)
|
|
|
2024 guidance and 2023/2024 dividends:
|
|
●
|
Expect
2024 turnover growth of between 5 to 7%; Adjusted operating growth
of between 7 to 10%; Adjusted EPS growth of between 6 to
9%
|
●
|
Increased
dividend of 16p declared for Q4 2023; 58p FY 2023; 60p expected for
2024
|
|
|
|
Upgrade to longer-term outlooks:
|
||
●
|
2021-2026
outlook increased to sales more than +7% CAGR and Adjusted
operating profit more than +11% CAGR
|
|
●
|
2031
sales outlook increased to more than £38 billion; Adjusted
operating margins broadly stable through dolutegravir patent loss
of exclusivity
|
|
|
|
|
Emma Walmsley, Chief Executive Officer, GSK:
“GSK
delivered excellent performance in 2023, with clear highlights
being the exceptional launch of Arexvy
and continued progress in our pipeline. We are now planning for at
least 12 major launches from 2025, with new Vaccines and Specialty
Medicines for infectious diseases, HIV, respiratory and oncology.
As a result of this progress and momentum, we expect to deliver
another year of meaningful sales and earnings growth in 2024, and
we are upgrading our growth outlooks for 2026 and 2031. We remain
focused on delivering this potential - and more - to prevent and
change the course of disease for millions of
people.”
|
The Total results are presented in summary above
and on page 8 and Adjusted results reconciliations are presented on
pages 20, 21, 23 and 24. 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 18 and £% or AER% growth, CER% growth,
turnover excluding COVID-19 solutions and other non-IFRS measures
are defined on page 53, COVID-19 solutions are defined on page 53.
GSK provides guidance on an Adjusted results basis only, for the
reasons set out on page 18. All expectations, guidance and targets
regarding future performance and dividend payments should be read
together with ‘Guidance and outlooks, assumptions and
cautionary statements’ on pages 54 and 55. 2021-2026 CAGR is
for 5 years to 2026 with 2021 as the base year.
|
|
2024 Guidance
|
|
GSK
provides its full-year guidance at constant exchange rates (CER).
All expectations and full-year growth rates exclude any
contributions from COVID-19 solutions.
|
|
Turnover
is expected to increase between 5 to 7
per cent
|
Adjusted
operating profit is expected to
increase between 7 to 10 per cent
|
Adjusted
earnings per share is expected
to increase between 6 to 9 per cent
|
|
This
guidance is supported by the following turnover expectations for
full-year 2024 at CER:
|
|
|
|
Vaccines
|
–
|
expected increase of high
single-digit to low double-digit per cent in turnover
|
Specialty Medicines
|
–
|
expected increase of low
double-digit per cent in turnover
|
General Medicines
|
–
|
expected decrease of
mid-single-digit per cent in turnover
|
|
Adjusted
Operating profit is expected to grow between 7 to 10 per cent at
CER, despite a 6 percentage point impact to Operating Profit growth
following the loss of Gardasil royalties effective from the
beginning of 2024. GSK expects to deliver leverage at a gross
margin level due to improved product mix from Vaccines and
Specialty Medicines growth and continued operational efficiencies.
In addition, GSK anticipates further leverage in Operating Profit
due to a step down in SG&A growth to a low single-digit
increase. R&D is expected to increase broadly in line with
sales to support growth of the pipeline.
Adjusted
Earnings per share is now expected to increase between 6 to 9 per
cent at CER, reflecting higher operating profit and more favourable
net finance costs. Expectations for non-controlling interests
remain unchanged relative to 2023, and GSK anticipates, as
previously communicated, an increase in the adjusted effective tax
rate to around 17% following implementation of a global minimum
corporate income tax rate aligned with the Organisation for
Economic Co-Operation and Development ‘Pillar 2’
initiative.
|
|
Additional commentary
|
The
Dividend policy and the expected pay-out ratio remain unchanged.
Consistent with this, and reflecting strong business performance
during the year, GSK now expects to declare an increased dividend
of 16p for Q4 2023 and 58p per share for the full year 2023. GSK's
future dividend policy and guidance regarding the expected dividend
pay-out in 2024 are provided on page 39.
|
|
COVID-19 solutions
|
For the
full year 2024, GSK does not anticipate any further COVID-19
pandemic-related sales or operating profit. The adverse impact of
lower sales of COVID-19 solutions in 2024 is anticipated to be one
percentage point of growth in sales and two percentage points in
Adjusted operating profit.
|
|
2021-26 and 2031 Outlooks
|
In
2021, GSK set out outlooks and ambitions to shareholders, including
for a “step-change” in performance. These followed a
significant transformation in GSK’s structure, strategy,
capital allocation and culture. Since then, GSK has made
significant progress, to deliver consecutive quarters of sales and
earnings growth, and invest in new Vaccines and Specialty
Medicines, to reshape, strengthen and advance its R&D
portfolio, post the demerger of Consumer Healthcare. With this
progress made, GSK has today announced upgraded outlooks, from
those previously given, for the period 2021-2026 and for 2031. For
the period 2021-2026, GSK now expects sales to grow more than 7% on
a CAGR basis and adjusted operating profit to increase more than
11%, on the same basis. This compares to previous outlooks of more
than 5% and more than 10% respectively. Adjusted operating profit
margin in 2026 is now expected to be more than 31%.
By
2031, GSK now expects to achieve sales of more than £38
billion on a risk-adjusted basis and at CER. This is an increase of
£5 billion compared to the estimate given in 2021 and
continues to exclude any contributions from early-stage pipeline
assets, further anticipated business development and Blenrep.
GSK expects to maintain a continued strong focus on margin
improvements, while retaining flexibility to invest in future
growth. Recognising that GSK will likely face loss of exclusivity
for dolutegravir during 2028 to 2030 in US and EU, with the
majority of impact 2029 to 2030, GSK has today stated that it
expects operating margins to be broadly stable through this period.
GSK expects an effective transition within its HIV portfolio
towards new long-acting treatment and prevention therapies, margin
mix benefit from growth in higher operating margin Vaccine and
Specialty Medicine products, and a continued focus on achievable
productivity gains, notably in supply chain and in
SG&A.
All
expectations, guidance and outlooks regarding future performance
and dividend payments should be read together with ‘Guidance
and outlooks, assumptions and cautionary statements’ on page
54.
|
|
If
exchange rates were to hold at the closing rates on 24 January 2024
($1.27/£1, €1.17/£1 and Yen 188/£1) for the
rest of 2024, the estimated impact on 2024 Sterling turnover growth
for GSK would be -3% and if exchange gains or losses were
recognised at the same level as in 2023, the estimated impact on
2024 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 11am GMT
(US EST at 6am) on 31 January 2024. Presentation materials will be
published on www.gsk.com prior to the webcast and a transcript of
the webcast will be published subsequently.
Notwithstanding
the inclusion of weblinks, information available on the
company’s website, or from non GSK sources, is not
incorporated by reference into this Results
Announcement.
|
|
||||||||||||
Performance:
turnover
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
2023
|
|
Q4 2023
|
|
||||||||
|
£m
|
|
Growth
AER%
|
|
Growth
CER%
|
|
£m
|
|
Growth
AER%
|
|
Growth
CER%
|
|
Shingles
|
3,446
|
|
16
|
|
17
|
|
908
|
|
18
|
|
23
|
|
Meningitis
|
1,260
|
|
13
|
|
14
|
|
273
|
|
20
|
|
26
|
|
RSV (Arexvy)
|
1,238
|
|
–
|
|
–
|
|
529
|
|
–
|
|
–
|
|
Influenza
|
504
|
|
(29)
|
|
(29)
|
|
95
|
|
(66)
|
|
(64)
|
|
Established
Vaccines
|
3,266
|
|
6
|
|
7
|
|
771
|
|
4
|
|
8
|
|
Vaccines ex COVID
|
9,714
|
|
23
|
|
24
|
|
2,576
|
|
28
|
|
33
|
|
Pandemic
vaccines
|
150
|
|
>100
|
|
>100
|
|
7
|
|
(88)
|
|
(86)
|
|
Vaccines
|
9,864
|
|
24
|
|
25
|
|
2,583
|
|
25
|
|
29
|
|
HIV
|
6,444
|
|
12
|
|
13
|
|
1,773
|
|
6
|
|
10
|
|
Respiratory/Immunology
and
Other
|
3,025
|
|
16
|
|
18
|
|
863
|
|
20
|
|
25
|
|
Oncology
|
731
|
|
21
|
|
23
|
|
244
|
|
55
|
|
62
|
|
Specialty Medicines ex COVID
|
10,200
|
|
14
|
|
15
|
|
2,880
|
|
13
|
|
17
|
|
Xevudy
|
44
|
|
(98)
|
|
(98)
|
|
13
|
|
(90)
|
|
(90)
|
|
Specialty Medicines
|
10,244
|
|
(9)
|
|
(8)
|
|
2,893
|
|
8
|
|
12
|
|
Respiratory
|
6,825
|
|
4
|
|
6
|
|
1,746
|
|
4
|
|
9
|
|
Other
General Medicines
|
3,395
|
|
(5)
|
|
2
|
|
830
|
|
(12)
|
|
(2)
|
|
General Medicines
|
10,220
|
|
1
|
|
5
|
|
2,576
|
|
(2)
|
|
5
|
|
Total
|
30,328
|
|
3
|
|
5
|
|
8,052
|
|
9
|
|
15
|
|
Total ex COVID
|
30,134
|
|
12
|
|
14
|
|
8,032
|
|
12
|
|
17
|
|
By Region:
|
|
|
|
|
|
|
|
|
|
|
|
|
US
|
15,820
|
|
9
|
|
9
|
|
4,380
|
|
21
|
|
26
|
|
Europe
|
6,564
|
|
3
|
|
2
|
|
1,657
|
|
–
|
|
–
|
|
International
|
7,944
|
|
(6)
|
|
1
|
|
2,015
|
|
(4)
|
|
6
|
|
Total
|
30,328
|
|
3
|
|
5
|
|
8,052
|
|
9
|
|
15
|
|
|
Turnover ex COVID is excluding COVID-19 solutions and is a non-IFRS
measure defined on page 53 with the reconciliation to the IFRS
measure Turnover included in the table above. Financial Performance
– Q4 2023 results unless otherwise stated, growth % and
commentary at CER.
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
Q4 2023
|
||||
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Vaccines
|
Total
|
9,864
|
24%
|
25%
|
|
2,583
|
25%
|
29%
|
Excluding COVID
|
9,714
|
23%
|
24%
|
|
2,576
|
28%
|
33%
|
|
Double-digit growth for Vaccines in the full year and quarter was
driven by the successful launch of Arexvy
in the US and continued strong uptake
of Shingrix
in International and Europe. Pandemic
vaccines sales mostly include GSK’s share of 2023 contracted
European volumes related to a COVID-19 booster vaccine co-developed
with Sanofi.
|
|
|
|
|
|
|
|
|
Shingles
|
3,446
|
16%
|
17%
|
|
908
|
18%
|
23%
|
|
Shingrix, a vaccine against herpes zoster (shingles), grew
17% full year and 23% in the quarter on increased demand and
favourable pricing, with Q4 2023 representing the highest ever
quarter of sales. Growth was driven by public funding expansion and
strong private uptake in International and Europe. These regions
represented 45% of global turnover, compared to a third in 2022,
with Shingrix
launched in 39 markets outside of the US, most of which have
cumulative immunisation rates below 4%. International sales were
driven by launch uptake across several markets, strong momentum and
channel inventory build in China due to transition between
distributors, and a new public programme in Australia. Sales in
Europe included deliveries for the UK National Immunisation
Programme which began offering Shingrix
vaccination in September. In the US, full year retail demand grew
7% while overall sales declined 4% versus a challenging comparator
period in which there was a higher non-retail purchasing. In Q4
2023 US turnover growth of 6% benefitted from planned wholesaler
inventory reductions in Q4 2022. The US cumulative immunisation
penetration at the end of Q3 2023 reached 35% of the more than 120
million US adults(1) who are currently
recommended to receive Shingrix,
up 7 percentage points since the same time last year.
|
|
|
|||||||
(1)
|
United States Census Bureau, International Database, Year
2023.
|
|
|
|
|
|
|
|
|
|
2023
|
|
Q4 2023
|
||||
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Meningitis
|
1,260
|
13%
|
14%
|
|
273
|
20%
|
26%
|
|
|
|
|
|
|
|
|
|
RSV (Arexvy)
|
1,238
|
–
|
–
|
|
529
|
–
|
–
|
|
Arexvy, the world’s first approved respiratory
syncytial virus (RSV) vaccine for older adults, achieved more than
£1.2 billion in sales driven by strong uptake and leading
market share, delivering an outstanding launch. Almost all sales
were in the US where Arexvy is
available in all major retail pharmacies with competitive
contracting in place. Retailers administered more than 90% of
doses, and Arexvy
achieved more than two-thirds of the share of retail vaccinations
in both the full year and quarter. Approximately 6 million of the
83 million US adults(1) aged 60 and older
at risk have been vaccinated with Arexvy.
|
|
|
|
|
|
|
|
|
Influenza
|
504
|
(29%)
|
(29%)
|
|
95
|
(66%)
|
(64%)
|
|
Fluarix/FluLaval sales declined in 2023 in line with
expectations driven by competitive pressure and lower market demand
primarily in the US, where the Q4 2023 sales decrease was also
negatively impacted by quarterly supply phasing and RAR
adjustments.
|
|
|
|
|
|
|
|
|
Established
Vaccines
|
3,266
|
6%
|
7%
|
|
771
|
4%
|
8%
|
|
Full
year Established Vaccines growth was driven by Rotarix
favourable US CDC stockpile movements, MMR/V vaccines increased
supply in International, and Hepatitis vaccine performance related
to the travel market recovery. In the quarter, growth was driven by
US CDC stockpile replenishment of Infanrix/Pediarix
in the US and also MMR/V vaccines increased supply in
International. Established Vaccines growth excluding the impact of
CDC stockpile movements was 4% in the full year and 6% in Q4
2023.
|
|
|
|
|
|
|
|
|
|
Specialty Medicines
|
Total
|
10,244
|
(9%)
|
(8%)
|
|
2,893
|
8%
|
12%
|
Excluding COVID
|
10,200
|
14%
|
15%
|
|
2,880
|
13%
|
17%
|
|
Specialty Medicines growth (excluding COVID-19 solutions) of 15%
full year and 17% in Q4 2023 reflected continued growth momentum on
the HIV portfolio, and growth acceleration in both Oncology and
Respiratory/Immunology and Other. COVID-19 solutions negatively
impacted growth full year by 23 percentage points and in the
quarter by 5 percentage points.
|
|
|
|
|
|
|
|
|
HIV
|
6,444
|
12%
|
13%
|
|
1,773
|
6%
|
10%
|
|
The
growth of HIV in Q4 2023 and full year was primarily driven by a 2
percentage point increase in market share within a broadly flat
global treatment market, attributable to patient demand for the
Oral 2DR (Dovato,
Juluca) and Long-Acting medicines (Cabenuva,
Apretude). Q4 2023 performance benefitted from continued
patient demand, driven by the Oral 2DR and Long-Acting medicines
which contributed approximately ten percentage points of growth.
Full year growth was driven by patient demand of ten percentage
points, with the remainder from favourable pricing dynamics and
tender growth. Dovato
continues to be the highest selling product in the HIV portfolio
with sales of £516 million in the quarter.
|
|
|
|
|
|
|
|
|
Oral
2DR and Long Acting
|
3,337
|
40%
|
40%
|
|
968
|
24%
|
28%
|
|
Oral
2DR (Dovato,
Juluca) and Long-Acting medicine (Cabenuva,
Apretude) sales growth continues and now represents 55% of
the total HIV portfolio compared to 46% for Q4 2022, driven by
market share growth of 4 percentage points versus Q4 2022.
Long-Acting medicine sales in the quarter were £275 million,
growing £133 million versus Q4 2022 and representing 16% of
total HIV portfolio. Cabenuva
sales in Q4 2023 were £223 million, reflecting strong patient
demand, high levels of market access, and reimbursement in
the US and EU.
|
|
|
|
|
|
|
|
|
Respiratory/Immunology
and Other
|
3,025
|
16%
|
18%
|
|
863
|
20%
|
25%
|
|
||||
This
therapy area includes sales of Nucala and
Benlysta, and Jesduvroq
in the US and Duvroq in
Japan for patients with anaemia due to chronic kidney disease.
There was consistent and sustained double-digit growth in the full
year in both Benlysta and
Nucala, with growth acceleration in Q4 2023.
|
(1)
|
United States Census Bureau, International Database, Year
2023.
|
|
|
|
|
|
|
|
|
|
2023
|
|
Q4 2023
|
||||
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Nucala
|
1,655
|
16%
|
18%
|
|
471
|
19%
|
25%
|
|
Nucala, is an IL-5 antagonist monoclonal antibody treatment
for severe asthma, with additional indications including chronic
rhinosinusitis with nasal polyps, eosinophilic granulomatosis with
polyangiitis (EGPA) and hypereosinophilic syndrome (HES). Continued
strong growth in all regions in the full year and in the quarter
reflected high patient demand in severe eosinophilic asthma, and
additionally from increasing sales and growth contributions from
the new indications. Growth in Q4 2023 accelerated due to stronger
US performance resulting from increasing new patient starts coupled
with channel inventory build.
|
|
|
|
|
|
|
|
|
Benlysta
|
1,349
|
18%
|
19%
|
|
389
|
19%
|
25%
|
|
Benlysta, a monoclonal antibody treatment for Lupus,
continues to show consistent growth representing strong demand in
US and Europe, with bio penetration and volume uptake in certain
International markets, particularly in Japan and China. Q4 2023
growth acceleration to 25% driven by US performance coupled with
the impacts of channel inventory build, uplifted the full year
growth to 19%.
|
|
|
|
|
|
|
|
|
Oncology
|
731
|
21%
|
23%
|
|
244
|
55%
|
62%
|
|
Oncology
demonstrated strong growth in the full year and in Q4 2023 driven
by Jemperli and
Zejula performance, and uptake of Ojjaara
post US launch in Q3 2023, partially offset by the impact of
Blenrep
withdrawal from the US market in November 2022. Growth of
Jemperli
continued to accelerate in Q4 2023, particularly in the US post
approval in Q3 2023 for frontline treatment in combination with
chemotherapy for patients with dMMR/MSI-H primary advanced or
recurrent endometrial cancer.
|
|
|
|
|
|
|
|
|
Zejula
|
523
|
13%
|
15%
|
|
152
|
22%
|
28%
|
|
Zejula, a PARP inhibitor treatment for ovarian cancer, grew
15% in the full year with strong growth from all regions, with US
growth in the first line indication more than offsetting the
reduction in use in second line following the update to US
prescribing information agreed with the FDA in Q4 2022.
Zejula
demonstrated strong growth of 28% in Q4 2023, driven by continued
US performance and growth following the launch of the tablet
formulation, positively impacted by RAR movements, as well as
continued positive momentum in Europe and
International.
|
|
|
|
|
|
|
|
|
General Medicines
|
10,220
|
1%
|
5%
|
|
2,576
|
(2%)
|
5%
|
|
Growth in the full year was driven by both Respiratory and Other
General Medicines, with ongoing strong demand for
Trelegy
in all regions, Anoro
in Europe and International, and a
continued post pandemic recovery of the antibiotic market in Europe
and International regions.
|
|
|
|
|
|
|
|
|
Respiratory
|
6,825
|
4%
|
6%
|
|
1,746
|
4%
|
9%
|
|
Performance
in the full year and in Q4 2023 reflected growth of Trelegy
and the single inhaled triple therapy class across all regions, and
of Anoro in
Europe and International.
|
|
|
|
|
|
|
|
|
Trelegy
|
2,202
|
27%
|
29%
|
|
589
|
29%
|
35%
|
|
Trelegy, is the most prescribed single inhaler triple
therapy (SITT) treatment worldwide for COPD and asthma. Strong
growth in the full year and in Q4 2023 was delivered across all
regions, reflecting increased patient demand, growth of the SITT
market and penetration of the class. Growth momentum continues,
supported by the outputs of recently updated primary care
guidelines from the Global Initiative for Chronic Obstructive Lung
Disease. Growth in Q4 2023 was positively impacted by favourable
RAR adjustments, accounting for 5 percentage points of
growth.
|
|
|
|
|
|
|
|
|
Seretide/Advair
|
1,139
|
(2%)
|
1%
|
|
276
|
(16%)
|
(12%)
|
|
Seretide/Advair is an ICS/LABA treatment for asthma and
COPD. In the full year 2023, Seretide/Advair
sales growth increased 1% primarily reflecting favourable US
pricing. However this was offset by generic erosion impacts in
Europe and certain International markets. In Q4 2023, sales
decreased 12% and reflected continued generic erosion from
competitor products in Europe and International. In the US,
growth was impacted by unfavourable RAR adjustments and the impact
of US of channel inventory reduction ahead of 2024 price
changes.
|
|
|
|
|
|
|
|
|
Other
General Medicines
|
3,395
|
(5%)
|
2%
|
|
830
|
(12%)
|
(2%)
|
|
Low
single digit growth of 2% full year reflected ongoing post pandemic
demand for anti-infectives in Europe and International, and certain
third party manufacturing arrangements. The decline of 2% in Q4
2023 is adversely impacted by unfavourable RAR adjustments,
accounting for 2 percentage points of decline. Overall growth in
this product group continues to be impacted by ongoing generic
competition.
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
Q4 2023
|
|||||
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
US
|
Total
|
15,820
|
9%
|
9%
|
|
4,380
|
21%
|
26%
|
|
Excluding COVID
|
15,810
|
15%
|
16%
|
|
4,369
|
21%
|
26%
|
In the
full year 2023, sales growth was adversely impacted by 7 percentage
points due to decreased sales of Xevudy,
however the decrease in sales had no impact in Q4 2023, as
Xevudy
sales in 2022 were predominantly realised in the first
quarter.
Vaccines
grew strongly in the full year and in Q4 2023 driven by
Arexvy
launch uptake and leading market share, partly offset by
competition and lower market demand for Influenza vaccines. Growth
benefitted from favourable US CDC stockpile movements by 4
percentage points in the full year and in the quarter.
Specialty
Medicines grew in the full year and in Q4 2023 driven by a strong
HIV performance, Benlysta
and Nucala
continued growth, and strong Oncology growth despite partial offset
from the impact of the withdrawal of Blenrep
in November 2022.
General
Medicines growth in Q4 2023 was largely driven by Trelegy
from increased patient demand and growth of the SITT market,
partially offset by Established Respiratory and Other General
Medicines.
|
|
|
|
|
|
|
|
|
|
|
Europe
|
Total
|
6,564
|
3%
|
2%
|
|
1,657
|
–
|
–
|
|
|
Excluding COVID
|
6,431
|
10%
|
8%
|
|
1,648
|
4%
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
Total
|
7,944
|
(6%)
|
1%
|
|
2,015
|
(4%)
|
6%
|
|
Excluding COVID
|
7,893
|
7%
|
15%
|
|
2,015
|
1%
|
12%
|
|
COVID-19 solutions
impacted growth in the full year by 14 percentage points and in the
quarter by 6 percentage points. Excluding the impact of COVID-19
solutions, International continued to grow in Q4 2023 by 12% and in
the full year by 15%, with strong growth across all product
groups.
The
growth in the quarter at AER of 1% compared to growth at CER of 12%
was driven by year on year exchange movements Q4 2023 vs Q4 2022 in
a number of emerging market countries.
Vaccines double
digit growth was driven by Shingrix
launch uptake across several markets, strong momentum and channel
inventory build in China, and a new public programme in Australia.
Established and Meningitis vaccines also contributed to the
growth.
Specialty Medicines
grew in HIV, Nucala, Benlysta
and Zejula.
General
Medicines growth was driven by Trelegy
and growth across Established Respiratory. Other General Medicines
growth was driven by Augmentin
on strong post pandemic antibiotic demand.
|
|
Financial
performance
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Results
|
2023
|
|
Q4 2023
|
||||||||
|
£m
|
|
%
AER
|
|
%
CER
|
|
£m
|
|
%
AER
|
|
%
CER
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
30,328
|
|
3
|
|
5
|
|
8,052
|
|
9
|
|
15
|
Cost of
sales
|
(8,565)
|
|
(10)
|
|
(10)
|
|
(2,418)
|
|
8
|
|
10
|
Selling,
general and administration
|
(9,385)
|
|
12
|
|
14
|
|
(2,678)
|
|
10
|
|
16
|
Research
and development
|
(6,223)
|
|
13
|
|
14
|
|
(2,047)
|
|
14
|
|
16
|
Royalty
income
|
953
|
|
26
|
|
26
|
|
235
|
|
14
|
|
14
|
Other
operating income/(expense)
|
(363)
|
|
|
|
|
|
(571)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
6,745
|
|
5
|
|
10
|
|
573
|
|
(69)
|
|
(60)
|
Net
finance expense
|
(677)
|
|
(16)
|
|
(15)
|
|
(193)
|
|
(21)
|
|
(18)
|
Share
of after tax profit/(loss) of associates
and joint ventures
|
(5)
|
|
|
|
|
|
(1)
|
|
|
|
|
Profit/(loss)
on disposal of interest in
associates
|
1
|
|
|
|
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
6,064
|
|
8
|
|
14
|
|
379
|
|
(77)
|
|
(67)
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
(756)
|
|
|
|
|
|
19
|
|
|
|
|
Tax rate %
|
12.5%
|
|
|
|
|
|
(5.0%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation
|
5,308
|
|
8
|
|
14
|
|
398
|
|
(76)
|
|
(67)
|
Profit
attributable to non-controlling
interests
|
380
|
|
|
|
|
|
48
|
|
|
|
|
Profit
attributable to shareholders
|
4,928
|
|
|
|
|
|
350
|
|
|
|
|
|
5,308
|
|
8
|
|
14
|
|
398
|
|
(76)
|
|
(67)
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share
|
121.6p
|
|
10
|
|
16
|
|
8.6p
|
|
(77)
|
|
(68)
|
Financial Performance – Q4 2023 results unless otherwise
stated, growth % and commentary at CER.
|
|
Adjusted results
Reconciliations
between Total results and Adjusted results for Q4 2023, Q4 2022,
Full Year 2023 and
Full Year 2022 are set out on pages 20, 21, 23 and 24.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
Q4 2023
|
||||||||
|
£m
|
|
%
AER
|
|
%
CER
|
|
£m
|
|
%
AER
|
|
%
CER
|
Turnover
|
30,328
|
|
3
|
|
5
|
|
8,052
|
|
9
|
|
15
|
Cost of
sales
|
(7,716)
|
|
(12)
|
|
(11)
|
|
(2,163)
|
|
7
|
|
8
|
Selling,
general and administration
|
(9,029)
|
|
11
|
|
13
|
|
(2,588)
|
|
6
|
|
12
|
Research
and development
|
(5,750)
|
|
14
|
|
14
|
|
(1,784)
|
|
17
|
|
20
|
Royalty
income
|
953
|
|
26
|
|
26
|
|
235
|
|
14
|
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
operating profit
|
8,786
|
|
8
|
|
12
|
|
1,752
|
|
10
|
|
21
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
profit before taxation
|
8,112
|
|
10
|
|
15
|
|
1,560
|
|
15
|
|
27
|
Taxation
|
(1,257)
|
|
10
|
|
15
|
|
(235)
|
|
37
|
|
52
|
Adjusted
profit after taxation
|
6,855
|
|
10
|
|
15
|
|
1,325
|
|
11
|
|
23
|
Adjusted
profit attributable to non-controlling interests
|
572
|
|
|
|
|
|
152
|
|
|
|
|
Adjusted
profit attributable to shareholders
|
6,283
|
|
|
|
|
|
1,173
|
|
|
|
|
|
6,855
|
|
10
|
|
15
|
|
1,325
|
|
11
|
|
23
|
Earnings
per share
|
155.1p
|
|
11
|
|
16
|
|
28.9p
|
|
12
|
|
25
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
Q4 2023
|
||||
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Cost of
sales
|
Total
|
8,565
|
(10%)
|
(10%)
|
|
2,418
|
8%
|
10%
|
% of sales
|
28.2%
|
(4.3%)
|
(4.6%)
|
|
30.0%
|
(0.3%)
|
(1.2%)
|
|
Adjusted
|
7,716
|
(12%)
|
(11%)
|
|
2,163
|
7%
|
8%
|
|
% of sales
|
25.4%
|
(4.4%)
|
(4.6%)
|
|
26.9%
|
(0.7%)
|
(1.5%)
|
Total
and Adjusted cost of sales as a percentage of sales decreased in
the full year and Q4 2023 primarily reflecting lower sales of lower
margin Xevudy
compared to 2022. Excluding Xevudy,
the full year and the quarter benefitted from an increasing margin
contribution from Vaccines sales, particularly the launch of
Arexvy in
Q3 2023 in the US and Shingrix
outside the US. In addition, Specialty Medicines, particularly HIV,
contributed to the improved margin, as well as continued
operational efficiencies. This was partly offset by adverse
inventory provision adjustments in the year as well as inflationary
impact on input costs.
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
Q4 2023
|
||||
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Selling,
general & administration
|
Total
|
9,385
|
12%
|
14%
|
|
2,678
|
10%
|
16%
|
% of sales
|
30.9%
|
2.4%
|
2.3%
|
|
33.3%
|
0.2%
|
0.4%
|
|
Adjusted
|
9,029
|
11%
|
13%
|
|
2,588
|
6%
|
12%
|
|
% of sales
|
29.8%
|
2.1%
|
1.9%
|
|
32.1%
|
(0.9%)
|
(0.7%)
|
|
|||||||||
Growth
in Total and Adjusted SG&A in 2023 primarily reflected
increased investment for growth in Vaccines, including disease
awareness, launch and global market expansion for Arexvy,
and investment behind global market expansion and disease awareness
for Shingrix.
In Specialty Medicines, increased investment was targeted behind
long-acting injectables in HIV and the launch of Ojjaara
for myelofibrosis in Oncology. This was partly offset by the
continuing benefit of restructuring and tight control of ongoing
costs. 2023 also reflected the Zejula
royalty dispute in Q1 2023. Total SG&A also included an
increase in significant legal costs (see details on page
22).
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
Q4 2023
|
||||
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Research
&
development
|
Total
|
6,223
|
13%
|
14%
|
|
2,047
|
14%
|
16%
|
% of sales
|
20.5%
|
1.8%
|
1.5%
|
|
25.4%
|
1.1%
|
0.3%
|
|
Adjusted
|
5,750
|
14%
|
14%
|
|
1,784
|
17%
|
20%
|
|
% of sales
|
19.0%
|
1.7%
|
1.4%
|
|
22.2%
|
1.5%
|
0.9%
|
In the
late stage, increased investment in Vaccines was driven by
continued acceleration and progression of the pipeline including
RSV, pneumococcal, mRNA and therapeutic HSV vaccines.
Respiratory/Immunology
investment continued in depemokimab in the Phase III programmes in
asthma and nasal polyps together with camlipixant a new asset for
refractory chronic cough, Nucala in
COPD, paediatric Benlysta
and CCL 17 in osteo arthritic pain. This was offset by decreased
expense in the completion of the clinical programme for
otilimab.
Infectious Diseases
investment in bepirovirsen for treatment of chronic hepatitis B
increased to support both monotherapy and combination programmes.
Investment in key assets in oncology continued such as Jemperli
and Ojjaara
but were offset by reduction in the terminated Cell and Gene
Therapy programme.
In the
early-stage, investment increased in IL18 for atopic dermatitis and
in the HIV portfolio, focused on next generation long-acting
treatments and preventative medicines.
In
addition to the key drivers for the full year, Q4 2023 also
reflected investments for continued acceleration of the portfolio
and the newly acquired camlipixant asset, together with the cost of
reorganisation of the Research unit.
Total
R&D included higher impairment charges compared with 2022 and
Q4 2022.
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
Q4 2023
|
||||
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Royalty
income
|
Total
|
953
|
26%
|
26%
|
|
235
|
14%
|
14%
|
|
Adjusted
|
953
|
26%
|
26%
|
|
235
|
14%
|
14%
|
Growth
in Total and Adjusted royalty income in the full year and Q4 2023
primarily related to Gardasil royalties, which were £472
million in 2023 and £80 million in the quarter, as well as
Kesimpta and Biktarvy royalties. The overwhelming majority of the
income from Gardasil royalties ceased at the end of
2023.
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
Q4 2023
|
||||
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Other
operating
income/(expense)
|
Total
|
(363)
|
(54%)
|
(54%)
|
|
(571)
|
>(100%)
|
>(100%)
|
|
The
full year other operating expense reflected a charge of £546
million (2022: £1,726 million) arising from the
remeasurement of contingent consideration liabilities and the
liabilities for the Pfizer put option, and a fair value loss of
£17 million (2022: £229 million gain) on the retained
stake in Haleon plc (Haleon), partly offset by £200 million
(2022: £306 million) of other net income primarily related to
equity investments and milestone income (including £49 million
dividends received from the retained investment in Haleon). In Q1
2022 upfront income of £0.9 billion was received from the
settlement with Gilead Sciences, Inc. (Gilead).
In Q4
2023 other operating expense reflected a charge of £430
million (Q4 2022: £3 million gain) arising from the
remeasurement of contingent consideration liabilities and the
liabilities for the Pfizer, Inc. (Pfizer) put option, and a fair
value loss of £172 million (Q4 2022: £606 million gain)
on the retained stake in Haleon, partly offset by net income of
£31 million (Q4 2022: £135 million) primarily received
from equity investments and milestone income.
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
Q4 2023
|
||||
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Operating
profit
|
Total
|
6,745
|
5%
|
10%
|
|
573
|
(69%)
|
(60%)
|
|
% of sales
|
22.2%
|
0.3%
|
1.0%
|
|
7.1%
|
(18.2%)
|
(16.6%)
|
|
Adjusted
|
8,786
|
8%
|
12%
|
|
1,752
|
10%
|
21%
|
|
% of sales
|
29.0%
|
1.2%
|
1.8%
|
|
21.8%
|
0.1%
|
1.2%
|
|
Total operating profit margin was higher in 2023 due to
profitable growth across the portfolio as well as favourable
movements in contingent consideration liabilities, partly offset by
an unfavourable comparison due to the £0.9 billion upfront
income received from the settlement with Gilead in Q1 2022. The
quarter is impacted by unfavourable movements in contingent
consideration liabilities and fair value losses on the retained
stake in Haleon (Q4 2022 fair value gains).
2023
and Q4 2023 Adjusted
operating profit benefitted from strong sales, favourable
product mix and increased royalty income partly offset by increased
investment behind product launches and in R&D. The full year
also included increased legal charges primarily relating to the
Zejula
royalty dispute.
In 2023
the adverse impact of lower sales of COVID-19 solutions was 4
percentage points of Adjusted operating profit growth, with a
reduction in Adjusted operating profit margin of 0.4 percentage
points. In the quarter the adverse impact of lower sales of
COVID-19 solutions was 5 percentage points of operating profit
growth, with minimal impact on Adjusted operating profit
margin.
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
Q4 2023
|
||||
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Adjusted
operating
profit
by segment
|
Commercial Operations
|
14,656
|
8%
|
10%
|
|
3,612
|
12%
|
20%
|
% of sales
|
48.3%
|
2.0%
|
2.1%
|
|
44.9%
|
1.2%
|
2.1%
|
|
R&D
|
(5,607)
|
11%
|
11%
|
|
(1,731)
|
14%
|
17%
|
|
Commercial
Operations Adjusted operating profit in full year and quarter
benefitted from strong sales and favourable product mix (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 2023.
The
R&D segment operating expenses growth in the full year was
driven by progression of the late stage in Vaccines,
Respiratory/Immunology and Infectious Diseases. This included
pneumococcal and mRNA programmes together with the newly acquired
camlipixant and ongoing investment in key programmes such as
depemokimab and bepirovirsen. Q4 2023 also reflected investments
for continued acceleration of the portfolio, together with the cost
of reorganisation of the Research unit.
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
Q4 2023
|
||||
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Net
finance costs
|
Total
|
677
|
(16%)
|
(15%)
|
|
193
|
(21%)
|
(18%)
|
|
Adjusted
|
669
|
(15%)
|
(15%)
|
|
191
|
(19%)
|
(16%)
|
|
The
decrease in net finance costs in the full year and Q4 2023 was
mainly driven by the net savings from maturing bonds including the
Sterling Notes repurchase in Q4 2022 and higher interest income on
cash, partly offset by higher interest on short-term
financing.
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
Q4 2023
|
||||
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Taxation
|
Total
|
756
|
7%
|
14%
|
|
(19)
|
>(100%)
|
(7%)
|
|
Tax rate %
|
12.5%
|
|
|
|
(5.0%)
|
|
|
|
Adjusted
|
1,257
|
10%
|
15%
|
|
235
|
37%
|
52%
|
|
Tax rate %
|
15.5%
|
|
|
|
15.1%
|
|
|
|
The
full year charge of £756 million represented an effective tax
rate on Total results of 12.5% and reflected the different tax
effects of the various Adjusting items.
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
Q4 2023
|
||||
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Non-controlling
interests
("NCIs")
|
Total
|
380
|
(17%)
|
(17%)
|
|
48
|
(62%)
|
(55%)
|
Adjusted
|
572
|
(4%)
|
(4%)
|
|
152
|
2%
|
9%
|
|
The
decrease in Total profit from continuing operations allocated to
NCIs in the full year was primarily driven by lower ViiV Healthcare
profits with an allocation of £374 million (2022: £416
million), as well as lower net profits in some of the Group's other
entities. Q4 2023 was impacted primarily by lower ViiV Healthcare
profits with an allocation of £50 million (Q4 2022: £124
million).
In the
full year, the decrease in Adjusted profit from continuing
operations allocated to NCIs reflected lower net profits in some of
the Group's other entities with NCIs, partly offset by higher
profits in ViiV Healthcare with an allocation of £566 million
(2022: £551 million). The increase in Q4 2023 primarily
reflected higher profit allocations from ViiV Healthcare of
£154 million (Q4 2022: £148 million), partly offset by
lower net profits in some of the Group’s other entities with
NCIs.
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
Q4 2023
|
||||
|
|
£p
|
AER
|
CER
|
|
£p
|
AER
|
CER
|
Earnings
per share
|
Total continuing
|
121.6p
|
10%
|
16%
|
|
8.6p
|
(77%)
|
(68%)
|
Adjusted
|
155.1p
|
11%
|
16%
|
|
28.9p
|
12%
|
25%
|
|
Adjusted EPS in the
full year and quarter reflected the growth in Adjusted Operating
profit as well as lower finance costs. 2023 growth also reflected a
favourable benefit from lower non-controlling
interests.
In 2023
and Q4 2023, lower sales from lower margin COVID-19 solutions
reduced Adjusted EPS by six and seven percentage points
respectively.
In
2023, the increase in Total continuing EPS primarily reflected
lower charges related to the remeasurement of contingent
consideration liabilities, partly offset by a fair value loss on
the retained stake in Haleon compared to a fair value gain in the
same period last year. In addition, there is an unfavourable
comparison due to upfront income received from the settlement with
Gilead in Q1 2022. In Q4 2023, the decrease in Total continuing EPS
is driven by higher charges related to the remeasurement of
contingent consideration liabilities and a fair value loss on the
retained stake in Haleon (Q4 2022 gain).
|
Currency
impact on results
The
results for the 2023 are based on average exchange rates,
principally £1/$1.24, £1/€1.15 and £1/Yen 175.
The results for Q4 2023 are based on average exchange rates,
principally £1/$1.25, £1/€1.15 and £1/Yen 183.
The period-end exchange rates were £1/$1.27,
£1/€1.15 and £1/Yen 180. Comparative exchange rates
are given on page 41.
|
|
|
|
|
|
|
|
|
|
|
|
Year to Date
|
|
Q4 2023
|
||||
|
|
£m/£p
|
AER
|
CER
|
|
£m/£p
|
AER
|
CER
|
Turnover
|
|
30,328
|
3%
|
5%
|
|
8,052
|
9%
|
15%
|
Earnings
per share
|
Total
|
121.6p
|
10%
|
16%
|
|
8.6p
|
(77%)
|
(68%)
|
Adjusted
|
155.1p
|
11%
|
16%
|
|
28.9p
|
12%
|
25%
|
|
|
In 2023
the adverse currency impact primarily reflected weakening of
emerging market currencies and the Yen against Sterling and
strengthening of Sterling against the US Dollar, partly offset by
weakening of Sterling against the Euro. Exchange gains or losses on
the settlement of intercompany transactions had a minimal impact on
Adjusted EPS.
In Q4
2023, the adverse currency impact primarily reflected the
strengthening of Sterling against the US Dollar as well as the
weakening of emerging market currencies against Sterling. Exchange
gains or losses on the settlement of intercompany transactions had
a one percentage point favourable impact on Adjusted
EPS.
|
Cash
generation
|
Cash flow
|
|||||||
|
2023
£m
|
|
2022
£m
|
|
Q4 2023
£m
|
|
Q4 2022
£m
|
|
|
|
|
|
|
|
|
Cash
generated from operations attributable to continuing
operations (£m)
|
8,096
|
|
7,944
|
|
3,681
|
|
2,101
|
Cash
generated from operations attributable to discontinued
operations (£m)
|
–
|
|
932
|
|
–
|
|
4
|
|
|
|
|
|
|
|
|
Total
cash generated from operations (£m)
|
8,096
|
|
8,876
|
|
3,681
|
|
2,105
|
|
|
|
|
|
|
|
|
Total
net cash generated from operating activities (£m)
|
6,768
|
|
7,403
|
|
3,196
|
|
1,905
|
|
|
|
|
|
|
|
|
Free
cash inflow/(outflow) from continuing operations*
(£m)
|
3,409
|
|
3,348
|
|
2,095
|
|
895
|
Free
cash flow from continuing operations growth (%)
|
2%
|
|
1%
|
|
>100%
|
|
(62%)
|
Free
cash flow conversion from continuing operations* (%)
|
69%
|
|
75%
|
|
>100%
|
|
60%
|
Total
net debt** (£m)
|
15,040
|
|
17,197
|
|
15,040
|
|
17,197
|
*
|
Free cash flow from continuing operations and free cash flow
conversion are defined on page 53. Free cash flow from continuing
operations is analysed on page 44.
|
**
|
Net debt is analysed on page 44.
|
2023
Cash
generated from operating activities from continuing operations was
£8,096 million (2022: £7,944 million). The increase
primarily reflected higher adjusted operating profit, a favourable
comparison on the timing of net Xevudy
related receipts and payments, and lower pension contributions,
partly offset by an unfavourable comparison due to the upfront
income from the settlement with Gilead received in Q1 2022,
increase in trade receivables due to higher sales including the
launch of Arexvy,
lower payable balances reflecting increased investment in 2022 and
higher inventory.
Total
contingent consideration cash payments in 2023 were £1,145
million (2022: £1,137 million), including cash payments made
to Shionogi & Co. Ltd (Shionogi) of £1,106 million (2022:
£1,100 million). £1,134 million (2022: £1,058
million) of these were recognised in cash flows from operating
activities.
Free
cash inflow was £3,409 million for 2023 (2022: £3,348
million inflow). In addition to the increase in cash generated from
operating activities from continuing operations, the increase in
free cash inflow in the full year was driven by lower net interest
paid and lower dividends paid to non-controlling interests, partly
offset by lower proceeds from the sale of intangible
assets.
Q4
2023
Cash
generated from operating activities from continuing operations for
the quarter was £3,681 million (Q4 2022:
£2,101 million). The increase primarily reflected higher
receivables' collections, driven by the launch of Arexvy in
Q3 2023, partly offset by timing of returns and
rebates.
Total
contingent consideration cash payments in the quarter were
£285 million (Q4 2022: £273 million), including cash
payments made to Shionogi of £272 million (Q4 2022:
£257 million). £281 million (Q4 2022: £269 million)
of these were recognised in cash flows from operating
activities.
Free
cash inflow was £2,095 million for the quarter (Q4 2022:
£895 million inflow). In addition to the increase in cash
generated from operating activities from continuing operations, the
increase in free cash inflow in the quarter was driven by lower net
interest paid and lower dividends paid to non-controlling
interests, partly offset by higher tax payments and lower proceeds
from the sale of intangible assets.
Total
Net debt
At
31 December 2023, net debt was £15,040 million, compared
with £17,197 million at 31 December 2022, comprising
gross debt of £18,018 million and cash and liquid investments
of £2,978 million. See net debt information on page
43.
Net
debt decreased by £2.2 billion primarily due to £3.4
billion free cash inflow, £1.9 billion proceeds from the
disposal of investments, including the partial sale of the retained
stake in Haleon, and net favourable exchange impacts of £0.6
billion from the translation of non-Sterling denominated debt.
These were partly offset by dividends paid to shareholders of
£2.2 billion and the net acquisition cost of BELLUS Health
Inc. (Bellus) for £1.5 billion.
At
31 December 2023, GSK had short-term borrowings (including
overdrafts and lease liabilities) repayable within 12 months of
£2,813 million with loans of £1,433 million repayable in
the subsequent year.
On 17
January 2024, GSK completed the sale of 300 million shares in
Haleon raising gross proceeds of £978 million. See post
balance sheet event note on page 44.
|
|
|
Contents
|
Page
|
Q4 2023
pipeline highlights
|
14
|
ESG
|
16
|
Total
and Adjusted results
|
18
|
Income
statement
|
26
|
Statement
of comprehensive income
|
27
|
Balance
sheet
|
28
|
Statement
of changes in equity
|
29
|
Cash
flow statement
|
30
|
Sales
tables
|
32
|
Segment
information
|
36
|
Legal
matters
|
38
|
Returns
to shareholders
|
39
|
Additional
information
|
40
|
Net
debt information
|
43
|
Post
balance sheet event note
|
44
|
Related
party transactions
|
44
|
R&D
commentary
|
45
|
Reporting
definitions
|
53
|
Guidance,
assumptions and cautionary statements
|
54
|
|
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
|
||||
|
|
|||
Q4 2023 pipeline highlights (since 1
November 2023)
|
|
|
|
|
|
|
Medicine/vaccine
|
Trial (indication, presentation)
|
Event
|
Regulatory approvals or other regulatory action
|
Jemperli
|
RUBY
(1L mismatch repair deficient/microsatellite instability-high
(dMMR/MSI-H) endometrial cancer)
|
Regulatory
approval (EU)
|
Omjjara (momelotinib)
|
MOMENTUM
(myelofibrosis with anaemia)
|
Regulatory
approval (EU)
|
|
Nucala
|
Severe
eosinophilic asthma
|
Regulatory
approval (CN)
|
|
Regulatory submissions or acceptances
|
Arexvy
|
RSV,
adults aged 50-59 years
|
Regulatory
acceptance (EU)
|
Arexvy
|
RSV,
adults aged 50-59 years
|
Regulatory
acceptance (JP)
|
|
Phase III data readouts or other significant events
|
Blenrep
|
DREAMM-7
(2L + multiple myeloma)
|
Positive
phase III data readout
|
Jemperli/Zejula
|
RUBY
part 2 (1L endometrial cancer)
|
Positive
phase III data readout
|
Anticipated news flow
|
|
|
|
|
Timing
|
Medicine/vaccine
|
Trial (indication, presentation)
|
Event
|
H1
2024
|
Arexvy
|
RSV,
older adults aged 50-59 years
|
Regulatory
submission (US)
|
gepotidacin
|
EAGLE-1
(urogenital gonorrhoea)
|
Phase
III data readout
|
|
MenABCWY
(gen 1)
vaccine
candidate
|
Meningococcal
ABCWY
|
Regulatory
submission (US)
|
|
depemokimab
|
SWIFT-1/2
(severe asthma)
|
Phase
III data readout
|
|
Nucala
|
Chronic
rhinosinusitis with nasal polyps
|
Regulatory
submission (CN)
|
|
Jemperli
|
RUBY
part 1 (OS overall population, 1L endometrial cancer)
|
Regulatory
submission (US)
|
|
momelotinib
|
MOMENTUM
(myelofibrosis with anaemia)
|
Regulatory
decision (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
submission (US)
|
|
MenABCWY
(gen 1)
vaccine
candidate
|
Meningococcal
ABCWY
|
Regulatory
submission (EU)
|
|
depemokimab
|
ANCHOR-1/2
(chronic rhinosinusitis with nasal polyps)
|
Phase
III data readout
|
|
depemokimab
|
ANCHOR-1/2
(chronic rhinosinusitis with nasal polyps)
|
Regulatory
submission (US)
|
|
depemokimab
|
SWIFT-1/2
(severe asthma)
|
Regulatory
submission (US)
|
|
Nucala
|
Chronic
rhinosinusitis with nasal polyps
|
Regulatory
decision (JP)
|
|
Nucala
|
MATINEE
(chronic obstructive pulmonary disease)
|
Phase
III data readout
|
|
Nucala
|
MATINEE
(chronic obstructive pulmonary disease)
|
Regulatory
submission (US)
|
|
Blenrep
|
DREAMM-8
(2L + multiple myeloma)
|
Phase
III data readout
|
|
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
|
Anticipated news flow continued
|
|
|
|
|
Timing
|
Medicine/vaccine
|
Trial (indication, presentation)
|
Event
|
2025
|
gepotidacin
|
EAGLE-2/3
(uncomplicated urinary tract infection)
|
Regulatory
decision (US)
|
gepotidacin
|
EAGLE-1
(urogenital gonorrhoea)
|
Regulatory
submission (US)
|
|
gepotidacin
|
EAGLE-1
(urogenital gonorrhoea)
|
Regulatory
decision (US)
|
|
MenABCWY
(gen 1) vaccine candidate
|
Meningitis
ABCWY
|
Regulatory
decision (US, EU)
|
|
tebipenem
pivoxil
|
PIVOT-PO
(complicated urinary tract infection)
|
Phase
III data readout
|
|
tebipenem
pivoxil
|
PIVOT-PO
(complicated urinary tract infection)
|
Regulatory
submission (US)
|
|
camlipixant
|
CALM-1/2
(refractory chronic cough)
|
Phase
III data readout
|
|
camlipixant
|
CALM-1/2
(refractory chronic cough)
|
Regulatory
submission
(US,
EU)
|
|
depemokimab
|
SWIFT-1/2
(severe asthma)
|
Regulatory
decision (US)
|
|
depemokimab
|
ANCHOR-1/2
(chronic rhinosinusitis with nasal polyps)
|
Regulatory
decision (US)
|
|
depemokimab
|
OCEAN
(eosinophilic granulomatosis with polyangiitis)
|
Phase
III data readout
|
|
Nucala
|
Chronic
rhinosinusitis with nasal polyps
|
Regulatory
decision (CN)
|
|
Nucala
|
MATINEE
(chronic obstructive pulmonary disease)
|
Regulatory
decision (US)
|
|
Nucala
|
MATINEE
(chronic obstructive pulmonary disease)
|
Regulatory
submission
(CN,
EU)
|
|
Blenrep
|
DREAMM-7/8
(2L+ multiple myeloma)
|
Regulatory
submission
(US,
EU, CN, JP)
|
|
Blenrep
|
DREAMM-7/8
(2L+ multiple myeloma)
|
Regulatory
decision
(US,
EU, CN, JP)
|
|
cobolimab
|
COSTAR,
(2L non-small cell lung cancer)
|
Regulatory
submission
(US,
EU)
|
|
Jemperli
|
RUBY
part 1 (1L endometrial cancer)
|
Regulatory
decision (US)
|
|
|
linerixibat
|
GLISTEN
(cholestatic pruritus in primary biliary cholangitis)
|
Regulatory
submission
(US,
EU, CN, JP)
|
|
linerixibat
|
GLISTEN
(cholestatic pruritus in primary biliary cholangitis)
|
Regulatory
decision (US)
|
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 Q3 2023 results. For more details on annual
updates, please see GSK’S ESG Performance Report 2022 here:
https://gsk.to/2022ESGPerf.
GSK’s 2023 ESG Performance Report will be published in Q1
2024.
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.
|
●
|
In
November, GSK shipped the first doses of the malaria vaccine,
Mosquirix
(RTS,S) to Cameroon, as part of the Unicef tender to supply 18
million doses over 3 years, potentially saving thousands of lives
every year. Cameroon is the first country outside of those involved
in the Malaria Vaccine Implementation Programme to receive doses,
marking an important moment as we commence the broader roll-out of
this vaccine. A further 1.7 million doses of the vaccine are
expected to arrive in Burkina Faso, Liberia, Niger and Sierra Leone
in early 2024.
|
|
●
|
In
December, GSK, in collaboration with the Global Coalition on Aging,
announced a new report from the IQVIA Institute for Human Data
Science. The report, funded by GSK, explores the role of social and
structural determinants of health in adult vaccine access and
uptake across five global cities with strong data about their
ageing populations. The data demonstrated vaccine use varies
substantially even within a single city and suggest that policies,
such as improved access to pharmacies or other points of
vaccination, should be implemented to drive equitable access to
adult immunisation. More information can be found here:
https://gsk.to/3HeGFpZ
|
|
●
|
In
December, GSK announced recipients of the inaugural grant programme
of the COiMMUNITY Initiative, a multipronged effort to support the
design of a more systematic, collaborative and equitable approach
to helping increase adult immunisation rates in the US. Each
grant-funded project is receiving between $50,000 and $175,000 out
of a total $1 million in funding to help address long-standing
barriers to adult immunisation in the US. More information can be
found here: https://gsk.to/47CdBDo
|
|
●
|
Performance
metrics related to access are updated annually with related details
in GSK’s ESG Performance Report 2022 on page 9.
|
|
Global health and health
security
Commitment: develop novel products and technologies to treat
and prevent priority diseases, including pandemic
threats.
|
●
|
Infectious
diseases (IDs) such as malaria, tuberculosis and enteric diseases
are among the leading causes of death globally, killing almost 9
million people each year. These diseases, which are often
preventable and treatable, disproportionately affect sub-Sahara
African populations. Research is critical for the development and
implementation of effective measures to meet the global health
challenges of eliminating IDs. GSK opened its call for research
proposals focussed on funding high-quality infectious disease
research that has the potential to deliver significant health
impact and develop future research leaders, with up to
£100,000 available per award. More information can be found
here: https://gsk.to/3RUpL4M
|
|
●
|
GSK has
partnered with Amref since 1988, making a positive impact on
malaria, TB, HIV, water/sanitation, health worker training, and
health system strengthening. Collaborations like these are vital,
especially now, to strengthen health systems in lower income
countries. Together, GSK and Amref are dedicated to bringing
lasting, sustainable change to countries across Africa. In January,
two new programmes launched on anti-microbial resistance (AMR) and
malaria. First, a three-year malaria programme to strengthen public
healthcare systems for improved diagnosis, treatment, prevention,
and surveillance of malaria cases in Kenya and Zambia. Second, a
12-month AMR programme which will conduct a review of AMR across
the Africa Region to inform interventions to strengthen AMR
programming.
|
|
●
|
Performance
metrics related to global health and health security are updated
annually with related details in GSK’s ESG Performance Report
2022 on page 13.
|
Progress since Q3 2023:
|
|
|
●
|
In
November, GSK announced it will start phase III trials of a low
carbon version of its metered dose inhaler, Ventolin
(salbutamol), using a next generation propellant, in 2024. If
successful, it has the potential to reduce greenhouse gas emissions
from use of the inhaler by approximately 90%, significantly
contributing to GSK’s ambitious net-zero climate targets as
the current propellant accounts for 49% of GSK’s carbon
footprint. GSK is investing £1 billion between 2020 and 2030
to achieve sustainability targets, including a significant
financial commitment towards this programme. More information can
be found here: https://gsk.to/3SeCLDA
|
Environment continued
|
●
|
GSK’s
net zero targets were approved by the Science Based Target
Initiative’s (SBTi) Corporate Net-Zero Standard, the
world’s only framework for corporate net-zero target setting
in line with climate science. The targets include an 80% reduction
in greenhouse gas emissions by 2030 and a 90% reduction by 2045
target. GSK aims to address the remaining emissions through high
quality offsets.
|
●
|
Performance
metrics related to environment are updated annually with related
details in GSK’s ESG Performance Report 2022 on page
16.
|
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 Q3 2023:
|
●
|
In
November, GSK announced the 20 non-profit IMPACT Award winners for
their outstanding contributions to improving health in the Triangle
(North Carolina) and Greater Philadelphia regions. The winners
receive $50,000 each to build their capacity and support their
organisations’ missions to improve the health and welfare of
individuals in their local communities who are often vulnerable or
marginalised. More information can be found here: https://gsk.to/3vy0bem
|
●
|
Performance
metrics related to diversity, equity and inclusion are updated
annually with related details in GSK’s ESG Performance Report
2022 on page 23.
|
Ethical
standards
Commitment: promote ethical behaviour across GSK’s
business by supporting its employees to do the right thing and
working with suppliers that share GSK’s standards and operate
responsibly.
|
|
|
|
●
|
Performance
metrics related to ethical standards are updated annually with
related details in GSK’s ESG Performance Report 2022 on page
26.
|
●
|
Performance
metrics related to product governance are updated annually with
related details in GSK’s ESG Performance Report 2022 on page
30.
|
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
|
84
|
86
|
1st in
the pharmaceutical industry group; Assessment conducted annually,
current score updated Nov 2023
|
Access
to Medicines Index
|
4.06
|
4.23
|
Led the
bi-annual index since its inception in 2008; Updated bi-annually,
current results from Nov 2022
|
Antimicrobial
resistance benchmark
|
84%
|
86%
|
Led the
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
|
16.7
|
18.6
|
1st
percentile in pharma subindustry group; Lower score represents
lower risk. Current ranking updated Sept 2023
|
MSCI
|
AA
|
AA
|
Last
rating action date: Sept 2023
|
Moody’s
ESG solutions
|
62
|
61
|
Current
score updated Aug 2023
|
ISS
Corporate Rating
|
B+
|
B+
|
Current
score updated June 2023
|
FTSE4Good
|
Member
|
Member
|
Member
since 2004, latest review in June 2023
|
ShareAction’s
Workforce Disclosure Initiative
|
79%
|
77%
|
Current
score updated Jan 2024
|
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 53.
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 20, 21, 23 and
24.
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 84% of the Total
earnings and 83% of the Adjusted earnings of ViiV Healthcare for
2023.
As
consideration for the acquisition of Shionogi’s interest in
the former Shionogi-ViiV Healthcare joint venture in 2012, Shionogi
received the 10% equity stake in ViiV Healthcare and ViiV
Healthcare also agreed to pay additional future cash consideration
to Shionogi, contingent on the future sales performance of the
products being developed by that joint venture, dolutegravir and
cabotegravir. Under IFRS 3 ‘Business combinations’, GSK
was required to provide for the estimated fair value of this
contingent consideration at the time of acquisition and is required
to update the liability to the latest estimate of fair value at
each subsequent period end. The liability for the contingent
consideration recognised in the balance sheet at the date of
acquisition was £659 million. Subsequent remeasurements are
reflected within other operating income/(expense) and within
Adjusting items in the income statement in each
period.
Cash
payments to settle the contingent consideration are made to
Shionogi by ViiV Healthcare each quarter, based on the actual sales
performance and other income of the relevant products in the
previous quarter. These payments reduce the balance sheet liability
and hence are not recorded in the income statement. The cash
payments made to Shionogi by ViiV Healthcare in year ended 31
December 2023 were £1,106 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 2023
and 2022 are set out below.
Year ended 31 December 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
|
30,328
|
|
|
|
|
|
|
|
|
|
|
|
30,328
|
Cost of
sales
|
(8,565)
|
|
647
|
|
|
|
164
|
|
13
|
|
25
|
|
(7,716)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
21,763
|
|
647
|
|
|
|
164
|
|
13
|
|
25
|
|
22,612
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administration
|
(9,385)
|
|
|
|
|
|
216
|
|
13
|
|
127
|
|
(9,029)
|
Research
and development
|
(6,223)
|
|
72
|
|
398
|
|
2
|
|
|
|
1
|
|
(5,750)
|
Royalty
income
|
953
|
|
|
|
|
|
|
|
|
|
|
|
953
|
Other
operating income/(expense)
|
(363)
|
|
|
|
|
|
|
|
546
|
|
(183)
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
6,745
|
|
719
|
|
398
|
|
382
|
|
572
|
|
(30)
|
|
8,786
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
finance cost
|
(677)
|
|
|
|
|
|
1
|
|
|
|
7
|
|
(669)
|
Share
of after tax profit/(loss) of associates
and joint venture
|
(5)
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
Profit/(loss)
on disposal of interest in
associates
|
1
|
|
|
|
|
|
|
|
|
|
(1)
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
6,064
|
|
719
|
|
398
|
|
383
|
|
572
|
|
(24)
|
|
8,112
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
(756)
|
|
(154)
|
|
(94)
|
|
(83)
|
|
(100)
|
|
(70)
|
|
(1,257)
|
Tax rate %
|
12.5%
|
|
|
|
|
|
|
|
|
|
|
|
15.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from continuing
operations
|
5,308
|
|
565
|
|
304
|
|
300
|
|
472
|
|
(94)
|
|
6,855
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to non-controlling
interests from continuing operations
|
380
|
|
|
|
|
|
|
|
192
|
|
|
|
572
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to shareholders from
continuing operations
|
4,928
|
|
565
|
|
304
|
|
300
|
|
280
|
|
(94)
|
|
6,283
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,308
|
|
565
|
|
304
|
|
300
|
|
472
|
|
(94)
|
|
6,855
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share from continuing
operations
|
121.6p
|
|
13.9p
|
|
7.5p
|
|
7.4p
|
|
6.9p
|
|
(2.2)p
|
|
155.1p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares (millions)
|
4,052
|
|
|
|
|
|
|
|
|
|
|
|
4,052
|
|
Year ended 31 December 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
|
29,324
|
|
|
|
|
|
|
|
|
|
|
|
|
|
29,324
|
Cost of
sales
|
(9,554)
|
|
|
|
648
|
|
|
|
102
|
|
45
|
|
18
|
|
(8,741)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
19,770
|
|
|
|
648
|
|
|
|
102
|
|
45
|
|
18
|
|
20,583
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administration
|
(8,372)
|
|
|
|
|
|
|
|
180
|
|
13
|
|
51
|
|
(8,128)
|
Research
and development
|
(5,488)
|
|
|
|
91
|
|
296
|
|
39
|
|
|
|
|
|
(5,062)
|
Royalty
income
|
758
|
|
|
|
|
|
|
|
|
|
|
|
|
|
758
|
Other
operating income/(expense)
|
(235)
|
|
|
|
|
|
|
|
|
|
1,692
|
|
(1,457)
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
6,433
|
|
|
|
739
|
|
296
|
|
321
|
|
1,750
|
|
(1,388)
|
|
8,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
finance cost
|
(803)
|
|
|
|
|
|
|
|
2
|
|
|
|
10
|
|
(791)
|
Share
of after tax profit/(loss) of
associates and joint ventures
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
5,628
|
|
|
|
739
|
|
296
|
|
323
|
|
1,750
|
|
(1,378)
|
|
7,358
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
(707)
|
|
|
|
(150)
|
|
(64)
|
|
(87)
|
|
(242)
|
|
112
|
|
(1,138)
|
Tax rate %
|
12.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from
continuing operations
|
4,921
|
|
|
|
589
|
|
232
|
|
236
|
|
1,508
|
|
(1,266)
|
|
6,220
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
after taxation from
discontinued operations and
other gains/(losses) from the
demerger
|
3,049
|
|
(3,049)
|
|
|
|
|
|
|
|
|
|
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Remeasurement
of discontinued
operations distributed to
shareholders on demerger
|
7,651
|
|
(7,651)
|
|
|
|
|
|
|
|
|
|
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from
discontinued operations
|
10,700
|
|
(10,700)
|
|
|
|
|
|
|
|
|
|
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit after taxation
for the period
|
15,621
|
|
(10,700)
|
|
589
|
|
232
|
|
236
|
|
1,508
|
|
(1,266)
|
|
6,220
|
Profit
attributable to non-
controlling interest from
continuing operations
|
460
|
|
|
|
|
|
|
|
|
|
135
|
|
|
|
595
|
Profit
attributable to shareholders
from continuing operations
|
4,461
|
|
|
|
589
|
|
232
|
|
236
|
|
1,373
|
|
(1,266)
|
|
5,625
|
Profit
attributable to non-
controlling interest from
discontinued operations
|
205
|
|
(205)
|
|
|
|
|
|
|
|
|
|
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to shareholders
from discontinued operations
|
10,495
|
|
(10,495)
|
|
|
|
|
|
|
|
|
|
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,621
|
|
(10,700)
|
|
589
|
|
232
|
|
236
|
|
1,508
|
|
(1,266)
|
|
6,220
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit attributable to
non-controlling interests
|
665
|
|
(205)
|
|
|
|
|
|
|
|
135
|
|
|
|
595
|
Total profit attributable to
shareholders
|
14,956
|
|
(10,495)
|
|
589
|
|
232
|
|
236
|
|
1,373
|
|
(1,266)
|
|
5,625
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,621
|
|
(10,700)
|
|
589
|
|
232
|
|
236
|
|
1,508
|
|
(1,266)
|
|
6,220
|
Earnings
per share from
continuing operations
|
110.8p
|
|
|
|
14.6p
|
|
5.8p
|
|
5.9p
|
|
34.1p
|
|
(31.5p)
|
|
139.7p
|
Earnings
per share from
discontinued operations
|
260.6p
|
|
(260.6)p
|
|
|
|
|
|
|
|
|
|
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
earnings per share
|
371.4p
|
|
(260.6)p
|
|
14.6p
|
|
5.8p
|
|
5.9p
|
|
34.1p
|
|
(31.5)p
|
|
139.7p
|
Weighted
average number of
shares (millions)
|
4,026
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,026
|
|
Major restructuring and integration
|
Total
Major restructuring charges from continuing operations incurred in
2023 were £382 million (2022: £321 million), analysed as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
£m
|
|
Non-
cash
£m
|
|
Total
£m
|
|
Cash
£m
|
|
Non-
cash
£m
|
|
Total
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
Separation
Preparation restructuring
programme
|
199
|
|
117
|
|
316
|
|
177
|
|
110
|
|
287
|
Significant
acquisitions
|
65
|
|
1
|
|
66
|
|
20
|
|
–
|
|
20
|
Legacy
programmes
|
(1)
|
|
1
|
|
–
|
|
9
|
|
5
|
|
14
|
|
263
|
|
119
|
|
382
|
|
206
|
|
115
|
|
321
|
The
Separation Preparation programme incurred cash charges of £199
million primarily from the restructuring of some commercial and
administrative functions as well as Global Supply Chain. The
non-cash charges of £117 million primarily reflected the
write-down of assets in administrative as well as manufacturing
locations.
The
benefit in the year 2023 from restructuring programmes was
£0.2 billion, primarily relating to the Separation Preparation
restructuring programme. The programme is now largely complete and
has delivered its target of £1.1 billion of annual savings,
with total costs still expected at £2.4 billion, with slightly
higher cash charges of £1.7 billion but lower non-cash charges
of £0.7 billion.
Costs
of significant acquisitions relate to integration costs of Sierra
Oncology Inc (Sierra) and Affinivax Inc. (Affinivax) which were
acquired in Q3 2022 and Bellus acquired in Q2 2023.
Transaction-related adjustments
Transaction-related
adjustments from continuing operations resulted in a net charge of
£572 million (2022: £1,750 million), the majority of
which related to charges/(credits) for the remeasurement of
contingent consideration liabilities, the liabilities for the
Pfizer put option, and Pfizer and Shionogi preferential dividends
in ViiV Healthcare.
|
Charge/(credit)
|
2023
£m
|
|
2022
£m
|
|
|
|
|
Contingent
consideration on former Shionogi-ViiV Healthcare joint
Venture
(including Shionogi preferential dividends)
|
934
|
|
1,431
|
ViiV
Healthcare put options and Pfizer preferential
dividends
|
(245)
|
|
85
|
Contingent
consideration on former Novartis Vaccines business
|
(187)
|
|
193
|
Contingent
consideration on acquisition of Affinivax
|
44
|
|
17
|
Other
adjustments
|
26
|
|
24
|
|
|
|
|
Total
transaction-related charges
|
572
|
|
1,750
|
The
£934 million charge relating to the contingent consideration
for the former Shionogi-ViiV Healthcare joint venture represented
an increase in the valuation of the contingent consideration due to
Shionogi, driven by £534 million from updated future sales
forecasts and exchange rates, and the unwind of the discount for
£400 million. The £245 million credit relating to the
ViiV Healthcare put option and Pfizer preferential dividends
represented a reduction in the valuation of the put option as a
result of updated exchange rates, sales forecasts and 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
19.
The
£187 million credit relating to the contingent consideration
on the former Novartis Vaccines business primarily relates to
changes to future sales forecasts.
The
£44 million charge relating to the contingent consideration on
the acquisition of Affinivax primarily relates to the unwind of the
discount.
Divestments,
significant legal charges, and other items
Divestments,
significant legal charges, and other items primarily included
£200 million of net income from dividends and milestones
related to investments, including a £49 million dividend
received from the retained investment in Haleon, partly offset by a
£17 million fair value loss on the investment in Haleon. Legal
charges provide for all significant legal matters, including
Zantac,
and are not broken out separately by litigation or investigation.
Significant legal charges in the year primarily reflected increased
legal charges for Zantac of
which the vast majority relate to the prospective legal costs for
the defence of the litigation.
|
The
reconciliations between Total results and Adjusted results for Q4
2023 and Q4 2022 are set out below.
|
|
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
|
8,052
|
|
|
|
|
|
|
|
|
|
|
|
8,052
|
|
Cost of
sales
|
(2,418)
|
|
170
|
|
|
|
67
|
|
13
|
|
5
|
|
(2,163)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
5,634
|
|
170
|
|
|
|
67
|
|
13
|
|
5
|
|
5,889
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administration
|
(2,678)
|
|
|
|
|
|
53
|
|
12
|
|
25
|
|
(2,588)
|
|
Research
and development
|
(2,047)
|
|
14
|
|
249
|
|
(2)
|
|
|
|
2
|
|
(1,784)
|
|
Royalty
income
|
235
|
|
|
|
|
|
|
|
|
|
|
|
235
|
|
Other
operating income/(expense)
|
(571)
|
|
|
|
|
|
|
|
430
|
|
141
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
573
|
|
184
|
|
249
|
|
118
|
|
455
|
|
173
|
|
1,752
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
finance cost
|
(193)
|
|
|
|
|
|
|
|
|
|
2
|
|
(191)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
of after tax profit/(loss) of associates
and joint ventures
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
379
|
|
184
|
|
249
|
|
118
|
|
455
|
|
175
|
|
1,560
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
19
|
|
(38)
|
|
(59)
|
|
(31)
|
|
(71)
|
|
(55)
|
|
(235)
|
|
Tax
rate %
|
(5.0%)
|
|
|
|
|
|
|
|
|
|
|
|
15.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from continuing
operations
|
398
|
|
146
|
|
190
|
|
87
|
|
384
|
|
120
|
|
1,325
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to non-controlling
interests from continuing operations
|
48
|
|
|
|
|
|
|
|
104
|
|
|
|
152
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to shareholders from
continuing operations
|
350
|
|
146
|
|
190
|
|
87
|
|
280
|
|
120
|
|
1,173
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
398
|
|
146
|
|
190
|
|
87
|
|
384
|
|
120
|
|
1,325
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share from continuing
operations
|
8.6p
|
|
3.6p
|
|
4.7p
|
|
2.1p
|
|
6.9p
|
|
3.0p
|
|
28.9p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares (millions)
|
4,056
|
|
|
|
|
|
|
|
|
|
|
|
4,056
|
|
||||||||||||||||
Three months ended 31 December 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
|
7,376
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,376
|
|
Cost of
sales
|
(2,238)
|
|
|
|
147
|
|
|
|
42
|
|
10
|
|
9
|
|
(2,030)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
5,138
|
|
|
|
147
|
|
|
|
42
|
|
10
|
|
9
|
|
5,346
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administration
|
(2,438)
|
|
|
|
|
|
|
|
3
|
|
13
|
|
(13)
|
|
(2,435)
|
|
Research
and development
|
(1,797)
|
|
|
|
16
|
|
240
|
|
19
|
|
|
|
|
|
(1,522)
|
|
Royalty
income
|
206
|
|
|
|
|
|
|
|
|
|
|
|
|
|
206
|
|
Other
operating income/(expense)
|
759
|
|
|
|
|
|
|
|
(1)
|
|
(17)
|
|
(741)
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
1,868
|
|
|
|
163
|
|
240
|
|
63
|
|
6
|
|
(745)
|
|
1,595
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
finance cost
|
(244)
|
|
|
|
|
|
|
|
1
|
|
|
|
8
|
|
(235)
|
|
Share
of after tax losses of
associates and joint ventures
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
1,626
|
|
|
|
163
|
|
240
|
|
64
|
|
6
|
|
(737)
|
|
1,362
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
(1)
|
|
|
|
(31)
|
|
(54)
|
|
(36)
|
|
(5)
|
|
(45)
|
|
(172)
|
|
Tax rate %
|
0.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.6%
|
|
Profit after taxation from
continuing operations
|
1,625
|
|
|
|
132
|
|
186
|
|
28
|
|
1
|
|
(782)
|
|
1,190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
after taxation from
discontinued operations and
other gains/(losses) from the
demerger
|
(5)
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from
discontinued operations
|
(5)
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit after taxation for
the period
|
1,620
|
|
5
|
|
132
|
|
186
|
|
28
|
|
1
|
|
(782)
|
|
1,190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to non-
controlling interest from
continuing operations
|
125
|
|
|
|
|
|
|
|
|
|
24
|
|
|
|
149
|
|
Profit
attributable to shareholders
from continuing operations
|
1,500
|
|
|
|
132
|
|
186
|
|
28
|
|
(23)
|
|
(782)
|
|
1,041
|
|
Profit
attributable to non-
controlling interest from
discontinued operations
|
–
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to
shareholders from
discontinued operations
|
(5)
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
–
|
|
|
1,620
|
|
5
|
|
132
|
|
186
|
|
28
|
|
1
|
|
(782)
|
|
1,190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit attributable to
non-controlling interests
|
125
|
|
–
|
|
|
|
|
|
|
|
24
|
|
|
|
149
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit attributable to
shareholders
|
1,495
|
|
5
|
|
132
|
|
186
|
|
28
|
|
(23)
|
|
(782)
|
|
1,041
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,620
|
|
5
|
|
132
|
|
186
|
|
28
|
|
1
|
|
(782)
|
|
1,190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share from
continuing operations
|
37.2p
|
|
|
|
3.3p
|
|
4.6p
|
|
0.7p
|
|
(0.6p)
|
|
(19.4)p
|
|
25.8p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share from
discontinued operations
|
(0.1p)
|
|
0.1p
|
|
|
|
|
|
|
|
|
|
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total earnings per share
|
37.1p
|
|
0.1p
|
|
3.3p
|
|
4.6p
|
|
0.7p
|
|
(0.6p)
|
|
(19.4)p
|
|
25.8p
|
|
Weighted
average number of
shares (millions)
|
4,034
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,034
|
|
Total
Major restructuring charges from continuing operations incurred in
Q4 2023 were £118 million (Q4 2022: £63 million),
analysed as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2023
|
|
Q4
2022
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
£m
|
|
Non-
cash
£m
|
|
Total
£m
|
|
Cash
£m
|
|
Non-
cash
£m
|
|
Total
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
Separation
Preparation restructuring
programme
|
92
|
|
16
|
|
108
|
|
100
|
|
(54)
|
|
46
|
Significant
acquisitions
|
11
|
|
–
|
|
11
|
|
10
|
|
–
|
|
10
|
Legacy
programmes
|
(2)
|
|
1
|
|
(1)
|
|
6
|
|
1
|
|
7
|
|
101
|
|
17
|
|
118
|
|
116
|
|
(53)
|
|
63
|
The
Separation Preparation programme incurred cash charges of £92
million primarily from the restructuring of some commercial and
administrative functions as well as Global Supply Chain. The
non-cash charges of £16 million primarily reflected the write
down of assets in manufacturing locations.
Costs
of significant acquisitions relate to integration costs of Sierra
and Affinivax which were acquired in Q3 2022 and Bellus acquired in
Q2 2023.
Transaction-related
adjustments
Transaction-related
adjustments from continuing operations resulted in a net charge of
£455 million (Q4 2022: £6 million) the majority of which
related to charges/credits for the remeasurement of contingent
consideration liabilities, the liabilities for the Pfizer put
option, and Pfizer and Shionogi preferential dividends in ViiV
Healthcare.
|
Charge/(credit)
|
Q4 2023
£m
|
|
Q4
2022
£m
|
Contingent
consideration on former Shionogi-ViiV Healthcare joint
Venture
(including Shionogi preferential dividends)
|
528
|
|
8
|
ViiV
Healthcare put options and Pfizer preferential
dividends
|
(42)
|
|
(116)
|
Contingent
consideration on former Novartis Vaccines business
|
(53)
|
|
93
|
Contingent
consideration on acquisition of Affinivax
|
(3)
|
|
12
|
Other
adjustments
|
25
|
|
9
|
|
|
|
|
Total
transaction-related charges
|
455
|
|
6
|
The
£528 million charge relating to the contingent consideration
for the former Shionogi-ViiV Healthcare joint venture represented
an increase in the valuation of the contingent consideration due to
Shionogi, driven by £429 million from updated sales forecasts
and exchange rates, and the unwind of the discount for £99
million. The £42 million credit relating to the ViiV
Healthcare put option and Pfizer preferential dividends represented
a decrease in the valuation of the put option primarily as a result
of updated exchange rates partly offset by higher 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
19.
The
£53 million credit relating to the contingent consideration on
the former Novartis Vaccines business primarily relates to changes
to future sales forecasts.
The
£3 million credit relating to the contingent consideration on
the acquisition of Affinivax primarily relates to updated future
assumptions, partly offset by the unwind of the
discount.
Divestments,
significant legal charges, and other items
Divestments,
significant legal charges, and other items primarily included fair
value losses on investments, including a £172 million fair
value loss on the investment in Haleon, partly offset by net income
of £31 million primarily received from equity investments and
milestone income. 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.
|
Financial
information
|
Income
statements
|
|
|
|
|
|
|
|
|
|
2023
£m
|
|
2022
£m
|
|
Q4 2023
£m
|
|
Q4
2022
£m
|
|
|
|
|
|
|
|
|
TURNOVER
|
30,328
|
|
29,324
|
|
8,052
|
|
7,376
|
|
|
|
|
|
|
|
|
Cost of
sales
|
(8,565)
|
|
(9,554)
|
|
(2,418)
|
|
(2,238)
|
Gross
profit
|
21,763
|
|
19,770
|
|
5,634
|
|
5,138
|
|
|
|
|
|
|
|
|
Selling,
general and administration
|
(9,385)
|
|
(8,372)
|
|
(2,678)
|
|
(2,438)
|
Research
and development
|
(6,223)
|
|
(5,488)
|
|
(2,047)
|
|
(1,797)
|
Royalty
income
|
953
|
|
758
|
|
235
|
|
206
|
Other
operating income/(expense)
|
(363)
|
|
(235)
|
|
(571)
|
|
759
|
|
|
|
|
|
|
|
|
OPERATING PROFIT
|
6,745
|
|
6,433
|
|
573
|
|
1,868
|
|
|
|
|
|
|
|
|
Finance
income
|
115
|
|
76
|
|
29
|
|
26
|
Finance
expense
|
(792)
|
|
(879)
|
|
(222)
|
|
(270)
|
Share
of after tax profit/(loss) of associates and joint
ventures
|
(5)
|
|
(2)
|
|
(1)
|
|
2
|
Profit/(loss)
on disposal of interests in associates
|
1
|
|
–
|
|
–
|
|
–
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAXATION
|
6,064
|
|
5,628
|
|
379
|
|
1,626
|
|
|
|
|
|
|
|
|
Taxation
|
(756)
|
|
(707)
|
|
19
|
|
(1)
|
Tax rate %
|
12.5%
|
|
12.6%
|
|
(5.0%)
|
|
0.1%
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAXATION FROM CONTINUING OPERATIONS
|
5,308
|
|
4,921
|
|
398
|
|
1,625
|
|
|
|
|
|
|
|
|
Profit
after taxation from discontinued operations
and other gains from the demerger
|
–
|
|
3,049
|
|
–
|
|
(5)
|
|
|
|
|
|
|
|
|
Remeasurement
of discontinued operations distributed
to shareholders on demerger
|
–
|
|
7,651
|
|
–
|
|
–
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAXATION FROM DISCONTINUED OPERATIONS
|
–
|
|
10,700
|
|
–
|
|
(5)
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAXATION FOR THE PERIOD
|
5,308
|
|
15,621
|
|
398
|
|
1,620
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling interests from
continuing operations
|
380
|
|
460
|
|
48
|
|
125
|
Profit
attributable to shareholders from continuing
operations
|
4,928
|
|
4,461
|
|
350
|
|
1,500
|
Profit
attributable to non-controlling interests from
discontinued operations
|
–
|
|
205
|
|
–
|
|
–
|
Profit
attributable to shareholders from discontinued
operations
|
–
|
|
10,495
|
|
–
|
|
(5)
|
|
5,308
|
|
15,621
|
|
398
|
|
1,620
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling interests
|
380
|
|
665
|
|
48
|
|
125
|
Profit
attributable to shareholders
|
4,928
|
|
14,956
|
|
350
|
|
1,495
|
|
|
|
|
|
|
|
|
|
5,308
|
|
15,621
|
|
398
|
|
1,620
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE FROM CONTINUING OPERATIONS
|
121.6p
|
|
110.8p
|
|
8.6p
|
|
37.2p
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE FROM DISCONTINUED OPERATIONS
|
–
|
|
260.6p
|
|
–
|
|
(0.1p)
|
|
|
|
|
|
|
|
|
TOTAL EARNINGS PER SHARE
|
121.6p
|
|
371.4p
|
|
8.6p
|
|
37.1p
|
|
|
|
|
|
|
|
|
Diluted
earnings per share from continuing operations
|
119.9p
|
|
109.2p
|
|
8.5p
|
|
36.6p
|
Diluted
earnings per share from discontinued operations
|
–
|
|
257.0p
|
|
–
|
|
(0.1p)
|
Total
diluted earnings per share
|
119.9p
|
|
366.2p
|
|
8.5p
|
|
36.5p
|
|
||||||||
Statement of comprehensive
income
|
|
|
|
|
|
|
|
|
|
2023
£m
|
|
2022
£m
|
|
Q4 2023
£m
|
|
Q4
2022
£m
|
|
|
|
|
|
|
|
|
Total
profit for the period
|
5,308
|
|
15,621
|
|
398
|
|
1,620
|
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently to continuing
operations income statement:
|
|
|
|
|
|
|
|
Exchange
movements on overseas net assets and
net investment hedges
|
(22)
|
|
113
|
|
65
|
|
218
|
Reclassification
of exchange movements on liquidation
or disposal of overseas subsidiaries and associates
|
(34)
|
|
2
|
|
(14)
|
|
(8)
|
Fair
value movements on cash flow hedges
|
(1)
|
|
(18)
|
|
(2)
|
|
(31)
|
Deferred
tax on fair value movements on cash flow
hedges
|
1
|
|
9
|
|
2
|
|
(8)
|
Reclassification
of cash flow hedges to income
statement
|
4
|
|
14
|
|
–
|
|
2
|
|
|
|
|
|
|
|
|
|
(52)
|
|
120
|
|
51
|
|
173
|
|
|
|
|
|
|
|
|
Items that will not be reclassified to continuing operations income
statement:
|
|
|
|
|
|
|
|
Exchange
movements on overseas net assets of
non-controlling interests
|
(25)
|
|
(28)
|
|
(8)
|
|
(23)
|
Fair
value movements on equity investments
|
(244)
|
|
(754)
|
|
115
|
|
(106)
|
Tax on
fair value movements on equity investments
|
14
|
|
56
|
|
(21)
|
|
(5)
|
Fair
value movements on cash flow hedges
|
(40)
|
|
(6)
|
|
(6)
|
|
(6)
|
Remeasurement
gains/(losses) on defined benefit plans
|
71
|
|
(786)
|
|
287
|
|
(104)
|
Tax on
remeasurement losses/(gains) on defined
benefit plans
|
(41)
|
|
211
|
|
(96)
|
|
34
|
|
|
|
|
|
|
|
|
|
(265)
|
|
(1,307)
|
|
271
|
|
(210)
|
|
|
|
|
|
|
|
|
Other
comprehensive expense for the period from
continuing operations
|
(317)
|
|
(1,187)
|
|
322
|
|
(37)
|
|
|
|
|
|
|
|
|
Other
comprehensive income for the period from
discontinued operations
|
–
|
|
356
|
|
–
|
|
23
|
|
|
|
|
|
|
|
|
Total
comprehensive income for the period
|
4,991
|
|
14,790
|
|
720
|
|
1,606
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income for the period attributable to:
|
|
|
|
|
|
|
|
Shareholders
|
4,636
|
|
14,153
|
|
680
|
|
1,504
|
Non-controlling
interests
|
355
|
|
637
|
|
40
|
|
102
|
|
|
|
|
|
|
|
|
|
4,991
|
|
14,790
|
|
720
|
|
1,606
|
|
|||
Balance
sheet
|
|||
|
|
|
|
|
31 December 2023
£m
|
|
31 December
2022
£m
|
ASSETS
|
|
|
|
Non-current assets
|
|
|
|
Property,
plant and equipment
|
9,020
|
|
8,933
|
Right
of use assets
|
937
|
|
687
|
Goodwill
|
6,811
|
|
7,046
|
Other
intangible assets
|
14,768
|
|
14,318
|
Investments
in associates and joint ventures
|
55
|
|
74
|
Other
investments
|
1,137
|
|
1,467
|
Deferred
tax assets
|
6,049
|
|
5,658
|
Other
non-current assets
|
1,584
|
|
1,194
|
|
|
|
|
Total non-current assets
|
40,361
|
|
39,377
|
|
|
|
|
Current assets
|
|
|
|
Inventories
|
5,498
|
|
5,146
|
Current
tax recoverable
|
373
|
|
405
|
Trade
and other receivables
|
7,385
|
|
7,053
|
Derivative
financial instruments
|
130
|
|
190
|
Current
equity investments
|
2,204
|
|
4,087
|
Liquid
investments
|
42
|
|
67
|
Cash
and cash equivalents
|
2,936
|
|
3,723
|
Assets
held for sale
|
76
|
|
98
|
|
|
|
|
Total current assets
|
18,644
|
|
20,769
|
|
|
|
|
TOTAL ASSETS
|
59,005
|
|
60,146
|
|
|
|
|
LIABILITIES
|
|
|
|
Current liabilities
|
|
|
|
Short-term
borrowings
|
(2,813)
|
|
(3,952)
|
Contingent
consideration liabilities
|
(1,053)
|
|
(1,289)
|
Trade
and other payables
|
(15,844)
|
|
(16,263)
|
Derivative
financial instruments
|
(114)
|
|
(183)
|
Current
tax payable
|
(500)
|
|
(471)
|
Short-term
provisions
|
(744)
|
|
(652)
|
|
|
|
|
Total current liabilities
|
(21,068)
|
|
(22,810)
|
|
|
|
|
Non-current liabilities
|
|
|
|
Long-term
borrowings
|
(15,205)
|
|
(17,035)
|
Corporation
tax payable
|
(75)
|
|
(127)
|
Deferred
tax liabilities
|
(311)
|
|
(289)
|
Pensions
and other post-employment benefits
|
(2,340)
|
|
(2,579)
|
Other
provisions
|
(495)
|
|
(532)
|
Contingent
consideration liabilities
|
(5,609)
|
|
(5,779)
|
Other
non-current liabilities
|
(1,107)
|
|
(899)
|
|
|
|
|
Total non-current liabilities
|
(25,142)
|
|
(27,240)
|
|
|
|
|
TOTAL LIABILITIES
|
(46,210)
|
|
(50,050)
|
|
|
|
|
NET ASSETS
|
12,795
|
|
10,096
|
|
|
|
|
EQUITY
|
|
|
|
Share
capital
|
1,348
|
|
1,347
|
Share
premium account
|
3,451
|
|
3,440
|
Retained
earnings
|
7,239
|
|
4,363
|
Other
reserves
|
1,309
|
|
1,448
|
|
|
|
|
Shareholders’ equity
|
13,347
|
|
10,598
|
|
|
|
|
Non-controlling
interests
|
(552)
|
|
(502)
|
|
|
|
|
TOTAL EQUITY
|
12,795
|
|
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 year
|
|
|
|
|
4,928
|
|
|
|
4,928
|
|
380
|
|
5,308
|
Other comprehensive
income/(expense) for the year
|
|
|
|
|
(45)
|
|
(247)
|
|
(292)
|
|
(25)
|
|
(317)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income/(expense)
for the year
|
|
|
|
|
4,883
|
|
(247)
|
|
4,636
|
|
355
|
|
4,991
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
to non-controlling interests
|
|
|
|
|
|
|
|
|
|
|
(412)
|
|
(412)
|
Contributions
from non-controlling
interests
|
|
|
|
|
|
|
|
|
|
|
7
|
|
7
|
Dividends
to shareholders
|
|
|
|
|
(2,247)
|
|
|
|
(2,247)
|
|
|
|
(2,247)
|
Realised
after tax losses on disposal
or liquidation of equity investments
|
|
|
|
|
(26)
|
|
26
|
|
|
|
|
|
–
|
Share
of associates and joint ventures
realised profit/(loss) on disposal of equity
investments
|
|
|
|
|
(7)
|
|
7
|
|
|
|
|
|
–
|
Shares
issued
|
1
|
|
9
|
|
|
|
|
|
10
|
|
|
|
10
|
Write-down
on shares held by ESOP
Trusts
|
|
|
|
|
(324)
|
|
324
|
|
|
|
|
|
–
|
Shares
acquired by ESOP Trusts
|
|
|
2
|
|
283
|
|
(285)
|
|
|
|
|
|
–
|
Share-based
incentive plans
|
|
|
|
|
307
|
|
|
|
307
|
|
|
|
307
|
Hedging
gain/(loss) after taxation
transferred to non-financial assets
|
|
|
|
|
|
|
36
|
|
36
|
|
|
|
36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax on
share-based incentive plans
|
|
|
|
|
7
|
|
|
|
7
|
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 December 2023
|
1,348
|
|
3,451
|
|
7,239
|
|
1,309
|
|
13,347
|
|
(552)
|
|
12,795
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 year
|
|
|
|
|
14,956
|
|
–
|
|
14,956
|
|
665
|
|
15,621
|
Other comprehensive
income/(expense) for the year
|
|
|
|
|
(89)
|
|
(714)
|
|
(803)
|
|
(28)
|
|
(831)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income/(expense)
for the year
|
|
|
|
|
14,867
|
|
(714)
|
|
14,153
|
|
637
|
|
14,790
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
to non-controlling interests
|
|
|
|
|
|
|
|
|
|
|
(1,409)
|
|
(1,409)
|
Non-cash
distribution to non-controlling
interests
|
|
|
|
|
|
|
|
|
|
|
(2,960)
|
|
(2,960)
|
Contributions
from non-controlling
interests
|
|
|
|
|
|
|
|
|
|
|
8
|
|
8
|
Changes
to non-controlling interest
|
|
|
|
|
|
|
|
|
|
|
(20)
|
|
(20)
|
Deconsolidation
of former subsidiaries
|
|
|
|
|
|
|
|
|
|
|
(3,045)
|
|
(3,045)
|
Dividends
to shareholders
|
|
|
|
|
(3,467)
|
|
|
|
(3,467)
|
|
|
|
(3,467)
|
Non-cash
dividend to shareholders
|
|
|
|
|
(15,526)
|
|
|
|
(15,526)
|
|
|
|
(15,526)
|
Realised
after tax losses on disposal or
liquidation of equity investments
|
|
|
|
|
14
|
|
(14)
|
|
|
|
|
|
–
|
Share
of associates and joint ventures
realised profits on disposal of equity
investments
|
|
|
|
|
7
|
|
(7)
|
|
|
|
|
|
–
|
Share
issued
|
|
|
25
|
|
|
|
|
|
25
|
|
|
|
25
|
Write-down
of shares held by ESOP Trusts
|
|
|
|
|
(911)
|
|
911
|
|
|
|
|
|
–
|
Shares
acquired by ESOP Trusts
|
|
|
114
|
|
1,086
|
|
(1,200)
|
|
|
|
|
|
–
|
Share-based
incentive plans
|
|
|
|
|
357
|
|
|
|
357
|
|
|
|
357
|
Tax on
share-based incentive plans
|
|
|
|
|
(8)
|
|
|
|
(8)
|
|
|
|
(8)
|
Hedging
gain/(loss) after taxation
transferred to non-financial assets
|
|
|
|
|
|
|
9
|
|
9
|
|
|
|
9
|
At
31 December 2022
|
1,347
|
|
3,440
|
|
4,363
|
|
1,448
|
|
10,598
|
|
(502)
|
|
10,096
|
Cash flow statement year
ended 31 December 2023
|
|
|
|
|
|
2023
£m
|
|
2022
£m
|
Profit after tax from continuing operations
|
5,308
|
|
4,921
|
Tax on
profits
|
756
|
|
707
|
Share
of after tax loss/(profit) of associates and joint
ventures
|
5
|
|
2
|
(Profit)/loss
on disposal of interest in associates and joint
ventures
|
(1)
|
|
–
|
Net
finance expense
|
677
|
|
803
|
Depreciation,
amortisation and other adjusting items
|
2,849
|
|
2,298
|
Increase/(decrease)
in working capital
|
(1,233)
|
|
67
|
Contingent
consideration paid
|
(1,134)
|
|
(1,058)
|
Decrease
in other net liabilities (excluding contingent consideration
paid)
|
869
|
|
204
|
Cash generated from operations attributable to continuing
operations
|
8,096
|
|
7,944
|
Taxation
paid
|
(1,328)
|
|
(1,310)
|
Net cash inflow/(outflow) from continuing operating
activities
|
6,768
|
|
6,634
|
Cash
generated from operations attributable to discontinued
operations
|
–
|
|
932
|
Taxation
paid from discontinued operations
|
–
|
|
(163)
|
Net operating cash flows attributable to discontinued
operations
|
–
|
|
769
|
Total net cash inflows/(outflows) from operating
activities
|
6,768
|
|
7,403
|
Cash flow from investing activities
|
|
|
|
Purchase
of property, plant and equipment
|
(1,314)
|
|
(1,143)
|
Proceeds
from sale of property, plant and equipment
|
28
|
|
146
|
Purchase
of intangible assets
|
(1,030)
|
|
(1,115)
|
Proceeds
from sale of intangible assets
|
12
|
|
196
|
Purchase
of equity investments
|
(123)
|
|
(143)
|
(Increase)/decrease
in liquid investments
|
72
|
|
1
|
Purchase
of businesses net of cash acquired
|
(1,457)
|
|
(3,108)
|
Proceeds
from sale of equity investments
|
1,832
|
|
238
|
Contingent
consideration paid
|
(11)
|
|
(79)
|
Disposal
of businesses
|
49
|
|
(43)
|
Investment
in associates and joint ventures
|
–
|
|
(1)
|
Interest
received
|
115
|
|
64
|
Proceeds
from disposal of associates and joint ventures
|
1
|
|
–
|
Dividend
and distributions from investments
|
220
|
|
–
|
Dividends
from associates and joint ventures
|
11
|
|
6
|
Net cash inflow/(outflow) from continuing investing
activities
|
(1,595)
|
|
(4,981)
|
Net
investing cash flows attributable to discontinued
operations
|
–
|
|
(3,791)
|
Total net cash inflow/(outflow) from investing
activities
|
(1,595)
|
|
(8,772)
|
Cash flow from financing activities
|
|
|
|
Issue
of share capital
|
10
|
|
25
|
Repayment
of long-term loans(2)
|
(144)
|
|
(1,594)
|
Issue
of long-term notes(2)
|
223
|
|
1,025
|
Repayment
of short-term loans(2)
|
(2,116)
|
|
(5,074)
|
Net
increase/(repayment) of other short-term loans(2)
|
(333)
|
|
1,021
|
Repayment
of lease liabilities
|
(197)
|
|
(202)
|
Interest
paid
|
(766)
|
|
(848)
|
Dividends
paid to shareholders
|
(2,247)
|
|
(3,467)
|
Distribution
to non-controlling interests
|
(412)
|
|
(521)
|
Contributions
from non-controlling interests
|
7
|
|
8
|
Other
financing items
|
334
|
|
376
|
Net cash inflow/(outflow) from continuing financing
activities
|
(5,641)
|
|
(9,251)
|
Net
financing cash flows attributable to discontinued
operations
|
–
|
|
10,074
|
Total net cash inflow/(outflow) from financing
activities
|
(5,641)
|
|
823
|
(2)
|
Amended to reflect the gross cash flows with no impact on overall
financing cash flows.
|
Cash flow statement year
ended 31 December 2023 (continued)
|
|
|
|
|
|
2023
£m
|
|
2022
£m
|
|
|
|
|
Increase/(decrease) in cash and bank overdrafts in the
year
|
(468)
|
|
(546)
|
Cash
and bank overdrafts at beginning of the year
|
3,425
|
|
3,819
|
Exchange
adjustments
|
(99)
|
|
152
|
Increase/(decrease)
in cash and bank overdrafts
|
(468)
|
|
(546)
|
Cash and bank overdrafts at end of the year
|
2,858
|
|
3,425
|
Cash
and bank overdrafts at end of the year comprise:
|
|
|
|
Cash
and cash equivalents
|
2,936
|
|
3,723
|
Overdrafts
|
(78)
|
|
(298)
|
|
2,858
|
|
3,425
|
|
Vaccines turnover – year ended 31 December 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
||||||||||||||||
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
||||||||
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
Shingles
|
3,446
|
|
16
|
|
17
|
|
1,880
|
|
(4)
|
|
(4)
|
|
908
|
|
32
|
|
30
|
|
658
|
|
>100
|
|
>100
|
Shingrix
|
3,446
|
|
16
|
|
17
|
|
1,880
|
|
(4)
|
|
(4)
|
|
908
|
|
32
|
|
30
|
|
658
|
|
>100
|
|
>100
|
Meningitis
|
1,260
|
|
13
|
|
14
|
|
610
|
|
6
|
|
7
|
|
433
|
|
20
|
|
17
|
|
217
|
|
20
|
|
29
|
Bexsero
|
849
|
|
13
|
|
14
|
|
311
|
|
(7)
|
|
(6)
|
|
417
|
|
24
|
|
21
|
|
121
|
|
46
|
|
61
|
Menveo
|
380
|
|
10
|
|
12
|
|
299
|
|
25
|
|
25
|
|
12
|
|
(40)
|
|
(45)
|
|
69
|
|
(19)
|
|
(13)
|
Other
|
31
|
|
72
|
|
67
|
|
–
|
|
–
|
|
–
|
|
4
|
|
(20)
|
|
(20)
|
|
27
|
|
>100
|
|
>100
|
RSV
|
1,238
|
|
–
|
|
–
|
|
1,194
|
|
–
|
|
–
|
|
4
|
|
–
|
|
–
|
|
40
|
|
–
|
|
–
|
Arexvy
|
1,238
|
|
–
|
|
–
|
|
1,194
|
|
–
|
|
–
|
|
4
|
|
–
|
|
–
|
|
40
|
|
–
|
|
–
|
Influenza
|
504
|
|
(29)
|
|
(29)
|
|
371
|
|
(32)
|
|
(32)
|
|
39
|
|
(32)
|
|
(33)
|
|
94
|
|
(13)
|
|
(10)
|
Fluarix, FluLaval
|
504
|
|
(29)
|
|
(29)
|
|
371
|
|
(32)
|
|
(32)
|
|
39
|
|
(32)
|
|
(33)
|
|
94
|
|
(13)
|
|
(10)
|
Established Vaccines
|
3,266
|
|
6
|
|
7
|
|
1,254
|
|
8
|
|
9
|
|
742
|
|
3
|
|
2
|
|
1,270
|
|
5
|
|
7
|
Infanrix, Pediarix
|
554
|
|
(7)
|
|
(6)
|
|
291
|
|
(11)
|
|
(11)
|
|
121
|
|
(8)
|
|
(8)
|
|
142
|
|
4
|
|
10
|
Boostrix
|
614
|
|
3
|
|
4
|
|
394
|
|
9
|
|
10
|
|
122
|
|
(12)
|
|
(13)
|
|
98
|
|
2
|
|
4
|
Hepatitis
|
611
|
|
7
|
|
8
|
|
336
|
|
(2)
|
|
(1)
|
|
177
|
|
25
|
|
23
|
|
98
|
|
14
|
|
17
|
Rotarix
|
614
|
|
17
|
|
18
|
|
192
|
|
>100
|
|
>100
|
|
118
|
|
(3)
|
|
(5)
|
|
304
|
|
(2)
|
|
2
|
Synflorix
|
275
|
|
(10)
|
|
(10)
|
|
–
|
|
–
|
|
–
|
|
36
|
|
6
|
|
3
|
|
239
|
|
(12)
|
|
(12)
|
Priorix, Priorix Tetra,
Varilrix
|
265
|
|
41
|
|
41
|
|
16
|
|
60
|
|
60
|
|
129
|
|
33
|
|
30
|
|
120
|
|
48
|
|
53
|
Cervarix
|
120
|
|
3
|
|
5
|
|
–
|
|
–
|
|
–
|
|
33
|
|
50
|
|
45
|
|
87
|
|
(8)
|
|
(4)
|
Other
|
213
|
|
13
|
|
11
|
|
25
|
|
14
|
|
9
|
|
6
|
|
(82)
|
|
(76)
|
|
182
|
|
37
|
|
34
|
Vaccines ex COVID
|
9,714
|
|
23
|
|
24
|
|
5,309
|
|
25
|
|
26
|
|
2,126
|
|
16
|
|
15
|
|
2,279
|
|
26
|
|
31
|
Pandemic vaccines
|
150
|
|
>100
|
|
>100
|
|
–
|
|
–
|
|
–
|
|
130
|
|
>100
|
|
>100
|
|
20
|
|
>100
|
|
>100
|
Pandemic
adjuvant
|
150
|
|
>100
|
|
>100
|
|
–
|
|
–
|
|
–
|
|
130
|
|
>100
|
|
>100
|
|
20
|
|
>100
|
|
>100
|
Vaccines
|
9,864
|
|
24
|
|
25
|
|
5,309
|
|
25
|
|
26
|
|
2,256
|
|
20
|
|
18
|
|
2,299
|
|
27
|
|
31
|
|
|
|||||||||||||||||||||||||
Vaccines turnover – three months ended 31 December
2023
|
|
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
||||||||||||||||
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
||||||||
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
Shingles
|
908
|
|
18
|
|
23
|
|
485
|
|
1
|
|
6
|
|
224
|
|
10
|
|
10
|
|
199
|
|
>100
|
|
>100
|
Shingrix
|
908
|
|
18
|
|
23
|
|
485
|
|
1
|
|
6
|
|
224
|
|
10
|
|
10
|
|
199
|
|
>100
|
|
>100
|
Meningitis
|
273
|
|
20
|
|
26
|
|
99
|
|
36
|
|
47
|
|
104
|
|
3
|
|
3
|
|
70
|
|
30
|
|
41
|
Bexsero
|
171
|
|
14
|
|
21
|
|
36
|
|
-
|
|
11
|
|
101
|
|
10
|
|
10
|
|
34
|
|
55
|
|
82
|
Menveo
|
87
|
|
13
|
|
19
|
|
63
|
|
70
|
|
81
|
|
3
|
|
(63)
|
|
(75)
|
|
21
|
|
(34)
|
|
(28)
|
Other
|
15
|
|
>100
|
|
>100
|
|
–
|
|
–
|
|
–
|
|
–
|
|
(100)
|
|
–
|
|
15
|
|
>100
|
|
>100
|
RSV
|
529
|
|
–
|
|
–
|
|
494
|
|
–
|
|
–
|
|
2
|
|
–
|
|
–
|
|
33
|
|
–
|
|
–
|
Arexvy
|
529
|
|
–
|
|
–
|
|
494
|
|
–
|
|
–
|
|
2
|
|
–
|
|
–
|
|
33
|
|
–
|
|
–
|
Influenza
|
95
|
|
(66)
|
|
(64)
|
|
53
|
|
(76)
|
|
(73)
|
|
18
|
|
(38)
|
|
(41)
|
|
24
|
|
(20)
|
|
(20)
|
Fluarix,
FluLaval
|
95
|
|
(66)
|
|
(64)
|
|
53
|
|
(76)
|
|
(73)
|
|
18
|
|
(38)
|
|
(41)
|
|
24
|
|
(20)
|
|
(20)
|
Established Vaccines
|
771
|
|
4
|
|
8
|
|
249
|
|
14
|
|
20
|
|
190
|
|
1
|
|
1
|
|
332
|
|
(1)
|
|
3
|
Infanrix,
Pediarix
|
147
|
|
32
|
|
39
|
|
67
|
|
40
|
|
48
|
|
42
|
|
40
|
|
40
|
|
38
|
|
15
|
|
24
|
Boostrix
|
142
|
|
8
|
|
13
|
|
78
|
|
7
|
|
14
|
|
30
|
|
(3)
|
|
(3)
|
|
34
|
|
26
|
|
30
|
Hepatitis
|
126
|
|
–
|
|
6
|
|
60
|
|
(6)
|
|
2
|
|
45
|
|
25
|
|
28
|
|
21
|
|
(19)
|
|
(15)
|
Rotarix
|
148
|
|
1
|
|
5
|
|
33
|
|
57
|
|
71
|
|
29
|
|
(9)
|
|
(9)
|
|
86
|
|
(9)
|
|
(4)
|
Synflorix
|
48
|
|
(30)
|
|
(29)
|
|
–
|
|
–
|
|
–
|
|
9
|
|
(10)
|
|
(20)
|
|
39
|
|
(34)
|
|
(31)
|
Priorix,
Priorix Tetra,
Varilrix
|
76
|
|
52
|
|
54
|
|
5
|
|
(44)
|
|
(44)
|
|
31
|
|
29
|
|
25
|
|
40
|
|
>100
|
|
>100
|
Cervarix
|
10
|
|
(62)
|
|
(58)
|
|
–
|
|
–
|
|
–
|
|
3
|
|
(57)
|
|
(71)
|
|
7
|
|
(63)
|
|
(53)
|
Other
|
74
|
|
(11)
|
|
(12)
|
|
6
|
|
100
|
|
(33)
|
|
1
|
|
(94)
|
|
(83)
|
|
67
|
|
8
|
|
10
|
Vaccines ex COVID
|
2,576
|
|
28
|
|
33
|
|
1,380
|
|
40
|
|
46
|
|
538
|
|
3
|
|
3
|
|
658
|
|
30
|
|
38
|
Pandemic vaccines
|
7
|
|
(88)
|
|
(86)
|
|
–
|
|
–
|
|
–
|
|
7
|
|
(88)
|
|
(86)
|
|
–
|
|
>(100)
|
|
>(100)
|
Pandemic
adjuvant
|
7
|
|
(88)
|
|
(86)
|
|
–
|
|
–
|
|
–
|
|
7
|
|
(88)
|
|
(86)
|
|
–
|
|
>(100)
|
|
>(100)
|
Vaccines
|
2,583
|
|
25
|
|
29
|
|
1,380
|
|
40
|
|
46
|
|
545
|
|
(6)
|
|
(6)
|
|
658
|
|
30
|
|
37
|
|
Specialty Medicines turnover – year ended 31 December
2023
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
||||||||||||||||
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
||||||||
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
HIV
|
6,444
|
|
12
|
|
13
|
|
4,283
|
|
14
|
|
14
|
|
1,423
|
|
9
|
|
7
|
|
738
|
|
8
|
|
16
|
Dolutegravir
products
|
5,408
|
|
4
|
|
5
|
|
3,418
|
|
3
|
|
4
|
|
1,290
|
|
4
|
|
3
|
|
700
|
|
9
|
|
17
|
Tivicay
|
1,386
|
|
–
|
|
2
|
|
801
|
|
(3)
|
|
(2)
|
|
267
|
|
(2)
|
|
(4)
|
|
318
|
|
12
|
|
21
|
Triumeq
|
1,542
|
|
(14)
|
|
(14)
|
|
1,074
|
|
(12)
|
|
(11)
|
|
280
|
|
(22)
|
|
(24)
|
|
188
|
|
(15)
|
|
(11)
|
Juluca
|
661
|
|
4
|
|
4
|
|
511
|
|
3
|
|
4
|
|
136
|
|
7
|
|
6
|
|
14
|
|
(7)
|
|
(7)
|
Dovato
|
1,819
|
|
32
|
|
33
|
|
1,032
|
|
33
|
|
33
|
|
607
|
|
27
|
|
25
|
|
180
|
|
50
|
|
59
|
Rukobia
|
117
|
|
43
|
|
44
|
|
110
|
|
39
|
|
41
|
|
7
|
|
>100
|
|
>100
|
|
–
|
|
–
|
|
–
|
Cabenuva
|
708
|
|
>100
|
|
>100
|
|
587
|
|
100
|
|
>100
|
|
103
|
|
>100
|
|
>100
|
|
18
|
|
>100
|
|
>100
|
Apretude
|
149
|
|
>100
|
|
>100
|
|
149
|
|
>100
|
|
>100
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
Other
|
62
|
|
(35)
|
|
(33)
|
|
19
|
|
(39)
|
|
(42)
|
|
23
|
|
(18)
|
|
(25)
|
|
20
|
|
(44)
|
|
(31)
|
Respiratory/Immunology
and Other
|
3,025
|
|
16
|
|
18
|
|
2,100
|
|
15
|
|
15
|
|
468
|
|
28
|
|
26
|
|
457
|
|
11
|
|
21
|
Nucala
|
1,655
|
|
16
|
|
18
|
|
978
|
|
11
|
|
11
|
|
383
|
|
28
|
|
26
|
|
294
|
|
21
|
|
33
|
Benlysta
|
1,349
|
|
18
|
|
19
|
|
1,121
|
|
18
|
|
19
|
|
99
|
|
19
|
|
18
|
|
129
|
|
13
|
|
25
|
Other
|
21
|
|
(48)
|
|
(42)
|
|
1
|
|
–
|
|
–
|
|
(14)
|
|
18
|
|
12
|
|
34
|
|
(40)
|
|
(33)
|
Oncology
|
731
|
|
21
|
|
23
|
|
396
|
|
27
|
|
27
|
|
289
|
|
14
|
|
13
|
|
46
|
|
28
|
|
61
|
Zejula
|
523
|
|
13
|
|
15
|
|
257
|
|
9
|
|
10
|
|
222
|
|
14
|
|
12
|
|
44
|
|
29
|
|
65
|
Blenrep
|
36
|
|
(69)
|
|
(69)
|
|
(2)
|
|
>(100)
|
|
>(100)
|
|
38
|
|
(27)
|
|
(27)
|
|
–
|
|
–
|
|
–
|
Jemperli
|
141
|
|
>100
|
|
>100
|
|
108
|
|
>100
|
|
>100
|
|
31
|
|
>100
|
|
>100
|
|
2
|
|
>100
|
|
>100
|
Ojjaara
|
33
|
|
–
|
|
–
|
|
33
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
Other
|
(2)
|
|
>(100)
|
|
>(100)
|
|
–
|
|
–
|
|
–
|
|
(2)
|
|
(100)
|
|
–
|
|
–
|
|
>(100)
|
|
(100)
|
Specialty Medicines
ex COVID
|
10,200
|
|
14
|
|
15
|
|
6,779
|
|
15
|
|
15
|
|
2,180
|
|
13
|
|
11
|
|
1,241
|
|
10
|
|
19
|
Pandemic
|
44
|
|
(98)
|
|
(98)
|
|
10
|
|
(99)
|
|
(99)
|
|
3
|
|
(99)
|
|
(99)
|
|
31
|
|
(97)
|
|
(97)
|
Xevudy
|
44
|
|
(98)
|
|
(98)
|
|
10
|
|
(99)
|
|
(99)
|
|
3
|
|
(99)
|
|
(99)
|
|
31
|
|
(97)
|
|
(97)
|
Specialty Medicines
|
10,244
|
|
(9)
|
|
(8)
|
|
6,789
|
|
1
|
|
1
|
|
2,183
|
|
(8)
|
|
(10)
|
|
1,272
|
|
(41)
|
|
(36)
|
|
Specialty Medicines turnover – three months ended 31 December
2023
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
||||||||||||||||
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
||||||||
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
HIV
|
1,773
|
|
6
|
|
10
|
|
1,222
|
|
5
|
|
9
|
|
374
|
|
9
|
|
8
|
|
177
|
|
4
|
|
18
|
Dolutegravir
products
|
1,445
|
|
(2)
|
|
2
|
|
946
|
|
(5)
|
|
(1)
|
|
333
|
|
4
|
|
4
|
|
166
|
|
1
|
|
12
|
Tivicay
|
349
|
|
(6)
|
|
–
|
|
213
|
|
(9)
|
|
(5)
|
|
68
|
|
(1)
|
|
(1)
|
|
68
|
|
(1)
|
|
17
|
Triumeq
|
403
|
|
(16)
|
|
(13)
|
|
292
|
|
(14)
|
|
(10)
|
|
66
|
|
(20)
|
|
(19)
|
|
45
|
|
(20)
|
|
(16)
|
Juluca
|
177
|
|
(8)
|
|
(5)
|
|
140
|
|
(10)
|
|
(6)
|
|
33
|
|
3
|
|
6
|
|
4
|
|
(20)
|
|
(40)
|
Dovato
|
516
|
|
18
|
|
21
|
|
301
|
|
12
|
|
17
|
|
166
|
|
22
|
|
21
|
|
49
|
|
44
|
|
56
|
Rukobia
|
35
|
|
35
|
|
42
|
|
34
|
|
36
|
|
40
|
|
2
|
|
>100
|
|
>100
|
|
(1)
|
|
–
|
|
–
|
Cabenuva
|
223
|
|
73
|
|
78
|
|
185
|
|
65
|
|
71
|
|
32
|
|
>100
|
|
>100
|
|
6
|
|
>100
|
|
>100
|
Apretude
|
52
|
|
>100
|
|
>100
|
|
52
|
|
>100
|
|
>100
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
Other
|
18
|
|
(10)
|
|
–
|
|
5
|
|
(29)
|
|
(43)
|
|
7
|
|
(13)
|
|
(25)
|
|
6
|
|
20
|
|
>100
|
Respiratory/Immunology
and Other
|
863
|
|
20
|
|
25
|
|
625
|
|
22
|
|
27
|
|
125
|
|
33
|
|
33
|
|
113
|
|
(2)
|
|
13
|
Nucala
|
471
|
|
19
|
|
25
|
|
292
|
|
21
|
|
25
|
|
102
|
|
20
|
|
20
|
|
77
|
|
13
|
|
29
|
Benlysta
|
389
|
|
19
|
|
25
|
|
333
|
|
23
|
|
28
|
|
26
|
|
13
|
|
13
|
|
30
|
|
(6)
|
|
9
|
Other
|
3
|
|
>100
|
|
>100
|
|
–
|
|
–
|
|
–
|
|
(3)
|
|
79
|
|
79
|
|
6
|
|
(60)
|
|
(53)
|
Oncology
|
244
|
|
55
|
|
62
|
|
163
|
|
>100
|
|
>100
|
|
70
|
|
4
|
|
4
|
|
11
|
|
(8)
|
|
50
|
Zejula
|
152
|
|
22
|
|
28
|
|
85
|
|
35
|
|
40
|
|
56
|
|
8
|
|
8
|
|
11
|
|
10
|
|
60
|
Blenrep
|
6
|
|
(78)
|
|
(78)
|
|
–
|
|
(100)
|
|
(100)
|
|
6
|
|
(63)
|
|
(62)
|
|
–
|
|
–
|
|
–
|
Jemperli
|
60
|
|
>100
|
|
>100
|
|
49
|
|
>100
|
|
>100
|
|
10
|
|
>100
|
|
>100
|
|
1
|
|
>100
|
|
>100
|
Ojjaara
|
29
|
|
–
|
|
–
|
|
29
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
Other
|
(3)
|
|
>(100)
|
|
>(100)
|
|
–
|
|
–
|
|
–
|
|
(2)
|
|
(100)
|
|
>(100)
|
|
(1)
|
|
>(100)
|
|
(50)
|
Specialty Medicines
ex COVID
|
2,880
|
|
13
|
|
17
|
|
2,010
|
|
15
|
|
19
|
|
569
|
|
13
|
|
12
|
|
301
|
|
1
|
|
17
|
Pandemic
|
13
|
|
(90)
|
|
(90)
|
|
11
|
|
10
|
|
10
|
|
2
|
|
(89)
|
|
(89)
|
|
–
|
|
>(100)
|
|
(100)
|
Xevudy
|
13
|
|
(90)
|
|
(90)
|
|
11
|
|
10
|
|
10
|
|
2
|
|
(89)
|
|
(89)
|
|
–
|
|
>(100)
|
|
(100)
|
Specialty Medicines
|
2,893
|
|
8
|
|
12
|
|
2,021
|
|
15
|
|
19
|
|
571
|
|
9
|
|
9
|
|
301
|
|
(24)
|
|
(11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
||||||||||||||||
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
||||||||
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
Respiratory
|
6,825
|
|
4
|
|
6
|
|
3,442
|
|
7
|
|
8
|
|
1,402
|
|
1
|
|
–
|
|
1,981
|
|
1
|
|
9
|
Arnuity Ellipta
|
36
|
|
(36)
|
|
(34)
|
|
29
|
|
(40)
|
|
(40)
|
|
–
|
|
–
|
|
–
|
|
7
|
|
(13)
|
|
–
|
Anoro Ellipta
|
557
|
|
15
|
|
16
|
|
269
|
|
15
|
|
16
|
|
193
|
|
17
|
|
15
|
|
95
|
|
12
|
|
20
|
Avamys/Veramyst
|
299
|
|
(7)
|
|
(4)
|
|
–
|
|
–
|
|
–
|
|
57
|
|
(12)
|
|
(14)
|
|
242
|
|
(5)
|
|
(2)
|
Flixotide/Flovent
|
451
|
|
(17)
|
|
(16)
|
|
283
|
|
(20)
|
|
(20)
|
|
70
|
|
(5)
|
|
(5)
|
|
98
|
|
(17)
|
|
(11)
|
Incruse Ellipta
|
162
|
|
(17)
|
|
(17)
|
|
78
|
|
(25)
|
|
(24)
|
|
59
|
|
(8)
|
|
(9)
|
|
25
|
|
(11)
|
|
(7)
|
Relvar/Breo Ellipta
|
1,103
|
|
(4)
|
|
(2)
|
|
436
|
|
(12)
|
|
(12)
|
|
366
|
|
5
|
|
4
|
|
301
|
|
–
|
|
8
|
Seretide/Advair
|
1,139
|
|
(2)
|
|
1
|
|
341
|
|
11
|
|
11
|
|
256
|
|
(11)
|
|
(12)
|
|
542
|
|
(4)
|
|
3
|
Trelegy Ellipta
|
2,202
|
|
27
|
|
29
|
|
1,606
|
|
28
|
|
29
|
|
275
|
|
17
|
|
16
|
|
321
|
|
34
|
|
44
|
Ventolin
|
749
|
|
(3)
|
|
–
|
|
400
|
|
(3)
|
|
(2)
|
|
100
|
|
(14)
|
|
(16)
|
|
249
|
|
2
|
|
11
|
Other
Respiratory
|
127
|
|
(11)
|
|
(5)
|
|
–
|
|
(100)
|
|
(100)
|
|
26
|
|
(13)
|
|
(17)
|
|
101
|
|
(10)
|
|
(1)
|
Other General Medicines
|
3,395
|
|
(5)
|
|
2
|
|
280
|
|
(23)
|
|
(22)
|
|
723
|
|
4
|
|
2
|
|
2,392
|
|
(5)
|
|
6
|
Dermatology
|
363
|
|
(3)
|
|
4
|
|
–
|
|
–
|
|
–
|
|
107
|
|
–
|
|
(1)
|
|
256
|
|
(5)
|
|
6
|
Augmentin
|
628
|
|
9
|
|
17
|
|
–
|
|
–
|
|
–
|
|
186
|
|
23
|
|
21
|
|
442
|
|
4
|
|
16
|
Avodart
|
345
|
|
5
|
|
7
|
|
–
|
|
–
|
|
–
|
|
109
|
|
2
|
|
(1)
|
|
236
|
|
6
|
|
10
|
Lamictal
|
435
|
|
(15)
|
|
(13)
|
|
194
|
|
(27)
|
|
(27)
|
|
111
|
|
2
|
|
1
|
|
130
|
|
(5)
|
|
4
|
Other
|
1,624
|
|
(9)
|
|
1
|
|
86
|
|
(13)
|
|
(11)
|
|
210
|
|
(5)
|
|
(7)
|
|
1,328
|
|
(9)
|
|
3
|
General Medicines
|
10,220
|
|
1
|
|
5
|
|
3,722
|
|
4
|
|
5
|
|
2,125
|
|
2
|
|
1
|
|
4,373
|
|
(2)
|
|
7
|
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
||||||||||||||||
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
||||||||
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
Respiratory
|
1,746
|
|
4
|
|
9
|
|
913
|
|
17
|
|
22
|
|
362
|
|
(3)
|
|
(3)
|
|
471
|
|
(11)
|
|
(2)
|
Arnuity Ellipta
|
10
|
|
(9)
|
|
–
|
|
8
|
|
(11)
|
|
–
|
|
–
|
|
–
|
|
–
|
|
2
|
|
–
|
|
–
|
Anoro Ellipta
|
155
|
|
12
|
|
16
|
|
78
|
|
15
|
|
19
|
|
51
|
|
9
|
|
9
|
|
26
|
|
13
|
|
22
|
Avamys/Veramyst
|
49
|
|
(40)
|
|
(37)
|
|
–
|
|
–
|
|
–
|
|
12
|
|
(14)
|
|
(14)
|
|
37
|
|
(46)
|
|
(41)
|
Flixotide/Flovent
|
100
|
|
(25)
|
|
(21)
|
|
58
|
|
(23)
|
|
(17)
|
|
20
|
|
(9)
|
|
(9)
|
|
22
|
|
(41)
|
|
(35)
|
Incruse Ellipta
|
40
|
|
3
|
|
5
|
|
19
|
|
19
|
|
31
|
|
15
|
|
(6)
|
|
(12)
|
|
6
|
|
(14)
|
|
(14)
|
Relvar/Breo Ellipta
|
302
|
|
21
|
|
27
|
|
129
|
|
79
|
|
85
|
|
95
|
|
1
|
|
2
|
|
78
|
|
(6)
|
|
4
|
Seretide/Advair
|
276
|
|
(16)
|
|
(12)
|
|
78
|
|
(26)
|
|
(22)
|
|
65
|
|
(13)
|
|
(12)
|
|
133
|
|
(11)
|
|
(4)
|
Trelegy Ellipta
|
589
|
|
29
|
|
35
|
|
430
|
|
34
|
|
40
|
|
72
|
|
11
|
|
11
|
|
87
|
|
23
|
|
34
|
Ventolin
|
198
|
|
(4)
|
|
2
|
|
113
|
|
2
|
|
6
|
|
28
|
|
(15)
|
|
(15)
|
|
57
|
|
(8)
|
|
3
|
Other
Respiratory
|
27
|
|
(25)
|
|
(19)
|
|
–
|
|
–
|
|
–
|
|
4
|
|
(50)
|
|
(63)
|
|
23
|
|
(15)
|
|
4
|
Other General Medicines
|
830
|
|
(12)
|
|
(2)
|
|
66
|
|
(31)
|
|
(25)
|
|
179
|
|
1
|
|
–
|
|
585
|
|
(12)
|
|
–
|
Dermatology
|
85
|
|
(14)
|
|
(6)
|
|
–
|
|
–
|
|
–
|
|
26
|
|
(7)
|
|
(4)
|
|
59
|
|
(18)
|
|
(8)
|
Augmentin
|
159
|
|
(5)
|
|
5
|
|
–
|
|
–
|
|
–
|
|
49
|
|
11
|
|
9
|
|
110
|
|
(11)
|
|
3
|
Avodart
|
73
|
|
(11)
|
|
(7)
|
|
–
|
|
–
|
|
–
|
|
22
|
|
(15)
|
|
(19)
|
|
51
|
|
(9)
|
|
(2)
|
Lamictal
|
108
|
|
(18)
|
|
(14)
|
|
49
|
|
(31)
|
|
(30)
|
|
28
|
|
(3)
|
|
–
|
|
31
|
|
(3)
|
|
9
|
Other
|
405
|
|
(12)
|
|
–
|
|
17
|
|
(32)
|
|
(16)
|
|
54
|
|
6
|
|
4
|
|
334
|
|
(13)
|
|
1
|
General Medicines
|
2,576
|
|
(2)
|
|
5
|
|
979
|
|
12
|
|
17
|
|
541
|
|
(2)
|
|
(2)
|
|
1,056
|
|
(12)
|
|
(1)
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
||||||||||||||||
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
||||||||
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
Year ended 31 December 2023
|
30,328
|
|
3
|
|
5
|
|
15,820
|
|
9
|
|
9
|
|
6,564
|
|
3
|
|
2
|
|
7,944
|
|
(6)
|
|
1
|
Three months ended 31 December 2023
|
8,052
|
|
9
|
|
15
|
|
4,380
|
|
21
|
|
26
|
|
1,657
|
|
–
|
|
–
|
|
2,015
|
|
(4)
|
|
6
|
|
|
|
|
|
Commercial Operations turnover ex COVID
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
||||||||||||||||
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
||||||||
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
Year ended 31 December 2023
|
30,134
|
|
12
|
|
14
|
|
15,810
|
|
15
|
|
16
|
|
6,431
|
|
10
|
|
8
|
|
7,893
|
|
7
|
|
15
|
Three months ended 31 December 2023
|
8,032
|
|
12
|
|
17
|
|
4,369
|
|
21
|
|
26
|
|
1,648
|
|
4
|
|
4
|
|
2,015
|
|
1
|
|
12
|
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
|
|||||||
|
2023
£m
|
|
2022
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
Commercial
Operations (total turnover)
|
30,328
|
|
29,324
|
|
3
|
|
5
|
|
|
|
|
|
|
|
|
Operating profit by segment
|
|||||||
|
2023
£m
|
|
2022
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
Commercial
Operations
|
14,656
|
|
13,590
|
|
8
|
|
10
|
Research
and Development
|
(5,607)
|
|
(5,060)
|
|
11
|
|
11
|
|
|
|
|
|
|
|
|
Segment
profit
|
9,049
|
|
8,530
|
|
6
|
|
10
|
Corporate
and other unallocated costs
|
(263)
|
|
(379)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
operating profit
|
8,786
|
|
8,151
|
|
8
|
|
12
|
Adjusting
items
|
(2,041)
|
|
(1,718)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
operating profit
|
6,745
|
|
6,433
|
|
5
|
|
10
|
|
|
|
|
|
|
|
|
Finance
income
|
115
|
|
76
|
|
|
|
|
Finance
costs
|
(792)
|
|
(879)
|
|
|
|
|
Share
of after tax profit/(loss) of associates
and joint ventures
|
(5)
|
|
(2)
|
|
|
|
|
Profit/(loss)
on disposal of associates and joint
ventures
|
1
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
before taxation from continuing operations
|
6,064
|
|
5,628
|
|
8
|
|
14
|
|
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
|
|||||||
|
Q4 2023
£m
|
|
Q4
2022
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
Commercial
Operations (total turnover)
|
8,052
|
|
7,376
|
|
9
|
|
15
|
|
|
|
|
|
|
|
|
Operating profit by segment
|
|||||||
|
Q4 2023
£m
|
|
Q4
2022
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
Commercial
Operations
|
3,612
|
|
3,219
|
|
12
|
|
20
|
Research
and Development
|
(1,731)
|
|
(1,512)
|
|
14
|
|
17
|
|
|
|
|
|
|
|
|
Segment
profit
|
1,881
|
|
1,707
|
|
10
|
|
22
|
Corporate
and other unallocated costs
|
(129)
|
|
(112)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
operating profit
|
1,752
|
|
1,595
|
|
10
|
|
21
|
Adjusting
items
|
(1,179)
|
|
273
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
operating profit
|
573
|
|
1,868
|
|
(69)
|
|
(60)
|
|
|
|
|
|
|
|
|
Finance
income
|
29
|
|
26
|
|
|
|
|
Finance
costs
|
(222)
|
|
(270)
|
|
|
|
|
Share
of after tax profit/(loss) of associates
and joint ventures
|
(1)
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
before taxation from continuing operations
|
379
|
|
1,626
|
|
(77)
|
|
(67)
|
|
|
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
31 December 2023, the Group’s aggregate provision for
legal and other disputes (not including tax matters described on
page 11) 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 Q3 2023 results:
Product
Liability
Zantac
The
Delaware Superior Court held a hearing regarding admissibility of
expert testimony as to general causation on 22-24 January
2024.
In the
California Judicial Council Coordination Proceedings (JCCP), the
Court has scheduled the next bellwether case (Browne) for trial on
20 February 2024 with a Sargon hearing scheduled for 1-2 February
2024. The remaining bellwether cases in the JCCP are set for
transfer to other counties for trial beginning in Q2 2024. Cases in
other state courts are scheduled for trials beginning in Q2
2024.
GSK
will continue to defend itself vigorously against all
claims.
Given
the current stage of the proceedings, GSK cannot meaningfully
assess what liability, if any, it may have, nor can it meaningfully
assess the liability of other parties under relevant
indemnification provisions.
|
|
|
Returns to
shareholders
|
Quarterly
dividends
The
Board has declared a fourth interim dividend for 2023 of 16.00p per
share (Q4 2022: 13.75p(3)
per share).
Dividends remain an
essential component of total shareholder return and GSK recognises
the importance of dividends to shareholders. On 23 June 2021, at
the GSK Investor Update, GSK set out that from 2022 a progressive
dividend policy will be implemented guided by a 40 to 60 percent
pay-out ratio through the investment cycle. Consistent with this,
and reflecting strong business performance during the year, GSK now
expects to declare an increased dividend of 16.00p for Q4 2023 and
58.00p per share for full year 2023. The expected dividend for 2024
is 60.00p. In setting its dividend policy, GSK considers the
capital allocation priorities of the Group and its investment
strategy for growth alongside the sustainability of the
dividend.
Payment
of dividends
The
equivalent interim dividend receivable by ADR holders will be
calculated based on the exchange rate on 9 April 2024. 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 22 February 2024, with
a record date of 23 February 2024 and a payment date of 11 April
2024.
|
|
|
|
|
|
|
|
|
|
Paid/
Payable
|
|
Pence
per
share/
pre
share
consolidation
|
|
Pence
per
share/
post
share
consolidation
|
|
£m
|
|
|
|
|
|
|
|
|
2023
|
|
|
|
|
|
|
|
First
interim
|
13 July
2023
|
|
–
|
|
14.00
|
|
567
|
Second
interim
|
12
October 2023
|
|
–
|
|
14.00
|
|
568
|
Third
interim
|
11
January 2024
|
|
–
|
|
14.00
|
|
568
|
Fourth
interim
|
11
April 2024
|
|
–
|
|
16.00
|
|
649
|
|
|
|
|
|
|
|
|
|
|
|
–
|
|
58.00
|
|
2,352
|
|
|
|
|
|
|
|
|
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
|
|
|
|||||||
(3)
|
Adjusted for the Share Consolidation on 18 July 2022. For details
of the Share Consolidation see page 53.
|
|
|
|
|
|
|
Weighted average number of shares
|
|||||
|
|
|
2023
millions
|
|
2022
millions
|
|
|
|
|
|
|
Weighted
average number of shares – basic
|
|
|
4,052
|
|
4,026
|
Dilutive
effect of share options and share awards
|
|
|
59
|
|
58
|
|
|
|
|
|
|
Weighted
average number of shares – diluted
|
|
|
4,111
|
|
4,084
|
|
|
|
|
|
|
Weighted average number of shares
|
|||||
|
|
|
Q4 2023
millions
|
|
Q4
2022
millions
|
|
|
|
|
|
|
Weighted
average number of shares – basic
|
|
|
4,056
|
|
4,034
|
Dilutive
effect of share options and share awards
|
|
|
60
|
|
57
|
|
|
|
|
|
|
Weighted
average number of shares – diluted
|
|
|
4,116
|
|
4,091
|
At
31 December 2023, 4,056 million shares (2022: 4,034 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 0.8 million shares under employee share
schemes in the year for proceeds of £10 million (2022:
£25 million).
At
31 December 2023, the ESOP Trusts held 58.5 million GSK shares
against the future exercise of share options and share awards. The
carrying value of £288 million has been deducted from
other reserves. The market value of these shares was
£853 million.
At
31 December 2023, the company held 197 million Treasury shares
at a cost of £3,447 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 year-end and three months ended
31 December 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:
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
Q4 2023
|
|
Q4
2022
|
||
|
|
|
|
|
|
|
|
||
Average
rates:
|
|
|
|
|
|
|
|
||
|
|
US$/£
|
1.24
|
|
1.24
|
|
1.25
|
|
1.19
|
|
|
Euro/£
|
1.15
|
|
1.17
|
|
1.15
|
|
1.15
|
|
|
Yen/£
|
175
|
|
161
|
|
183
|
|
165
|
|
|
|
|
|
|
|
|
||
Period-end
rates:
|
|
|
|
|
|
|
|
||
|
|
US$/£
|
1.27
|
|
1.20
|
|
1.27
|
|
1.20
|
|
|
Euro/£
|
1.15
|
|
1.13
|
|
1.15
|
|
1.13
|
|
|
Yen/£
|
180
|
|
159
|
|
180
|
|
159
|
Net assets
|
The
book value of net assets increased by £2,699 million from
£10,096 million at 31 December 2022 to £12,795
million at 31 December 2023. This primarily reflected
contribution from Total comprehensive income for the period partly
offset by dividends paid to shareholders.
At
31 December 2023, the net deficit on the Group’s pension
plans was £764 million compared with £1,355 million at
31 December 2022. This decrease in the net deficit is
primarily due to higher asset values, cash contributions of
£353 million made to the UK Pension Schemes and updated
mortality assumptions, partly offset by an actuarial experience
adjustment for higher inflation than expected in UK pension
increases of approximately £360 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 £848 million
(31 December 2022: £1,093 million).
Contingent
consideration amounted to £6,662 million at 31 December
2023 (31 December 2022: £7,068 million), of which
£5,718 million (31 December 2022: £5,890 million)
represented the estimated present value of amounts payable to
Shionogi relating to ViiV Healthcare, £423 million
(31 December 2022: £673 million) represented the
estimated present value of contingent consideration payable to
Novartis related to the Vaccines acquisition and £516 million
(31 December 2022: £501 million) represented the
estimated present value of contingent consideration payable to
Affinivax. Of the contingent consideration payable to Shionogi at
31 December 2023, £1,017 million (31 December 2022:
£940 million) is expected to be paid within one
year.
|
Movements
in contingent consideration are as follows:
|
2023
|
ViiV
Healthcare
£m
|
|
Group
£m
|
|
|
|
|
Contingent
consideration at beginning of the period
|
5,890
|
|
7,068
|
Remeasurement
through income statement and other movements
|
934
|
|
739
|
Cash
payments: operating cash flows
|
(1,106)
|
|
(1,134)
|
Cash
payments: investing activities
|
–
|
|
(11)
|
|
|
|
|
Contingent
consideration at end of the period
|
5,718
|
|
6,662
|
|
|
|
|
2022
|
ViiV
Healthcare
£m
|
|
Group
£m
|
|
|
|
|
Contingent
consideration at beginning of the period
|
5,559
|
|
6,076
|
Remeasurement
through income statement and other movements
|
1,431
|
|
2,129
|
Cash
payments: operating cash flows
|
(1,031)
|
|
(1,058)
|
Cash
payments: investing activities
|
(69)
|
|
(79)
|
|
|
|
|
Contingent
consideration at end of the period
|
5,890
|
|
7,068
|
|
The
liabilities for the Pfizer put option and the contingent
consideration at 31 December 2023 have been calculated based
on the period-end exchange rates, primarily US$ 1.27/£1 and
€1.15/£1. Sensitivity analyses for the Pfizer put option
and each of the largest contingent consideration liabilities are
set out below for the following scenarios:
|
|
|
|
|
|
|
|
|
|
|
|
Increase/(decrease) in financial liability and loss/(gain) in
Income statement
|
|
ViiV
Healthcare
put
option
£m
|
|
Shionogi-ViiV
Healthcare
contingent
consideration
£m
|
|
Novartis
Vaccines
contingent
consideration
£m
|
|
Affinivax
contingent
consideration
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10%
increase in sales forecasts*
|
|
84
|
|
539
|
|
63
|
|
n/a
|
|
|
15%
increase in sales forecasts*
|
|
126
|
|
807
|
|
94
|
|
n/a
|
|
|
10%
decrease in sales forecasts*
|
|
(84)
|
|
(539)
|
|
(62)
|
|
n/a
|
|
|
15%
decrease in sales forecasts*
|
|
(126)
|
|
(808)
|
|
(92)
|
|
n/a
|
|
|
1% (100
basis points) increase in discount rate
|
|
(18)
|
|
(174)
|
|
(26)
|
|
(12)
|
|
|
1.5%
(150 basis points) increase in discount rate
|
|
(26)
|
|
(256)
|
|
(38)
|
|
(18)
|
|
|
1% (100
basis points) decrease in discount rate
|
|
19
|
|
184
|
|
30
|
|
13
|
|
|
1.5%
(150 basis points) decrease in discount rate
|
|
28
|
|
281
|
|
47
|
|
19
|
|
|
10 cent
appreciation of US Dollar
|
|
54
|
|
386
|
|
11
|
|
44
|
|
|
15 cent
appreciation of US Dollar
|
|
85
|
|
604
|
|
17
|
|
69
|
|
|
10 cent
depreciation of US Dollar
|
|
(46)
|
|
(330)
|
|
(8)
|
|
(38)
|
|
|
15 cent
depreciation of US Dollar
|
|
(67)
|
|
(478)
|
|
(12)
|
|
(54)
|
|
|
10 cent
appreciation of Euro
|
|
22
|
|
91
|
|
19
|
|
n/a
|
|
|
15 cent
appreciation of Euro
|
|
34
|
|
144
|
|
30
|
|
n/a
|
|
|
10 cent
depreciation of Euro
|
|
(18)
|
|
(79)
|
|
(16)
|
|
n/a
|
|
|
15 cent
depreciation of Euro
|
|
(26)
|
|
(113)
|
|
(22)
|
|
n/a
|
|
|
10%
increase in probability of milestone success
|
|
n/a
|
|
n/a
|
|
21
|
|
75
|
|
|
10%
decrease in probability of milestone success
|
|
n/a
|
|
n/a
|
|
(10)
|
|
(75)
|
|
|
|
|
*
|
The sales forecast is for ViiV Healthcare sales only in respect of
the ViiV Healthcare put option and the Shionogi-ViiV Healthcare
contingent consideration.
|
|
Contingent liabilities
|
There
were contingent liabilities at 31 December 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 38
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. 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
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
provisional fair values of the net assets acquired, including
goodwill, are as follows:
|
|
|
|
|
|
|
|
|
£m
|
|
|
|
|
Net
assets acquired:
|
|
|
|
Intangible
assets
|
|
|
1,438
|
Cash
and cash equivalents
|
|
|
148
|
Other
net assets/(liabilities)
|
|
|
46
|
Deferred
tax liabilities
|
|
|
(136)
|
|
|
|
|
|
|
|
1,496
|
Goodwill
|
|
|
109
|
|
|
|
|
Total
consideration
|
|
|
1,605
|
|
|
|
|
|
|
All of
the £1.6 billion consideration had been settled by 30
September 2023.
|
|
|
|
|
|
2023
£m
|
|
2022
£m
|
|
|
|
|
Total
Net debt at beginning of the period
|
(17,197)
|
|
(19,838)
|
|
|
|
|
Increase/(decrease)
in cash and bank overdrafts
|
(468)
|
|
(7,597)
|
(Increase)/decrease
in liquid investments
|
(72)
|
|
(1)
|
Repayment
of short-term loans
|
2,116
|
|
5,074
|
Net
increase/(repayment) of other short-term loans
|
333
|
|
(1,021)
|
Issue
of long-term notes
|
(223)
|
|
(1,025)
|
Repayment
of long-term loans
|
144
|
|
1,594
|
Repayment
of lease liabilities
|
197
|
|
202
|
Net
debt of subsidiary undertakings acquired
|
50
|
|
(24)
|
Exchange
adjustments
|
554
|
|
(1,531)
|
Other
non-cash movements
|
(474)
|
|
(207)
|
|
|
|
|
Decrease/(increase)
in net debt from continuing operations
|
2,157
|
|
(4,536)
|
Decrease/(increase)
in net debt from discontinued operations
|
–
|
|
7,177
|
Total
Net debt at end of the period
|
(15,040)
|
|
(17,197)
|
|
|
|
|||
Net debt analysis
|
|
|
|||
|
|
|
|
|
|
31 December
2023
£m
|
|
31 December
2022
£m
|
||
|
|
|
|
||
Liquid
investments
|
42
|
|
67
|
||
Cash
and cash equivalents
|
2,936
|
|
3,723
|
||
Short-term
borrowings
|
(2,813)
|
|
(3,952)
|
||
Long-term
borrowings
|
(15,205)
|
|
(17,035)
|
||
|
|
|
|
||
Total
Net debt at the end of the period
|
(15,040)
|
|
(17,197)
|
|
||||||
Free cash flow
reconciliation from continuing operations
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
£m
|
|
2022
£m
|
|
Q4 2023
£m
|
|
|
|
|
|
|
Net
cash inflow/(outflow) from continuing operating
activities
|
6,768
|
|
6,634
|
|
3,196
|
Purchase
of property, plant and equipment
|
(1,314)
|
|
(1,143)
|
|
(486)
|
Proceeds
from sale of property, plant and equipment
|
28
|
|
146
|
|
7
|
Purchase
of intangible assets
|
(1,030)
|
|
(1,115)
|
|
(297)
|
Proceeds
from disposals of intangible assets
|
12
|
|
196
|
|
–
|
Net
finance costs
|
(651)
|
|
(784)
|
|
(254)
|
Dividends
and disposal proceeds from associates and joint
ventures
|
12
|
|
6
|
|
11
|
Contingent
consideration paid (reported in investing activities)
|
(11)
|
|
(79)
|
|
(4)
|
Distributions
to non-controlling interests
|
(412)
|
|
(521)
|
|
(78)
|
Contributions
from non-controlling interests
|
7
|
|
8
|
|
–
|
|
|
|
|
|
|
Free
cash inflow/(outflow) from continuing operations
|
3,409
|
|
3,348
|
|
2,095
|
|
Post balance sheet event note
|
On 9
January 2024, GSK announced it had entered into an agreement to
acquire Aiolos Bio, Inc, (Aiolos) a clinical-stage
biopharmaceutical company focused on addressing the unmet treatment
needs of patients with certain respiratory and inflammatory
conditions, for an upfront payment of US$1 billion and up to US$400
million in certain success-based regulatory milestone payments. In
addition, GSK will also be responsible for success-based milestone
payments as well as tiered royalties owed to Jiangsu Hengrui
Pharmaceuticals Co., Ltd. (Hengrui). The transaction is subject to
customary conditions, including applicable regulatory agency
clearances under the Hart-Scott-Rodino Act in the US and is
expected to close in the first quarter of 2024.
GSK
completed the sale of 300 million shares in Haleon equivalent to
3.2% of Haleon’s issued share capital on 17 January 2024 at a
price of 326 pence per share, raising gross proceeds of £978
million. Following the sale, GSK will hold approximately 385
million ordinary shares in Haleon, representing over 4% of the
issued share capital of Haleon.
|
|
Related party transactions
|
Details
of GSK’s related party transactions are disclosed on page 236
of our 2022 Annual Report.
|
|
R&D
commentary
|
Pipeline overview
|
|
|
|
|
Medicines
and vaccines in phase III development (including major lifecycle
innovation or under regulatory review)
|
18
|
Infectious Diseases (7)
|
|
●
|
Arexvy (RSV vaccine) RSV older adults
|
||
●
|
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 (5)
|
|
|
|
●
|
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
(P2X3 receptor antagonist) refractory chronic cough
|
|
|
●
|
Ventolin (salbutamol, Beta 2 adrenergic receptor agonist)
asthma
|
|
|
|
|
|
|
Oncology (5)
|
|
|
|
●
|
Ojjaara (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
|
71
|
|
|
Total
projects in clinical development (inclusive of all phases and
indications)
|
89
|
|
|
|
Our key growth assets by
therapy area
|
|
The
following outlines several key vaccines and medicines by therapy
area that will help drive growth for GSK to meet its outlooks for
2021-2026 and beyond.
|
|
Infectious Diseases
|
|
Arexvy (respiratory syncytial virus vaccine,
adjuvanted)
The
European Medicines Agency (EMA) and The Japanese Ministry of
Health, Labour and Welfare (MHLW) accepted for review regulatory
applications to extend the indication of Arexvy
(respiratory syncytial virus vaccine, recombinant adjuvanted) for
the prevention of RSV disease in adults aged 50-59 at increased
risk. GSK is the first company to seek regulatory approval to
extend RSV vaccination to help protect adults aged 50 to 59 at
increased risk for RSV disease.
|
|
Key
phase III trials for Arexvy:
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
RSV
OA=ADJ-004
(Adults
≥ 60 years old)
NCT04732871
|
III
|
A
randomised, open-label, multi-country trial to evaluate the
immunogenicity, safety, reactogenicity and persistence of a single
dose of the RSVPreF3 OA investigational vaccine and different
revaccination schedules in adults aged 60 years and
above
|
Trial
start:
Q1
2021
Primary
data reported:
Q2
2022
|
Active,
not recruiting; primary endpoint met
|
RSV
OA=ADJ-006
(ARESVI-006;
Adults ≥ 60 years old)
NCT04886596
|
III
|
A
randomised, placebo-controlled, observer-blind, multi-country trial
to demonstrate the efficacy of a single dose of GSK’s
RSVPreF3 OA investigational vaccine in adults aged 60 years and
above
|
Trial
start:
Q2
2021
Primary
data reported:
Q2
2022;
two
season data reported:
Q2
2023
|
Active,
not recruiting; primary endpoint met
|
RSV
OA=ADJ-007
(Adults
≥ 60 years old)
NCT04841577
|
III
|
An
open-label, randomised, controlled, multi-country trial to evaluate
the immune response, safety and reactogenicity of RSVPreF3 OA
investigational vaccine when co-administered with FLU-QIV vaccine
in adults aged 60 years and above
|
Trial
start:
Q2
2021
Primary
data reported:
Q4
2022
|
Complete;
primary endpoint met
|
RSV
OA=ADJ-008
(Adults
≥ 65 years old)
NCT05559476
|
III
|
A phase
III, open-label, randomised, controlled, multi country trial to
evaluate the immune response, safety and reactogenicity of RSVPreF3
OA investigational vaccine when co-administered with FLU HD vaccine
in adults aged 65 years and above
|
Trial
start:
Q4
2022
Primary
data reported:
Q2
2023
|
Complete
|
RSV
OA=ADJ-009
(Adults
≥ 60 years old)
NCT05059301
|
III
|
A
randomised, double-blind, multi-country trial to evaluate
consistency, safety, and reactogenicity of 3 lots of RSVPreF3 OA
investigational vaccine administrated as a single dose in adults
aged 60 years and above
|
Trial
start:
Q4
2021
Trial
end:
Q2
2022
|
Complete;
primary endpoint met
|
RSV
OA=ADJ-017
(Adults
≥ 65 years old)
NCT05568797
|
III
|
A phase
III, open-label, randomised, controlled, multi-country trial to
evaluate the immune response, safety and reactogenicity of an
RSVPreF3 OA investigational vaccine when co-administered with FLU
aQIV (inactivated influenza vaccine – adjuvanted) in adults
aged 65 years and above
|
Trial
start:
Q4
2022
Primary
data reported:
Q2
2023
|
Complete
|
RSV
OA=ADJ-018
(Adults
50-59 years)
NCT05590403
|
III
|
A phase
III, observer-blind, randomised, placebo-controlled trial to
evaluate the non-inferiority of the immune response and safety of
the RSVPreF3 OA investigational vaccine in adults 50-59 years of
age, including adults at increased risk of respiratory syncytial
virus lower respiratory tract disease, compared to older adults
≥60 years of age
|
Trial
start:
Q4
2022
Primary
data reported:
Q4
2023
|
Active,
not recruiting; primary endpoint met
|
RSV
OA=ADJ-019
(Adults
≥ 60 years old)
NCT05879107
|
III
|
An
open-label, randomised, controlled, multi-country trial to evaluate
the immune response, safety and reactogenicity of RSVPreF3 OA
investigational vaccine when co-administered with PCV20 in adults
aged 60 years and older
|
Trial
start:
Q2
2023
Data
anticipated:
H2
2024
|
Active,
not recruiting
|
|
|||||
Key
phase III trials for Arexvy
(continued):
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
RSV
OA=ADJ-023
(Immunocompromised
Adults 50-59 years)
NCT05921903
|
IIb
|
A
randomised, controlled, open-label trial to evaluate the immune
response and safety of the RSVPreF3 OA investigational vaccine in
adults (≥50 years of age) when administered to lung and renal
transplant recipients comparing one versus two doses and compared
to healthy controls (≥50 years of age) receiving one
dose
|
Trial
start:
Q3
2023
Data
anticipated: 2025
|
Active,
recruiting
|
RSV-OA=ADJ-020
(Adults, aged >=50 years of age)
NCT05966090
|
III
|
A study
on the safety and immune response of investigational RSV OA vaccine
in combination with herpes zoster vaccine in healthy
adults
|
Trial
start:
Q3
2023
Data
anticipated:
H2
2024
|
Active,
not recruiting
|
|
Key
trials for bepirovirsen:
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
B-Well
1 bepirovirsen in nucleos(t)ide treated patients (chronic hepatitis
B)
NCT05630807
|
III
|
A
multi-centre, randomised, double-blind, placebo-controlled trial to
confirm the efficacy and safety of treatment with bepirovirsen in
participants with chronic hepatitis B virus
|
Trial
Start:
Q1
2023
Data
anticipated: 2026+
|
Recruiting
|
B-Well
2 bepirovirsen in nucleos(t)ide treated patients (chronic hepatitis
B)
NCT05630820
|
III
|
A
multi-centre, randomised, double-blind, placebo-controlled trial to
confirm the efficacy and safety of treatment with bepirovirsen in
participants with chronic hepatitis B virus
|
Trial
Start:
Q1
2023
Data
anticipated: 2026+
|
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
reported:
Q3
2023
|
Complete
|
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).
|
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
|
Complete
|
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
September 2023, the phase IIIb MenABCWY 019 trial (NCT04707391)
completed. The randomised, controlled, observer-blind trial
evaluated the safety and immunogenicity of GSK’s
meningococcal ABCWY (MenABCWY) vaccine candidate when administered
in healthy adolescents and adults, previously primed with
meningococcal ACWY vaccine. MenABCWY vaccine was well tolerated
with a favourable safety profile. The data provide information for
the label, supporting use of MenABCWY in future potential US ACIP
recommendations for adolescent meningococcal vaccination. MenABCWY
US file submission is expected in H1 2024 and data will be
published in a peer reviewed journal.
|
|
Key
trials for MenABCWY vaccine candidate:
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
MenABCWY
– 019
NCT04707391
|
IIIb
|
A
randomised, controlled, observer-blind trial to evaluate safety and
immunogenicity of GSK’s meningococcal ABCWY vaccine when
administered in healthy adolescents and adults, previously primed
with meningococcal ACWY vaccine
|
Trial
start:
Q1
2021
Data
reported:
Q4
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
GSK
continues to advance its early-stage HIV pipeline focused on
innovative long-acting injectable regimens and expects cabotegravir
to increasingly replace dolutegravir as the foundational integrase
inhibitor in its portfolio by the second half of the decade. In
2024, a registrational study for a ultra-long-acting prevention
registration with dosing intervals of four months is expected to
start. Regimen selection for an ultra-long-acting treatment and the
world’s first self-administered long- acting regimen for
treatment will also progress. Further data on GSK’s current
HIV portfolio and early-stage pipeline will be presented at CROI in
Colorado in March 2024.
|
Respiratory/Immunology
|
camlipixant (P2X3 receptor antagonist)
The
acquisition of Bellus in June 2023 included camlipixant (BLU-5937),
an investigational, highly selective oral P2X3 antagonist currently
in development for first-line treatment of adult patients suffering
from refractory chronic cough (RCC). The CALM phase III development
programme to evaluate the efficacy and safety of camlipixant for
use in adults with RCC is ongoing.
|
|
|
|
|
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
CALM-1
(refractory chronic cough)
NCT05599191
|
III
|
A
52-week, randomised, double-blind, placebo-controlled, parallel-arm
efficacy and safety trial with open-label extension of camlipixant
in adult participants with refractory chronic cough, including
unexplained chronic cough
|
Trial
start:
Q4
2022
Data
anticipated:
2025
|
Recruiting
|
CALM-2
(refractory chronic cough)
NCT05600777
|
III
|
A
24-week, randomised, double-blind, placebo-controlled, parallel-arm
efficacy and safety trial with open-label extension of camlipixant
in adult participants with refractory chronic cough, including
unexplained chronic cough
|
Trial
start:
Q1
2023
Data
anticipated:
2025
|
Recruiting
|
|
depemokimab (long acting anti-IL5)
Depemokimab
is 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 with phase III data
expected to begin reading out in H1 2024.
|
Key
phase III trials for depemokimab:
|
|
|
|
|
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
SWIFT-1
(severe eosinophilic asthma)
NCT04719832
|
III
|
A
52-week, randomised, double-blind, placebo-controlled,
parallel-group, multi-centre trial of the efficacy and safety of
depemokimab adjunctive therapy in adult and adolescent participants
with severe uncontrolled asthma with an eosinophilic
phenotype
|
Trial
start:
Q1
2021
Data
anticipated:
H1
2024
|
Active,
not recruiting
|
SWIFT-2
(severe eosinophilic asthma)
NCT04718103
|
III
|
A
52-week, randomised, double-blind, placebo-controlled,
parallel-group, multi-centre trial of the efficacy and safety of
depemokimab adjunctive therapy in adult and adolescent participants
with severe uncontrolled asthma with an eosinophilic
phenotype
|
Trial
start:
Q1
2021
Data
anticipated:
H1
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
|
Active,
not recruiting
|
ANCHOR-2
(CRSwNP)
NCT05281523
|
III
|
Efficacy
and safety of depemokimab in participants with CRSwNP
|
Trial
start:
Q2
2022
Data
anticipated:
H2
2024
|
Active,
not recruiting
|
|
Key
phase III trials for depemokimab continued:
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
OCEAN
(eosinophilic granulomatosis with polyangiitis; EGPA)
NCT05263934
|
III
|
Efficacy
and safety of depemokimab compared with mepolizumab in adults with
relapsing or refractory EGPA
|
Trial
start:
Q3
2022
Data
anticipated:
2025
|
Recruiting
|
DESTINY
(hyper-eosinophilic syndrome; HES)
NCT05334368
|
III
|
A
52-week, randomised, placebo-controlled, double-blind, parallel
group, multicentre trial of depemokimab in adults with uncontrolled
HES receiving standard of care (SoC) therapy
|
Trial
start:
Q3
2022
Data
anticipated:
2026+
|
Recruiting
|
Nucala
(mepolizumab)
In
January 2024, GSK announced that the China National Medical
Products Administration has approved Nucala as
an add-on maintenance treatment for severe eosinophilic asthma in
adults and adolescents aged 12 years and older. Nucala is
the first anti-Interleukin-5 (IL-5) targeting treatment approved
for use in China for adult and adolescent patients with this
condition. Nucala is
currently approved in China for use in adults with eosinophilic
granulomatosis with polyangiitis (EGPA) and was included on the
National Reimbursement Drug List in January 2023.
The
MATINEE phase III trial investigating Nucala in
patients with chronic obstructive pulmonary disease (COPD) is
expected to readout in the second half of 2024.
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
MATINEE
(chronic obstructive pulmonary disease; COPD)
NCT04133909
|
III
|
A
multicentre randomised, double-blind, parallel-group,
placebo-controlled trial of mepolizumab 100 mg subcutaneously as
add-on treatment in participants with COPD experiencing frequent
exacerbations and characterised by eosinophil levels
|
Trial
start:
Q4
2019
Data
anticipated:
H2
2024
|
Active,
not recruiting
|
Oncology
|
Blenrep
(belantamab
mafodotin)
In
November 2023, GSK announced positive headline results from a
planned interim analysis of the DREAMM-7 head-to-head phase III
trial evaluating belantamab mafodotin as a second-line or later
treatment for relapsed or refractory multiple myeloma. The trial
met its primary endpoint of progression-free survival (PFS) and
showed that belantamab mafodotin when combined with bortezomib plus
dexamethasone (BorDex) significantly extended the time to disease
progression or death versus daratumumab plus BorDex, an existing
standard of care for relapsed/refractory multiple myeloma. A strong
and clinically meaningful overall survival (OS) trend with nominal
p value < 0.0005 was also observed at the time of this analysis,
and the trial continues to follow up for OS. Results will be shared
with health authorities and presented at a scientific
congress.
In
December 2023, the Committee for Medicinal Products for Human Use
(CHMP) of the European Medicines Agency (EMA) confirmed its initial
negative opinion recommending against renewal of Blenrep’s
conditional marketing authorisation in the EU for its existing
fifth line and later monotherapy indication. The opinion was based
on data from the DREAMM-3 and DREAMM-2 clinical trials, as well as
post-marketing data.
The
DREAMM (DRiving Excellence in Approaches to Multiple Myeloma)
clinical development programme continues to evaluate the potential
of belantamab mafodotin with data from the ongoing head-to-head
phase III DREAMM-8 trial evaluating belantamab mafodotin in
combination with pomalidomide and dexamethasone versus bortezomib
in combination with pomalidomide and dexamethasone expected in the
second half of 2024.
|
Key
phase III trials for Blenrep:
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
DREAMM-7
(2L+ multiple myeloma; MM)
NCT04246047
|
III
|
A
multi-centre, open-label, randomised trial to evaluate the efficacy
and safety of the combination of belantamab mafodotin, bortezomib,
and dexamethasone (B-Vd) compared with the combination of
daratumumab, bortezomib and dexamethasone (D-Vd) in participants
with relapsed/refractory multiple myeloma
|
Trial
start:
Q2
2020
Primary
data reported:
Q4
2023
|
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
2024
|
Enrolment
complete
|
Jemperli
(dostarlimab)
In
December 2023, the European Commission granted marketing
authorisation for Jemperli
in combination with carboplatin-paclitaxel (chemotherapy), for the
treatment of adult patients with mismatch repair deficient
(dMMR)/microsatellite instability-high (MSI-H) primary advanced or
recurrent endometrial cancer and who are candidates for systemic
therapy. This is the first and only frontline immuno-oncology
treatment approved in the European Union for this type of cancer.
Additionally, with the authorisation in this indication, the
Commission’s conditional approval for Jemperli
as a monotherapy for treating adult patients with dMMR/MSI-H
recurrent or advanced endometrial cancer that has progressed on or
following prior treatment with a platinum-containing regimen was
converted to full approval.
Jemperli was also approved by Canada in November and
Switzerland in December in combination with chemotherapy for the
treatment of dMMR/MSI-H primary advanced or recurrent endometrial
cancer. The application remains under review in Australia and
Singapore as part of the US FDA’s Oncology Center of
Excellence Project Orbis framework, which allows for concurrent
submission to and review by US and other international regulatory
authorities.
In
December 2023, GSK announced positive headline results from a
planned analysis of Part 2 of the RUBY/ENGOT-EN6/GOG3031/NSGO phase
III trial investigating dostarlimab plus standard-of-care
chemotherapy (carboplatin and paclitaxel), followed by dostarlimab
plus Zejula
(niraparib) as maintenance therapy, in adult patients with primary
advanced or recurrent endometrial cancer. The trial, which
evaluated this combination against placebo plus chemotherapy
followed by placebo, met its primary endpoint of progression-free
survival, with a statistically significant and clinically
meaningful benefit observed in both the overall patient population
and in a subpopulation of patients with mismatch repair
proficient/microsatellite stable (MMRp/MSS) tumours.
Jemperli is the foundation of our ongoing
immuno-oncology-based research and development programme, and these
updates reinforce our approach of building combination therapies
with dostarlimab as the backbone in an effort to improve patient
outcomes and options.
|
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 reported:
Q4
2023
|
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: 2026+
|
Recruiting
|
AZUR-2
(untreated perioperative T4N0 or stage III colon
cancer)
NCT05855200
|
III
|
An
open-label, randomised trial of perioperative dostarlimab
monotherapy versus standard of care in participants with untreated
T4N0 or stage III dMMR/MSI-H resectable colon cancer
|
Trial
start:
Q2
2023
Data
anticipated: 2026+
|
Recruiting
|
COSTAR
Lung (advanced non-small cell lung cancer that has progressed on
prior PD-(L)1 therapy and chemotherapy)
NCT04655976
|
II/III
|
A
multi-centre, randomised, parallel group treatment, open label
trial comparing cobolimab + dostarlimab + docetaxel to dostarlimab
+ docetaxel to docetaxel alone in participants with advanced
non-small cell lung cancer who have progressed on prior
anti-PD-(L)1 therapy and chemotherapy
|
Trial
start:
Q4
2020
Data
anticipated:
H2
2024
|
Active,
not recruiting
|
|
|
Ojjaara
(momelotinib)
Following
the September 2023 approval of Ojjaara
by the US FDA, GSK announced in January 2024 that the European
Commission granted marketing authorisation for momelotinib under
the brand name Omjjara
for the treatment of disease-related splenomegaly (enlarged spleen)
or symptoms in adult patients with moderate to severe anaemia who
have primary myelofibrosis, post polycythaemia vera myelofibrosis
or post essential thrombocythaemia myelofibrosis and who are Janus
kinase (JAK) inhibitor naïve or have been treated with
ruxolitinib. Omjjara
is the only medicine in the European Union (EU) indicated for both
newly diagnosed and previously treated myelofibrosis patients with
moderate to severe anaemia for treating splenomegaly and
symptoms.
|
|
|
|
Key
phase III trial for momelotinib:
|
|
|
|
|
|
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
MOMENTUM
(myelofibrosis)
NCT04173494
|
III
|
A
randomised, double-blind, active control phase III trial intended
to confirm the differentiated clinical benefits of the
investigational drug momelotinib (MMB) versus danazol (DAN) in
symptomatic and anaemic subjects who have previously received an
approved Janus kinase inhibitor (JAKi) therapy for myelofibrosis
(MF)
|
Trial
start:
Q1
2020
Primary
data reported:
Q1
2022
|
Complete;
primary endpoint met
|
Zejula
(niraparib)
GSK
continues to assess the potential of Zejula
across multiple tumour types and in combination with other agents.
The ongoing development programme includes several combination
studies, including the RUBY Part 2 phase III trial of niraparib and
dostarlimab, a programmed death receptor-1 (PD-1)-blocking
antibody, in recurrent or primary advanced (stage III or IV)
endometrial cancer, which reported positive headline results in
December 2023.
|
Key
phase III trials for Zejula
(see also RUBY Part 2 in Jemperli
section):
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
ZEAL-1L
(1L advanced non-small cell lung cancer maintenance )
NCT04475939
|
III
|
A
randomised, double-blind, placebo-controlled, multi-centre trial
comparing niraparib plus pembrolizumab versus placebo plus
pembrolizumab as maintenance therapy in participants whose disease
has remained stable or responded to first-line platinum-based
chemotherapy with pembrolizumab for Stage IIIB/IIIC or IV non-small
cell lung cancer
|
Trial
start:
Q4
2020
Data
anticipated:
H2
2024
|
Active,
not recruiting
|
FIRST
(1L ovarian cancer maintenance)
NCT03602859
|
III
|
A
randomised, double-blind, comparison of platinum-based therapy with
dostarlimab (TSR-042) and niraparib versus standard of care
platinum-based therapy as first-line treatment of stage III or IV
non-mucinous epithelial ovarian cancer
|
Trial
start:
Q4
2018
Data
anticipated:
H1
2024
|
Active,
not recruiting
|
|
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 19 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 2024 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 for inhaled respiratory, dermatology,
antibiotics and other diseases.
Specialty Medicines
Specialty
Medicines are typically prescription medicines used to treat
complex or rare chronic conditions. For GSK, this comprises
medicines for infectious diseases, HIV, Oncology,
Respiratory/Immunology and Other.
Percentage points
Percentage
points of growth which is abbreviated to ppts.
Non-controlling interest
Non-controlling
interest is the equity in a subsidiary not attributable, directly
or indirectly, to a parent.
RAR (Returns and Rebates)
GSK
sells to customers both commercial and government mandated
contracts with reimbursement arrangements that include rebates,
chargebacks and a right of return for certain pharmaceutical
products principally in the US. Revenue recognition reflects
gross-to-net sales adjustments as a result. These adjustments are
known as the RAR accruals and are a source of significant
estimation uncertainty and fluctuation which can have a material
impact on reported revenue from one accounting period to the
next.
Risk adjusted sales
Pipeline
risk-adjusted sales are based on the latest internal estimate of
the probability of technical and regulatory success for each asset
in development.
Compound annual growth rate (CAGR)
CAGR is
defined as the compound annual growth rate and shows the annualised
average rate for growth in sales and adjusted operating profit
between 2021 to 2026, assuming growth takes place at an
exponentially compounded rate during those years.
|
||
|
|
|
Brand names and partner acknowledgements: brand names appearing in
italics throughout this document are trademarks of GSK or
associated companies or used under licence by the
Group.
|
|
|
|
|
|
Guidance and outlooks, assumptions and cautionary
statements
|
|
|
2024
Guidance
GSK
expects 2024 sales to increase between 5 to 7 per cent and Adjusted
Operating profit to increase between 7 to 10 per cent. Adjusted
Earnings per share is expected to increase between 6 to 9 per cent.
This guidance is provided at CER and excludes any contribution from
COVID-19 related solutions.
The
Group has made planning assumptions that we expect sales to
increase between 5 to 7 per cent, with high single digit to low
double-digit growth for Vaccines, low double-digit growth for
Specialty Medicines and a mid-single-digit decline for General
Medicines.
2021-26
sales and adjusted operating profit growth outlooks and 2031 sales
outlook
GSK
upgrades the outlooks, from those previously given, for the period
2021-2026 and for 2031. For the period 2021-2026, GSK now expects
sales to grow more than 7% on a CAGR basis and adjusting operating
profit to increase more than 11%, on the same basis. This compares
to previous outlooks of more than 5% and more than 10%
respectively. Adjusted operating profit margin in 2026 is now
expected to be more than 31%.
By
2031, GSK now expects to achieve sales of more than £38
billion on a risk-adjusted basis and at CER. This is an increase of
£5 billion compared to the estimate given in 2021 and
continues to exclude any contributions from early-stage pipeline
assets, anticipated business development and Blenrep.
GSK expects to maintain a continued strong focus on margin
improvements, while retaining flexibility to invest in future
growth. Recognising that GSK will likely face loss of exclusivity
for dolutegravir during 2028 to 2030 in US and EU, with the
majority of impact 2029 to 2030, GSK has today stated that it
expects operating margins to be broadly stable through this period.
GSK expects an effective transition within its HIV portfolio
towards new long-acting treatment and prevention therapies, margin
mix benefit from growth in higher operating margin Vaccine and
Specialty Medicine products, and a continued focus on achievable
productivity gains, notably in supply chain and in
SG&A.
These
outlooks are provided at CER and exclude any contribution from
COVID-19 related solutions.
Assumptions
and basis of preparation related to 2024 guidance, 2021-26 and 2031
outlooks
In
outlining the guidance for 2024 and outlooks for the period
2021-2026 and for 2031, the Group has made certain assumptions
about the macro-economic environment, the healthcare sector
(including regarding existing and possible additional governmental
legislative and regulatory reform), the different markets and
competitive landscape in which the Group operates and the delivery
of revenues and financial benefits from its current portfolio, its
development pipeline and restructuring programmes.
2024
Guidance
These
planning assumptions as well as operating profit and earnings per
share guidance and dividend expectations assume no material
interruptions to supply of the Group’s products, no material
mergers, acquisitions or disposals, no material litigation or
investigation costs for the Company (save for those that are
already recognised or for which provisions have been made) and no
change in the Group’s shareholdings in ViiV Healthcare. The
assumptions also assume no material changes in the healthcare
environment or unexpected significant changes in pricing as a
result of government or competitor action. The 2024 guidance
factors in all divestments and product exits announced to
date.
2021-26
and 2031 outlooks
The
assumptions for GSK’s updated revenue, operating profit,
operating margin and cash flow outlooks, 2031 revenue outlook and
margin expectations through dolutegravir loss of exclusivity assume
the delivery of revenues and financial benefits from its current
and development pipeline portfolio of drugs and vaccines (which
have been assessed for this purpose on a risk-adjusted basis, as
described further below); regulatory approvals of the pipeline
portfolio of drugs and vaccines that underlie these expectations
(which have also been assessed for this purpose on a risk-adjusted
basis, as described further below); no material interruptions to
supply of the Group’s products; successful delivery of the
ongoing and planned integration and restructuring plans; no
material mergers, acquisitions or disposals or other material
business development transactions; no material litigation or
investigation costs for the company (save for those that are
already recognised or for which provisions have been made); no
share repurchases by the company; and no change in the
shareholdings in ViiV Healthcare. GSK assumes no premature loss of
exclusivity for key products over the period.
The
assumptions for GSK’s updated revenue, operating profit,
operating margin and cash flow outlooks, 2031 revenue outlook and
margin expectations through dolutegravir loss of exclusivity also
factor in all divestments and product exits announced to date as
well as material costs for investment in new product launches and
R&D. Risk-adjusted sales includes sales for potential planned
launches which are risk-adjusted based on the latest internal
estimate of the probability of technical and regulatory success for
each asset in development. Potential future sales contribution from
Blenrep
has been excluded.
Notwithstanding
these guidance, outlooks and expectations, there is still
uncertainty as to whether our assumptions, guidance, outlooks and
expectations will be achieved, including based on the other
assumptions outlined above.
All
outlook statements are given on a constant currency basis and use
2023 average exchange rates as a base (£1/$1.24,
£1/€1.15, £1/Yen 175). 2021-2026 outlook refers to
the 5 years to 2026 with 2021 as the base year.
|
|
Assumptions
and cautionary statement regarding forward-looking
statements
The
Group’s management believes that the assumptions outlined
above are reasonable, and that the guidance, outlooks, and
expectations described in this report are achievable based on those
assumptions. However, given the forward-looking nature of these
guidance, outlooks, and expectations, they are subject to greater
uncertainty, including potential material impacts if the above
assumptions are not realised, and other material impacts related to
foreign exchange fluctuations, macro-economic activity, the impact
of outbreaks, epidemics or pandemics, changes in legislation,
regulation, government actions or intellectual property protection,
product development and approvals, actions by our competitors, and
other risks inherent to the industries in which we
operate.
This
document contains statements that are, or may be deemed to be,
“forward-looking statements”. Forward-looking
statements give the Group’s current expectations or forecasts
of future events. An investor can identify these statements by the
fact that they do not relate strictly to historical or current
facts. They use words such as ‘anticipate’,
‘estimate’, ‘expect’, ‘intend’,
‘will’, ‘project’, ‘plan’,
‘believe’, ‘target’ and other words and
terms of similar meaning in connection with any discussion of
future operating or financial performance. In particular, these
include statements relating to future actions, prospective products
or product approvals, future performance or results of current and
anticipated products, sales efforts, expenses, the outcome of
contingencies such as legal proceedings, dividend payments and
financial results. Other than in accordance with its legal or
regulatory obligations (including under the Market Abuse
Regulation, the UK Listing Rules and the Disclosure and
Transparency Rules of the Financial Conduct Authority), the Group
undertakes no obligation to update any forward-looking statements,
whether as a result of new information, future events or otherwise.
The reader should, however, consult any additional disclosures that
the Group may make in any documents which it publishes and/or files
with the SEC. All readers, wherever located, should take note of
these disclosures. Accordingly, no assurance can be given that any
particular expectation will be met and investors are cautioned not
to place undue reliance on the forward-looking
statements.
All
guidance, outlooks and expectations should be read together with
the guidance and outlooks, assumptions and cautionary statements in
this Q4 2023 earnings release.
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.
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GSK plc
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(Registrant)
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Date:
January 31, 2024
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By:/s/ VICTORIA
WHYTE
--------------------------
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Victoria Whyte
|
|
Authorised
Signatory for and on
|
|
behalf
of GSK plc
|
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