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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 | |
---|---|---|---|---|---|---|---|---|
-0.14 | -0.35% | 39.87 | 1,274 | 09:56:00 |
Issued: Wednesday, 2 November 2022, London U.K.
|
GSK
delivers strong Q3 2022 sales of £7.8 billion +18% AER, +9%
CER and Total EPS 255.9p +>100% AER, +>100% CER; Adjusted EPS
of 46.9p +25% AER, +11% CER
|
|
|
Highlights
|
|
|
|
Strong commercial execution drives continued sales growth across
Specialty Medicines, Vaccines and General Medicines
|
|
●
|
Specialty
Medicines £2.7 billion +36% AER, +24% CER; HIV +19% AER, +7%
CER; Oncology +28% AER, +19% CER; Immuno-inflammation and other
specialty +29% AER +17% CER; COVID-19 solutions (Xevudy) sales £0.4
billion
|
●
|
Vaccines
£2.5 billion +14% AER, +5% CER; Shingrix £760 million +51% AER,
+36% CER
|
●
|
General
Medicines £2.6 billion +7% AER, +1% CER
|
|
|
Prioritised investment in growth with cost discipline
|
|
●
|
Total
continuing operating margin 15.2%. Total EPS 255.9p >100% AER,
>100% CER primarily reflecting the gain from discontinued
operations arising on the demerger of the Consumer Healthcare
business. Total continuing EPS 18.8p -14% AER, -35%
CER
|
●
|
Adjusted
operating margin 33.3%. Adjusted operating profit growth +18% AER,
+4% CER. This included a contribution to growth from COVID-19
solutions of approximately +1% AER, +2% CER
|
●
|
Adjusted
EPS 46.9p +25% AER, +11% CER. This included a contribution to
growth from COVID-19 solutions of approximately +1% AER, +3%
CER
|
●
|
Q3 2022
continuing cash generated from operations £1.9 billion. Free
cash flow £0.7 billion
|
|
|
Continued strengthening of late-stage R&D pipeline with
regulatory approvals, positive data read-outs and further
complementary business development
|
|
●
|
US FDA
approval for Boostrix
maternal and Menveo
single-vial presentation. Momelotinib for treatment of
myelofibrosis submitted to US FDA
|
●
|
Positive
phase III data for RSV older adults candidate vaccine presented at
ID Week 2022. Priority Review granted in the US and regulatory
submission acceptance in EU and Japan
|
●
|
Completed
Affinivax acquisition on 15 August 2022. Announced exclusive
licence agreement with Spero Therapeutics for late-stage antibiotic
tebipenem
|
●
|
Phase
III data readouts expected in Q4 2022: Jemperli in 1L endometrial cancer,
Blenrep in 3L multiple
myeloma and gepotidacin for treatment of uncomplicated urinary
tract infection
|
|
|
Growing revenues and improving margin support confidence in
outlooks
|
|
●
|
2022
Guidance raised: expect to deliver growth in sales of between 8% to
10% CER and growth in 2022 adjusted operating profit of between 15%
to 17% CER
|
●
|
2022
guidance excludes any contribution from COVID-19
solutions
|
●
|
Dividend
of 13.75p/share declared for Q3 2022. No change to expected
dividend from GSK of 61.25p/share for FY 2022
|
|
Emma Walmsley, Chief Executive Officer, GSK:
“GSK
has delivered another quarter of excellent performance, with strong
growth in Specialty Medicines, record sales for our shingles
vaccine, Shingrix, and
further improvements in adjusted operating profit. We are again
raising our full-year
guidance and expect good momentum in 2023, further strengthening
our confidence in our performance outlooks, driven by Shingrix global expansion and expected
new launches including our new RSV vaccine. We are also making good
progress to strengthen our early-stage pipeline and will continue
to invest in targeted business development to build optionality and
support growth in the second half of the
decade.”
|
The Total results
are presented in summary on page 2 and under ‘Financial
performance’ on pages 10 and 22 and Adjusted results
reconciliations are presented on pages 18, 19, 30 and 31. Adjusted
results are a non-IFRS measure excluding discontinued operations
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 38 and £% or AER% growth,
CER% growth, free cash flow and other non-IFRS measures are defined
on page 65, COVID-19 solutions are also defined on page 66. GSK
provides guidance on an Adjusted results basis only, for the
reasons set out on page 38. All expectations, guidance and targets
regarding future performance and dividend payments should be read
together with ‘Guidance, assumptions and cautionary
statements’ on pages 67 and 68.
|
Q3 2022 results
|
|||||||||||
|
Q3 2022
|
|
Growth
|
|
|
|
9 months 2022
|
|
Growth
|
|
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
7,829
|
|
18
|
|
9
|
|
21,948
|
|
25
|
|
19
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
continuing operating profit*
|
1,191
|
|
(14)
|
|
(35)
|
|
4,565
|
|
18
|
|
5
|
Total
EPS
|
255.9p
|
|
>100
|
|
>100
|
|
322.0p
|
|
>100
|
|
>100
|
Total
continuing EPS
|
18.8p
|
|
(14)
|
|
(35)
|
|
73.6p
|
|
2
|
|
(11)
|
Total
discontinued EPS*
|
237.1p
|
|
>100
|
|
>100
|
|
248.4p
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
operating profit
|
2,605
|
|
18
|
|
4
|
|
6,556
|
|
27
|
|
16
|
Adjusted
EPS
|
46.9p
|
|
25
|
|
11
|
|
113.9p
|
|
31
|
|
20
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
flow from operations attributable to
continuing
operations
|
1,907
|
|
(12)
|
|
|
|
5,843
|
|
49
|
|
|
Free
cash flow
|
712
|
|
(13)
|
|
|
|
2,453
|
|
>100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
The amounts presented in the table above for continuing operations
and Adjusted results excludes the Consumer Healthcare business
discontinued operation. The amounts presented for discontinued EPS
are for the demerger of the Consumer Healthcare business. The
presentation of continuing and discontinued operations under IFRS 5
are set out on page 51.
|
Performance: Full year
guidance
|
Demerger of Consumer
Healthcare
|
On 18
July 2022, GSK plc separated its Consumer Healthcare business from
the GSK Group to form Haleon, an independent listed company. The
separation was effected by way of a demerger of 80.1% of
GSK’s 68% holding in the Consumer Healthcare business to GSK
shareholders. Following the demerger, 54.5% of Haleon was held in
aggregate by GSK Shareholders, 6.0% remains held by GSK (including
shares received by GSK’s consolidated ESOP trusts) and 7.5%
remains held by certain Scottish Limited Partnerships (SLPs) set up
to provide collateral for a funding mechanism pursuant to which GSK
will provide additional funding for its UK defined benefit Pension
Schemes. The aggregate ownership by GSK (including ownership by the
ESOP trusts and SLPs) after the demerger of 13.5% is measured at
fair value with changes through profit and loss.
The
gain on the demerger for the distributed stake was £7.2
billion which was recognised in Q3 2022. The asset distributed was
the 54.5% ownership of the Consumer Healthcare business. The net
assets derecognised reflected Consumer Healthcare transactions up
to 18 July 2022 which included pre-separation dividends declared
and settled before 18 July 2022. Those dividends included:
£10.4 billion (£7.1 billion attributable to GSK) of
dividends funded by Consumer Healthcare debt that was partially
on-lent during Q1 2022 and dividends of £0.6 billion
(£0.4 billion attributable to GSK) from available cash
balances. GSK’s share of the pre-separation dividends funded
by debt resulted in a reduction of net debt for GSK on demerger.
The gain on the demerger arising from remeasurement of the retained
stake was £2.4 billion which was recognised in Q3
2022.
The
total gain on the demerger of the Consumer Healthcare business in
Q3 2022 was £9.6 billion. In addition, the Profit after
taxation from discontinued operations for the Consumer Healthcare
business from 1 January to 18 July 2022 was £0.6 billion which
increased the Total profit after tax of discontinued operations in
the nine month period to £10.2 billion.
|
Results
presentation
|
A
conference call and webcast for investors and analysts of the nine
months and Q3 2022 results will be hosted by Emma Walmsley, CEO, at
12pm GMT on 2 November 2022. Presentation materials will be
published on www.gsk.com prior to the webcast and a transcript of
the webcast will be published subsequently.
Information
available on GSK’s website does not form part of, and is not
incorporated by reference into, this Results
Announcement.
|
Operating performance
summary
|
The
amounts below are from continuing operations unless otherwise
specified.
|
Total turnover in Q3 2022 reflected strong performance in Specialty
Medicines and Vaccines product groups and in the nine months 2022
reflected strong performance in all three product groups.
Commercial Operations turnover excluding pandemic sales grew 15% at
AER, 7% at CER in the third quarter and 15% at AER, 10% at CER in
the nine months. Specialty Medicines included sales of
Xevudy
of £411 million in the third
quarter and £2,184 million in the nine months. Under
Speciality Medicines Nucala and Benlysta grew double digit at AER and at CER in the third
quarter, and in the nine months all therapy areas grew double digit
at AER. Vaccines growth in Q3 2022 and in the nine months 2022
reflected strong Shingrix performance partially offset by pandemic adjuvant
sales in 2021.
Specialty Medicines
Specialty
Medicines sales growth in Q3 2022 and in the nine months 2022 was
driven by consistent growth in all therapy areas. Specialty
Medicines excluding sales of Xevudy were £2,338 million, up 22%
at AER, 11% at CER in the quarter and £6,404 million, up 19%
at AER, 13% at CER in the nine months 2022.
Vaccines
Vaccines sales excluding pandemic adjuvant sales grew 19% at AER,
9% at CER in the third quarter and 27% at AER, 20% at CER in the
nine months 2022. Growth in Vaccines reflected a favourable
comparator in 2021 which was impacted by COVID-19 related
disruptions in several markets as well as strong commercial
execution of Shingrix. In the third quarter, growth was partially
offset by MMR/V vaccines supply constraints and US Centers for
Disease Control and Prevention (CDC) stockpile
borrows.
General Medicines
In
General Medicines, growth in Q3 2022 and in the nine months 2022
was mainly driven by Trelegy in respiratory and the
post-pandemic rebound of the antibiotic market in Other General
Medicines, partially offset by the impact of generic competition in
US, Europe, and Japan. In Q3 2022, there was a 3 percentage point
decrease in growth due to higher Returns and Rebates (RAR)
adjustments in the comparative quarter.
Operating profit
Q3
2022
Total
operating profit was £1,191 million compared with £1,380
million in Q3 2021. The reduction primarily reflected the higher
remeasurement charges for contingent consideration liabilities and
the fair value loss on the retained stake in Haleon, partly offset
by increased profits on turnover growth of 9% at CER. Adjusted
operating profit was £2,605 million, 18% higher than Q3 2021
at AER and 4% at CER on a turnover increase of 9% at CER. The
Adjusted operating margin of 33.3% was stable at AER and 1.6%
percentage points lower at CER than in Q3 2021. This primarily
reflected the impact from low margin COVID-19 solutions sales
(Xevudy) as well as
increased launch investment in SG&A in Specialty Medicines and
Vaccines. This was partly offset by higher royalty
income.
9 months
2022
Total
operating profit was £4,565 million compared with £3,865
million in 2021. This included the £0.9 billion upfront income
received from the settlement with Gilead Sciences, Inc (Gilead) and
increased profits on turnover growth of 19% at CER, partly offset
by higher remeasurement charges for contingent consideration
liabilities and a fair value loss of £377 million on the
retained stake in Haleon. Adjusted operating profit was £6,556
million, 27% higher at AER and 16% at CER than 2021 on a turnover
increase of 19% at CER. The Adjusted operating margin of 29.9% was
0.5 percentage points higher at AER and 0.7 percentage points lower
at CER compared to 2021. This reflected the impact from low margin
COVID-19 solutions sales (Xevudy). This was offset by operating
leverage from strong sales growth, mix benefit and higher royalty
income.
Earnings per share
Q3
2022
Total
EPS from continuing operations was 18.8p compared with 21.9p in Q3
2021. The reduction primarily reflected increased charges for
remeasurement of contingent consideration liabilities and a fair
value loss on the retained stake in Haleon. Adjusted EPS was 46.9p
compared with 37.4p in Q3 2021, up 25% at AER, 11% at CER, on a 4%
CER increase in Adjusted operating profit primarily reflecting
growth in all three product groups, lower interest charges from
reduced debt and a lower effective tax rate compared to Q3 2021,
partly offset by lower leverage as a result of higher lower margin
sales of pandemic solutions (Xevudy) as well as increased launch
investment in SG&A.
9 months
2022
Total
EPS from continuing operations was 73.6p compared with 72.2p in
2021. This primarily reflected the £0.9 billion upfront income
received from the settlement with Gilead and increased profits on
turnover growth of 19% at CER, partly offset by higher
remeasurement charges for contingent consideration liabilities and
a £377 million fair value loss on the retained stake in Haleon
as well as an unfavourable comparison due to a credit of £325
million to Taxation in Q2 2021 resulting from the revaluation of
deferred tax assets.
Adjusted
EPS was 113.9p compared with 86.8p in 2021, up 31% at AER, 20% at
CER, on a 19% CER turnover increase. Adjusted operating profit
reflected higher COVID-19 solutions sales at low margin. Operating
leverage from growth in sales of Specialty Medicines and Vaccines,
beneficial mix, higher royalty income and a lower effective tax
rate was partly offset by increased investment behind launches in
Specialty Medicines and Vaccines plus higher supply chain, freight
and distribution costs and higher non-controlling
interests.
Cash flow
Q3
2022
Cash
generated from operations attributable to continuing operations for
the quarter was £1,907 million (Q3 2021: £2,161 million).
The decrease primarily reflected increased cash contributions to
the UK defined benefit pension schemes and unfavourable timing of
profit share payments for Xevudy partly offset by an increase in
operating profit, including beneficial exchange, favourable timing
of returns and rebates and favourable timing of
collections.
9 months
2022
Cash
generated from operations attributable to continuing operations for
nine months was £5,843 million (2021: £3,920 million).
The increase primarily reflected a significant increase in
operating profit including the upfront income from the settlement
with Gilead, favourable exchange impacts and favourable timing of
collections, partly offset by unfavourable timing of profit share
payments for Xevudy sales,
increased cash contribution to pensions, increased contingent
consideration payments reflecting the Gilead settlement in February
2022 and a higher seasonal increase in inventory.
Profit and earnings per share from discontinued
operations
Q3
2022
Discontinued
operations include the Consumer Healthcare business and certain
directly attributable Corporate costs. Profit after taxation from
discontinued operations amounted to £9,574 million (Q3 2021:
£422 million). This includes £9,578 million for the gain
arising on the demerger of Consumer Healthcare split between the
amount distributed to shareholders on demerger of £7,227
million, and profit after tax on discontinued operations for the
retained stake of £2,351 million (Q3 2021: £nil). The
overall gain on the demerger of £9,578 was partly offset by
the loss after taxation from discontinued operations including the
Consumer Healthcare business of £4 million (Q3 2021: £422
million profit) from 1 to 18 July 2022.
EPS
from discontinued operations was 237.1p, compared with 7.3p in Q3
2021. The increase primarily reflected the profit after taxation
for discontinued operations recognised for the Consumer Healthcare
business demerger. For further details see page 54.
Total earnings per share
Total
EPS was 255.9p compared with 29.2p in Q3 2021. The increase
primarily reflected the profit after taxation for discontinued
operations recognised on the Consumer Healthcare business
demerger.
9 months
2022
Discontinued
operations include the Consumer Healthcare business and certain
Corporate costs directly attributable to the Consumer Healthcare.
Profit after taxation from discontinued operations amounted to
£10,199 million (2021: £1,070 million). This includes
£9,578 million for the gain arising on the demerger of
Consumer Healthcare split between the amount distributed to
shareholders on demerger of £7,227 million and profit after
taxation on discontinued operations for the retained stake of
£2,351 million (2021: £nil). The overall gain on the
demerger of £9,578 was increased by the profit after taxation
from discontinued operations including the Consumer Healthcare
business of £621 million (2021: £1,070 million) from 1
January to 18 July 2022.
Total earnings per share
EPS
from discontinued operations was 248.4p, compared with 18.6p in
2021. The increase primarily reflected the profit after taxation
for discontinued operations recognised on the Consumer Healthcare
business demerger. For further details see page 54, discontinued
operations.
|
Q3
2022 pipeline highlights (since 27 July
2022)
|
|
Medicine/vaccine
|
Trial (indication, presentation)
|
Event
|
Regulatory approvals or other regulatory action
|
Juluca
|
HIV
|
Regulatory approval (CN)
|
Boostrix
|
Tdap (maternal)
|
Regulatory approval (US)
|
|
Menveo
|
Invasive meningococcal disease, liquid formulation
|
Regulatory approval (US)
|
|
Regulatory submissions or acceptances
|
momelotinib
|
MOMENTUM (myelofibrosis with anaemia)
|
Regulatory acceptance (US)
|
cabotegravir
|
Pre-exposure prophylaxis, long-acting injectable
|
Regulatory acceptance (EU)
|
|
RSV older adult vaccine candidate
|
AreSVi 006 (RSV, older adults aged 60+ years)
|
Priority Review granted (US) Regulatory acceptance
(EU, JP)
|
|
SKYCovione COVID-19
vaccine
|
COVID-19
|
Regulatory submission (EU)
|
|
Phase III data readouts or other significant events
|
Jemperli
|
PERLA (non-small cell lung cancer)
|
Positive phase II data
|
RSV older adult vaccine candidate
|
AreSVi 006 (RSV, older adults aged 60+ years)
|
Positive phase III data presentation
|
|
otilimab
|
contRAst programme (rheumatoid arthritis)
|
Phase III data readout; concluded development
|
Anticipated news flow
|
Timing
|
Medicine/vaccine
|
Trial (indication, presentation)
|
Event
|
Q4 2022
|
Blenrep
|
DREAMM-3 (3L+ multiple myeloma)
|
Phase III data readout
|
Blenrep
|
DREAMM-3 (3L+ multiple myeloma)
|
Regulatory submission
(US, EU)
|
|
Jemperli
|
RUBY (1L endometrial cancer)
|
Phase III data readout (interim analysis)
|
|
momelotinib
|
MOMENTUM (myelofibrosis with anaemia)
|
Regulatory submission (EU)
|
|
gepotidacin
|
EAGLE (uncomplicated urinary tract infection)
|
Phase III data readout (interim analysis)
|
|
MenABCWY (gen 1) vaccine candidate
|
Meningitis ABCWY
|
Phase III data readout
|
|
Rotarix
|
Rotavirus, liquid formulation
|
Regulatory decision (US)
|
|
COVID-19 vaccine candidate (Sanofi)
|
COVID-19
|
Regulatory decision (EU)
|
Timing
|
Medicine/vaccine
|
Trial (indication, presentation)
|
Event
|
H1 2023
|
bepirovirsen
|
B-Together (hepatitis B virus)
|
Phase IIb data readout
|
daprodustat
|
ASCEND (anaemia of chronic kidney disease)
|
Regulatory decision
(US, EU)
|
|
Nucala
|
Severe asthma
|
Regulatory submission (CN)
|
|
momelotinib
|
MOMENTUM (myelofibrosis with anaemia)
|
Regulatory decision (US)
|
|
Blenrep
|
DREAMM-8 (2L+ multiple myeloma)
|
Phase III data readout
|
|
Blenrep
|
DREAMM-7 (2L+ multiple myeloma)
|
Phase III data readout
|
|
Jemperli
|
RUBY (1L endometrial cancer)
|
Regulatory submission
(US, EU)
|
|
gepotidacin
|
EAGLE (uncomplicated urinary tract infection)
|
Regulatory submission
(US)
|
|
MenABCWY (gen 1) vaccine candidate
|
Meningitis ABCWY
|
Regulatory submission (US)
|
|
RSV older adult vaccine candidate
|
AreSVi 006 (RSV, older adults aged 60+ years)
|
Regulatory decision (US)
|
|
Shingrix
|
Shingles, at-risk adults aged 18+ years
|
Regulatory decision (JP)
|
|
SKYCovione COVID-19
vaccine
|
COVID-19
|
Regulatory decision (EU)
|
|
COVID-19 vaccine candidate (Sanofi)
|
COVID-19
|
Regulatory submission (US)
|
|
H2 2023
|
Nucala
|
Nasal polyposis
|
Regulatory submission
(CN, JP)
|
linerixibat
|
GLISTEN (cholestatic pruritus in primary biliary
cholangitis)
|
Phase III data readout
|
|
Blenrep
|
DREAMM-3 (3L+ multiple myeloma)
|
Regulatory decision
(US, EU)
|
|
Blenrep
|
DREAMM-8 (2L+ multiple myeloma)
|
Regulatory submission
(US, EU)
|
|
Blenrep
|
DREAMM-7 (2L+ multiple myeloma)
|
Regulatory submission
(US, EU)
|
|
Jemperli
|
RUBY (1L endometrial cancer)
|
Regulatory decision (US)
|
|
Zejula
|
FIRST (1L maintenance ovarian cancer)
|
Phase III data readout
|
|
cabotegravir
|
Pre-exposure prophylaxis, long-acting injectable
|
Regulatory decision (EU)
|
|
MenABCWY (gen 2) vaccine candidate
|
Meningitis ABCWY
|
Phase II data readout
|
|
RSV older adult vaccine candidate
|
AreSVi 006 (RSV, older adults aged 60+ years)
|
Regulatory decision (EU, JP)
|
|
S. Aureus vaccine candidate
|
S. Aureus
|
Phase II data readout
|
Refer
to pages 57 to 65 for further details on several key medicines and
vaccines in development by therapy area.
|
Contents
|
Page
|
|
|
Q3 2022
R&D pipeline highlights
|
7
|
Financial
performance – three months to 30 September 2022
|
10
|
Financial
performance – nine months to 30 September 2022
|
22
|
Cash
generation
|
34
|
Returns
to shareholders
|
36
|
Total
and Adjusted results
|
38
|
Income
statement – three months and nine months ended 30 September
2022
|
40
|
Statement
of comprehensive income – three months and nine months ended
30 September 2022
|
41
|
Balance
sheet
|
45
|
Statement
of changes in equity
|
46
|
Cash
flow statement – nine months ended 30 September
2022
|
47
|
Segment
information
|
48
|
Legal
matters
|
50
|
Additional
information
|
51
|
Reconciliation
of cash flow to movements in net debt
|
56
|
Net
debt analysis
|
56
|
Free
cash flow reconciliation
|
56
|
R&D
commentary
|
57
|
Reporting
definitions
|
66
|
Guidance,
assumptions and cautionary statements
|
67
|
Independent
review report
|
69
|
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
|
Financial performance – Q3
2022
|
Total results
|
The
Total results for the Group are set out below.
|
|
Q3 2022
£m
|
|
Q3
2021(a)
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
Continuing Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
7,829
|
|
6,627
|
|
18
|
|
9
|
|
|
|
|
|
|
|
|
Cost of
sales
|
(2,423)
|
|
(2,016)
|
|
20
|
|
18
|
|
|
|
|
|
|
|
|
Gross
profit
|
5,406
|
|
4,611
|
|
17
|
|
5
|
|
|
|
|
|
|
|
|
Selling,
general and administration
|
(2,056)
|
|
(1,679)
|
|
22
|
|
13
|
Research
and development
|
(1,346)
|
|
(1,416)
|
|
(5)
|
|
(12)
|
Royalty income
|
255
|
|
114
|
|
>100
|
|
>100
|
Other
operating income/(expense)
|
(1,068)
|
|
(250)
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
1,191
|
|
1,380
|
|
(14)
|
|
(35)
|
|
|
|
|
|
|
|
|
Finance
income
|
22
|
|
4
|
|
|
|
|
Finance
expense
|
(200)
|
|
(195)
|
|
|
|
|
Share
of after tax (losses)/profits of associates and
joint
ventures
|
(1)
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
1,012
|
|
1,192
|
|
(15)
|
|
(39)
|
|
|
|
|
|
|
|
|
Taxation
|
(233)
|
|
(246)
|
|
|
|
|
Tax rate %
|
23.0%
|
|
20.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from continuing operations
|
779
|
|
946
|
|
(18)
|
|
(41)
|
|
|
|
|
|
|
|
|
Profit
after taxation from discontinued operations and
other
gains/(losses) from the demerger
|
2,347
|
|
422
|
|
>100
|
|
>100
|
Remeasurement
of discontinued operations distributed
to
shareholders on demerger
|
7,227
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from discontinued operations
|
9,574
|
|
422
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
Profit after taxation for the period
|
10,353
|
|
1,368
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling interest from
continuing
operations
|
20
|
|
69
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to shareholders from continuing
operations
|
759
|
|
877
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling interest from
discontinued
operations
|
18
|
|
131
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to shareholders from discontinued
operations
|
9,556
|
|
291
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,353
|
|
1,368
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
Total
profit attributable to non-controlling interest
|
38
|
|
200
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
profit attributable to shareholders
|
10,315
|
|
1,168
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,353
|
|
1,368
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share from continuing operations
|
18.8p
|
|
21.9p
|
|
(14)
|
|
(35)
|
|
|
|
|
|
|
|
|
Earnings
per share from discontinued operations
|
237.1p
|
|
7.3p
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
Total earnings per share
|
255.9p
|
|
29.2p
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
(a)
|
The
2021 comparative results have been restated on a consistent basis
from those previously published to reflect the demerger of the
Consumer Healthcare business
(see page 21) and the impact of Share
Consolidation implemented on 18 July 2022 (see page
55).
|
Adjusted results
|
The
Adjusted results for the Group are set out below. Adjusted results
are from continuing operations and exclude the Consumer Healthcare
business (see details on page 53). Reconciliations between Total
results and Adjusted results for Q3 2022 and Q3 2021 are set out on
pages 18 and 19.
|
|
Q3 2022
£m
|
|
%
of
turnover
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
Turnover
|
7,829
|
|
100
|
|
18
|
|
9
|
|
|
|
|
|
|
|
|
Cost of
sales
|
(2,214)
|
|
(28.3)
|
|
23
|
|
21
|
Selling,
general and administration
|
(1,968)
|
|
(25.1)
|
|
21
|
|
12
|
Research
and development
|
(1,297)
|
|
(16.6)
|
|
17
|
|
8
|
Royalty
income
|
255
|
|
3.3
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
Adjusted
operating profit
|
2,605
|
|
33.3
|
|
18
|
|
4
|
|
|
|
|
|
|
|
|
Adjusted
profit before tax
|
2,427
|
|
|
|
20
|
|
5
|
Adjusted
profit after tax
|
2,025
|
|
|
|
25
|
|
10
|
Adjusted
profit attributable to shareholders
|
1,890
|
|
|
|
26
|
|
11
|
Adjusted
earnings per share
|
46.9p
|
|
|
|
25
|
|
11
|
|
|
|
|
|
|
|
|
Operating profit by segment
|
|
Q3 2022
£m
|
|
%
of
turnover
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
Commercial
Operations
|
3,950
|
|
50.5
|
|
14
|
|
2
|
Research
and Development
|
(1,301)
|
|
|
|
14
|
|
6
|
|
|
|
|
|
|
|
|
Segment
profit
|
2,649
|
|
33.8
|
|
14
|
|
1
|
Corporate
& other unallocated costs
|
(44)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
operating profit
|
2,605
|
|
33.3
|
|
18
|
|
4
|
|
|
|
|
|
|
|
|
Turnover
|
Commercial
Operations
|
|
Q3 2022
|
||||
|
|
|
|
|
|
|
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
HIV
|
1,486
|
|
19
|
|
7
|
Oncology
|
164
|
|
28
|
|
19
|
Immuno-inflammation,
respiratory and other
|
688
|
|
29
|
|
17
|
|
|
|
|
|
|
|
2,338
|
|
22
|
|
11
|
Pandemic
|
411
|
|
>100
|
|
>100
|
|
|
|
|
|
|
Specialty Medicines
|
2,749
|
|
36
|
|
24
|
|
|
|
|
|
|
Meningitis
|
441
|
|
25
|
|
16
|
Influenza
|
388
|
|
1
|
|
(7)
|
Shingles
|
760
|
|
51
|
|
36
|
Established
Vaccines
|
884
|
|
5
|
|
(2)
|
|
|
|
|
|
|
|
2,473
|
|
19
|
|
9
|
Pandemic
Vaccines
|
6
|
|
(94)
|
|
(94)
|
|
|
|
|
|
|
Vaccines
|
2,479
|
|
14
|
|
5
|
|
|
|
|
|
|
Respiratory
|
1,682
|
|
13
|
|
4
|
Other
General Medicines
|
919
|
|
(2)
|
|
(4)
|
|
|
|
|
|
|
General Medicines
|
2,601
|
|
7
|
|
1
|
|
|
|
|
|
|
Commercial Operations
|
7,829
|
|
18
|
|
9
|
|
|
|
|
|
|
US
|
4,015
|
|
18
|
|
2
|
Europe
|
1,484
|
|
11
|
|
11
|
International
|
2,330
|
|
22
|
|
20
|
|
|
|
|
|
|
Commercial Operations by region
|
7,829
|
|
18
|
|
9
|
|
|
|
|
|
|
Total
turnover in the quarter was £7,829 million, up 18% at AER, 9%
at CER, reflecting strong performance in Specialty Medicines and
Vaccines product groups. Commercial Operations turnover, excluding
sales of pandemic assets, grew 15% at AER, 7% at CER. Specialty
Medicines included double digit growth of Nucala and Benlysta (at AER and at CER) and
£411 million sales of Xevudy in the quarter. Vaccines growth
reflected strong Shingrix
performance, partially offset by an unfavourable comparison to
pandemic adjuvant sales in Q3
2021. General Medicines reflected strong performance of
Trelegy in all regions and
recovery of the antibiotics market.
Specialty Medicines
Specialty
Medicines sales in the quarter were £2,749 million, up 36% at
AER, 24% at CER, driven by consistent growth in all therapy areas.
Specialty Medicines excluding sales of Xevudy were £2,338 million up 22%
at AER, 11% at CER.
HIV
HIV
sales were £1,486 million with growth up 19% at AER, 7% at CER
in the quarter. The performance benefited from strong patient
demand for new HIV products (Dovato, Cabenuva, Juluca, Rukobia and Apretude). US pricing favourability was
broadly offset by timing of US customer orders and International
tender decline.
New HIV
products delivered quarterly sales of £651 million up 79% at
AER, 64% at CER, representing 44% of the total HIV portfolio
compared to 29% in the same quarter last year. Sales of the oral
two drug regimens Dovato
and Juluca were £360
million and £159 million respectively with combined growth of
54% AER, 40% CER. Cabenuva,
the first long acting injectable for the treatment of human
immunodeficiency virus type-1 (HIV-1) infection, recorded sales of
£101 million. Apretude, the first long acting
injectable for the prevention of HIV-1, delivered sales of £10
million.
Oncology
Oncology
sales in the quarter were £164 million, up 28% at AER, 19% at
CER. Zejula sales of
£120 million, were up 19% at AER, 11% at CER, and Blenrep,
sales of £36 million were up 44% at AER, 32% at CER,
reflecting strong growth in Europe.
Immuno-inflammation, Respiratory and Other
Immuno-inflammation,
Respiratory and Other sales were £688 million up 29% at AER,
17% at CER. Benlysta sales
were £308 million, up
29% at AER, 15% at CER including strong underlying demand in US and
worldwide. Nucala
sales were £366
million, up 28% at AER, 18% at CER on continued strong demand and
launch of additional indications in all
regions.
Pandemic
Sales
of Xevudy were £411
million, compared to £114 million sales in Q3 2021. The
majority of sales during the period were in International,
including £241 million in Japan, with US orders filled in Q1
2022.
Vaccines
Vaccine
sales were £2,479 million, up 14% at AER, 5% at CER in total
and up 19% at AER, 9% at CER excluding pandemic adjuvant sales. The
performance benefited from post-pandemic rebound and strong
commercial execution of Shingrix in Europe and International.
Vaccine growth was partially offset by MMR/V vaccines supply
constraints and CDC stockpile borrows.
Meningitis
Meningitis
vaccines sales grew 25% at AER, 16% at CER to £441 million
mainly driven by Bexsero
(23% at AER, 15% at CER to £275 million) resulting from higher
CDC purchasing and increased share in the US together with the
implementation of a Meningitis B national immunisation programme in
France. Menveo sales were
also up 25% at AER, 14% at CER to £157 million, primarily
driven by post-pandemic vaccination catch-up in International. In
the US, Menveo share gain
was mostly offset by the negative impact of a CDC stockpile
borrow.
Shingles
Shingrix sales grew 51% at AER, 36% at CER to £760
million mainly due to post-pandemic rebound, new launches and
strong commercial execution in Europe and International which
contributed nearly 40% of Shingrix sales during the quarter. US
sales grew 23% at AER, 5% at CER mainly driven by favourable price
volume mix and higher non-retail and retail demand, partly offset
by unfavourable wholesaler inventory movements, with growth
reflecting a more challenging comparator than in prior quarters.
Shingrix is now available
in 25 countries.
Influenza
Fluarix/FluLaval sales grew by 1% at AER but declined 7% at
CER to £388 million, primarily driven by unfavourable phasing
of supply in the US.
Established Vaccines
Established
Vaccines grew by 5% at AER but decreased 2% at CER to £884
million mainly as a result of MMR/V vaccines supply constraints in
International and Europe and the negative impact of a CDC stockpile
borrow for Rotarix. This
decrease was partially offset by Infanrix/Pediarix favourable tender
phasing impact and hepatitis vaccines growth in
Europe.
General Medicines
General
Medicines sales in the quarter were £2,601 million, up 7% at
AER, 1% at CER, with the impact of generic competition in US,
Europe, and Japan offset by Trelegy growth in respiratory and the
post-pandemic rebound of the antibiotic market since Q3 2021 in
Other General Medicines. Overall, there was a 3 percentage point
decrease in growth due to prior period Returns and Rebates (RAR)
adjustments in the quarter.
Respiratory
Respiratory
sales were £1,682 million, up 13% at AER, 4% at CER. The
performance was driven by Trelegy sales of £465 million, up
43% at AER, 28% at CER with strong growth in all regions.
Advair/Seretide sales of £265 million
continued to be eroded by generic competition, decreasing 18% at
AER and 23% at CER.
Other General Medicines
Other
General Medicines sales were £919 million, down 2% at AER, 4%
at CER. Augmentin sales
were £150 million, up 32% at AER, 32% at CER reflecting the
rebound of the antibiotic market post pandemic since Q3 2021. This
was offset by the ongoing adverse impact of generic competition and
approximately 2 percentage points impact from the divestment of
cephalosporin products in Q4 2021.
By Region
US
In the
US, sales were £4,015 million, up 18% at AER, 2% at CER. There
were no significant sales of Xevudy in the quarter following
completion of the government contract in Q1 2022, but sales of
Xevudy and vaccine adjuvant
in Q3 2021 caused a drag on growth of 1 percentage point at AER and
2 percentage points at CER in the quarter.
In
Specialty Medicines, HIV sales of £1,002 million were up 28%
at AER, 11% at CER. Performance benefited from favourable pricing
mix with strong patient demand for new products, (Dovato, Cabenuva, Juluca, Apretude and Rukobia) offsetting timing of customer
orders. New HIV medicines delivered sales of £442 million up
91% at AER, 67% at CER. Nucala and Benlysta both continued to grow double
digits reflecting ongoing strong demand. In Oncology, Zejula continues to be impacted by
lower diagnosis and treatment rates, while Jemperli and Blenrep are seeing growth due to higher
demand.
Vaccine
sales were £1,466 million, up 11% at AER, down 3% at CER.
Excluding the impact of COVID-19 vaccine adjuvant sales in Q3 2021,
sales grew 13% at AER, down 1% at CER. Strong Shingrix sales and higher CDC
purchasing of Bexsero were
offset by flu phasing and Rotarix CDC stockpile
borrow.
General
Medicines sales were £955 million up 15% at AER, down 1% at
CER, with strong Trelegy
growth, up 48% at AER, 28% at CER offset by ongoing generic impact
on Advair/Seretide.
Europe
In
Europe, sales were £1,484 million, up 11% at AER, 11% at CER,
driven by strong growth in Specialty and Vaccine product
groups.
In
Specialty Medicines, HIV sales were £331 million up 11% at
AER, 11% at CER. The performance predominantly reflected strong
patient demand for Dovato
with sales of £126 million during the period. Benlysta in immunology, Nucala in respiratory, and the
Oncology therapy area all delivered strong double-digit growth in
the quarter. There were no significant sales of Xevudy in the quarter, or the
corresponding quarter last year.
Vaccine
sales were £482 million, up 27% at AER, 27% at CER.
Shingrix sales of £173
million, up 92% at AER, 92% at CER, drove the growth particularly
in Germany. Additionally there was favourable tender phasing for
Infanrix/Pediarix, strong
hepatitis growth, and a Meningitis B national immunisation
programme was implemented in France.
General
Medicines sales were £502 million decreasing 4% at AER, 5% at
CER, including a 2 percentage point impact of the divestment of
cephalosporin products in Q4 2021. Strong demand for Trelegy was offset by ongoing generic
competitive pressures including on Seretide in respiratory.
International
International
sales were £2,330 million, up 22% at AER, 20% at CER,
including Xevudy sales of
£383 million. Excluding the impact of sales of Xevudy and COVID-19 vaccine adjuvant,
sales grew 12% at AER, 9% at CER.
In
Specialty Medicines, HIV sales were £153 million down 11% at
AER, 17% at CER driven by Tivicay tender decline, partially
offset by strong Dovato
growth. Combined Tivicay
and Triumeq sales were
£103 million, down 27% at AER and 33% at CER. Nucala in respiratory and Benlysta in immunology both continued
to grow strongly reflecting growth in Japan’s biological
market and inclusion on China’s National Reimbursement Drug
List.
Vaccine
sales were £531 million, up 13% at AER, 8% at CER. Excluding
the impact of COVID-19 vaccine adjuvant sales in Q3 2021 Vaccines
grew 29% at AER, 25% at CER, driven by Shingrix post-pandemic sales rebound
and strong commercial execution in several markets in the Region
including China.
General
Medicines sales were £1,144 million up 7% at AER, 5% at CER.
Respiratory sales of £490 million were up 15% at AER, 12% at
CER including strong growth of Trelegy, particularly in Japan, China,
and Canada. Other General Medicines sales of £654 million, up
1% at AER, 1% at CER, reflecting growth of Augmentin on rebound of the antibiotic
market post the pandemic since Q3 2021.
|
Operating
performance
|
Cost of sales
Total
cost of sales as a percentage of turnover was 30.9% and increased
0.5 percentage points higher at AER and 2.4 percentage points
higher in CER terms than Q3 2021. Adjusted cost of sales as a
percentage of turnover was 28.3%, up 1.2 percentage points AER and
3.0 at CER compared with Q3 2021. This primarily reflected higher
sales of lower margin COVID-19 solutions (Xevudy) compared to Q3 2021, which
included £95 million of pandemic adjuvant sales, increasing
cost of sales margin by 2.0 percentage points at AER and at 1.9
percentage points at CER as well as increased supply chain costs
including the impact of increased commodity prices and freight
costs.
Selling, general and administration
Total
SG&A costs as a percentage of turnover were 26.3%, 0.9
percentage points higher at AER and 0.8 percentage points higher at
CER than in Q3 2021 primarily reflected increased investment in the
launch of innovative vaccines and medicines partially offset by
higher sales.
Adjusted
SG&A costs as a percentage of turnover were 25.1%, 0.6
percentage points higher at AER, 0.6 percentage points higher at
CER. Adjusted SG&A costs increased 21% at AER, 12% at CER to
£1,968 million which primarily reflected an increased level of
launch investment in Specialty Medicines particularly HIV and
Vaccines including Shingrix
to drive post-pandemic recovery demand and support market
expansion. The growth in Adjusted SG&A also reflected increased
freight and distribution costs. This growth was partly offset by
the continuing benefit of restructuring and tight control of
ongoing costs and exchange gains on the Vir Biotechnology, Inc.
collaboration profit share.
Research and development
Adjusted
R&D expenditure increased in the quarter by 17% at AER and 8%
at CER, to £1,297 million. There is continued increased
investment in the Vaccines clinical development portfolio,
particularly in the mRNA technology platforms and several early
discovery programmes as well as new expenditure in relation to our
recent acquisition, Affinivax, Inc (Affinivax).
In the
Specialty Medicines portfolio, investment increased in our phase
III respiratory programme for depemokimab, a potential new medicine
to treat severe asthma as well as new expenditure in momelotinib,
our potential new treatment of myelofibrosis patients with anaemia
acquired as part of the recent acquisition of Sierra Oncology, Inc
(Sierra). These increases in investment were offset by decreases
related to the completion of several late-stage clinical
development programmes and reduced R&D investment in COVID-19
pandemic solutions compared to Q3 2021.
Royalty income
Royalty
income was £255 million (Q3 2021: £114 million), up
>100% at AER, >100% at CER, primarily reflecting royalty
income from Gilead under the settlement and licensing agreement
with Gilead and higher sales of Gardasil.
Other operating income/(expense)
Net
other operating expense was £1,068 million (Q3 2021: £250
million) primarily reflecting accounting charges of £698
million (Q3 2021: £281 million) arising from the remeasurement
of contingent consideration liabilities and the liabilities for the
Pfizer, Inc. (Pfizer) put option and Pfizer and Shionogi & Co.
Ltd. (Shionogi) preferential dividends in ViiV Healthcare. This
included a remeasurement charge of £582 million (Q3 2021:
£239 million) for the contingent consideration liability due
to Shionogi, including the unwinding of the discount for £104
million and a charge for £478 million primarily from changes
to exchange rates as well as adjustments to sales forecasts. In
addition, there was a fair value loss of £377 million on the
retained stake in Haleon reflecting a reduction in share price
since listing.
Operating profit
Total
operating profit was £1,191 million compared with £1,380
million in Q3 2021. The reduction primarily reflected the higher
remeasurement charges for contingent consideration liabilities and
the fair value loss on the retained stake in Haleon, partly offset
by increased profits on turnover growth of 9% at CER.
Adjusted
operating profit was £2,605 million, 18% higher than Q3 2021
at AER and 4% at CER on a turnover increase of 9% at CER. The
Adjusted operating margin of 33.3% was stable at AER and 1.6%
percentage points lower at CER than in Q3 2021. This reflected the
impact from low margin COVID-19 solutions sales (Xevudy), which increased Adjusted
Operating profit growth by approximately 1% at AER, 2% at CER but
the impact on the Adjusted operating margin was flat in percentage
points at AER but reduced 0.3 percentage points at CER, as well as
increased launch investment in SG&A in Specialty Medicines
including HIV and Vaccines including Shingrix to drive post-pandemic
recovery demand and support market expansion. This was partly
offset by higher royalty income.
Contingent
consideration cash payments made to Shionogi and other companies
reduce the balance sheet liability and hence are not recorded in
the income statement. Total contingent consideration cash payments
in Q3 2022 amounted to £249 million (Q3 2021: £205
million). These included cash payments made to Shionogi of
£240 million (Q3 2021: £196 million).
Adjusted operating profit by business
Commercial
Operations adjusted operating profit was £3,950 million, up
14% at AER and 2% at CER on a turnover increase of 9% at CER. The
operating margin of 50.5% was 1.7 percentage points lower at AER
and 3.3 percentage points lower at CER than in Q3 2021. This
primarily reflected sales of lower margin Xevudy in the quarter compared to Q3
2021 which included higher margin pandemic adjuvant sales. This
also reflected increased investment behind launches in Specialty
Medicines including HIV and Vaccines plus higher commodity, freight
and distribution costs. This was partly offset by continued tight
control of ongoing costs, benefits from continued restructuring and
increased royalty income from Biktarvy sales following the
settlement with Gilead in February 2022 and Gardasil
sales.
R&D
segment operating expenses were £1,301 million, up 14% at AER
and 6% at CER, primarily reflecting increased investment in
Vaccines including priority investments for mRNA and late stage
portfolio and Specialty Medicines in early stage HIV and
depemokimab. This was partly offset by the completion of several
late-stage clinical development programmes, completion of several
late-stage clinical development programmes and reduced R&D
investment in COVID-19 pandemic solutions compared to Q3
2021.
Net finance costs
Total
net finance costs were £178 million compared with £191
million in Q3 2021. Adjusted net finance costs were £177
million compared with £190 million in Q3 2021. The decrease
primarily reflects increased interest income due to higher interest
rates and larger cash balances as a result of the Consumer
Healthcare demerger.
Taxation
The
charge of £233 million represented an effective tax rate on
Total results of 23.0% (Q3 2021: 20.7%) and reflected the different
tax effects of the various Adjusting items including the fair value
loss on the retained Haleon stake where a tax credit is not
recognised. Tax on Adjusted profit amounted to £402 million
and represented an effective Adjusted tax rate of 16.6% (Q3 2021:
19.9%).
Issues
related to taxation are described in Note 14,
‘Taxation’ in the Annual Report 2021. The Group
continues to believe it has made adequate provision for the
liabilities likely to arise from periods that are open and not yet
agreed by relevant tax authorities. The ultimate liability for such
matters may vary from the amounts provided and is dependent upon
the outcome of agreements with relevant tax
authorities.
Non-controlling interests
The
allocation of Total earnings to non-controlling interests amounted
to £20 million (Q3 2021: £69 million). The decrease was
primarily due to a reduced allocation of ViiV Healthcare profits of
£24 million (Q3 2021: £69 million) including increased
credits for remeasurement of contingent consideration
liabilities.
The
allocation of Adjusted earnings to non-controlling interests
amounted to £135 million (Q3 2021: £121 million). The
increase in allocation primarily reflected an increased allocation
of ViiV Healthcare profits of £139 million (Q3 2021: £122
million).
Earnings per share from continuing operations
Total
EPS was 18.8p compared with 21.9p in Q3 2021. The reduction
primarily reflected increased charges for remeasurement of
contingent consideration liabilities and a fair value loss on the
retained stake in Haleon.
Adjusted
EPS was 46.9p compared with 37.4p in Q3 2021, up 25% at AER, 11% at
CER, on a 4% CER increase in Adjusted operating profit primarily
reflecting growth across Specialty, Vaccines and General Medicines,
lower interest charges from reduced debt and a lower effective tax
rate compared to Q3 2021, partly offset by lower leverage as a
result of higher lower margin sales of pandemic solutions
(Xevudy) as well as
increased launch investment in SG&A.
Profit and earnings per share from discontinued
operations
Discontinued
operations include the Consumer Healthcare business and certain
Corporate costs directly attributable to the Consumer Healthcare
business. Profit after taxation from discontinued operations
amounted to £9,574 million (Q3 2021: £422 million). This
includes £9,578 million for the gain arising on the demerger
of the Consumer Healthcare business split between the amount
distributed to shareholders on demerger of £7,227 million, and
profit after tax on discontinued operations for GSK’s
retained stake of £2,351 million. The overall gain on the
demerger of £9,578 million was partly offset by the loss after
taxation from discontinued operations for the Consumer Healthcare
business of £4 million (Q3 2021: £422 million profit)
from 1 to 18 July 2022 which includes separation and transaction
costs of £59 million.
EPS
from discontinued operations was 237.1p, compared with 7.3p in Q3
2021. The increase primarily reflected the gain arising on the
demerger of the Consumer Healthcare business recognised in profit
after taxation for discontinued operations. For further details see
page 54, discontinued operations.
Total earnings per share
Total
EPS was 255.9p compared with 29.2p in Q3 2021. The increase
primarily reflected the gain arising on the demerger of the
Consumer Healthcare business recognised in Profit after taxation
for discontinued operations.
Currency impact on Q3 2022 results
The
results for Q3 2022 are based on average exchange rates,
principally £1/$1.18, £1/€1.16 and £1/Yen 161.
Comparative exchange rates are given on page 51. The period-end
exchange rates were £1/$1.11, £1/€1.13 and
£1/Yen 160.
In Q3
2022, turnover was up 18% at AER and 9% at CER. Total EPS from
continuing operations was 18.8p compared with 21.9p in Q3 2021.
Adjusted EPS was 46.9p compared with 37.4p in Q3 2021, up 25% at
AER and 11% at CER. The favourable currency impact primarily
reflected the weakening of Sterling against the US Dollar, partly
offset by the strengthening in Sterling against the Japanese Yen.
Exchange gains or losses on the settlement of intercompany
transactions had a negligible impact on the 14 percentage point
favourable currency impact on Adjusted EPS.
|
Adjusting items
The
reconciliations between Total results and Adjusted results for Q3
2022 and Q3 2021 are set out below.
|
Three months ended 30 September 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
|
7,829
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,829
|
Cost of
sales
|
(2,423)
|
|
|
|
172
|
|
|
|
24
|
|
13
|
|
|
|
(2,214)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
5,406
|
|
|
|
172
|
|
|
|
24
|
|
13
|
|
|
|
5,615
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administration
|
(2,056)
|
|
|
|
|
|
|
|
42
|
|
|
|
46
|
|
(1,968)
|
Research
and development
|
(1,346)
|
|
|
|
26
|
|
17
|
|
6
|
|
|
|
|
|
(1,297)
|
Royalty
income
|
255
|
|
|
|
|
|
|
|
|
|
|
|
|
|
255
|
Other
operating income/(expense)
|
(1,068)
|
|
|
|
|
|
|
|
1
|
|
699
|
|
368
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
1,191
|
|
|
|
198
|
|
17
|
|
73
|
|
712
|
|
414
|
|
2,605
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
finance cost
|
(178)
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
(177)
|
Share
of after tax losses and joint
of
associates ventures
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
1,012
|
|
|
|
198
|
|
17
|
|
73
|
|
712
|
|
415
|
|
2,427
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
(233)
|
|
|
|
(39)
|
|
(3)
|
|
(15)
|
|
(106)
|
|
(6)
|
|
(402)
|
Tax rate %
|
23.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from
continuing operations
|
779
|
|
|
|
159
|
|
14
|
|
58
|
|
606
|
|
409
|
|
2,025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
after taxation from
discontinued
operations and other
gains/(losses)
from the demerger
|
2,347
|
|
(2,347)
|
|
|
|
|
|
|
|
|
|
|
|
|
Remeasurement
of discontinued
operations
distributed to
shareholders
on demerger
|
7,227
|
|
(7,227)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from
discontinued operations
|
9,574
|
|
(9,574)
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit after taxation
for the period
|
10,353
|
|
(9,574)
|
|
159
|
|
14
|
|
58
|
|
606
|
|
409
|
|
2,025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling
interest
from continuing operations
|
20
|
|
|
|
|
|
|
|
|
|
115
|
|
|
|
135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to shareholders
from
continuing operations
|
759
|
|
|
|
159
|
|
14
|
|
58
|
|
491
|
|
409
|
|
1,890
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling
interest
from discontinued
operations
|
18
|
|
(18)
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to shareholders
from
discontinued operations
|
9,556
|
|
(9,556)
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,353
|
|
(9,574)
|
|
159
|
|
14
|
|
58
|
|
606
|
|
409
|
|
2,025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit attributable to
non-controlling interests
|
38
|
|
(18)
|
|
|
|
|
|
|
|
115
|
|
|
|
135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit attributable to
shareholders
|
10,315
|
|
(9,556)
|
|
159
|
|
14
|
|
58
|
|
491
|
|
409
|
|
1,890
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,353
|
|
(9,574)
|
|
159
|
|
14
|
|
58
|
|
606
|
|
409
|
|
2,025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share from continuing
operations
|
18.8p
|
|
|
|
3.9p
|
|
0.4p
|
|
1.4p
|
|
12.2p
|
|
10.2p
|
|
46.9p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share from
discontinued
operations
|
237.1p
|
|
(237.1)p
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total earnings per share
|
255.9p
|
|
(237.1)p
|
|
3.9p
|
|
0.4p
|
|
1.4p
|
|
12.2p
|
|
10.2p
|
|
46.9p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number
of
shares (millions)
|
4,030
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,030
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended 30 September
2021(a)
|
|
Total
results
£m
|
|
Profit
from
discon-
tinued
operations
£m
|
|
Intangible
amort-
isation
£m
|
|
Intangible
impair-
ment
£m
|
|
Major
restruct-
uring
£m
|
|
Trans-
action-
related
£m
|
|
Divest-
ments,
significant
legal
and
other
items
£m
|
|
Adjusted
results
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
6,627
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,627
|
Cost of
sales
|
(2,016)
|
|
|
|
165
|
|
|
|
46
|
|
8
|
|
-
|
|
(1,797)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
4,611
|
|
|
|
165
|
|
|
|
46
|
|
8
|
|
-
|
|
4,830
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administration
|
(1,679)
|
|
|
|
|
|
|
|
39
|
|
|
|
17
|
|
(1,623)
|
Research
and development
|
(1,416)
|
|
|
|
26
|
|
264
|
|
12
|
|
|
|
2
|
|
(1,112)
|
Royalty
income
|
114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
114
|
Other
operating income/(expense)
|
(250)
|
|
|
|
|
|
|
|
|
|
283
|
|
(33)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
1,380
|
|
|
|
191
|
|
264
|
|
97
|
|
291
|
|
(14)
|
|
2,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
finance cost
|
(191)
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
(190)
|
Share
of after tax losses and joint
of
associates ventures
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
1,192
|
|
|
|
191
|
|
264
|
|
97
|
|
291
|
|
(13)
|
|
2,022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
(246)
|
|
|
|
(34)
|
|
(64)
|
|
(20)
|
|
(37)
|
|
(1)
|
|
(402)
|
Tax rate %
|
20.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from
continuing operations
|
946
|
|
|
|
157
|
|
200
|
|
77
|
|
254
|
|
(14)
|
|
1,620
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
after taxation from
discontinued
operations and other
gains/(losses)
from the demerger
|
422
|
|
(422)
|
|
|
|
|
|
|
|
|
|
|
|
|
Remeasurement
of discontinued
operations
distributed to
shareholders
on demerger
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from
discontinued operations
|
422
|
|
(422)
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit after taxation
for the period
|
1,368
|
|
(422)
|
|
157
|
|
200
|
|
77
|
|
254
|
|
(14)
|
|
1,620
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling
interest
from continuing operations
|
69
|
|
|
|
|
|
|
|
|
|
52
|
|
|
|
121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to shareholders
from
continuing operations
|
877
|
|
|
|
157
|
|
200
|
|
77
|
|
202
|
|
(14)
|
|
1,499
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling
interest
from discontinued
operations
|
131
|
|
(131)
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to shareholders
from
discontinued operations
|
291
|
|
(291)
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,368
|
|
(422)
|
|
157
|
|
200
|
|
77
|
|
254
|
|
(14)
|
|
1,620
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit attributable to
non-controlling interests
|
200
|
|
(131)
|
|
|
|
|
|
|
|
52
|
|
|
|
121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit attributable to
shareholders
|
1,168
|
|
(291)
|
|
157
|
|
200
|
|
77
|
|
202
|
|
(14)
|
|
1,499
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,368
|
|
(422)
|
|
157
|
|
200
|
|
77
|
|
254
|
|
(14)
|
|
1,620
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share from continuing
operations
|
21.9p
|
|
|
|
3.9p
|
|
5.0p
|
|
1.9p
|
|
5.1p
|
|
(0.4)p
|
|
37.4p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share from
discontinued
operations
|
7.3p
|
|
(7.3)p
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total earnings per share
|
29.2p
|
|
(7.3)p
|
|
3.9p
|
|
5.0p
|
|
1.9p
|
|
5.1p
|
|
(0.4)p
|
|
37.4p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number
of
shares (millions)
|
4,006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
The
2021 comparative results have been restated on a consistent basis
from those previously published to reflect the demerger of the
Consumer Healthcare business
(see page 21) and the impact of Share
Consolidation implemented on 18 July 2022 (see page
55).
|
Major restructuring and integration
|
Total
Major restructuring charges from continuing operations incurred in
Q3 2022 were £73 million (Q3 2021: £97 million), analysed
as follows:
|
|
Q3 2022
|
|
Q3
2021
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
£m
|
|
Non-
cash
£m
|
|
Total
£m
|
|
Cash
£m
|
|
Non-
cash
£m
|
|
Total
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
Separation
Preparation restructuring
programme
|
38
|
|
22
|
|
60
|
|
69
|
|
19
|
|
88
|
Significant
acquisitions
|
10
|
|
-
|
|
10
|
|
-
|
|
-
|
|
-
|
Legacy
programmes
|
2
|
|
1
|
|
3
|
|
3
|
|
6
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
50
|
|
23
|
|
73
|
|
72
|
|
25
|
|
97
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
charges of £38 million under the Separation Preparation
programme primarily arose from the restructuring of some
administrative functions as well as some global Supply Chain and
R&D functions. The non-cash charges of £22 million
primarily reflected the write-down of assets in administrative
locations and manufacturing sites.
Total
cash payments made in Q3 2022 were £60 million (Q3 2021:
£127 million), £51 million (Q3 2021: £106
million) relating to the Separation Preparation restructuring
programme, £5 million relating to Significant acquisitions (Q3
2021: £nil) and £4 million (Q3 2021: £21 million)
relating to other legacy programmes including the settlement of
certain charges accrued in previous quarters.
|
The
analysis of Major restructuring charges by Income statement line
was as follows:
|
|
Q3 2022
£m
|
|
Q3
2021
£m
|
|
|
|
|
Cost of
sales
|
24
|
|
46
|
Selling,
general and administration
|
42
|
|
39
|
Research
and development
|
6
|
|
12
|
Other
operating expenses
|
1
|
|
-
|
|
|
|
|
Total
major restructuring costs from continuing operations
|
73
|
|
97
|
|
|
|
|
Materially
all of the Separation Preparation restructuring programme has been
included as part of continuing operations. The legacy Consumer
Healthcare Joint Venture integration programme is now included as
part of discontinued operations.
|
Transaction-related adjustments
Transaction-related
adjustments resulted in a net charge of £712 million (Q3 2021:
£290 million). This included a net £698 million
accounting charge for the remeasurement of contingent consideration
liabilities and the liabilities for the Pfizer put option and
Pfizer and Shionogi preferential dividends in ViiV
Healthcare.
|
Charge/(credit)
|
Q3 2022
£m
|
|
Q3
2021
£m
|
|
|
|
|
Contingent
consideration on former Shionogi-ViiV Healthcare joint
Venture
(including
Shionogi preferential dividends)
|
582
|
|
239
|
ViiV
Healthcare put options and Pfizer preferential
dividends
|
51
|
|
37
|
Contingent
consideration on former Novartis Vaccines business
|
60
|
|
5
|
Other
adjustments
|
19
|
|
9
|
|
|
|
|
Total
transaction-related charges
|
712
|
|
290
|
|
|
|
|
The £582 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, as a result of the unwind of the
discount for £104 million and a charge of £478 million
primarily from exchange rates as well as adjustments to sales
forecasts. The £51 million charge relating to the ViiV
Healthcare put option and Pfizer preferential dividends represented
an increase in the valuation of the put option primarily as a
result of updated exchange rates as well as adjustments to sales
forecasts.
The
ViiV Healthcare contingent consideration liability is fair valued
under IFRS. An explanation of the accounting for the
non-controlling interests in ViiV Healthcare is set out on page
39.
Divestments, significant legal charges, and other
items
Divestments,
significant legal charges and other items primarily include a fair
value loss of £377 million on the retained stake in Haleon and
certain other Adjusting items. There was a charge of £45
million for Significant Legal matters arising in the quarter,
primarily reflecting provision for increased legal fees in relation
to Zantac. The Zantac litigation has now been
classified as a Significant Legal matter and all prospective costs
will therefore be included as an adjusting item. See Legal matters
on page 50.
Discontinued operations
GSK satisfied the criteria in IFRS 5 for treating Consumer
Healthcare as a ‘discontinued operation’ effective from
30 June 2022, as it was then expected that the carrying amount of
the disposal group will be recovered principally through disposal
and a distribution, it was available for distribution in its
present condition (subject only to the steps to be completed that
are usual and customary for the demerger of a business) and it was
considered highly probable. The demerger was completed on 18 July
2022, resulting in Consumer Healthcare being classified as a
discontinued operation until that date.
From Q2 2020, the Group started to report additional costs to
prepare for establishment of the Consumer Healthcare business as an
independent entity (“Separation costs”) and these have
been presented as part of discontinued operations. Total separation
costs incurred in Q3 2022 were £59 million (Q3 2021: £75
million). This includes £50 million relating to transaction
costs incurred in connection with the demerger and preparatory
admission costs related to the listing of Haleon.
|
Financial performance – nine months
2022
|
Total results
|
The
Total results for the Group are set out below.
|
|
9 months 2022
£m
|
|
9
months
2021(a)
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
Turnover
|
21,948
|
|
17,620
|
|
25
|
|
19
|
|
|
|
|
|
|
|
|
Cost of
sales
|
(7,316)
|
|
(5,378)
|
|
36
|
|
35
|
|
|
|
|
|
|
|
|
Gross
profit
|
14,632
|
|
12,242
|
|
20
|
|
12
|
|
|
|
|
|
|
|
|
Selling,
general and administration
|
(5,934)
|
|
(4,877)
|
|
22
|
|
17
|
Research
and development
|
(3,691)
|
|
(3,643)
|
|
1
|
|
(3)
|
Royalty income
|
552
|
|
280
|
|
97
|
|
97
|
Other
operating income/(expense)
|
(994)
|
|
(137)
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
4,565
|
|
3,865
|
|
18
|
|
5
|
|
|
|
|
|
|
|
|
Finance
income
|
50
|
|
14
|
|
|
|
|
Finance
expense
|
(609)
|
|
(582)
|
|
|
|
|
Loss on
disposal of interest in associates
|
-
|
|
(36)
|
|
|
|
|
Share
of after tax profits of associates and joint ventures
|
(4)
|
|
35
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
4,002
|
|
3,296
|
|
21
|
|
6
|
|
|
|
|
|
|
|
|
Taxation
|
(706)
|
|
(200)
|
|
|
|
|
Tax rate %
|
17.6%
|
|
6.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from continuing operations
|
3,296
|
|
3,096
|
|
6
|
|
(7)
|
|
|
|
|
|
|
|
|
Profit
after taxation from discontinued operations and
other
gains/(losses) from the demerger
|
2,972
|
|
1,070
|
|
>100
|
|
>100
|
Remeasurement
of discontinued operations
distributed
to shareholders on demerger
|
7,227
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from discontinued operations
|
10,199
|
|
1,070
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
Total Profit after taxation for the period
|
13,495
|
|
4,166
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling interests
from
continuing operations
|
335
|
|
206
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to shareholders from
continuing
operations
|
2,961
|
|
2,890
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling interests
from
discontinued operations
|
205
|
|
324
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to shareholders from
discontinued
operations
|
9,994
|
|
746
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,495
|
|
4,166
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
Total
Profit attributable to non-controlling interests
|
540
|
|
530
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Profit attributable to shareholders
|
12,955
|
|
3,636
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,495
|
|
4,166
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share from continuing operations
|
73.6p
|
|
72.2p
|
|
2
|
|
(11)
|
|
|
|
|
|
|
|
|
Earnings
per share from discontinued operations
|
248.4p
|
|
18.6p
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
Total earnings per share
|
322.0p
|
|
90.8p
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
(a)
|
The
2021 comparative results have been restated on a consistent basis
from those previously published to reflect the demerger of the
Consumer Healthcare business
(see page 21) and the impact of Share
Consolidation implemented on 18 July 2022 (see page
55).
|
Adjusted results
|
The
Adjusted results for the Group are set out below. Adjusted results
are from continuing operations and excludes the Consumer Healthcare
business (see details on page 53). Reconciliations between Total
results and Adjusted results for nine months 2022 and nine months
2021 are set out on pages 30 to 31.
|
|
9 months 2022
£m
|
|
%
of
turnover
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
Turnover
|
21,948
|
|
100
|
|
25
|
|
19
|
|
|
|
|
|
|
|
|
Cost of
sales
|
(6,711)
|
|
(30.6)
|
|
41
|
|
40
|
Selling,
general and administration
|
(5,693)
|
|
(25.9)
|
|
20
|
|
16
|
Research
and development
|
(3,540)
|
|
(16.1)
|
|
9
|
|
5
|
Royalty
income
|
552
|
|
2.5
|
|
97
|
|
97
|
|
|
|
|
|
|
|
|
Adjusted
operating profit
|
6,556
|
|
29.9
|
|
27
|
|
16
|
|
|
|
|
|
|
|
|
Adjusted
profit before tax
|
5,996
|
|
|
|
29
|
|
18
|
Adjusted
profit after tax
|
5,030
|
|
|
|
32
|
|
21
|
Adjusted
profit attributable to shareholders
|
4,584
|
|
|
|
32
|
|
21
|
Adjusted
earnings per share
|
113.9p
|
|
|
|
31
|
|
20
|
|
|
|
|
|
|
|
|
Operating profit by segment
|
|
9 months 2022
£m
|
|
%
of
turnover
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
Commercial
Operations
|
10,371
|
|
47.3
|
|
18
|
|
11
|
Research
and Development
|
(3,548)
|
|
|
|
8
|
|
3
|
|
|
|
|
|
|
|
|
Segment
profit
|
6,823
|
|
31.1
|
|
24
|
|
15
|
Corporate
& other unallocated costs
|
(267)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
operating profit
|
6,556
|
|
29.9
|
|
27
|
|
16
|
|
|
|
|
|
|
|
|
Turnover
|
Commercial
Operations
|
|
9
months 2022
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
HIV
|
4,071
|
|
16
|
|
9
|
Oncology
|
445
|
|
25
|
|
19
|
Immuno-inflammation,
respiratory and other
|
1,888
|
|
27
|
|
20
|
|
|
|
|
|
|
|
6,404
|
|
19
|
|
13
|
Pandemic
|
2,184
|
|
>100
|
|
>100
|
|
|
|
|
|
|
Specialty Medicines
|
8,588
|
|
56
|
|
49
|
|
|
|
|
|
|
Meningitis
|
888
|
|
16
|
|
11
|
Influenza
|
438
|
|
1
|
|
(7)
|
Shingles
|
2,189
|
|
95
|
|
82
|
Established
Vaccines
|
2,342
|
|
2
|
|
(2)
|
|
|
|
|
|
|
|
5,857
|
|
27
|
|
20
|
Pandemic
Vaccines
|
6
|
|
(98)
|
|
(98)
|
|
|
|
|
|
|
Vaccines
|
5,863
|
|
18
|
|
12
|
|
|
|
|
|
|
Respiratory
|
4,866
|
|
8
|
|
3
|
Other
General Medicines
|
2,631
|
|
(1)
|
|
(1)
|
|
|
|
|
|
|
General Medicines
|
7,497
|
|
5
|
|
2
|
|
|
|
|
|
|
Commercial Operations
|
21,948
|
|
25
|
|
19
|
|
|
|
|
|
|
US
|
10,918
|
|
30
|
|
18
|
Europe
|
4,693
|
|
22
|
|
24
|
International
|
6,337
|
|
18
|
|
18
|
|
|
|
|
|
|
Commercial Operations by region
|
21,948
|
|
25
|
|
19
|
|
|
|
|
|
|
Total
turnover in the 9 months was £21,948 million, up 25% at AER,
19% at CER, reflecting strong performance in all three product
groups. Commercial Operations turnover, excluding pandemic sales,
grew 15% at AER, 10% at CER. Specialty Medicines included
£2,184 million sales of Xevudy, and double digit AER growth of
all therapy areas. Vaccines growth reflected strong Shingrix performance assisted by demand
recovery in the US, partially offset by pandemic adjuvant sales in 2021. General
Medicines reflected the recovery of the antibiotics market as well
as the strong performance of Trelegy in respiratory across all
regions.
Specialty Medicines
Specialty
Medicines sales were £8,588 million, up 56% at AER, 49% at
CER, driven by consistent growth in all therapy areas. Specialty
Medicines, excluding sales of Xevudy, were £6,404 million up 19%
at AER, 13% at CER.
HIV
HIV
sales were £4,071 million with growth of 16% at AER and 9% at
CER. The performance benefited from strong patient demand for the
new HIV medicines (Dovato,
Cabenuva, Juluca, Rukobia and Apretude). US pricing favourability
broadly offset International tender decline.
New HIV
products delivered sales of over one and a half billion to
£1,668 million, up 75% at AER, 65% at CER, representing 41% of
the total HIV portfolio compared to 27% year-to-date last year.
Sales of the oral two drug regimens Dovato and Juluca were £937 million and
£444 million respectively with combined growth of 52% at AER,
44% at CER. Cabenuva, the
first long acting injectable for the treatment of HIV-1 infection,
recorded sales of £211 million. Apretude, the first long acting
injectable for the prevention of HIV-1 delivered sales of £20
million.
Oncology
Oncology
sales were £445 million, up 25% at AER, 19% at CER.
Zejula sales of £338
million were up 18% at AER, 13% at CER with diagnosis and treatment
rates continuing to be impacted by the pandemic especially in the
US. Sales of Blenrep of
£91 million increased 36% at AER, 28% at CER, reflecting
ongoing launches and growth in launched markets.
Immuno-inflammation,
Respiratory and Other
Immuno-inflammation,
Respiratory and Other sales were £1,888 million up 27% at AER,
20% at CER. Benlysta sales
were £820 million, up 30% at AER, 20% at CER, representing
strong underlying demand worldwide. Nucala sales were £1,028 million,
up 24% at AER, 18% at CER, including US sales of £639 million
up 28% at AER, 16% at CER. The performance reflected continued
strong patient demand and the launch of Nasal Polyps and EGPA
indications.
Pandemic
Sales
of Xevudy were £2,184
million, compared to £130 million sales in the same period
last year. Sales were delivered in all regions, comprising
£818 million in the US, £437 million in Europe, and
£929 million in International.
Vaccines
Vaccines
turnover was £5,863 million, up 18% at AER, 12% at CER,
excluding pandemic adjuvant sales, vaccine sales increased 27% at
AER, 20% at CER. The performance reflected a favourable comparator
in H1 2021, which was impacted by COVID-19 related disruptions in several markets,
as well as strong commercial execution of Shingrix, particularly in the US and
Europe.
Meningitis
Meningitis
vaccines sales grew 16% at AER, 11% at CER to £888 million
mainly driven by Bexsero
(15% at AER, 11% at CER to £603 million) resulting from higher
CDC purchasing and increased share in the US.
Shingles
Shingrix sales grew 95% at AER, 82% at CER to £2,189
million mainly due to post-pandemic rebound, strong commercial
execution aimed at shifting the shingles vaccination season
forward, and wholesaler inventory build in the US, and higher
demand in Germany. All regions grew significantly with 51% of the
growth contributed from outside of the US. Shingrix is now available in 25
countries.
Established Vaccines
Established
Vaccines grew 2% AER but declined 2% at CER to £2,342 million
mainly as a result of supply constraints in MMR/V vaccines, the
negative impact of a CDC stockpile borrow for Rotarix, and lower sales of
Cervarix and Synflorix. This decline was partially
offset by higher demand for hepatitis vaccines and Boostrix in the US and
Europe.
General Medicines
General
Medicines sales in the 9 months were £7,497 million, up 5% at
AER, 2% at CER, with the impact of generic competition in US,
Europe and Japan offset by Trelegy growth in respiratory and the
post-pandemic rebound of the antibiotic market since H2 2021, in
Other General Medicines.
Respiratory
Respiratory
sales were £4,866 million, up 8% at AER, 3% at CER. The
performance was driven by Trelegy sales of £1,272 million,
up 47% at AER, 38% at CER, including strong growth across all
regions. Advair/Seretide
sales of £829 million decreased 19% at AER, 21% at CER
predominately reflecting the adverse impact of generic competition;
growth in certain International markets due to targeted promotion
offset the decrease.
Other General
Medicines
Other
General Medicines sales were £2,631 million, and decreased 1%
at AER, 1% at CER. Augmentin sales were £409 million,
up 38% at AER, 42% at CER, reflecting the post pandemic rebound of
the antibiotic market since Q3 2021 in the International and Europe
regions. This offsets the ongoing adverse impact of generic
competition and approximately two percentage points impact from the
divestment of cephalosporin products in Q4 2021.
By Region
US
In the
US, sales were £10,918 million, up 30% at AER, 18% at CER,
including Xevudy sales of
£818 million. Sales grew 24% at AER, 13% at CER excluding
sales of pandemic assets.
In
Specialty, HIV sales of £2,593 million were up 24% at AER, 12%
at CER. Growth benefited from favourable pricing mix and strong
patient demand for all new HIV products with sales of £1,104
million up 80% at AER, 64% at CER. Nucala in respiratory and Benlysta in immunology both continued
to grow double-digit and reflected ongoing and strong patient
demand. Oncology sales increased 14% at AER, 4% at CER with
diagnosis and treatment rates continuing to be impacted by the
pandemic.
Vaccine
sales were £3,255 million, up 24% at AER, 13% at CER,
excluding the impact of COVID-19 vaccine adjuvant sales in 2021,
sales increased 37% at AER, 24% at CER. The performance was
primarily driven by Shingrix sales of £1,484 million
up 66% at AER, 51% at CER, together with strong growth in
Established and Meningitis vaccines.
General
Medicines sales were £2,699 million up 11% at AER, 1% at CER,
driven by strong respiratory sales of Trelegy, which increased 54% at AER,
40% at CER, and reflected increased patient demand and growth of
the single inhaler triple therapy market.
Europe
In
Europe, sales were £4,693 million, up 22% at AER, 24% at CER,
including Xevudy sales of
£437 million contributing 13 percentage points of
growth.
In
Specialty Medicines, HIV sales were £966 million up 10% at
AER, 12% at CER primarily driven by strong patient demand from two
drug regimens Dovato and
Juluca. Dovato delivered sales of £342
million and Juluca £95
million. Benlysta in
immunology, Nucala in
respiratory, and Oncology medicines Zejula, Blenrep and Jemperli all continued to show strong
double-digit growth.
Vaccine
sales were £1,305 million, up 33% at AER, 35% at CER. The
performance was driven by Shingrix sales of £484 million,
>100% at AER, >100% at CER, particularly in
Germany.
General
Medicines sales were £1,527 million and decreased 5% at AER,
4% at CER, reflecting the ongoing impact of generic competitive
pressures on Seretide and
the divestment in Q4 2021 of cephalosporins which caused 2
percentage points of drag. This was partly offset, however, by
strong demand for Trelegy
and the growth of Augmentin
following the post-pandemic rebound of the antibiotic market since
H2 2021.
International
International
sales were £6,337 million, up 18% at AER, 18% at CER,
including Xevudy sales of
£929 million. Sales grew 5% at AER, 5% at CER excluding sales
of pandemic assets.
In
Specialty, HIV sales were £512 million and decreased 6% at
AER, 9% at CER, primarily driven by tender decline; strong
Dovato growth partially
offset the performance. Combined Tivicay and Triumeq sales were £381 million,
down 18% at AER and 20% at CER. Nucala grew 24% at AER and 27% at CER
in reflecting biological market growth in Japan and strong uptake
in Canada and Brazil. Benlysta grew 46% at AER and 45% at CER
reflecting addition to China’s National Reimbursement Drug
List and market growth in Japan.
Vaccine
sales were £1,303 million and decreased 4% at AER, 6% at CER.
Excluding the impact of COVID-19 vaccine adjuvant sales in the
first 9 months of 2021, sales grew 4% at AER, 2% at CER, primarily
reflecting strong Shingrix
take-up in China, Canada and Japan offsetting phasing and supply
constraint impacts across the Established Vaccines
portfolio.
General
Medicines sales were £3,271 million up 5% at AER, 5% at CER.
Respiratory sales of £1,425 million increased 8% at AER, 8% at
CER, reflecting the strong growth of Trelegy, particularly in Japan, China,
and Canada. Sales of Advair/Seretide were stable at AER,
down 1% at CER with the adverse impact of generic competition
offset by growth in certain markets due to targeted promotion.
Other General Medicines sales of £1,846 million increased 2%
at AER, 3% at CER, and reflected growth of Augmentin following the post-pandemic
rebound of the antibiotic market since Q3 2021.
|
Operating
performance
|
Cost of sales
Total
cost of sales as a percentage of turnover was 33.3%, 2.8 percentage
points higher at AER and 4.0 percentage points higher in CER terms
than 2021. This included lower write-downs on sites from major
restructuring programmes compared to 2021.
Excluding
these and other Adjusting items, Adjusted cost of sales as a
percentage of turnover was 30.6%, 3.6 percentage points higher at
AER and 4.8 percentage points higher at CER compared with 2021.
This primarily reflected higher sales of lower margin Xevudy compared to 2021 which included
higher margin pandemic adjuvant sales, increasing cost of sales
margin by 5.6 percentage points at AER and 5.6 percentage points at
CER, as well as the impact of increased commodity prices and
freight costs. This was partially offset by a favourable mix
primarily from increased sales of Shingrix in the US and Europe and
increased sales of HIV medicines in the US.
Selling, general and administration
Total
SG&A costs as a percentage of turnover were 27.0%, 0.6
percentage points lower at AER and 0.5 percentage points lower at
CER than in 2021 as the growth in sales outweighed SG&A
expenditure growth.
Adjusted
SG&A costs as a percentage of turnover were 25.9%, 0.9
percentage points lower at AER than in 2021 and 0.8 percentage
points lower at CER. Adjusted SG&A costs increased 20% at AER,
16% at CER which primarily reflected an increased level of launch
investment in Specialty Medicines particularly HIV and Vaccines
including Shingrix to drive
post-pandemic recovery demand and support market expansion. The
growth in Adjusted SG&A also reflected an unfavourable
comparison to a beneficial legal settlement in 2021 and impairment
provisions relating to Ukraine. This growth was partly offset by
the continuing benefit of restructuring and tight control of
ongoing costs.
Research and development
Adjusted
R&D expenditure in the year-to-date increased by 9% at AER, and
5% at CER, to £3,540 million. This reflected continued
increased investment across Vaccine clinical development, including
investments into the emerging mRNA technology platform, continued
investment in the late-stage portfolio and several early discovery
programmes as well as expenditure related to our recent acquisition
of Affinivax.
In
addition, in Specialty Medicines, the level of R&D investment
increased to support the phase III programme for depemokimab, a
potential new medicine to treat severe asthma as well as in
Oncology with new expenditure in momelotinib, our potential new
treatment of myelofibrosis patients with anaemia, acquired as part
of the recent Sierra Oncology acquisition. These increases in
investment were offset by decreases related to the completion of
several late-stage clinical development programmes and reduced
R&D investment in COVID-19 pandemic solutions versus 2021 as
well as continued efficiencies driven by the One R&D
restructuring programme.
Royalty income
Royalty
income was £552 million (2021: £280 million), up 97% at
AER, 97% at CER, primarily reflecting royalty income from Gilead
under the settlement and licensing agreement with Gilead announced
on 1 February 2022 and higher sales of Gardasil.
|
Other operating income/(expense)
Net
other operating expense was £994 million (2021: £137
million) reflecting accounting charges of £1,729 million
(2021: £489 million) arising from the remeasurement of
contingent consideration liabilities and the liabilities for the
Pfizer put option and Pfizer and Shionogi preferential dividends in
ViiV Healthcare. This included a remeasurement charge of
£1,423 million (2021: £498 million) for the contingent
consideration liability due to Shionogi, including the unwinding of
the discount for £300 million and a charge for £1,123
million primarily from changes to exchange rates as well as
adjustments to sales forecasts. In addition, there was a fair value
loss of £377 million on the retained stake in Haleon
reflecting a reduction in share price since listing. This was
partly offset by £0.9 billion upfront income received from the
settlement with Gilead.
|
Operating profit
Total
operating profit was £4,565 million compared with £3,865
million in 2021. This included the £0.9 billion upfront income
received from the settlement with Gilead and increased profits on
turnover growth of 19% at CER, partly offset by higher
remeasurement charges for contingent consideration liabilities and
a £377 million fair value loss on the retained stake in
Haleon. Adjusted operating profit was £6,556 million, 27%
higher at AER and 16% at CER than 2021 on a turnover increase of
19% at CER. The Adjusted operating margin of 29.9% was 0.5
percentage points higher at AER and 0.7 percentage points lower at
CER compared to 2021. This primarily reflected the impact from low
margin COVID-19 solutions sales (Xevudy), which did not impact on
Adjusted Operating profit growth but reduced the Adjusted operating
margin by approximately 2.4 percentage points at AER and
approximately 2.2 percentage points at CER. This was offset by
operating leverage from strong sales growth, mix benefit and higher
royalty income.
Contingent
consideration cash payments made to Shionogi and other companies
reduce the balance sheet liability and hence are not recorded in
the income statement. Total contingent consideration cash payments
in 2022 amounted to £864 million (2021: £631 million).
These included cash payments made to Shionogi of £843 million
(2021: £615 million).
Adjusted operating profit by business
Commercial
Operations operating profit was £10,371 million, up 18% at AER
and 11% at CER on a turnover increase of 19% at CER. The operating
margin of 47.3% was 2.6 percentage points lower at AER, 3.6
percentage points lower at CER than in 2021. This primarily
reflected strong sales of lower margin Xevudy in the period, increased
investment behind launches in Specialty Medicines including HIV and
Vaccines plus higher commodity, freight and distribution costs as
well as an adverse comparison to a favourable legal settlement in
2021. This was partly offset by continued tight control of ongoing
costs, benefits from continued restructuring and increased royalty
income from Biktarvy sales following the settlement with Gilead in
February 2022 and increased Gardasil sales.
R&D
segment operating expenses were £3,548 million, up 8% at AER,
3% at CER, primarily reflecting increased investment in Vaccines
including priority investments for mRNA and late stage portfolio
and Specialty Medicines in early stage HIV and depemokimab. This
was partly offset by the completion of several late-stage clinical
development programmes, a favourable comparator to 2021, which saw
increased levels of R&D investment due to COVID-19 pandemic
solutions and continued efficiencies driven by the R&D
restructuring programme.
Net finance costs
Total
net finance costs were £559 million compared with £568
million in 2021. Adjusted net finance costs were £556 million
compared with £566 million in 2021. The decrease is mainly
driven by increased interest income due to higher interest rates
and larger cash balances as a result of the Consumer demerger
partly offset by adverse movements in foreign exchange rates and
higher interest on tax.
Share of after tax profits of associates and joint
ventures
The
share of after tax loss of associates and joint ventures was
£4 million (2021: £35 million share of profit). In 2021,
the Group also reported a net loss on disposal of interests in
associates of £36 million, primarily driven by a loss on
disposal of our interest in the associate Innoviva
Inc.
Taxation
The
charge of £706 million represented an effective tax rate on
Total results of 17.6% (2021: 6.1%) and reflected the different tax
effects of the various Adjusting items. Included in 2021 was a
credit of £325 million resulting from the revaluation of
deferred tax assets following enactment of the proposed change of
UK corporation tax rates from 19% to 25%. Tax on Adjusted profit
amounted to £966 million and represented an effective Adjusted
tax rate of 16.1% (2021: 18.1%).
Issues
related to taxation are described in Note 14,
‘Taxation’ in the Annual Report 2021. The Group
continues to believe it has made adequate provision for the
liabilities likely to arise from periods that are open and not yet
agreed by relevant tax authorities. The ultimate liability for such
matters may vary from the amounts provided and is dependent upon
the outcome of agreements with relevant tax
authorities.
Non-controlling interests
The
allocation of Total earnings to non-controlling interests amounted
to £335 million (2021: £206 million). The increase was
primarily due to an increased allocation of ViiV Healthcare profits
of £292 million (2021: £205 million), including the
Gilead upfront settlement income partly offset by increased credits
for remeasurement of contingent consideration liabilities, as well
as higher net profits in some of the Group’s other entities
with non-controlling interests.
The
allocation of Adjusted earnings to non-controlling interests
amounted to £446 million (2021: £332 million). The
increase in allocation primarily reflected an increased allocation
of ViiV Healthcare profits of £403 million (2021: £331
million), as well as higher net profits in some of the
Group’s other entities with non-controlling
interests.
Earnings per share from continuing operations
Total
EPS from continuing operations was 73.6p compared with 72.2p in
2021. This primarily reflected the £0.9 billion upfront income
received from the settlement with Gilead and increased profits on
turnover growth of 19% at CER, partly offset by higher
remeasurement charges for contingent consideration liabilities and
a £377 million fair value loss on the retained stake in Haleon
as well as an unfavourable comparison due to a credit of £325
million to Taxation in Q2 2021 resulting from the revaluation of
deferred tax assets.
Adjusted
EPS was 113.9p compared with 86.8p in 2021, up 31% at AER, 20% at
CER, on a 19% CER turnover increase. Operating leverage from growth
in sales of Specialty Medicines including HIV and Vaccines,
beneficial mix, higher royalty income and a lower effective tax
rate was partly offset by increased investment behind launches in
Specialty Medicines including HIV and Vaccines plus higher supply
chain, freight and distribution costs and higher non-controlling
interests.
Profit and earnings per share from discontinued
operations
Discontinued
operations include the Consumer Healthcare business and certain
Corporate costs directly attributable to the Consumer Healthcare
business. Profit after taxation from discontinued operations
amounted to £10,199 million (2021: £1,070 million). This
includes £9,578 million for the gain arising on the demerger
of Consumer Healthcare split between the amount distributed to
shareholders on demerger of £7,227 million and profit after
taxation on discontinued operations for the retained stake of
£2,351 million. In addition the Profit after taxation from
discontinued operations for the Consumer Healthcare business from 1
January to 18 July 2022 was £621 million (2021: £1,070
million).
EPS
from discontinued operations was 248.4p, compared with 18.6p in
2021. The increase primarily reflected the gain arising on the
demerger of the Consumer Healthcare business recognised in Profit
after taxation for discontinued operations. For further details see
page 54, discontinued operations.
Currency impact on 2022 results
The
results for 2022 are based on average exchange rates, principally
£1/$1.26, £1/€1.18 and £1/Yen 160. Comparative
exchange rates are given on page 51. The period-end exchange rates
were £1/$1.11, £1/€1.13 and £1/Yen
160.
In the
nine months, turnover was up 25% at AER and 19% at CER. Total EPS
from continuing operations was 73.6p compared with 72.2p in 2021.
Adjusted EPS was 113.9p compared with 86.8p in 2021, up 31% at AER
and 20% at CER. The favourable currency impact primarily reflected
the weakening of Sterling against the US Dollar, partly offset by
strengthening in Sterling against the Euro and Japanese Yen.
Exchange gains or losses on the settlement of intercompany
transactions had a negligible impact on the eleven percentage point
favourable currency impact on Adjusted EPS.
|
Adjusting items
The
reconciliations between Total results and Adjusted results for 2022
and 2021 are set out below.
|
Nine months ended 30 September 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
|
21,948
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21,948
|
Cost of
sales
|
(7,316)
|
|
|
|
501
|
|
|
|
60
|
|
35
|
|
9
|
|
(6,711)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
14,632
|
|
|
|
501
|
|
|
|
60
|
|
35
|
|
9
|
|
15,237
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administration
|
(5,934)
|
|
|
|
|
|
|
|
177
|
|
|
|
64
|
|
(5,693)
|
Research
and development
|
(3,691)
|
|
|
|
75
|
|
56
|
|
20
|
|
|
|
|
|
(3,540)
|
Royalty
income
|
552
|
|
|
|
|
|
|
|
|
|
|
|
|
|
552
|
Other
operating income/(expense)
|
(994)
|
|
|
|
|
|
|
|
1
|
|
1,709
|
|
(716)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
4,565
|
|
|
|
576
|
|
56
|
|
258
|
|
1,744
|
|
(643)
|
|
6,556
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
finance cost
|
(559)
|
|
|
|
|
|
|
|
1
|
|
|
|
2
|
|
(556)
|
Share
of after tax losses and joint
of
associates ventures
|
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
4,002
|
|
|
|
576
|
|
56
|
|
259
|
|
1,744
|
|
(641)
|
|
5,996
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
(706)
|
|
|
|
(119)
|
|
(10)
|
|
(51)
|
|
(237)
|
|
157
|
|
(966)
|
Tax rate %
|
17.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from
continuing operations
|
3,296
|
|
|
|
457
|
|
46
|
|
208
|
|
1,507
|
|
(484)
|
|
5,030
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
after taxation from
discontinued
operations and other
gains/(losses)
from the demerger
|
2,972
|
|
(2,972)
|
|
|
|
|
|
|
|
|
|
|
|
-
|
Remeasurement
of discontinued
operations
distributed to
shareholders
on demerger
|
7,227
|
|
(7,227)
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from
discontinued operations
|
10,199
|
|
(10,199)
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit after taxation
for the period
|
13,495
|
|
(10,199)
|
|
457
|
|
46
|
|
208
|
|
1,507
|
|
(484)
|
|
5,030
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling
interest
from continuing operations
|
335
|
|
|
|
|
|
|
|
|
|
111
|
|
|
|
446
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to shareholders
from
continuing operations
|
2,961
|
|
|
|
457
|
|
46
|
|
208
|
|
1,396
|
|
(484)
|
|
4,584
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling
interest
from discontinued
operations
|
205
|
|
(205)
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to shareholders
from
discontinued operations
|
9,994
|
|
(9,994)
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,495
|
|
(10,199)
|
|
457
|
|
46
|
|
208
|
|
1,507
|
|
(484)
|
|
5,030
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit attributable to
non-controlling interests
|
540
|
|
(205)
|
|
|
|
|
|
|
|
111
|
|
|
|
446
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit attributable to
shareholders
|
12,955
|
|
(9,994)
|
|
457
|
|
46
|
|
208
|
|
1,396
|
|
(484)
|
|
4,584
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,495
|
|
(10,199)
|
|
457
|
|
46
|
|
208
|
|
1,507
|
|
(484)
|
|
5,030
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share from continuing
operations
|
73.6p
|
|
|
|
11.4p
|
|
1.1p
|
|
5.2p
|
|
34.6p
|
|
(12.0)p
|
|
113.9p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share from
discontinued
operations
|
248.4p
|
|
(248.4)p
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total earnings per share
|
322.0p
|
|
(248.4)p
|
|
11.4p
|
|
1.1p
|
|
5.2p
|
|
34.6p
|
|
(12.0)p
|
|
113.9p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number
of
shares (millions)
|
4,024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended 30 September
2021(a)
|
|
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
|
17,620
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17,620
|
Cost of
sales
|
(5,378)
|
|
|
|
491
|
|
|
|
84
|
|
22
|
|
27
|
|
(4,754)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
12,242
|
|
|
|
491
|
|
|
|
84
|
|
22
|
|
27
|
|
12,866
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administration
|
(4,877)
|
|
|
|
|
|
|
|
139
|
|
|
|
7
|
|
(4,731)
|
Research
and development
|
(3,643)
|
|
|
|
76
|
|
283
|
|
42
|
|
|
|
2
|
|
(3,240)
|
Royalty
income
|
280
|
|
|
|
|
|
|
|
|
|
|
|
|
|
280
|
Other
operating income/(expense)
|
(137)
|
|
|
|
|
|
|
|
|
|
515
|
|
(378)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
3,865
|
|
|
|
567
|
|
283
|
|
265
|
|
537
|
|
(342)
|
|
5,175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
finance cost
|
(568)
|
|
|
|
|
|
|
|
1
|
|
|
|
1
|
|
(566)
|
Loss on
disposal of interest
in
associates
|
(36)
|
|
|
|
|
|
|
|
|
|
|
|
36
|
|
-
|
Share
of after tax losses and joint
of
associates ventures
|
35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
3,296
|
|
|
|
567
|
|
283
|
|
266
|
|
537
|
|
(305)
|
|
4,644
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
(200)
|
|
|
|
(107)
|
|
(68)
|
|
(56)
|
|
(101)
|
|
(309)
|
|
(841)
|
Tax rate %
|
6.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from
continuing operations
|
3,096
|
|
|
|
460
|
|
215
|
|
210
|
|
436
|
|
(614)
|
|
3,803
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
after taxation from
discontinued
operations and other
gains/(losses)
from the demerger
|
1,070
|
|
(1,070)
|
|
|
|
|
|
|
|
|
|
|
|
-
|
Remeasurement
of discontinued
operations
distributed to
shareholders
on demerger
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from
discontinued operations
|
1,070
|
|
(1,070)
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit after taxation
for the period
|
4,166
|
|
(1,070)
|
|
460
|
|
215
|
|
210
|
|
436
|
|
(614)
|
|
3,803
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling
interest
from continuing operations
|
206
|
|
|
|
|
|
|
|
|
|
126
|
|
|
|
332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to shareholders
from
continuing operations
|
2,890
|
|
|
|
460
|
|
215
|
|
210
|
|
310
|
|
(614)
|
|
3,471
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling
interest
from discontinued
operations
|
324
|
|
(324)
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to shareholders
from
discontinued operations
|
746
|
|
(746)
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,166
|
|
(1,070)
|
|
460
|
|
215
|
|
210
|
|
436
|
|
(614)
|
|
3,803
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit attributable to
non-controlling interests
|
530
|
|
(324)
|
|
|
|
|
|
|
|
126
|
|
|
|
332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit attributable to
shareholders
|
3,636
|
|
(746)
|
|
460
|
|
215
|
|
210
|
|
310
|
|
(614)
|
|
3,471
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,166
|
|
(1,070)
|
|
460
|
|
215
|
|
210
|
|
436
|
|
(614)
|
|
3,803
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share from continuing
operations
|
72.2p
|
|
|
|
11.5p
|
|
5.4p
|
|
5.2p
|
|
7.8p
|
|
(15.3)p
|
|
86.8p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share from
discontinued
operations
|
18.6p
|
|
(18.6)p
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total earnings per share
|
90.8p
|
|
(18.6)p
|
|
11.5p
|
|
5.4p
|
|
5.2p
|
|
7.8p
|
|
(15.3)p
|
|
86.8p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number
of
shares (millions)
|
4,001
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,001
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
The
2021 comparative results have been restated on a consistent basis
from those previously published to reflect the demerger of the
Consumer Healthcare business
(see page 21) and
the impact of Share Consolidation implemented on 18 July 2022 (see
page 55).
|
Major restructuring and integration
|
Total
Major restructuring charges from continuing operations incurred in
2022 were £258 million (2021: £265 million), analysed as
follows:
|
|
9 months 2022
|
|
9
months 2021
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
£m
|
|
Non-
cash
£m
|
|
Total
£m
|
|
Cash
£m
|
|
Non-
cash
£m
|
|
Total
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
Separation
Preparation restructuring
programme
|
77
|
|
164
|
|
241
|
|
248
|
|
18
|
|
266
|
Significant
acquisitions
|
10
|
|
-
|
|
10
|
|
-
|
|
-
|
|
-
|
Legacy
programmes
|
3
|
|
4
|
|
7
|
|
22
|
|
(23)
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
90
|
|
168
|
|
258
|
|
270
|
|
(5)
|
|
265
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
charges of £77 million under the Separation Preparation
programme primarily arose from the restructuring of some
administrative functions as well as global Supply Chain and R&D
functions. The non-cash charges of £164 million primarily
reflected the write-down of assets in administrative and
manufacturing locations and impairment of IT assets.
Total
cash payments made in 2022 were £273 million (2021: £417
million), £240 million (2021: £319 million) relating to
the Separation Preparation restructuring programme, £5 million
relating to Significant acquisitions (2021: £nil) and £28
million (2021: £98 million) relating to other legacy
programmes including the settlement of certain charges accrued in
previous quarters.
|
The
analysis of Major restructuring charges by Income statement line
was as follows:
|
|
9 months 2022
£m
|
|
9
months 2021
£m
|
|
|
|
|
Cost of
sales
|
60
|
|
84
|
Selling,
general and administration
|
177
|
|
139
|
Research
and development
|
20
|
|
42
|
Other
operating expenses
|
1
|
|
-
|
|
|
|
|
Total
Major restructuring costs from continuing operations
|
258
|
|
265
|
|
|
|
|
The
benefit in the 9 months from restructuring programmes was £0.4
billion, primarily relating to the Separation Preparation
restructuring programme.
The
Group initiated in Q1 2020 a two-year Separation Preparation
programme to prepare for the separation of GSK into two companies.
The programme aims to:
|
●
|
Drive a
common approach to R&D with improved capital
allocation
|
●
|
Align
and improve the capabilities and efficiency of global support
functions to support GSK
|
●
|
Further
optimise the supply chain and product portfolio, including the
divestment of non-core assets
|
●
|
Prepare
Consumer Healthcare to operate as a standalone company
|
The
programme continues to target delivery of £0.8 billion of
annual savings by 2022 and £1.0 billion by 2023, with total
costs estimated at £2.4 billion, of which £1.6 billion is
expected to be cash costs. The proceeds of divestments have largely
covered the cash costs of the programme.
|
Materially
all of the Separation Preparation restructuring programme has been
included as part of continuing operations. The legacy Consumer
Healthcare Joint Venture integration programme is now included as
part of discontinued operations.
|
Transaction-related adjustments
Transaction-related
adjustments from continuing operations resulted in a net charge of
£1,744 million (2021: £537 million). This included a net
£1,729 million accounting charge for the remeasurement of
contingent consideration liabilities and the liabilities for the
Pfizer put option and Pfizer and Shionogi preferential dividends in
ViiV Healthcare.
|
Charge/(credit)
|
9 months 2022
£m
|
|
9
months 2021
£m
|
|
|
|
|
Contingent
consideration on former Shionogi-ViiV Healthcare joint
Venture
(including
Shionogi preferential dividends)
|
1,423
|
|
498
|
ViiV
Healthcare put options and Pfizer preferential
dividends
|
201
|
|
(53)
|
Contingent
consideration on former Novartis Vaccines business
|
100
|
|
44
|
Other
adjustments
|
20
|
|
48
|
|
|
|
|
Total
transaction-related charges
|
1,744
|
|
537
|
|
|
|
|
The £1,423 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, as a result of the unwind of the
discount for £300 million and a charge of £1,123 million
primarily from exchange rates as well as adjustments to sales
forecasts. The £201 million charge relating to the ViiV
Healthcare put option and Pfizer preferential dividends represented
an increase in the valuation of the put option primarily as a
result of updated exchange rates as well as adjustments to sales
forecasts.
The
ViiV Healthcare contingent consideration liability is fair valued
under IFRS. An explanation of the accounting for the
non-controlling interests in ViiV Healthcare is set out on page
39.
Divestments, significant legal charges, and other
items
Divestments,
significant legal charges and other items primarily included the
£935 million upfront settlement income received from Gilead,
as well as milestone income and gains from a number of asset
disposals, partly offset by a fair value loss of £377 million
on the retained stake in Haleon and certain other Adjusting
items.
Discontinued operations
From Q2
2020, the Group started to report additional costs to prepare for
establishment of the Consumer Healthcare business as an independent
entity (“Separation costs”). These are now presented as
part of discontinued operations. Total separation costs incurred in
2022 were £361 million (2021: £184 million). This
includes £102 million relating to transaction costs incurred
in connection with the demerger and preparatory admission costs
related to the listing of Haleon.
Total
separation costs to date are £743 million including £140
million relating to transaction costs.
|
Cash generation
|
Cash flow
|
*
|
Free cash flow from continuing operations and free cash flow
conversion are defined on page 65.
|
**
|
Net debt is analysed on page 56.
|
Q3 2022
Cash
generated from operations attributable to continuing operations for
the quarter was £1,907 million (Q3 2021: £2,161 million).
The decrease primarily reflected increased cash contributions to
the UK defined benefit pension schemes and unfavourable timing of
profit share payments for Xevudy partly offset by an increase in
operating profit, including beneficial exchange, favourable timing
of returns and rebates and favourable timing of
collections.
Cash generated from operations attributable to discontinued
operations for the quarter was £10 million (Q3 2021: £558
million).
Total cash payments to Shionogi in relation to the ViiV Healthcare
contingent consideration liability in the quarter were £240
million (Q3 2021: £196 million), all of which was recognised
in cash flows from operating activities. These payments are
deductible for tax purposes.
Free
cash inflow from continued operations was £712 million for the
quarter (Q3 2021: £820 million). The reduction primarily
reflected adverse timing of profit share payments for Xevudy sales, increased cash
contribution to pensions and increased tax payments, partly offset
by reduced purchases of intangible assets, the increase in
operating profit including beneficial exchange, favourable timing
of returns and rebates and favourable timing of
collections.
|
Nine months 2022
Cash generated from operations attributable to continuing
operations for nine months was £5,843 million (2021:
£3,920 million). The increase primarily reflected a
significant increase in operating profit including the upfront
income from the settlement with Gilead, favourable exchange impact
and favourable timing of collections, partly offset by unfavourable
timing of profit share payments for Xevudy sales, increased cash contribution to pensions,
increased contingent consideration payments reflecting the Gilead
settlement in February 2022 and a higher seasonal increase in
inventory.
Cash generated from operations attributable to discontinued
operations for 2022 was £928 million (2021: £1,122
million).
Total cash payments to Shionogi in relation to the ViiV Healthcare
contingent consideration liability in the nine months were
£843 million (2021: £615 million), of which £774
million was recognised in cash flows from operating activities and
£69 million was recognised in contingent consideration paid
within investing cash flows. These payments are deductible for tax
purposes.
Free
cash inflow from continuing operations was £2,453 million for
the nine months (2021: £957 million). The increase primarily
reflected a significant increase in operating profit including the
upfront income from the settlement with Gilead, favourable
exchange, reduced purchases of intangible assets and favourable
timing of collections. This was partly offset by unfavourable
timing of profit share payments for Xevudy sales, increased cash
contributions to pensions, increased contingent consideration
payments reflecting the Gilead settlement in February 2022, higher
tax payments, lower proceeds from disposals, higher capital
expenditure and a higher seasonal increase in
inventory.
|
Total Net debt
At 30
September 2022, net debt was £18.4 billion, compared with
£19.8 billion at 31 December 2021, comprising gross debt of
£22.1 billion and cash and liquid investments of £3.7
billion.
Net
debt reduced by £1.4 billion due to £2.5 billion free
cash flow from continuing operations and £7.2 billion decrease
from discontinued operations as a result of the demerger primarily
reflecting £7.1 billion of pre-separation dividends
attributable to GSK funded by Consumer Healthcare debt. This was
partly offset by purchases of businesses of £3.0 billion
reflecting the acquisitions of Sierra Oncology and Affinivax,
dividends paid to shareholders of £2.8 billion, £2.4
billion of net adverse exchange impacts from the translation of
non-Sterling denominated debt and exchange on other financing items
and £0.1 billion purchases of equity investments.
At 30
September 2022, GSK had short-term borrowings (including overdrafts
and lease liabilities) repayable within 12 months of £2.8
billion with loans of £2.0 billion repayable in the subsequent
year.
|
Returns to
shareholders
|
Quarterly dividends
The
Board has declared a third dividend for 2022 of 13.75p per share
retrospectively adjusted for the Share Consolidation (Q3 2021:
23.75p restated pence per share).
On 23
June 2021, at the new GSK Investor Update, GSK set out that from
2022 a progressive dividend policy will be implemented guided by a
40 to 60 percent pay-out ratio through the investment cycle. The
dividend policy, the total expected cash distribution, and the
respective dividend pay-out ratios for GSK remain
unchanged.
GSK has
previously stated that it expected to declare a 27p per share
dividend for the first half of 2022, a 22p per share dividend for
the second half of 2022 and a 45p per share dividend for 2023
(before the share consolidation) but that these targeted dividends
per share would increase in step with the Share Consolidation to
maintain the same aggregate dividend pay-out in absolute Pound
Sterling terms. Accordingly, using the consolidation ratio,
GSK’s expected dividend for the third quarter of 2022
converts to 13.75p per new ordinary share. The expected dividend
for the last quarter of 2022 is expected to be 13.75p resulting in
an expected total dividend for the second half of 2022 of 27.5p per
new ordinary share and the expected dividend for 2023 converts to
56.5p per new ordinary share rounded up.
Payment of dividends
The
equivalent interim dividend receivable by ADR holders will be
calculated based on the exchange rate on 10 January 2023. An annual
fee of $0.03 per ADS (or $0.0075 per ADS per quarter) is charged by
the Depositary. The ex-dividend date will be 17 November 2022, with
a record date of 18 November 2022 and a payment date of 12 January
2023.
|
|
Paid/
Payable
|
|
Pence
per
share/
pre
share
consolidation
|
|
Pence
per
share/
post
share
consolidation
|
|
£m
|
|
|
|
|
|
|
|
|
2022
|
|
|
|
|
|
|
|
First
interim
|
1 July
2022
|
|
14
|
|
17.50
|
|
704
|
Second
interim
|
6
October 2022
|
|
13
|
|
16.25
|
|
655
|
Third
interim
|
12
January 2023
|
|
11
|
|
13.75
|
|
555
|
|
|
|
|
|
|
|
|
|
Paid/
Payable
|
|
Pence
per
share/
pre
share
consolidation
|
|
Pence
per
share/
post
share
consolidation
|
|
£m
|
|
|
|
|
|
|
|
|
2021
|
|
|
|
|
|
|
|
First
interim
|
8 July
2021
|
|
19
|
|
23.75
|
|
951
|
Second
interim
|
7
October 2021
|
|
19
|
|
23.75
|
|
951
|
Third
interim
|
13
January 2022
|
|
19
|
|
23.75
|
|
952
|
Fourth
interim
|
7 April
2022
|
|
23
|
|
28.75
|
|
1,157
|
|
|
|
|
|
|
|
|
|
|
|
80
|
|
100
|
|
4,011
|
|
|
|
|
|
|
|
|
The demerger of the Consumer Healthcare business was implemented by
GSK declaring an interim dividend in specie of Haleon plc shares.
The fair value of the distribution was £15.5
billion.
|
For
details of the Share Consolidation see page 55.
|
Weighted average number of shares
|
|
|
|
Q3 2022
millions
|
|
Q3
2021
millions(a)
|
|
|
|
|
|
|
|
|
Weighted
average number of shares – basic
|
|
|
4,030
|
|
4,006
|
|
Dilutive
effect of share options and share awards
|
|
|
58
|
|
48
|
|
|
|
|
|
|
|
|
Weighted
average number of shares – diluted
|
|
|
4,088
|
|
4,054
|
|
|
|
|
|
|
|
Weighted average number of shares
|
|
|
|
|
9 months 2022
millions
|
|
9
months 2021
millions(a)
|
|
|
|
|
|
|
|
|
Weighted
average number of shares – basic
|
|
|
4,024
|
|
4,001
|
|
Dilutive
effect of share options and share awards
|
|
|
58
|
|
48
|
|
|
|
|
|
|
|
|
Weighted
average number of shares – diluted
|
|
|
4,082
|
|
4,049
|
|
|
|
|
|
|
|
(a)
|
See page 55 for details of the Share
Consolidation.
|
At 30
September 2022, 4,034 million shares (Q3 2021: 4,006 million) were
in free issue (excluding Treasury shares and shares held by the
ESOP Trusts). GSK made no share repurchases during the period. The
company issued 0.1 million shares under employee share schemes in
the period for proceeds of £5 million (Q3 2021: £1
million).
|
At 30
September 2022, the ESOP Trusts held 33.2 million GSK shares
against the future exercise of share options and share awards. The
carrying value of £197 million has been deducted from other
reserves. The market value of these shares was £437
million.
At 30
September 2022, the company held 243.9 million Treasury shares at a
cost of £4,265 million which has been deducted from retained
earnings.
|
Total and Adjusted
results
|
Total
reported results represent the Group’s overall
performance.
GSK
also uses a number of adjusted, non-IFRS, measures to report the
performance of its business. Adjusted results and other non-IFRS
measures may be considered in addition to, but not as a substitute
for or superior to, information presented in accordance with IFRS.
Adjusted results are defined below and other non-IFRS measures are
defined on page 66.
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 (see details on page 21) 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 18, 19, 30 and
31.
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 86% of the Total
earnings and 83% of the Adjusted earnings of ViiV Healthcare for
2021.
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.
On 1
February 2022, ViiV Healthcare reached agreement with Gilead to
settle the global patent infringement litigation relating to the
commercialisation of Gilead’s Biktarvy. Under the terms of the global settlement and
licensing agreement, Gilead made an upfront payment of $1.25
billion to ViiV Healthcare in February
2022. In addition, Gilead will also pay a 3% royalty on all future
US sales of Biktarvy and in respect of the bictegravir component of
any other future bictegravir-containing products sold in the US.
These royalties will be payable by Gilead to ViiV Healthcare from 1
February 2022 until the expiry of ViiV Healthcare's US
Patent No. 8,129,385 on 5 October
2027. Gilead's obligation to pay royalties does not extend into any
period of regulatory paediatric exclusivity, if
awarded.
Cash
payments to settle the contingent consideration are made to
Shionogi by ViiV Healthcare each quarter, based on the actual sales
performance and other income of the relevant products in the
previous quarter. These payments reduce the balance sheet liability
and hence are not recorded in the income statement. The cash
payments made to Shionogi by ViiV Healthcare in the nine months to
September 2022 were £843 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 57 and 58 of the Annual Report
2021.
|
Financial
information
|
Income statement
|
|
Q3 2022
£m
|
|
Q3
2021(a)
£m
|
|
9 months
2022
£m
|
|
9
months
2021(a)
£m
|
|
|
|
|
|
|
|
|
TURNOVER
|
7,829
|
|
6,627
|
|
21,948
|
|
17,620
|
|
|
|
|
|
|
|
|
Cost of
sales
|
(2,423)
|
|
(2,016)
|
|
(7,316)
|
|
(5,378)
|
|
|
|
|
|
|
|
|
Gross
profit
|
5,406
|
|
4,611
|
|
14,632
|
|
12,242
|
|
|
|
|
|
|
|
|
Selling,
general and administration
|
(2,056)
|
|
(1,679)
|
|
(5,934)
|
|
(4,877)
|
Research
and development
|
(1,346)
|
|
(1,416)
|
|
(3,691)
|
|
(3,643)
|
Royalty income
|
255
|
|
114
|
|
552
|
|
280
|
Other
operating income/(expense)
|
(1,068)
|
|
(250)
|
|
(994)
|
|
(137)
|
|
|
|
|
|
|
|
|
OPERATING PROFIT
|
1,191
|
|
1,380
|
|
4,565
|
|
3,865
|
|
|
|
|
|
|
|
|
Finance
income
|
22
|
|
4
|
|
50
|
|
14
|
Finance
expense
|
(200)
|
|
(195)
|
|
(609)
|
|
(582)
|
Loss on
disposal of interests in associates
|
-
|
|
-
|
|
-
|
|
(36)
|
Share
of after tax (losses)/profits of associates
and
joint ventures
|
(1)
|
|
3
|
|
(4)
|
|
35
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAXATION
|
1,012
|
|
1,192
|
|
4,002
|
|
3,296
|
|
|
|
|
|
|
|
|
Taxation
|
(233)
|
|
(246)
|
|
(706)
|
|
(200)
|
Tax rate %
|
23.0%
|
|
20.7%
|
|
17.6%
|
|
6.1%
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAXATION FROM CONTINUING
OPERATIONS
|
779
|
|
946
|
|
3,296
|
|
3,096
|
|
|
|
|
|
|
|
|
Profit
after taxation from discontinued operations and
other
gains/(losses) from the demerger
|
2,347
|
|
422
|
|
2,972
|
|
1,070
|
Remeasurement
of discontinued operations distributed
to
shareholders on demerger
|
7,227
|
|
-
|
|
7,227
|
|
-
|
PROFIT AFTER TAXATION FROM DISCONTINUED
OPERATIONS(b)
|
9,574
|
|
422
|
|
10,199
|
|
1,070
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAXATION FROM THE PERIOD
|
10,353
|
|
1,368
|
|
13,495
|
|
4,166
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling interests
from
continuing operations
|
20
|
|
69
|
|
335
|
|
206
|
|
|
|
|
|
|
|
|
Profit
attributable to shareholders from
continuing
operations
|
759
|
|
877
|
|
2,961
|
|
2,890
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling interests
from
discontinued operations
|
18
|
|
131
|
|
205
|
|
324
|
|
|
|
|
|
|
|
|
Profit
attributable to shareholders from
discontinued
operations
|
9,556
|
|
291
|
|
9,994
|
|
746
|
|
|
|
|
|
|
|
|
|
10,353
|
|
1,368
|
|
13,495
|
|
4,166
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling interests
|
38
|
|
200
|
|
540
|
|
530
|
|
|
|
|
|
|
|
|
Profit
attributable to shareholders
|
10,315
|
|
1,168
|
|
12,955
|
|
3,636
|
|
|
|
|
|
|
|
|
|
10,353
|
|
1,368
|
|
13,495
|
|
4,166
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE FROM CONTINUING
OPERATIONS
|
18.8p
|
|
21.9p
|
|
73.6p
|
|
72.2p
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE FROM DISCONTINUED
OPERATIONS
|
237.1p
|
|
7.3p
|
|
248.4p
|
|
18.6p
|
|
|
|
|
|
|
|
|
TOTAL EARNINGS PER SHARE
|
255.9p
|
|
29.2p
|
|
322.0p
|
|
90.8p
|
|
|
|
|
|
|
|
|
Diluted
earnings per share from continuing
operations
|
18.6p
|
|
21.6p
|
|
72.5p
|
|
71.4p
|
|
|
|
|
|
|
|
|
Diluted
earnings per share from discontinued
operations
|
233.7p
|
|
7.2p
|
|
244.8p
|
|
18.4p
|
|
|
|
|
|
|
|
|
Total
diluted earnings per share
|
252.3p
|
|
28.8p
|
|
317.3p
|
|
89.8p
|
|
|
|
|
|
|
|
|
(a)
|
The 2021 comparative results have been restated on a consistent
basis from those previously published to reflect the demerger of
the Consumer Healthcare business
(see page 21) and the impact of Share Consolidation implemented on
18 July 2022 (see page 55).
|
(b)
|
See page 54 for further details on profit after tax from
discontinued operations.
|
Statement of comprehensive
income
|
|
Q3 2022
£m
|
|
Q3
2021(a)
£m
|
|
9 months
2022
£m
|
|
9
months
2021(a)
£m
|
|
|
|
|
|
|
|
|
Total
profit for the period
|
10,353
|
|
1,368
|
|
13,495
|
|
4,166
|
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently to continuing
operations income statement:
|
|
|
|
|
|
|
|
Exchange
movements on overseas net assets
and
net investment hedges
|
93
|
|
(169)
|
|
(105)
|
|
(209)
|
Reclassification
of exchange movements on
liquidation
or disposal of overseas subsidiaries
and
associates
|
1
|
|
-
|
|
10
|
|
(10)
|
Fair
value movements on cash flow hedges
|
11
|
|
(2)
|
|
13
|
|
(4)
|
Reclassification
of cash flow hedges to income
statement
|
(1)
|
|
(5)
|
|
12
|
|
11
|
Deferred
tax on fair value movements on cash
flow
hedges
|
17
|
|
2
|
|
17
|
|
(1)
|
|
|
|
|
|
|
|
|
|
121
|
|
(174)
|
|
(53)
|
|
(213)
|
|
|
|
|
|
|
|
|
Items that will not be reclassified to continuing operations income
statement:
|
|
|
|
|
|
|
|
Exchange
movements on overseas net assets
of
non-controlling interests
|
(5)
|
|
6
|
|
(5)
|
|
(1)
|
Fair
value movements on equity investments
|
(24)
|
|
(453)
|
|
(648)
|
|
(295)
|
Tax on
fair value movements on equity
investments
|
4
|
|
60
|
|
61
|
|
98
|
Remeasurement
gains on defined benefit plans
|
(1,195)
|
|
49
|
|
(682)
|
|
334
|
Tax on
remeasurement losses on defined
benefit
plans
|
303
|
|
(13)
|
|
177
|
|
(65)
|
|
|
|
|
|
|
|
|
|
(917)
|
|
(351)
|
|
(1,097)
|
|
71
|
|
|
|
|
|
|
|
|
Other
comprehensive (expense)/income for the
period
from continuing operations
|
(796)
|
|
(525)
|
|
(1,150)
|
|
(142)
|
|
|
|
|
|
|
|
|
Other
comprehensive income/(expense) for the
period
from discontinued operations
|
(595)
|
|
301
|
|
333
|
|
100
|
|
|
|
|
|
|
|
|
Total
comprehensive income for the period
|
8,962
|
|
1,144
|
|
12,678
|
|
4,124
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income for the period
attributable
to:
|
|
|
|
|
|
|
|
Shareholders
|
8,904
|
|
908
|
|
12,143
|
|
3,595
|
Non-controlling
interests
|
58
|
|
236
|
|
535
|
|
529
|
|
|
|
|
|
|
|
|
|
8,962
|
|
1,144
|
|
12,678
|
|
4,124
|
|
|
|
|
|
|
|
|
(a)
|
The
2021 comparative results have been restated on a consistent basis
from those previously published to reflect the demerger of the
Consumer Healthcare business
(see page 21) and the impact of Share
Consolidation implemented on 18 July 2022 (see page
55).
|
Specialty Medicines turnover –
three months ended 30 September 2022
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
||||||||||||||||
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
||||||||
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HIV
|
1,486
|
|
19
|
|
7
|
|
1,002
|
|
28
|
|
11
|
|
331
|
|
11
|
|
11
|
|
153
|
|
(11)
|
|
(17)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dolutegravir
products
|
1,328
|
|
11
|
|
1
|
|
876
|
|
17
|
|
1
|
|
312
|
|
9
|
|
8
|
|
140
|
|
(13)
|
|
(18)
|
Tivicay
|
342
|
|
(3)
|
|
(13)
|
|
227
|
|
11
|
|
(3)
|
|
67
|
|
(1)
|
|
(1)
|
|
48
|
|
(40)
|
|
(48)
|
Triumeq
|
467
|
|
(7)
|
|
(16)
|
|
325
|
|
(3)
|
|
(16)
|
|
87
|
|
(20)
|
|
(20)
|
|
55
|
|
(10)
|
|
(13)
|
Juluca
|
159
|
|
22
|
|
8
|
|
124
|
|
25
|
|
8
|
|
32
|
|
14
|
|
11
|
|
3
|
|
-
|
|
-
|
Dovato
|
360
|
|
73
|
|
60
|
|
200
|
|
82
|
|
57
|
|
126
|
|
54
|
|
54
|
|
34
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rukobia
|
21
|
|
62
|
|
54
|
|
21
|
|
75
|
|
50
|
|
1
|
|
-
|
|
-
|
|
(1)
|
|
-
|
|
-
|
Cabenuva
|
101
|
|
>100
|
|
>100
|
|
87
|
|
>100
|
|
>100
|
|
11
|
|
>100
|
|
>100
|
|
3
|
|
>100
|
|
>100
|
Apretude
|
10
|
|
-
|
|
-
|
|
10
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Other
|
26
|
|
(19)
|
|
(37)
|
|
8
|
|
(38)
|
|
(54)
|
|
7
|
|
-
|
|
(14)
|
|
11
|
|
(8)
|
|
(33)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oncology
|
164
|
|
28
|
|
19
|
|
83
|
|
14
|
|
(1)
|
|
70
|
|
37
|
|
37
|
|
11
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Zejula
|
120
|
|
19
|
|
11
|
|
58
|
|
4
|
|
(9)
|
|
51
|
|
24
|
|
27
|
|
11
|
|
>100
|
|
>100
|
Blenrep
|
36
|
|
44
|
|
32
|
|
20
|
|
25
|
|
6
|
|
16
|
|
>100
|
|
>100
|
|
-
|
|
-
|
|
-
|
Jemperli
|
8
|
|
>100
|
|
>100
|
|
5
|
|
>100
|
|
>100
|
|
3
|
|
>100
|
|
>100
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Immuno-
inflammation,
respiratory and other
|
688
|
|
29
|
|
17
|
|
484
|
|
31
|
|
13
|
|
96
|
|
20
|
|
19
|
|
108
|
|
30
|
|
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benlysta
|
308
|
|
29
|
|
15
|
|
257
|
|
28
|
|
11
|
|
21
|
|
24
|
|
24
|
|
30
|
|
43
|
|
38
|
Nucala
|
366
|
|
28
|
|
18
|
|
226
|
|
34
|
|
15
|
|
76
|
|
21
|
|
21
|
|
64
|
|
21
|
|
23
|
Other
|
14
|
|
56
|
|
22
|
|
1
|
|
-
|
|
-
|
|
(1)
|
|
-
|
|
-
|
|
14
|
|
56
|
|
56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Speciality Medicines
excluding pandemic
|
2,338
|
|
22
|
|
11
|
|
1,569
|
|
28
|
|
11
|
|
497
|
|
16
|
|
15
|
|
272
|
|
5
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pandemic
|
411
|
|
>100
|
|
>100
|
|
25
|
|
56
|
|
(87)
|
|
3
|
|
>100
|
|
>100
|
|
383
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Xevudy
|
411
|
|
>100
|
|
>100
|
|
25
|
|
56
|
|
(87)
|
|
3
|
|
>100
|
|
>100
|
|
383
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty Medicines
|
2,749
|
|
36
|
|
24
|
|
1,594
|
|
29
|
|
10
|
|
500
|
|
17
|
|
16
|
|
655
|
|
84
|
|
83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty Medicines turnover –
nine months ended 30 September 2022
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
||||||||||||||||
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
||||||||
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HIV
|
4,071
|
|
16
|
|
9
|
|
2,593
|
|
24
|
|
12
|
|
966
|
|
10
|
|
12
|
|
512
|
|
(6)
|
|
(9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dolutegravir
products
|
3,709
|
|
10
|
|
4
|
|
2,313
|
|
15
|
|
4
|
|
919
|
|
9
|
|
10
|
|
477
|
|
(7)
|
|
(9)
|
Tivicay
|
1,008
|
|
(5)
|
|
(10)
|
|
588
|
|
4
|
|
(5)
|
|
204
|
|
(5)
|
|
(3)
|
|
216
|
|
(23)
|
|
(27)
|
Triumeq
|
1,320
|
|
(6)
|
|
(12)
|
|
877
|
|
(1)
|
|
(10)
|
|
278
|
|
(19)
|
|
(17)
|
|
165
|
|
(9)
|
|
(10)
|
Juluca
|
444
|
|
19
|
|
11
|
|
339
|
|
20
|
|
9
|
|
95
|
|
17
|
|
19
|
|
10
|
|
-
|
|
-
|
Dovato
|
937
|
|
76
|
|
68
|
|
509
|
|
78
|
|
62
|
|
342
|
|
64
|
|
67
|
|
86
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rukobia
|
56
|
|
87
|
|
73
|
|
54
|
|
86
|
|
69
|
|
2
|
|
>100
|
|
100
|
|
-
|
|
-
|
|
-
|
Cabenuva
|
211
|
|
>100
|
|
>100
|
|
182
|
|
>100
|
|
>100
|
|
25
|
|
>100
|
|
>100
|
|
4
|
|
>100
|
|
>100
|
Apretude
|
20
|
|
-
|
|
-
|
|
20
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Other
|
75
|
|
(22)
|
|
(27)
|
|
24
|
|
(35)
|
|
(46)
|
|
20
|
|
(20)
|
|
(24)
|
|
31
|
|
(9)
|
|
(9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oncology
|
445
|
|
25
|
|
19
|
|
235
|
|
14
|
|
4
|
|
186
|
|
30
|
|
32
|
|
24
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Zejula
|
338
|
|
18
|
|
13
|
|
172
|
|
7
|
|
(2)
|
|
142
|
|
20
|
|
23
|
|
24
|
|
>100
|
|
>100
|
Blenrep
|
91
|
|
36
|
|
28
|
|
55
|
|
25
|
|
14
|
|
36
|
|
64
|
|
64
|
|
-
|
|
-
|
|
-
|
Jemperli
|
16
|
|
>100
|
|
>100
|
|
8
|
|
>100
|
|
>100
|
|
8
|
|
>100
|
|
>100
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Immuno-
inflammation,
respiratory and other
|
1,888
|
|
27
|
|
20
|
|
1,318
|
|
29
|
|
17
|
|
272
|
|
13
|
|
15
|
|
298
|
|
35
|
|
38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benlysta
|
820
|
|
30
|
|
20
|
|
678
|
|
29
|
|
18
|
|
60
|
|
20
|
|
22
|
|
82
|
|
46
|
|
45
|
Nucala
|
1,028
|
|
24
|
|
18
|
|
639
|
|
28
|
|
16
|
|
215
|
|
13
|
|
15
|
|
174
|
|
24
|
|
27
|
Other
|
40
|
|
67
|
|
62
|
|
1
|
|
-
|
|
-
|
|
(3)
|
|
-
|
|
-
|
|
42
|
|
75
|
|
83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Speciality Medicines
excluding pandemic
|
6,404
|
|
19
|
|
13
|
|
4,146
|
|
25
|
|
13
|
|
1,424
|
|
13
|
|
15
|
|
834
|
|
8
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pandemic
|
2,184
|
|
>100
|
|
>100
|
|
818
|
|
>100
|
|
>100
|
|
437
|
|
>100
|
|
>100
|
|
929
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Xevudy
|
2,184
|
|
>100
|
|
>100
|
|
818
|
|
>100
|
|
>100
|
|
437
|
|
>100
|
|
>100
|
|
929
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty Medicines
|
8,588
|
|
56
|
|
49
|
|
4,964
|
|
49
|
|
35
|
|
1,861
|
|
48
|
|
50
|
|
1,763
|
|
99
|
|
100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vaccines turnover – three
months ended 30 September 2022
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
||||||||||||||||
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
||||||||
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meningitis
|
441
|
|
25
|
|
16
|
|
281
|
|
24
|
|
11
|
|
91
|
|
11
|
|
10
|
|
69
|
|
57
|
|
59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bexsero
|
275
|
|
23
|
|
15
|
|
166
|
|
31
|
|
17
|
|
85
|
|
10
|
|
10
|
|
24
|
|
20
|
|
20
|
Menveo
|
157
|
|
25
|
|
14
|
|
115
|
|
16
|
|
3
|
|
4
|
|
-
|
|
-
|
|
38
|
|
65
|
|
65
|
Other
|
9
|
|
>100
|
|
>100
|
|
-
|
|
-
|
|
-
|
|
2
|
|
>100
|
|
-
|
|
7
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Influenza
|
388
|
|
1
|
|
(7)
|
|
330
|
|
1
|
|
(8)
|
|
28
|
|
22
|
|
26
|
|
30
|
|
(14)
|
|
(20)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fluarix, FluLaval
|
388
|
|
1
|
|
(7)
|
|
330
|
|
1
|
|
(8)
|
|
28
|
|
22
|
|
26
|
|
30
|
|
(14)
|
|
(20)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shingles
|
760
|
|
51
|
|
36
|
|
475
|
|
23
|
|
5
|
|
173
|
|
92
|
|
92
|
|
112
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shingrix
|
760
|
|
51
|
|
36
|
|
475
|
|
23
|
|
5
|
|
173
|
|
92
|
|
92
|
|
112
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Established
Vaccines
|
884
|
|
5
|
|
(2)
|
|
380
|
|
7
|
|
(7)
|
|
190
|
|
3
|
|
3
|
|
314
|
|
4
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Infanrix, Pediarix
|
188
|
|
21
|
|
10
|
|
116
|
|
13
|
|
(1)
|
|
41
|
|
71
|
|
71
|
|
31
|
|
7
|
|
(3)
|
Boostrix
|
179
|
|
7
|
|
(3)
|
|
122
|
|
15
|
|
1
|
|
36
|
|
(3)
|
|
(5)
|
|
21
|
|
(12)
|
|
(17)
|
Hepatitis
|
164
|
|
15
|
|
5
|
|
103
|
|
12
|
|
(2)
|
|
38
|
|
41
|
|
48
|
|
23
|
|
-
|
|
(17)
|
Rotarix
|
143
|
|
(7)
|
|
(8)
|
|
25
|
|
(31)
|
|
(42)
|
|
29
|
|
-
|
|
-
|
|
89
|
|
1
|
|
2
|
Synflorix
|
72
|
|
9
|
|
6
|
|
-
|
|
-
|
|
-
|
|
8
|
|
(27)
|
|
(18)
|
|
64
|
|
16
|
|
11
|
Priorix, Priorix
Tetra, Varilrix
|
51
|
|
(43)
|
|
(44)
|
|
1
|
|
-
|
|
-
|
|
22
|
|
(46)
|
|
(41)
|
|
28
|
|
(42)
|
|
(48)
|
Cervarix
|
40
|
|
18
|
|
12
|
|
-
|
|
-
|
|
-
|
|
7
|
|
-
|
|
-
|
|
33
|
|
22
|
|
15
|
Other
|
47
|
|
38
|
|
26
|
|
13
|
|
(24)
|
|
(59)
|
|
9
|
|
-
|
|
(33)
|
|
25
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vaccines excluding
pandemic
|
2,473
|
|
19
|
|
9
|
|
1,466
|
|
13
|
|
(1)
|
|
482
|
|
27
|
|
27
|
|
525
|
|
29
|
|
25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pandemic vaccines
|
6
|
|
(94)
|
|
(94)
|
|
-
|
|
(100)
|
|
(100)
|
|
-
|
|
-
|
|
-
|
|
6
|
|
(91)
|
|
(91)
|
Pandemic
adjuvant
|
6
|
|
(94)
|
|
(94)
|
|
-
|
|
(100)
|
|
(100)
|
|
-
|
|
-
|
|
-
|
|
6
|
|
(91)
|
|
(91)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vaccines
|
2,479
|
|
14
|
|
5
|
|
1,466
|
|
11
|
|
(3)
|
|
482
|
|
27
|
|
27
|
|
531
|
|
13
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vaccines turnover – nine months
ended 30 September 2022
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
||||||||||||||||
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
||||||||
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meningitis
|
888
|
|
16
|
|
11
|
|
500
|
|
28
|
|
16
|
|
261
|
|
(3)
|
|
(1)
|
|
127
|
|
17
|
|
19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bexsero
|
603
|
|
15
|
|
11
|
|
297
|
|
36
|
|
24
|
|
245
|
|
(2)
|
|
(1)
|
|
61
|
|
13
|
|
17
|
Menveo
|
268
|
|
20
|
|
12
|
|
203
|
|
18
|
|
7
|
|
12
|
|
(8)
|
|
(8)
|
|
53
|
|
36
|
|
38
|
Other
|
17
|
|
(15)
|
|
(15)
|
|
-
|
|
-
|
|
-
|
|
4
|
|
-
|
|
-
|
|
13
|
|
(19)
|
|
(19)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Influenza
|
438
|
|
1
|
|
(7)
|
|
332
|
|
2
|
|
(7)
|
|
28
|
|
22
|
|
26
|
|
78
|
|
(9)
|
|
(14)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fluarix, FluLaval
|
438
|
|
1
|
|
(7)
|
|
332
|
|
2
|
|
(7)
|
|
28
|
|
22
|
|
26
|
|
78
|
|
(9)
|
|
(14)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shingles
|
2,189
|
|
95
|
|
82
|
|
1,484
|
|
66
|
|
51
|
|
484
|
|
>100
|
|
>100
|
|
221
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shingrix
|
2,189
|
|
95
|
|
82
|
|
1,484
|
|
66
|
|
51
|
|
484
|
|
>100
|
|
>100
|
|
221
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Established
Vaccines
|
2,342
|
|
2
|
|
(2)
|
|
939
|
|
21
|
|
10
|
|
532
|
|
1
|
|
2
|
|
871
|
|
(12)
|
|
(13)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Infanrix, Pediarix
|
483
|
|
13
|
|
6
|
|
279
|
|
14
|
|
4
|
|
101
|
|
11
|
|
12
|
|
103
|
|
12
|
|
7
|
Boostrix
|
463
|
|
14
|
|
7
|
|
287
|
|
33
|
|
21
|
|
107
|
|
(1)
|
|
-
|
|
69
|
|
(18)
|
|
(19)
|
Hepatitis
|
445
|
|
28
|
|
21
|
|
279
|
|
35
|
|
23
|
|
106
|
|
39
|
|
43
|
|
60
|
|
(6)
|
|
(12)
|
Rotarix
|
380
|
|
(5)
|
|
(5)
|
|
74
|
|
(12)
|
|
(20)
|
|
90
|
|
5
|
|
7
|
|
216
|
|
(6)
|
|
(3)
|
Synflorix
|
237
|
|
(11)
|
|
(11)
|
|
-
|
|
-
|
|
-
|
|
24
|
|
(25)
|
|
(22)
|
|
213
|
|
(9)
|
|
(9)
|
Priorix, Priorix
Tetra, Varilrix
|
138
|
|
(33)
|
|
(33)
|
|
1
|
|
-
|
|
-
|
|
73
|
|
(25)
|
|
(23)
|
|
64
|
|
(41)
|
|
(44)
|
Cervarix
|
91
|
|
(21)
|
|
(25)
|
|
-
|
|
-
|
|
-
|
|
15
|
|
(32)
|
|
(32)
|
|
76
|
|
(18)
|
|
(24)
|
Other
|
105
|
|
(13)
|
|
(16)
|
|
19
|
|
(17)
|
|
(35)
|
|
16
|
|
-
|
|
(6)
|
|
70
|
|
(15)
|
|
(12)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vaccines excluding
pandemic
|
5,857
|
|
27
|
|
20
|
|
3,255
|
|
37
|
|
24
|
|
1,305
|
|
33
|
|
35
|
|
1,297
|
|
4
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pandemic vaccines
|
6
|
|
(98)
|
|
(98)
|
|
-
|
|
(100)
|
|
(100)
|
|
-
|
|
-
|
|
-
|
|
6
|
|
(95)
|
|
(95)
|
Pandemic
adjuvant
|
6
|
|
(98)
|
|
(98)
|
|
-
|
|
(100)
|
|
(100)
|
|
-
|
|
-
|
|
-
|
|
6
|
|
(95)
|
|
(95)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vaccines
|
5,863
|
|
18
|
|
12
|
|
3,255
|
|
24
|
|
13
|
|
1,305
|
|
33
|
|
35
|
|
1,303
|
|
(4)
|
|
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General Medicines turnover –
three months ended 30 September 2022
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
||||||||||||||||
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
||||||||
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Respiratory
|
1,682
|
|
13
|
|
4
|
|
863
|
|
16
|
|
-
|
|
329
|
|
2
|
|
2
|
|
490
|
|
15
|
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Arnuity Ellipta
|
19
|
|
6
|
|
(6)
|
|
17
|
|
13
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2
|
|
(33)
|
|
(33)
|
Anoro Ellipta
|
129
|
|
(1)
|
|
(8)
|
|
65
|
|
(13)
|
|
(24)
|
|
41
|
|
8
|
|
8
|
|
23
|
|
35
|
|
29
|
Avamys/Veramyst
|
71
|
|
16
|
|
11
|
|
-
|
|
-
|
|
-
|
|
15
|
|
7
|
|
-
|
|
56
|
|
19
|
|
15
|
Flixotide/Flovent
|
141
|
|
23
|
|
10
|
|
95
|
|
17
|
|
1
|
|
16
|
|
-
|
|
-
|
|
30
|
|
67
|
|
56
|
Incruse Ellipta
|
56
|
|
10
|
|
-
|
|
33
|
|
27
|
|
12
|
|
15
|
|
(12)
|
|
(6)
|
|
8
|
|
-
|
|
(25)
|
Relvar/Breo Ellipta
|
312
|
|
20
|
|
11
|
|
156
|
|
47
|
|
26
|
|
83
|
|
1
|
|
1
|
|
73
|
|
-
|
|
-
|
Seretide/Advair
|
265
|
|
(18)
|
|
(23)
|
|
58
|
|
(50)
|
|
(58)
|
|
66
|
|
(6)
|
|
(7)
|
|
141
|
|
3
|
|
(1)
|
Trelegy Ellipta
|
465
|
|
43
|
|
28
|
|
340
|
|
48
|
|
28
|
|
60
|
|
15
|
|
15
|
|
65
|
|
44
|
|
42
|
Ventolin
|
190
|
|
7
|
|
(2)
|
|
98
|
|
5
|
|
(10)
|
|
26
|
|
(4)
|
|
(4)
|
|
66
|
|
14
|
|
10
|
Other
Respiratory
|
34
|
|
21
|
|
25
|
|
1
|
|
(67)
|
|
>(100)
|
|
7
|
|
17
|
|
17
|
|
26
|
|
37
|
|
47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other General Medicines
|
919
|
|
(2)
|
|
(4)
|
|
92
|
|
11
|
|
(4)
|
|
173
|
|
(14)
|
|
(15)
|
|
654
|
|
1
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dermatology
|
94
|
|
(2)
|
|
(2)
|
|
-
|
|
-
|
|
-
|
|
24
|
|
(23)
|
|
(23)
|
|
70
|
|
8
|
|
8
|
Augmentin
|
150
|
|
32
|
|
32
|
|
-
|
|
-
|
|
-
|
|
34
|
|
-
|
|
(3)
|
|
116
|
|
45
|
|
46
|
Avodart
|
86
|
|
1
|
|
(4)
|
|
-
|
|
-
|
|
-
|
|
27
|
|
(7)
|
|
(7)
|
|
59
|
|
5
|
|
(2)
|
Lamictal
|
132
|
|
6
|
|
(2)
|
|
70
|
|
17
|
|
-
|
|
27
|
|
(7)
|
|
(7)
|
|
35
|
|
-
|
|
(3)
|
Other(a)
|
457
|
|
(12)
|
|
(12)
|
|
22
|
|
(4)
|
|
(13)
|
|
61
|
|
(23)
|
|
(23)
|
|
374
|
|
(9)
|
|
(9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General Medicines
|
2,601
|
|
7
|
|
1
|
|
955
|
|
15
|
|
(1)
|
|
502
|
|
(4)
|
|
(5)
|
|
1,144
|
|
7
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General Medicines turnover –
nine months ended 30 September 2022
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
||||||||||||||||
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
||||||||
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Respiratory
|
4,866
|
|
8
|
|
3
|
|
2,431
|
|
11
|
|
1
|
|
1,010
|
|
1
|
|
3
|
|
1,425
|
|
8
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Arnuity Ellipta
|
45
|
|
32
|
|
21
|
|
39
|
|
39
|
|
29
|
|
-
|
|
-
|
|
-
|
|
6
|
|
-
|
|
(17)
|
Anoro Ellipta
|
345
|
|
(9)
|
|
(13)
|
|
165
|
|
(23)
|
|
(30)
|
|
118
|
|
7
|
|
9
|
|
62
|
|
11
|
|
11
|
Avamys/Veramyst
|
239
|
|
5
|
|
5
|
|
-
|
|
-
|
|
-
|
|
51
|
|
2
|
|
2
|
|
188
|
|
6
|
|
6
|
Flixotide/Flovent
|
411
|
|
22
|
|
15
|
|
278
|
|
27
|
|
16
|
|
52
|
|
11
|
|
13
|
|
81
|
|
14
|
|
13
|
Incruse Ellipta
|
157
|
|
1
|
|
(4)
|
|
88
|
|
7
|
|
(2)
|
|
48
|
|
(11)
|
|
(9)
|
|
21
|
|
5
|
|
-
|
Relvar/Breo Ellipta
|
896
|
|
7
|
|
3
|
|
426
|
|
15
|
|
4
|
|
253
|
|
2
|
|
4
|
|
217
|
|
(2)
|
|
-
|
Seretide/Advair
|
829
|
|
(19)
|
|
(21)
|
|
203
|
|
(45)
|
|
(50)
|
|
212
|
|
(13)
|
|
(12)
|
|
414
|
|
-
|
|
(1)
|
Trelegy Ellipta
|
1,272
|
|
47
|
|
38
|
|
932
|
|
54
|
|
40
|
|
171
|
|
17
|
|
18
|
|
169
|
|
50
|
|
51
|
Ventolin
|
565
|
|
6
|
|
1
|
|
300
|
|
2
|
|
(7)
|
|
83
|
|
8
|
|
10
|
|
182
|
|
12
|
|
10
|
Other
Respiratory
|
107
|
|
6
|
|
8
|
|
-
|
|
-
|
|
-
|
|
22
|
|
10
|
|
10
|
|
85
|
|
6
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other General Medicines
|
2,631
|
|
(1)
|
|
(1)
|
|
268
|
|
10
|
|
-
|
|
517
|
|
(15)
|
|
(14)
|
|
1,846
|
|
2
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dermatology
|
277
|
|
(7)
|
|
(6)
|
|
-
|
|
-
|
|
-
|
|
79
|
|
(21)
|
|
(20)
|
|
198
|
|
-
|
|
1
|
Augmentin
|
409
|
|
38
|
|
42
|
|
-
|
|
-
|
|
-
|
|
107
|
|
24
|
|
27
|
|
302
|
|
44
|
|
48
|
Avodart
|
248
|
|
(2)
|
|
(4)
|
|
-
|
|
-
|
|
-
|
|
81
|
|
(9)
|
|
(8)
|
|
167
|
|
2
|
|
(1)
|
Lamictal
|
379
|
|
6
|
|
1
|
|
194
|
|
14
|
|
4
|
|
80
|
|
(6)
|
|
(5)
|
|
105
|
|
4
|
|
2
|
Other(a)
|
1,318
|
|
(10)
|
|
(9)
|
|
74
|
|
3
|
|
(6)
|
|
170
|
|
(32)
|
|
(31)
|
|
1,074
|
|
(5)
|
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General Medicines
|
7,497
|
|
5
|
|
2
|
|
2,699
|
|
11
|
|
1
|
|
1,527
|
|
(5)
|
|
(4)
|
|
3,271
|
|
5
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes contract manufacturing revenue from Haleon. At H1 2022
this revenue was not captured in the ‘Other’ line but
was included in the total Other General Medicines
line.
|
Commercial Operations
turnover
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
||||||||||||||||
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
||||||||
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
30 September 2022
|
7,829
|
|
18
|
|
9
|
|
4,015
|
|
18
|
|
2
|
|
1,484
|
|
11
|
|
11
|
|
2,330
|
|
22
|
|
20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
30 September 2022
|
21,948
|
|
25
|
|
19
|
|
10,918
|
|
30
|
|
18
|
|
4,693
|
|
22
|
|
24
|
|
6,337
|
|
18
|
|
18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet
|
|
30 September 2022
£m
|
|
31
December 2021
£m
|
ASSETS
|
|
|
|
Non-current assets
|
|
|
|
Property,
plant and equipment
|
8,901
|
|
9,932
|
Right
of use assets
|
749
|
|
740
|
Goodwill
|
7,195
|
|
10,552
|
Other
intangible assets
|
15,589
|
|
30,079
|
Investments
in associates and joint ventures
|
71
|
|
88
|
Other
investments
|
1,559
|
|
2,126
|
Deferred
tax assets
|
4,818
|
|
5,218
|
Derivative
financial instruments
|
12
|
|
18
|
Other
non-current assets
|
1,170
|
|
1,676
|
|
|
|
|
Total non-current assets
|
40,064
|
|
60,429
|
|
|
|
|
Current assets
|
|
|
|
Inventories
|
4,659
|
|
5,783
|
Current
tax recoverable
|
586
|
|
486
|
Trade
and other receivables
|
7,508
|
|
7,860
|
Derivative
financial instruments
|
216
|
|
188
|
Current
equity investments
|
3,482
|
|
-
|
Liquid
investments
|
73
|
|
61
|
Cash
and cash equivalents
|
3,606
|
|
4,274
|
Assets
held for sale
|
119
|
|
22
|
|
|
|
|
Total current assets
|
20,249
|
|
18,674
|
|
|
|
|
TOTAL ASSETS
|
60,313
|
|
79,103
|
|
|
|
|
LIABILITIES
|
|
|
|
Current liabilities
|
|
|
|
Short-term
borrowings
|
(2,793)
|
|
(3,601)
|
Contingent
consideration liabilities
|
(967)
|
|
(958)
|
Trade
and other payables
|
(16,115)
|
|
(17,554)
|
Derivative
financial instruments
|
(325)
|
|
(227)
|
Current
tax payable
|
(129)
|
|
(489)
|
Short-term
provisions
|
(624)
|
|
(841)
|
|
|
|
|
Total current liabilities
|
(20,953)
|
|
(23,670)
|
|
|
|
|
Non-current liabilities
|
|
|
|
Long-term
borrowings
|
(19,322)
|
|
(20,572)
|
Corporation
tax payable
|
(218)
|
|
(180)
|
Deferred
tax liabilities
|
(364)
|
|
(3,556)
|
Pensions
and other post-employment benefits
|
(2,928)
|
|
(3,113)
|
Other
provisions
|
(561)
|
|
(630)
|
Derivative
financial instruments
|
(1)
|
|
(1)
|
Contingent
consideration liabilities
|
(6,360)
|
|
(5,118)
|
Other
non-current liabilities
|
(890)
|
|
(921)
|
|
|
|
|
Total non-current liabilities
|
(30,644)
|
|
(34,091)
|
|
|
|
|
TOTAL LIABILITIES
|
(51,597)
|
|
(57,761)
|
|
|
|
|
NET ASSETS
|
8,716
|
|
21,342
|
|
|
|
|
EQUITY
|
|
|
|
Share
capital
|
1,347
|
|
1,347
|
Share
premium account
|
3,440
|
|
3,301
|
Retained
earnings
|
2,592
|
|
7,944
|
Other
reserves
|
1,773
|
|
2,463
|
|
|
|
|
Shareholders’ equity
|
9,152
|
|
15,055
|
|
|
|
|
Non-controlling
interests
|
(436)
|
|
6,287
|
|
|
|
|
TOTAL EQUITY
|
8,716
|
|
21,342
|
|
|
|
|
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 2022
|
1,347
|
|
3,301
|
|
7,944
|
|
2,463
|
|
15,055
|
|
6,287
|
|
21,342
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
for the period
|
|
|
|
|
12,955
|
|
|
|
12,955
|
|
540
|
|
13,495
|
Other
comprehensive
income/(expense)
for the period
|
|
|
|
|
(259)
|
|
(553)
|
|
(812)
|
|
(5)
|
|
(817)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income/(expense)
for
the period
|
|
|
|
|
12,696
|
|
(553)
|
|
12,143
|
|
535
|
|
12,678
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
to non-controlling interests
|
|
|
|
|
|
|
|
|
|
|
(1,278)
|
|
(1,278)
|
Non-cash
distribution to non-controlling
interest
|
|
|
|
|
|
|
|
|
|
|
(2,960)
|
|
(2,960)
|
Deconsolidation
of former subsidiaries
|
|
|
|
|
|
|
|
|
|
|
(3,028)
|
|
(3,028)
|
Contributions
from non-controlling
interests
|
|
|
|
|
|
|
|
|
|
|
8
|
|
8
|
Dividends
to shareholders
|
|
|
|
|
(2,813)
|
|
|
|
(2,813)
|
|
|
|
(2,813)
|
Non-cash
dividend to shareholder
|
|
|
|
|
(15,526)
|
|
|
|
(15,526)
|
|
|
|
(15,526)
|
Shares
issued
|
-
|
|
25
|
|
|
|
|
|
25
|
|
|
|
25
|
Shares
acquired by ESOP Trusts
|
|
|
114
|
|
704
|
|
(818)
|
|
-
|
|
|
|
-
|
Share
of associates and joint ventures
realised
profits on disposal of equity
investments
|
|
|
|
|
(1)
|
|
1
|
|
-
|
|
|
|
-
|
Realised
after tax losses on disposal
or
liquidation of equity investments
|
|
|
|
|
14
|
|
(14)
|
|
-
|
|
|
|
-
|
Shares
held by ESOP trust
|
|
|
|
|
(164)
|
|
164
|
|
-
|
|
|
|
-
|
Write-down
on shares held by ESOP
Trusts
|
|
|
|
|
(530)
|
|
530
|
|
-
|
|
|
|
-
|
Share-based
incentive plans
|
|
|
|
|
268
|
|
|
|
268
|
|
|
|
268
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30 September 2022
|
1,347
|
|
3,440
|
|
2,592
|
|
1,773
|
|
9,152
|
|
(436)
|
|
8,716
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1
January 2021
|
1,346
|
|
3,281
|
|
6,755
|
|
3,205
|
|
14,587
|
|
6,221
|
|
20,808
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
for the period
|
|
|
|
|
3,636
|
|
|
|
3,636
|
|
530
|
|
4,166
|
Other
comprehensive (expense)/
income
for the period
|
|
|
|
|
148
|
|
(189)
|
|
(41)
|
|
(1)
|
|
(42)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income for the
period
|
|
|
|
|
3,784
|
|
(189)
|
|
3,595
|
|
529
|
|
4,124
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
to non-controlling interests
|
|
|
|
|
|
|
|
|
|
|
(435)
|
|
(435)
|
Contributions
from non-controlling
interests
|
|
|
|
|
|
|
|
|
|
|
7
|
|
7
|
Dividends
to shareholders
|
|
|
|
|
(3,048)
|
|
|
|
(3,048)
|
|
|
|
(3,048)
|
Shares
issued
|
1
|
|
19
|
|
|
|
|
|
20
|
|
|
|
20
|
Realised
after tax profits on disposal
of
equity investments
|
|
|
|
|
146
|
|
(146)
|
|
-
|
|
|
|
-
|
Share
of associates and joint ventures
realised
profits on disposal of equity
investments
|
|
|
|
|
9
|
|
(9)
|
|
-
|
|
|
|
-
|
Write-down
on shares held by ESOP
Trusts
|
|
|
|
|
(135)
|
|
135
|
|
-
|
|
|
|
-
|
Share-based
incentive plans
|
|
|
|
|
272
|
|
|
|
272
|
|
|
|
272
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30
September 2021
|
1,347
|
|
3,300
|
|
7,783
|
|
2,996
|
|
15,426
|
|
6,322
|
|
21,748
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow statement – nine
months ended 30 September 2022
(amounts presented are from continuing operations
unless otherwise specified)
|
|
9 months 2022
£m
|
|
9
months 2021(a)
£m
|
Profit after tax from continuing operations
|
3,296
|
|
3,096
|
Tax on
profits
|
706
|
|
200
|
Share
of after tax losses/(profits) of associates and joint
ventures
|
4
|
|
(35)
|
Loss on
disposal of interests in associates
|
-
|
|
36
|
Net
finance expense
|
559
|
|
567
|
Depreciation,
amortisation and other adjusting items
|
2,291
|
|
1,815
|
Increase
in working capital
|
(667)
|
|
(1,203)
|
Contingent
consideration paid
|
(789)
|
|
(548)
|
Increase/(decrease)
in other net liabilities (excluding contingent consideration
paid)
|
443
|
|
(8)
|
|
|
|
|
Cash generated from operations attributable to continuing
operations
|
5,843
|
|
3,920
|
Taxation
paid
|
(1,110)
|
|
(619)
|
|
|
|
|
Net cash inflow from continuing operating activities
|
4,733
|
|
3,301
|
Cash
generated from operations attributable to discontinued
operations
|
928
|
|
1,122
|
Taxation
paid from discontinued operations
|
(163)
|
|
(238)
|
Net operating cash flows attributable to discontinued
operations
|
765
|
|
884
|
|
|
|
|
Total net cash inflows from operating activities
|
5,498
|
|
4,185
|
|
|
|
|
Cash flow from investing activities
|
|
|
|
Purchase
of property, plant and equipment
|
(705)
|
|
(576)
|
Proceeds
from sale of property, plant and equipment
|
13
|
|
118
|
Purchase
of intangible assets
|
(802)
|
|
(1,531)
|
Proceeds
from sale of intangible assets
|
126
|
|
358
|
Purchase
of equity investments
|
(121)
|
|
(146)
|
Purchase
of business net of cash acquired
|
(3,030)
|
|
-
|
Proceeds
from sale of equity investments
|
115
|
|
195
|
Share
transaction with minority shareholders
|
1
|
|
1
|
Contingent
consideration paid
|
(75)
|
|
(83)
|
Disposal
of businesses
|
(19)
|
|
(25)
|
Investment
in associates and joint ventures
|
(1)
|
|
(1)
|
Proceeds
from disposal of associates and joint ventures
|
-
|
|
277
|
Interest
received
|
49
|
|
14
|
Decrease
in liquid investments
|
-
|
|
18
|
Dividends
from associates and joint ventures
|
-
|
|
9
|
|
|
|
|
Net cash outflow from continuing investing activities
|
(4,449)
|
|
(1,372)
|
Net
investing cash flows attributable to discontinued
operations
|
(3,783)
|
|
(44)
|
|
|
|
|
Total net cash outflow from investing activities
|
(8,232)
|
|
(1,416)
|
|
|
|
|
Cash flow from financing activities
|
|
|
|
Issue
of share capital
|
25
|
|
20
|
Decrease
in long-term loans
|
(9)
|
|
(1)
|
Net
repayment of short-term loans
|
(4,207)
|
|
(578)
|
Repayment
of lease liabilities
|
(149)
|
|
(134)
|
Interest
paid
|
(504)
|
|
(474)
|
Dividends
paid to shareholders
|
(2,813)
|
|
(3,048)
|
Distributions
to non-controlling interests
|
(390)
|
|
(186)
|
Contributions
from non-controlling interests
|
8
|
|
7
|
Other
financing items
|
126
|
|
(106)
|
|
|
|
|
Net cash outflow from continuing financing activities
|
(7,913)
|
|
(4,500)
|
Net
financing cash flows attributable to discontinued
operations
|
10,074
|
|
(315)
|
|
|
|
|
Total net cash inflow/(outflow) from financing
activities
|
2,161
|
|
(4,815)
|
|
|
|
|
Increase/(decrease) in cash and bank overdrafts in the
period
|
(573)
|
|
(2,046)
|
|
|
|
|
Cash
and bank overdrafts at beginning of the period
|
3,819
|
|
5,261
|
Exchange
adjustments
|
106
|
|
(21)
|
Increase/(decrease)
in cash and bank overdrafts
|
(573)
|
|
(2,046)
|
|
|
|
|
Cash and bank overdrafts at end of the period
|
3,352
|
|
3,194
|
|
|
|
|
Cash
and bank overdrafts at end of the period comprise:
|
|
|
|
Cash
and cash equivalents
|
3,606
|
|
3,453
|
|
|
|
|
|
3,606
|
|
3,453
|
Overdrafts
|
(254)
|
|
(259)
|
|
|
|
|
|
3,352
|
|
3,194
|
|
|
|
|
(a)
|
The
2021 comparative results have been restated on a consistent basis
from those previously published to reflect the demerger of the
Consumer Healthcare business
(see page 21) and the impact of Share
Consolidation implemented on 18 July 2022 (see page
55).
|
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 has revised its operating segments from
Q1 2022 and from Q2 2022. Previously, GSK reported results under
four segments: Pharmaceuticals; Pharmaceuticals R&D; Vaccines
and Consumer Healthcare. For the first quarter 2022, GSK reported
results under three segments: Commercial Operations; Total R&D
and Consumer Healthcare. From Q2 2022, GSK reports results under
two segments from continuing operations as the demerger of the
Consumer Healthcare segment was completed on 18 July 2022. Members
of the GLT are responsible for each segment. Comparative
information in this announcement has been retrospectively restated
on a consistent basis. The Consumer Healthcare segment is presented
entirely as discontinued operations and therefore no segment
information is presented.
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 profit
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
|
|||||||
|
Q3 2022
£m
|
|
Q3
2021
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
Commercial
Operations (total turnover)
|
7,829
|
|
6,627
|
|
18
|
|
9
|
|
|
|
|
|
|
|
|
Operating profit by
segment
|
|||||||
|
Q3 2022
£m
|
|
Q3
2021(a)
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
Commercial
Operations
|
3,950
|
|
3,458
|
|
14
|
|
2
|
Research
and Development
|
(1,301)
|
|
(1,138)
|
|
14
|
|
6
|
|
|
|
|
|
|
|
|
Segment
profit
|
2,649
|
|
2,320
|
|
14
|
|
1
|
Corporate
and other unallocated costs
|
(44)
|
|
(111)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
operating profit
|
2,605
|
|
2,209
|
|
18
|
|
4
|
Adjusting
items
|
(1,414)
|
|
(829)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
operating profit
|
1,191
|
|
1,380
|
|
(14)
|
|
(35)
|
|
|
|
|
|
|
|
|
Finance
income
|
22
|
|
4
|
|
|
|
|
Finance
costs
|
(200)
|
|
(195)
|
|
|
|
|
Share
of after tax (losses)/profits of
associates
and joint ventures
|
(1)
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
before taxation from continuing operations
|
1,012
|
|
1,192
|
|
(15)
|
|
(39)
|
|
|
|
|
|
|
|
|
(a)
|
The
2021 comparative results have been restated on a consistent basis
from those previously published to reflect the demerger of the
Consumer Healthcare business
(see page 21).
|
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
|
|
9 months 2022
£m
|
|
9
months 2021
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
Commercial
Operations (total turnover)
|
21,948
|
|
17,620
|
|
25
|
|
19
|
Operating profit by
segment
|
|
9 months 2022
£m
|
|
9
months
2021(a)
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
Commercial
Operations
|
10,371
|
|
8,770
|
|
18
|
|
11
|
Research
and Development
|
(3,548)
|
|
(3,286)
|
|
8
|
|
3
|
|
|
|
|
|
|
|
|
Segment
profit
|
6,823
|
|
5,484
|
|
24
|
|
15
|
Corporate
and other unallocated costs
|
(267)
|
|
(309)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
operating profit
|
6,556
|
|
5,175
|
|
27
|
|
16
|
Adjusting
items
|
(1,991)
|
|
(1,310)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
operating profit
|
4,565
|
|
3,865
|
|
18
|
|
5
|
|
|
|
|
|
|
|
|
Finance
income
|
50
|
|
14
|
|
|
|
|
Finance
costs
|
(609)
|
|
(582)
|
|
|
|
|
Loss on
disposal of interests in associates
|
-
|
|
(36)
|
|
|
|
|
Share
of after tax (losses)/profits of
associates
and joint ventures
|
(4)
|
|
35
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
before taxation from continuing operations
|
4,002
|
|
3,296
|
|
21
|
|
6
|
(a)
|
The
2021 comparative results have been restated on a consistent basis
from those previously published to reflect the demerger of the
Consumer Healthcare business
(see page 21).
|
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 2021. At 30 September
2022, the Group’s aggregate provision for legal and other
disputes (not including tax matters described on page 28 was
£0.3 billion (31 December 2021: £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 Q2 2022
results:
Zantac
The
Zantac litigation continues
in federal and state courts in the United States. GSK’s
position on the scientific validity of these cases has not changed
since the last reporting period. GSK will continue to defend all
claims vigorously.
GSK has
been named as a co-defendant in approximately 4,100 filed personal
injury cases in federal and state court. There are approximately
77,000 plaintiffs named in these cases. A significant majority of
these plaintiffs were named in a series of multi-plaintiff
complaints recently filed in Delaware state court and most of these
plaintiffs were previously in the Multidistrict Litigation (MDL)
Census Registry in the Southern District of Florida. They were
removed because they allege a cancer other than the 5 cancers being
pursued by the MDL plaintiffs. In the MDL, plaintiffs originally
identified 10 different types of cancers they wished to pursue.
Plaintiffs subsequently dropped 5 of the 10 cancers, and they are
proceeding only as to bladder, esophageal, gastric, liver, and
pancreatic, although plaintiffs in state courts continue to pursue
claims beyond the 5 designated cancers. There are approximately
33,000 unfiled claims relating to GSK and other co-defendants
concerning the 5 designated cancers in the MDL Census Registry.
There are also over 2,000 California state court cases subject to
an agreement between GSK and the plaintiffs which suspends the
statute of limitations to allow the plaintiffs to bring their
claims at a later date. These filed and unfiled counts are subject
to change.
As
planned, in September and October 2022, the MDL Court held hearings
on the admissibility of each side’s general causation expert
witnesses (“Daubert
hearings”). Based on the 12 epidemiological studies conducted
looking at human data regarding the use of ranitidine, the
scientific consensus is that there is no consistent or reliable
evidence that ranitidine increases the risk of any type of cancer.
The 12th additional epidemiologic study (Wang et al. (2022)) was
recently released. When comparing ranitidine to an active
comparator (famotidine), Wang 2022 found a statistically
significant increased risk with regard to liver cancer (Hazard
Ratio 1.22, 95% Confidence Interval 1.06-1.40) and no statistically
significant increased risk for the remaining 4 cancers pursued in
the MDL. Consistency across available epidemiological evidence,
particularly where reported potential associations are modest, is
critical for drawing reliable conclusions about causation. The
parties await a decision from Judge Robin L.
Rosenberg.
In the
California Zantac
litigation Cases JCCP 5150 (JCCP), the Court will hold a Sargon
hearing on 25 January 2023 regarding the admissibility of expert
witnesses, including general causation expert witnesses, for the
first bellwether trials. The first bellwether trial is expected to
start on 13 February 2023 in the California JCCP.
The
Illinois Supreme Court recently consolidated all Illinois
ranitidine cases in Cook County for pretrial proceedings with trial
dates to be set, including the previously scheduled Madison County
trial.
Given
the complex ownership and marketing of Zantac prescription and
over-the-counter (OTC) medicine over many years, numerous claims
involve several defendants. As a result, some defendants have
served one another, including GSK, with notice of potential
indemnification claims about possible liabilities connected
particularly with Zantac
OTC. Given the early 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.
Further
information regarding the litigation can be found in GSK’s 11
August 2022 and 16 August 2022 statements. These are available on
www.gsk.com.
|
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.
Accounting policies and basis of preparation
This
unaudited Results Announcement contains condensed financial
information for the three and nine months ended 30 September 2022, and should be read in
conjunction with the Annual Report 2021, 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
2021.
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 2021.
|
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 2021 were published
in the Annual Report 2021, 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.
COVID-19 pandemic
The potential impact of the COVID-19 pandemic on GSK’s
trading performance and all its principal risks is continually
assessed, with appropriate mitigation plans put in place on an
as-needed basis. GSK is encouraged by the uptake in demand in the
third quarter for its medicines and vaccines, particularly
Shingrix. The Company remains confident in the underlying
demand for its vaccines and medicines, given the number of COVID-19
vaccinations and boosters administered worldwide. However, the
pandemic remains a significant ongoing risk with new variants
constantly emerging. Current infections are predominantly driven by
the circulation of the BA.5 subvariant of Omicron, while COVID-19
vaccines are being updated with Omicron variants to provide broader
immunity against circulating and emerging variants. These
subvariants and future variants of concern could potentially impact
GSK’s trading results, clinical trials, supply continuity and
its employees materially.
|
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:
|
Net assets
|
The
book value of net assets decreased by £12,626 million from
£21,342 million at 31 December 2021 to £8,716 million at
30 September 2022. This primarily reflected the demerger of the
Consumer Healthcare business and adverse impact of exchange rate
movement on long term borrowings partially offset by Total profit
for the period.
The
retained stake in Haleon of £3,482 million is recognised as a
current equity investment.
The
carrying value of investments in associates and joint ventures at
30 September 2022 was £71 million (31 December 2021: £88
million), with a market value of £71 million (31 December
2021: £88 million).
At 30
September 2022, the net deficit on the Group’s pension plans
was £1,690 million compared with £1,129 million at 31
December 2021. This increase in the net deficit is primarily
related to lower asset values, increase in the UK inflation rate
(3.6% Q3 2022, 3.2% Q4 2021), the US cash balance credit rate (3.6%
Q3 2022, 2.0% Q4 2021), Eurozone inflation rates (2.2% Q3 2022;
2.1% Q4 2021) and an actuarial experience adjustment for higher
inflation than expected in pension increases of £600 million.
These are partially offset by increases in the long term UK
discount rate (5.2% Q3 2022, 2.0% Q4 2021), Eurozone discount rates
(3.4% Q3 2022, 1.3% Q4 2021), the US discount rate (5.5% Q3 2022,
2.7% Q4 2021) and cash contributions of £313 million made to
the UK pension schemes.
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 £1,209 million (31
December 2021: £1,008 million).
Contingent
consideration amounted to £7,327 million at 30 September 2022
(31 December 2021: £6,076 million), of which £6,139
million (31 December 2021: £5,559 million) represented the
estimated present value of amounts payable to Shionogi relating to
ViiV Healthcare, £538 million (31 December 2021: £nil)
represented the estimated present value of contingent consideration
payable to Affinivax and £632 million (31 December 2021:
£479 million) represented the estimated present value of
contingent consideration payable to Novartis related to the
Vaccines acquisition.
Of the
contingent consideration payable (on a post-tax basis) to Shionogi
at 30 September 2022, £931 million (31 December 2021:
£937 million) is expected to be paid within one
year.
|
Movements in contingent consideration are as follows:
|
9 months
2022
|
ViiV
Healthcare
£m
|
|
Group
£m
|
|
|
|
|
Contingent
consideration at beginning of the period
|
5,559
|
|
6,076
|
Remeasurement
through income statement and other movements
|
1,423
|
|
2,115
|
Cash
payments: operating cash flows
|
(774)
|
|
(789)
|
Cash
payments: investing activities
|
(69)
|
|
(75)
|
|
|
|
|
Contingent
consideration at end of the period
|
6,139
|
|
7,327
|
|
|
|
|
9 months 2021
|
ViiV
Healthcare
£m
|
|
Group
£m
|
|
|
|
|
Contingent
consideration at beginning of the period
|
5,359
|
|
5,869
|
Remeasurement
through income statement and other movements
|
498
|
|
574
|
Cash
payments: operating cash flows
|
(537)
|
|
(548)
|
Cash
payments: investing activities
|
(78)
|
|
(83)
|
|
|
|
|
Contingent
consideration at end of the period
|
5,242
|
|
5,812
|
|
|
|
|
Contingent liabilities
|
There
were contingent liabilities at 30 September 2022 in respect of
guarantees and indemnities 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 50 and on pages 248 and 249 of the Annual Report
2021.
|
Business acquisitions
|
On 1 July 2022, GSK completed the acquisition of 100% of Sierra
Oncology, Inc. a California-based, late-stage biopharmaceutical
company focused on targeted therapies for the treatment of rare
forms of cancer, for $1.9 billion (£1.6 billion). The main
asset is momelotinib which targets the medical needs of
myelofibrosis patients with anaemia. The initial acquisition accounting was reflected
in the third quarter of
2022, the values are
provisional and subject to change. The purchase price allocation is
expected to be completed by the end of Q4 2022.
On 15 August 2022, GSK completed the acquisition of 100% of
Affinivax, Inc. (Affinivax), a clinical-stage biopharmaceutical
company based in Cambridge, Boston, Massachusetts focused on
pneumococcal vaccine candidates. The consideration for the
acquisition comprised an upfront payment of $2.2 billion (£1.8
billion) as adjusted for working capital acquired paid upon closing
and two potential milestone payments of $0.6 billion (£0.5
billion) each to be paid upon the achievement of certain paediatric
clinical development milestones. The estimated fair value of the
contingent consideration payable was £487
million. The initial acquisition accounting was reflected in
the third quarter of 2022
on a preliminary basis, the
values below are provisional and subject to change. The purchase
price allocation is expected to be completed by the end of Q4
2022.
|
The
fair values of the net assets acquired, including goodwill, are as
follows:
|
|
Sierra
Oncology
£m
|
|
Affinivax
£m
|
|
|
|
|
Net
assets acquired:
|
|
|
|
Intangible
assets
|
1,486
|
|
2,097
|
Inventory
|
37
|
|
-
|
Other
net assets/(liabilities)
|
143
|
|
103
|
Deferred
tax liabilities
|
(291)
|
|
(524)
|
|
|
|
|
|
1,375
|
|
1,676
|
Goodwill
|
227
|
|
636
|
|
|
|
|
Total
consideration
|
1,602
|
|
2,312
|
Discontinued operations
|
Consumer
Healthcare has been presented as a discontinued operation from Q2
2022. The demerger of Haleon was completed on 18 July 2022.
Financial information relating to the operations of Consumer
Healthcare for the period until demerger on 18 July 2022 is set out
below. The Group Income Statement and Group Cash Flow Statement
distinguish discontinued operations from continuing operations.
Comparative figures have been restated on a consistent
basis.
This
financial information differs both in purpose and basis of
preparation from the Historical Financial Information and the
Interim Financial Information included in the Haleon prospectus and
from that which will be published by Haleon on 10 November 2022. As
a result, whilst the two sets of financial information are similar,
they are not the same because of certain differences in accounting
and disclosure under IFRS.
|
Total
Results
|
Q3 2022
£m
|
|
Q3
2021
£m
|
|
9 months
2022
£m
|
|
9
months
2021
£m
|
|
|
|
|
|
|
|
|
Turnover
|
466
|
|
2,450
|
|
5,581
|
|
6,967
|
Expenses
|
(454)
|
|
(1,894)
|
|
(4,725)
|
|
(5,527)
|
|
|
|
|
|
|
|
|
Profit
before tax
|
12
|
|
556
|
|
856
|
|
1,440
|
Taxation
|
(16)
|
|
(134)
|
|
(235)
|
|
(370)
|
Tax rate%
|
133.3%
|
|
24.3%
|
|
27.5%
|
|
25.8%
|
|
|
|
|
|
|
|
|
(Loss)/profit after
taxation from discontinued operations: Consumer Healthcare until 18
July 2022
|
(4)
|
|
422
|
|
621
|
|
1,070
|
|
|
|
|
|
|
|
|
Other
gains/(losses) from the demerger
|
2,351
|
|
-
|
|
2,351
|
|
-
|
Remeasurement of
discontinued operations
distributed
to shareholders on demerger
|
7,227
|
|
-
|
|
7,227
|
|
-
|
|
|
|
|
|
|
|
|
Profit
after taxation from discontinued operations
|
9,574
|
|
422
|
|
10,199
|
|
1,070
|
|
|
|
|
|
|
|
|
Non-controlling
interest in discontinued operations
|
18
|
|
131
|
|
205
|
|
324
|
Earnings
attributable to shareholders from
discontinued
operations
|
9,556
|
|
291
|
|
9,994
|
|
746
|
|
|
|
|
|
|
|
|
Earnings per share
from discontinued operations
|
237.1
|
|
7.3
|
|
248.4
|
|
18.6
|
|
|
|
|
|
|
|
|
The
loss after taxation from discontinued operations for Consumer
Healthcare of £4 million includes separation and transaction
costs of £59 million.
|
Divestments
On 18 July 2022, GSK plc separated its Consumer Healthcare business
from the GSK Group to form Haleon, an independent listed company.
The separation was effected by way of a demerger of 80.1% of
GSK’s 68% holding in the Consumer Healthcare business to GSK
shareholders. Following the demerger, 54.5% of Haleon was held in
aggregate by GSK Shareholders, 6.0% remains held by GSK (including
shares received by GSK’s consolidated ESOP trusts) and 7.5%
remains held by certain Scottish limited partnerships (SLPs) set up
to provide collateral for a funding mechanism pursuant to which GSK
will provide additional funding for GSK’s UK defined benefit
Pension Schemes. The aggregate ownership by GSK (including
ownership by the ESOP trusts and SLPs) after the demerger of 13.5%
is measured at fair value with changes through profit or loss.
Pfizer continues to hold 32% of Haleon after the
demerger.
Under IFRIC 17 ‘Distributions of
Non-cash Assets to Owners’ a liability and an equity distribution
are measured at the fair value of the assets to be distributed when
the dividend is appropriately authorised and it is no longer at the
entity’s discretion. The liability and equity movement, and
associated gain on distribution was recognised in Q3 2022 when the
demerger distribution was authorised and
occurred.
The asset distributed was the 54.5% ownership of the Consumer
Healthcare business. The net carrying value of the Consumer
Healthcare business in the consolidated financial statements,
including the retained 13.5% and net of the amount attributable to
the non-controlling interest, was approximately £11.5 billion
at the end of June. GSK’s £6.3 billion share of the
shareholder loans made in Q1 2022 in advance of the pre-separation
dividends was eliminated in the consolidated financial statements.
The assets distributed were reduced by Consumer Healthcare
transactions up to 18 July that principally included pre-separation
dividends declared and settled after the end of Q2 2022 and before
18 July 2022. Those dividends included: £10.4 billion
(£7.1 billion attributable to GSK) of dividends funded by
Consumer Healthcare debt that was partially on-lent during Q1 2022
and dividends of £0.6 billion (£0.4 billion attributable
to GSK) from available cash balances.
The fair value of the 54.5% ownership of the Consumer Healthcare
business distributed was £15.5 billion. This was measured by
reference to the quoted average Haleon share price over the first
five days of trading, this being a fair value measured with
observable inputs which is considered to be representative of the
fair value at the distribution date. A gain on distribution of this
fair value less book value of the attributable net assets of the
Consumer Healthcare business of £7.2 billion
was recorded in the Income
Statement in Q3 2022. There was an additional gain of
£2.4 billion to
remeasure the retained 13.5% from its book value to fair value of
£3.9 billion using the same fair value methodology as used for
the distributed shares. The gain on
distribution and on remeasurement of the retained stake upon
demerger is presented as part of discontinued operations. Any
future gains or losses on the retained stake in Haleon will be
recognised in adjusting items in continuing operations.
In addition, there was a
reclassification of the Group’s share of cumulative exchange
differences arising on translation of the foreign currency net
assets of the divested subsidiaries and offsetting net investment
hedges from reserves into the Income Statement of £0.6
billion. The total gain on the demerger of Consumer Healthcare was
£9.6 billion. These transactions are presented in profit from
discontinued operations (adjusting items) in Q3
2022.
|
|
Q3 2022
£bn
|
|
|
Fair
value of the Consumer Healthcare business distributed
(54.5%)
|
15.5
|
Fair
value of the retained ownership in Haleon (13.5%)
|
3.9
|
|
|
Total
fair value
|
19.4
|
|
|
Carrying
amount of the net assets and liabilities
distributed/derecognised
|
(13.4)
|
Carrying
amount of the non-controlling interest de-recognised
|
3.0
|
|
|
Gain on
demerger before exchange movements and transaction
costs
|
9.0
|
Reclassification
of exchange movements on disposal of overseas
subsidiaries
|
0.6
|
|
|
Total gain on the demerger of Consumer Healthcare
|
9.6
|
|
|
Total
transaction costs incurred in Q3 2022 were £50 million and
£102 million in the nine months 2022. These transaction costs
were incurred in connection with the demerger and preparatory
admission costs related to the listing of Haleon and are reported
as part of the profit from discontinued operations in the Total to
Adjusted presentation on page 30.
|
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. The consolidation
was approved by GSK shareholders at a General Meeting held on 6
July 2022. Shareholders received 4 new Ordinary shares with a
nominal value of 31¼ pence each for every 5 existing Ordinary
share 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.
|
Post Balance Sheet Event: Pensions and other post-employment
benefits
Scottish
limited partnerships (“SLPs”) were established to
provide a funding mechanism for each of GSK’s UK defined
benefit pension schemes. The SLPs together hold shares representing
7.5% of the total issued share capital of Haleon.
Each
pension scheme, through its SLP interest, is entitled to receive a
distribution from that SLP in an amount equal to the net proceeds
of sales of Haleon shares, and to receive dividend income on Haleon
shares, until it has received an aggregate amount equal to an
agreed threshold (“Proceeds Threshold”). The Proceeds
Thresholds total £1,080 million (as increased by notional
interest on the remaining balance from time to time), and payment
of this amount would fully fund the cash funding or
“technical provisions” deficits in the three schemes
shown by the 31 December 2020 valuations. Once the Proceeds
Threshold has been reached the GSK-controlled General Partner of
each SLP is entitled to sell the remaining Haleon shares held by
the SLP and distribute the proceeds to GSK.
In
response to market volatility in the UK gilt markets, on 14 October
2022, GSK made voluntary cash contributions to two of the UK
defined benefit pension schemes totalling £334 million. These
cash contributions operated to reduce the principal amount
outstanding under the relevant pension scheme’s Proceeds
Thresholds. This is in
addition to cash contributions made previously of £32 million
in Q2 2022, £281 million in Q3 2022 and £88 million in
prior years. The total payments of £735 million contribute to
the Proceeds Thresholds currently leaving a principal amount of
£345 million outstanding to the UK pension
schemes.
Related party transactions
Details
of GSK’s related party transactions are disclosed on page 221
of our 2021 Account Report and Accounts.
|
Reconciliation of cash flow to movements in net
debt
|
|
9 months 2022
£m
|
|
9
months 2021
£m
|
|
|
|
|
Total
Net debt at beginning of the period
|
(19,838)
|
|
(20,780)
|
|
|
|
|
Increase/(decrease)
in cash and bank overdrafts
|
(7,629)
|
|
(2,571)
|
Increase/(decrease)
in liquid investments
|
-
|
|
(18)
|
Net
decrease in short-term loans
|
4,207
|
|
578
|
Net
decrease in long-term loans
|
9
|
|
1
|
Repayment
of lease liabilities
|
149
|
|
134
|
Debt of
subsidiary undertaking acquired
|
(20)
|
|
-
|
Exchange
adjustments
|
(2,376)
|
|
105
|
Other
non-cash movements
|
(119)
|
|
(72)
|
|
|
|
|
Decrease/(increase)
in net debt from continuing operations
|
(5,779)
|
|
(1,843)
|
Decrease/(increase)
in net debt from discontinued operations
|
7,181
|
|
532
|
|
|
|
|
Total
Net debt at end of the period
|
(18,436)
|
|
(22,091)
|
|
|
|
|
Net debt analysis
|
|
30 September
2022
£m
|
|
30
September
2021
£m
|
|
31
December
2021
£m
|
|
|
|
|
|
|
Liquid
investments
|
73
|
|
61
|
|
61
|
Cash
and cash equivalents
|
3,606
|
|
3,453
|
|
4,274
|
Short-term
borrowings
|
(2,793)
|
|
(4,869)
|
|
(3,601)
|
Long-term
borrowings
|
(19,322)
|
|
(20,736)
|
|
(20,572)
|
|
|
|
|
|
|
Total
Net debt at the end of the period
|
(18,436)
|
|
(22,091)
|
|
(19,838)
|
|
|
|
|
|
|
Free cash flow reconciliation from continuing
operations
|
|
Q3 2022
£m
|
|
9 months 2022
£m
|
|
9
months 2021
£m
|
|
|
|
|
|
|
Net
cash inflow from continuing operating activities
|
1,331
|
|
4,733
|
|
3,301
|
Purchase
of property, plant and equipment
|
(275)
|
|
(705)
|
|
(576)
|
Proceeds
from sale of property, plant and equipment
|
7
|
|
13
|
|
118
|
Purchase
of intangible assets
|
(205)
|
|
(802)
|
|
(1,531)
|
Proceeds
from disposals of intangible assets
|
113
|
|
126
|
|
358
|
Net
finance costs
|
(44)
|
|
(455)
|
|
(460)
|
Dividends
from joint ventures and associates
|
-
|
|
-
|
|
9
|
Contingent
consideration paid (reported in investing
activities)
|
(2)
|
|
(75)
|
|
(83)
|
Distributions
to non-controlling interests
|
(213)
|
|
(390)
|
|
(186)
|
Contributions
from non-controlling interests
|
-
|
|
8
|
|
7
|
|
|
|
|
|
|
Free
cash inflow from continuing operations
|
712
|
|
2,453
|
|
957
|
|
|
|
|
|
|
R&D commentary
|
Pipeline overview
|
Medicines
and vaccines in phase III development (including major lifecycle
innovation or under regulatory review)
|
19
|
Infectious Diseases (9)
|
|
●
|
Bexsero infants vaccine (US)
|
||
●
|
Covifenz
(Medicago) COVID-19
|
||
●
|
COVID-19
(Sanofi) vaccine candidate
|
||
●
|
SKYCovione
(SK) COVID-19
|
||
●
|
MenABCWY
(1st gen) vaccine candidate
|
||
●
|
Rotarix liquid (US) vaccine
|
||
●
|
RSV
older adult vaccine candidate
|
||
●
|
gepotidacin
(bacterial topoisomerase inhibitor) uUTI and GC
|
||
●
|
Xevudy (sotrovimab/VIR-7831) COVID-19
|
||
|
|
||
Oncology (5)
|
|||
●
|
Blenrep (anti-BCMA ADC) multiple myeloma
|
||
●
|
cobolimab
(anti-TIM-3) non-small cell lung cancer
|
||
●
|
Jemperli (anti-PD-1) 1L endometrial cancer
|
||
●
|
Zejula (PARP inhibitor) 1L ovarian, lung and breast
cancer
|
||
●
|
momelotinib
(JAK1, JAK2 and ACVR1 inhibitor) myelofibrosis with
anaemia
|
||
|
|
||
Immunology (3)
|
|||
●
|
latozinemab
(AL001, anti-sortilin) frontotemporal dementia
|
||
●
|
depemokimab
(long acting anti-IL5) severe eosinophilic asthma, eosinophilic
granulomatosis with polyangiitis, chronic rhinosinusitis with nasal
polyps, hyper-eosinophilic syndrome
|
||
●
|
Nucala chronic obstructive pulmonary disease
|
||
|
|
||
Opportunity driven (2)
|
|||
●
|
daprodustat
(HIF-PHI) anaemia of chronic kidney disease
|
||
●
|
linerixibat
(IBATi) cholestatic pruritus in primary biliary
cholangitis
|
||
Total
vaccines and medicines in all phases of clinical
development
|
65
|
|
|
Total
projects in clinical development (inclusive of all phases and
indications)
|
85
|
|
Our key growth assets by
therapy area
|
The following outlines several key vaccines and medicines by
therapy area that will help drive growth for GSK to meet its
outlooks and ambition for 2021-2026 and beyond.
|
Infectious Diseases
|
bepirovirsen (HBV ASO)
|
Bepirovirsen is a potential new treatment option for people with
chronic hepatitis B as either a monotherapy (B-Clear) or
combination therapy with both existing (B-Together) and novel
treatments to explore additional combinations in the future. In
June 2022, GSK announced promising interim results from the B-Clear
phase IIb trial showing that bepirovirsen reduced levels of
hepatitis B surface antigen (HBsAg) and hepatitis B virus (HBV) DNA
after 24 weeks’ treatment in people with chronic hepatitis B
(CHB). These data were presented in an oral late-breaker session at
the European Association for the Study of the Liver’s
International Liver Congress (ILC) in June 2022 in London, UK. The
final results from the trial will be presented at the American
Association for the Study of Liver Diseases (AASLD) Liver Meeting,
4-8 November 2022, and published in a peer-reviewed
journal.
A phase III trial evaluating bepirovirsen as a monotherapy for
people with CHB will start in the first half of 2023.
|
Key
trials for bepirovirsen:
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
B-Clear bepirovirsen monotherapy (chronic hepatitis B)
NCT04449029
|
IIb
|
A multi-centre, randomised, partial-blind parallel cohort trial to
assess the efficacy and safety of treatment with bepirovirsen in
participants with chronic hepatitis B virus
|
Trial start:
Q3 2020
|
Complete; interim results presented;
full data anticipated
H2 2022
|
B-Together bepirovirsen sequential combination therapy with
Peg-interferon phase II (chronic hepatitis B)
NCT04676724
|
II
|
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
|
Active, not recruiting
|
bepirovirsen sequential combination therapy with targeted
immunotherapy
(chronic hepatitis B)
NCT05276297
|
II
|
A trial on the safety, efficacy and immune response following
sequential treatment with an anti-sense oligonucleotide against
chronic hepatitis B (CHB) and chronic hepatitis B targeted
immunotherapy (CHB-TI) in CHB patients receiving nucleos(t)ide
analogue (NA) therapy
|
Trial start:
Q2 2022
|
Recruiting
|
gepotidacin (bacterial topoisomerase inhibitor)
|
Potential first in class novel antibiotic for the treatment of
uncomplicated urinary tract infections (uUTI) and
gonorrhoea.
|
Key
phase III trials for gepotidacin:
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
EAGLE-1 (uncomplicated urogenital gonorrhoea)
NCT04010539
|
III
|
A randomised, multi-centre, open-label trial in adolescent and
adult participants comparing the efficacy and safety of gepotidacin
to ceftriaxone plus azithromycin in the treatment of uncomplicated
urogenital gonorrhoea caused by Neisseria
gonorrhoeae
|
Trial start:
Q4 2019
|
Recruiting
|
EAGLE-2 (females with uUTI / acute cystitis)
NCT04020341
|
III
|
A randomised, multi-centre, parallel-group, double-blind,
double-dummy trial in adolescent and adult female participants
comparing the efficacy and safety of gepotidacin to nitrofurantoin
in the treatment of uncomplicated urinary tract infection (acute
cystitis)
|
Trial start:
Q4 2019
|
Recruiting
|
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
|
Recruiting
|
MenABCWY vaccine candidate
|
GSK is
developing two MenABCWY pentavalent (5-in-1) vaccines. The first
generation is in late-stage development and the second generation
is in an earlier stage. The goal is to prevent disease caused by
meningococcal bacteria serogroups A, B, C, W, and Y.
|
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
|
Active, not recruiting
|
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
|
Active, not recruiting
|
RSV vaccine candidates
|
In
October, GSK shared positive pivotal phase III trial results for
its respiratory syncytial virus (RSV) older adult vaccine
candidate. The vaccine candidate was highly efficacious,
demonstrating overall vaccine efficacy of 82.6% (96.95% CI,
57.9–94.1, 7 of 12,466 vs. 40 of 12,494) against RSV lower
respiratory tract disease (RSV-LRTD), meeting the trial’s
primary endpoint.
Consistent
high vaccine efficacy was also observed across a range of
pre-specified secondary endpoints, highlighting the impact the
vaccine could have on populations most at risk of the severe
outcomes of RSV. Efficacy against severe RSV-LRTD was 94.1% (95%
CI, 62.4–99.9, 1 of 12,466 vs. 17 of 12,494). In participants
with pre-existing comorbidities, such as underlying
cardiorespiratory and endocrinometabolic conditions, vaccine
efficacy was 94.6% (95% CI, 65.9–99.9, 1 of 4,937 vs. 18 of
4,861). In adults aged 70-79 years, vaccine efficacy was 93.8% (95%
CI, 60.2-99.9, 1 of 4,487 vs. 16 of 4,487). The vaccine was well
tolerated with a favourable safety profile. The full data was
presented as part of ID Week 2022.
Additionally,
GSK’s RSV older adult vaccine candidate was accepted for
regulatory review by the US Food and Drug Administration (FDA), the
European Medicines Agency (EMA) and the Japanese Ministry of
Health, Labour and Welfare (MHLW). The FDA has granted a Priority
Review with a target review date of 3 May 2023.
|
Key
phase III trials for RSV older adult and maternal vaccine
candidates:
|
HIV
|
cabotegravir
|
In July 2022, ViiV Healthcare presented new efficacy and safety
findings from the unblinded period of the HIV Prevention Trials
Network (HPTN) 084 trial evaluating cabotegravir long-acting (LA)
for pre-exposure prophylaxis (PrEP) in women in sub-Saharan Africa,
at the 24th International AIDS Conference (AIDS 2022) in Montreal,
Canada. The findings showed that cabotegravir LA for PrEP continued
to demonstrate superior efficacy in the prevention of new HIV
infections among women when compared to daily oral
emtricitabine/tenofovir disoproxil fumarate (FTC/TDF) tablets, with
an 89% lower rate of HIV acquisition (HR 0.11, 95% CI 0.05,
0.24).
Additionally,
ViiV and the Medicines Patent Pool (MPP) announced the signing of a
new voluntary licensing agreement for patents relating to
cabotegravir LA for HIV pre-exposure prophylaxis (PrEP) to help
enable access in least developed, low-income, lower middle-income
and Sub-Saharan African countries.
Following on from US approval in January, Apretude was approved in
Australia and Zimbabwe, marking the first regulatory approval in
Sub-Saharan Africa. In October, the EMA validated the
company’s marketing authorisation application (MAA) seeking
approval of cabotegravir long-acting injectable for pre-exposure
prophylaxis (PrEP) to reduce the risk of sexually acquired
HIV-1.
|
Key
phase III trials for cabotegravir:
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
HPTN 083
(HIV uninfected cisgender men and transgender women who have sex
with men)
NCT02720094
|
IIb/III
|
A double-blind safety and efficacy trial of injectable cabotegravir
compared to daily oral tenofovir disoproxil fumarate/emtricitabine
(TDF/FTC), for Pre-Exposure Prophylaxis in HIV-uninfected cisgender
men and transgender women who have sex with men
|
Trial start:
Q4 2016
|
Active; not recruiting; primary endpoint met
(superiority)
|
HPTN 084
(HIV uninfected women who are at high risk of acquiring
HIV)
NCT03164564
|
III
|
A double-blind safety and efficacy trial of long-acting injectable
cabotegravir compared to daily oral TDF/FTC for Pre-Exposure
Prophylaxis in HIV-Uninfected women
|
Trial start:
Q4 2017
|
Active; not recruiting; primary endpoint met
(superiority)
|
ATLAS
NCT02951052
|
III
|
A randomised, multi-centre, parallel-group, non-inferiority,
open-label trial evaluating the efficacy, safety, and tolerability
of switching to long-acting cabotegravir plus long-acting
rilpivirine from current INI- NNRTI-, or PI-based antiretroviral
regimen in HIV-1-infected adults who are virologically
suppressed
|
Trial start:
Q4 2016
|
Active; not recruiting; primary endpoint met
(non-inferiority)
|
ATLAS-2M
NCT03299049
|
IIIb
|
A randomised, multi-centre, parallel-group, non-inferiority,
open-label trial evaluating the efficacy, safety, and tolerability
of long-acting cabotegravir plus long-acting rilpivirine
administered every 8 weeks or every 4 weeks in HIV-1-infected
adults who are virologically suppressed
|
Trial start:
Q4 2017
|
Active; not recruiting; primary endpoint met
(non-inferiority)
|
FLAIR
NCT02938520
|
III
|
A randomised, multi-centre, parallel-group, open-label trial
evaluating the efficacy, safety, and tolerability of long-acting
intramuscular cabotegravir and rilpivirine for maintenance of
virologic suppression following switch from an integrase inhibitor
single tablet regimen in HIV-1 infected antiretroviral therapy
naïve adult participants
|
Trial
start:
Q4
2016
|
Active; not recruiting; primary endpoint met
(non-inferiority)
|
Oncology
|
Blenrep
(belantamab mafodotin)
|
In
September 2022, SpringWorks Therapeutics announced an expanded
global, non-exclusive license and collaboration agreement with GSK
for nirogacestat, SpringWorks’ investigational oral gamma
secretase inhibitor, in combination with Blenrep. This new agreement expands the
original collaboration, to include the potential for continued
development and commercialization of nirogacestat and Blenrep in earlier lines of treatment
such as newly diagnosed multiple myeloma.
GSK is
on track to provide an update for DREAMM-3 before the end of the
year, and we anticipate data from DREAMM-7 and DREAMM-8 in the
second line setting in 2023.
|
Key
phase III trials for Blenrep:
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
DREAMM-3 (3L/4L+ MM pts who have failed Len + PI)
NCT04162210
|
III
|
An open-label, randomised trial to evaluate the efficacy and safety
of single-agent belantamab mafodotin compared to pomalidomide plus
low dose dexamethasone (pom/dex) in participants with
relapsed/refractory multiple myeloma
|
Trial start:
Q2 2020
|
Active, not recruiting
|
DREAMM-7 (2L+ MM pts)
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
|
Active, not recruiting
|
DREAMM-8 (2L+ MM pts)
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
|
Recruiting
|
Jemperli
(dostarlimab)
|
At the
European Society for Medical Oncology (ESMO) Congress 2022, which
took place 9-13 September, updated results from the GARNET trial
further demonstrated the potential of dostarlimab in the treatment
of advanced solid tumours. This includes a longer-term analysis
from cohorts A1 and F of the study, evaluating overall survival
(OS) and progression-free survival (PFS) in certain patients with
mismatch repair-deficient (dMMR) recurrent or advanced solid
tumours.
GSK
recently announced positive headline results of the PERLA phase II
trial, which met its primary endpoint of objective response rate
(ORR) by RECIST criteria as determined by blinded independent
central review. The trial evaluated dostarlimab in combination with
chemotherapy versus pembrolizumab in combination with chemotherapy
in first-line patients with metastatic non-squamous non-small cell
lung cancer (NSCLC). The PERLA phase II trial is a randomised,
double-blind trial of 243 patients and is the largest global
head-to-head trial of PD-1 inhibitors in this population. The trial
was not designed to demonstrate superiority.
Full
results from the PERLA phase II trial, including the primary
endpoint of ORR and the key secondary endpoint of progression-free
survival, with results by PD-L1 expression subgroups, will be
presented at an upcoming scientific meeting.
RUBY
phase III pivotal results are anticipated in the second half of
this year.
|
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
(TSR-042) 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
|
Active, not recruiting
|
PERLA (1L metastatic non-small cell lung cancer)
NCT04581824
|
II
|
A randomised, double-blind study 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
|
Active, not recruiting
|
GARNET
|
I/II
|
A multi-center, open-label, first-in-human study evaluating
dostarlimab (TSR-042) in participants with advanced solid tumors
who have limited available treatment options
|
Trial start:
Q1 2016
|
Active, recruiting
|
momelotinib (JAK1/2 and ACVR1/ALK2 inhibitor)
|
In
August 2022, GSK announced that the US FDA accepted the New Drug
Application (NDA) for momelotinib, a potential new medicine with a
proposed differentiated mechanism of action that may address the
significant medical needs of myelofibrosis patients with anaemia.
The US FDA has assigned a Prescription Drug User Fee Act action
date of 16 June 2023.
|
Key
phase III trials 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
|
Active, not recruiting; primary endpoint met
|
Zejula
(niraparib)
|
At ESMO, GSK announced long-term data from the phase III PRIMA
(ENGOT-OV26/GOG-3012) study showing Zejula (niraparib) maintained a sustained and clinically
meaningful progression-free survival (PFS) benefit as a maintenance
therapy in patients with first-line ovarian cancer following a
response to platinum-based chemotherapy. Importantly, this benefit
was sustained across all biomarker subgroups, including BRCAm, HRd
and HRp. Zejula’s safety profile remained consistent with
the primary analysis and no new safety signals were identified.
Long-term tolerability data on the individualised starting dose was
also presented.
|
Key
phase III trials for Zejula:
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
ZEAL-1L (maintenance for 1L advanced NSCLC)
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
|
Recruiting
|
ZEST (Her2- with BRCA-mutation, or TNBC)
NCT04915755
|
III
|
A randomised double-blinded trial comparing the efficacy and safety
of niraparib to placebo in participants with either HER2-negative
BRCA-mutated or triple-negative breast cancer with molecular
disease based on presence of circulating tumour DNA after
definitive therapy
|
Trial start:
Q2 2021
|
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
|
Active, not recruiting
|
Immunology
|
depemokimab (long-acting anti-IL5)
|
In Q3 2022, GSK began recruiting for a phase III programme in
eosinophilic granulomatosis with polyangiitis (EGPA) and progressed
trial site initiations for a programme in hyper-eosinophilic
syndrome (HES). Recruitment is ongoing across four potential
indications, also including severe eosinophilic asthma (SEA) and
chronic rhinosinusitis with nasal polyps (CRSwNP).
|
Key
phase III trials for depemokimab:
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
SWIFT-1 (severe eosinophilic asthma; SEA)
NCT04719832
|
III
|
A 52-week, randomised, double-blind, placebo-controlled,
parallel-group, multi-centre trial of the efficacy and safety of
depemokimab adjunctive therapy in adult and adolescent participants
with severe uncontrolled asthma with an eosinophilic
phenotype
|
Trial start:
Q1 2021
|
Recruiting
|
SWIFT-2 (SEA)
NCT04718103
|
III
|
A 52-week, randomised, double-blind, placebo-controlled,
parallel-group, multi-centre trial of the efficacy and safety of
depemokimab adjunctive therapy in adult and adolescent participants
with severe uncontrolled asthma with an eosinophilic
phenotype
|
Trial start:
Q1 2021
|
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
|
Recruiting
|
ANCHOR-1 (CRSwNP)
NCT05274750
|
III
|
Efficacy and safety of depemokimab in participants with
CRSwNP
|
Trial start:
Q2 2022
|
Recruiting
|
ANCHOR-2 (CRSwNP)
NCT05281523
|
III
|
Efficacy and safety of depemokimab in participants with
CRSwNP
|
Trial start:
Q2 2022
|
Recruiting
|
OCEAN (EGPA)
NCT05263934
|
III
|
Efficacy and safety of depemokimab compared with mepolizumab in
adults with relapsing or refractory EGPA
|
Trial start:
Q3 2022
|
Recruiting
|
DESTINY (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 site initiations underway
|
Recruiting
|
otilimab (anti-GM-CSF)
|
In
October, GSK provided an update on the ContRAst phase III programme
otilimab, an investigational anti-GM-CSF, in the potential
treatment of moderate to severe rheumatoid arthritis (RA).
ContRAst-1 and ContRAst-2 met their primary endpoints of a
statistically significant ACR20 response versus placebo at week 12
in patients with inadequate response to methotrexate (ContRAst-1)
and conventional synthetic or biologic disease modifying
antirheumatic drugs (DMARDs) (ContRAst-2). Data from ContRAst-3,
the third trial in the programme, did not demonstrate statistical
significance on the primary endpoint of ACR20 response versus
placebo at week 12 in patients with inadequate response to biologic
DMARDs and/or Janus Kinase inhibitors.
While
the ContRAst-1 and ContRAst-2 trials met their primary endpoints,
the efficacy demonstrated is unlikely to transform patient care for
this difficult-to-treat patient population. Assessment of efficacy
and safety data from the ContRAst programme is ongoing, however the
limited efficacy demonstrated does not support a suitable
benefit/risk profile for otilimab as a potential treatment for RA.
As a result, GSK has decided not to progress with regulatory
submissions. Full results from the ContRAst phase III programme
will be submitted for publication in 2023.
|
Key
phase III trials for otilimab:
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
contRAst-1
(Moderate to severe RA MTX-IR patients)
NCT03980483
|
III
|
A 52-week, multi-centre, randomised, double blind, efficacy, and
safety trial comparing otilimab with placebo and with tofacitinib,
in combination with methotrexate in participants with moderately to
severely active rheumatoid arthritis who have an inadequate
response to methotrexate
|
Trial start:
Q2 2019
|
Complete; primary endpoint met
|
contRAst-2 (Moderate to severe RA DMARD-IR patients)
NCT03970837
|
III
|
A 52-week, multi-centre, randomised, double blind, efficacy, and
safety trial, comparing otilimab with placebo and with tofacitinib
in combination with conventional synthetic DMARDs, in participants
with moderately to severely active rheumatoid arthritis who have an
inadequate response to conventional synthetic DMARDs or
biologic
|
Trial start:
Q2 2019
|
Trial activities concluding; primary endpoint met
|
contRAst-3 (Moderate to severe RA patients IR to biologic DMARD
and/or JAKs)
NCT04134728
|
III
|
A 24-week, multi-centre, randomised, double-blind, efficacy and
safety trial, comparing otilimab with placebo and with sarilumab,
in combination with conventional synthetic DMARDs, in participants
with moderately to severely active rheumatoid arthritis who have an
inadequate response to biological DMARDs and/or Janus Kinase
inhibitors
|
Trial start:
Q4 2019
|
Complete; primary endpoint not met
|
Opportunity driven
|
daprodustat (oral hypoxia-inducible factor prolyl hydroxylase
inhibitor)
|
On 26
October, GSK reported that the US FDA Cardiovascular and Renal
Drugs Advisory Committee (CRDAC) supported that the benefit of
treatment with daprodustat outweighs the risks for adult dialysis
patients with anaemia of chronic kidney disease (CKD) with a 13 to
3 vote. In adult non-dialysis patients with anaemia of CKD, the
CRDAC did not support that the benefit of treatment with
daprodustat outweighs the risks with a 5 to 11 vote. GSK will
continue to work with the US FDA as they complete their review of
our new drug application.
When
left untreated or undertreated, anaemia of CKD is associated with
poor clinical outcomes and leads to a substantial burden on
patients and healthcare systems. There remains an unmet need for
convenient treatment options with efficacy and safety comparable to
current treatments.
Key
phase III trials for daprodustat:
|
Trial name (population)
|
Phase
|
Design
|
Timeline
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Status
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ASCEND-D (Dialysis subjects with anaemia of CKD)
NCT02879305
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III
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A randomised, open-label (sponsor-blind), active-controlled,
parallel-group, multi-centre, event driven trial in dialysis
subjects with anaemia associated with chronic kidney disease to
evaluate the safety and efficacy of daprodustat compared to
recombinant human erythropoietin, following a switch from
erythropoietin-stimulating agents
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Reported
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Complete; primary endpoint met
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ASCEND-ID (Incident Dialysis subjects with anaemia of
CKD)
NCT03029208
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III
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A 52-week open-label (sponsor-blind), randomised,
active-controlled, parallel-group, multi-centre trial to evaluate
the efficacy and safety of daprodustat compared to recombinant
human erythropoietin in subjects with anaemia of chronic kidney
disease who are initiating dialysis
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Reported
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Complete; primary endpoint met
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ASCEND-TD (Dialysis subjects with anaemia of CKD)
NCT03400033
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III
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A randomised, double-blind, active-controlled, parallel-group,
multi-centre trial in haemodialysis participants with anaemia of
chronic kidney disease to evaluate the efficacy, safety, and
pharmacokinetics of three-times weekly dosing of daprodustat
compared to recombinant human erythropoietin, following a switch
from recombinant human erythropoietin or its analogues
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Reported
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Complete; primary endpoint met
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ASCEND-ND (Non-dialysis subjects with anaemia of CKD)
NCT02876835
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III
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A randomised, open-label (sponsor-blind), active-controlled,
parallel-group, multi-centre, event driven trial in non-dialysis
subjects with anaemia of chronic kidney disease to evaluate the
safety and efficacy of daprodustat compared to darbepoetin
alfa
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Reported
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Complete; primary endpoint met
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ASCEND-NHQ (Non-dialysis subjects with anaemia of CKD)
NCT03409107
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III
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A 28-week, randomised, double-blind, placebo-controlled,
parallel-group, multi-centre, trial in recombinant human
erythropoietin (rhEPO) naïve non-dialysis participants with
anaemia of chronic kidney disease to evaluate the efficacy, safety,
and effects on quality of life of daprodustat compared to
placebo
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Reported
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Complete; primary endpoint met
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Reporting definitions
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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 38 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 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 56.
Free cash flow
conversion
Free cash flow conversion is free
cash flow from continuing operations as a percentage of earnings
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.
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.
General
Medicines
General Medicines are usually
prescribed in the primary care or community settings by general
healthcare practitioners. For GSK, this includes medicines in
inhaled respiratory, dermatology, antibiotics and other
diseases.
Specialty
Medicines
Specialty Medicines are typically
prescription medicines used to treat complex or rare chronic
conditions. For GSK, this comprises medicines in infectious
diseases, HIV, oncology, immunology and
respiratory.
Stockpile
Borrow
The CDC stockpiles vaccines to
ensure availability for the US public during disease outbreaks. The
CDC, at their discretion, may propose that a manufacturer borrow
from the stockpile to ensure supply continuity in both the public
and private market and will align on a commitment to replenish the
stockpile at a point in the future with the manufacturer. At the
time of a borrow, sales to the CDC for the stockpile are reversed
and new sales are booked at the time of stockpile
replenishment.
Share
Consolidation
Shareholders received 4 new
Ordinary shares with a nominal value of 31¼ pence each for
every 5 existing Ordinary share 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.
|
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.
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Guidance, assumptions and cautionary
statements
|
2022 guidance
GSK now
expects 2022 sales to increase between 8 to 10 per cent and
Adjusted operating profit to increase between 15 to 17 per cent.
This guidance is provided at CER and excludes the commercial
benefit of COVID-19 solutions.
Assumptions related to 2022 guidance
In
outlining the guidance for 2022, the Group has made certain
assumptions about the healthcare sector, the different markets in
which the Group operates and the delivery of revenues and financial
benefits from its current portfolio, pipeline and restructuring
programmes. Reflecting the momentum of the business performance in
the year to date, GSK now expects 2022 sales to increase between 8
to 10 per cent and Adjusted operating profit to increase between 15
to 17 per cent, excluding any contributions from COVID-19
solutions. Adjusted Earnings per share is expected to grow around 1
per cent lower than Operating Profit. We have delivered a strong
nine-month performance ahead of our full-year guidance. In the
fourth quarter, we anticipate continued strong sales growth and
a relatively higher rate of R&D
spending, reflecting the dynamics of prior year comparisons,
in-year phasing, and continued targeted commercial
investment.
Notwithstanding
uncertain economic conditions across many markets in which we
operate, we continue to observe evidence of healthcare systems
recovering and now expect full-year sales of Specialty Medicines to
increase low double-digit percentage at CER excluding Xevudy sales and sales of General
Medicines to be broadly flat, primarily reflecting the increased
genericisation of established Respiratory medicines. Vaccines
sales, excluding COVID-19 solutions, are expected to grow mid to
high-teens percentage at CER for the full year. Specifically, for
Shingrix, we expect strong
double-digit growth and record annual sales in 2022, based on
strong demand in existing markets and continued geographical
expansion.
These
planning assumptions as well as operating profit guidance and
dividend expectations assume no material interruptions to supply of
the Group’s products, no material mergers, acquisitions or
disposals, no material litigation or investigation costs for the
Company (save for those that are already recognised or for which
provisions have been made) and no change in the Group’s
shareholdings in ViiV Healthcare. The assumptions also assume no
material changes in the healthcare environment or unexpected
significant changes in pricing as a result of government or
competitor action. The 2022 guidance factors in all divestments and
product exits announced to date.
The
Group’s guidance assumes successful delivery of the
Group’s integration and restructuring plans. Material costs for investment in new product
launches and R&D have been factored into the expectations
given. Given the potential development options in the Group’s
pipeline, the outlook may be affected by additional data-driven
R&D investment decisions. The guidance is given on a constant
currency basis.
Assumptions and cautionary statement regarding forward-looking
statements
The
Group’s management believes that the assumptions outlined
above are reasonable, and that the guidance, outlooks, ambitions
and expectations described in this report are achievable based on
those assumptions. However, given the forward-looking nature of
these guidance, outlooks, ambitions and expectations, they are
subject to greater uncertainty, including potential material
impacts if the above assumptions are not realised, and other
material impacts related to foreign exchange fluctuations,
macro-economic activity, the impact of outbreaks, epidemics or
pandemics, such as the COVID-19 pandemic and ongoing challenges and
uncertainties posed by the COVID-19 pandemic for businesses and
governments around the world, changes in legislation, regulation,
government actions or intellectual property protection, product
development and approvals, actions by our competitors, and other
risks inherent to the industries in which we operate.
This
document contains statements that are, or may be deemed to be,
“forward-looking statements”. Forward-looking
statements give the Group’s current expectations or forecasts
of future events. An investor can identify these statements by the
fact that they do not relate strictly to historical or current
facts. They use words such as ‘anticipate’,
‘estimate’, ‘expect’, ‘intend’,
‘will’, ‘project’, ‘plan’,
‘believe’, ‘target’ and other words and
terms of similar meaning in connection with any discussion of
future operating or financial performance. In particular, these
include statements relating to future actions, prospective products
or product approvals, future performance or results of current and
anticipated products, sales efforts, expenses, the outcome of
contingencies such as legal proceedings, dividend payments and
financial results. Other than in accordance with its legal or
regulatory obligations (including under the Market Abuse
Regulation, the UK Listing Rules and the Disclosure and
Transparency Rules of the Financial Conduct Authority), the Group
undertakes no obligation to update any forward-looking statements,
whether as a result of new information, future events or otherwise.
The reader should, however, consult any additional disclosures that
the Group may make in any documents which it publishes and/or files
with the SEC. All readers, wherever located, should take note of
these disclosures. Accordingly, no assurance can be given that any
particular expectation will be met and investors are cautioned not
to place undue reliance on the forward-looking
statements.
All outlooks, ambitions and expectations should be read together
with pages 5-7 of the Stock Exchange announcement relating to an
update to investors dated 23 June 2021, paragraph 19 of Part 7 of
the Circular to shareholders relating to the demerger of Haleon
dated 1 June 2022 and the Guidance, assumptions and cautionary
statements in this Q3 2022 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 2021 and any impacts of the COVID-19 pandemic. 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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Independent review
report to GSK plc
|
We have
been engaged by GSK plc (“the Company”) to review the
condensed financial information in the Results Announcement of the
Company for the three and nine months ended 30 September
2022.
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What we have reviewed
|
|
The
condensed financial information comprises:
|
|
●
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the
income statement and statement of comprehensive income for the
three and nine month periods ended 30 September 2022 on pages 40 to
41;
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●
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the
balance sheet as at 30 September 2022 on page 45;
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●
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the
statement of changes in equity for the nine month period then ended
on page 46;
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●
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the
cash flow statement for the nine month period then ended on page
47; and
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●
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the
accounting policies and basis of preparation and the explanatory
notes to the condensed financial information on pages 42 to 44 and
48 to 56 that have been prepared applying consistent accounting
policies to those applied by the Group in the Annual Report 2021,
which was prepared in accordance with International Financial
Reporting Standards (“IFRS”) as adopted by the United
Kingdom.
|
|
|
We have
read the other information contained in the Results Announcement,
including the non-IFRS measures contained on pages 42 to 44 and 48
to 56, and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the condensed set of financial information.
This
report is made solely to the Company in accordance with
International Standard on Review Engagements (UK and Ireland) 2410
“Review of Interim Financial Information Performed by the
Independent Auditor of the Entity” issued by the Financial
Reporting Council (ISRE (UK) 2410). Our work has been undertaken so
that we might state to the Company those matters we are required to
state to it in an independent review report and for no other
purpose. To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the Company, for our
review work, for this report, or for the conclusions we have
formed.
Directors’ responsibilities
The
Results Announcement of the Company, including the condensed
interim financial information, is the responsibility of, and has
been approved by, the directors. The directors are responsible for
preparing the Results Announcement of the Company in accordance
with the Disclosure Guidance and Transparency Rules of the United
Kingdom’s Financial Conduct Authority.
Our responsibility
Our
responsibility is to express to the Company a conclusion on the
condensed financial information in the Results Announcement based
on our review. Our conclusion, including our Conclusions Relating
to Going Concern, are based on procedures that are less extensive
than audit procedures, as described in the Scope of Review
paragraph of this report.
Conclusion Relating to Going Concern
Our
responsibility is to express to the Company a conclusion on the
condensed financial information in the Results Announcement based
on our review. Our conclusion, including our Conclusions Relating
to Going Concern, are based on procedures that are less extensive
than audit procedures, as described in the Scope of Review
paragraph of this report.
Scope of review
We
conducted our review in accordance with International Standard on
Review Engagements (UK and Ireland) 2410 “Review of Interim
Financial Information Performed by the Independent Auditor of the
Entity” issued by the Financial Reporting Council for use in
the United Kingdom (ISRE(UK)2410). A review of interim financial
information consists of making inquiries, primarily of persons
responsible for financial and accounting matters, and applying
analytical and other review procedures. A review is substantially
less in scope than an audit conducted in accordance with
International Standards on Auditing (UK) and consequently does not
enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit.
Accordingly, we do not express an audit opinion.
Conclusion
Based
on our review, nothing has come to our attention that causes us to
believe that the condensed financial information in the Results
Announcement for the three and nine months ended 30 September 2022
are not prepared, in all material respects, in accordance with the
accounting policies set out in the accounting policies and basis of
preparation section on page 51.
Deloitte LLP
Statutory
Auditor
London,
United Kingdom
2
November 2022
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GSK plc
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(Registrant)
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|
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Date:
November 2, 2022
|
|
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By:/s/ VICTORIA
WHYTE
--------------------------
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Victoria Whyte
|
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Authorised
Signatory for and on
|
|
behalf
of GSK plc
|
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