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