|
GSK delivers strong 2024
performance with further improvement to long-term growth
outlook
|
|
|
|
Strong sales and Core EPS growth
reflecting accelerating momentum in Specialty Medicines offsetting
lower Vaccine sales
|
|
|
Total 2024 sales £31.4 billion +3%
AER; +7% CER
|
|
|
Specialty Medicines sales +19%. HIV
sales +13%. Oncology +98%. Respiratory/Immunology and Other
+13%
|
|
|
Vaccines sales -4%.
Shingrix +1% and
Arexvy -51%
|
|
|
General Medicines sales +6%.
Trelegy +27%
|
|
•
|
Total operating profit -33% and
Total EPS -40% largely driven by £1.8 billion ($2.3 billion) charge
relating to settlement of Zantac
litigation
|
|
•
|
Core operating profit +11% (with
further positive impact of +2% ex COVID) and Core EPS +10% (with
further positive impact of +2% ex COVID) reflecting strong
Specialty Medicines performance and disciplined increased
investment in progressing the R&D portfolio
|
|
|
Cash generated from operations in
the year of £8 billion with Free cash flow of £3 billion
|
(Financial Performance - 2024
results unless otherwise stated, growth % and commentary at CER as
defined on page 50).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover ex COVID
|
31,364
|
|
4
|
|
8
|
|
8,106
|
|
1
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash generated from
operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Further progress in R&D with
growth prospects strengthened in all key therapeutic
areas:
|
|
|
71 Specialty Medicines and Vaccines
now in clinical development, including 19 in phase
III/registration
|
|
•
|
Excellent pipeline progress in 2024
with 13 positive phase III readouts across Respiratory, Immunology
& Inflammation; Oncology; HIV and Infectious
Diseases
|
|
•
|
Continued targeted business
development to support future growth: proposed acquisition of IDRx,
Inc. (GI cancers); acquisition of Aiolos Bio (asthma) and new
research alliance with Flagship Pioneering (Respiratory, Immunology
& Inflammation), plus strengthened platform capabilities
through acquisition of Elsie Biotechnologies
(oligonucleotides)
|
|
•
|
5 major new product approvals
expected in 2025 including: Blenrep
(multiple myeloma) and depemokimab (severe asthma
and CRSwNP(1));
plus phase III readouts: camlipixant (refractory chronic cough) and
tebipenem (complicated UTI); and important pipeline catalysts:
Respiratory (depemokimab COPD); Oncology (B7-H3 & B7-H4 ADCs);
HIV (ULA Q4/Q6M)
|
|
|
|
Increased returns to
shareholders
|
|
|
Q4 2024 dividend of 16p declared;
61p FY 2024; 64p expected for 2025
|
|
|
£2 billion share buyback programme
to be implemented over the next 18 months
|
|
|
|
2025 guidance and further
improvement to long-term outlooks
|
|
•
|
Expect 2025 turnover growth of
between 3% to 5%; Core operating profit growth of between 6% to 8%;
Core EPS growth of between 6% to 8%, including the expected benefit
from the share buyback programme
|
|
•
|
2031 sales outlook increased to more
than £40 billion (previously >£38 billion), reflecting
late-stage pipeline progress
|
Guidance all at CER
|
|
|
Emma Walmsley, Chief Executive
Officer, GSK:
"GSK delivered another year of
excellent performance in 2024, with strong sales and core profit
growth driven by accelerating momentum of our specialty medicines
portfolio. This, together with outstanding phase III pipeline
progress, means we expect another year of profitable growth in
2025, and have further improved our long-term outlook, with sales
of more than £40 billion now expected by 2031. In particular, we
are increasing and prioritising R&D investment to promising new
long-acting and specialty medicines in Respiratory, Immunology
& Inflammation, Oncology and HIV. Our outperformance and
stronger balance sheet support these investments and others planned
in R&D, as well as the opportunity to enhance shareholder
returns through our progressive dividend and the share buyback
programme which we have set out today."
|
The Total results are presented in
summary above and on page 7 and Core results reconciliations are
presented on pages 19, 20, 22 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 pages 50-51: 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 17. ll expectations, guidance and targets
regarding future performance and dividend payments should be read
together with 'Guidance and outlooks, assumptions and cautionary
statements' on page 52. (1) CRSwNP - Chronic rhinosinusitis with
nasal polyps.
2025 Guidance
GSK provides its full-year guidance
at constant exchange rates (CER).
|
|
Turnover is
expected to increase between 3 to 5 per cent
|
Core operating profit
is expected to increase between 6 to 8 per
cent
|
Core earnings per share
is expected to increase between 6 to 8 per
cent
|
This guidance is supported by the
following turnover expectations for full-year 2025 at
CER
|
|
|
|
|
|
|
expected increase of a low double-digit per cent in turnover
|
|
|
|
expected decrease of a low single-digit per cent in turnover
|
|
|
|
expected to be broadly stable for
turnover
|
Core operating profit is expected
to grow between 6 to 8 per cent at CER. GSK expects to deliver
leverage at a gross margin level due to improved product mix from
Specialty Medicines growth and continued operational efficiencies.
In addition, GSK anticipates further leverage in Operating profit
as we continue to take a returns-based approach to SG&A
investments. R&D is expected to increase broadly in line with
sales as we invest for future growth.
Core earnings per share is expected
to increase between 6 to 8 per cent at CER, in line with Core
operating profit growth, reflecting higher interest charges and the
tax rate which is expected to rise to around 17.5%, offset by the
expected benefit of up to 1% from the share buyback programme.
Expectations for non-controlling interests remain unchanged
relative to 2024.
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 has
declared a dividend for Q4 2024 of 16p per share and 61p per share
for the full year 2024. GSK's future dividend policy and guidance
regarding the expected dividend pay-out in 2025 are provided on
page 36.
GSK now intends to commence a £2
billion share buyback programme, to be implemented over the next 18
months.
COVID-19 solutions
For the full year 2025, GSK does
not anticipate any further COVID-19 pandemic-related sales or
operating profit. For the full year 2024, and in comparison to
2023, the full year growth in Sales and Core operating profit was
adversely impacted by one and two percentage points,
respectively.
2021-2026 and 2031
Outlooks
By 2031, GSK now expects to achieve
sales of more than £40 billion (previously >£38 billion) on a
risk-adjusted basis and at CER. This further increase reflects the
inclusion of Blenrep, the significant phase III progress since last year and
multiple launch opportunities in the 2025 to 2031
period.
As before, we have further upside
potential from our early-stage pipeline and prospective business
development.
There is no change to our Group
outlooks for 2021-2026. GSK continues to expect sales to grow more
than 7% on a CAGR basis and Core operating profit to increase more
than 11%, on the same basis. Core operating profit margin in 2026
continues to be expected to be more than 31%.
All expectations, guidance and
outlooks regarding future performance and dividend payments should
be read together with 'Guidance and outlooks, assumptions and
cautionary statements' on page 52.
These outlooks are provided at CER
and exclude any contribution from COVID-19 related
solutions.
Exchange rates
If exchange rates were to hold at
the closing rates on 29 January 2025 ($1.24/£1, €1.19/£1 and Yen
193/£1) for the rest of 2025, the estimated impact on 2025 Sterling
turnover growth for GSK would be +1% and if exchange gains or
losses were recognised at the same level as in 2024, the estimated
impact on 2025 Sterling Core Operating Profit growth for GSK would
be +2%.
Results presentation
A conference call and webcast for
investors and analysts of the quarterly results will be hosted by
Emma Walmsley, CEO, at 10.45 am GMT (US EST at 05.45 am) on
5 February 2025. 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
Q4 2024
|
|
|
£m
|
|
|
|
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vaccines ex COVID
|
9,138
|
|
(6)
|
|
(3)
|
|
2,212
|
|
(14)
|
|
(11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vaccines
|
9,138
|
|
(7)
|
|
(4)
|
|
2,212
|
|
(14)
|
|
(12)
|
|
HIV
|
7,089
|
|
10
|
|
13
|
|
1,969
|
|
11
|
|
14
|
Respiratory/Immunology and
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
Oncology
|
1,410
|
|
93
|
|
98
|
|
408
|
|
67
|
|
72
|
|
Specialty Medicines ex
COVID
|
11,798
|
|
16
|
|
19
|
|
3,287
|
|
14
|
|
18
|
|
Xevudy
|
12
|
|
(73)
|
|
(73)
|
|
11
|
|
(15)
|
|
(15)
|
|
Specialty Medicines
|
11,810
|
|
15
|
|
19
|
|
3,298
|
|
14
|
|
17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General Medicines
|
10,428
|
|
2
|
|
6
|
|
2,607
|
|
1
|
|
6
|
|
Total
|
31,376
|
|
3
|
|
7
|
|
8,117
|
|
1
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
31,376
|
|
3
|
|
7
|
|
8,117
|
|
1
|
|
4
|
|
Turnover ex COVID is excluding
COVID-19 solutions during the years from 2020 to 2023 and is a
non-IFRS measure defined on page 51 with the reconciliation to the
IFRS measure Turnover included in the table above. Financial
Performance - Q4 2024 results unless otherwise stated, growth % and
commentary at CER.
|
Vaccines sales decreased in the
year and quarter, primarily impacted by lower demand for
Arexvy related to a more
limited ACIP(1) recommendation in the US and channel inventory consumption
compared to launch year stocking in 2023. Meningitis vaccines had
their strongest year of sales to date with double-digit growth
across all regions and Established vaccines continued to grow
across International and the US. Overall, Vaccines performance was
also adversely impacted due to COVID-19 solution sales and US
CDC(2) stockpile
replenishments in 2023, each impacting full year growth by 1
percentage point.
Sales of Shingrix, a vaccine against shingles,
grew in the year with ex-US sales growth more than offsetting lower
sales in the US, but declined in the quarter.
The US cumulative immunisation rate
reached 40%, up five percentage points compared to 12 months
earlier(3). Sales
decreased by 18% in the full year and 13% in the quarter reflecting
the slowing pace of penetration of harder-to-reach unvaccinated
consumers, partially offset by favourable pricing. Full year
Shingrix sales were also
negatively impacted by changes in retail vaccine prioritisation
partly due to a transition to a new CMS(4) rule that changed how pharmacies
process reimbursements from payers.
Shingrix grew significantly in International in the year, driven by a
national immunisation programme in Australia and supply to our
co-promotion partner in China, but declined in the quarter
reflecting lower sales in China. In Europe, Shingrix grew in both the year and
quarter driven by expanded public funding and higher uptake across
multiple countries, partly offset by lower demand in Germany.
Markets outside the US represented 56% of 2024 global sales (2023:
45%), with Shingrix launched in 52 countries. The overwhelming majority of
ex-US Shingrix opportunity is concentrated in 10 markets where the average
immunisation rate is around 7% with significantly higher uptake in
funded cohorts.
Footnotes:
|
(1) Advisory Committee on
Immunization Practices (2) Centres for Disease Control and
Prevention (3) Based on data from IQVIA up until the end of
Q3 2024 (4) Centers for Medicare & Medicaid
Services
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
Q4 2024
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
Meningitis
|
1,437
|
14%
|
18%
|
|
295
|
8%
|
12%
|
In the year and the quarter,
Meningitis vaccines achieved double-digit growth.
Bexsero, a vaccine
against meningitis B, achieved sales of over £1 billion for the
first time. Growth was primarily due to favourable pricing mix and
increased full year purchases from the CDC in the US,
recommendation in Germany and launch in Vietnam. Meningitis vaccine
sales growth in the quarter was also impacted by a decline
in Menveo, a
vaccine against meningitis ACWY, related to US CDC stockpile
replenishment in Q4 2023.
|
|
|
|
|
|
|
|
|
|
|
590
|
(52%)
|
(51%)
|
|
158
|
(70%)
|
(69%)
|
Arexvy, a
RSV(1) vaccine for
older adults, declined both in the year and quarter. US sales
decreased due to lower demand partly related to a more limited
recommendation from ACIP for individuals aged 60 to 74. Full year
sales were also adversely impacted by channel inventory consumption
compared to the launch year stocking in 2023. Arexvy maintained the market leading
position in retail where the overwhelming majority of doses are
administered. More than ten million US adults(2) aged 60 and older at risk have
been protected by Arexvy
since the launch in Q3 2023.
In countries outside the US, growth
in the year reflected uptake following a positive recommendation in
Germany, initial tender deliveries in Saudi Arabia and new launch
inventory builds in Australia and Brazil, partly offset in the
quarter by lower demand in Canada. While Arexvy is approved in 59 markets
globally, 17 countries had national RSV vaccination recommendations
for older adults and 6, including the US, had reimbursement
programmes in place at the year end.
|
|
|
|
|
|
|
|
|
|
Influenza
|
408
|
(19%)
|
(16%)
|
|
105
|
11%
|
14%
|
Fluarix/FluLaval
sales decreased in the year driven by competitive
pressure and lower market demand primarily in the US, but grew in
the quarter due to pricing favourability as a result of channel
mix.
|
|
|
|
|
|
|
|
|
|
Established Vaccines
|
3,339
|
2%
|
6%
|
|
806
|
5%
|
8%
|
Established Vaccines grew in both
the year and quarter. This reflected increased sales of Hepatitis
vaccines across all regions, higher US market share and European
demand for Boostrix and increased International supply and US uptake of
MMR/V(3) vaccines.
This was partly offset by adverse CDC stockpile movements
for Rotarix and Infanrix/Pediarix. Established
Vaccine sales in 2024 included around £130 million of non-repeating
contracted sales including divested brands which have now
ceased.
|
|
|
|
|
|
|
|
|
|
|
Specialty Medicines
|
Total
|
11,810
|
15%
|
19%
|
|
3,298
|
14%
|
17%
|
|
Excluding COVID
|
11,798
|
16%
|
19%
|
|
3,287
|
14%
|
18%
|
Specialty Medicines sales grew by
double-digit percentages in the full year and in the quarter,
reflecting continued growth across disease areas, with strong
performances in HIV, Respiratory/Immunology and
Oncology.
|
|
|
|
|
|
|
|
|
|
HIV
|
7,089
|
10%
|
13%
|
|
1,969
|
11%
|
14%
|
HIV sales continue to grow
double-digits for the full year and the quarter, driven by strong
patient demand for long-acting injectable medicines
(Cabenuva, Apretude) and Dovato.
This demand primarily reflects a 2 percentage
point(4) increase
in market share compared to the prior period which contributed 10
percentage points of growth in 2024. The remainder of the full year
growth was driven by favourable in-year pricing, including the
positive impact from channel mix.
|
|
|
|
|
|
|
|
|
|
Oral 2DR
|
2,924
|
18%
|
21%
|
|
827
|
19%
|
23%
|
Sales of Oral 2DR
(Dovato, Juluca)
now represent 42% of the total HIV portfolio. Dovato, the first and only once-daily
oral 2DR for the treatment of HIV infection in both treatment naive
and virally suppressed adults and adolescents continues to be the
largest product in the HIV portfolio with sales of £2,239 million
in 2024 and growing 27% versus 2023.
|
|
|
|
|
|
|
|
|
|
Long-Acting Medicines
|
1,292
|
51%
|
55%
|
|
394
|
43%
|
47%
|
Long-Acting Injectable Medicine
sales in the quarter now represent 20% of the total HIV portfolio
compared to 16% for Q4 2023 and contributed over 50% of the total
HIV growth in 2024. Cabenuva,
the only complete long-acting injectable regimen
for HIV treatment reached sales of £1,013 million in 2024, growing
47% due to strong patient demand across US and Europe.
Apretude, the first
long-acting injectable option for HIV prevention delivered sales of
£279 million in 2024, growing 93% compared to 2023.
Footnotes:
|
(1) Respiratory syncytial
virus (2) Based on data from IQVIA (3) Measles, mumps,
rubella and varicella (4) DoT Volume Market Share - IQVIA,
GERS (France), Czech State Institute for Drug Control (SUKL), DLI
Market Intelligence (Denmark), farmINFORM (Netherlands), Cegedim
Healthcare (Romania).
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
Q4 2024
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
Respiratory/Immunology and
Other
|
3,299
|
9%
|
13%
|
|
910
|
5%
|
9%
|
Sales primarily comprise
contributions from Nucala
in respiratory and Benlysta in immunology. Double-digit
sales growth in the full year was delivered for both
Nucala and
Benlysta, driven by
patient demand globally across US, European and International
markets. Growth in the quarter was adversely impacted by channel
inventory build on both Nucala
and Benlysta
in the US in Q4 2023.
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). Double-digit sales growth for
the full year was driven particularly by strong performance in
Europe and International regions, reflecting higher patient demand
for treatments addressing eosinophilic-led disease. Growth in the
quarter was adversely impacted by the US from channel pricing
pressure and from channel inventory build in Q4 2023.
Benlysta,
a monoclonal antibody treatment for Lupus, continues to grow by
double-digit percentages in the full year representing strong
demand and volume growth in US, European and International regions,
with bio-penetration rates having increased across many markets.
Growth in the quarter continued at double-digits however was
slightly reduced by the impact of channel inventory build in the US
in Q4 2023.
|
|
|
|
|
|
|
|
|
|
Oncology
|
1,410
|
93%
|
98%
|
|
408
|
67%
|
72%
|
Strong Oncology sales growth
continued driven by increasing patient demand for
Zejula, a
PARP(1) inhibitor, Jemperli, a PD-1(2) blocking antibody, and
Ojjaara/Omjjara, a daily
JAK1/JAK2 and ACVR1(3) inhibitor.
|
|
|
|
|
|
|
|
|
|
|
593
|
13%
|
17%
|
|
143
|
(6%)
|
(3%)
|
Zejula, a
PARP inhibitor treatment for ovarian cancer, grew by double-digit
percentages for the full year, with strong growth delivered across
all regions with sustained increases in patient demand and higher
volumes, further enhanced by positive price impacts in the US.
Growth in the quarter was adversely impacted in the US due to
favourable price impacts in Q4 2023 as a result of channel mix
adjustments. This was partly offset by continued growth in the
quarter in Europe and International regions.
|
|
|
|
|
|
|
|
|
|
|
467
|
>100%
|
>100%
|
|
149
|
>100%
|
>100%
|
Jemperli,
a medicine for front-line treatment in combination with
chemotherapy for patients with primary advanced or recurrent
endometrial cancer, continued to grow strongly in the full year and
in the quarter. Strong sales in the quarter were driven largely by
increased patient uptake in the US, following Q3 2024 FDA approval
expanding the indication to include all adult patients with primary
advanced or recurrent endometrial cancer.
|
|
|
|
|
|
|
|
|
|
|
353
|
>100%
|
>100%
|
|
118
|
>100%
|
>100%
|
Ojjaara/Omjjara, a treatment for myelofibrosis patients with anaemia, grew
strongly in the full year and the quarter largely driven by the US
with continued uptake in patients since its product launch in Q3
2023. Sales in the quarter included increasing contributions from
Europe and International regions following launches in the UK and
Germany in Q1 2024, and in Japan in Q3 2024.
|
|
|
|
|
|
|
|
|
|
General Medicines
|
10,428
|
2%
|
6%
|
|
2,607
|
1%
|
6%
|
Sales include contributions from
both the Respiratory and Other General Medicine portfolios. Sales
growth in the full year and the quarter was primarily driven
by Trelegy, a
COPD(4) and asthma
medicine, with strong demand across all regions. Performance was
adversely impacted by the removal of the AMP(5) 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
|
7,213
|
6%
|
10%
|
|
1,806
|
3%
|
7%
|
Sales growth in the full year and
in the quarter reflected Trelegy's
strong performance in all regions. 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.
Footnotes:
(1) PARP: a Poly ADP ribose
polymerase (2) PD-1: a programmed death receptor-1 blocking
antibody (3) JAK1/JAK2 and ACVR1: once a-day, oral JAK1/JAK2
and activin A receptor type 1 (ACVR1) inhibitor (4) Chronic
obstructive pulmonary disease (5) Average manufacturer
price
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
Q4 2024
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
|
|
|
|
|
|
|
|
Trelegy is
the most prescribed SITT(1)
treatment worldwide for COPD and asthma. Sales
grew 27% in the full year, driven largely by volume growth, whilst
also benefiting from favourable pricing. Strong volume growth
continued across all regions reflecting patient demand, SITT class
growth, and increased market share. Overall favourable pricing in
the full year was driven by US channel mix price adjustments in the
first six months of 2024, which moderated in the second half,
adversely impacting Q4 2024 performance.
Seretide/Advair
is a combination treatment used to treat asthma
and COPD. In the full year and in the quarter, sales decreased in
Europe and International reflecting continued generic erosion by
competitor products. This was partially offset by growth in the US
driven largely by favourable impacts from channel mix
adjustments.
Growth in the full year was flat,
with growth in antibiotics and dermatology in International markets
offset by global declines from continued generic competition across
the portfolio. Growth of 3% in the quarter was driven by
double-digit growth of the dermatology portfolio. The full year and
quarter declines at AER were driven by exchange movements in a
number of International markets.
By Region
|
|
|
|
|
|
|
|
|
|
|
US
|
Total
|
16,384
|
4%
|
6%
|
|
4,327
|
(1%)
|
1%
|
|
|
Excluding COVID
|
16,374
|
4%
|
6%
|
|
4,317
|
(1%)
|
1%
|
Vaccine sales decreased in both the
full year and the quarter primarily in Arexvy due to lower demand related to
a more limited ACIP recommendation and related channel inventory
consumption compared to the 2023 launch year stocking.
Shingrix also decreased
reflecting lower demand driven by the continued challenge of
activating harder-to-reach consumers.
Specialty Medicines double-digit
growth in the full year was driven by strong Oncology and HIV
performance, and continued growth in Nucala and Benlysta. In the quarter, strong
growth continued in Oncology and HIV, performance of
Nucala and
Benlysta was adversely
impacted by channel inventory build-up in Q4 2023.
General Medicine's growth in the
full year and the quarter was primarily driven by increased demand
for Trelegy, with
strong volume growth from higher patient demand and growth of the
SITT market as well as favourable price benefits. Performance
continues to be impacted following the removal of the AMP cap on
Medicaid drug prices, which particularly impacted
Advair, Flovent and Lamictal.
This was fully offset by the increased use of authorised generic
versions of Advair and Flovent,
providing access to medicines for patients.
|
|
|
|
|
|
|
|
|
|
|
Europe
|
Total
|
6,666
|
2%
|
4%
|
|
1,755
|
6%
|
10%
|
|
|
Excluding COVID
|
6,665
|
4%
|
6%
|
|
1,754
|
6%
|
10%
|
Vaccine sales grew in the year and
double-digit in the quarter. Shingrix growth was driven by
expanded public funding across several markets, partly offset by
lower demand in Germany. Bexsero
and Arexvy
sales increased following recommendations in
Germany.
Specialty Medicines sales grew by
double-digits in the full year and quarter due to continued strong
performance in Oncology, Benlysta
in immunology, and Nucala in respiratory including the
benefit from new indication launches. HIV growth for the full year
and the quarter continued at a high single digit
percentage.
General Medicines sales were
broadly stable in the full year and the quarter. Strong
double-digit growth for Trelegy
and Anoro
was offset by decreases across other general
medicine products.
|
|
|
|
|
|
|
|
|
|
|
International
|
Total
|
8,326
|
5%
|
11%
|
|
2,035
|
1%
|
8%
|
|
|
Excluding COVID
|
8,325
|
5%
|
12%
|
|
2,035
|
1%
|
8%
|
Vaccine sales grew strongly in the
year while declining in the quarter. In the year, growth was driven
by Shingrix related to the national immunisation program in Australia and
supply to our co-promotion partner in China together with strong
momentum in Meningitis vaccines and single-digit growth in
Established Vaccines sales. The quarter was adversely impacted by
lower Arexvy sales
in Canada and Shingrix sales in China.
Specialty Medicine's double-digit
growth in the full year and the quarter was driven by HIV,
Nucala in
Respiratory, Benlysta in Immunology, and Oncology.
General Medicines sales growth in
the full year and the quarter, with strong growth in
Trelegy, Augmentin and dermatology products,
partially offset by a decrease in other general medicine
products.
Footnote:
(1) Single inhaler triple
therapy
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
Q4 2024
|
|
|
£m
|
|
% AER
|
|
% CER
|
|
£m
|
|
% AER
|
|
% CER
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
(9,048)
|
|
6
|
|
8
|
|
(2,559)
|
|
6
|
|
8
|
|
Selling, general and
administration
|
(11,015)
|
|
17
|
|
20
|
|
(2,663)
|
|
(1)
|
|
-
|
|
Research and development
|
(6,401)
|
|
3
|
|
5
|
|
(2,031)
|
|
(1)
|
|
1
|
|
Royalty income
|
639
|
|
(33)
|
|
(33)
|
|
176
|
|
(25)
|
|
(23)
|
|
Other operating
income/(expense)
|
(1,530)
|
|
|
|
|
|
(344)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
4,021
|
|
(40)
|
|
(33)
|
|
696
|
|
21
|
|
54
|
|
Net finance expense
|
(547)
|
|
(19)
|
|
(18)
|
|
(139)
|
|
(28)
|
|
(27)
|
|
Share of after tax profit/(loss) of
associates
and joint ventures
|
(3)
|
|
|
|
|
|
-
|
|
|
|
|
|
Profit/(loss) on disposal of
interest in
associates
|
6
|
|
|
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
3,477
|
|
(43)
|
|
(34)
|
|
563
|
|
49
|
|
97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
(526)
|
|
|
|
|
|
(62)
|
|
|
|
|
|
Tax rate %
|
15.1%
|
|
|
|
|
|
11.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation
|
2,951
|
|
(44)
|
|
(36)
|
|
501
|
|
26
|
|
65
|
|
Profit attributable to
non-controlling interests
|
376
|
|
|
|
|
|
87
|
|
|
|
|
|
Profit/(loss) attributable to
shareholders
|
2,575
|
|
|
|
|
|
414
|
|
|
|
|
|
|
2,951
|
|
(44)
|
|
(36)
|
|
501
|
|
26
|
|
65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
63.2p
|
|
(48)
|
|
(40)
|
|
10.1p
|
|
18
|
|
60
|
|
Financial Performance - Q4 2024
results unless otherwise stated, growth % and commentary at
CER.
|
|
|
|
Core results
Reconciliations between Total
results and Core results for Full Year 2024, Full Year 2023, Q4
2024 and Q4 2023 are set out on pages 19, 20, 22 and 23.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
Q4 2024
|
|
|
£m
|
|
% AER
|
|
% CER
|
|
£m
|
|
% AER
|
|
% CER
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
31,376
|
|
3
|
|
7
|
|
8,117
|
|
1
|
|
4
|
|
Cost of sales
|
(7,870)
|
|
2
|
|
4
|
|
(2,339)
|
|
8
|
|
11
|
|
Selling, general and
administration
|
(8,974)
|
|
(1)
|
|
2
|
|
(2,702)
|
|
4
|
|
6
|
|
Research and development
|
(6,023)
|
|
5
|
|
7
|
|
(1,821)
|
|
2
|
|
4
|
|
Royalty income
|
639
|
|
(33)
|
|
(33)
|
|
176
|
|
(25)
|
|
(23)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core operating profit
|
9,148
|
|
4
|
|
11
|
|
1,431
|
|
(18)
|
|
(10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core profit before
taxation
|
8,613
|
|
6
|
|
13
|
|
1,293
|
|
(17)
|
|
(8)
|
|
Taxation
|
(1,462)
|
|
16
|
|
24
|
|
(174)
|
|
(26)
|
|
(17)
|
|
Tax rate %
|
17.0%
|
|
|
|
|
|
13.5%
|
|
|
|
|
|
Core profit after
taxation
|
7,151
|
|
4
|
|
11
|
|
1,119
|
|
(16)
|
|
(6)
|
|
Core profit attributable to
non-controlling
interests
|
654
|
|
|
|
|
|
173
|
|
|
|
|
|
Core profit attributable to
shareholders
|
6,497
|
|
|
|
|
|
946
|
|
|
|
|
|
|
7,151
|
|
4
|
|
11
|
|
1,119
|
|
(16)
|
|
(6)
|
|
Core Earnings per share
|
159.3p
|
|
3
|
|
10
|
|
23.2p
|
|
(20)
|
|
(10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
Q4 2024
|
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
Cost of sales
|
Total
|
9,048
|
6%
|
8%
|
|
2,559
|
6%
|
8%
|
|
% of sales
|
28.8%
|
0.6%
|
0.2%
|
|
31.5%
|
1.5%
|
1.1%
|
|
Core
|
7,870
|
2%
|
4%
|
|
2,339
|
8%
|
11%
|
|
% of sales
|
25.1%
|
(0.4%)
|
(0.7%)
|
|
28.8%
|
2.0%
|
1.7%
|
Full year 2024 Total and Core cost
of sales as a percentage of sales benefited from price and channel
mix benefits, as well as ongoing mix benefits in higher margin
Specialty Medicines products, and supply chain efficiencies. These
benefits were offset in the year and more than offset in the
quarter by charges of £150 million to drive
future supply chain efficiencies. Full year Total cost of sales
also increased due to additional amortisation for
Zejula and
Jemperli.
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
Q4 2024
|
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
Selling, general &
administration
|
Total
|
11,015
|
17%
|
20%
|
|
2,663
|
(1%)
|
-%
|
|
% of sales
|
35.1%
|
4.2%
|
3.8%
|
|
32.8%
|
(0.5%)
|
(1.5%)
|
|
Core
|
8,974
|
(1%)
|
2%
|
|
2,702
|
4%
|
6%
|
|
% of sales
|
28.6%
|
(1.2%)
|
(1.3%)
|
|
33.3%
|
1.1%
|
0.5%
|
Total SG&A growth in the full
year was primarily driven by the increase in Significant legal
costs reflecting the charge of £1.8 billion ($2.3 billion) in Q3
2024 in relation to Zantac
for the State Courts Settlement, the
Qui Tam Settlement, and
the remaining 7% of pending state court product liability cases,
partially offset by reduced future legal costs. Since that time,
the vast majority of the remaining state court cases have been
resolved or been dismissed such that less than 1% of the state
court cases remain (see details on page 35). In the quarter, Total
SG&A spend was in line with Q4 2023.
Core SG&A growth in the full
year was driven by continued disciplined investment to support
global market expansion and disease awareness for key assets
including Arexvy, Nucala, Shingrix
and Jemperli, and investment behind
long-acting HIV medicines, with the phasing of this investment
weighted more in Q4 2024. 2024 growth was partly offset by a 1
percentage point favourable impact of the reversal of the legal
provision taken in Q1 2023 for the Zejula royalty dispute, following a
successful appeal.
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
Q4 2024
|
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
Research &
development
|
Total
|
6,401
|
3%
|
5%
|
|
2,031
|
(1%)
|
1%
|
|
% of sales
|
20.4%
|
(0.1%)
|
(0.4%)
|
|
25.0%
|
(0.4%)
|
(0.8%)
|
|
Core
|
6,023
|
5%
|
7%
|
|
1,821
|
2%
|
4%
|
|
% of sales
|
19.2%
|
0.2%
|
-%
|
|
22.4%
|
0.3%
|
-%
|
Total R&D growth in the full
year and the quarter was driven by an increase in Core R&D
investment, partly offset by lower impairment charges compared with
the full year 2023 and Q4 2023.
Core R&D investment increased
in the full year and the quarter driven by progression across the
portfolio.
In Specialty Medicines, investment
increased in Respiratory, Immunology and Inflammation to support
late-stage clinical development programmes for camlipixant
(refractory chronic cough), the long acting TSLP asset acquired
from the Aiolos Bio, Inc. (Aiolos) acquisition, bepirovirsen
(chronic hepatitis B) and Benlysta
(autoimmune diseases), with ongoing strong
investment in depemokimab (asthma and eosinophilic
inflammation).
In Oncology, increased investment
reflected acceleration on antibody-drug-conjugates (ADCs) including
those acquired from Hansoh Pharma at the end of 2023, and studies
into Blenrep (multiple myeloma) and Jemperli (endometrial cancer). In HIV
investment increased on next-generation long-acting treatment and
preventative medicines.
In Vaccines, clinical trial
programmes associated with the pneumococcal Multi Antigen
Presenting System (MAPS) and mRNA continued to drive
investment.
These increases were partly offset
by reductions following the launches of Arexvy and Ojjaara, and progression to
completion of gepotidacin and Zejula studies.
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
Q4 2024
|
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
Royalty income
|
Total
|
639
|
(33%)
|
(33%)
|
|
176
|
(25%)
|
(23%)
|
|
|
Core
|
639
|
(33%)
|
(33%)
|
|
176
|
(25%)
|
(23%)
|
The decrease in Total and Core
royalty income in the full year and Q4 2024 primarily reflected the
cessation of the majority of Gardasil royalties at the end of 2023,
with 2024 Gardasil royalties of £42 million (2023: £472
million).
This was partly offset by increases
in Kesimpta and Biktarvy royalties.
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
Q4 2024
|
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
Other operating
income/(expense)
|
Total
|
(1,530)
|
>(100%)
|
>(100%)
|
|
(344)
|
40%
|
40%
|
The full year other operating
expense reflected a charge of £1,839 million (2023: £546 million)
principally arising from the remeasurement of contingent
consideration liabilities (CCL). This primarily reflected improved
longer term HIV prospects as well as smaller foreign currency
movements compared to 2023 and an increase in liability for the
Vaccines CCL. This was partly offset by higher other net income of
£287 million (2023: £200 million) as well as a fair value gain of
£22 million (2023: £17 million loss) on the retained stake in
Haleon plc (Haleon).
In Q4 2024 the other operating
expense reflected a charge of £417 million (Q4 2023: £430 million)
principally arising from CCL remeasurements primarily reflecting
foreign currency movements. In the quarter, there were no fair
value movements recorded for Haleon shares (Q4 2023: £172 million
loss) following the sale of the remaining shares in May 2024. Other
net income was higher compared to the same period last year at £73
million (Q4 2023: £31 million).
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
Q4 2024
|
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
Operating profit
|
Total
|
4,021
|
(40%)
|
(33%)
|
|
696
|
21%
|
54%
|
|
|
% of sales
|
12.8%
|
(9.4%)
|
(8.3%)
|
|
8.6%
|
1.5%
|
3.4%
|
|
|
Core
|
9,148
|
4%
|
11%
|
|
1,431
|
(18%)
|
(10%)
|
|
|
% of sales
|
29.2%
|
0.2%
|
0.9%
|
|
17.6%
|
(4.1%)
|
(2.9%)
|
Total operating profit margin was
lower in the full year primarily due to the charge of £1.8 billion
($2.3 billion) for the Zantac
settlement, higher CCL charges driven by improved
longer term HIV prospects and other remeasurements as well as
unfavourable foreign currency movements, additional amortisation
for Zejula and Jemperli, and minimal movements on Haleon shares (2023 fair value loss).
Total operating profit margin was higher in the quarter mainly due
to no fair value movements on Haleon shares (Q4 2023 fair value
loss) and higher other net income.
Core operating profit growth in the
full year benefited from strong Specialty Medicines sales
performance, with favourable product and regional mix. This was
partly offset by increased investment in R&D and growth assets,
and lower royalty income. 2024 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.
Lower Core operating profit in the
quarter primarily reflected charges to drive future supply chain
efficiencies, and increased investment in R&D and growth assets
as well as lower royalty income. The adverse impact of lower sales
of COVID-19 solutions had a two percentage points impact in the
full year on Core operating profit growth and a 0.4 percentage
point impact on Core operating profit margin. There was minimal
impact in the quarter.
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
Q4 2024
|
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
Net finance expense
|
Total
|
547
|
(19%)
|
(18%)
|
|
139
|
(28%)
|
(27%)
|
|
|
Core
|
532
|
(20%)
|
(19%)
|
|
138
|
(28%)
|
(27%)
|
The decrease in net finance costs
in the full year and Q4 2024 was mainly driven by lower interest on
short-term financing as a result of cash received from the disposal
of all Haleon shares, savings from maturing bonds, and higher
interest income on cash, partly offset by fair value movements on
net investment hedges. The full year comparator to 2023 also
benefitted from the net cost of bond buybacks completed in Q1
2023.
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
Q4 2024
|
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
Taxation
|
Total
|
526
|
(30%)
|
(19%)
|
|
62
|
>100
|
>100
|
|
|
Tax rate %
|
15.1%
|
|
|
|
11.0%
|
|
|
|
|
Core
|
1,462
|
16%
|
24%
|
|
174
|
(26%)
|
(17%)
|
|
|
Tax rate %
|
17.0%
|
|
|
|
13.5%
|
|
|
The effective tax rate on Total
results reflected the different tax effects of the various
Adjusting items included in Total results, including the impact of
the Zantac settlement.
The effective tax rate on Core
profits was in line with expectations for the year and included 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
Q4 2024
|
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
Non-controlling
interests ("NCIs")
|
Total
|
376
|
(1%)
|
8%
|
|
87
|
81%
|
>100%
|
|
Core
|
654
|
14%
|
20%
|
|
173
|
14%
|
20%
|
The increase in the full year Total
NCIs at CER was driven by higher ViiV Healthcare Total profits
(partly offset by a higher remeasurement loss on the CCL) as well
as higher net profits in some of the Group's other entities. ViiV
Healthcare Total profits were lower at AER, reflecting adverse
currency impacts, with an allocation of £356 million (2023: £374
million).
The increase in Total NCIs in the
quarter was primarily driven by higher ViiV Healthcare profits
including a lower remeasurement loss on the CCL, and higher net
profits in some of the Group's other entities.
The increase in Core NCIs in the
full year and Q4 2024 primarily reflected higher core profit
allocations from ViiV Healthcare, with £634 million in 2024 (2023:
£566 million) and £171 million in Q4 2024 (Q4 2023: £154 million),
as well as higher net profits in some of the Group's other entities
with NCIs.
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
Q4 2024
|
|
|
|
£p
|
AER
|
CER
|
|
£p
|
AER
|
CER
|
|
Earnings per share
|
Total
|
63.2p
|
(48%)
|
(40%)
|
|
10.1p
|
18%
|
60%
|
|
Core
|
159.3p
|
3%
|
10%
|
|
23.2p
|
(20%)
|
(10%)
|
The decrease in the full year Total
EPS was primarily due to a charge of £1.8 billion ($2.3 billion)
for the Zantac settlement (see details on page 35) and higher CCL charges.
The increase in the Q4 2024 Total EPS is driven by no fair value
movements on Haleon shares compared to a fair value loss of £172
million in Q4 2023.
The increase in the Core EPS in the
full year primarily reflected the growth in Core operating profit
as well as lower finance costs, partly offset by a higher effective
taxation rate and higher non-controlling interests. The decrease in
the Q4 2024 Core EPS is driven by lower Core operating profit and
higher non-controlling interests, partly offset by lower finance
costs and a lower effective taxation rate. Lower sales of COVID-19
solutions reduced Core EPS by two percentage points in the full
year.
Currency impact on
results
The results for the year 2024 are
based on average exchange rates, principally US$1.28/£1, €1.18/£1
and Yen193/£1. The results for Q4 2024 are based on average
exchange rates, principally $1.27/£1, €1.20/£1 and Yen195/£1. The
period-end exchange rates were $1.25/£1, €1.20/£1 and Yen197/£1.
Comparative exchange rates are given on page 37.
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
Q4 2024
|
|
|
|
£m/£p
|
AER
|
CER
|
|
£m/£p
|
AER
|
CER
|
|
Turnover
|
|
31,376
|
3%
|
7%
|
|
8,117
|
1%
|
4%
|
|
Earnings per share
|
Total
|
63.2p
|
(48%)
|
(40%)
|
|
10.1p
|
18%
|
60%
|
|
Core
|
159.3p
|
3%
|
10%
|
|
23.2p
|
(20%)
|
(10%)
|
In the full year and Q4 2024, 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 negligible impact on Total and Core
EPS in the full year, and in the quarter the impact was eight
percentage points on Total EPS and three percentage points on Core
EPS.
|
|
|
|
|
|
|
|
|
|
Cash flow
|
|
|
2024
£m
|
|
2023
£m
|
|
Q4 2024
£m
|
|
Q4 2023
£m
|
|
Cash generated from operations
(£m)
|
7,861
|
|
8,096
|
|
2,586
|
|
3,681
|
|
Net cash generated from operating
activities (£m)
|
6,554
|
|
6,768
|
|
2,329
|
|
3,196
|
|
Free cash inflow/(outflow)*
(£m)
|
2,863
|
|
3,409
|
|
924
|
|
2,095
|
|
Free cash flow growth (%)
|
(16)%
|
|
2%
|
|
(56%)
|
|
>100%
|
|
Free cash flow conversion*
(%)
|
>100%
|
|
69%
|
|
>100%
|
|
>100%
|
|
Total net debt** (£m)
|
13,095
|
|
15,040
|
|
13,095
|
|
15,040
|
|
|
Free cash flow and free cash flow
conversion are defined on page 50. Free cash flow is analysed on
page 40.
|
|
|
Net debt is analysed on page
40.
|
2024
Cash generated from operating
activities was £7,861 million (2023: £8,096 million) and excluding
£672 million payments for the
Zantac settlement was
£8,533 million. The increase
excluding Zantac reflected higher Core operating profit, the benefit of Q4
2023 Arexvy receivables' collections in Q1 2024, and lower pension
contributions, partly offset by the timing impact from lower
returns and rebates, including the impact of the removal of the AMP
cap, and lower receivables at the end of the year.
Total contingent consideration cash
payments in 2024 were £1,254 million (2023:
£1,145 million). £1,235 million (2023:
£1,134 million) of these were recognised in cash flows from
operating activities, including cash payments made to Shionogi
& Co. Ltd (Shionogi) of £1,190 million (2023:
£1,106 million).
Free cash inflow was £2,863 million
for 2024 (2023: £3,409 million) and excluding payments for
the Zantac settlement was £3,535 million. The
increase excluding Zantac
was primarily driven by higher cash generated from
operating activities as well as lower net interest paid, partly
offset by higher capital expenditure on intangible assets including
the £342 million upfront payment to CureVac N.V.
Q4 2024
Cash generated from operations for
the quarter was £2,586 million (Q4 2023: £3,681 million). The
decrease primarily reflected £672 million payments related to
the Zantac settlement (£3,258 million
excluding Zantac settlement payments).
Total contingent consideration cash
payments in the quarter were £319 million (Q4 2023:
£285 million). £311 million (Q4 2023:
£281 million) of these were recognised in cash flows from
operating activities, including cash payments made to Shionogi of
£290 million (Q4 2023: £272 million).
Free cash inflow was £924 million
for the quarter (Q4 2023: £2,095 million) and excluding
payments for the Zantac
settlement was £1,596 million. The decrease is driven by lower cash generated from
operations and higher capital expenditure on intangible assets and
property, plant and equipment, partly offset by lower tax
payments.
Total Net debt
At 31 December 2024, net debt was
£13,095 million, compared with £15,040 million at 31 December 2023,
comprising gross debt of £16,986 million and cash and liquid
investments of £3,891 million. See net debt information on page
40.
Net debt decreased by £1,945
million primarily due to £2,863 million of free cash inflow and
£2,356 million proceeds from the disposal of investments, primarily
due to the sale of the remaining retained stake in Haleon. This was
partly offset by the net acquisition costs of Aiolos and Elsie
Biotechnologies of £805 million, and dividends paid to shareholders
of £2,444 million.
At 31 December 2024, GSK had
short-term borrowings (including overdrafts and lease liabilities)
repayable within 12 months of £2,349 million and £1,411 million
repayable in the subsequent year.
|
|
|
|
|
Page
|
|
Q4 2024 pipeline
highlights
|
13
|
|
Responsible business
|
15
|
|
Total and Core results
|
17
|
|
Income statement
|
25
|
|
Statement of comprehensive
income
|
26
|
|
Balance sheet
|
27
|
|
Statement of changes in
equity
|
28
|
|
Cash flow statement
|
29
|
|
Sales tables
|
30
|
|
Segment information
|
33
|
|
Legal matters
|
35
|
|
Returns to shareholders
|
36
|
|
Additional information
|
37
|
|
Net debt information
|
40
|
|
Post balance sheet event
|
41
|
|
Related party
transactions
|
41
|
|
R&D commentary
|
42
|
|
Reporting definitions
|
50
|
|
Guidance and outlooks, assumptions
and cautionary statements
|
52
|
|
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
|
Annabel Brownrigg-Gleeson
|
+44 (0) 7901 101944
|
(London)
|
|
|
James Dodwell
|
+44 (0) 7881 269066
|
(London)
|
|
|
Mick Readey
|
+44 (0) 7990 339653
|
(London)
|
|
|
Jeff McLaughlin
|
+1 215 589 3774
|
(Philadelphia)
|
|
|
|
|
|
|
Registered in England &
Wales:
No. 3888792
|
|
|
|
Registered
Office:
79 New Oxford Street
London,
WC1A 1DG
|
|
|
|
Q4 2024 pipeline highlights (since
30 October 2024)
|
|
|
|
|
|
|
|
Medicine/vaccine
|
Trial (indication,
presentation)
|
Event
|
|
Regulatory approvals or other
regulatory actions
|
Nucala
|
Chronic rhinosinusitis with nasal
polyps
|
Regulatory approval (CN)
|
|
Jemperli
|
RUBY part 1 (OS overall population,
1L endometrial cancer)
|
Regulatory approval (EU)
|
|
|
HIV infection,
adolescents
|
|
|
Arexvy
|
RSV, adults aged 50-59 years at
increased risk
|
Regulatory approval (JP)
|
|
|
Liquid formulation, meningitis
ACWY
|
|
|
Regulatory submissions or
acceptances
|
depemokimab
|
ANCHOR-1/2 (chronic rhinosinusitis
with nasal polyps
|
Regulatory acceptance
(EU, JP, CN)
|
|
depemokimab
|
SWIFT-1/2 (severe asthma)
|
Regulatory acceptance
(EU, JP, CN)
|
|
Nucala
|
MATINEE (chronic obstructive
pulmonary disease)
|
Regulatory acceptance
(US)
|
|
|
DREAMM-7/8 (2L+ multiple
myeloma)
|
Regulatory acceptance
(US)
|
|
Blenrep
|
DREAMM-7 (2L+ multiple
myeloma)
|
Regulatory acceptance (CN) with
Priority Review
|
|
Shingrix
|
Liquid formulation,
shingles
|
Regulatory acceptance
(US, EU)
|
|
Phase III data readouts or other
significant events
|
Blenrep
|
DREAMM-7 (2L+ multiple
myeloma)
|
Further positive phase III data
readout
|
|
linerixibat
|
GLISTEN (cholestatic pruritus in
primary biliary cholangitis)
|
Positive phase III data
reported
|
|
Zejula
|
FIRST (1L maintenance ovarian
cancer)
|
Positive phase III data
readout
|
|
Regulatory designations and other
significant events
|
Jemperli
|
Locally advanced dMMR/MSI-H rectal
cancer
|
Breakthrough Designation
(US)
|
|
GSK5764227 (B7-H3-targeted
antibody-drug conjugate)
|
Extensive-stage small-cell lung
cancer
|
Priority Medicines (PRIME) granted
(EU)
|
|
GSK5764227 (B7-H3-targeted
antibody-drug conjugate)
|
Relapsed or refractory
osteosarcoma
|
Breakthrough Designation
(US)
|
|
|
|
|
|
|
|
|
|
|
|
Timing
|
Medicine/vaccine
|
Trial (indication,
presentation)
|
Event
|
|
H1 2025
|
depemokimab
|
SWIFT-1/2 (severe asthma)
|
Regulatory submission
(US)
|
|
depemokimab
|
ANCHOR-1/2 (chronic rhinosinusitis
with nasal polyps)
|
Regulatory submission
(US)
|
|
|
|
|
|
linerixibat
|
GLISTEN (cholestatic pruritus in
primary biliary cholangitis)
|
Regulatory submission
(US, EU, CN)
|
|
Nucala
|
MATINEE (chronic obstructive
pulmonary disease)
|
Regulatory decision (US)
|
|
Nucala
|
MATINEE (chronic obstructive
pulmonary disease)
|
Regulatory submission
(CN, EU)
|
|
Blenrep
|
DREAMM-7/8 (2L+ multiple
myeloma)
|
Regulatory decision (JP)
|
|
cobolimab
|
COSTAR (non-small cell lung
cancer)
|
Phase III data readout
|
|
Zejula
|
ZEAL (1L maintenance non-small cell
lung cancer)
|
Phase III data readout
|
|
gepotidacin
|
EAGLE-2/3 (uncomplicated urinary
tract infection)
|
Regulatory decision (US)
|
|
|
EAGLE-1 (urogenital
gonorrhoea)
|
Regulatory submission
(US)
|
MenABCWY (gen 1) vaccine
candidate
|
Meningococcal ABCWY
|
Regulatory decision (US)
|
|
|
Shingles, adults aged 18+
years
|
|
|
|
Shingles, liquid
formulation
|
|
|
Anticipated news flow
continued
|
|
|
|
|
|
|
Timing
|
Medicine/vaccine
|
Trial (indication,
presentation)
|
Event
|
|
H2 2025
|
|
CALM-1/2 (refractory chronic
cough)
|
|
|
|
SWIFT-1/2 (severe asthma)
|
|
|
depemokimab
|
ANCHOR-1/2 (chronic rhinosinusitis
with nasal polyps)
|
Regulatory decision (US)
|
|
|
|
|
|
linerixibat
|
GLISTEN (cholestatic pruritus in
primary biliary cholangitis)
|
Regulatory decision (US)
|
|
linerixibat
|
GLISTEN (cholestatic pruritus in
primary biliary cholangitis)
|
Regulatory submission
(JP)
|
|
|
|
|
|
|
|
Regulatory submission
(EU)
|
|
|
DREAMM-7/8 (2L+ multiple
myeloma)
|
Regulatory decision (US,
EU)
|
|
|
DREAMM-8 (2L + multiple
myeloma)
|
Regulatory submission
(CN)
|
|
cobolimab
|
COSTAR, (2L non-small cell lung
cancer)
|
Regulatory submission
(US, EU)
|
|
Arexvy
|
RSV, adults aged 18-49 years at
increased risk, 18+ immunocompromised
|
Regulatory submission
(US, EU, JP)
|
|
|
Meningococcal B (infants)
|
|
|
|
Meningococcal B (infants)
|
Regulatory submission
(US)
|
|
|
EAGLE-1 (urogenital
gonorrhoea)
|
|
|
tebipenem pivoxil
|
PIVOT-PO (complicated urinary tract
infection)
|
Phase III data readout
|
|
tebipenem pivoxil
|
PIVOT-PO (complicated urinary tract
infection)
|
Regulatory submission
(US)
|
|
2026
|
|
CALM-1/2 (refractory chronic
cough)
|
|
|
camlipixant
|
CALM-1/2 (refractory chronic
cough)
|
Regulatory submission
(US, EU)
|
|
depemokimab
|
OCEAN (Eosinophilic granulomatosis
with polyangiitis)
|
Phase III data read out
|
|
depemokimab
|
OCEAN (Eosinophilic granulomatosis
with polyangiitis)
|
Regulatory submission
(US, EU, CN, JP)
|
|
depemokimab
|
SWIFT-1/2 (severe asthma)
|
Regulatory decision
(EU, CN, JP)
|
|
depemokimab
|
ANCHOR-1/2 (chronic rhinosinusitis
with nasal polyps)
|
Regulatory decision
(EU, CN, JP)
|
|
|
INFRONT-3 (frontotemporal
dementia)
|
|
|
latozinemab
|
INFRONT-3 (frontotemporal
dementia)
|
Regulatory submission
(US, EU)
|
|
linerixibat
|
GLISTEN (cholestatic pruritus in
primary biliary cholangitis)
|
Regulatory decision
(EU, CN, JP)
|
|
Nucala
|
MATINEE (chronic obstructive
pulmonary disease)
|
Regulatory decision (EU,
CN)
|
|
|
|
|
|
|
DREAMM-7/8 (2L+ multiple
myeloma)
|
|
|
cobolimab
|
COSTAR (2L non-small cell lung
cancer)
|
Regulatory decision (US,
EU)
|
|
|
|
Phase II (pivotal) data read
out
|
|
|
|
Phase II (pivotal) data read
out
|
|
|
|
Regulatory submission
(US)
|
|
|
|
|
|
Arexvy
|
RSV, adults aged 18-49 years at
increased risk and 18+ immunocompromised
|
Regulatory decision
(US, EU, JP)
|
|
|
B-WELL 1/2 (hepatitis B
virus)
|
|
|
bepirovirsen
|
B-WELL 1/2 (hepatitis B
virus)
|
Regulatory submission
(US, EU, CN, JP)
|
|
|
B-WELL 1/2 (hepatitis B
virus)
|
Regulatory decision (US,
JP)
|
|
|
Meningococcal B (infants)
|
|
|
tebipenem pivoxil
|
PIVOT-PO (complicated urinary tract
infection)
|
Regulatory decision (US)
|
|
|
|
|
|
|
|
Refer to pages 42 to 49 for further details on several key medicines and
vaccines in development by therapy area.
|
Trust: progress in 2024 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 previously identified six areas that address
what is most material to GSK's business and the issues that matter
the most to its stakeholders. Highlights below include activity
since Q3 2024 results. For more details on
annual updates, please see GSK's ESG
Performance Report 2023(1).
GSK remains committed to abiding by
the laws in all jurisdictions in which we operate, including
anti-discrimination laws. We make changes as necessary as law and
policy evolves.
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 Q3 2024:
|
|
|
|
•
|
GSK ranked second in the ninth
iteration of the Access to Medicine Index (ATMI), as one of two
leading companies. This means GSK has placed first or second in the
Index since its inception in 2008. The Index is an independent,
investor-backed report that ranks 20 of the world's largest
pharmaceutical companies on progress to improve access at scale in
113 lower income countries and focuses on 81 high burden priority
diseases. GSK continues to show strong
leadership in its Access to Medicines Index
ranking(2)
|
|
•
|
In December, GSK and long-term
partner Medicines for Malaria Venture (MMV), announced that the
World Health Organisation (WHO) has awarded prequalification to
tafenoquine, the first single-dose medicine for the prevention of
relapse of Plasmodium vivax (P. vivax) malaria. Tafenoquine,
co-administered with chloroquine, is now also included in WHO's
updated Guidelines for malaria, in South America, marking the first
time the medicine has been recommended by WHO. This milestone is a
significant step toward closing the treatment gap for P. vivax
malaria. The WHO prequalification and updated guidelines include
both adults and children aged 2 years and older, weighing at least
10 kg. First single-dose medicine for P.
vivax malaria prequalified by WHO and included in WHO
Guidelines(3).
|
Global health and health
security
Commitment: develop novel products
and technologies to treat and prevent priority diseases, including
pandemic threats.
|
|
|
|
•
|
Performance metrics related to
global health and health security are updated annually in
GSK's 2023 Report(1) on page 15.
|
Environment
Commitment: committed to a net
zero, nature-positive, healthier planet with ambitious goals set
for 2030 and 2045.
Progress since Q3 2024:
|
|
|
|
•
|
In October, GSK was one of the first
companies to announce the adoption of Science Based Targets for
Nature, with our validated Freshwater target focused on our direct
operations in the water-stressed Upper Godavari basin in
India.
|
|
•
|
Performance metrics related to
environment are updated annually with related details in
GSK's 2023 Report(1) on
page 18.
|
Inclusion and diversity
Commitment: create an inclusive
workplace through equal employment opportunity and
non-discrimination; reflect patients impacted by the disease under
study in our clinical trials; and support future talent in STEM
regardless of background.
|
|
|
|
•
|
Performance metrics related to these
matters are updated annually with related details in
GSK's 2023 Report(1) 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 2023
Report(1) 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 2023
Report(1) on page 35.
|
External benchmarking
|
|
|
|
|
|
|
|
|
|
|
S&P Global's Corporate
Sustainability Assessment
|
78
|
80
|
Current score updated September
2024
|
|
Access to Medicines
Index(4)
|
3.72
|
4.06
|
Second in the Index, updated
bi-annually, current results from November 2024
|
|
Antimicrobial resistance
benchmark
|
84%
|
86%
|
Led the benchmark since its
inception in 2018; Current ranking updated November 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
|
15.0
|
15.4
|
1st percentile in pharma subindustry
group; lower score represents lower risk. Current score as at
October 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 October
2024
|
|
FTSE4Good
|
Member
|
Member
|
Member since 2004, latest review in
June 2024
|
|
ShareAction's Workforce Disclosure
Initiative
|
79%
|
77%
|
Current score updated January
2024
|
Footnotes:
|
(1)
|
https://www.gsk.com/media/11009/esg-performance-report-2023.pdf
|
|
|
https://www.gsk.com/en-gb/media/press-releases/statement-gsk-continues-to-show-strong-leadership-in-its-access-to-medicines-index-ranking/
|
|
|
https://www.gsk.com/en-gb/media/press-releases/first-single-dose-medicine-for-p-vivax-malaria-prequalified-by-who/
|
|
|
https://accesstomedicinefoundation.org/resource/2024-access-to-medicine-index
|
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 was 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 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 50.
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 19, 20, 22 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 85% of the Total earnings and 83% of the Core
earnings of ViiV Healthcare for 2024.
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 year ended 31 December 2024 were
£1,190 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 2024 and 2023 are set out
below.
Year ended 31 December
2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
results
£m
|
|
Intangible
amort-
isation
£m
|
|
Intangible
impair-
ment
£m
|
|
Major
restruct-
uring
£m
|
|
Trans-
action-
related
£m
|
|
Significant
legal, Divest-
ments and
other
items
£m
|
|
Core
results
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
31,376
|
|
|
|
|
|
|
|
|
|
|
|
31,376
|
|
Cost of sales
|
(9,048)
|
|
947
|
|
|
|
163
|
|
40
|
|
28
|
|
(7,870)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
22,328
|
|
947
|
|
|
|
163
|
|
40
|
|
28
|
|
23,506
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administration
|
(11,015)
|
|
|
|
|
|
160
|
|
2
|
|
1,879
|
|
(8,974)
|
|
Research and development
|
(6,401)
|
|
55
|
|
314
|
|
9
|
|
|
|
|
|
(6,023)
|
|
Royalty income
|
639
|
|
|
|
|
|
|
|
|
|
|
|
639
|
|
Other operating
income/(expense)
|
(1,530)
|
|
|
|
|
|
21
|
|
1,839
|
|
(330)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
4,021
|
|
1,002
|
|
314
|
|
353
|
|
1,881
|
|
1,577
|
|
9,148
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net finance expense
|
(547)
|
|
|
|
|
|
1
|
|
|
|
14
|
|
(532)
|
|
Share of after tax profit/(loss) of
associates
and joint venture
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
|
Profit/(loss) on disposal of
interests in
associates and joint
ventures
|
6
|
|
|
|
|
|
|
|
|
|
(6)
|
|
-
|
|
Profit before taxation
|
3,477
|
|
1,002
|
|
314
|
|
354
|
|
1,881
|
|
1,585
|
|
8,613
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
(526)
|
|
(208)
|
|
(63)
|
|
(80)
|
|
(311)
|
|
(274)
|
|
(1,462)
|
|
Tax rate %
|
15.1%
|
|
|
|
|
|
|
|
|
|
|
|
17.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation
|
2,951
|
|
794
|
|
251
|
|
274
|
|
1,570
|
|
1,311
|
|
7,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to
non-controlling
interests
|
376
|
|
|
|
|
|
|
|
278
|
|
|
|
654
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) attributable to
shareholders
|
2,575
|
|
794
|
|
251
|
|
274
|
|
1,292
|
|
1,311
|
|
6,497
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,951
|
|
794
|
|
251
|
|
274
|
|
1,570
|
|
1,311
|
|
7,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
63.2p
|
|
19.5p
|
|
6.1p
|
|
6.7p
|
|
31.7p
|
|
32.1p
|
|
159.3p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares
(millions)
|
4,077
|
|
|
|
|
|
|
|
|
|
|
|
4,077
|
|
|
|
Year ended 31 December
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
results
£m
|
|
Intangible
amort-
isation
£m
|
|
Intangible
impair-
ment
£m
|
|
Major
restruct-
uring
£m
|
|
Trans-
action-
related
£m
|
|
Significant
legal,
Divest-
ments and
other
items
£m
|
|
Core
results
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
30,328
|
|
|
|
|
|
|
|
|
|
|
|
30,328
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administration
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other operating
income/(expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
6,745
|
|
719
|
|
398
|
|
382
|
|
572
|
|
(30)
|
|
8,786
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of after tax profit/(loss)
of
associates and joint
ventures
|
(5)
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
|
Profit/(loss) on disposal of
interest in
associates
|
1
|
|
|
|
|
|
|
|
|
|
(1)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation
|
5,308
|
|
565
|
|
304
|
|
300
|
|
472
|
|
(94)
|
|
6,855
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to
non-controlling
interests
|
380
|
|
|
|
|
|
|
|
192
|
|
|
|
572
|
|
Profit/(loss) attributable to
shareholders
|
4,928
|
|
565
|
|
304
|
|
300
|
|
280
|
|
(94)
|
|
6,283
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
121.6p
|
|
13.9p
|
|
7.5p
|
|
7.4p
|
|
6.9p
|
|
(2.2)p
|
|
155.1p
|
|
Weighted average number of shares
(millions)
|
4,052
|
|
|
|
|
|
|
|
|
|
|
|
4,052
|
Adjusting items full year
2024
Major restructuring and
integration
|
Total Major restructuring charges
incurred in 2024 were £353 million (2023: £382 million), analysed
as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
£m
|
|
Non-
cash
£m
|
|
Total
£m
|
|
Cash
£m
|
|
Non-
cash
£m
|
|
Total
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Separation restructuring
programme
|
200
|
|
36
|
|
236
|
|
199
|
|
117
|
|
316
|
|
Significant acquisitions
|
59
|
|
1
|
|
60
|
|
65
|
|
1
|
|
66
|
|
Legacy programmes
|
48
|
|
9
|
|
57
|
|
(1)
|
|
1
|
|
-
|
|
|
307
|
|
46
|
|
353
|
|
263
|
|
119
|
|
382
|
The Separation restructuring
programme incurred cash charges of £200 million primarily from the
restructuring of some commercial and administrative functions as
well as Supply Chain. The non-cash charges of £36 million primarily
reflected the write-down of assets in manufacturing
locations.
The programme focussed on the
separation of GSK into two separate companies and is now largely
complete. The programme 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.
Cash charges of £48 million under
Legacy programmes primarily arose from the divestment of the
cephalosporins business.
Transaction-related
adjustments
Transaction-related adjustments
resulted in a net charge of £1,881 million (2023: £572 million net
charge), 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)
|
2024
£m
|
|
2023
£m
|
|
|
|
|
|
|
Contingent consideration on former
Shionogi-ViiV Healthcare joint Venture
(including Shionogi
preferential dividends)
|
1,533
|
|
934
|
ViiV Healthcare put options and
Pfizer preferential dividends
|
|
|
|
Contingent consideration on former
Novartis Vaccines business
|
|
|
|
Contingent consideration on
acquisition of Affinivax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total transaction-related
charges
|
|
|
|
The £1,533 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 £1,107
million from updated future sales forecasts and exchange rates, and
the unwind of the discount for £426 million. The £67 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 partly
offset by higher preference dividends. The ViiV Healthcare
contingent consideration liability is fair valued under IFRS. An
explanation of the accounting for the non-controlling interests in
ViiV Healthcare is set out on page 18.
The £206 million charge relating to
the contingent consideration on the former Novartis Vaccines
business primarily related to changes to future sales
forecasts.
The £22 million credit relating to
the contingent consideration on the acquisition of Affinivax
primarily related to updated milestone payment dates partly offset
by the unwind of the discount.
Significant legal charges,
Divestments, and other items
Significant legal charges in the
full year primarily reflected the Q3 2024 charge of £1.8 billion
($2.3 billion) in relation to Zantac for the State Courts
Settlement, the Qui Tam
Settlement, and the remaining 7% of pending state
court product liability cases, partially offset by reduced future
legal costs.
Legal charges provide for all
significant legal matters and are not broken out separately by
litigation or investigation.
Divestments and other items
primarily included other net income from milestones and dividends
related to investments, as well as amounts reclassified from the
foreign currency translation reserve to the income statement upon
the liquidation of subsidiaries.
The reconciliations between Total
results and Core results for Q4 2024 and Q4 2023 are set out
below.
Three months ended 31 December
2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
results
£m
|
|
Intangible
amort-
isation
£m
|
|
Intangible
impair-
ment
£m
|
|
Major
restruct-
uring
£m
|
|
Trans-
action-
related
£m
|
|
Significant
legal, Divest-
ments and
other
items
£m
|
|
Core
results
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
8,117
|
|
|
|
|
|
|
|
|
|
|
|
8,117
|
|
Cost of sales
|
(2,559)
|
|
183
|
|
|
|
22
|
|
|
|
15
|
|
(2,339)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
5,558
|
|
183
|
|
|
|
22
|
|
|
|
15
|
|
5,778
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administration
|
(2,663)
|
|
|
|
|
|
35
|
|
1
|
|
(75)
|
|
(2,702)
|
|
Research and development
|
(2,031)
|
|
15
|
|
196
|
|
(1)
|
|
|
|
|
|
(1,821)
|
|
Royalty income
|
176
|
|
|
|
|
|
|
|
|
|
|
|
176
|
|
Other operating
income/(expense)
|
(344)
|
|
|
|
|
|
16
|
|
417
|
|
(89)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
696
|
|
198
|
|
196
|
|
72
|
|
418
|
|
(149)
|
|
1,431
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net finance expense
|
(139)
|
|
|
|
|
|
|
|
|
|
1
|
|
(138)
|
|
Profit/(loss) on disposal of
interests in
associates and joint
ventures
|
6
|
|
|
|
|
|
|
|
|
|
(6)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
563
|
|
198
|
|
196
|
|
72
|
|
418
|
|
(154)
|
|
1,293
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
(62)
|
|
(36)
|
|
(35)
|
|
(11)
|
|
(11)
|
|
(19)
|
|
(174)
|
|
Tax rate %
|
11.0%
|
|
|
|
|
|
|
|
|
|
|
|
13.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation
|
501
|
|
162
|
|
161
|
|
61
|
|
407
|
|
(173)
|
|
1,119
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to
non-controlling
interests
|
87
|
|
|
|
|
|
|
|
86
|
|
|
|
173
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) attributable to
shareholders
|
414
|
|
162
|
|
161
|
|
61
|
|
321
|
|
(173)
|
|
946
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
501
|
|
162
|
|
161
|
|
61
|
|
407
|
|
(173)
|
|
1,119
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
10.1p
|
|
4.0p
|
|
3.9p
|
|
1.5p
|
|
7.9p
|
|
(4.2)p
|
|
23.2p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares
(millions)
|
4,081
|
|
|
|
|
|
|
|
|
|
|
|
4,081
|
Three months ended 31 December
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
results
£m
|
|
Intangible
amort-
isation
£m
|
|
Intangible
impair-
ment
£m
|
|
Major
restruct-
uring
£m
|
|
Trans-
action-
related
£m
|
|
Significant
legal, Divest-
ments and
other
items
£m
|
|
Core
results
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
8,052
|
|
|
|
|
|
|
|
|
|
|
|
8,052
|
|
Cost of sales
|
(2,418)
|
|
170
|
|
|
|
67
|
|
13
|
|
5
|
|
(2,163)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
5,634
|
|
170
|
|
|
|
67
|
|
13
|
|
5
|
|
5,889
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administration
|
(2,678)
|
|
|
|
|
|
53
|
|
12
|
|
25
|
|
(2,588)
|
|
Research and development
|
(2,047)
|
|
14
|
|
249
|
|
(2)
|
|
|
|
2
|
|
(1,784)
|
|
Royalty income
|
235
|
|
|
|
|
|
|
|
|
|
|
|
235
|
|
Other operating
income/(expense)
|
(571)
|
|
|
|
|
|
|
|
430
|
|
141
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
573
|
|
184
|
|
249
|
|
118
|
|
455
|
|
173
|
|
1,752
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net finance expense
|
(193)
|
|
|
|
|
|
|
|
|
|
2
|
|
(191)
|
Share of after tax profit/(loss) of
associates
and joint ventures
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
19
|
|
(38)
|
|
(59)
|
|
(31)
|
|
(71)
|
|
(55)
|
|
(235)
|
|
Tax rate %
|
(5.0%)
|
|
|
|
|
|
|
|
|
|
|
|
15.1%
|
|
Profit after taxation
|
398
|
|
146
|
|
190
|
|
87
|
|
384
|
|
120
|
|
1,325
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to
non-controlling
interests
|
48
|
|
|
|
|
|
|
|
104
|
|
|
|
152
|
|
Profit attributable to
shareholders
|
350
|
|
146
|
|
190
|
|
87
|
|
280
|
|
120
|
|
1,173
|
|
|
398
|
|
146
|
|
190
|
|
87
|
|
384
|
|
120
|
|
1,325
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
8.6p
|
|
3.6p
|
|
4.7p
|
|
2.1p
|
|
6.9p
|
|
3.0p
|
|
28.9p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares
(millions)
|
4,056
|
|
|
|
|
|
|
|
|
|
|
|
4,056
|
Adjusting items Q4 2024
Major restructuring and
integration
Total Major restructuring charges
incurred in Q4 2024 were £72 million (Q4 2023: £118 million),
analysed as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2024
|
|
Q4 2023
|
|
|
Cash
£m
|
|
Non-
cash
£m
|
|
Total
£m
|
|
Cash
£m
|
|
Non-
cash
£m
|
|
Total
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Separation restructuring
programme
|
31
|
|
22
|
|
53
|
|
92
|
|
16
|
|
108
|
|
Significant acquisitions
|
9
|
|
-
|
|
9
|
|
11
|
|
-
|
|
11
|
|
Legacy programmes
|
1
|
|
9
|
|
10
|
|
(2)
|
|
1
|
|
(1)
|
|
|
41
|
|
31
|
|
72
|
|
101
|
|
17
|
|
118
|
The Separation restructuring
programme incurred cash charges of £31 million primarily from
restructuring of some commercial and administrative functions as
well as Global Supply Chain. The non-cash charges of £22 million
primarily reflected the write down of assets in manufacturing
locations.
Costs of significant acquisitions
relate to integration costs of Sierra and Affinivax which were
acquired in Q3 2022, Bellus acquired in Q2 2023 and Aiolos acquired
in Q1 2024.
Transaction-related
adjustments
Transaction-related adjustments
resulted in a net charge of £418 million (Q4 2023: £455 million),
the majority of which related to charges/(credits) for the
remeasurement of contingent consideration liabilities, the
liabilities for the Pfizer put option, and Pfizer and Shionogi
preferential dividends in ViiV Healthcare.
|
|
|
|
|
|
Charge/(credit)
|
Q4 2024
£m
|
|
Q4 2023
£m
|
|
Contingent consideration on former
Shionogi-ViiV Healthcare joint Venture
(including Shionogi
preferential dividends)
|
427
|
|
528
|
|
ViiV Healthcare put options and
Pfizer preferential dividends
|
13
|
|
(42)
|
|
Contingent consideration on former
Novartis Vaccines business
|
-
|
|
(53)
|
|
Contingent consideration on
acquisition of Affinivax
|
(53)
|
|
(3)
|
|
Other adjustments
|
31
|
|
25
|
|
|
|
|
|
|
Total transaction-related
charges
|
418
|
|
455
|
The £427 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 £318 million
driven by updated exchange rates, and the unwind of the discount
for £109 million. The £13 million charge relating to the ViiV
Healthcare put option and Pfizer preferential dividends represented
updated exchange rates partly offset by a decrease in the valuation
of the put option primarily as a result of updated 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
18.
There was minimal adjustment in the
quarter relating to the contingent consideration on the former
Novartis Vaccines business primarily related to changes to future
sales forecasts and the unwind of the discount being offset by
updated exchange rates.
The £53 million credit relating to
the contingent consideration on the acquisition of Affinivax
primarily related to updated milestone payment dates partly offset
by the unwind of the discount.
Significant legal charges,
Divestments, and other items
Legal charges provide for all
significant legal matters, including Zantac, and are not broken out
separately by litigation or investigation.
Divestments and other items
included other net income, including milestones and royalty income,
and amounts reclassified from the foreign currency translation
reserve to the income statement upon the liquidation of
subsidiaries.
|
Financial information
|
|
Income statement
|
|
|
|
|
|
|
|
|
|
|
|
2024
£m
|
|
2023
£m
|
|
Q4 2024
£m
|
|
Q4 2023
£m
|
|
|
|
|
|
|
|
|
|
|
TURNOVER
|
31,376
|
|
30,328
|
|
8,117
|
|
8,052
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
(9,048)
|
|
(8,565)
|
|
(2,559)
|
|
(2,418)
|
|
Gross profit
|
22,328
|
|
21,763
|
|
5,558
|
|
5,634
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administration
|
(11,015)
|
|
(9,385)
|
|
(2,663)
|
|
(2,678)
|
|
Research and development
|
(6,401)
|
|
(6,223)
|
|
(2,031)
|
|
(2,047)
|
|
Royalty income
|
639
|
|
953
|
|
176
|
|
235
|
|
Other operating
income/(expense)
|
(1,530)
|
|
(363)
|
|
(344)
|
|
(571)
|
|
|
|
|
|
|
|
|
|
|
OPERATING PROFIT
|
4,021
|
|
6,745
|
|
696
|
|
573
|
|
|
|
|
|
|
|
|
|
|
Finance income
|
122
|
|
115
|
|
34
|
|
29
|
|
Finance expense
|
(669)
|
|
(792)
|
|
(173)
|
|
(222)
|
|
Share of after tax profit/(loss) of
associates and joint ventures
|
(3)
|
|
(5)
|
|
-
|
|
(1)
|
|
Profit/(loss) on disposal of
interests in associates and joint
ventures
|
6
|
|
1
|
|
6
|
|
-
|
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAXATION
|
3,477
|
|
6,064
|
|
563
|
|
379
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
(526)
|
|
(756)
|
|
(62)
|
|
19
|
|
Tax rate %
|
15.1%
|
|
12.5%
|
|
11.0%
|
|
(5.0%)
|
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAXATION
|
2,951
|
|
5,308
|
|
501
|
|
398
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to
non-controlling interests
|
376
|
|
380
|
|
87
|
|
48
|
|
Profit/(loss) attributable to
shareholders
|
2,575
|
|
4,928
|
|
414
|
|
350
|
|
|
2,951
|
|
5,308
|
|
501
|
|
398
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE
|
63.2p
|
|
121.6p
|
|
10.1p
|
|
8.6p
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
62.2p
|
|
119.9p
|
|
10.0p
|
|
8.5p
|
|
|
|
|
|
|
|
|
|
|
Statement of comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
2024
£m
|
|
2023
£m
|
|
Q4 2024
£m
|
|
Q4 2023
£m
|
|
|
|
|
|
|
|
|
|
|
Total profit for the
period
|
2,951
|
|
5,308
|
|
501
|
|
398
|
|
|
|
|
|
|
|
|
|
|
Items that may be reclassified
subsequently to income statement:
|
|
|
|
|
|
|
|
|
Exchange movements on overseas net
assets and net
investment hedges
|
(392)
|
|
(22)
|
|
(345)
|
|
65
|
|
Reclassification of exchange
movements on liquidation or
disposal of overseas
subsidiaries and associates
|
(87)
|
|
(34)
|
|
(31)
|
|
(14)
|
|
Fair value movements on cash flow
hedges
|
-
|
|
(1)
|
|
1
|
|
(2)
|
|
Cost of hedging
|
(4)
|
|
-
|
|
1
|
|
-
|
|
Deferred tax on fair value movements
on cash flow hedges
|
1
|
|
1
|
|
2
|
|
2
|
|
Reclassification of cash flow hedges
to income statement
|
4
|
|
4
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
(478)
|
|
(52)
|
|
(372)
|
|
51
|
|
|
|
|
|
|
|
|
|
|
Items that will not be reclassified
to income statement:
|
|
|
|
|
|
|
|
|
Exchange movements on overseas net
assets of
non-controlling
interests
|
(4)
|
|
(25)
|
|
13
|
|
(8)
|
|
Fair value movements on equity
investments
|
(100)
|
|
(244)
|
|
8
|
|
115
|
|
Tax on fair value movements on
equity investments
|
17
|
|
14
|
|
11
|
|
(21)
|
|
Fair value movements on cash flow
hedges
|
8
|
|
(40)
|
|
6
|
|
(6)
|
|
Remeasurement gains/(losses) on
defined benefit plans
|
506
|
|
71
|
|
133
|
|
287
|
|
Tax on remeasurement losses/(gains)
on defined benefit
plans
|
(122)
|
|
(41)
|
|
(35)
|
|
(96)
|
|
|
|
|
|
|
|
|
|
|
|
305
|
|
(265)
|
|
136
|
|
271
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income/(expense)
for the period
|
(173)
|
|
(317)
|
|
(236)
|
|
322
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the
period
|
2,778
|
|
4,991
|
|
265
|
|
720
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the
period attributable to:
|
|
|
|
|
|
|
|
|
Shareholders
|
2,406
|
|
4,636
|
|
165
|
|
680
|
|
Non-controlling
interests
|
372
|
|
355
|
|
100
|
|
40
|
|
|
|
|
|
|
|
|
|
|
|
2,778
|
|
4,991
|
|
265
|
|
720
|
|
|
|
|
|
|
|
31 December 2024
£m
|
|
31 December 2023
£m
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in associates and joint
ventures
|
|
|
|
|
|
|
|
|
|
Deferred tax assets
|
6,757
|
|
6,049
|
|
Derivative instruments
|
1
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Total non-current assets
|
42,466
|
|
40,361
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade and other
receivables
|
|
|
|
Derivative financial
instruments
|
|
|
|
Current equity
investments
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
16,997
|
|
18,644
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contingent consideration
liabilities
|
|
|
|
|
|
|
|
|
Derivative financial
instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
(21,697)
|
|
(21,068)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pensions and other post-employment
benefits
|
|
|
|
|
|
|
|
|
Contingent consideration
liabilities
|
|
|
|
Other non-current
liabilities
|
|
|
|
|
|
|
|
|
|
Total non-current
liabilities
|
(24,680)
|
|
(25,142)
|
|
|
|
|
|
|
TOTAL LIABILITIES
|
(46,377)
|
|
(46,210)
|
|
|
|
|
|
|
NET ASSETS
|
13,086
|
|
12,795
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests
|
|
|
|
|
|
|
|
|
|
TOTAL EQUITY
|
13,086
|
|
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 year
|
|
|
|
|
2,575
|
|
|
|
2,575
|
|
376
|
|
2,951
|
|
Other
comprehensive
income/(expense) for
the year
|
|
|
|
|
(83)
|
|
(86)
|
|
(169)
|
|
(4)
|
|
(173)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
income/(expense)
for the year
|
|
|
|
|
2,492
|
|
(86)
|
|
2,406
|
|
372
|
|
2,778
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to
non-controlling
interests
|
|
|
|
|
|
|
|
|
|
|
(416)
|
|
(416)
|
|
Dividends to shareholders
|
|
|
|
|
(2,444)
|
|
|
|
(2,444)
|
|
|
|
(2,444)
|
|
Deconsolidation of former
subsidiary
|
|
|
|
|
|
|
|
|
-
|
|
(2)
|
|
(2)
|
|
Realised after tax losses on
disposal
or liquidation of equity
investments
|
|
|
|
|
14
|
|
(14)
|
|
|
|
|
|
-
|
|
Share of associates and joint
ventures
realised profit/(loss) on
disposal of
equity investments
|
|
|
|
|
52
|
|
(52)
|
|
|
|
|
|
-
|
|
Shares issued
|
-
|
|
20
|
|
|
|
|
|
20
|
|
|
|
20
|
|
Write-down on shares held by
ESOP
Trusts
|
|
|
|
|
(362)
|
|
362
|
|
|
|
|
|
-
|
|
Shares acquired by ESOP
Trusts
|
|
|
2
|
|
457
|
|
(459)
|
|
|
|
|
|
-
|
|
Share-based incentive
plans
|
|
|
|
|
344
|
|
|
|
344
|
|
|
|
344
|
|
Contributions from
non-controlling
interests
|
|
|
|
|
|
|
|
|
|
|
9
|
|
9
|
|
Changes to non-controlling
interests
|
|
|
|
|
|
|
|
|
-
|
|
4
|
|
4
|
|
Hedging gain/loss after
taxation
transferred to non-financial
assets
|
|
|
|
|
|
|
(6)
|
|
(6)
|
|
|
|
(6)
|
|
Tax on share-based incentive
plans
|
|
|
|
|
4
|
|
|
|
4
|
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 December 2024
|
1,348
|
|
3,473
|
|
7,796
|
|
1,054
|
|
13,671
|
|
(585)
|
|
13,086
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
capital
£m
|
|
Share
premium
£m
|
|
Retained
earnings
£m
|
|
Other
reserves
£m
|
|
Share-
holder's
equity
£m
|
|
Non-
controlling
interests
£m
|
|
Total
equity
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1 January 2023
|
1,347
|
|
3,440
|
|
4,363
|
|
1,448
|
|
10,598
|
|
(502)
|
|
10,096
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the year
|
|
|
|
|
4,928
|
|
-
|
|
4,928
|
|
380
|
|
5,308
|
|
Other
comprehensive
income/(expense) for
the year
|
|
|
|
|
(45)
|
|
(247)
|
|
(292)
|
|
(25)
|
|
(317)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
income/(expense)
for the year
|
|
|
|
|
4,883
|
|
(247)
|
|
4,636
|
|
355
|
|
4,991
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to
non-controlling
interests
|
|
|
|
|
|
|
|
|
|
|
(412)
|
|
(412)
|
|
Contributions from
non-controlling
interests
|
|
|
|
|
|
|
|
|
|
|
7
|
|
7
|
|
Dividends to shareholders
|
|
|
|
|
(2,247)
|
|
|
|
(2,247)
|
|
|
|
(2,247)
|
|
Realised after tax losses on
disposal
or liquidation of equity
investments
|
|
|
|
|
(26)
|
|
26
|
|
|
|
|
|
-
|
|
Share of associates and joint
ventures
realised profit/(loss) on
disposal of
equity investments
|
|
|
|
|
(7)
|
|
7
|
|
|
|
|
|
-
|
|
Share issued
|
1
|
|
9
|
|
|
|
|
|
10
|
|
|
|
10
|
|
Write-down of shares held by
ESOP
Trusts
|
|
|
|
|
(324)
|
|
324
|
|
|
|
|
|
-
|
|
Shares acquired by ESOP
Trusts
|
|
|
2
|
|
283
|
|
(285)
|
|
|
|
|
|
-
|
|
Share-based incentive
plans
|
|
|
|
|
307
|
|
|
|
307
|
|
|
|
307
|
|
Hedging gain/(loss) after
taxation
transferred to non-financial
assets
|
|
|
|
|
|
|
36
|
|
36
|
|
|
|
36
|
|
Tax on share-based incentive
plans
|
|
|
|
|
7
|
|
|
|
7
|
|
|
|
7
|
|
At 31 December 2023
|
1,348
|
|
3,451
|
|
7,239
|
|
1,309
|
|
13,347
|
|
(552)
|
|
12,795
|
Cash flow statement year ended 31
December 2024
|
|
|
|
|
|
|
|
|
|
|
|
Profit after tax
|
2,951
|
|
5,308
|
|
|
|
|
|
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
|
7,861
|
|
8,096
|
|
|
|
|
|
|
Total net cash inflow/(outflow)
from operating activities
|
6,554
|
|
6,768
|
|
|
|
|
|
|
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
|
|
|
|
|
Share transactions with
non-controlling interests
|
(1)
|
|
-
|
Purchase of businesses, net of cash
acquired
|
|
|
|
|
Investment in joint ventures and
associates
|
(43)
|
|
-
|
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
|
(1,229)
|
|
(1,595)
|
|
|
|
|
|
|
Cash flow from financing
activities
|
|
|
|
|
|
|
|
|
Repayment of long-term
loans
|
|
|
|
|
|
|
|
|
Net increase/(decrease) in short-term
loans
|
|
|
|
Increase in other short-term
loans
|
|
|
|
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
|
(4,726)
|
|
(5,641)
|
|
Increase/(decrease) in cash and
bank overdrafts in the year
|
599
|
|
(468)
|
Cash and bank overdrafts at
beginning of year
|
|
|
|
|
Exchange adjustments
|
(54)
|
|
(99)
|
|
Increase/(decrease) in cash and bank
overdrafts in the year
|
599
|
|
(468)
|
|
Cash and bank overdrafts at end of
the year
|
3,403
|
|
2,858
|
Cash and bank overdrafts at end of
year comprise:
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
|
|
|
|
|
|
3,403
|
|
2,858
|
Sales tables
Vaccines turnover - year ended 31
December 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
|
|
|
Growth
|
|
|
Growth
|
|
|
Growth
|
|
|
Growth
|
|
|
£m
|
£%
|
CER%
|
|
£m
|
£%
|
CER%
|
|
£m
|
£%
|
CER%
|
|
£m
|
£%
|
CER%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Priorix, Priorix Tetra,
Varilrix
|
323
|
22
|
26
|
|
39
|
>100
|
>100
|
|
122
|
(5)
|
(2)
|
|
162
|
35
|
40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vaccines
ex COVID-19
solutions
|
9,138
|
(6)
|
(3)
|
|
4,286
|
(19)
|
(17)
|
|
2,186
|
3
|
5
|
|
2,666
|
17
|
23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vaccines turnover - three months
ended 31 December 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
|
|
|
Growth
|
|
|
Growth
|
|
|
Growth
|
|
|
Growth
|
|
|
£m
|
£%
|
CER%
|
|
£m
|
£%
|
CER%
|
|
£m
|
£%
|
CER%
|
|
£m
|
£%
|
CER%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Priorix, Priorix Tetra,
Varilrix
|
83
|
9
|
14
|
|
13
|
>100
|
>100
|
|
29
|
(6)
|
-
|
|
41
|
2
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vaccines
ex COVID-19
solutions
|
2,212
|
(14)
|
(11)
|
|
985
|
(29)
|
(27)
|
|
618
|
15
|
19
|
|
609
|
(7)
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty Medicines turnover -
year ended 31 December 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
|
|
|
Growth
|
|
|
Growth
|
|
|
Growth
|
|
|
Growth
|
|
|
£m
|
£%
|
CER%
|
|
£m
|
£%
|
CER%
|
|
£m
|
£%
|
CER%
|
|
£m
|
£%
|
CER%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Respiratory/Immunology
and Other
|
3,299
|
9
|
13
|
|
2,193
|
4
|
7
|
|
548
|
17
|
20
|
|
558
|
22
|
32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty Medicines
ex COVID-19
solutions
|
11,798
|
16
|
19
|
|
7,985
|
18
|
21
|
|
2,381
|
9
|
12
|
|
1,432
|
15
|
23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty Medicines turnover -
three months ended 31 December 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
|
|
|
Growth
|
|
|
Growth
|
|
|
Growth
|
|
|
Growth
|
|
|
£m
|
£%
|
CER%
|
|
£m
|
£%
|
CER%
|
|
£m
|
£%
|
CER%
|
|
£m
|
£%
|
CER%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Respiratory/Immunology
and Other
|
910
|
5
|
9
|
|
623
|
-
|
2
|
|
139
|
11
|
15
|
|
148
|
31
|
42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty Medicines
ex COVID-19
solutions
|
3,287
|
14
|
18
|
|
2,320
|
15
|
18
|
|
614
|
8
|
12
|
|
353
|
17
|
26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General Medicines turnover - year
ended 31 December 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Respiratory
|
7,213
|
6
|
10
|
|
3,869
|
12
|
16
|
|
1,423
|
1
|
4
|
|
1,921
|
(3)
|
4
|
|
Anoro Ellipta
|
572
|
3
|
6
|
|
258
|
(4)
|
(1)
|
|
221
|
15
|
17
|
|
93
|
(2)
|
5
|
|
Flixotide/Flovent
|
527
|
17
|
21
|
|
359
|
27
|
30
|
|
71
|
1
|
3
|
|
97
|
(1)
|
5
|
|
Relvar/Breo Ellipta
|
1,067
|
(3)
|
1
|
|
393
|
(10)
|
(7)
|
|
372
|
2
|
4
|
|
302
|
-
|
8
|
|
Seretide/Advair
|
1,057
|
(7)
|
(3)
|
|
364
|
7
|
10
|
|
219
|
(14)
|
(13)
|
|
474
|
(13)
|
(7)
|
|
Trelegy Ellipta
|
2,702
|
23
|
27
|
|
1,986
|
24
|
27
|
|
312
|
13
|
16
|
|
404
|
26
|
35
|
|
Ventolin
|
702
|
(6)
|
(3)
|
|
362
|
(10)
|
(7)
|
|
107
|
7
|
10
|
|
233
|
(6)
|
(1)
|
|
Other Respiratory
|
586
|
(6)
|
(1)
|
|
147
|
37
|
41
|
|
121
|
(15)
|
(13)
|
|
318
|
(15)
|
(9)
|
|
Other General Medicines
|
3,215
|
(5)
|
-
|
|
234
|
(16)
|
(14)
|
|
675
|
(7)
|
(5)
|
|
2,306
|
(4)
|
3
|
|
Augmentin
|
635
|
1
|
7
|
|
-
|
-
|
-
|
|
185
|
(1)
|
2
|
|
450
|
2
|
10
|
|
Lamictal
|
405
|
(7)
|
(3)
|
|
163
|
(16)
|
(13)
|
|
106
|
(5)
|
(3)
|
|
136
|
5
|
12
|
|
Other "Other General
Medicines"
|
2,175
|
(7)
|
(1)
|
|
71
|
(17)
|
(16)
|
|
384
|
(10)
|
(8)
|
|
1,720
|
(5)
|
1
|
|
General Medicines
|
10,428
|
2
|
6
|
|
4,103
|
10
|
13
|
|
2,098
|
(1)
|
1
|
|
4,227
|
(3)
|
3
|
General Medicines turnover - three
months ended 31 December 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Respiratory
|
1,806
|
3
|
7
|
|
957
|
5
|
7
|
|
368
|
2
|
5
|
|
481
|
2
|
9
|
|
Anoro Ellipta
|
147
|
(5)
|
(2)
|
|
66
|
(15)
|
(14)
|
|
57
|
12
|
14
|
|
24
|
(8)
|
4
|
|
Flixotide/Flovent
|
143
|
43
|
47
|
|
100
|
72
|
76
|
|
20
|
-
|
-
|
|
23
|
5
|
14
|
|
Relvar/Breo Ellipta
|
275
|
(9)
|
(5)
|
|
93
|
(28)
|
(26)
|
|
97
|
2
|
6
|
|
85
|
9
|
15
|
|
Seretide/Advair
|
259
|
(6)
|
(2)
|
|
91
|
17
|
18
|
|
53
|
(18)
|
(17)
|
|
115
|
(14)
|
(7)
|
|
Trelegy Ellipta
|
669
|
14
|
17
|
|
474
|
10
|
12
|
|
82
|
14
|
17
|
|
113
|
30
|
39
|
|
Ventolin
|
170
|
(14)
|
(11)
|
|
86
|
(24)
|
(21)
|
|
31
|
11
|
18
|
|
53
|
(7)
|
(4)
|
|
Other Respiratory
|
143
|
13
|
20
|
|
47
|
74
|
78
|
|
28
|
(10)
|
(3)
|
|
68
|
-
|
7
|
|
Other General Medicines
|
801
|
(3)
|
3
|
|
55
|
(17)
|
(18)
|
|
154
|
(14)
|
(11)
|
|
592
|
1
|
9
|
|
Augmentin
|
161
|
1
|
10
|
|
-
|
-
|
-
|
|
47
|
(4)
|
-
|
|
114
|
4
|
15
|
|
Lamictal
|
101
|
(6)
|
(3)
|
|
40
|
(18)
|
(16)
|
|
25
|
(11)
|
(7)
|
|
36
|
16
|
23
|
Other "Other General
Medicines"
|
539
|
(4)
|
2
|
|
15
|
(12)
|
(24)
|
|
82
|
(20)
|
(17)
|
|
442
|
-
|
7
|
|
General Medicines
|
2,607
|
1
|
6
|
|
1,012
|
3
|
5
|
|
522
|
(4)
|
-
|
|
1,073
|
2
|
9
|
Commercial Operations
turnover
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
£m
|
£%
|
CER%
|
|
£m
|
£%
|
CER%
|
|
£m
|
£%
|
CER%
|
|
£m
|
£%
|
CER%
|
|
Year ended 31 December
2024
|
31,376
|
3
|
7
|
|
16,384
|
4
|
6
|
|
6,666
|
2
|
4
|
|
8,326
|
5
|
11
|
|
Three months ended 31 December
2024
|
8,117
|
1
|
4
|
|
4,327
|
(1)
|
1
|
|
1,755
|
6
|
10
|
|
2,035
|
1
|
8
|
Commercial Operations turnover
excluding COVID-19 solutions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended 31 December
2024
|
31,364
|
4
|
8
|
|
16,374
|
4
|
6
|
|
6,665
|
4
|
6
|
|
8,325
|
5
|
12
|
|
Three months ended 31 December
2024
|
8,106
|
1
|
4
|
|
4,317
|
(1)
|
1
|
|
1,754
|
6
|
10
|
|
2,035
|
1
|
8
|
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
|
|
|
2024
£m
|
|
2023
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
|
|
Commercial Operations (total
turnover)
|
31,376
|
|
30,328
|
|
3
|
|
7
|
|
|
|
|
|
|
|
|
|
|
Operating profit by
segment
|
|
|
2024
£m
|
|
2023
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
|
|
Commercial Operations
|
15,335
|
|
14,656
|
|
5
|
|
9
|
|
Research and Development
|
(5,845)
|
|
(5,607)
|
|
4
|
|
7
|
|
|
|
|
|
|
|
|
|
|
Segment profit
|
9,490
|
|
9,049
|
|
5
|
|
11
|
|
Corporate and other unallocated
costs
|
(342)
|
|
(263)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core operating profit
|
9,148
|
|
8,786
|
|
4
|
|
11
|
|
Adjusting items
|
(5,127)
|
|
(2,041)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating profit
|
4,021
|
|
6,745
|
|
(40)
|
|
(33)
|
|
|
|
|
|
|
|
|
|
|
Finance income
|
122
|
|
115
|
|
|
|
|
|
Finance costs
|
(669)
|
|
(792)
|
|
|
|
|
|
Share of after tax profit/(loss) of
associates and
joint ventures
|
(3)
|
|
(5)
|
|
|
|
|
|
Profit/(loss) on disposal of
associates and joint ventures
|
6
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
3,477
|
|
6,064
|
|
(43)
|
|
(34)
|
Commercial Operations Core
operating profit of £15,335 million grew in the full year driven by
strong sales and favourable product and regional mix, as well as
price and channel mix benefits and supply chain efficiencies, and a
reversal of the Zejula royalty dispute legal provision in Q1 2024. This was partly
offset by charges to drive future supply chain efficiencies,
continued disciplined investment in growth assets and lower royalty
income.
The R&D segment operating
expense of £5,845 million grew in the full year driven by continued
spend across the portfolio, and increased investment in Specialty
Medicines including camlipixant, bepirovirsen and
Benlysta, as well as the
long acting TSLP asset acquired as part of the Aiolos acquisition.
In Oncology, increased investment in Jemperli and ADC assets was offset by
investment decreases following the launches of Ojjaara and progression to completion
of Zejula studies.
In HIV investment on long-acting medicines continued, and in
Vaccines, pneumococcal (MAPS) and mRNA continued to drive
investment.
|
|
|
|
|
|
|
|
|
|
Turnover by segment
|
|
|
Q4 2024
£m
|
|
Q4 2023
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
|
|
Commercial Operations (total
turnover)
|
8,117
|
|
8,052
|
|
1
|
|
4
|
|
|
|
|
|
|
|
|
|
|
Operating profit by
segment
|
|
|
Q4 2024
£m
|
|
Q4 2023
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
|
|
Commercial Operations
|
3,323
|
|
3,612
|
|
(8)
|
|
(4)
|
|
Research and Development
|
(1,790)
|
|
(1,731)
|
|
3
|
|
5
|
|
|
|
|
|
|
|
|
|
|
Segment profit
|
1,533
|
|
1,881
|
|
(19)
|
|
(12)
|
|
Corporate and other unallocated
costs
|
(102)
|
|
(129)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core operating profit
|
1,431
|
|
1,752
|
|
(18)
|
|
(10)
|
|
Adjusting items
|
(735)
|
|
(1,179)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating profit
|
696
|
|
573
|
|
21
|
|
54
|
|
|
|
|
|
|
|
|
|
|
Finance income
|
34
|
|
29
|
|
|
|
|
|
Finance costs
|
(173)
|
|
(222)
|
|
|
|
|
|
Share of after tax profit/(loss) of
associates and
joint ventures
|
-
|
|
(1)
|
|
|
|
|
|
Profit/(loss) on disposal of
associates and joint ventures
|
6
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
563
|
|
379
|
|
49
|
|
97
|
Commercial Operations Core
operating profit of £3,323 million declined in the quarter. Strong
Specialty Medicines sales performance, favourable product and
regional mix as well as price and channel mix benefits were more
than offset by charges to drive future supply chain efficiencies,
continued disciplined investment in growth assets and lower royalty
income.
The R&D segment operating
expense of £1,790 million in the quarter reflected increased
investment in Oncology, driven by ADC assets, Blenrep and Jemperli, and Specialty Medicines,
driven by camlipixant and the long acting TSLP asset acquired as
part of the Aiolos acquisition. This was partly offset by decreased
investment in Vaccines reflecting the launch of Arexvy and timing of meningitis and
mRNA studies.
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 31 December 2024, the Group's aggregate provision for
legal and other disputes (not including tax matters described on
page 9) was £1,446 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 Q3 2024 results:
Product Liability
Zantac
As previously disclosed, on 9
October 2024 GSK reached agreements to resolve 93% (approximately
80,000 claimants) of the Zantac
state court product liability cases pending
against GSK in the United States. Since that time, the vast
majority of the remaining cases have been resolved or been
dismissed such that less than 1% of the state court cases remain.
GSK is in negotiations with plaintiffs' counsel on the remaining
cases, including two cases in Nevada state court with trials
scheduled in 2026. The trial in the Mayor & City of Baltimore
action remains scheduled to begin 1 June 2026.
GSK's appeal of the Delaware
Superior Court's decision allowing Plaintiffs to present expert
evidence of general causation on all ten cancer types to a jury
remains pending. As previously disclosed, approximately 14,000
product liability cases were dismissed following the grant of
defendants' Daubert motions in December 2022 in the Federal MDL proceeding. These
are now on appeal by the plaintiffs to the United States Court of
Appeals for the Eleventh Circuit, along with appeals in the medical
monitoring and consumer class action cases. GSK remains confident
in its position and will continue to vigorously defend against
those appeals.
Intellectual Property
mRNA
On 2 January 2025, Acuitas
Therapeutics Inc. filed a declaratory judgment complaint against
GSK, seeking judgment that COMIRNATY® does not infringe five GSK
patents. Acuitas also seeks a ruling that the patents are invalid.
GSK is preparing its response.
RSV
On 7 October 2024, the London High
Court ruled in Pfizer's favour and invalidated two of GSK's patents
relating to RSV vaccine technology. The Court held a hearing on 13
December 2024 at which GSK sought the Court's permission to appeal
its 7 October 2024 ruling. On 16 January 2025, the Court issued a
decision refusing permission to appeal. GSK is seeking permission
to appeal from the Court of Appeal. Additional decisions are
expected in the Netherlands at any time.
On 14 November 2024, GSK amended
its complaint in the United States to add an additional patent to
the case. Trial remains scheduled for 3 August 2026.
Returns to shareholders
Quarterly dividends
The Board has declared a fourth
interim dividend for Q4 2024 of 16p per share (Q4 2023: 16p 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 per cent
pay-out ratio through the investment cycle. Consistent with this,
GSK has declared a dividend of 16p for Q4 2024 and 61p per share
for full year 2024. The expected dividend for 2025 is 64p per
share. 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 April 2025. 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 21 February 2025 with a payment date of 10
April 2025.
|
|
|
|
|
|
|
|
|
Paid/
Payable
|
|
Pence per
share
|
|
£m
|
|
|
|
|
|
|
|
|
2024
|
|
|
|
|
|
|
First interim
|
11 July 2024
|
|
15
|
|
612
|
|
Second interim
|
10 October 2024
|
|
15
|
|
612
|
|
Third interim
|
9 January 2025
|
|
15
|
|
612
|
|
Fourth interim
|
10 April 2025
|
|
16
|
|
653
|
|
|
|
|
|
|
|
|
|
|
|
61
|
|
2,489
|
|
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 31 December 2024, 4,081 million
shares (2023: 4,056 million) were in free issue (excluding Treasury
shares and shares held by the ESOP Trusts). No Treasury shares have
been repurchased since 2014. GSK expects to implement a £2 billion
share buyback programme over the next 18 months. The company issued
2.2 million shares under employee share schemes for net proceeds of
£20 million (2023: £10 million).
At 31 December 2024, the ESOP
Trusts held 64.3 million shares of GSK shares, of which 63.7
million were held for the future exercise of share options and
share awards and 0.6 million were held for the Executive
Supplemental Savings plan. The carrying value of
£397 million has been deducted from other reserves. The
market value of these shares was £866 million.
At 31 December 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
|
|
|
2024
millions
|
|
2023
millions
|
|
Q4 2024
millions
|
|
Q4 2023
millions
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares -
basic
|
4,077
|
|
4,052
|
|
4,081
|
|
4,056
|
|
Dilutive effect of share options and
share awards
|
65
|
|
59
|
|
64
|
|
60
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares -
diluted
|
4,142
|
|
4,111
|
|
4,145
|
|
4,116
|
Additional information
Accounting policies and basis of
preparation
This unaudited Results Announcement
contains condensed financial information for the year-end and three
months ended 31 December 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:
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
Q4 2024
|
|
Q4 2023
|
|
|
|
|
|
|
|
|
|
|
Average rates:
|
|
|
|
|
|
|
|
|
|
|
US$/£
|
1.28
|
|
1.24
|
|
1.27
|
|
1.25
|
|
|
|
Euro/£
|
1.18
|
|
1.15
|
|
1.20
|
|
1.15
|
|
|
|
Yen/£
|
193
|
|
175
|
|
195
|
|
183
|
|
|
|
|
|
|
|
|
|
|
Period-end rates:
|
|
|
|
|
|
|
|
|
|
|
US$/£
|
1.25
|
|
1.27
|
|
1.25
|
|
1.27
|
|
|
|
Euro/£
|
1.20
|
|
1.15
|
|
1.20
|
|
1.15
|
|
|
|
Yen/£
|
197
|
|
180
|
|
197
|
|
180
|
Contingent liabilities
There were contingent liabilities
at 31 December 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 35, and pages 263 to 266 of the 2023 Annual
Report.
Net assets
The book value of net assets
increased by £291 million from £12,795 million at 31 December 2023
to £13,086 million at 31 December 2024. This primarily reflected
contribution from Total comprehensive income for the period partly
offset by dividends paid to shareholders.
At 31 December 2024, the net
deficit on the Group's pension plans was £103 million compared with
£763 million at 31 December 2023. This decrease in the net deficit
is primarily due to an increase in the UK and US discount rates,
and pension contributions.
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 £915 million (31 December 2023: £848 million).
Contingent consideration amounted
to £7,280 million at 31 December 2024 (31 December 2023: £6,662
million), of which £6,061 million (31 December 2023: £5,718
million) represented the estimated present value of amounts payable
to Shionogi relating to ViiV Healthcare, £575 million (31
December 2023: £424 million) represented the estimated present
value of contingent consideration payable to Novartis related to
the Vaccines acquisition, £502 million (31 December 2023: £516
million) represented the estimated present value of contingent
consideration payable in relation to Affinivax, and £130 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
31 December 2024, £1,127 million (31 December 2023: £1,017
million) is expected to be paid within one year.
Movements in contingent
consideration are as follows:
|
|
|
|
|
|
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
|
1,533
|
|
1,768
|
|
Cash payments: operating cash
flows
|
(1,190)
|
|
(1,235)
|
|
Cash payments: investing
activities
|
-
|
|
(19)
|
|
|
|
|
|
|
Contingent consideration at end of
the period
|
6,061
|
|
7,280
|
|
|
|
|
|
|
2023
|
ViiV
Healthcare
£m
|
|
Group
£m
|
|
|
|
|
|
|
Contingent consideration at
beginning of the period
|
5,890
|
|
7,068
|
|
Remeasurement through income
statement and other movements
|
934
|
|
739
|
|
Cash payments: operating cash
flows
|
(1,106)
|
|
(1,134)
|
|
Cash payments: investing
activities
|
-
|
|
(11)
|
|
|
|
|
|
|
Contingent consideration at end of
the period
|
5,718
|
|
6,662
|
The liabilities for the Pfizer put
option and the contingent consideration at 31 December 2024 have
been calculated based on the period-end exchange rates, primarily
US$1.25/£1 and €1.20/£1. Sensitivity analyses for the Pfizer put
option and each of the largest contingent consideration liabilities
are set out below for the following scenarios:
|
|
|
|
|
|
|
|
|
|
|
Increase/(decrease) in financial
liability and loss/(gain) in Income statement
|
ViiV
Healthcare
put option
£m
|
|
Shionogi-ViiV Healthcare
contingent
consideration
£m
|
|
Novartis
Vaccines
contingent
consideration
£m
|
|
Affinivax
contingent
consideration
£m
|
|
|
|
|
|
|
|
|
|
|
10% increase in sales
forecasts*
|
92
|
|
573
|
|
83
|
|
n/a
|
|
15% increase in sales
forecasts*
|
139
|
|
857
|
|
125
|
|
n/a
|
|
10% decrease in sales
forecasts*
|
(92)
|
|
(572)
|
|
(83)
|
|
n/a
|
|
15% decrease in sales
forecasts*
|
(138)
|
|
(856)
|
|
(125)
|
|
n/a
|
|
1% (100 basis points) increase in
discount rate
|
(22)
|
|
(180)
|
|
(38)
|
|
(14)
|
|
1.5% (150 basis points) increase in
discount rate
|
(32)
|
|
(267)
|
|
(55)
|
|
(20)
|
|
1% (100 basis points) decrease in
discount rate
|
23
|
|
194
|
|
43
|
|
14
|
|
1.5% (150 basis points) decrease in
discount rate
|
34
|
|
298
|
|
67
|
|
21
|
|
10 cent appreciation of US
Dollar
|
62
|
|
431
|
|
14
|
|
43
|
|
15 cent appreciation of US
Dollar
|
97
|
|
677
|
|
22
|
|
68
|
|
10 cent depreciation of US
Dollar
|
(53)
|
|
(368)
|
|
(12)
|
|
(37)
|
|
15 cent depreciation of US
Dollar
|
(76)
|
|
(533)
|
|
(17)
|
|
(54)
|
|
10 cent appreciation of
Euro
|
20
|
|
77
|
|
22
|
|
n/a
|
|
15 cent appreciation of
Euro
|
31
|
|
123
|
|
35
|
|
n/a
|
|
10 cent depreciation of
Euro
|
(17)
|
|
(65)
|
|
(19)
|
|
n/a
|
|
15 cent depreciation of
Euro
|
(24)
|
|
(95)
|
|
(27)
|
|
n/a
|
|
10% increase in probability of
milestone success
|
n/a
|
|
n/a
|
|
22
|
|
73
|
|
10% decrease in probability of
milestone success
|
n/a
|
|
n/a
|
|
(11)
|
|
(73)
|
|
|
|
|
*
|
The sales forecast is for ViiV
Healthcare sales only in respect of the ViiV Healthcare put option
and the Shionogi-ViiV Healthcare contingent
consideration.
|
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.
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 fair values of the net assets
acquired, including goodwill, are as follows:
|
|
|
|
|
|
|
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 31 December 2024, the present
value of the contingent consideration payable was £130
million.
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 was not
subject to closing conditions and the acquisition has been
completed.
Reconciliation of cash flow to
movements in net debt
|
|
|
|
|
|
|
|
|
|
|
|
Total Net debt at beginning of the
period
|
(15,040)
|
|
(17,197)
|
|
Increase/(decrease) in cash and bank
overdrafts
|
599
|
|
(468)
|
|
Increase/(decrease) in liquid
investments
|
(21)
|
|
(72)
|
|
Repayment of long-term
loans(1)
|
1,615
|
|
2,260
|
|
Issue of long-term notes
|
(1,075)
|
|
(223)
|
|
Net (increase)/decrease in
short-term loans
|
811
|
|
333
|
|
Increase in other short-term
loans(2)
|
(266)
|
|
-
|
|
Repayment of other short-term
loans(2)
|
81
|
|
-
|
|
Repayment of lease
liabilities
|
226
|
|
197
|
|
Net debt of subsidiary undertakings
acquired
|
-
|
|
50
|
|
Exchange adjustments
|
117
|
|
554
|
|
Other non-cash movements
|
(142)
|
|
(474)
|
|
(Increase)/decrease in net
debt
|
1,945
|
|
2,157
|
|
Total Net debt at end of the
period
|
(13,095)
|
|
(15,040)
|
|
(1)
|
Repayment of long-term loans for
2024 of £1,615 million (2023 : £2,260 million) includes the current
portion of long-term borrowings of £1,615 million (2023: £2,116
million) which was classified as short term borrowing on the
balance sheet and previously presented as repayment of short-term
loans.
|
|
(2)
|
Other short-term loans include bank
loans presented within short-term borrowings on the balance sheet,
with an initial maturity of greater than three months.
|
|
|
|
|
|
|
|
31 December 2024
£m
|
|
31 December 2023
£m
|
|
Liquid investments
|
21
|
|
42
|
|
Cash and cash equivalents
|
3,870
|
|
2,936
|
|
Short-term borrowings
|
(2,349)
|
|
(2,813)
|
|
Long-term borrowings
|
(14,637)
|
|
(15,205)
|
|
Total Net debt at the end of the
period
|
(13,095)
|
|
(15,040)
|
Free cash flow
reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash inflow/(outflow) from
operating activities
|
6,554
|
|
6,768
|
|
2,329
|
|
3,196
|
|
Purchase of property, plant and
equipment
|
(1,399)
|
|
(1,314)
|
|
(544)
|
|
(486)
|
|
Proceeds from sale of property,
plant and equipment
|
65
|
|
28
|
|
61
|
|
7
|
|
Purchase of intangible
assets
|
(1,583)
|
|
(1,030)
|
|
(591)
|
|
(297)
|
|
Proceeds from disposals of
intangible assets
|
131
|
|
12
|
|
5
|
|
-
|
|
Net finance costs
|
(494)
|
|
(651)
|
|
(200)
|
|
(254)
|
|
Dividends from associates and joint
ventures
|
15
|
|
12
|
|
-
|
|
11
|
Contingent consideration paid
(reported in investing
activities)
|
(19)
|
|
(11)
|
|
(8)
|
|
(4)
|
|
Distributions to non-controlling
interests
|
(416)
|
|
(412)
|
|
(128)
|
|
(78)
|
|
Contributions from non-controlling
interests
|
9
|
|
7
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Free cash
inflow/(outflow)
|
2,863
|
|
3,409
|
|
924
|
|
2,095
|
Reconciliation of Total Operating
Profit to Core EBITDA
|
The Total net debt/Core EBITDA
ratio is disclosed solely for the purpose of demonstrating a
leverage ratio that is used by analysts, investors and other
stakeholders and which assesses the strength of the balance sheet.
It is calculated at the end of the financial reporting
year.
|
|
|
|
|
|
|
|
|
|
|
Total Operating profit
|
4,021
|
|
6,745
|
|
Adjusting items
|
5,127
|
|
2,041
|
|
Core Operating profit
|
9,148
|
|
8,786
|
|
|
|
|
|
|
Including:
|
|
|
|
|
Share of after tax
profit/(loss) of associates and joint venture
|
(3)
|
|
(5)
|
|
Excluding:
|
|
|
|
|
Core depreciation
|
1,096
|
|
1,081
|
|
Core amortisation
|
452
|
|
493
|
|
|
|
|
|
|
Core EBITDA
|
10,693
|
|
10,355
|
Total Net debt to Core EBITDA
ratio
|
|
|
|
|
|
|
|
|
|
|
Total Net debt
|
13,095
|
|
15,040
|
|
Core EBITDA
|
10,693
|
|
10,355
|
|
Total Net debt to Core EBITDA
ratio
|
1.2
|
|
1.5
|
Post balance sheet
event
On 13 January 2025, GSK announced
it had entered into an agreement to acquire IDRx, Inc. (IDRx) a
clinical-stage biopharmaceutical company dedicated to transforming
cancer care with intelligently designed precision therapies. The
acquisition includes lead molecule, IDRX-42, a highly selective
investigational small molecule tyrosine kinase inhibitor (TKI)
being developed as a first- and second-line therapy for the
treatment of gastrointestinal stromal tumours.
GSK will acquire all of the
outstanding equity interests (including all options and other
incentive equity) in IDRx for up to US$1.15 billion of total cash
consideration, comprising an upfront payment of US$1 billion with
potential for an additional US$150 million success-based regulatory
approval milestone payment. GSK will also be responsible for
success-based milestone payments as well as tiered royalties for
IDRX-42 owed to Merck KGaA, Darmstadt, Germany. The transaction is
subject to customary conditions, including applicable regulatory
agency clearances under the Hart-Scott-Rodino Act in the US and is
expected to close in the first quarter of 2025.
Related party
transactions
Details of GSK's related party
transactions are disclosed on page 235 of our 2023 Annual
Report.
|
|
|
|
|
|
Medicines and vaccines in phase III
development (including major lifecycle innovation or under
regulatory review)
|
19
|
Respiratory, Immunology and
Inflammation (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
|
|
Infectious Diseases (8)
|
|
•
|
Arexvy (RSV
vaccine) RSV adults (18-49 years of age at increased risk (AIR) and
18+ immunocompromised)
|
|
•
|
gepotidacin (bacterial topoisomerase
inhibitor) uncomplicated urinary tract infection and urogenital
gonorrhoea
|
|
•
|
bepirovirsen (HBV ASO) hepatitis B
virus
|
|
•
|
Bexsero (meningococcal B vaccine) infants (US)
|
|
•
|
MenABCWY (gen 1) vaccine
candidate
|
|
•
|
tebipenem pivoxil (antibacterial
carbapenem) complicated urinary tract infection
|
|
•
|
ibrexafungerp (antifungal glucan
synthase inhibitor) invasive candidiasis
|
|
•
|
GSK4178116 (varicella vaccine)
varicella new strain individuals 12 months of age and
older
|
|
Total medicines and vaccines in all
phases of clinical development
|
71
|
|
|
|
Total projects in clinical
development (inclusive of all phases and indications)
|
90
|
|
|
Therapy area updates
The following provides updates on
key medicines and vaccines by therapy area that will help drive
growth for GSK to meet its future outlooks.
Respiratory, Immunology and
Inflammation
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
|
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
|
Recruiting
|
depemokimab (long acting
anti-IL5)
Depemokimab is in late-stage
development in a range of IL-5 mediated conditions including asthma
with type 2 inflammation, chronic rhinosinusitis with nasal polyps
(CRSwNP), hypereosinophilic syndrome (HES) and eosinophilic
granulomatosis with polyangiitis (EGPA). It is the first
ultra-long-acting biologic engineered to have an extended half-life
and high binding affinity and potency for IL-5, enabling six-month
dosing intervals in phase III clinical trials.
Positive phase III data from the
pivotal SWIFT-1 and SWIFT-2 trials in asthma with type 2
inflammation and the ANCHOR-1 and ANCHOR-2 trials in patients with
CRSwNP are being used to support regulatory filings in major
markets.
Regulatory submissions seeking
approval for the use of depemokimab in patients with asthma with
type 2 inflammation and in patients with CRSwNP, have been accepted
by the health authorities in the EU, China and Japan. Regulatory
acceptance is expected in the US in Q1 2025 with submissions in
other markets expected to progress through the year.
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
|
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
|
Active, not 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 reported: Q3 2024
|
Complete; primary endpoint
met
|
|
ANCHOR-2 (CRSwNP)
NCT05281523
|
III
|
Efficacy and safety of depemokimab
in participants with CRSwNP
|
Trial start:
Q2 2022
Data reported:
Q3 2024
|
Complete; primary endpoint
met
|
|
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
|
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
|
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.
In September 2024, positive results
from MATINEE, a phase III trial investigating Nucala in patients with chronic
obstructive pulmonary disease (COPD) were announced. MATINEE met
its primary endpoint with the addition of Nucala to inhaled maintenance therapy
showing a statistically significant and clinically meaningful
reduction in the annualised rate of moderate/severe exacerbations
versus placebo, with patients treated for up to 104
weeks.
Publication of the full results of
MATINEE is expected in Q1 2025. The US FDA has accepted these data
for review as part of the regulatory process to grant an indication
for the use of Nucala in patients with COPD. Further submissions are planned in
2025.
Key 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 reported:
Q3 2024
|
Complete; primary endpoint
met
|
Oncology
Blenrep (belantamab mafodotin)
GSK is pursuing regulatory
approvals worldwide for Blenrep
combinations for the treatment of relapsed or
refractory multiple myeloma based on positive results from the
phase III head-to-head DREAMM-7 and DREAMM-8 trials.
In November 2024, GSK announced
positive overall survival (OS) results from the DREAMM-7 trial
evaluating a belantamab mafodotin combination regimen compared to a
standard-of-care daratumumab combination regimen in relapsed or
refractory multiple myeloma. Full results, presented at the
American Society of Hematology (ASH) Annual Meeting in December,
showed a significant overall survival benefit for the belantamab
mafodotin combination, with a 42% reduction in the risk of death
versus standard of care.
Based on these data the US FDA has
accepted for review a Biologics License Application for belantamab
mafodotin in combinations with bortezomib plus dexamethasone
(BorDex [BVd]) and pomalidomide plus dexamethasone (PomDex [BPd])
for the treatment of patients with multiple myeloma who have
received at least one prior line of therapy. The US FDA has
assigned a Prescription Drug User Fee Act action date of 23 July
2025.
A new drug application also was
accepted for priority review in China in December 2024 for BVd as a
treatment for relapsed or refractory multiple myeloma based on the
results of DREAMM-7. The National Medical Products Administration
of China also previously granted Breakthrough Therapy Designation
for the BVd combination, a designation intended to expedite
development of investigational drugs with potential for substantial
improvement over available therapies.
GSK continues to explore the
potential for belantamab mafodotin 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 Q4 2024, GSK initiated DREAMM-10, a phase III trial evaluating
belantamab mafodotin plus lenalidomide and dexamethasone (BRd)
versus daratumumab plus lenalidomide and dexamethasone (DRd) in
patients with newly diagnosed transplant ineligible multiple
myeloma.
Key phase III trials for
Blenrep:
|
|
|
|
|
|
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
|
DREAMM-7 (2L+ multiple myeloma;
MM)
NCT04246047
|
III
|
A multi-centre, open-label,
randomised trial to evaluate the efficacy and safety of the
combination of belantamab mafodotin, bortezomib, and dexamethasone
(B-Vd) compared with the combination of daratumumab, bortezomib and
dexamethasone (D-Vd) in participants with relapsed/refractory
multiple myeloma
|
Trial start:
Q2 2020
Primary data reported:
Q4 2023
|
Active, not recruiting; 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
|
Recruiting, primary endpoint
met
|
|
DREAMM-10 (1L MM)
NCT06679101
|
III
|
A multi-centre, open-label,
randomised trial to evaluate the efficacy and safety of belantamab
mafodotin, lenalidomide and dexamethasone (B-Rd) versus
daratumumab, lenalidomide, and dexamethasone (D-Rd) in participants
with newly diagnosed multiple myeloma who are ineligible for
autologous stem cell transplantation
|
Trial start:
Q4 2024
|
Recruiting
|
Jemperli (dostarlimab)
Jemperli (dostarlimab) is the foundation of GSK's ongoing
immuno-oncology-based research and development programme. In
January 2025, the European Commission expanded the approval
of Jemperli in
combination with chemotherapy (carboplatin and paclitaxel) for
first-line treatment of all adult patients with primary advanced or
recurrent endometrial cancer who are candidates for systemic
therapy. This approval broadens the previous indication for
Jemperli plus
chemotherapy in the EU to include patients with mismatch repair
proficient (MMRp)/microsatellite stable (MSS) tumours, which
represent approximately 75% of patients diagnosed with endometrial
cancer and who have limited treatment options.
In December 2024, the US FDA
granted Breakthrough Therapy Designation to dostarlimab for the
treatment of patients with locally advanced mismatch repair
deficient (dMMR)/microsatellite instability-high (MSI-H) rectal
cancer. The designation was based on data showing no evidence of
disease in 100% of all 42 patients who completed treatment with
dostarlimab in a phase II trial. This is the second US regulatory
designation to help expedite the development of dostarlimab in
locally advanced dMMR/MSI-H rectal cancer, following Fast Track
designation for the same patient population in January
2023.
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
|
Complete; 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
|
Active, not 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
|
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
|
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
|
Recruiting
|
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 December 2024, GSK announced
that the FIRST-ENGOT-OV44 phase III trial met its primary endpoint
of progression-free survival (PFS). The topline results showed that
the addition of dostarlimab to both platinum-based chemotherapy and
niraparib maintenance, with or without bevacizumab, had a
statistically significant effect on PFS versus the active
comparator arm. The key secondary endpoint of overall survival did
not meet statistical significance. Further analyses are ongoing,
and data will be shared with health authorities and presented at an
upcoming scientific meeting.
Niraparib also is being evaluated
in patients with newly diagnosed, MGMT unmethylated glioblastoma in
the phase III GLIOFOCUS trial (NCT06388733) 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
|
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 reported:
Q4 2024
|
Primary endpoint met
|
GSK5764227 (GSK'227) B7-H3-targeted
antibody-drug conjugate
GSK is accelerating its portfolio
of antibody-drug conjugates (ADCs) in a breadth of solid tumours
that complement our existing and emerging capabilities and
strengths. GSK'227 is a B7-H3-targeting ADC that has broad
potential due to high expression levels of the B7H3 antigen across
multiple tumour types. It is currently being evaluated alone and in
combination with other therapies in phase I trials of locally
advanced or metastatic solid tumours, including small-cell lung
cancer (ES-SCLC) and osteosarcoma (bone cancer), among
others.
In December 2024, GSK'227 received
two regulatory designations that support its accelerated
development in certain tumour types, further underscoring its
transformative potential. The EMA granted Priority Medicines
(PRIME) Designation for the treatment of patients with relapsed
extensive-stage SCLC. PRIME Designation supports the development of
medicines with potential to offer a major therapeutic advantage for
patients. In addition, the FDA granted Breakthrough Therapy
Designation (BTD) for the treatment of adult patients with relapsed
or refractory osteosarcoma who have progressed on at least two
prior lines of therapy. BTD aims to expedite the development and
review of drugs with the potential to show improvement over
currently available therapy for serious conditions. The FDA
previously granted BTD for GSK'227 in relapsed or refractory
ES-SCLC in August 2024.
HIV
GSK continues to lead in
long-acting injectable innovation, transforming the HIV
marketplace.
In November 2024, ViiV Healthcare
presented 42 abstracts at the HIV Glasgow conference, highlighting
the growing body of evidence supporting the use of long-acting
therapies in diverse patient populations. These studies included
new analyses showing the use of long-acting injectable
Vocabria +
Rekambys (cabotegravir +
rilpivirine LA) in clinical trial and real-world populations, and
the economic and public health impact of Apretude (cabotegravir LA for
PrEP).
Important data from the DOLCE study
were also shared, demonstrating that Dovato (dolutegravir/lamivudine) is
highly effective in treatment-naïve people with advanced HIV.
Taking fewer medicines is important to many people living with HIV
and these data reinforce confidence in Dovato's safety and efficacy compared
to three-drug regimens.
In January 2025, the European
Commission approved Vocabria
+ Rekambys
for use in adolescents, marking an important step
in bringing this medicine to younger people living with
HIV.
A registrational study for
four-monthly injectable PrEP also began in December 2024 and a
registrational study for a four-monthly long-acting injectable
treatment is on track to start in 2025. In 2026, the assets that
will deliver six-monthly dosing are expected to be confirmed,
enabling regimen selection.
Infectious Diseases
Arexvy (respiratory syncytial virus vaccine, adjuvanted)
In November 2024, Japan's Ministry
of Health, Labour and Welfare (MHLW) approved the extended use
of Arexvy for the
prevention of respiratory syncytial virus (RSV) disease to include
adults aged 50-59 at increased risk, making it the only RSV vaccine
approved for this population in Japan. The vaccine has been
approved for use in adults aged 50-59 at increased risk in 40 out
of 58 of the markets where it is registered with further regulatory
reviews ongoing.
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;
three season data reported: Q3
2024
|
Complete; 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; primary endpoint
met
|
|
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; data analysis
ongoing
|
|
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
|
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
Primary data reported:
Q4 2024
|
Active, not recruiting; primary
endpoint met
|
Key phase III trials for
Arexvy (continued):
|
|
|
|
|
|
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
|
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
Primary data reported:
Q3 2024
|
Complete; primary endpoint
met
|
|
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
|
Active, not recruiting
|
|
RSV OA=ADJ-025
(Adults, 18-49 years of age, at
increased risk for RSV disease and older adult 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
Primary data reported:
Q3 2024
|
Active, not recruiting
|
|
RSV OA=ADJ-021
(Adults aged 60 years and
above)
NCT06551181
|
III
|
A study on the immune response,
safety and the occurrence of Respiratory Syncytial Virus
(RSV)-associated respiratory tract illness after administration of
RSV OA vaccine in adults 60 years and older
|
Trial start:
Q3 2024
|
Recruiting
|
|
RSV OA=ADJ-012
(Adults aged 60 years and
above)
NCT06534892
|
IIIb
|
An Extension and Crossover
Vaccination Study on the Immune Response and Safety of a Vaccine
Against Respiratory Syncytial Virus Given to Adults 60 Years of Age
and Above Who Participated in RSV OA=ADJ-006 Study
|
Trial start:
Q3 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 and SENKU designation by the
Japanese Ministry of Health, Labour and Welfare in Japan 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
|
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
|
Active, not recruiting
|
|
B-United bepirovirsen sequential
therapy with daplusiran/tomligisiran in nucleos(t)ide treated
patients (chronic hepatitis B)
NCT06537414
|
IIb
|
A multi-centre, randomized,
partially placebo-controlled, double-blind study to investigate the
safety and efficacy of sequential therapy with
daplusiran/tomligisiran followed by bepirovirsen in participants
with chronic hepatitis B virus on background nucleos(t)ide analogue
therapy
|
Trial start:
Q4 2024
|
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 those with drug resistant
infections. Gepotidacin is currently under Priority Review by the
US FDA. A decision on approval is expected in March 2025. Filings
for gonorrhoea are expected to follow later 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 in the US. 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.
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
|
Reporting definitions
CAGR (Compound annual growth
rate)
CAGR is defined as the compound
annual growth rate and shows the annualised average rate for growth
in sales and core operating profit between 2021 to 2026, assuming
growth takes place at an exponentially compounded rate during those
years.
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.
Core Operating Margin
Core Operating margin is Core
operating profit divided by turnover.
COVID-19 solutions
COVID-19 solutions include the
sales of pandemic adjuvant and other COVID-19 solutions principally
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.
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 40.
Free cash flow
conversion
Free cash flow conversion is free
cash flow from operations as a percentage of profit attributable to
shareholders.
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.
Non-controlling
interest
Non-controlling interest is the
equity in a subsidiary not attributable, directly or indirectly, to
a parent.
Percentage points
Percentage points of growth which
is abbreviated to ppts.
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.
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.
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.
Total Net debt/Core EBITDA
ratio
Core EBITDA is defined as Total
operating profit excluding adjusting items and core depreciation
and amortisation (as described on page 41) and includes the
share of after tax losses on associates. Core depreciation is total
depreciation less depreciation arising as part of major
restructuring and is disclosed as part of adjusting items. Core
amortisation arises from computer software and internally
capitalised R&D development costs. Total Net debt is defined
above. The ratio is Total Net debt expressed as a multiple of Core
EBITDA which demonstrates a key leverage metric which assesses the
strength of the balance sheet.
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 17 and other
non-IFRS measures are defined in pages 50 and 51.
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
principally 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.
Total Operating Margin
Total Operating margin is Total
operating profit divided by turnover.
Total Earnings per
share
Unless otherwise stated, Total
earnings per share refers to Total basic earnings per
share.
Working capital
Working capital represents
inventory and trade receivables less trade payables.
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
2025 Guidance
GSK expects its turnover to
increase between 3 to 5 per cent and Core operating profit to
increase between 6 to 8 per cent. Core earnings per share is
expected to increase between 6 to 8 per cent. This guidance is
provided at CER.
The Core earnings per share
guidance assumes that we will implement our £2 billion share
buyback programme over the next 18 months.
The Group has made planning
assumptions that we expect turnover for Specialty Medicines to
increase by a low double-digit per cent, Vaccines to decrease by a
low-single digit per cent, and General Medicines to be broadly
stable.
2021-2026 and 2031
Outlooks
By 2031, GSK now expects to achieve
sales of more than £40 billion on a risk-adjusted basis and at CER.
This further increase reflects the inclusion of Blenrep, the significant phase III
progress since last year and multiple launch opportunities in the
2025 to 2031 period.
As before, we have further upside
potential from our early-stage pipeline and prospective business
development.
There is no change to our outlooks
for 2021-2026. GSK continues to expect sales to grow more than 7%
on a CAGR basis and Core operating profit to increase more than
11%, on the same basis. Core operating profit margin in 2026
continues to be expected to be more than 31%.
These outlooks are provided at CER
and exclude any contribution from COVID-19 related
solutions.
Assumptions and basis of
preparation related to 2025 Guidance, 2021-26 and 2031
Outlooks
In outlining the guidance for 2025,
and outlooks for the period 2021-26 and for 2031, the Group has
made certain assumptions about the macro-economic environment, the
healthcare sector (including regarding existing and possible
additional governmental legislative and regulatory reform), the
different markets and competitive landscape in which the Group
operates and the delivery of revenues and financial benefits from
its current portfolio, its development pipeline and restructuring
programmes.
2025 Guidance
These planning assumptions as well
as operating profit and earnings per share guidance and dividend
expectations assume no material interruptions to supply of the
Group's products, no material mergers, acquisitions or disposals,
no material litigation or investigation costs for the Company (save
for those that are already recognised or for which provisions have
been made) and no change in the Group's shareholdings in ViiV
Healthcare. The assumptions also assume no material changes in the
healthcare environment or unexpected significant changes in pricing
or trade policies as a result of government or competitor action.
The 2025 guidance factors in all divestments and product exits
announced to date.
2021-26 and 2031
Outlooks
The assumptions for GSK's revenue,
Core operating profit, Core operating margin and cash flow
outlooks, updated 2031 revenue outlook and margin expectations
through dolutegravir loss of exclusivity assume the delivery of
revenues and financial benefits from its current and development
pipeline portfolio of medicines and vaccines (which have been
assessed for this purpose on a risk-adjusted basis, as described
further below); regulatory approvals of the pipeline portfolio of
medicines and vaccines that underlie these expectations (which have
also been assessed for this purpose on a risk-adjusted basis, as
described further below); no material interruptions to supply of
the Group's products; successful delivery of the ongoing and
planned integration and restructuring plans; no material mergers,
acquisitions or disposals or other material business development
transactions; no material litigation or investigation costs for the
company (save for those that are already recognised or for which
provisions have been made); and no change in the shareholdings in
ViiV Healthcare. GSK assumes no premature loss of exclusivity for
key products over the period.
The assumptions for GSK's revenue,
Core operating profit, Core operating margin and cash flow
outlooks, updated 2031 revenue outlook and margin expectations
through dolutegravir loss of exclusivity also factor in all
divestments and product exits announced to date as well as material
costs for investment in new product launches and R&D. Risk-
adjusted sales includes sales for potential planned launches which
are risk-adjusted based on the latest internal estimate of the
probability of technical and regulatory success for each asset in
development.
Notwithstanding our guidance,
outlooks and expectations, there is still uncertainty as to whether
our assumptions, guidance, outlooks and expectations will be
achieved.
All outlook statements are given on
a constant currency basis and use 2024 average exchange rates as a
base (£1/$1.28, £1/€1.18, £1/Yen 193).
Assumptions and cautionary
statement regarding forward-looking statements
The Group's management believes
that the assumptions outlined above are reasonable, and that the
guidance, outlooks, and expectations described in this report are
achievable based on those assumptions. However, given the
forward-looking nature of these guidance, outlooks, and
expectations, they are subject to greater uncertainty, including
potential material impacts if the above assumptions are not
realised, and other material impacts related to foreign exchange
fluctuations, macro-economic activity, the impact of outbreaks,
epidemics or pandemics, changes in legislation, regulation,
government actions or intellectual property protection, product
development and approvals, actions by our competitors, and other
risks inherent to the industries in which we operate.
This document contains statements
that are, or may be deemed to be, "forward-looking statements".
Forward-looking statements give the Group's current expectations or
forecasts of future events. An investor can identify these
statements by the fact that they do not relate strictly to
historical or current facts. They use words such as 'anticipate',
'estimate', 'expect', 'intend', 'will', 'project', 'plan',
'believe', 'target' and other words and terms of similar meaning in
connection with any discussion of future operating or financial
performance. In particular, these include statements relating to
future actions, prospective products or product approvals, future
performance or results of current and anticipated products, sales
efforts, expenses, the outcome of contingencies such as legal
proceedings, dividend payments and financial results. Other than in
accordance with its legal or regulatory obligations (including
under the Market Abuse Regulation, the UK Listing Rules and the
Disclosure and Transparency Rules of the Financial Conduct
Authority), the Group undertakes no obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise. The reader should, however, consult any
additional disclosures that the Group may make in any documents
which it publishes and/or files with the SEC. All readers, wherever
located, should take note of these disclosures. Accordingly, no
assurance can be given that any particular expectation will be met
and investors are cautioned not to place undue reliance on the
forward-looking statements.
All guidance, outlooks and
expectations should be read together with the guidance and
outlooks, assumptions and cautionary statements in this Q4 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.
