UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
Form
6-K
REPORT
OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR
15d-16
UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the
month of October 2024
Commission File
Number 001-15170
GSK
plc
(Translation of
registrant's name into English)
79
New Oxford Street, London, WC1A 1DG
(Address of
principal executive office)
Indicate by check
mark whether the registrant files or will file annual reports under
cover of Form 20-F or Form 40-F.
Form
20-F . . . .X. . . . Form 40-F . . . . . . . .
GSK on track to deliver 2024 outlooks with further good progress
made in R&D
|
Q3 2024 sales and core earnings growth driven by strong performance
of Specialty Medicines helping to offset lower Vaccines
sales
|
●
|
Total
Q3 2024 sales £8.0 billion -2% AER; +2%
CER
|
●
|
Vaccines sales
-15%. Shingrix -7% and
Arexvy -72% reflecting
ACIP guideline changes, prioritisation of COVID vaccinations in the
US and annualisation of Arexvy launch in Q3 2023
|
●
|
Specialty Medicines
sales +19%. HIV sales +12%. Oncology +94%. Respiratory/Immunology
and other +14%
|
●
|
General
Medicines sales +7%. Trelegy +16%
|
●
|
Total
operating profit -86% and Total EPS -100% driven by a charge of
£1.8 billion ($2.3 billion) in relation to the Zantac settlement
|
●
|
Core
operating profit +5% and Core EPS +5% reflecting strong Specialty
Medicines performance, together with effective cost
management
|
●
|
Cash
generated from operations in the quarter £2.5 billion with
Free cash flow of £1.3 billion
|
(Financial Performance – Q3 2024 results
unless otherwise stated, growth % and commentary at CER as defined
on page 52).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3
2024
|
|
Year
to date
|
|
£m
|
|
%
AER
|
|
%
CER
|
|
£m
|
|
%
AER
|
|
%
CER
|
Turnover
|
8,012
|
|
(2)
|
|
2
|
|
23,259
|
|
4
|
|
8
|
Turnover ex COVID
|
8,012
|
|
(2)
|
|
2
|
|
23,258
|
|
5
|
|
9
|
Total
operating profit
|
189
|
|
(90)
|
|
(86)
|
|
3,325
|
|
(46)
|
|
(41)
|
Total
operating margin %
|
2.4%
|
|
(21.6ppts)
|
|
(20.6ppts)
|
|
14.3%
|
|
(13.4ppts)
|
|
(12.5ppts)
|
Total
EPS
|
(1.4p)
|
|
>(100)
|
|
(100)
|
|
53.0p
|
|
(53)
|
|
(48)
|
Core
operating profit
|
2,761
|
|
–
|
|
5
|
|
7,717
|
|
10
|
|
16
|
Core
operating margin %
|
34.5%
|
|
0.4ppts
|
|
1.0ppts
|
|
33.2%
|
|
1.6ppts
|
|
2.2ppts
|
Core
EPS
|
49.7p
|
|
(1)
|
|
5
|
|
136.2p
|
|
8
|
|
14
|
Cash
generated from operations
|
2,499
|
|
–
|
|
|
|
5,275
|
|
19
|
|
|
|
|
Further progress in R&D with growth prospects strengthened in
all key therapeutic areas:
|
●
|
Infectious
Diseases: EU approval for Arexvy in adults aged 50-59 at
increased risk, and positive new data indicates protection over
three RSV seasons; US FDA file acceptance for gepotidacin in
uncomplicated UTI; bepirovirsen granted SENKU designation in Japan
for chronic hepatitis B
|
●
|
HIV:
Real-world studies demonstrate 99% effectiveness for Apretude, the only approved long-acting
medicine for HIV PrEP
|
●
|
Respiratory/Immunology:
Positive results announced for ultra long-acting biologic,
depemokimab, for phase III ANCHOR trial (CRSwNP)(1) and full results
for SWIFT-1&2 trials (severe asthma) supporting filing for
severe asthma and CRSwNP before year end with dual indication,
potential launch in 2025. Positive headline results announced for
phase III MATINEE trial for Nucala in COPD. Nucala approved in Japan for
CRSwNP
|
●
|
Oncology: Expanded
US FDA approval for Jemperli in endometrial cancer;
Blenrep filed in US, EU and
Japan and received Breakthrough Therapy Designation in China; US
FDA Breakthrough Therapy Designation for GSK5764227 (B7-H3-targeted
antibody-drug conjugate) in small-cell lung cancer
|
2024 guidance confirmed; Q3 2024 dividend of 15p declared and
continue to expect 60p full year dividend:
|
●
|
2024
turnover growth of 7% to 9%; Core operating profit growth of 11% to
13%; Core EPS growth of 10% to 12%. Expected to deliver broadly
around the middle of existing ranges
|
Guidance all at CER and excluding COVID-19
solutions
Emma Walmsley, Chief Executive Officer, GSK:
“We have
delivered another quarter of sales and core operating profit
growth, and further good progress in R&D. Strong growth in
specialty medicines helped to offset lower vaccine sales and
reflected successful new product launches in oncology and HIV, as
well as the resilience we have now built into GSK’s portfolio
and performance. Our pipeline continues to strengthen with 11
positive phase III trials reported so far this year and we are
currently planning launches for 5 major new product approval
opportunities next year: Blenrep, Depemokimab, Nucala for COPD, Gepotidacin, and our
new vaccine to prevent meningitis (MenABCWY). We also resolved the
vast majority of Zantac
litigation in the quarter, to remove uncertainty and so we can
focus forward. All this means we are on track to deliver our 2024
guidance, and we are even more confident in our 2026 and 2031
outlooks.”
|
The Total results are presented in summary above
and on page 8 and Core results reconciliations are presented on
pages 20 and 23. Core results are a non-IFRS measure that may be
considered in addition to, but not as a substitute for, or superior
to, information presented in accordance with IFRS. The following
terms are defined on page 52: Core results, £% or AER% growth,
CER% growth, COVID-19 solutions, turnover excluding COVID-19
solutions; and other non-IFRS measures. GSK provides guidance on a
Core results basis only, for the reasons set out on page 18. All
expectations, guidance and targets regarding future performance and
dividend payments should be read together with ‘Guidance and
outlooks, assumptions and cautionary statements’ on page 54.
(1) CRSwNP - Chronic rhinosinusitis with nasal
polyps.
2024 Guidance
GSK
confirms its full-year sales, core profit and EPS guidance at
constant exchange rates (CER) and expects to deliver broadly around
the middle of the existing ranges. All guidance, expectations and
full-year growth rates exclude any contributions from COVID-19
solutions.
Despite
some challenges this quarter, particularly with lower than
anticipated vaccine demand and a tough comparator, GSK delivered
growth in both sales and core profits in the quarter at CER.
Specialty Medicines continue to grow strongly, particularly
reflecting successful new launches in Oncology and for long-acting
HIV medicines. General Medicines, including Trelegy, also continued to perform
better than expected.
Sales
are expected to grow between 7 to 9 per cent range at CER. Improved
sales performances in Specialty and General Medicines are expected
to offset lower sales growth of Vaccines this year, primarily due
to lower sales of Arexvy
and Shingrix. Key factors
driving Arexvy performance
are guideline restrictions, prioritisation of COVID vaccination in
the US, and an unfavourable comparison to the vaccine’s
outstanding launch last year.
|
|
|
All Guidance excludes the contributions of COVID-19
solutions
|
Confirmed 2024 guidance at CER
|
Previous 2024 guidance at CER
|
Turnover
|
Increase between 7%
to 9%
|
Increase between 7%
to 9%
|
Core
operating profit
|
Increase between
11% to 13%
|
Increase between
11% to 13%
|
Core
earnings per share
|
Increase between
10% to 12%
|
Increase between
10% to 12%
|
This
guidance is supported by the following revised turnover
expectations for full-year 2024 at CER:
|
|
|
All turnover expectations exclude the contributions of COVID-19
solutions
|
Revised 2024 guidance at CER
|
Previous 2024 guidance at CER
|
Vaccines
|
Decrease low-single
digit per cent in turnover
|
Increase low to
mid-single digit per cent in turnover
|
Specialty
Medicines
|
Increase high teens
per cent in turnover
|
Increase mid to
high teens per cent in turnover
|
General
Medicines
|
Increase mid-single
digit per cent in turnover
|
Increase low to
mid-single digit per cent in turnover
|
Core
operating profit is expected to grow between 11 to 13 per cent at
CER. This is despite a 6 percentage point impact to operating
profit growth following the loss of the majority of Gardasil
royalties effective from the beginning of 2024. SG&A continues
to be expected to grow low-single digits, with effective cost
control driving operating leverage and further margin improvements.
R&D expenditure is expected to increase slightly below sales
growth and royalty income is expected to be around £600
million for the full year.
Core
earnings per share is expected to increase between 10 to 12 percent
at CER. Expectations for non-controlling interests remain unchanged
relative to 2023, and GSK continues to anticipate an increase in
the core effective tax rate to around 17% for the full year
following implementation of new global minimum corporate income tax
rules which came into effect from 1 January 2024 in line with the
Organisation for Economic Co-Operation and Development
‘Pillar 2’ model framework.
Additional commentary
Dividend
policy
The
Dividend policy and the expected pay-out ratio remain unchanged.
Consistent with this, and reflecting strong business performance
during the quarter, GSK has declared a dividend for Q3 2024 of 15p
per share and expects to declare a dividend of 60p per share for
the full year 2024.
COVID-19
solutions
For the
full year 2024, GSK does not anticipate any further COVID-19
pandemic-related sales or operating profit. Consequently, and in
comparison to 2023, it is anticipated that the full year growth in
sales and Core operating profit will be adversely impacted by one
and two percentage points, respectively.
Exchange
rates
If
exchange rates were to hold at the closing rates on 30 September
2024 ($1.34/£1, €1.20/£1 and Yen 191/£1) for
the rest of 2024, the estimated impact on 2024 Sterling turnover
growth for GSK would be -5% and if exchange gains or losses were
recognised at the same level as in 2023, the estimated impact on
2024 Sterling Core Operating Profit growth for GSK would be
-8%.
Results presentation
A
conference call and webcast for investors and analysts of the
quarterly results will be hosted by Emma Walmsley, CEO, at 12 noon
GMT (US EDT at 8 am) on 30 October 2024. Presentation
materials will be published on www.gsk.com prior to the webcast and
a transcript of the webcast will be published
subsequently.
Notwithstanding the
inclusion of weblinks, information available on the company’s
website, or from non GSK sources, is not incorporated by reference
into this Results Announcement.
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
Q3
2024
|
|
Year
to date
|
|
£m
|
|
Growth
AER%
|
|
Growth
CER%
|
|
£m
|
|
Growth
AER%
|
|
Growth
CER%
|
Shingles
|
739
|
|
(10)
|
|
(7)
|
|
2,516
|
|
(1)
|
|
2
|
Meningitis
|
520
|
|
18
|
|
22
|
|
1,142
|
|
16
|
|
20
|
RSV
(Arexvy)
|
188
|
|
(73)
|
|
(72)
|
|
432
|
|
(39)
|
|
(37)
|
Influenza
|
283
|
|
(24)
|
|
(22)
|
|
303
|
|
(26)
|
|
(23)
|
Established
Vaccines
|
920
|
|
6
|
|
10
|
|
2,533
|
|
2
|
|
5
|
Vaccines ex COVID
|
2,650
|
|
(18)
|
|
(15)
|
|
6,926
|
|
(3)
|
|
–
|
Pandemic
vaccines
|
–
|
|
(100)
|
|
>(100)
|
|
–
|
|
(100)
|
|
(100)
|
Vaccines
|
2,650
|
|
(18)
|
|
(15)
|
|
6,926
|
|
(5)
|
|
(2)
|
HIV
|
1,750
|
|
8
|
|
12
|
|
5,120
|
|
10
|
|
13
|
Respiratory/Immunology
and Other
|
843
|
|
10
|
|
14
|
|
2,389
|
|
10
|
|
15
|
Oncology
|
373
|
|
86
|
|
94
|
|
1,002
|
|
>100
|
|
>100
|
Specialty Medicines ex COVID
|
2,966
|
|
14
|
|
19
|
|
8,511
|
|
16
|
|
20
|
Xevudy
|
–
|
|
–
|
|
–
|
|
1
|
|
(97)
|
|
(97)
|
Specialty Medicines
|
2,966
|
|
14
|
|
19
|
|
8,512
|
|
16
|
|
20
|
Respiratory
|
1,617
|
|
6
|
|
11
|
|
5,407
|
|
6
|
|
11
|
Other
General Medicines
|
779
|
|
(5)
|
|
–
|
|
2,414
|
|
(6)
|
|
(1)
|
General Medicines
|
2,396
|
|
3
|
|
7
|
|
7,821
|
|
2
|
|
7
|
Total
|
8,012
|
|
(2)
|
|
2
|
|
23,259
|
|
4
|
|
8
|
Total ex COVID
|
8,012
|
|
(2)
|
|
2
|
|
23,258
|
|
5
|
|
9
|
By
Region:
|
|
|
|
|
|
|
|
|
|
|
|
US
|
4,321
|
|
(5)
|
|
(1)
|
|
12,057
|
|
5
|
|
9
|
Europe
|
1,618
|
|
4
|
|
6
|
|
4,911
|
|
–
|
|
2
|
International
|
2,073
|
|
2
|
|
8
|
|
6,291
|
|
6
|
|
12
|
Total
|
8,012
|
|
(2)
|
|
2
|
|
23,259
|
|
4
|
|
8
|
Turnover ex COVID is excluding COVID-19 solutions
during the years from 2020 to 2023 and is a non-IFRS measure
defined on page 52 with the reconciliation to the IFRS measure
Turnover included in the table above. Financial Performance –
Q3 2024 results unless otherwise stated, growth % and
commentary at CER.
|
|
|
|
|
|
|
|
|
|
|
|
Q3 2024
|
|
Year to date
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Vaccines
|
Total
|
2,650
|
(18%)
|
(15%)
|
|
6,926
|
(5%)
|
(2%)
|
Excluding COVID
|
2,650
|
(18%)
|
(15%)
|
|
6,926
|
(3%)
|
–%
|
In Q3 2024 and Total Vaccines sales decreased,
while in YTD ex COVID sales were broadly stable. Performance was
primarily impacted by lower sales of Arexvy with changes in ACIP guidelines, prioritisation of
COVID-19 vaccinations in the quarter, lower seasonal infections and
a tough comparator following launch stocking last year.
Shingrix
decreased in the quarter, but grew
YTD, as lower demand in the US more than offset growth in
International. Meningitis vaccines continued to show strong demand
with double-digit sales growth. The overall Vaccines YTD
performance was adversely impacted due to COVID-19 solution sales
in 2023.
|
|
|
|
|
|
|
|
Shingles
|
739
|
(10%)
|
(7%)
|
|
2,516
|
(1%)
|
2%
|
Sales
of Shingrix, a vaccine
against herpes zoster (shingles), decreased in the quarter, while
continuing to grow YTD.
In the
US, sales in the quarter decreased by 23%. The US cumulative
immunisation penetration rate at the end of Q2 2024 reached 39% of
the more than 120 million US adults(1) currently
recommended to receive Shingrix, up six percentage
points(2)
since the end of Q2 2023. However the pace of increased penetration
is slowing reflecting the continued challenge of activating
harder-to-reach consumers. Shingrix sales YTD were also negatively
impacted by changes in retail vaccine prioritisation in part due to
a transition to a new CMS(3) rule that changed
how pharmacies process reimbursements from payers.
Shingrix grew significantly in
International in the quarter and YTD, driven by a national
immunisation programme in Australia and supply to our co-promotion
partner in China. In Europe, Shingrix decreased in the quarter and
YTD from lower demand in Germany partially offset by expanded
public funding in other countries. Markets outside the US now
represent 58% of Q3 2024 global sales (Q3 2023: 50%), with
Shingrix launched in 48
countries. The overwhelming majority of ex-US Shingrix opportunity is concentrated in
10 markets where the average immunisation rate is around
6%.
Footnotes:
(1)
|
United States Census Bureau,
International Database, Year 2024 (2) Reflects latest United States
Census Bureau data and delivery orders (3) Centers for Medicare
& Medicaid Services
|
|
Q3
2024
|
|
Year
to date
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Meningitis
|
520
|
18%
|
22%
|
|
1,142
|
16%
|
20%
|
In Q3
2024 and YTD, Meningitis vaccines grew double-digit achieving
record quarterly sales. Bexsero, a vaccine against meningitis
B, grew primarily reflecting Centers for Disease Control and
Prevention (CDC) purchasing patterns and favourable pricing mix in
the US, recommendation in Germany and the launch in Vietnam partly
offset by tender phasing in Europe during H1 2024. Growth of
Menveo, a vaccine against
meningitis ACWY, benefitted from CDC purchasing patterns in the US
and favourable H1 2024 delivery timing in
International.
|
|
|
|
|
|
|
|
RSV
(Arexvy)
|
188
|
(73%)
|
(72%)
|
|
432
|
(39%)
|
(37%)
|
Arexvy, a respiratory syncytial virus
(RSV) vaccine for older adults, declined in both the quarter and
YTD. US sales in Q3 2024 decreased due to a more restrictive
recommendation from the Advisory Committee on Immunization
Practices (ACIP) for individuals aged 60 to 74, prioritisation of
COVID vaccinations related to a resurgence of COVID-19 infection
rates and lower channel inventory versus significant launch
stocking in the prior year. Arexvy maintained around two-thirds of
the vaccination share YTD in retail where the overwhelming majority
of doses are administered. More than nine million of the 85 million
US adults(1) aged 60 and older
at risk have been protected by Arexvy since the launch in Q3 2023. The
performance in YTD also reflected new launch inventory build in
Australia and Brazil, initial tender deliveries in Saudi Arabia and
continued consumer uptake in Canada. While Arexvy is approved in 51 markets
globally, 16 countries had national RSV vaccination recommendations
for older adults and 6, including the US, had reimbursement
programmes in place at the quarter end.
|
|
|
|
|
|
|
|
Influenza
|
283
|
(24%)
|
(22%)
|
|
303
|
(26%)
|
(23%)
|
Fluarix/FluLaval sales declined in Q3
2024 driven by competitive pressure and volume phasing in the US
and lower demand across other regions.
|
|
|
|
|
|
|
|
Established
Vaccines
|
920
|
6%
|
10%
|
|
2,533
|
2%
|
5%
|
Established
Vaccines grew in Q3 2024, reflecting favourable CDC purchasing
patterns across several paediatric brands together with increased
demand for Boostrix. This
was partly offset by the timing of deliveries and competitive
pressure for Synflorix in
International. YTD sales were also impacted by adverse CDC
stockpile movements for Rotarix and Infanrix/Pediarix in the US, partly
offset by increased supply of measles, mumps, rubella, and
varicella (MMR/V) vaccines in International.
|
|
|
|
|
|
|
|
|
Specialty Medicines
|
Total
|
2,966
|
14%
|
19%
|
|
8,512
|
16%
|
20%
|
Excluding COVID
|
2,966
|
14%
|
19%
|
|
8,511
|
16%
|
20%
|
Specialty
Medicines sales increased by double digits in the quarter,
reflecting continued growth across disease areas, with strong
performances in HIV, Respiratory/Immunology and
Oncology.
|
|
|
|
|
|
|
|
HIV
|
1,750
|
8%
|
12%
|
|
5,120
|
10%
|
13%
|
HIV
sales grew double digits in both the quarter and YTD, primarily
reflecting a 2 percentage point increase in market share compared
to the prior period. This was driven by strong patient demand for
Oral 2DR (Dovato, Juluca)
and long-acting medicines (Cabenuva, Apretude) and favourable
in-year pricing, including the positive impact from channel mix
related to adjustments to returns and rebates.
|
|
|
|
|
|
|
|
Oral
2DR
|
730
|
13%
|
17%
|
|
2,097
|
17%
|
21%
|
Sales
of oral 2-drug regimens for the quarter were £730 million,
which now represents 42% of the total HIV portfolio. Dovato continues to be the highest
selling product in the HIV portfolio with sales of £567
million in the quarter and growing 23% versus Q3 2023.
|
|
|
|
|
|
|
|
Long-Acting
Medicines
|
314
|
43%
|
49%
|
|
898
|
54%
|
59%
|
Long-Acting
Medicine sales in the quarter now represent 18% of the total HIV
portfolio compared to 13% for Q3 2023 and contributed over 50% of
the total HIV growth. Cabenuva sales reached £245
million in Q3 2024, growing 40% due to strong patient demand.
Apretude sales in Q3 2024
were £69 million, growing 95% compared to Q3
2023.
|
|
|
|
|
|
|
|
Respiratory/Immunology
and Other
|
843
|
10%
|
14%
|
|
2,389
|
10%
|
15%
|
Sales
primarily comprise contributions from Nucala in respiratory and Benlysta in immunology. In Q3 2024,
double digit sales growth continued for Nucala and Benlysta, driven by patient demand
globally across US, European and International
markets.
Footnote:
(1)
|
United States Census Bureau, International
Database, Year 2024
|
|
|
|
|
|
|
|
|
|
Q3
2024
|
|
Year
to date
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Nucala
|
444
|
8%
|
12%
|
|
1,300
|
10%
|
14%
|
Nucala, is an IL-5 antagonist
monoclonal antibody treatment for severe asthma, with additional
indications including chronic rhinosinusitis with nasal polyps,
eosinophilic granulomatosis with polyangiitis (EGPA), and
hypereosinophilic syndrome (HES). In Q3 2024, sales growth
continued to be strong, particularly in Europe and International
regions, reflecting higher patient demand for treatments addressing
eosinophilic-led disease.
|
|
|
|
|
|
|
|
Benlysta
|
389
|
11%
|
16%
|
|
1,067
|
11%
|
15%
|
Benlysta, a monoclonal antibody
treatment for Lupus, continues to grow consistently in Q3 2024,
representing strong demand and volume growth in US, European and
International regions, with bio-penetration rates having increased
across many markets.
|
|
|
|
|
|
|
|
Oncology
|
373
|
86%
|
94%
|
|
1,002
|
>100%
|
>100%
|
In Q3
2024, 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. Jemperli, a
medicine for front-line treatment in combination with chemotherapy
for patients with dMMR/MSI-H primary advanced or recurrent
endometrial cancer, received US FDA approval in the quarter
expanding the indication to include all adult patients with primary
advanced or recurrent endometrial cancer. Jemperli sales continued to grow
strongly with sales of £130 million delivered in the quarter.
Ojjaara/Omjjara, a
treatment for myelofibrosis patients with anaemia, launched in the
US in Q3 2023, in the UK and Germany in Q1 2024, and in Japan in Q3
2024, has seen strong uptake since launch and delivered £98
million of sales in the quarter.
|
|
|
|
|
|
|
|
Zejula
|
144
|
3%
|
6%
|
|
450
|
21%
|
25%
|
Zejula, a PARP inhibitor treatment for
ovarian cancer, continues to grow globally across all regions with
sustained increase in patient demand and higher volumes, further
enhanced by positive price impacts in the US. Growth in the quarter
was adversely impacted by channel inventory build associated with
the launch of the tablet formulation in the US in Q3 2023,
partially offset by favourable impacts from comparator adjustments
to returns and rebates.
|
|
|
|
|
|
|
|
General Medicines
|
2,396
|
3%
|
7%
|
|
7,821
|
2%
|
7%
|
Sales include contributions from both the
Respiratory and Other General Medicine portfolios. In Q3 2024,
sales growth increased primarily driven by Trelegy, a chronic obstructive pulmonary disease (COPD)
and asthma medicine, with strong demand across all regions.
Performance was adversely impacted by the removal of the Average
Manufacturer Price (AMP) cap on Medicaid drug prices in the US.
This removal impacted Advair, Flovent,
and Lamictal due to significant pricing reductions, reduced
commercial contracting, and the decision to discontinue
branded Flovent. However, this has been fully offset by the
increased use of authorised generic versions of Advair and Flovent while, significantly, continuing to provide access
to patients.
|
|
|
|
|
|
|
|
Respiratory
|
1,617
|
6%
|
11%
|
|
5,407
|
6%
|
11%
|
In Q3
2024 and YTD, sales growth reflected Trelegy's strong performance in all
regions and the increased demand for Anoro, particularly in Europe and
International. Seretide/Advair also grew in the
quarter due to favourable impacts from comparator adjustments in
the US to return and rebates. As mentioned above, in the US adverse
impacts from the removal of the AMP cap were fully offset by the
increased use of authorised generic versions of Advair and Flovent, providing access to medicines
for patients.
|
|
|
|
|
|
|
|
Trelegy
|
600
|
12%
|
16%
|
|
2,033
|
26%
|
31%
|
Trelegy is the most prescribed single
inhaler triple therapy (SITT) treatment worldwide for COPD and
asthma. In Q3 2024 sales grew 16% with continued strong growth
across all regions, reflecting patient demand, single-inhaled
triple therapy class growth, and increased market share. YTD growth
of 31% was positively impacted by favourable US pricing impacts in
the first six months of 2024, including adjustments to return and
rebates, which moderated in Q3 2024.
|
|
|
|
|
|
|
|
Seretide/Advair
|
218
|
8%
|
13%
|
|
798
|
(8%)
|
(4%)
|
Seretide/Advair is a combination
treatment used to treat asthma and COPD. In Q3 2024, sales grew 13%
reflecting growth in the US driven by favourable impacts from
comparator adjustments to returns and rebates, partially offset by
decreases in sales in Europe and International from continued
generic erosion by competitor products. The decline year to date
reflected continued generic erosion from competitor products in
Europe and International, partially offset by mid-single digit
growth in the US, driven by favourable impacts from comparator
adjustments to returns and rebates, and the continued use of
authorised generics offsetting the removal of the AMP cap on
Medicaid drug prices.
|
|
|
|
|
|
|
|
Other
General Medicines
|
779
|
(5%)
|
–%
|
|
2,414
|
(6%)
|
(1%)
|
Performance in Q3
2024 remained consistent with YTD performance, and continued to be
impacted by ongoing generic competition globally.
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
|
By
Region
|
|
|
|
|
|
|
|
|
|
Q3
2024
|
|
Year
to date
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
US
|
Total
|
4,321
|
(5%)
|
(1%)
|
|
12,057
|
5%
|
9%
|
|
Excluding COVID
|
4,321
|
(5%)
|
(1%)
|
|
12,057
|
5%
|
9%
|
Vaccine
sales decreased in Q3 2024 and YTD primarily in Arexvy due to a more restrictive
recommendation from the from the Advisory Committee on Immunization
Practices (ACIP) for individuals aged 60 to 74, RSV vaccine
de-prioritisation in the current season due to earlier COVID-19
vaccination and lower channel inventory versus a significant launch
stocking in the comparator quarter. Shingrix also decreased reflecting
lower demand driven by the continued challenge of activating
harder-to-reach consumers. Established Vaccines grew due to
increased demand partly offset by adverse CDC stockpile
movements.
Specialty Medicines
growth continued in Q3 2024 and YTD driven by Oncology and HIV
performance and continued growth in Nucala and Benlysta.
General
Medicine’s growth in Q3 2024 and YTD was primarily driven by
increased demand for Trelegy, with strong volume growth
driven by patient demand, growth of the SITT market, and price
benefits from channel mix. 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
|
1,618
|
4%
|
6%
|
|
4,911
|
–%
|
2%
|
|
Excluding COVID
|
1,618
|
4%
|
6%
|
|
4,911
|
3%
|
5%
|
In Q3
2024, Vaccine sales growth was broadly flat driven by Bexsero recommendation in Germany and
increased Established vaccines sales partly offset by lower
Shingrix demand in Germany.
YTD sales also reflected Shingrix growth across several markets
following public funding expansion.
Specialty Medicines
sales grew in the quarter and YTD by a double-digit percentage due
to the performance in Oncology, Benlysta in immunology, and
Nucala in respiratory
including the impact of new indication launches. HIV growth
continued in the quarter and YTD at a high single digit
percentage.
General
Medicines sales were strong in the quarter with mid-single digit
growth, reflecting strong performance on Trelegy and Anoro, partially offset by declines
across other general medicines. YTD performance remains broadly
stable.
|
|
|
|
|
|
|
|
|
International
|
Total
|
2,073
|
2%
|
8%
|
|
6,291
|
6%
|
12%
|
|
Excluding COVID
|
2,073
|
2%
|
8%
|
|
6,290
|
7%
|
13%
|
In Q3
2024, sales increased 8% which reflected year-on-year exchange
movements in several International markets compared to Q3
2023.
Vaccines' strong
growth in Q3 2024 and YTD was driven by Shingrix related to the national
immunisation programme in Australia and supply to our co-promotion
partner in China. Established vaccines sales declined in Q3 2024
impacted by the timing of deliveries across the region, lower
demand and competitive pressure for Synflorix and Cervarix, but grew YTD on increased
supply and higher demand for MMR/V vaccines and Boostrix.
Specialty
Medicine’s double-digit growth in the quarter and YTD was
driven by HIV, Nucala in
Respiratory, Benlysta in
Immunology, and Zejula in
Oncology.
General
Medicines sales grew low single digit percentage in the quarter and
YTD, with strong growth in Trelegy partially offset by a decrease
in other general medicine products.
|
|
|
|
|
|
|
|
|
|
|
|
Total
Results
|
Q3
2024
|
|
Year
to date
|
|
£m
|
|
%
AER
|
|
%
CER
|
|
£m
|
|
%
AER
|
|
%
CER
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
8,012
|
|
(2)
|
|
2
|
|
23,259
|
|
4
|
|
8
|
Cost of
sales
|
(2,397)
|
|
6
|
|
8
|
|
(6,489)
|
|
6
|
|
8
|
Selling, general
and administration
|
(3,800)
|
|
66
|
|
72
|
|
(8,352)
|
|
25
|
|
29
|
Research and
development
|
(1,459)
|
|
(7)
|
|
(5)
|
|
(4,370)
|
|
5
|
|
7
|
Royalty
income
|
168
|
|
(46)
|
|
(46)
|
|
463
|
|
(36)
|
|
(36)
|
Other
operating income/(expense)
|
(335)
|
|
|
|
|
|
(1,186)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
189
|
|
(90)
|
|
(86)
|
|
3,325
|
|
(46)
|
|
(41)
|
Net
finance expense
|
(124)
|
|
(22)
|
|
(19)
|
|
(408)
|
|
(16)
|
|
(14)
|
Share
of after tax profit/(loss) of associates
and joint ventures
|
(1)
|
|
|
|
|
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
before taxation
|
64
|
|
(96)
|
|
(92)
|
|
2,914
|
|
(49)
|
|
(43)
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
1
|
|
|
|
|
|
(464)
|
|
|
|
|
Tax rate %
|
(1.6%)
|
|
|
|
|
|
15.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
after taxation
|
65
|
|
(96)
|
|
(91)
|
|
2,450
|
|
(50)
|
|
(45)
|
Profit
attributable to non-controlling interests
|
123
|
|
|
|
|
|
289
|
|
|
|
|
Profit/(loss)
attributable to shareholders
|
(58)
|
|
|
|
|
|
2,161
|
|
|
|
|
|
65
|
|
(96)
|
|
(91)
|
|
2,450
|
|
(50)
|
|
(45)
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) per
share
|
(1.4)p
|
|
>(100)
|
|
(100)
|
|
53.0p
|
|
(53)
|
|
(48)
|
Financial Performance – Q3 2024 results
unless otherwise stated, growth % and commentary at
CER.
|
|
Core
results
Reconciliations
between Total results and Core results for Q3 2024, Q3 2023, YTD
2024 and YTD 2023 are set out on pages 20, 21, 23 and
24.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 2024
|
|
Year to date
|
|
£m
|
|
%
AER
|
|
%
CER
|
|
£m
|
|
%
AER
|
|
%
CER
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
8,012
|
|
(2)
|
|
2
|
|
23,259
|
|
4
|
|
8
|
Cost of
sales
|
(1,921)
|
|
(7)
|
|
(5)
|
|
(5,531)
|
|
–
|
|
1
|
Selling,
general and administration
|
(2,070)
|
|
(5)
|
|
(2)
|
|
(6,272)
|
|
(3)
|
|
1
|
Research
and development
|
(1,428)
|
|
–
|
|
3
|
|
(4,202)
|
|
6
|
|
8
|
Royalty
income
|
168
|
|
(46)
|
|
(46)
|
|
463
|
|
(36)
|
|
(36)
|
|
|
|
|
|
|
|
|
|
|
|
|
Core
operating profit
|
2,761
|
|
–
|
|
5
|
|
7,717
|
|
10
|
|
16
|
|
|
|
|
|
|
|
|
|
|
|
|
Core
profit before taxation
|
2,646
|
|
1
|
|
7
|
|
7,320
|
|
12
|
|
18
|
Taxation
|
(461)
|
|
14
|
|
21
|
|
(1,288)
|
|
26
|
|
33
|
Tax rate %
|
17.4%
|
|
|
|
|
|
17.6%
|
|
|
|
|
Core
profit after taxation
|
2,185
|
|
(1)
|
|
5
|
|
6,032
|
|
9
|
|
15
|
Core
profit attributable to non-controlling
interests
|
157
|
|
|
|
|
|
481
|
|
|
|
|
Core
profit attributable to shareholders
|
2,028
|
|
|
|
|
|
5,551
|
|
|
|
|
|
2,185
|
|
(1)
|
|
5
|
|
6,032
|
|
9
|
|
15
|
Core
Earnings per share
|
49.7p
|
|
(1)
|
|
5
|
|
136.2p
|
|
8
|
|
14
|
|
|
|
|
|
|
|
|
|
|
|
Q3 2024
|
|
Year to date
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Cost of
sales
|
Total
|
2,397
|
6%
|
8%
|
|
6,489
|
6%
|
8%
|
% of sales
|
29.9%
|
2.0%
|
1.5%
|
|
27.9%
|
0.3%
|
(0.2%)
|
Core
|
1,921
|
(7%)
|
(5%)
|
|
5,531
|
–%
|
1%
|
% of sales
|
24.0%
|
(1.5%)
|
(1.9%)
|
|
23.8%
|
(1.1%)
|
(1.5%)
|
Total
cost of sales as a percentage of sales increased in the quarter
primarily due to additional amortisation for Zejula and Jemperli.
Core
cost of sales as a percentage of sales was down in the quarter and
year to date. The quarter and year to date benefitted from price
benefits from channel mix and adjustments to returns and rebates in
the US, as well as ongoing mix benefits in higher margin Specialty
Medicines products. The quarter also benefitted from a favourable
comparator to adverse inventory provision adjustments in Q3
2023.
|
|
|
|
|
|
|
|
|
|
|
Q3
2024
|
|
Year
to date
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Selling, general
& administration
|
Total
|
3,800
|
66%
|
72%
|
|
8,352
|
25%
|
29%
|
% of sales
|
47.4%
|
19.2%
|
19.1%
|
|
35.9%
|
5.8%
|
5.8%
|
Core
|
2,070
|
(5%)
|
(2%)
|
|
6,272
|
(3%)
|
1%
|
% of sales
|
25.8%
|
(1.0%)
|
(1.0%)
|
|
27.0%
|
(1.9%)
|
(2.0%)
|
Total
SG&A growth in the quarter and year to date was primarily
driven by the increase in Significant legal costs reflecting a
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 (see details on page
38).
In the
quarter and year to date, Core SG&A improved as a percentage of
sales due to continued disciplined investment to support global
market expansion and disease awareness particularly for
Arexvy and Shingrix and investment behind
long-acting HIV medicines. The quarter also benefited from a
favourable comparator to Q3 2023 due to spend phasing and
investment behind the US launch of Arexvy in 2023. The year to date growth
was partly offset by a 2 percentage point favourable impact of the
reversal of the legal provision taken in Q1 2023 for the
Zejula royalty dispute,
following a successful appeal.
|
|
|
|
|
|
|
|
|
|
|
Q3
2024
|
|
Year
to date
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Research
&
development
|
Total
|
1,459
|
(7%)
|
(5%)
|
|
4,370
|
5%
|
7%
|
% of sales
|
18.2%
|
(1.1%)
|
(1.4%)
|
|
18.8%
|
–%
|
(0.2%)
|
Core
|
1,428
|
–%
|
3%
|
|
4,202
|
6%
|
8%
|
% of sales
|
17.8%
|
0.3%
|
–%
|
|
18.1%
|
0.3%
|
–%
|
Total
R&D growth in the year to date is driven by an increase in Core
R&D expense, partly offset by lower impairment charges compared
with the same quarter and year to date in 2023.
Year to
date, Core R&D expense increased due to continued investment
across the portfolio. In Specialty Medicines, investment increased
to support late-stage clinical development programmes for
camlipixant (refractory chronic cough), the long acting TSLP asset
acquired as part of the Aiolos Bio, Inc. (Aiolos) acquisition, and
bepirovirsen (chronic hepatitis B), with ongoing strong investment
in depemokimab (asthma and eosinophilic inflammation). In Oncology,
investment increased in Jemperli (endometrial cancer), and
antibody-drug-conjugates including those acquired from Hansoh
Pharma at the end of 2023. This was partly offset by cost decreases
following the launches of Arexvy and Ojjaara, and progression to completion
of Zejula and Blenrep studies. In Vaccines, clinical
trial programmes associated with the pneumococcal Multi Antigen
Presenting System (MAPS) and mRNA continued to drive investment.
HIV investment increased on next-generation long-acting treatment
and preventative medicines.
These
were also the main drivers of Core R&D expense growth in the
quarter.
|
|
|
|
|
|
|
|
|
|
|
Q3
2024
|
|
Year
to date
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Royalty
income
|
Total
|
168
|
(46%)
|
(46%)
|
|
463
|
(36%)
|
(36%)
|
|
Core
|
168
|
(46%)
|
(46%)
|
|
463
|
(36%)
|
(36%)
|
The
decrease in Total and Core royalty income in Q3 2024 and year to
date primarily reflected the cessation of the majority of Gardasil
royalties at the end of 2023, with Q3 2024 Gardasil royalties of
£8 million (Q3 2023: £189 million). This was partly
offset by increases in Kesimpta and Biktarvy
royalties.
|
|
|
|
|
|
|
|
|
|
|
Q3
2024
|
|
Year
to date
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Other
operating
income/(expense)
|
Total
|
(335)
|
9%
|
9%
|
|
(1,186)
|
>(100%)
|
>(100%)
|
In Q3
2024 the other operating expense reflected a charge of £359
million (Q3 2023: £576 million) principally arising from the
remeasurement of contingent consideration liabilities (CCL)
primarily reflecting improved longer term HIV prospects partly
offset by favourable foreign currency movements, an increase in
liability for the Vaccines CCL, and the remeasurement of the
Pfizer, Inc. (Pfizer) put option. In the quarter, there were no
fair value movements recorded for Haleon plc (Haleon) shares (Q3
2023: £184 million gain) following the sale of the remaining
shares in May 2024. Other net income was comparable to the same
period last year at £24 million (Q3 2023: £25
million).
The
year to date other operating expense reflected a charge of
£1,422 million (YTD 2023: £116 million) principally
arising from the remeasurement of CCLs primarily reflecting
improved longer term HIV prospects partly offset by favourable
foreign currency movements, an increase in liability for the
Vaccines CCL, and remeasurement of the Pfizer put option. This was
partly offset by a fair value gain of £22 million (YTD 2023:
£154 million gain) on the retained stake in Haleon, as well as
higher other net income of £214 million (YTD 2023: £170
million).
|
|
|
|
|
|
|
|
|
|
|
Q3
2024
|
|
Year
to date
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Operating
profit
|
Total
|
189
|
(90%)
|
(86%)
|
|
3,325
|
(46%)
|
(41%)
|
|
% of sales
|
2.4%
|
(21.6%)
|
(20.6%)
|
|
14.3%
|
(13.4%)
|
(12.5%)
|
|
Core
|
2,761
|
–%
|
5%
|
|
7,717
|
10%
|
16%
|
|
% of sales
|
34.5%
|
0.4%
|
1.0%
|
|
33.2%
|
1.6%
|
2.2%
|
Total
operating profit margin was lower in Q3 2024 and year to date
primarily due to a charge of £1.8 billion ($2.3 billion) for
the Zantac settlement (see
details on page 38), additional amortisation for Zejula and Jemperli, and no fair value movements
on Haleon shares (Q3 2023 and year to date fair value gain). This
was partly offset by lower charges in the quarter in the ViiV
Healthcare CCL reflecting favourable foreign currency movements
offset by improved longer term HIV prospects. In the year to date
higher CCL charges were driven by improved longer term HIV
prospects and other remeasurements, partly offset by favourable
foreign currency movements.
Core
operating profit in the quarter and year to date benefitted 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.
The year to date also includes a favourable impact from the
reversal of the legal provision taken in Q1 2023 for the
Zejula royalty dispute,
following a successful appeal. The adverse impact of lower sales of
COVID-19 solutions had minimal impact in the quarter on Core
operating profit growth and three percentage points year to date,
with minimal impact on Core operating profit margin.
|
|
|
|
|
|
|
|
|
|
|
Q3
2024
|
|
Year
to date
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Net
finance expense
|
Total
|
124
|
(22%)
|
(19%)
|
|
408
|
(16%)
|
(14%)
|
|
Core
|
114
|
(27%)
|
(24%)
|
|
394
|
(18%)
|
(16%)
|
The
decrease in net finance costs in Q3 2024 and year to date was
mainly driven by lower interest on short-term financing as a result
of cash received from the successful disposal of all Haleon shares
and savings from maturing bonds, partly offset by higher lease
interest expense. Year to date also benefitted from the net cost of
bond buybacks completed in Q1 2023.
|
|
|
|
|
|
|
|
|
|
|
Q3
2024
|
|
Year
to date
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Taxation
|
Total
|
(1)
|
>(100%)
|
(95%)
|
|
464
|
(40%)
|
(33%)
|
|
Tax rate %
|
(1.6%)
|
|
|
|
15.9%
|
|
|
|
Core
|
461
|
14%
|
21%
|
|
1,288
|
26%
|
33%
|
|
Tax rate %
|
17.4%
|
|
|
|
17.6%
|
|
|
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 is broadly 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.
|
|
|
|
|
|
|
|
|
|
|
Q3
2024
|
|
Year
to date
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
Non-controlling
interests
("NCIs")
|
Total
|
123
|
76%
|
84%
|
|
289
|
(13%)
|
(5%)
|
Core
|
157
|
(7%)
|
(5%)
|
|
481
|
15%
|
20%
|
The
increase in Total profit after taxation allocated to NCIs in the
quarter was primarily driven by higher ViiV Healthcare profits
(including a lower remeasurement loss on the CCL), partly offset by
lower net profits in some of the Group's other entities. The
decrease in the year to date Total profit after taxation allocated
to NCIs was driven by lower ViiV Healthcare Total profits
(including a higher remeasurement loss on the CCL) with an
allocation of £270 million (YTD 2023: £324 million),
partly offset by higher net profits in some of the Group's other
entities.
The
decrease in Core profit after taxation allocated to NCIs in Q3 2024
primarily reflected lower net profits in some of the Group’s
other entities with NCIs. The increase in the year to date Core
profit after taxation allocated to NCIs reflected higher core
profit allocations from ViiV Healthcare, with £462 million in
the year to date (YTD 2023: £412 million), as well as higher
net profits in some of the Group’s other entities with
NCIs.
|
|
|
|
|
|
|
|
|
|
|
Q3
2024
|
|
Year
to date
|
|
|
£p
|
AER
|
CER
|
|
£p
|
AER
|
CER
|
Earnings/(loss) per
share
|
Total
|
(1.4p)
|
>(100%)
|
(100%)
|
|
53.0p
|
(53%)
|
(48%)
|
Core
|
49.7p
|
(1%)
|
5%
|
|
136.2p
|
8%
|
14%
|
The
decrease in the Q3 2024 and year to date Total EPS is primarily due
to a charge of £1.8 billion ($2.3 billion) for the
Zantac settlement (see
details on page 38).
The
increase in the Core EPS in the quarter primarily reflected the
growth in Core operating profit as well as lower finance costs and
lower non-controlling interests, partly offset by a higher
effective taxation rate. The increase in the year to date Core EPS
is driven by the growth in Core operating profit and lower finance
costs, partly offset by higher non-controlling interests and a
higher effective taxation rate. Lower sales of COVID-19 solutions
reduced Core EPS by three percentage points in the year to
date.
Currency
impact on results
The
results for Q3 2024 are based on average exchange rates,
principally $1.31/£1, €1.19/£1 and Yen192/£1.
The period-end exchange rates were $1.34/£1,
€1.20/£1 and Yen 191/£1. Comparative exchange rates
are given on page 40.
|
|
|
|
|
|
|
|
|
|
|
Q3
2024
|
|
Year
to date
|
|
|
£m/£p
|
AER
|
CER
|
|
£m/£p
|
AER
|
CER
|
Turnover
|
|
8,012
|
(2%)
|
2%
|
|
23,259
|
4%
|
8%
|
Earnings/(loss) per
share
|
Total
|
(1.4p)
|
>(100%)
|
(100%)
|
|
53.0p
|
(53%)
|
(48%)
|
Core
|
49.7p
|
(1%)
|
5%
|
|
136.2p
|
8%
|
14%
|
In Q3
2024 and year to date, the adverse currency impact primarily
reflected the strengthening of Sterling against the US Dollar,
Euro, Yen and emerging market currencies. Exchange gains or losses
on the settlement of intercompany transactions had a marginal
impact on Total and Core EPS.
|
|
|
|
|
|
|
|
Cash
flow
|
|
Q3
2024
£m
|
|
Q3
2023
£m
|
|
9
months 2024
£m
|
|
9
months 2023
£m
|
Cash
generated from operations (£m)
|
2,499
|
|
2,508
|
|
5,275
|
|
4,415
|
Net
cash generated from operating activities (£m)
|
2,154
|
|
2,212
|
|
4,225
|
|
3,572
|
Free
cash inflow/(outflow)* (£m)
|
1,322
|
|
1,655
|
|
1,939
|
|
1,314
|
Free
cash flow growth (%)
|
(20%)
|
|
>100%
|
|
48%
|
|
(41%)
|
Free
cash flow conversion* (%)
|
>100%
|
|
>100%
|
|
90%
|
|
29%
|
Total
net debt** (£m)
|
12,847
|
|
17,589
|
|
12,847
|
|
17,589
|
*
|
Free cash flow and free cash flow conversion are
defined on page 52. Free cash flow is analysed on page
43.
|
**
|
Net debt is analysed on page
43.
|
Q3
2024
Cash
generated from operations for the quarter was £2,499 million
(Q3 2023: £2,508 million). The slight decrease primarily
reflected the timing of returns and rebates, including the impact
of the removal of the AMP cap, and various adverse movements in
other payables, including the phasing of trade payables. These were
largely offset by higher trade receivables in Q3 2023 due to the
outstanding 2023 launch of Arexvy in the US.
Total
contingent consideration cash payments in the quarter were
£309 million (Q3 2023: £281 million), including cash
payments made to Shionogi & Co. Ltd (Shionogi) of
£295 million (Q3 2023: £269 million). £305
million (Q3 2023: £278 million) of these were recognised
in cash flows from operating activities.
Free
cash inflow was £1,322 million for the quarter (Q3 2023:
£1,655 million). The decrease is driven by higher capital
expenditure on intangible assets including the £342 million
upfront payment to CureVac N.V (CureVac), higher tax payments and
higher dividends paid to non-controlling interests, partly offset
by higher proceeds from the sale of intangible assets.
9
months 2024
Cash
generated from operating activities was £5,275 million (9
months 2023: £4,415 million). The increase primarily reflected
higher Core operating profit, higher receivables' collections,
particularly for Arexvy,
and lower pension contributions. This was partly offset by the
timing of returns and rebates, including the impact of the removal
of the AMP cap.
Total
contingent consideration cash payments in 9 months 2024 were
£935 million (9 months 2023: £860 million),
including cash payments made to Shionogi of £900 million
(9 months 2023: £834 million). £924 million (9
months 2023: £853 million) of these were recognised in
cash flows from operating activities.
Free
cash inflow was £1,939 million for 9 months 2024 (9 months
2023: £1,314 million). The increase was primarily driven by
the increase in cash generated from operating activities, as well
as higher proceeds from the sale of intangible assets as well as
lower net interest paid and lower dividends paid to non-controlling
interests. These were partly offset by higher capital expenditure
on intangible assets including the £342 million upfront
payment to CureVac, and higher tax payments.
Total
Net debt
At 30
September 2024, net debt was £12,847 million, compared with
£15,040 million at 31 December 2023, comprising gross debt of
£16,059 million and cash and liquid investments of £3,212
million. See net debt information on page 42 and 43.
Net
debt decreased by £2,193 million primarily due to £1,939
million free cash inflow and £2,354 million proceeds from the
disposal of investments, primarily the sale of the remaining
retained stake in Haleon, and exchange on net debt of £504
million. This was partly offset by the net acquisition costs of
Aiolos and Elsie Biotechnologies for £748 million, and
dividends paid to shareholders of £1,832 million.
At 30
September 2024, GSK had short-term borrowings (including overdrafts
and lease liabilities) repayable within 12 months of £2,815
million and £1,417 million repayable in the subsequent
year.
|
|
|
Page
|
Q3 2024
pipeline highlights
|
14
|
ESG
|
16
|
Total
and Core results
|
18
|
Income
statement
|
26
|
Statement of
comprehensive income
|
27
|
Balance
sheet
|
28
|
Statement of
changes in equity
|
29
|
Cash
flow statement
|
30
|
Sales
tables
|
31
|
Segment
information
|
36
|
Legal
matters
|
38
|
Returns
to shareholders
|
39
|
Additional
information
|
40
|
Net
debt information
|
42
|
Post
balance sheet event
|
43
|
Related
party transactions
|
43
|
R&D
commentary
|
44
|
Reporting
definitions
|
52
|
Guidance and
outlooks, assumptions and cautionary statements
|
54
|
Independent
Auditor's review report to GSK plc
|
55
|
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.
|
Q3 2024 pipeline highlights (since
31 July 2024)
|
|
Medicine/vaccine
|
Trial
(indication, presentation)
|
Event
|
Regulatory
approvals or other regulatory actions
|
Arexvy
|
RSV,
adults aged 50-59 years at increased risk
|
Regulatory approval
(EU)
|
Bexsero
|
Meningitis
B
|
Regulatory full
approval (US)
|
Menveo
|
Liquid
formulation, meningitis ACWY
|
Positive CHMP
opinion (EU)
|
Nucala
|
Chronic
rhinosinusitis with nasal polyps
|
Regulatory approval
(JP)
|
Jemperli
|
RUBY
part 1 (OS overall population, 1L endometrial cancer)
|
Regulatory approval
(US)
|
Regulatory
submissions or acceptances
|
gepotidacin
|
EAGLE-2/3
(uncomplicated urinary tract infection)
|
Regulatory
submission accepted (US) with Priority Review
|
Blenrep
|
DREAMM-7/8 (2L+
multiple myeloma)
|
Regulatory
submission accepted (JP) with Orphan Drug designation and Priority
Review
|
Phase
III data readouts or other significant events
|
Arexvy
|
RSV,
adults aged 60 years and older
|
Positive phase III
data readout (season three)
|
Arexvy
|
RSV,
adults aged 18-49 years at increased risk; immunocompromised adults
aged 18+
|
Positive phase
IIIb, IIb data readout
|
Seasonal influenza
vaccine mRNA candidate
|
Seasonal influenza,
older and younger adults
|
Positive phase II
data readout
|
depemokimab
|
ANCHOR-1/2 (chronic
rhinosinusitis with nasal polyps)
|
Positive phase III
data readout
|
Nucala
|
MATINEE
(chronic obstructive pulmonary disease)
|
Positive phase III
data readout
|
Regulatory
designations and other significant events
|
bepirovirsen
|
B-Clear; B-Sure
(chronic hepatitis B)
|
SENKU
designation granted (JP)
|
Blenrep
|
DREAMM-7 (2L+
multiple myeloma)
|
Breakthrough
Therapy Designation and Priority Review granted (CN)
|
GSK5764227
(B7-H3-targeted antibody-drug conjugate)
|
Extensive-stage
small-cell lung cancer
|
Breakthrough
Therapy Designation granted (US)
|
Timing
|
Medicine/vaccine
|
Trial
(indication, presentation)
|
Event
|
H2
2024
|
Arexvy
|
RSV,
adults aged 50-59 years at increased risk
|
Regulatory decision
(JP)
|
Menveo
|
Liquid
formulation, meningitis ACWY
|
Regulatory decision
(EU)
|
depemokimab
|
SWIFT-1/2 (severe
asthma)
|
Regulatory
submission (US)
|
depemokimab
|
ANCHOR-1/2 (chronic
rhinosinusitis with nasal polyps)
|
Regulatory
submission (US)
|
Nucala
|
MATINEE
(chronic obstructive pulmonary disease)
|
Regulatory
submission (US)
|
Blenrep
|
DREAMM-7/8 (2L +
multiple myeloma)
|
Regulatory file
acceptance (US)
|
Blenrep
|
DREAMM-7 (2L +
multiple myeloma)
|
Regulatory
submission (CN)
|
Zejula
|
FIRST
(1L maintenance ovarian cancer)
|
Phase
III data readout
|
Zejula
|
ZEAL
(1L maintenance non-small cell lung cancer)
|
Phase
III data readout
|
linerixibat
|
GLISTEN
(cholestatic pruritus in primary biliary cholangitis)
|
Phase
III data readout
|
Anticipated news flow
continued
|
|
|
|
|
Timing
|
Medicine/vaccine
|
Trial (indication, presentation)
|
Event
|
H1
2025
|
MenABCWY
(gen 1) vaccine candidate
|
Meningococcal
ABCWY
|
Regulatory
decision (US)
|
Shingrix
|
Shingles,
adults aged 18+ years
|
Regulatory
decision (CN)
|
gepotidacin
|
EAGLE-2/3
(uncomplicated urinary tract infection)
|
Regulatory
decision (US)
|
gepotidacin
|
EAGLE-1
(urogenital gonorrhoea)
|
Regulatory
submission (US)
|
depemokimab
|
SWIFT-1/2
(severe asthma)
|
Regulatory
submission
(EU,
CN, JP)
|
depemokimab
|
ANCHOR-1/2
(chronic rhinosinusitis with nasal polyps)
|
Regulatory
submission
(EU,
CN, JP)
|
depemokimab
|
AGILE
(severe asthma)
|
Phase
III data readout
|
Nucala
|
Chronic
rhinosinusitis with nasal polyps
|
Regulatory
decision (CN)
|
Nucala
|
MATINEE
(chronic obstructive pulmonary disease)
|
Regulatory
decision (US)
|
Nucala
|
MATINEE
(chronic obstructive pulmonary disease)
|
Regulatory
submission
(CN,
EU)
|
Ventolin
|
Low
carbon MDI (asthma)
|
Phase
III data readout
|
Blenrep
|
DREAMM-7/8
(2L+ multiple myeloma)
|
Regulatory
decision (JP)
|
cobolimab
|
COSTAR
(non-small cell lung cancer)
|
Phase
III data readout
|
Jemperli
|
RUBY
part 1 (OS overall population, 1L endometrial cancer)
|
Regulatory
decision (EU)
|
linerixibat
|
GLISTEN
(cholestatic pruritus in primary biliary cholangitis)
|
Regulatory
submission
(US,
EU, CN)
|
H2
2025
|
Arexvy
|
RSV,
adults aged 18-49 years at increased risk
|
Regulatory
submission (US)
|
Bexsero
|
Meningococcal
B (infants)
|
Phase
III data read out
|
Bexsero
|
Meningococcal
B (infants)
|
Regulatory
submission (US)
|
gepotidacin
|
EAGLE-1
(urogenital gonorrhoea)
|
Regulatory
decision (US)
|
gepotidacin
|
EAGLE-J
(uncomplicated urinary tract infection)
|
Regulatory
submission (JP)
|
tebipenem
pivoxil
|
PIVOT-PO
(complicated urinary tract infection)
|
Phase
III data readout
|
tebipenem
pivoxil
|
PIVOT-PO
(complicated urinary tract infection)
|
Regulatory
submission (US)
|
camlipixant
|
CALM-1/2
(refractory chronic cough)
|
Phase
III data readout
|
camlipixant
|
CALM-1/2
(refractory chronic cough)
|
Regulatory
submission
(US,
EU)
|
depemokimab
|
SWIFT-1/2
(severe asthma)
|
Regulatory
decision (US)
|
depemokimab
|
ANCHOR-1/2
(chronic rhinosinusitis with nasal polyps)
|
Regulatory
decision (US)
|
depemokimab
|
NIMBLE
(asthma)
|
Phase
III data readout
|
Ventolin
|
Low
carbon MDI (asthma)
|
Regulatory
submission (EU)
|
Blenrep
|
DREAMM-7/8
(2L+ multiple myeloma)
|
Regulatory
decision
(US,
EU)
|
Blenrep
|
DREAMM-8
(2L + multiple myeloma)
|
Regulatory
submission (CN)
|
cobolimab
|
COSTAR,
(2L non-small cell lung cancer)
|
Regulatory
submission
(US,
EU)
|
linerixibat
|
GLISTEN
(cholestatic pruritus in primary biliary cholangitis)
|
Regulatory
decision (US)
|
linerixibat
|
GLISTEN
(cholestatic pruritus in primary biliary cholangitis)
|
Regulatory
submission (JP)
|
Refer
to pages 44 to 51 for further details on several key medicines and
vaccines in development by therapy area.
|
Trust: progress on our six priority
areas for responsible business
Building Trust by operating responsibly is
integral to GSK’s strategy and culture. This will support
growth and returns to shareholders, reduce risk, and help
GSK’s people thrive while delivering sustainable health
impact at scale. The Company has identified six Environmental,
Social, and Governance (ESG) focus areas that address what is most
material to GSK’s business and the issues that matter the
most to its stakeholders. Highlights below include activity since
Q2 2024 results. For more details on annual updates, please
see GSK's
ESG Performance Report 2023(1).
Access
Commitment:
to make GSK’s vaccines and
medicines available at value-based prices that are sustainable for
the business and implement access strategies that increase the use
of GSK’s vaccines and medicines to treat and protect
underserved people.
Progress since
Q2 2024:
|
|
●
|
In
October ViiV Healthcare announced a commitment to make at least two
million doses of CAB LA for PrEP available for procurement in
low-and middle-income countries during 2025-2026. This new
commitment triples the available supply versus 2024 to accelerate
access and meet growing demand where the HIV burden and unmet need
are the greatest.
|
●
|
ViiV
Healthcare continues to progress the rollout of the first
long-acting injectable for HIV pre-exposure prophylaxis (CAB LA for
PrEP) at record pace in Sub-Saharan Africa (SSA) and lower income
countries. In Q3 2024, ViiV started roll-out to 2 additional
countries - eSwatini and Ukraine – with our global partner
The United States President’s Emergency Plan for AIDS Relief
(PEPFAR) programme. Rollout of CAB LA for PrEP in low-income and
SSA countries at a not-for-profit price began in Zambia in February
2024, just two years after the U.S. FDA approval and is currently
supplied to key partners in 5 countries.
|
●
|
In
September, GSK donated(2) the 12 billionth
tablet of Albendazole which will help in the eradication of
lymphatic filariasis (LF) and treatment of soil transmitted
helminths (STH). Since 2000, GSK has been committed to change the
trajectory of NTDs by eliminating LF as a public health issue
worldwide. At the end of September, Brazil became the 20th country
to eliminate LF as a public health problem. GSK contributed to this
through support for diagnosis and transmission assessment
surveys.
|
●
|
Performance metrics
related to access are updated annually with related details in
GSK's ESG Performance Report
2023(1) on page
10.
|
Global health and health security
Commitment: develop
novel products and technologies to treat and prevent priority
diseases, including pandemic threats.
Progress since
Q2 2024:
|
|
●
|
In
September it was announced that GSK will commit €4.5m over
three years to Global Antibiotic Research and Development
partnership (Gard-P), to ensure equitable access to antibiotics in
lower-income countries. This funding aims to tackle the challenges
that hinder critical antibiotics from reaching those in need. More
information can be found here(3).
|
●
|
In
September, TRIC-TB, the European Union’s IMI2 programme for
developing new treatments for infectious diseases, successfully
delivered a Phase 2-ready tuberculosis clinical candidate,
alpibectir, that is being jointly developed by BioVersys and GSK.
More information can be found here(4).
|
●
|
Performance metrics
related to global health and health security are updated annually
with related details in GSK’s ESG Performance Report 2023 on
page 15.
|
Environment
Commitment:
committed to a net zero, nature-positive, healthier planet with
ambitious goals set for 2030 and 2045.
Progress since
Q2 2024:
|
|
●
|
GSK's
Worthing manufacturing facility has become the first(5) in the UK to
achieve BSI Kitemark Certification for Minimised Risk of
Antimicrobial Resistance. Achieving this rigorous international
certification demonstrates GSK's commitment to the responsible
manufacturing of antibiotics and ambition to ensure all global
antibiotic manufacturing sites are certified by the end of
2026.
|
●
|
The
Energize programme, which was co-founded by GSK and supports
suppliers to access renewable energy, announced its first deal
which includes four of GSK’s suppliers in Europe and will
support seven new solar energy projects in Spain, as well as
bringing additional renewable capacity to the European grid. This
marks an important step in our plan to reduce our value chain
emissions by 80% from 2020 to 2030.
|
●
|
Performance metrics
related to environment are updated annually with related details in
GSK’s ESG Performance Report 2023 on page 18.
|
Diversity, equity and inclusion
Commitment: create
a diverse, equitable and inclusive workplace; enhance recruitment
of diverse patient populations in GSK clinical trials; and support
diverse communities.
|
|
●
|
Performance metrics
related to diversity, equity and inclusion are updated annually
with related details in GSK’s ESG Performance Report 2023 on
page 26. More information on DEI at GSK can be found here(6).
|
Ethical standards
Commitment: promote
ethical behaviour across GSK’s business by supporting its
employees to do the right thing and working with suppliers that
share GSK’s standards and operate responsibly.
|
|
●
|
Performance metrics
related to ethical standards are updated annually with related
details in GSK’s ESG Performance Report 2023 on page
30.
|
Product governance
Commitment:
maintain robust quality and safety processes and responsibly use
data and new technologies.
|
|
●
|
Performance metrics
related to product governance are updated annually with related
details in GSK’s ESG Performance Report 2023 on page
35.
|
ESG rating performance
Detailed below is
how GSK performs in key ESG ratings.
|
|
|
|
External
benchmark
|
Current
score/ranking
|
Previous
score/ranking
|
Comments
|
S&P
Global’s Corporate Sustainability Assessment
|
78
|
80
|
Current
score updated September 2024
|
Access
to Medicines Index
|
4.06
|
4.23
|
Led the
bi-annual index since its inception in 2008; Updated bi-annually,
current results from Nov 2022
|
Antimicrobial
resistance benchmark
|
84%
|
86%
|
Led the
bi-annual benchmark since its inception in 2018; Current ranking
updated Nov 2021
|
CDP
Climate Change
|
A-
|
A-
|
Updated
annually, current scores updated February 2024 (for supplier
engagement, March 2023)
|
CDP
Water Security
|
A-
|
B
|
CDP
Forests (palm oil)
|
B
|
A-
|
CDP
Forests (timber)
|
B
|
B
|
CDP
supplier engagement rating
|
Leader
|
Leader
|
Sustainalytics
|
15.4
|
16.7
|
2nd
percentile in pharma subindustry group; lower score represents
lower risk. Current ranking updated May 2024
|
MSCI
|
AA
|
AA
|
Last
rating action date: September 2023
|
Moody’s ESG
solutions
|
62
|
61
|
Current
score updated August 2023
|
ISS
Corporate Rating
|
B+
|
B+
|
Current
score updated October 2024
|
FTSE4Good
|
Member
|
Member
|
Member
since 2004, latest review in June 2024
|
ShareAction’s
Workforce Disclosure Initiative
|
79%
|
77%
|
Current
score updated Jan 2024
|
Footnotes:
(1)
|
https://www.gsk.com/media/11009/esg-performance-report-2023.pdf
|
(2)
|
https://unitingtocombatntds.org/en/news-and-views/zanzibar-marks-historic-milestone-with-12-billionth-medicine-dose-in-fight-against-ntds
|
(3)
|
https://gardp.org/funders-invest-an-unprecedented-eur-60-million-in-innovative-antibiotic-rd-and-access-partnership
|
(4)
|
https://www.bioversys.com/nature-reviews-highlights-significant-successes-of-antibiotic-collaboration-and-calls-for-sustainable-rd-funding-schemes/
|
(5)
|
https://www.bsigroup.com/en-GB/insights-and-media/media-centre/press-releases/2024/september/gsk-site-announced-as-first-in-the-uk-to-achieve-bsi-amr-kitemark-certification-showcasing-responsible-approach-to-antibiotic-manufacturing
|
(6)
|
https://www.gsk.com/en-gb/responsibility/diversity-equity-and-inclusion/
|
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
52.
GSK
believes that Core results, when considered together with Total
results, provide investors, analysts and other stakeholders with
helpful complementary information to understand better the
financial performance and position of the Group from period to
period, and allow the Group’s performance to be more easily
compared against the majority of its peer companies. These measures
are also used by management for planning and reporting purposes.
They may not be directly comparable with similarly described
measures used by other companies.
GSK
encourages investors and analysts not to rely on any single
financial measure but to review GSK’s quarterly results
announcements, including the financial statements and notes, in
their entirety.
GSK is
committed to continuously improving its financial reporting, in
line with evolving regulatory requirements and best practice. In
line with this practice, GSK expects to continue to review and
refine its reporting framework.
Core
results exclude the following items in relation to our operations
from Total results, together with the tax effects of all of these
items:
|
|
●
|
amortisation of
intangible assets (excluding computer software and capitalised
development costs)
|
●
|
impairment of
intangible assets (excluding computer software) and
goodwill
|
●
|
major
restructuring costs, which include impairments of tangible assets
and computer software, (under specific Board approved programmes
that are structural, of a significant scale and where the costs of
individual or related projects exceed £25 million), including
integration costs following material acquisitions
|
●
|
transaction-related
accounting or other adjustments related to significant
acquisitions
|
●
|
proceeds and costs
of disposal of associates, products and businesses; significant
settlement income; Significant legal charges (net of insurance
recoveries) and expenses on the settlement of litigation and
government investigations; other operating income other than
royalty income, and other items including amounts reclassified from
the foreign currency translation reserve to the income statement
upon the liquidation of a subsidiary where the amount exceeds
£25 million
|
Costs
for all other ordinary course smaller scale restructuring and legal
charges and expenses from operations are retained within both Total
and Core results.
As Core
results include the benefits of Major restructuring programmes but
exclude significant costs (such as Significant legal, major
restructuring and transaction items) they should not be regarded as
a complete picture of the Group’s financial performance,
which is presented in Total results. The exclusion of other
Adjusting items may result in Core earnings being materially higher
or lower than Total earnings. In particular, when significant
impairments, restructuring charges and legal costs are excluded,
Core earnings will be higher than Total earnings.
GSK has
undertaken a number of Major restructuring programmes in response
to significant changes in the Group’s trading environment or
overall strategy or following material acquisitions. Within the
Pharmaceuticals sector, the highly regulated manufacturing
operations and supply chains and long lifecycle of the business
mean that restructuring programmes, particularly those that involve
the rationalisation or closure of manufacturing or R&D sites
are likely to take several years to complete. Costs, both cash and
non-cash, of these programmes are provided for as individual
elements are approved and meet the accounting recognition criteria.
As a result, charges may be incurred over a number of years
following the initiation of a Major restructuring
programme.
Significant legal
charges and expenses are those arising from the settlement of
litigation or government investigations that are not in the normal
course and materially larger than more regularly occurring
individual matters. They also include certain major legacy
matters.
Reconciliations
between Total and Core results, providing further information on
the key Adjusting items, are set out on pages 20 and
23.
GSK
provides earnings guidance to the investor community on the basis
of Core results. This is in line with peer companies and
expectations of the investor community, supporting easier
comparison of the Group’s performance with its peers. GSK is
not able to give guidance for Total results as it cannot reliably
forecast certain material elements of the Total results,
particularly the future fair value movements on contingent
consideration and put options that can and have given rise to
significant adjustments driven by external factors such as currency
and other movements in capital markets.
ViiV
Healthcare
ViiV
Healthcare is a subsidiary of the Group and 100% of its operating
results (turnover, operating profit, profit after tax) are included
within the Group income statement.
Earnings are
allocated to the three shareholders of ViiV Healthcare on the basis
of their respective equity shareholdings (GSK 78.3%, Pfizer 11.7%
and Shionogi 10%) and their entitlement to preferential dividends,
which are determined by the performance of certain products that
each shareholder contributed. As the relative performance of these
products changes over time, the proportion of the overall earnings
allocated to each shareholder also changes. In particular, the
increasing proportion of sales of dolutegravir and
cabotegravir-containing products has a favourable impact on the
proportion of the preferential dividends that is allocated to GSK.
Adjusting items are allocated to shareholders based on their equity
interests. GSK was entitled to approximately 84% of the Total
earnings and 83% of the Core earnings of ViiV Healthcare for
2023.
As
consideration for the acquisition of Shionogi’s interest in
the former Shionogi-ViiV Healthcare joint venture in 2012, Shionogi
received the 10% equity stake in ViiV Healthcare and ViiV
Healthcare also agreed to pay additional future cash consideration
to Shionogi, contingent on the future sales performance of the
products being developed by that joint venture, dolutegravir and
cabotegravir. Under IFRS 3 ‘Business combinations’, GSK
was required to provide for the estimated fair value of this
contingent consideration at the time of acquisition and is required
to update the liability to the latest estimate of fair value at
each subsequent period end. The liability for the contingent
consideration recognised in the balance sheet at the date of
acquisition was £659 million. Subsequent remeasurements are
reflected within other operating income/(expense) and within
Adjusting items in the income statement in each
period.
Cash
payments to settle the contingent consideration are made to
Shionogi by ViiV Healthcare each quarter, based on the actual sales
performance and other income of the relevant products in the
previous quarter. These payments reduce the balance sheet liability
and hence are not recorded in the income statement. The cash
payments made to Shionogi by ViiV Healthcare in the nine months
ended 30 September 2024 were £900 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 Q3 2024
and Q3 2023 are set out below.
Three
months ended 30 September 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
|
8,012
|
|
|
|
|
|
|
|
|
|
|
|
8,012
|
Cost of
sales
|
(2,397)
|
|
402
|
|
|
|
67
|
|
2
|
|
5
|
|
(1,921)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
5,615
|
|
402
|
|
|
|
67
|
|
2
|
|
5
|
|
6,091
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general
and administration
|
(3,800)
|
|
|
|
|
|
33
|
|
|
|
1,697
|
|
(2,070)
|
Research and
development
|
(1,459)
|
|
13
|
|
17
|
|
1
|
|
|
|
|
|
(1,428)
|
Royalty
income
|
168
|
|
|
|
|
|
|
|
|
|
|
|
168
|
Other
operating income/(expense)
|
(335)
|
|
|
|
|
|
(1)
|
|
359
|
|
(23)
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
189
|
|
415
|
|
17
|
|
100
|
|
361
|
|
1,679
|
|
2,761
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
finance expense
|
(124)
|
|
|
|
|
|
1
|
|
|
|
9
|
|
(114)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
of after tax profit/(loss) of associates
and joint ventures
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
before taxation
|
64
|
|
415
|
|
17
|
|
101
|
|
361
|
|
1,688
|
|
2,646
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
1
|
|
(88)
|
|
(3)
|
|
(22)
|
|
(103)
|
|
(246)
|
|
(461)
|
Tax rate %
|
(1.6%)
|
|
|
|
|
|
|
|
|
|
|
|
17.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
after taxation
|
65
|
|
327
|
|
14
|
|
79
|
|
258
|
|
1,442
|
|
2,185
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling
interests
|
123
|
|
|
|
|
|
|
|
34
|
|
|
|
157
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss)
attributable to shareholders
|
(58)
|
|
327
|
|
14
|
|
79
|
|
224
|
|
1,442
|
|
2,028
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
65
|
|
327
|
|
14
|
|
79
|
|
258
|
|
1,442
|
|
2,185
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss)
per share
|
(1.4)p
|
|
8.0p
|
|
0.3p
|
|
1.9p
|
|
5.5p
|
|
35.4p
|
|
49.7p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares (millions)
|
4,080
|
|
|
|
|
|
|
|
|
|
|
|
4,080
|
Three
months ended 30 September 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
|
8,147
|
|
|
|
|
|
|
|
|
|
|
|
8,147
|
Cost of
sales
|
(2,272)
|
|
162
|
|
|
|
29
|
|
|
|
8
|
|
(2,073)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
5,875
|
|
162
|
|
|
|
29
|
|
|
|
8
|
|
6,074
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general
and administration
|
(2,296)
|
|
|
|
|
|
83
|
|
1
|
|
27
|
|
(2,185)
|
Research and
development
|
(1,575)
|
|
20
|
|
129
|
|
(2)
|
|
|
|
(1)
|
|
(1,429)
|
Royalty
income
|
312
|
|
|
|
|
|
|
|
|
|
|
|
312
|
Other
operating income/(expense)
|
(367)
|
|
|
|
|
|
|
|
576
|
|
(209)
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
1,949
|
|
182
|
|
129
|
|
110
|
|
577
|
|
(175)
|
|
2,772
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
finance expense
|
(158)
|
|
|
|
|
|
|
|
|
|
2
|
|
(156)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
before taxation
|
1,791
|
|
182
|
|
129
|
|
110
|
|
577
|
|
(173)
|
|
2,616
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
(257)
|
|
(40)
|
|
(30)
|
|
(19)
|
|
(61)
|
|
3
|
|
(404)
|
Tax rate %
|
14.3%
|
|
|
|
|
|
|
|
|
|
|
|
15.4%
|
Profit
after taxation
|
1,534
|
|
142
|
|
99
|
|
91
|
|
516
|
|
(170)
|
|
2,212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling
interests
|
70
|
|
|
|
|
|
|
|
99
|
|
|
|
169
|
Profit
attributable to shareholders
|
1,464
|
|
142
|
|
99
|
|
91
|
|
417
|
|
(170)
|
|
2,043
|
|
1,534
|
|
142
|
|
99
|
|
91
|
|
516
|
|
(170)
|
|
2,212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share
|
36.1p
|
|
3.5p
|
|
2.4p
|
|
2.2p
|
|
10.3p
|
|
(4.1)p
|
|
50.4p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares (millions)
|
4,055
|
|
|
|
|
|
|
|
|
|
|
|
4,055
|
Adjusting items Q3 2024
Major
restructuring and integration
Total
Major restructuring charges incurred in Q3 2024 were £100
million (Q3 2023: £110 million), analysed as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3
2024
|
|
Q3
2023
|
|
Cash
£m
|
|
Non-
cash
£m
|
|
Total
£m
|
|
Cash
£m
|
|
Non-
cash
£m
|
|
Total
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
Separation
restructuring programme
|
42
|
|
(2)
|
|
40
|
|
45
|
|
50
|
|
95
|
Significant
acquisitions
|
15
|
|
–
|
|
15
|
|
18
|
|
(1)
|
|
17
|
Legacy
programmes
|
45
|
|
–
|
|
45
|
|
(1)
|
|
(1)
|
|
(2)
|
|
102
|
|
(2)
|
|
100
|
|
62
|
|
48
|
|
110
|
The
Separation restructuring programme incurred cash charges of
£42 million primarily from restructuring of some commercial
and administrative functions as well as Global Supply Chain. The
non-cash credit of £2 million primarily reflected an
adjustment to the write down of assets in manufacturing
locations.
Costs
of significant acquisitions relate to integration costs of Sierra
Oncology Inc. (Sierra) and Affinivax Inc. (Affinivax) which were
acquired in Q3 2022, BELLUS Health Inc. (Bellus) acquired in Q2
2023 and Aiolos acquired in Q1 2024.
Cash
charges of £45 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 £361 million (Q3 2023:
£577 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)
|
Q3
2024
£m
|
|
Q3
2023
£m
|
Contingent
consideration on former Shionogi-ViiV Healthcare joint
Venture
(including Shionogi preferential dividends)
|
292
|
|
479
|
ViiV
Healthcare put options and Pfizer preferential
dividends
|
(16)
|
|
40
|
Contingent
consideration on former Novartis Vaccines business
|
46
|
|
(12)
|
Contingent
consideration on acquisition of Affinivax
|
15
|
|
69
|
Other
adjustments
|
24
|
|
1
|
|
|
|
|
Total
transaction-related charges
|
361
|
|
577
|
The
£292 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 £185 million driven by updated sales forecasts
partly offset by exchange rates, and the unwind of the discount for
£107 million. The £16 million credit relating to the ViiV
Healthcare put option and Pfizer preferential dividends represented
updated exchange rates and higher preference dividends, partly
offset by an increase in the valuation of the put option primarily
as a result of updated sales forecasts. The ViiV Healthcare
contingent consideration liability is fair valued under IFRS. An
explanation of the accounting for the non-controlling interests in
ViiV Healthcare is set out on page 19.
The
£46 million charge relating to the contingent consideration on
the former Novartis Vaccines business primarily related to changes
to future sales forecasts.
The
£15 million charge relating to the contingent consideration on
the acquisition of Affinivax primarily related to the unwind of the
discount.
Significant
legal charges, Divestments, and other items
Significant legal
charges in the quarter primarily reflected a 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 included other net income of £23 million, which
includes milestones and royalty income.
|
|
The
reconciliations between Total results and Core results for 9 months
2024 and 9 months 2023 are set out below.
Nine
months ended 30 September 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
|
23,259
|
|
|
|
|
|
|
|
|
|
|
|
23,259
|
Cost of
sales
|
(6,489)
|
|
764
|
|
|
|
141
|
|
40
|
|
13
|
|
(5,531)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
16,770
|
|
764
|
|
|
|
141
|
|
40
|
|
13
|
|
17,728
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general
and administration
|
(8,352)
|
|
|
|
|
|
125
|
|
1
|
|
1,954
|
|
(6,272)
|
Research and
development
|
(4,370)
|
|
40
|
|
118
|
|
10
|
|
|
|
|
|
(4,202)
|
Royalty
income
|
463
|
|
|
|
|
|
|
|
|
|
|
|
463
|
Other
operating income/(expense)
|
(1,186)
|
|
|
|
|
|
5
|
|
1,422
|
|
(241)
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
3,325
|
|
804
|
|
118
|
|
281
|
|
1,463
|
|
1,726
|
|
7,717
|
|
|
|
|
|
|
|
|
|
|
|