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.
 
 
Performance: turnover
 
 
 
 
 
 
 
 
 
 
 
 
 
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.
 
 
 
Financial performance
 
 
 
 
 
 
 
 
 
 
 
 
 
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 generation
 
 
 
 
 
 
 
 
 
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
 
 
Contacts
 
GSK plc (LSE/NYSE:GSK) is a global biopharma company with a purpose to unite science, technology, and talent to get ahead of disease together. Find out more at www.gsk.com.
 
 
 
 
GSK enquiries:
 
 
 
Media
Tim Foley
+44 (0) 20 8047 5502
(London)
 
Kathleen Quinn
+1 202 603 5003
(Washington)
 
 
 
 
Investor Relations
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)
 
Anticipated news flow
 
 
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