REG - GSK PLC - Final Results
05/02/2025 07:00
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RNS Number : 9111V GSK PLC 05 February 2025
GSK delivers strong 2024 performance with further improvement to long-term
growth outlook
Strong sales and Core EPS growth reflecting accelerating momentum in Specialty
Medicines offsetting lower Vaccine sales
• Total 2024 sales £31.4 billion +3% AER; +7% CER
• Specialty Medicines sales +19%. HIV sales +13%. Oncology +98%.
Respiratory/Immunology and Other +13%
• Vaccines sales -4%. Shingrix +1% and Arexvy -51%
• General Medicines sales +6%. Trelegy +27%
• Total operating profit -33% and Total EPS -40% largely driven by £1.8 billion
($2.3 billion) charge relating to settlement of Zantac litigation
• Core operating profit +11% (with further positive impact of +2% ex COVID) and
Core EPS +10% (with further positive impact of +2% ex COVID) reflecting strong
Specialty Medicines performance and disciplined increased investment in
progressing the R&D portfolio
• Cash generated from operations in the year of £8 billion with Free cash flow
of £3 billion
(Financial Performance - 2024 results unless otherwise stated, growth % and
commentary at CER as defined on page 50).
2024 Q4 2024
£m % AER % CER £m % AER % CER
Turnover 31,376 3 7 8,117 1 4
Turnover ex COVID 31,364 4 8 8,106 1 4
Total operating profit 4,021 (40) (33) 696 21 54
Total operating margin % 12.8% (9.4ppts) (8.3ppts) 8.6% 1.5ppts 3.4ppts
Total EPS 63.2p (48) (40) 10.1p 18 60
Core operating profit 9,148 4 11 1,431 (18) (10)
Core operating margin % 29.2% 0.2ppts 0.9ppts 17.6% (4.1ppts) (2.9ppts)
Core EPS 159.3p 3 10 23.2p (20) (10)
Cash generated from operations 7,861 (3) 2,586 (30)
Further progress in R&D with growth prospects strengthened in all key
therapeutic areas:
• 71 Specialty Medicines and Vaccines now in clinical development, including 19
in phase III/registration
• Excellent pipeline progress in 2024 with 13 positive phase III readouts across
Respiratory, Immunology & Inflammation; Oncology; HIV and Infectious
Diseases
• Continued targeted business development to support future growth: proposed
acquisition of IDRx, Inc. (GI cancers); acquisition of Aiolos Bio (asthma) and
new research alliance with Flagship Pioneering (Respiratory, Immunology &
Inflammation), plus strengthened platform capabilities through acquisition of
Elsie Biotechnologies (oligonucleotides)
• 5 major new product approvals expected in 2025 including: Blenrep (multiple
myeloma) and depemokimab (severe asthma and CRSwNP(1)); plus phase III
readouts: camlipixant (refractory chronic cough) and tebipenem (complicated
UTI); and important pipeline catalysts: Respiratory (depemokimab COPD);
Oncology (B7-H3 & B7-H4 ADCs); HIV (ULA Q4/Q6M)
Increased returns to shareholders
• Q4 2024 dividend of 16p declared; 61p FY 2024; 64p expected for 2025
• £2 billion share buyback programme to be implemented over the next 18 months
2025 guidance and further improvement to long-term outlooks
• Expect 2025 turnover growth of between 3% to 5%; Core operating profit growth
of between 6% to 8%; Core EPS growth of between 6% to 8%, including the
expected benefit from the share buyback programme
• 2031 sales outlook increased to more than £40 billion (previously >£38
billion), reflecting late-stage pipeline progress
Guidance all at CER
Emma Walmsley, Chief Executive Officer, GSK:
"GSK delivered another year of excellent performance in 2024, with strong
sales and core profit growth driven by accelerating momentum of our specialty
medicines portfolio. This, together with outstanding phase III pipeline
progress, means we expect another year of profitable growth in 2025, and have
further improved our long-term outlook, with sales of more than £40 billion
now expected by 2031. In particular, we are increasing and prioritising
R&D investment to promising new long-acting and specialty medicines in
Respiratory, Immunology & Inflammation, Oncology and HIV. Our
outperformance and stronger balance sheet support these investments and others
planned in R&D, as well as the opportunity to enhance shareholder returns
through our progressive dividend and the share buyback programme which we have
set out today."
The Total results are presented in summary above and on page 7 and Core
results reconciliations are presented on pages 19, 20, 22 and 23. Core results
are a non-IFRS measure that may be considered in addition to, but not as a
substitute for, or superior to, information presented in accordance with IFRS.
The following terms are defined on pages 50-51: Core results, £% or AER%
growth, CER% growth, COVID-19 solutions, turnover excluding COVID-19
solutions; and other non-IFRS measures. GSK provides guidance on a Core
results basis only, for the reasons set out on page 17. ll expectations,
guidance and targets regarding future performance and dividend payments should
be read together with 'Guidance and outlooks, assumptions and cautionary
statements' on page 52. (1) CRSwNP - Chronic rhinosinusitis with nasal polyps.
2025 Guidance
GSK provides its full-year guidance at constant exchange rates (CER).
Turnover is expected to increase between 3 to 5 per cent
Core operating profit is expected to increase between 6 to 8 per cent
Core earnings per share is expected to increase between 6 to 8 per cent
This guidance is supported by the following turnover expectations for
full-year 2025 at CER
Specialty Medicines - expected increase of a low double-digit per cent in turnover
Vaccines - expected decrease of a low single-digit per cent in turnover
General Medicines - expected to be broadly stable for turnover
Core operating profit is expected to grow between 6 to 8 per cent at CER. GSK
expects to deliver leverage at a gross margin level due to improved product
mix from Specialty Medicines growth and continued operational efficiencies. In
addition, GSK anticipates further leverage in Operating profit as we continue
to take a returns-based approach to SG&A investments. R&D is expected
to increase broadly in line with sales as we invest for future growth.
Core earnings per share is expected to increase between 6 to 8 per cent at
CER, in line with Core operating profit growth, reflecting higher interest
charges and the tax rate which is expected to rise to around 17.5%, offset by
the expected benefit of up to 1% from the share buyback programme.
Expectations for non-controlling interests remain unchanged relative to 2024.
Dividend policy
The Dividend policy and the expected pay-out ratio remain unchanged.
Consistent with this, and reflecting strong business performance during the
quarter, GSK has declared a dividend for Q4 2024 of 16p per share and 61p per
share for the full year 2024. GSK's future dividend policy and guidance
regarding the expected dividend pay-out in 2025 are provided on page 36.
GSK now intends to commence a £2 billion share buyback programme, to be
implemented over the next 18 months.
COVID-19 solutions
For the full year 2025, GSK does not anticipate any further COVID-19
pandemic-related sales or operating profit. For the full year 2024, and in
comparison to 2023, the full year growth in Sales and Core operating profit
was adversely impacted by one and two percentage points, respectively.
2021-2026 and 2031 Outlooks
By 2031, GSK now expects to achieve sales of more than £40 billion
(previously >£38 billion) on a risk-adjusted basis and at CER. This
further increase reflects the inclusion of Blenrep, the significant phase III
progress since last year and multiple launch opportunities in the 2025 to 2031
period.
As before, we have further upside potential from our early-stage pipeline and
prospective business development.
There is no change to our Group outlooks for 2021-2026. GSK continues to
expect sales to grow more than 7% on a CAGR basis and Core operating profit to
increase more than 11%, on the same basis. Core operating profit margin in
2026 continues to be expected to be more than 31%.
All expectations, guidance and outlooks regarding future performance and
dividend payments should be read together with 'Guidance and outlooks,
assumptions and cautionary statements' on page 52.
These outlooks are provided at CER and exclude any contribution from COVID-19
related solutions.
Exchange rates
If exchange rates were to hold at the closing rates on 29 January 2025
($1.24/£1, €1.19/£1 and Yen 193/£1) for the rest of 2025, the estimated
impact on 2025 Sterling turnover growth for GSK would be +1% and if exchange
gains or losses were recognised at the same level as in 2024, the estimated
impact on 2025 Sterling Core Operating Profit growth for GSK would be +2%.
Results presentation
A conference call and webcast for investors and analysts of the quarterly
results will be hosted by Emma Walmsley, CEO, at 10.45 am GMT (US EST at 05.45
am) on 5 February 2025. Presentation materials will be published on
www.gsk.com prior to the webcast and a transcript of the webcast will be
published subsequently.
Notwithstanding the inclusion of weblinks, information available on the
company's website, or from non GSK sources, is not incorporated by reference
into this Results Announcement.
Performance: turnover
Turnover 2024 Q4 2024
£m Growth Growth £m Growth Growth
AER% CER% AER% CER%
Shingles 3,364 (2) 1 848 (7) (4)
Meningitis 1,437 14 18 295 8 12
RSV (Arexvy) 590 (52) (51) 158 (70) (69)
Influenza 408 (19) (16) 105 11 14
Established Vaccines 3,339 2 6 806 5 8
Vaccines ex COVID 9,138 (6) (3) 2,212 (14) (11)
Pandemic vaccines - (100) (100) - >(100) >(100)
Vaccines 9,138 (7) (4) 2,212 (14) (12)
HIV 7,089 10 13 1,969 11 14
Respiratory/Immunology and Other 3,299 9 13 910 5 9
Oncology 1,410 93 98 408 67 72
Specialty Medicines ex COVID 11,798 16 19 3,287 14 18
Xevudy 12 (73) (73) 11 (15) (15)
Specialty Medicines 11,810 15 19 3,298 14 17
Respiratory 7,213 6 10 1,806 3 7
Other General Medicines 3,215 (5) - 801 (3) 3
General Medicines 10,428 2 6 2,607 1 6
Total 31,376 3 7 8,117 1 4
Total ex COVID 31,364 4 8 8,106 1 4
By Region:
US 16,384 4 6 4,327 (1) 1
Europe 6,666 2 4 1,755 6 10
International 8,326 5 11 2,035 1 8
Total 31,376 3 7 8,117 1 4
Turnover ex COVID is excluding COVID-19 solutions during the years from 2020
to 2023 and is a non-IFRS measure defined on page 51 with the reconciliation
to the IFRS measure Turnover included in the table above. Financial
Performance - Q4 2024 results unless otherwise stated, growth % and commentary
at CER.
2024 Q4 2024
£m AER CER £m AER CER
Vaccines Total 9,138 (7%) (4%) 2,212 (14%) (12%)
Excluding COVID 9,138 (6%) (3%) 2,212 (14%) (11%)
Vaccines sales decreased in the year and quarter, primarily impacted by lower
demand for Arexvy related to a more limited ACIP(1) recommendation in the US
and channel inventory consumption compared to launch year stocking in 2023.
Meningitis vaccines had their strongest year of sales to date with
double-digit growth across all regions and Established vaccines continued to
grow across International and the US. Overall, Vaccines performance was also
adversely impacted due to COVID-19 solution sales and US CDC(2) stockpile
replenishments in 2023, each impacting full year growth by 1 percentage point.
Shingles 3,364 (2%) 1% 848 (7%) (4%)
Sales of Shingrix, a vaccine against shingles, grew in the year with ex-US
sales growth more than offsetting lower sales in the US, but declined in the
quarter.
The US cumulative immunisation rate reached 40%, up five percentage points
compared to 12 months earlier(3). Sales decreased by 18% in the full year and
13% in the quarter reflecting the slowing pace of penetration of
harder-to-reach unvaccinated consumers, partially offset by favourable
pricing. Full year Shingrix sales were also negatively impacted by changes in
retail vaccine prioritisation partly due to a transition to a new CMS(4) rule
that changed how pharmacies process reimbursements from payers.
Shingrix grew significantly in International in the year, driven by a national
immunisation programme in Australia and supply to our co-promotion partner in
China, but declined in the quarter reflecting lower sales in China. In Europe,
Shingrix grew in both the year and quarter driven by expanded public funding
and higher uptake across multiple countries, partly offset by lower demand in
Germany. Markets outside the US represented 56% of 2024 global sales (2023:
45%), with Shingrix launched in 52 countries. The overwhelming majority of
ex-US Shingrix opportunity is concentrated in 10 markets where the average
immunisation rate is around 7% with significantly higher uptake in funded
cohorts.
Footnotes:
(1) Advisory Committee on Immunization Practices (2) Centres for Disease
Control and Prevention (3) Based on data from IQVIA up until the end of Q3
2024 (4) Centers for Medicare & Medicaid Services
2024 Q4 2024
£m AER CER £m AER CER
Meningitis 1,437 14% 18% 295 8% 12%
In the year and the quarter, Meningitis vaccines achieved double-digit growth.
Bexsero, a vaccine against meningitis B, achieved sales of over £1 billion
for the first time. Growth was primarily due to favourable pricing mix and
increased full year purchases from the CDC in the US, recommendation in
Germany and launch in Vietnam. Meningitis vaccine sales growth in the quarter
was also impacted by a decline in Menveo, a vaccine against meningitis ACWY,
related to US CDC stockpile replenishment in Q4 2023.
RSV (Arexvy) 590 (52%) (51%) 158 (70%) (69%)
Arexvy, a RSV(1) vaccine for older adults, declined both in the year and
quarter. US sales decreased due to lower demand partly related to a more
limited recommendation from ACIP for individuals aged 60 to 74. Full year
sales were also adversely impacted by channel inventory consumption compared
to the launch year stocking in 2023. Arexvy maintained the market leading
position in retail where the overwhelming majority of doses are administered.
More than ten million US adults(2) aged 60 and older at risk have been
protected by Arexvy since the launch in Q3 2023.
In countries outside the US, growth in the year reflected uptake following a
positive recommendation in Germany, initial tender deliveries in Saudi Arabia
and new launch inventory builds in Australia and Brazil, partly offset in the
quarter by lower demand in Canada. While Arexvy is approved in 59 markets
globally, 17 countries had national RSV vaccination recommendations for older
adults and 6, including the US, had reimbursement programmes in place at the
year end.
Influenza 408 (19%) (16%) 105 11% 14%
Fluarix/FluLaval sales decreased in the year driven by competitive pressure
and lower market demand primarily in the US, but grew in the quarter due to
pricing favourability as a result of channel mix.
Established Vaccines 3,339 2% 6% 806 5% 8%
Established Vaccines grew in both the year and quarter. This reflected
increased sales of Hepatitis vaccines across all regions, higher US market
share and European demand for Boostrix and increased International supply and
US uptake of MMR/V(3) vaccines. This was partly offset by adverse CDC
stockpile movements for Rotarix and Infanrix/Pediarix. Established Vaccine
sales in 2024 included around £130 million of non-repeating contracted sales
including divested brands which have now ceased.
Specialty Medicines Total 11,810 15% 19% 3,298 14% 17%
Excluding COVID 11,798 16% 19% 3,287 14% 18%
Specialty Medicines sales grew by double-digit percentages in the full year
and in the quarter, reflecting continued growth across disease areas, with
strong performances in HIV, Respiratory/Immunology and Oncology.
HIV 7,089 10% 13% 1,969 11% 14%
HIV sales continue to grow double-digits for the full year and the quarter,
driven by strong patient demand for long-acting injectable medicines
(Cabenuva, Apretude) and Dovato. This demand primarily reflects a 2 percentage
point(4) increase in market share compared to the prior period which
contributed 10 percentage points of growth in 2024. The remainder of the full
year growth was driven by favourable in-year pricing, including the positive
impact from channel mix.
Oral 2DR 2,924 18% 21% 827 19% 23%
Sales of Oral 2DR (Dovato, Juluca) now represent 42% of the total HIV
portfolio. Dovato, the first and only once-daily oral 2DR for the treatment of
HIV infection in both treatment naive and virally suppressed adults and
adolescents continues to be the largest product in the HIV portfolio with
sales of £2,239 million in 2024 and growing 27% versus 2023.
Long-Acting Medicines 1,292 51% 55% 394 43% 47%
Long-Acting Injectable Medicine sales in the quarter now represent 20% of the
total HIV portfolio compared to 16% for Q4 2023 and contributed over 50% of
the total HIV growth in 2024. Cabenuva, the only complete long-acting
injectable regimen for HIV treatment reached sales of £1,013 million in 2024,
growing 47% due to strong patient demand across US and Europe. Apretude, the
first long-acting injectable option for HIV prevention delivered sales of
£279 million in 2024, growing 93% compared to 2023.
Footnotes:
(1) Respiratory syncytial virus (2) Based on data from IQVIA (3) Measles,
mumps, rubella and varicella (4) DoT Volume Market Share - IQVIA, GERS
(France), Czech State Institute for Drug Control (SUKL), DLI Market
Intelligence (Denmark), farmINFORM (Netherlands), Cegedim Healthcare
(Romania).
2024 Q4 2024
£m AER CER £m AER CER
Respiratory/Immunology and Other 3,299 9% 13% 910 5% 9%
Sales primarily comprise contributions from Nucala in respiratory and Benlysta
in immunology. Double-digit sales growth in the full year was delivered for
both Nucala and Benlysta, driven by patient demand globally across US,
European and International markets. Growth in the quarter was adversely
impacted by channel inventory build on both Nucala and Benlysta in the US in
Q4 2023.
Nucala 1,784 8% 12% 484 3% 7%
Nucala, is an IL-5 antagonist monoclonal antibody treatment for severe asthma,
with additional indications including chronic rhinosinusitis with nasal
polyps, eosinophilic granulomatosis with polyangiitis (EGPA), and
hypereosinophilic syndrome (HES). Double-digit sales growth for the full year
was driven particularly by strong performance in Europe and International
regions, reflecting higher patient demand for treatments addressing
eosinophilic-led disease. Growth in the quarter was adversely impacted by the
US from channel pricing pressure and from channel inventory build in Q4 2023.
Benlysta 1,490 10% 14% 423 9% 12%
Benlysta, a monoclonal antibody treatment for Lupus, continues to grow by
double-digit percentages in the full year representing strong demand and
volume growth in US, European and International regions, with bio-penetration
rates having increased across many markets. Growth in the quarter continued at
double-digits however was slightly reduced by the impact of channel inventory
build in the US in Q4 2023.
Oncology 1,410 93% 98% 408 67% 72%
Strong Oncology sales growth continued driven by increasing patient demand for
Zejula, a PARP(1) inhibitor, Jemperli, a PD-1(2) blocking antibody, and
Ojjaara/Omjjara, a daily JAK1/JAK2 and ACVR1(3) inhibitor.
Zejula 593 13% 17% 143 (6%) (3%)
Zejula, a PARP inhibitor treatment for ovarian cancer, grew by double-digit
percentages for the full year, with strong growth delivered across all regions
with sustained increases in patient demand and higher volumes, further
enhanced by positive price impacts in the US. Growth in the quarter was
adversely impacted in the US due to favourable price impacts in Q4 2023 as a
result of channel mix adjustments. This was partly offset by continued growth
in the quarter in Europe and International regions.
Jemperli 467 >100% >100% 149 >100% >100%
Jemperli, a medicine for front-line treatment in combination with chemotherapy
for patients with primary advanced or recurrent endometrial cancer, continued
to grow strongly in the full year and in the quarter. Strong sales in the
quarter were driven largely by increased patient uptake in the US, following
Q3 2024 FDA approval expanding the indication to include all adult patients
with primary advanced or recurrent endometrial cancer.
Ojjaara/Omjjara 353 >100% >100% 118 >100% >100%
Ojjaara/Omjjara, a treatment for myelofibrosis patients with anaemia, grew
strongly in the full year and the quarter largely driven by the US with
continued uptake in patients since its product launch in Q3 2023. Sales in the
quarter included increasing contributions from Europe and International
regions following launches in the UK and Germany in Q1 2024, and in Japan in
Q3 2024.
General Medicines 10,428 2% 6% 2,607 1% 6%
Sales include contributions from both the Respiratory and Other General
Medicine portfolios. Sales growth in the full year and the quarter was
primarily driven by Trelegy, a COPD(4) and asthma medicine, with strong demand
across all regions. Performance was adversely impacted by the removal of the
AMP(5) cap on Medicaid drug prices in the US. This removal impacted Advair,
Flovent, and Lamictal due to significant pricing reductions, reduced
commercial contracting, and the decision to discontinue branded Flovent.
However, this has been fully offset by the increased use of authorised generic
versions of Advair and Flovent while, significantly, continuing to provide
access to patients.
Respiratory 7,213 6% 10% 1,806 3% 7%
Sales growth in the full year and in the quarter reflected Trelegy's strong
performance in all regions. In the US adverse impacts from the removal of the
AMP cap were fully offset by the increased use of authorised generic versions
of Advair and Flovent, providing access to medicines for patients.
Footnotes:
(1) PARP: a Poly ADP ribose polymerase (2) PD-1: a programmed death
receptor-1 blocking antibody (3) JAK1/JAK2 and ACVR1: once a-day, oral
JAK1/JAK2 and activin A receptor type 1 (ACVR1) inhibitor (4) Chronic
obstructive pulmonary disease (5) Average manufacturer price
2024 Q4 2024
£m AER CER £m AER CER
Trelegy 2,702 23% 27% 669 14% 17%
Trelegy is the most prescribed SITT(1) treatment worldwide for COPD and
asthma. Sales grew 27% in the full year, driven largely by volume growth,
whilst also benefiting from favourable pricing. Strong volume growth continued
across all regions reflecting patient demand, SITT class growth, and increased
market share. Overall favourable pricing in the full year was driven by US
channel mix price adjustments in the first six months of 2024, which moderated
in the second half, adversely impacting Q4 2024 performance.
Seretide/Advair 1,057 (7%) (3%) 259 (6%) (2%)
Seretide/Advair is a combination treatment used to treat asthma and COPD. In
the full year and in the quarter, sales decreased in Europe and International
reflecting continued generic erosion by competitor products. This was
partially offset by growth in the US driven largely by favourable impacts from
channel mix adjustments.
Other General Medicines 3,215 (5%) -% 801 (3%) 3%
Growth in the full year was flat, with growth in antibiotics and dermatology
in International markets offset by global declines from continued generic
competition across the portfolio. Growth of 3% in the quarter was driven by
double-digit growth of the dermatology portfolio. The full year and quarter
declines at AER were driven by exchange movements in a number of International
markets.
By Region
US Total 16,384 4% 6% 4,327 (1%) 1%
Excluding COVID 16,374 4% 6% 4,317 (1%) 1%
Vaccine sales decreased in both the full year and the quarter primarily in
Arexvy due to lower demand related to a more limited ACIP recommendation and
related channel inventory consumption compared to the 2023 launch year
stocking. Shingrix also decreased reflecting lower demand driven by the
continued challenge of activating harder-to-reach consumers.
Specialty Medicines double-digit growth in the full year was driven by strong
Oncology and HIV performance, and continued growth in Nucala and Benlysta. In
the quarter, strong growth continued in Oncology and HIV, performance of
Nucala and Benlysta was adversely impacted by channel inventory build-up in Q4
2023.
General Medicine's growth in the full year and the quarter was primarily
driven by increased demand for Trelegy, with strong volume growth from higher
patient demand and growth of the SITT market as well as favourable price
benefits. Performance continues to be impacted following the removal of the
AMP cap on Medicaid drug prices, which particularly impacted Advair, Flovent
and Lamictal. This was fully offset by the increased use of authorised generic
versions of Advair and Flovent, providing access to medicines for patients.
Europe Total 6,666 2% 4% 1,755 6% 10%
Excluding COVID 6,665 4% 6% 1,754 6% 10%
Vaccine sales grew in the year and double-digit in the quarter. Shingrix
growth was driven by expanded public funding across several markets, partly
offset by lower demand in Germany. Bexsero and Arexvy sales increased
following recommendations in Germany.
Specialty Medicines sales grew by double-digits in the full year and quarter
due to continued strong performance in Oncology, Benlysta in immunology, and
Nucala in respiratory including the benefit from new indication launches. HIV
growth for the full year and the quarter continued at a high single digit
percentage.
General Medicines sales were broadly stable in the full year and the quarter.
Strong double-digit growth for Trelegy and Anoro was offset by decreases
across other general medicine products.
International Total 8,326 5% 11% 2,035 1% 8%
Excluding COVID 8,325 5% 12% 2,035 1% 8%
Vaccine sales grew strongly in the year while declining in the quarter. In the
year, growth was driven by Shingrix related to the national immunisation
program in Australia and supply to our co-promotion partner in China together
with strong momentum in Meningitis vaccines and single-digit growth in
Established Vaccines sales. The quarter was adversely impacted by lower Arexvy
sales in Canada and Shingrix sales in China.
Specialty Medicine's double-digit growth in the full year and the quarter was
driven by HIV, Nucala in Respiratory, Benlysta in Immunology, and Oncology.
General Medicines sales growth in the full year and the quarter, with strong
growth in Trelegy, Augmentin and dermatology products, partially offset by a
decrease in other general medicine products.
Footnote:
(1) Single inhaler triple therapy
Financial performance
Total Results 2024 Q4 2024
£m % AER % CER £m % AER % CER
Turnover 31,376 3 7 8,117 1 4
Cost of sales (9,048) 6 8 (2,559) 6 8
Selling, general and administration (11,015) 17 20 (2,663) (1) -
Research and development (6,401) 3 5 (2,031) (1) 1
Royalty income 639 (33) (33) 176 (25) (23)
Other operating income/(expense) (1,530) (344)
Operating profit 4,021 (40) (33) 696 21 54
Net finance expense (547) (19) (18) (139) (28) (27)
Share of after tax profit/(loss) of associates (3) -
and joint ventures
Profit/(loss) on disposal of interest in 6 6
associates
Profit before taxation 3,477 (43) (34) 563 49 97
Taxation (526) (62)
Tax rate % 15.1% 11.0%
Profit after taxation 2,951 (44) (36) 501 26 65
Profit attributable to non-controlling interests 376 87
Profit/(loss) attributable to shareholders 2,575 414
2,951 (44) (36) 501 26 65
Earnings per share 63.2p (48) (40) 10.1p 18 60
Financial Performance - Q4 2024 results unless otherwise stated, growth % and
commentary at CER.
Core results
Reconciliations between Total results and Core results for Full Year 2024,
Full Year 2023, Q4 2024 and Q4 2023 are set out on pages 19, 20, 22 and 23.
2024 Q4 2024
£m % AER % CER £m % AER % CER
Turnover 31,376 3 7 8,117 1 4
Cost of sales (7,870) 2 4 (2,339) 8 11
Selling, general and administration (8,974) (1) 2 (2,702) 4 6
Research and development (6,023) 5 7 (1,821) 2 4
Royalty income 639 (33) (33) 176 (25) (23)
Core operating profit 9,148 4 11 1,431 (18) (10)
Core profit before taxation 8,613 6 13 1,293 (17) (8)
Taxation (1,462) 16 24 (174) (26) (17)
Tax rate % 17.0% 13.5%
Core profit after taxation 7,151 4 11 1,119 (16) (6)
Core profit attributable to non-controlling 654 173
interests
Core profit attributable to shareholders 6,497 946
7,151 4 11 1,119 (16) (6)
Core Earnings per share 159.3p 3 10 23.2p (20) (10)
2024 Q4 2024
£m AER CER £m AER CER
Cost of sales Total 9,048 6% 8% 2,559 6% 8%
% of sales 28.8% 0.6% 0.2% 31.5% 1.5% 1.1%
Core 7,870 2% 4% 2,339 8% 11%
% of sales 25.1% (0.4%) (0.7%) 28.8% 2.0% 1.7%
Full year 2024 Total and Core cost of sales as a percentage of sales benefited
from price and channel mix benefits, as well as ongoing mix benefits in higher
margin Specialty Medicines products, and supply chain efficiencies. These
benefits were offset in the year and more than offset in the quarter by
charges of £150 million to drive future supply chain efficiencies. Full year
Total cost of sales also increased due to additional amortisation for Zejula
and Jemperli.
2024 Q4 2024
£m AER CER £m AER CER
Selling, general & administration Total 11,015 17% 20% 2,663 (1%) -%
% of sales 35.1% 4.2% 3.8% 32.8% (0.5%) (1.5%)
Core 8,974 (1%) 2% 2,702 4% 6%
% of sales 28.6% (1.2%) (1.3%) 33.3% 1.1% 0.5%
Total SG&A growth in the full year was primarily driven by the increase in
Significant legal costs reflecting the charge of £1.8 billion ($2.3 billion)
in Q3 2024 in relation to Zantac for the State Courts Settlement, the Qui Tam
Settlement, and the remaining 7% of pending state court product liability
cases, partially offset by reduced future legal costs. Since that time, the
vast majority of the remaining state court cases have been resolved or been
dismissed such that less than 1% of the state court cases remain (see details
on page 35). In the quarter, Total SG&A spend was in line with Q4 2023.
Core SG&A growth in the full year was driven by continued disciplined
investment to support global market expansion and disease awareness for key
assets including Arexvy, Nucala, Shingrix and Jemperli, and investment behind
long-acting HIV medicines, with the phasing of this investment weighted more
in Q4 2024. 2024 growth was partly offset by a 1 percentage point favourable
impact of the reversal of the legal provision taken in Q1 2023 for the Zejula
royalty dispute, following a successful appeal.
2024 Q4 2024
£m AER CER £m AER CER
Research & Total 6,401 3% 5% 2,031 (1%) 1%
development
% of sales 20.4% (0.1%) (0.4%) 25.0% (0.4%) (0.8%)
Core 6,023 5% 7% 1,821 2% 4%
% of sales 19.2% 0.2% -% 22.4% 0.3% -%
Total R&D growth in the full year and the quarter was driven by an
increase in Core R&D investment, partly offset by lower impairment charges
compared with the full year 2023 and Q4 2023.
Core R&D investment increased in the full year and the quarter driven by
progression across the portfolio.
In Specialty Medicines, investment increased in Respiratory, Immunology and
Inflammation to support late-stage clinical development programmes for
camlipixant (refractory chronic cough), the long acting TSLP asset acquired
from the Aiolos Bio, Inc. (Aiolos) acquisition, bepirovirsen (chronic
hepatitis B) and Benlysta (autoimmune diseases), with ongoing strong
investment in depemokimab (asthma and eosinophilic inflammation).
In Oncology, increased investment reflected acceleration on
antibody-drug-conjugates (ADCs) including those acquired from Hansoh Pharma at
the end of 2023, and studies into Blenrep (multiple myeloma) and Jemperli
(endometrial cancer). In HIV investment increased on next-generation
long-acting treatment and preventative medicines.
In Vaccines, clinical trial programmes associated with the pneumococcal Multi
Antigen Presenting System (MAPS) and mRNA continued to drive investment.
These increases were partly offset by reductions following the launches of
Arexvy and Ojjaara, and progression to completion of gepotidacin and Zejula
studies.
2024 Q4 2024
£m AER CER £m AER CER
Royalty income Total 639 (33%) (33%) 176 (25%) (23%)
Core 639 (33%) (33%) 176 (25%) (23%)
The decrease in Total and Core royalty income in the full year and Q4 2024
primarily reflected the cessation of the majority of Gardasil royalties at the
end of 2023, with 2024 Gardasil royalties of £42 million (2023: £472
million).
This was partly offset by increases in Kesimpta and Biktarvy royalties.
2024 Q4 2024
£m AER CER £m AER CER
Other operating Total (1,530) >(100%) >(100%) (344) 40% 40%
income/(expense)
The full year other operating expense reflected a charge of £1,839 million
(2023: £546 million) principally arising from the remeasurement of contingent
consideration liabilities (CCL). This primarily reflected improved longer term
HIV prospects as well as smaller foreign currency movements compared to 2023
and an increase in liability for the Vaccines CCL. This was partly offset by
higher other net income of £287 million (2023: £200 million) as well as a
fair value gain of £22 million (2023: £17 million loss) on the retained
stake in Haleon plc (Haleon).
In Q4 2024 the other operating expense reflected a charge of £417 million (Q4
2023: £430 million) principally arising from CCL remeasurements primarily
reflecting foreign currency movements. In the quarter, there were no fair
value movements recorded for Haleon shares (Q4 2023: £172 million loss)
following the sale of the remaining shares in May 2024. Other net income was
higher compared to the same period last year at £73 million (Q4 2023: £31
million).
2024 Q4 2024
£m AER CER £m AER CER
Operating profit Total 4,021 (40%) (33%) 696 21% 54%
% of sales 12.8% (9.4%) (8.3%) 8.6% 1.5% 3.4%
Core 9,148 4% 11% 1,431 (18%) (10%)
% of sales 29.2% 0.2% 0.9% 17.6% (4.1%) (2.9%)
Total operating profit margin was lower in the full year primarily due to the
charge of £1.8 billion ($2.3 billion) for the Zantac settlement, higher CCL
charges driven by improved longer term HIV prospects and other remeasurements
as well as unfavourable foreign currency movements, additional amortisation
for Zejula and Jemperli, and minimal movements on Haleon shares (2023 fair
value loss). Total operating profit margin was higher in the quarter mainly
due to no fair value movements on Haleon shares (Q4 2023 fair value loss) and
higher other net income.
Core operating profit growth in the full year benefited from strong Specialty
Medicines sales performance, with favourable product and regional mix. This
was partly offset by increased investment in R&D and growth assets, and
lower royalty income. 2024 also includes a favourable impact from the reversal
of the legal provision taken in Q1 2023 for the Zejula royalty dispute,
following a successful appeal.
Lower Core operating profit in the quarter primarily reflected charges to
drive future supply chain efficiencies, and increased investment in R&D
and growth assets as well as lower royalty income. The adverse impact of lower
sales of COVID-19 solutions had a two percentage points impact in the full
year on Core operating profit growth and a 0.4 percentage point impact on Core
operating profit margin. There was minimal impact in the quarter.
2024 Q4 2024
£m AER CER £m AER CER
Net finance expense Total 547 (19%) (18%) 139 (28%) (27%)
Core 532 (20%) (19%) 138 (28%) (27%)
The decrease in net finance costs in the full year and Q4 2024 was mainly
driven by lower interest on short-term financing as a result of cash received
from the disposal of all Haleon shares, savings from maturing bonds, and
higher interest income on cash, partly offset by fair value movements on net
investment hedges. The full year comparator to 2023 also benefitted from the
net cost of bond buybacks completed in Q1 2023.
2024 Q4 2024
£m AER CER £m AER CER
Taxation Total 526 (30%) (19%) 62 >100 >100
Tax rate % 15.1% 11.0%
Core 1,462 16% 24% 174 (26%) (17%)
Tax rate % 17.0% 13.5%
The effective tax rate on Total results reflected the different tax effects of
the various Adjusting items included in Total results, including the impact of
the Zantac settlement.
The effective tax rate on Core profits was in line with expectations for the
year and included the impact of new global minimum corporate income tax rules
which came into effect from 1 January 2024 in line with the OECD's 'Pillar 2'
model framework. Issues related to taxation are described in Note 14,
'Taxation' in the Annual Report 2023. The Group continues to believe it has
made adequate provision for the liabilities likely to arise from periods that
are open and not yet agreed by relevant tax authorities. The ultimate
liability for such matters may vary from the amounts provided and is dependent
upon the outcome of agreements with relevant tax authorities.
2024 Q4 2024
£m AER CER £m AER CER
Non-controlling Total 376 (1%) 8% 87 81% >100%
interests ("NCIs")
Core 654 14% 20% 173 14% 20%
The increase in the full year Total NCIs at CER was driven by higher ViiV
Healthcare Total profits (partly offset by a higher remeasurement loss on the
CCL) as well as higher net profits in some of the Group's other entities. ViiV
Healthcare Total profits were lower at AER, reflecting adverse currency
impacts, with an allocation of £356 million (2023: £374 million).
The increase in Total NCIs in the quarter was primarily driven by higher ViiV
Healthcare profits including a lower remeasurement loss on the CCL, and higher
net profits in some of the Group's other entities.
The increase in Core NCIs in the full year and Q4 2024 primarily reflected
higher core profit allocations from ViiV Healthcare, with £634 million in
2024 (2023: £566 million) and £171 million in Q4 2024 (Q4 2023: £154
million), as well as higher net profits in some of the Group's other entities
with NCIs.
2024 Q4 2024
£p AER CER £p AER CER
Earnings per share Total 63.2p (48%) (40%) 10.1p 18% 60%
Core 159.3p 3% 10% 23.2p (20%) (10%)
The decrease in the full year Total EPS was primarily due to a charge of £1.8
billion ($2.3 billion) for the Zantac settlement (see details on page 35) and
higher CCL charges. The increase in the Q4 2024 Total EPS is driven by no fair
value movements on Haleon shares compared to a fair value loss of £172
million in Q4 2023.
The increase in the Core EPS in the full year primarily reflected the growth
in Core operating profit as well as lower finance costs, partly offset by a
higher effective taxation rate and higher non-controlling interests. The
decrease in the Q4 2024 Core EPS is driven by lower Core operating profit and
higher non-controlling interests, partly offset by lower finance costs and a
lower effective taxation rate. Lower sales of COVID-19 solutions reduced Core
EPS by two percentage points in the full year.
Currency impact on results
The results for the year 2024 are based on average exchange rates, principally
US$1.28/£1, €1.18/£1 and Yen193/£1. The results for Q4 2024 are based on
average exchange rates, principally $1.27/£1, €1.20/£1 and Yen195/£1. The
period-end exchange rates were $1.25/£1, €1.20/£1 and Yen197/£1.
Comparative exchange rates are given on page 37.
2024 Q4 2024
£m/£p AER CER £m/£p AER CER
Turnover 31,376 3% 7% 8,117 1% 4%
Earnings per share Total 63.2p (48%) (40%) 10.1p 18% 60%
Core 159.3p 3% 10% 23.2p (20%) (10%)
In the full year and Q4 2024, the adverse currency impact primarily reflected
the strengthening of Sterling against the US Dollar, Euro, Yen and emerging
market currencies. Exchange gains or losses on the settlement of intercompany
transactions had a negligible impact on Total and Core EPS in the full year,
and in the quarter the impact was eight percentage points on Total EPS and
three percentage points on Core EPS.
Cash generation
Cash flow
2024 2023 Q4 2024 Q4 2023
£m £m £m £m
Cash generated from operations (£m) 7,861 8,096 2,586 3,681
Net cash generated from operating activities (£m) 6,554 6,768 2,329 3,196
Free cash inflow/(outflow)* (£m) 2,863 3,409 924 2,095
Free cash flow growth (%) (16)% 2% (56%) >100%
Free cash flow conversion* (%) >100% 69% >100% >100%
Total net debt** (£m) 13,095 15,040 13,095 15,040
* Free cash flow and free cash flow conversion are defined on page 50. Free cash
flow is analysed on page 40.
** Net debt is analysed on page 40.
2024
Cash generated from operating activities was £7,861 million (2023: £8,096
million) and excluding £672 million payments for the Zantac settlement was
£8,533 million. The increase excluding Zantac reflected higher Core operating
profit, the benefit of Q4 2023 Arexvy receivables' collections in Q1 2024, and
lower pension contributions, partly offset by the timing impact from lower
returns and rebates, including the impact of the removal of the AMP cap, and
lower receivables at the end of the year.
Total contingent consideration cash payments in 2024 were £1,254 million
(2023: £1,145 million). £1,235 million (2023: £1,134 million) of these
were recognised in cash flows from operating activities, including cash
payments made to Shionogi & Co. Ltd (Shionogi) of £1,190 million (2023:
£1,106 million).
Free cash inflow was £2,863 million for 2024 (2023: £3,409 million) and
excluding payments for the Zantac settlement was £3,535 million. The increase
excluding Zantac was primarily driven by higher cash generated from operating
activities as well as lower net interest paid, partly offset by higher capital
expenditure on intangible assets including the £342 million upfront payment
to CureVac N.V.
Q4 2024
Cash generated from operations for the quarter was £2,586 million (Q4 2023:
£3,681 million). The decrease primarily reflected £672 million payments
related to the Zantac settlement (£3,258 million excluding Zantac settlement
payments).
Total contingent consideration cash payments in the quarter were
£319 million (Q4 2023: £285 million). £311 million (Q4 2023:
£281 million) of these were recognised in cash flows from operating
activities, including cash payments made to Shionogi of £290 million (Q4
2023: £272 million).
Free cash inflow was £924 million for the quarter (Q4 2023: £2,095 million)
and excluding payments for the Zantac settlement was £1,596 million. The
decrease is driven by lower cash generated from operations and higher capital
expenditure on intangible assets and property, plant and equipment, partly
offset by lower tax payments.
Total Net debt
At 31 December 2024, net debt was £13,095 million, compared with £15,040
million at 31 December 2023, comprising gross debt of £16,986 million and
cash and liquid investments of £3,891 million. See net debt information on
page 40.
Net debt decreased by £1,945 million primarily due to £2,863 million of free
cash inflow and £2,356 million proceeds from the disposal of investments,
primarily due to the sale of the remaining retained stake in Haleon. This was
partly offset by the net acquisition costs of Aiolos and Elsie Biotechnologies
of £805 million, and dividends paid to shareholders of £2,444 million.
At 31 December 2024, GSK had short-term borrowings (including overdrafts and
lease liabilities) repayable within 12 months of £2,349 million and £1,411
million repayable in the subsequent year.
Page
Q4 2024 pipeline highlights 13
Responsible business 15
Total and Core results 17
Income statement 25
Statement of comprehensive income 26
Balance sheet 27
Statement of changes in equity 28
Cash flow statement 29
Sales tables 30
Segment information 33
Legal matters 35
Returns to shareholders 36
Additional information 37
Net debt information 40
Post balance sheet event 41
Related party transactions 41
R&D commentary 42
Reporting definitions 50
Guidance and outlooks, assumptions and cautionary statements 52
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
Q4 2024 pipeline highlights (since 30 October 2024)
Medicine/vaccine Trial (indication, presentation) Event
Regulatory approvals or other regulatory actions Nucala Chronic rhinosinusitis with nasal polyps Regulatory approval (CN)
Jemperli RUBY part 1 (OS overall population, 1L endometrial cancer) Regulatory approval (EU)
Vokabria + Rekambys HIV infection, adolescents Regulatory approval (EU)
Arexvy RSV, adults aged 50-59 years at increased risk Regulatory approval (JP)
Menveo Liquid formulation, meningitis ACWY Regulatory approval (EU)
Regulatory submissions or acceptances depemokimab ANCHOR-1/2 (chronic rhinosinusitis with nasal polyps Regulatory acceptance
(EU, JP, CN)
depemokimab SWIFT-1/2 (severe asthma) Regulatory acceptance
(EU, JP, CN)
Nucala MATINEE (chronic obstructive pulmonary disease) Regulatory acceptance (US)
Blenrep DREAMM-7/8 (2L+ multiple myeloma) Regulatory acceptance (US)
Blenrep DREAMM-7 (2L+ multiple myeloma) Regulatory acceptance (CN) with Priority Review
Shingrix Liquid formulation, shingles Regulatory acceptance
(US, EU)
Phase III data readouts or other significant events Blenrep DREAMM-7 (2L+ multiple myeloma) Further positive phase III data readout
linerixibat GLISTEN (cholestatic pruritus in primary biliary cholangitis) Positive phase III data reported
Zejula FIRST (1L maintenance ovarian cancer) Positive phase III data readout
Regulatory designations and other significant events Jemperli Locally advanced dMMR/MSI-H rectal cancer Breakthrough Designation (US)
GSK5764227 (B7-H3-targeted antibody-drug conjugate) Extensive-stage small-cell lung cancer Priority Medicines (PRIME) granted (EU)
GSK5764227 (B7-H3-targeted antibody-drug conjugate) Relapsed or refractory osteosarcoma Breakthrough Designation (US)
Anticipated news flow
Timing Medicine/vaccine Trial (indication, presentation) Event
H1 2025 depemokimab SWIFT-1/2 (severe asthma) Regulatory submission (US)
depemokimab ANCHOR-1/2 (chronic rhinosinusitis with nasal polyps) Regulatory submission (US)
depemokimab AGILE (severe asthma) Phase III data readout
linerixibat GLISTEN (cholestatic pruritus in primary biliary cholangitis) Regulatory submission
(US, EU, CN)
Nucala MATINEE (chronic obstructive pulmonary disease) Regulatory decision (US)
Nucala MATINEE (chronic obstructive pulmonary disease) Regulatory submission
(CN, EU)
Blenrep DREAMM-7/8 (2L+ multiple myeloma) Regulatory decision (JP)
cobolimab COSTAR (non-small cell lung cancer) Phase III data readout
Zejula ZEAL (1L maintenance non-small cell lung cancer) Phase III data readout
gepotidacin EAGLE-2/3 (uncomplicated urinary tract infection) Regulatory decision (US)
gepotidacin EAGLE-1 (urogenital gonorrhoea) Regulatory submission (US)
MenABCWY (gen 1) vaccine candidate Meningococcal ABCWY Regulatory decision (US)
Shingrix Shingles, adults aged 18+ years Regulatory decision (CN)
Shingrix Shingles, liquid formulation Regulatory decision (US)
Anticipated news flow continued
Timing Medicine/vaccine Trial (indication, presentation) Event
H2 2025 camlipixant CALM-1/2 (refractory chronic cough) Phase III data readout
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
linerixibat GLISTEN (cholestatic pruritus in primary biliary cholangitis) Regulatory decision (US)
linerixibat GLISTEN (cholestatic pruritus in primary biliary cholangitis) Regulatory submission (JP)
Ventolin Low carbon MDI (asthma) Phase III data readout
Ventolin Low carbon MDI (asthma) Regulatory submission (EU)
Blenrep DREAMM-7/8 (2L+ multiple myeloma) Regulatory decision (US, EU)
Blenrep DREAMM-8 (2L + multiple myeloma) Regulatory submission (CN)
cobolimab COSTAR, (2L non-small cell lung cancer) Regulatory submission
(US, EU)
Arexvy RSV, adults aged 18-49 years at increased risk, 18+ immunocompromised Regulatory submission
(US, EU, JP)
Bexsero Meningococcal B (infants) Phase III data read out
Bexsero Meningococcal B (infants) Regulatory submission (US)
gepotidacin EAGLE-1 (urogenital gonorrhoea) Regulatory decision (US)
tebipenem pivoxil PIVOT-PO (complicated urinary tract infection) Phase III data readout
tebipenem pivoxil PIVOT-PO (complicated urinary tract infection) Regulatory submission (US)
2026 camlipixant CALM-1/2 (refractory chronic cough) Phase III data read out
camlipixant CALM-1/2 (refractory chronic cough) Regulatory submission
(US, EU)
depemokimab OCEAN (Eosinophilic granulomatosis with polyangiitis) Phase III data read out
depemokimab OCEAN (Eosinophilic granulomatosis with polyangiitis) Regulatory submission
(US, EU, CN, JP)
depemokimab SWIFT-1/2 (severe asthma) Regulatory decision
(EU, CN, JP)
depemokimab ANCHOR-1/2 (chronic rhinosinusitis with nasal polyps) Regulatory decision
(EU, CN, JP)
latozinemab INFRONT-3 (frontotemporal dementia) Phase III data read out
latozinemab INFRONT-3 (frontotemporal dementia) Regulatory submission
(US, EU)
linerixibat GLISTEN (cholestatic pruritus in primary biliary cholangitis) Regulatory decision
(EU, CN, JP)
Nucala MATINEE (chronic obstructive pulmonary disease) Regulatory decision (EU, CN)
Ventolin Low carbon MDI (asthma) Regulatory decision (EU)
Blenrep DREAMM-7/8 (2L+ multiple myeloma) Regulatory decision (CN)
cobolimab COSTAR (2L non-small cell lung cancer) Regulatory decision (US, EU)
Jemperli AZUR-1 (rectal cancer) Phase II (pivotal) data read out
cabotegravir Q4M PrEP (HIV) Phase II (pivotal) data read out
cabotegravir Q4M PrEP (HIV) Regulatory submission (US)
cabotegravir Q4M PrEP (HIV) Regulatory decision (US)
Arexvy RSV, adults aged 18-49 years at increased risk and 18+ immunocompromised Regulatory decision
(US, EU, JP)
bepirovirsen B-WELL 1/2 (hepatitis B virus) Phase III data read out
bepirovirsen B-WELL 1/2 (hepatitis B virus) Regulatory submission
(US, EU, CN, JP)
bepirovirsen B-WELL 1/2 (hepatitis B virus) Regulatory decision (US, JP)
Bexsero Meningococcal B (infants) Regulatory decision (US)
tebipenem pivoxil PIVOT-PO (complicated urinary tract infection) Regulatory decision (US)
Refer to pages 42 to 49 for further details on several key medicines and
vaccines in development by therapy area.
Trust: progress in 2024 on our six priority areas for responsible business
Building Trust by operating responsibly is integral to GSK's strategy and
culture. This will support growth and returns to shareholders, reduce risk,
and help GSK's people thrive while delivering sustainable health impact at
scale. The Company has previously identified six areas that address what is
most material to GSK's business and the issues that matter the most to its
stakeholders. Highlights below include activity since Q3 2024 results. For
more details on annual updates, please see GSK's ESG Performance Report
2023(1).
GSK remains committed to abiding by the laws in all jurisdictions in which we
operate, including anti-discrimination laws. We make changes as necessary as
law and policy evolves.
Access
Commitment: to make GSK's vaccines and medicines available at value-based
prices that are sustainable for the business and implement access strategies
that increase the use of GSK's vaccines and medicines to treat and protect
underserved people.
Progress since Q3 2024:
• GSK ranked second in the ninth iteration of the Access to Medicine Index
(ATMI), as one of two leading companies. This means GSK has placed first or
second in the Index since its inception in 2008. The Index is an independent,
investor-backed report that ranks 20 of the world's largest pharmaceutical
companies on progress to improve access at scale in 113 lower income countries
and focuses on 81 high burden priority diseases. GSK continues to show strong
leadership in its Access to Medicines Index ranking((2))
• In December, GSK and long-term partner Medicines for Malaria Venture (MMV),
announced that the World Health Organisation (WHO) has awarded
prequalification to tafenoquine, the first single-dose medicine for the
prevention of relapse of Plasmodium vivax (P. vivax) malaria. Tafenoquine,
co-administered with chloroquine, is now also included in WHO's updated
Guidelines for malaria, in South America, marking the first time the medicine
has been recommended by WHO. This milestone is a significant step toward
closing the treatment gap for P. vivax malaria. The WHO prequalification and
updated guidelines include both adults and children aged 2 years and older,
weighing at least 10 kg. First single-dose medicine for P. vivax malaria
prequalified by WHO and included in WHO Guidelines((3)).
Global health and health security
Commitment: develop novel products and technologies to treat and prevent
priority diseases, including pandemic threats.
• Performance metrics related to global health and health security are updated
annually in GSK's 2023 Report((1)) on page 15.
Environment
Commitment: committed to a net zero, nature-positive, healthier planet with
ambitious goals set for 2030 and 2045.
Progress since Q3 2024:
• In October, GSK was one of the first companies to announce the adoption of
Science Based Targets for Nature, with our validated Freshwater target focused
on our direct operations in the water-stressed Upper Godavari basin in India.
• Performance metrics related to environment are updated annually with related
details in GSK's 2023 Report((1)) on page 18.
Inclusion and diversity
Commitment: create an inclusive workplace through equal employment opportunity
and non-discrimination; reflect patients impacted by the disease under study
in our clinical trials; and support future talent in STEM regardless of
background.
• Performance metrics related to these matters are updated annually with related
details in GSK's 2023 Report((1)) on page 26.
Ethical standards
Commitment: promote ethical behaviour across GSK's business by supporting its
employees to do the right thing and working with suppliers that share GSK's
standards and operate responsibly.
• Performance metrics related to ethical standards are updated annually with
related details in GSK's 2023 Report((1)) on page 30.
Product governance
Commitment: maintain robust quality and safety processes and responsibly use
data and new technologies.
• Performance metrics related to product governance are updated annually with
related details in GSK's 2023 Report((1)) on page 35.
External benchmarking
Current Previous
External benchmark score/ranking score/ranking Comments
S&P Global's Corporate Sustainability Assessment 78 80 Current score updated September 2024
Access to Medicines Index(4) 3.72 4.06 Second in the Index, updated bi-annually, current results from November 2024
Antimicrobial resistance benchmark 84% 86% Led the benchmark since its inception in 2018; Current ranking updated
November 2021
CDP Climate Change A- A- Updated annually, current scores updated February 2024 (for supplier
engagement, March 2023)
CDP Water Security A- B
CDP Forests (palm oil) B A-
CDP Forests (timber) B B
CDP supplier engagement rating Leader Leader
Sustainalytics 15.0 15.4 1st percentile in pharma subindustry group; lower score represents lower risk.
Current score as at October 2024
MSCI AA AA Last rating action date: September 2023
Moody's ESG solutions 62 61 Current score updated August 2023
ISS Corporate Rating B+ B+ Current score updated October 2024
FTSE4Good Member Member Member since 2004, latest review in June 2024
ShareAction's Workforce Disclosure Initiative 79% 77% Current score updated January 2024
Footnotes:
(1) https://www.gsk.com/media/11009/esg-performance-report-2023.pdf
(2) https://www.gsk.com/en-gb/media/press-releases/statement-gsk-continues-to-show-strong-leadership-in-its-access-to-medicines-index-ranking/
(3) https://www.gsk.com/en-gb/media/press-releases/first-single-dose-medicine-for-p-vivax-malaria-prequalified-by-who/
(4) https://accesstomedicinefoundation.org/resource/2024-access-to-medicine-index
Total and Core results
Total reported results represent the Group's overall performance.
GSK made one update to its reporting framework in Q1 2024 which was to change
the description of Adjusted results to Core to align with European peers in
the pharmaceutical industry but with no change to the basis or figures. In Q2
2024 an update was made to the definition of Core results to exclude amounts
greater than £25 million from the foreign currency translation reserve which
are reclassified to the income statement upon the liquidation of a subsidiary.
There is no change to Total Results.
GSK uses a number of non-IFRS measures to report the performance of its
business. Core results and other non-IFRS measures may be considered in
addition to, but not as a substitute for, or superior to, information
presented in accordance with IFRS. Core results are defined below and other
non-IFRS measures are defined on page 50.
GSK believes that Core results, when considered together with Total results,
provide investors, analysts and other stakeholders with helpful complementary
information to understand better the financial performance and position of the
Group from period to period, and allow the Group's performance to be more
easily compared against the majority of its peer companies. These measures are
also used by management for planning and reporting purposes. They may not be
directly comparable with similarly described measures used by other companies.
GSK encourages investors and analysts not to rely on any single financial
measure but to review GSK's quarterly results announcements, including the
financial statements and notes, in their entirety.
GSK is committed to continuously improving its financial reporting, in line
with evolving regulatory requirements and best practice. In line with this
practice, GSK expects to continue to review and refine its reporting
framework.
Core results exclude the following items in relation to our operations from
Total results, together with the tax effects of all of these items:
• amortisation of intangible assets (excluding computer software and capitalised
development costs)
• impairment of intangible assets (excluding computer software) and goodwill
• major restructuring costs, which include impairments of tangible assets and
computer software, (under specific Board approved programmes that are
structural, of a significant scale and where the costs of individual or
related projects exceed £25 million), including integration costs following
material acquisitions
• transaction-related accounting or other adjustments related to significant
acquisitions
• proceeds and costs of disposal of associates, products and businesses;
significant settlement income; Significant legal charges (net of insurance
recoveries) and expenses on the settlement of litigation and government
investigations; other operating income other than royalty income, and other
items including amounts reclassified from the foreign currency translation
reserve to the income statement upon the liquidation of a subsidiary where the
amount exceeds £25 million
Costs for all other ordinary course smaller scale restructuring and legal
charges and expenses from operations are retained within both Total and Core
results.
As Core results include the benefits of Major restructuring programmes but
exclude significant costs (such as Significant legal, major restructuring and
transaction items) they should not be regarded as a complete picture of the
Group's financial performance, which is presented in Total results. The
exclusion of other Adjusting items may result in Core earnings being
materially higher or lower than Total earnings. In particular, when
significant impairments, restructuring charges and legal costs are excluded,
Core earnings will be higher than Total earnings.
GSK has undertaken a number of Major restructuring programmes in response to
significant changes in the Group's trading environment or overall strategy or
following material acquisitions. Within the Pharmaceuticals sector, the highly
regulated manufacturing operations and supply chains and long lifecycle of the
business mean that restructuring programmes, particularly those that involve
the rationalisation or closure of manufacturing or R&D sites are likely to
take several years to complete. Costs, both cash and non-cash, of these
programmes are provided for as individual elements are approved and meet the
accounting recognition criteria. As a result, charges may be incurred over a
number of years following the initiation of a Major restructuring programme.
Significant legal charges and expenses are those arising from the settlement
of litigation or government investigations that are not in the normal course
and materially larger than more regularly occurring individual matters. They
also include certain major legacy matters.
Reconciliations between Total and Core results, providing further information
on the key Adjusting items, are set out on pages 19, 20, 22 and 23.
GSK provides earnings guidance to the investor community on the basis of Core
results. This is in line with peer companies and expectations of the investor
community, supporting easier comparison of the Group's performance with its
peers. GSK is not able to give guidance for Total results as it cannot
reliably forecast certain material elements of the Total results, particularly
the future fair value movements on contingent consideration and put options
that can and have given rise to significant adjustments driven by external
factors such as currency and other movements in capital markets.
ViiV Healthcare
ViiV Healthcare is a subsidiary of the Group and 100% of its operating results
(turnover, operating profit, profit after tax) are included within the Group
income statement.
Earnings are allocated to the three shareholders of ViiV Healthcare on the
basis of their respective equity shareholdings (GSK 78.3%, Pfizer 11.7% and
Shionogi 10%) and their entitlement to preferential dividends, which are
determined by the performance of certain products that each shareholder
contributed. As the relative performance of these products changes over time,
the proportion of the overall earnings allocated to each shareholder also
changes. In particular, the increasing proportion of sales of dolutegravir and
cabotegravir-containing products has a favourable impact on the proportion of
the preferential dividends that is allocated to GSK. Adjusting items are
allocated to shareholders based on their equity interests. GSK was entitled to
approximately 85% of the Total earnings and 83% of the Core earnings of ViiV
Healthcare for 2024.
As consideration for the acquisition of Shionogi's interest in the former
Shionogi-ViiV Healthcare joint venture in 2012, Shionogi received the 10%
equity stake in ViiV Healthcare and ViiV Healthcare also agreed to pay
additional future cash consideration to Shionogi, contingent on the future
sales performance of the products being developed by that joint venture,
dolutegravir and cabotegravir. Under IFRS 3 'Business combinations', GSK was
required to provide for the estimated fair value of this contingent
consideration at the time of acquisition and is required to update the
liability to the latest estimate of fair value at each subsequent period end.
The liability for the contingent consideration recognised in the balance sheet
at the date of acquisition was £659 million. Subsequent remeasurements are
reflected within other operating income/(expense) and within Adjusting items
in the income statement in each period.
Cash payments to settle the contingent consideration are made to Shionogi by
ViiV Healthcare each quarter, based on the actual sales performance and other
income of the relevant products in the previous quarter. These payments reduce
the balance sheet liability and hence are not recorded in the income
statement. The cash payments made to Shionogi by ViiV Healthcare in the year
ended 31 December 2024 were £1,190 million.
As the liability is required to be recorded at the fair value of estimated
future payments, there is a significant timing difference between the charges
that are recorded in the Total income statement to reflect movements in the
fair value of the liability and the actual cash payments made to settle the
liability.
Further explanation of the acquisition-related arrangements with ViiV
Healthcare are set out on pages 84 and 85 of the Annual Report 2023.
Adjusting items
The reconciliations between Total results and Core results for 2024 and 2023
are set out below.
Year ended 31 December 2024
Total Intangible Intangible Major Trans- Significant Core
results amort- impair- restruct- action- legal, Divest- results
£m isation ment uring related ments and £m
£m £m £m £m other
items
£m
Turnover 31,376 31,376
Cost of sales (9,048) 947 163 40 28 (7,870)
Gross profit 22,328 947 163 40 28 23,506
Selling, general and administration (11,015) 160 2 1,879 (8,974)
Research and development (6,401) 55 314 9 (6,023)
Royalty income 639 639
Other operating income/(expense) (1,530) 21 1,839 (330) -
Operating profit 4,021 1,002 314 353 1,881 1,577 9,148
Net finance expense (547) 1 14 (532)
Share of after tax profit/(loss) of associates (3) (3)
and joint venture
Profit/(loss) on disposal of interests in 6 (6) -
associates and joint ventures
Profit before taxation 3,477 1,002 314 354 1,881 1,585 8,613
Taxation (526) (208) (63) (80) (311) (274) (1,462)
Tax rate % 15.1% 17.0%
Profit after taxation 2,951 794 251 274 1,570 1,311 7,151
Profit attributable to non-controlling 376 278 654
interests
Profit/(loss) attributable to shareholders 2,575 794 251 274 1,292 1,311 6,497
2,951 794 251 274 1,570 1,311 7,151
Earnings per share 63.2p 19.5p 6.1p 6.7p 31.7p 32.1p 159.3p
Weighted average number of shares (millions) 4,077 4,077
Year ended 31 December 2023
Total Intangible Intangible Major Trans- Significant Core
results amort- impair- restruct- action- legal, results
£m isation ment uring related Divest- £m
£m £m £m £m ments and
other
items
£m
Turnover 30,328 30,328
Cost of sales (8,565) 647 164 13 25 (7,716)
Gross profit 21,763 647 164 13 25 22,612
Selling, general and administration (9,385) 216 13 127 (9,029)
Research and development (6,223) 72 398 2 1 (5,750)
Royalty income 953 953
Other operating income/(expense) (363) 546 (183) -
Operating profit 6,745 719 398 382 572 (30) 8,786
Net finance expense (677) 1 7 (669)
Share of after tax profit/(loss) of (5) (5)
associates and joint ventures
Profit/(loss) on disposal of interest in 1 (1) -
associates
Profit before taxation 6,064 719 398 383 572 (24) 8,112
Taxation (756) (154) (94) (83) (100) (70) (1,257)
Tax rate % 12.5% 15.5%
Profit after taxation 5,308 565 304 300 472 (94) 6,855
Profit attributable to non-controlling 380 192 572
interests
Profit/(loss) attributable to shareholders 4,928 565 304 300 280 (94) 6,283
5,308 565 304 300 472 (94) 6,855
Earnings per share 121.6p 13.9p 7.5p 7.4p 6.9p (2.2)p 155.1p
Weighted average number of shares (millions) 4,052 4,052
Adjusting items full year 2024
Major restructuring and integration
Total Major restructuring charges incurred in 2024 were £353 million (2023:
£382 million), analysed as follows:
2024 2023
Cash Non- Total Cash Non- Total
£m cash £m £m cash £m
£m £m
Separation restructuring programme 200 36 236 199 117 316
Significant acquisitions 59 1 60 65 1 66
Legacy programmes 48 9 57 (1) 1 -
307 46 353 263 119 382
The Separation restructuring programme incurred cash charges of £200 million
primarily from the restructuring of some commercial and administrative
functions as well as Supply Chain. The non-cash charges of £36 million
primarily reflected the write-down of assets in manufacturing locations.
The programme focussed on the separation of GSK into two separate companies
and is now largely complete. The programme has delivered its target of £1.1
billion of annual savings, with total costs still expected at £2.4 billion,
with slightly higher cash charges of £1.7 billion but lower non-cash charges
of £0.7 billion.
Costs of significant acquisitions relate to integration costs of Sierra
Oncology Inc. (Sierra) and Affinivax Inc. (Affinivax) which were acquired in
Q3 2022, BELLUS Health Inc. (Bellus) acquired in Q2 2023 and Aiolos acquired
in Q1 2024.
Cash charges of £48 million under Legacy programmes primarily arose from the
divestment of the cephalosporins business.
Transaction-related adjustments
Transaction-related adjustments resulted in a net charge of £1,881 million
(2023: £572 million net charge), the majority of which related to
charges/(credits) for the remeasurement of contingent consideration
liabilities, the liabilities for the Pfizer put option, and Pfizer and
Shionogi preferential dividends in ViiV Healthcare.
Charge/(credit) 2024 2023
£m £m
Contingent consideration on former Shionogi-ViiV Healthcare joint Venture 1,533 934
(including Shionogi preferential dividends)
ViiV Healthcare put options and Pfizer preferential dividends 67 (245)
Contingent consideration on former Novartis Vaccines business 206 (187)
Contingent consideration on acquisition of Affinivax (22) 44
Other adjustments 97 26
Total transaction-related charges 1,881 572
The £1,533 million charge relating to the contingent consideration for the
former Shionogi-ViiV Healthcare joint venture represented an increase in the
valuation of the contingent consideration due to Shionogi, driven by £1,107
million from updated future sales forecasts and exchange rates, and the unwind
of the discount for £426 million. The £67 million charge relating to the
ViiV Healthcare put option and Pfizer preferential dividends represented an
increase in the valuation of the put option primarily as a result of updated
sales forecasts partly offset by higher preference dividends. The ViiV
Healthcare contingent consideration liability is fair valued under IFRS. An
explanation of the accounting for the non-controlling interests in ViiV
Healthcare is set out on page 18.
The £206 million charge relating to the contingent consideration on the
former Novartis Vaccines business primarily related to changes to future sales
forecasts.
The £22 million credit relating to the contingent consideration on the
acquisition of Affinivax primarily related to updated milestone payment dates
partly offset by the unwind of the discount.
Significant legal charges, Divestments, and other items
Significant legal charges in the full year primarily reflected the Q3 2024
charge of £1.8 billion ($2.3 billion) in relation to Zantac for the State
Courts Settlement, the Qui Tam Settlement, and the remaining 7% of pending
state court product liability cases, partially offset by reduced future legal
costs.
Legal charges provide for all significant legal matters and are not broken out
separately by litigation or investigation.
Divestments and other items primarily included other net income from
milestones and dividends related to investments, as well as amounts
reclassified from the foreign currency translation reserve to the income
statement upon the liquidation of subsidiaries.
The reconciliations between Total results and Core results for Q4 2024 and Q4
2023 are set out below.
Three months ended 31 December 2024
Total Intangible Intangible Major Trans- Significant Core
results amort- impair- restruct- action- legal, Divest- results
£m isation ment uring related ments and £m
£m £m £m £m other
items
£m
Turnover 8,117 8,117
Cost of sales (2,559) 183 22 15 (2,339)
Gross profit 5,558 183 22 15 5,778
Selling, general and administration (2,663) 35 1 (75) (2,702)
Research and development (2,031) 15 196 (1) (1,821)
Royalty income 176 176
Other operating income/(expense) (344) 16 417 (89) -
Operating profit 696 198 196 72 418 (149) 1,431
Net finance expense (139) 1 (138)
Profit/(loss) on disposal of interests in 6 (6) -
associates and joint ventures
Profit before taxation 563 198 196 72 418 (154) 1,293
Taxation (62) (36) (35) (11) (11) (19) (174)
Tax rate % 11.0% 13.5%
Profit after taxation 501 162 161 61 407 (173) 1,119
Profit attributable to non-controlling 87 86 173
interests
Profit/(loss) attributable to shareholders 414 162 161 61 321 (173) 946
501 162 161 61 407 (173) 1,119
Earnings per share 10.1p 4.0p 3.9p 1.5p 7.9p (4.2)p 23.2p
Weighted average number of shares (millions) 4,081 4,081
Three months ended 31 December 2023
Total Intangible Intangible Major Trans- Significant Core
results amort- impair- restruct- action- legal, Divest- results
£m isation ment uring related ments and £m
£m £m £m £m other
items
£m
Turnover 8,052 8,052
Cost of sales (2,418) 170 67 13 5 (2,163)
Gross profit 5,634 170 67 13 5 5,889
Selling, general and administration (2,678) 53 12 25 (2,588)
Research and development (2,047) 14 249 (2) 2 (1,784)
Royalty income 235 235
Other operating income/(expense) (571) 430 141 -
Operating profit 573 184 249 118 455 173 1,752
Net finance expense (193) 2 (191)
Share of after tax profit/(loss) of associates (1) (1)
and joint ventures
Profit before taxation 379 184 249 118 455 175 1,560
Taxation 19 (38) (59) (31) (71) (55) (235)
Tax rate % (5.0%) 15.1%
Profit after taxation 398 146 190 87 384 120 1,325
Profit attributable to non-controlling 48 104 152
interests
Profit attributable to shareholders 350 146 190 87 280 120 1,173
398 146 190 87 384 120 1,325
Earnings per share 8.6p 3.6p 4.7p 2.1p 6.9p 3.0p 28.9p
Weighted average number of shares (millions) 4,056 4,056
Adjusting items Q4 2024
Major restructuring and integration
Total Major restructuring charges incurred in Q4 2024 were £72 million (Q4
2023: £118 million), analysed as follows:
Q4 2024 Q4 2023
Cash Non- Total Cash Non- Total
£m cash £m £m cash £m
£m £m
Separation restructuring programme 31 22 53 92 16 108
Significant acquisitions 9 - 9 11 - 11
Legacy programmes 1 9 10 (2) 1 (1)
41 31 72 101 17 118
The Separation restructuring programme incurred cash charges of £31 million
primarily from restructuring of some commercial and administrative functions
as well as Global Supply Chain. The non-cash charges of £22 million primarily
reflected the write down of assets in manufacturing locations.
Costs of significant acquisitions relate to integration costs of Sierra and
Affinivax which were acquired in Q3 2022, Bellus acquired in Q2 2023 and
Aiolos acquired in Q1 2024.
Transaction-related adjustments
Transaction-related adjustments resulted in a net charge of £418 million (Q4
2023: £455 million), the majority of which related to charges/(credits) for
the remeasurement of contingent consideration liabilities, the liabilities for
the Pfizer put option, and Pfizer and Shionogi preferential dividends in ViiV
Healthcare.
Charge/(credit) Q4 2024 Q4 2023
£m £m
Contingent consideration on former Shionogi-ViiV Healthcare joint Venture 427 528
(including Shionogi preferential dividends)
ViiV Healthcare put options and Pfizer preferential dividends 13 (42)
Contingent consideration on former Novartis Vaccines business - (53)
Contingent consideration on acquisition of Affinivax (53) (3)
Other adjustments 31 25
Total transaction-related charges 418 455
The £427 million charge relating to the contingent consideration for the
former Shionogi-ViiV Healthcare joint venture represented an increase in the
valuation of the contingent consideration due to Shionogi by £318 million
driven by updated exchange rates, and the unwind of the discount for £109
million. The £13 million charge relating to the ViiV Healthcare put option
and Pfizer preferential dividends represented updated exchange rates partly
offset by a decrease in the valuation of the put option primarily as a result
of updated forecasts. The ViiV Healthcare contingent consideration liability
is fair valued under IFRS. An explanation of the accounting for the
non-controlling interests in ViiV Healthcare is set out on page 18.
There was minimal adjustment in the quarter relating to the contingent
consideration on the former Novartis Vaccines business primarily related to
changes to future sales forecasts and the unwind of the discount being offset
by updated exchange rates.
The £53 million credit relating to the contingent consideration on the
acquisition of Affinivax primarily related to updated milestone payment dates
partly offset by the unwind of the discount.
Significant legal charges, Divestments, and other items
Legal charges provide for all significant legal matters, including Zantac, and
are not broken out separately by litigation or investigation.
Divestments and other items included other net income, including milestones
and royalty income, and amounts reclassified from the foreign currency
translation reserve to the income statement upon the liquidation of
subsidiaries.
Financial information
Income statement
2024 2023 Q4 2024 Q4 2023
£m £m £m £m
TURNOVER 31,376 30,328 8,117 8,052
Cost of sales (9,048) (8,565) (2,559) (2,418)
Gross profit 22,328 21,763 5,558 5,634
Selling, general and administration (11,015) (9,385) (2,663) (2,678)
Research and development (6,401) (6,223) (2,031) (2,047)
Royalty income 639 953 176 235
Other operating income/(expense) (1,530) (363) (344) (571)
OPERATING PROFIT 4,021 6,745 696 573
Finance income 122 115 34 29
Finance expense (669) (792) (173) (222)
Share of after tax profit/(loss) of associates and joint ventures (3) (5) - (1)
Profit/(loss) on disposal of interests in associates and joint 6 1 6 -
ventures
PROFIT BEFORE TAXATION 3,477 6,064 563 379
Taxation (526) (756) (62) 19
Tax rate % 15.1% 12.5% 11.0% (5.0%)
PROFIT AFTER TAXATION 2,951 5,308 501 398
Profit attributable to non-controlling interests 376 380 87 48
Profit/(loss) attributable to shareholders 2,575 4,928 414 350
2,951 5,308 501 398
EARNINGS PER SHARE 63.2p 121.6p 10.1p 8.6p
Diluted earnings per share 62.2p 119.9p 10.0p 8.5p
Statement of comprehensive income
2024 2023 Q4 2024 Q4 2023
£m £m £m £m
Total profit for the period 2,951 5,308 501 398
Items that may be reclassified subsequently to income statement:
Exchange movements on overseas net assets and net (392) (22) (345) 65
investment hedges
Reclassification of exchange movements on liquidation or (87) (34) (31) (14)
disposal of overseas subsidiaries and associates
Fair value movements on cash flow hedges - (1) 1 (2)
Cost of hedging (4) - 1 -
Deferred tax on fair value movements on cash flow hedges 1 1 2 2
Reclassification of cash flow hedges to income statement 4 4 - -
(478) (52) (372) 51
Items that will not be reclassified to income statement:
Exchange movements on overseas net assets of (4) (25) 13 (8)
non-controlling interests
Fair value movements on equity investments (100) (244) 8 115
Tax on fair value movements on equity investments 17 14 11 (21)
Fair value movements on cash flow hedges 8 (40) 6 (6)
Remeasurement gains/(losses) on defined benefit plans 506 71 133 287
Tax on remeasurement losses/(gains) on defined benefit (122) (41) (35) (96)
plans
305 (265) 136 271
Other comprehensive income/(expense) for the period (173) (317) (236) 322
Total comprehensive income for the period 2,778 4,991 265 720
Total comprehensive income for the period attributable to:
Shareholders 2,406 4,636 165 680
Non-controlling interests 372 355 100 40
2,778 4,991 265 720
Balance sheet
31 December 2024 31 December 2023
£m £m
ASSETS
Non-current assets
Property, plant and equipment 9,227 9,020
Right of use assets 846 937
Goodwill 6,982 6,811
Other intangible assets 15,515 14,768
Investments in associates and joint ventures 96 55
Other investments 1,100 1,137
Deferred tax assets 6,757 6,049
Derivative instruments 1 -
Other non-current assets 1,942 1,584
Total non-current assets 42,466 40,361
Current assets
Inventories 5,669 5,498
Current tax recoverable 489 373
Trade and other receivables 6,836 7,385
Derivative financial instruments 109 130
Current equity investments - 2,204
Liquid investments 21 42
Cash and cash equivalents 3,870 2,936
Assets held for sale 3 76
Total current assets 16,997 18,644
TOTAL ASSETS 59,463 59,005
LIABILITIES
Current liabilities
Short-term borrowings (2,349) (2,813)
Contingent consideration liabilities (1,172) (1,053)
Trade and other payables (15,335) (15,844)
Derivative financial instruments (192) (114)
Current tax payable (703) (500)
Short-term provisions (1,946) (744)
Total current liabilities (21,697) (21,068)
Non-current liabilities
Long-term borrowings (14,637) (15,205)
Corporation tax payable - (75)
Deferred tax liabilities (382) (311)
Pensions and other post-employment benefits (1,864) (2,340)
Other provisions (589) (495)
Contingent consideration liabilities (6,108) (5,609)
Other non-current liabilities (1,100) (1,107)
Total non-current liabilities (24,680) (25,142)
TOTAL LIABILITIES (46,377) (46,210)
NET ASSETS 13,086 12,795
EQUITY
Share capital 1,348 1,348
Share premium account 3,473 3,451
Retained earnings 7,796 7,239
Other reserves 1,054 1,309
Shareholders' equity 13,671 13,347
Non-controlling interests (585) (552)
TOTAL EQUITY 13,086 12,795
Statement of changes in equity
Share Share Retained Other Share- Non- Total
capital premium earnings reserves holder's controlling equity
£m £m £m £m equity interests £m
£m £m
At 1 January 2024 1,348 3,451 7,239 1,309 13,347 (552) 12,795
Profit for the year 2,575 2,575 376 2,951
Other comprehensive (83) (86) (169) (4) (173)
income/(expense) for the year
Total comprehensive 2,492 (86) 2,406 372 2,778
income/(expense)
for the year
Distributions to non-controlling (416) (416)
interests
Dividends to shareholders (2,444) (2,444) (2,444)
Deconsolidation of former subsidiary - (2) (2)
Realised after tax losses on disposal 14 (14) -
or liquidation of equity investments
Share of associates and joint ventures 52 (52) -
realised profit/(loss) on disposal of
equity investments
Shares issued - 20 20 20
Write-down on shares held by ESOP (362) 362 -
Trusts
Shares acquired by ESOP Trusts 2 457 (459) -
Share-based incentive plans 344 344 344
Contributions from non-controlling 9 9
interests
Changes to non-controlling interests - 4 4
Hedging gain/loss after taxation (6) (6) (6)
transferred to non-financial assets
Tax on share-based incentive plans 4 4 4
At 31 December 2024 1,348 3,473 7,796 1,054 13,671 (585) 13,086
Share Share Retained Other Share- Non- Total
capital premium earnings reserves holder's controlling equity
£m £m £m £m equity interests £m
£m £m
At 1 January 2023 1,347 3,440 4,363 1,448 10,598 (502) 10,096
Profit for the year 4,928 - 4,928 380 5,308
Other comprehensive (45) (247) (292) (25) (317)
income/(expense) for the year
Total comprehensive 4,883 (247) 4,636 355 4,991
income/(expense)
for the year
Distributions to non-controlling (412) (412)
interests
Contributions from non-controlling 7 7
interests
Dividends to shareholders (2,247) (2,247) (2,247)
Realised after tax losses on disposal (26) 26 -
or liquidation of equity investments
Share of associates and joint ventures (7) 7 -
realised profit/(loss) on disposal of
equity investments
Share issued 1 9 10 10
Write-down of shares held by ESOP (324) 324 -
Trusts
Shares acquired by ESOP Trusts 2 283 (285) -
Share-based incentive plans 307 307 307
Hedging gain/(loss) after taxation 36 36 36
transferred to non-financial assets
Tax on share-based incentive plans 7 7 7
At 31 December 2023 1,348 3,451 7,239 1,309 13,347 (552) 12,795
Cash flow statement year ended 31 December 2024
2024 2023
£m £m
Profit after tax 2,951 5,308
Tax on profits 526 756
Share of after tax loss/(profit) of associates and joint ventures 3 5
(Profit)/loss on disposal of interest in associates and joint ventures (6) (1)
Net finance expense 547 677
Depreciation, amortisation and other adjusting items 2,985 2,849
(Increase)/decrease in working capital (175) (1,233)
Contingent consideration paid (1,235) (1,134)
Increase/(decrease) in other net liabilities (excluding contingent 2,265 869
consideration paid)
Cash generated from operations 7,861 8,096
Taxation paid (1,307) (1,328)
Total net cash inflow/(outflow) from operating activities 6,554 6,768
Cash flow from investing activities
Purchase of property, plant and equipment (1,399) (1,314)
Proceeds from sale of property, plant and equipment 65 28
Purchase of intangible assets (1,583) (1,030)
Proceeds from sale of intangible assets 131 12
Purchase of equity investments (103) (123)
Proceeds from sale of equity investments 2,356 1,832
Share transactions with non-controlling interests (1) -
Purchase of businesses, net of cash acquired (805) (1,457)
Investment in joint ventures and associates (43) -
Contingent consideration paid (19) (11)
Disposal of businesses (18) 49
Interest received 138 115
(Increase)/decrease in liquid investments 21 72
Dividends from joint ventures and associates 15 11
Dividend and distributions from investments 16 220
Proceeds from disposal of associates and Joint ventures - 1
Total net cash inflow/(outflow) from investing activities (1,229) (1,595)
Cash flow from financing activities
Issue of share capital 20 10
Repayment of long-term loans (1,615) (2,260)
Issue of long-term notes 1,075 223
Net increase/(decrease) in short-term loans (811) (333)
Increase in other short-term loans 266 -
Repayment of other short-term loans (81) -
Repayment of lease liabilities (226) (197)
Interest paid (632) (766)
Dividends paid to shareholders (2,444) (2,247)
Distribution to non-controlling interests (416) (412)
Contributions from non-controlling interests 9 7
Other financing items 129 334
Total net cash inflow/(outflow) from financing activities (4,726) (5,641)
Increase/(decrease) in cash and bank overdrafts in the year 599 (468)
Cash and bank overdrafts at beginning of year 2,858 3,425
Exchange adjustments (54) (99)
Increase/(decrease) in cash and bank overdrafts in the year 599 (468)
Cash and bank overdrafts at end of the year 3,403 2,858
Cash and bank overdrafts at end of year comprise:
Cash and cash equivalents 3,870 2,936
Overdrafts (467) (78)
3,403 2,858
Sales tables
Vaccines turnover - year ended 31 December 2024
Total US Europe International
Growth Growth Growth Growth
£m £% CER% £m £% CER% £m £% CER% £m £% CER%
Shingles 3,364 (2) 1 1,494 (21) (18) 917 1 3 953 45 52
Shingrix 3,364 (2) 1 1,494 (21) (18) 917 1 3 953 45 52
Meningitis 1,437 14 18 662 9 12 483 12 14 292 35 43
Bexsero 1,010 19 23 364 17 20 472 13 16 174 44 56
Menveo 387 2 5 298 - 3 7 (42) (42) 82 19 23
Other 40 29 32 - - - 4 - - 36 33 37
RSV 590 (52) (51) 503 (58) (57) 33 >100 >100 54 35 42
Arexvy 590 (52) (51) 503 (58) (57) 33 >100 >100 54 35 42
Influenza 408 (19) (16) 317 (15) (12) 31 (21) (18) 60 (36) (33)
Fluarix, FluLaval 408 (19) (16) 317 (15) (12) 31 (21) (18) 60 (36) (33)
Established Vaccines 3,339 2 6 1,310 4 7 722 (3) - 1,307 3 7
Infanrix, Pediarix 512 (8) (5) 265 (9) (6) 120 (1) 2 127 (11) (6)
Boostrix 681 11 14 429 9 12 137 12 15 115 17 24
Hepatitis 692 13 17 389 16 19 190 7 10 113 15 19
Rotarix 587 (4) (1) 172 (10) (8) 123 4 7 292 (4) 1
Synflorix 226 (18) (15) - - - 11 (69) (69) 215 (10) (7)
Priorix, Priorix Tetra, 323 22 26 39 >100 >100 122 (5) (2) 162 35 40
Varilrix
Cervarix 72 (40) (38) - - - 14 (58) (58) 58 (33) (31)
Other 246 15 19 16 (36) (36) 5 (17) (33) 225 24 28
Vaccines 9,138 (6) (3) 4,286 (19) (17) 2,186 3 5 2,666 17 23
ex COVID-19
solutions
Pandemic vaccines - (100) (100) - - - - (100) (100) - (100) (100)
Pandemic adjuvant - (100) (100) - - - - (100) (100) - (100) (100)
Vaccines 9,138 (7) (4) 4,286 (19) (17) 2,186 (3) (1) 2,666 16 21
Vaccines turnover - three months ended 31 December 2024
Total US Europe International
Growth Growth Growth Growth
£m £% CER% £m £% CER% £m £% CER% £m £% CER%
Shingles 848 (7) (4) 416 (14) (13) 250 12 15 182 (9) (5)
Shingrix 848 (7) (4) 416 (14) (13) 250 12 15 182 (9) (5)
Meningitis 295 8 12 82 (17) (16) 144 38 42 69 (1) 9
Bexsero 227 33 39 39 8 8 141 40 45 47 38 56
Menveo 50 (43) (41) 43 (32) (30) 2 (33) (67) 5 (76) (71)
Other 18 20 20 - - - 1 >100 >100 17 13 13
RSV 158 (70) (69) 116 (77) (76) 27 >100 >100 15 (55) (48)
Arexvy 158 (70) (69) 116 (77) (76) 27 >100 >100 15 (55) (48)
Influenza 105 11 14 73 38 42 17 (6) - 15 (37) (38)
Fluarix, FluLaval 105 11 14 73 38 42 17 (6) - 15 (37) (38)
Established Vaccines 806 5 8 298 20 22 180 (5) (2) 328 (1) 3
Infanrix, Pediarix 122 (17) (15) 59 (12) (10) 33 (21) (19) 30 (21) (18)
Boostrix 149 5 8 92 18 21 33 10 13 24 (29) (24)
Hepatitis 171 36 39 94 57 62 47 4 9 30 43 38
Rotarix 156 5 9 35 6 6 35 21 24 86 - 6
Synflorix 69 44 48 - - - 4 (56) (56) 65 67 72
Priorix, Priorix Tetra, 83 9 14 13 >100 >100 29 (6) - 41 2 5
Varilrix
Cervarix 6 (40) (40) - - - 3 - - 3 (57) (57)
Other 50 (32) (28) 5 (17) (33) (4) >(100) >(100) 49 (27) (21)
Vaccines 2,212 (14) (11) 985 (29) (27) 618 15 19 609 (7) (3)
ex COVID-19
solutions
Pandemic vaccines - >(100) >(100) - - - - (100) (100) - - -
Pandemic adjuvant - >(100) >(100) - - - - (100) (100) - - -
Vaccines 2,212 (14) (12) 985 (29) (27) 618 13 17 609 (7) (3)
Specialty Medicines turnover - year ended 31 December 2024
Total US Europe International
Growth Growth Growth Growth
£m £% CER% £m £% CER% £m £% CER% £m £% CER%
HIV 7,089 10 13 4,792 12 15 1,496 5 8 801 9 14
Dolutegravir products 5,599 4 7 3,536 3 6 1,316 2 4 747 7 12
Tivicay 1,350 (3) 1 781 (2) - 252 (6) (4) 317 - 5
Triumeq 1,325 (14) (11) 942 (12) (10) 222 (21) (19) 161 (14) (9)
Juluca 685 4 7 546 7 10 127 (7) (4) 12 (14) (7)
Dovato 2,239 23 27 1,267 23 26 715 18 20 257 43 50
Rukobia 161 38 41 149 35 39 8 14 14 4 >100 >100
Cabenuva 1,013 43 47 831 42 46 156 51 54 26 44 56
Apretude 279 87 93 270 81 87 - - - 9 - -
Other 37 (40) (37) 6 (68) (68) 16 (30) (26) 15 (25) (20)
Respiratory/Immunology 3,299 9 13 2,193 4 7 548 17 20 558 22 32
and Other
Nucala 1,784 8 12 970 (1) 2 450 17 20 364 24 34
Benlysta 1,490 10 14 1,222 9 12 115 16 19 153 19 27
Other 25 19 33 1 - - (17) (21) (21) 41 21 29
Oncology 1,410 93 98 1,000 >100 >100 337 17 19 73 59 72
Zejula 593 13 17 305 19 22 231 4 6 57 30 36
Blenrep 2 (94) (94) (3) (50) >(100) 5 (87) (87) - - -
Jemperli 467 >100 >100 382 >100 >100 74 >100 >100 11 >100 >100
Ojjaara/Omjjara 353 >100 >100 316 >100 >100 32 - - 5 - -
Other (5) >(100) (100) - - - (5) >(100) >(100) - - >100
Specialty Medicines 11,798 16 19 7,985 18 21 2,381 9 12 1,432 15 23
ex COVID-19 solutions
Pandemic 12 (73) (73) 10 - 10 1 (67) (67) 1 (97) >(100)
Xevudy 12 (73) (73) 10 - 10 1 (67) (67) 1 (97) >(100)
Specialty Medicines 11,810 15 19 7,995 18 21 2,382 9 12 1,433 13 20
Specialty Medicines turnover - three months ended 31 December 2024
Total US Europe International
Growth Growth Growth Growth
£m £% CER% £m £% CER% £m £% CER% £m £% CER%
HIV 1,969 11 14 1,398 14 17 387 3 7 184 4 11
Dolutegravir products 1,516 5 8 1,016 7 10 335 1 5 165 (1) 7
Tivicay 343 (2) 1 215 1 3 62 (9) (6) 66 (3) 3
Triumeq 346 (14) (11) 260 (11) (9) 50 (24) (20) 36 (20) (13)
Juluca 189 7 10 155 11 12 32 (3) 3 2 (50) (25)
Dovato 638 24 27 386 28 31 191 15 19 61 24 33
Rukobia 51 46 46 45 32 35 2 - - 4 >100 >100
Cabenuva 310 39 43 256 38 42 46 44 47 8 33 50
Apretude 84 62 65 81 56 60 - - - 3 - -
Other 8 (56) (50) - >(100) (80) 4 (43) (43) 4 (33) (33)
Respiratory/Immunology 910 5 9 623 - 2 139 11 15 148 31 42
and Other
Nucala 484 3 7 268 (8) (7) 115 13 18 101 31 42
Benlysta 423 9 12 356 7 9 30 15 19 37 23 33
Other 3 - 33 (1) >(100) (26) (6) (100) >(100) 10 67 83
Oncology 408 67 72 299 83 87 88 26 30 21 91 >100
Zejula 143 (6) (3) 73 (14) (12) 57 2 5 13 18 27
Blenrep 1 (83) (83) - - - 1 (83) (83) - - -
Jemperli 149 >100 >100 123 >100 >100 22 >100 >100 4 >100 >100
Ojjaara/Omjjara 118 >100 >100 103 >100 >100 11 - - 4 - -
Other (3) - - - - - (3) (50) (50) - 100 100
Specialty Medicines 3,287 14 18 2,320 15 18 614 8 12 353 17 26
ex COVID-19 solutions
Pandemic 11 (15) (15) 10 (9) - 1 (50) (50) - - -
Xevudy 11 (15) (15) 10 (9) - 1 (50) (50) - - -
Specialty Medicines 3,298 14 17 2,330 15 18 615 8 12 353 17 26
General Medicines turnover - year ended 31 December 2024
Total US Europe International
Growth Growth Growth Growth
£m £% CER% £m £% CER% £m £% CER% £m £% CER%
Respiratory 7,213 6 10 3,869 12 16 1,423 1 4 1,921 (3) 4
Anoro Ellipta 572 3 6 258 (4) (1) 221 15 17 93 (2) 5
Flixotide/Flovent 527 17 21 359 27 30 71 1 3 97 (1) 5
Relvar/Breo Ellipta 1,067 (3) 1 393 (10) (7) 372 2 4 302 - 8
Seretide/Advair 1,057 (7) (3) 364 7 10 219 (14) (13) 474 (13) (7)
Trelegy Ellipta 2,702 23 27 1,986 24 27 312 13 16 404 26 35
Ventolin 702 (6) (3) 362 (10) (7) 107 7 10 233 (6) (1)
Other Respiratory 586 (6) (1) 147 37 41 121 (15) (13) 318 (15) (9)
Other General Medicines 3,215 (5) - 234 (16) (14) 675 (7) (5) 2,306 (4) 3
Augmentin 635 1 7 - - - 185 (1) 2 450 2 10
Lamictal 405 (7) (3) 163 (16) (13) 106 (5) (3) 136 5 12
Other "Other General 2,175 (7) (1) 71 (17) (16) 384 (10) (8) 1,720 (5) 1
Medicines"
General Medicines 10,428 2 6 4,103 10 13 2,098 (1) 1 4,227 (3) 3
General Medicines turnover - three months ended 31 December 2024
Total US Europe International
Growth Growth Growth Growth
£m £% CER% £m £% CER% £m £% CER% £m £% CER%
Respiratory 1,806 3 7 957 5 7 368 2 5 481 2 9
Anoro Ellipta 147 (5) (2) 66 (15) (14) 57 12 14 24 (8) 4
Flixotide/Flovent 143 43 47 100 72 76 20 - - 23 5 14
Relvar/Breo Ellipta 275 (9) (5) 93 (28) (26) 97 2 6 85 9 15
Seretide/Advair 259 (6) (2) 91 17 18 53 (18) (17) 115 (14) (7)
Trelegy Ellipta 669 14 17 474 10 12 82 14 17 113 30 39
Ventolin 170 (14) (11) 86 (24) (21) 31 11 18 53 (7) (4)
Other Respiratory 143 13 20 47 74 78 28 (10) (3) 68 - 7
Other General Medicines 801 (3) 3 55 (17) (18) 154 (14) (11) 592 1 9
Augmentin 161 1 10 - - - 47 (4) - 114 4 15
Lamictal 101 (6) (3) 40 (18) (16) 25 (11) (7) 36 16 23
Other "Other General 539 (4) 2 15 (12) (24) 82 (20) (17) 442 - 7
Medicines"
General Medicines 2,607 1 6 1,012 3 5 522 (4) - 1,073 2 9
Commercial Operations turnover
Total US Europe International
Growth Growth Growth Growth
£m £% CER% £m £% CER% £m £% CER% £m £% CER%
Year ended 31 December 2024 31,376 3 7 16,384 4 6 6,666 2 4 8,326 5 11
Three months ended 31 December 2024 8,117 1 4 4,327 (1) 1 1,755 6 10 2,035 1 8
Commercial Operations turnover excluding COVID-19 solutions
Total US Europe International
Growth Growth Growth Growth
£m £% CER% £m £% CER% £m £% CER% £m £% CER%
Year ended 31 December 2024 31,364 4 8 16,374 4 6 6,665 4 6 8,325 5 12
Three months ended 31 December 2024 8,106 1 4 4,317 (1) 1 1,754 6 10 2,035 1 8
Segment information
Operating segments are reported based on the financial information provided to
the Chief Executive Officer and the responsibilities of the GSK Leadership
Team (GLT). GSK reports results under two segments: Commercial Operations and
Total R&D. Members of the GLT are responsible for each segment.
R&D investment is essential for the sustainability of the business.
However, for segment reporting the Commercial operating profits exclude
allocations of globally funded R&D.
The Total R&D segment is the responsibility of the Chief Scientific
Officer and is reported as a separate segment. The operating costs of this
segment includes R&D activities across Specialty Medicines, including HIV
and Vaccines. It includes R&D and some SG&A costs relating to
regulatory and other functions.
The Group's management reporting process allocates intra-Group profit on a
product sale to the market in which that sale is recorded, and the profit
analyses below have been presented on that basis.
Adjusting items reconciling segment profit and operating profit comprise items
not specifically allocated to segment profit. These include impairment and
amortisation of intangible assets, major restructuring costs, which include
impairments of tangible assets and computer software, transaction-related
adjustments related to significant acquisitions, proceeds and costs of
disposals of associates, products and businesses, Significant legal charges
and expenses on the settlement of litigation and government investigations,
other operating income other than royalty income, and other items including
amounts reclassified from the foreign currency translation reserve to the
income statement upon the liquidation of a subsidiary where the amount exceeds
£25 million.
Turnover by segment
2024 2023 Growth Growth
£m £m £% CER%
Commercial Operations (total turnover) 31,376 30,328 3 7
Operating profit by segment
2024 2023 Growth Growth
£m £m £% CER%
Commercial Operations 15,335 14,656 5 9
Research and Development (5,845) (5,607) 4 7
Segment profit 9,490 9,049 5 11
Corporate and other unallocated costs (342) (263)
Core operating profit 9,148 8,786 4 11
Adjusting items (5,127) (2,041)
Total operating profit 4,021 6,745 (40) (33)
Finance income 122 115
Finance costs (669) (792)
Share of after tax profit/(loss) of associates and (3) (5)
joint ventures
Profit/(loss) on disposal of associates and joint ventures 6 1
Profit before taxation 3,477 6,064 (43) (34)
Commercial Operations Core operating profit of £15,335 million grew in the
full year driven by strong sales and favourable product and regional mix, as
well as price and channel mix benefits and supply chain efficiencies, and a
reversal of the Zejula royalty dispute legal provision in Q1 2024. This was
partly offset by charges to drive future supply chain efficiencies, continued
disciplined investment in growth assets and lower royalty income.
The R&D segment operating expense of £5,845 million grew in the full year
driven by continued spend across the portfolio, and increased investment in
Specialty Medicines including camlipixant, bepirovirsen and Benlysta, as well
as the long acting TSLP asset acquired as part of the Aiolos acquisition. In
Oncology, increased investment in Jemperli and ADC assets was offset by
investment decreases following the launches of Ojjaara and progression to
completion of Zejula studies. In HIV investment on long-acting medicines
continued, and in Vaccines, pneumococcal (MAPS) and mRNA continued to drive
investment.
Turnover by segment
Q4 2024 Q4 2023 Growth Growth
£m £m £% CER%
Commercial Operations (total turnover) 8,117 8,052 1 4
Operating profit by segment
Q4 2024 Q4 2023 Growth Growth
£m £m £% CER%
Commercial Operations 3,323 3,612 (8) (4)
Research and Development (1,790) (1,731) 3 5
Segment profit 1,533 1,881 (19) (12)
Corporate and other unallocated costs (102) (129)
Core operating profit 1,431 1,752 (18) (10)
Adjusting items (735) (1,179)
Total operating profit 696 573 21 54
Finance income 34 29
Finance costs (173) (222)
Share of after tax profit/(loss) of associates and - (1)
joint ventures
Profit/(loss) on disposal of associates and joint ventures 6 -
Profit before taxation 563 379 49 97
Commercial Operations Core operating profit of £3,323 million declined in the
quarter. Strong Specialty Medicines sales performance, favourable product and
regional mix as well as price and channel mix benefits were more than offset
by charges to drive future supply chain efficiencies, continued disciplined
investment in growth assets and lower royalty income.
The R&D segment operating expense of £1,790 million in the quarter
reflected increased investment in Oncology, driven by ADC assets, Blenrep and
Jemperli, and Specialty Medicines, driven by camlipixant and the long acting
TSLP asset acquired as part of the Aiolos acquisition. This was partly offset
by decreased investment in Vaccines reflecting the launch of Arexvy and timing
of meningitis and mRNA studies.
Legal matters
The Group is involved in significant legal and administrative proceedings,
principally product liability, intellectual property, tax, anti-trust,
consumer fraud and governmental investigations, which are more fully described
in the 'Legal Proceedings' note in the Annual Report 2023. At 31 December
2024, the Group's aggregate provision for legal and other disputes (not
including tax matters described on page 9) was £1,446 million (31 December
2023: £267 million).
The Group may become involved in significant legal proceedings in respect of
which it is not possible to meaningfully assess whether the outcome will
result in a probable outflow, or to quantify or reliably estimate the
liability, if any, that could result from ultimate resolution of the
proceedings. In these cases, the Group would provide appropriate disclosures
about such cases, but no provision would be made.
The ultimate liability for legal claims may vary from the amounts provided and
is dependent upon the outcome of litigation proceedings, investigations and
possible settlement negotiations. The Group's position could change over time,
and, therefore, there can be no assurance that any losses that result from the
outcome of any legal proceedings will not exceed by a material amount the
amount of the provisions reported in the Group's financial accounts.
Significant legal developments since the date of the Q3 2024 results:
Product Liability
Zantac
As previously disclosed, on 9 October 2024 GSK reached agreements to resolve
93% (approximately 80,000 claimants) of the Zantac state court product
liability cases pending against GSK in the United States. Since that time, the
vast majority of the remaining cases have been resolved or been dismissed such
that less than 1% of the state court cases remain. GSK is in negotiations with
plaintiffs' counsel on the remaining cases, including two cases in Nevada
state court with trials scheduled in 2026. The trial in the Mayor & City
of Baltimore action remains scheduled to begin 1 June 2026.
GSK's appeal of the Delaware Superior Court's decision allowing Plaintiffs to
present expert evidence of general causation on all ten cancer types to a jury
remains pending. As previously disclosed, approximately 14,000 product
liability cases were dismissed following the grant of defendants' Daubert
motions in December 2022 in the Federal MDL proceeding. These are now on
appeal by the plaintiffs to the United States Court of Appeals for the
Eleventh Circuit, along with appeals in the medical monitoring and consumer
class action cases. GSK remains confident in its position and will continue to
vigorously defend against those appeals.
Intellectual Property
mRNA
On 2 January 2025, Acuitas Therapeutics Inc. filed a declaratory judgment
complaint against GSK, seeking judgment that COMIRNATY® does not infringe
five GSK patents. Acuitas also seeks a ruling that the patents are invalid.
GSK is preparing its response.
RSV
On 7 October 2024, the London High Court ruled in Pfizer's favour and
invalidated two of GSK's patents relating to RSV vaccine technology. The Court
held a hearing on 13 December 2024 at which GSK sought the Court's permission
to appeal its 7 October 2024 ruling. On 16 January 2025, the Court issued a
decision refusing permission to appeal. GSK is seeking permission to appeal
from the Court of Appeal. Additional decisions are expected in the Netherlands
at any time.
On 14 November 2024, GSK amended its complaint in the United States to add an
additional patent to the case. Trial remains scheduled for 3 August 2026.
Returns to shareholders
Quarterly dividends
The Board has declared a fourth interim dividend for Q4 2024 of 16p per share
(Q4 2023: 16p per share).
Dividends remain an essential component of total shareholder return and GSK
recognises the importance of dividends to shareholders. On 23 June 2021, at
the GSK Investor Update, GSK set out that from 2022 a progressive dividend
policy will be implemented guided by a 40 to 60 per cent pay-out ratio through
the investment cycle. Consistent with this, GSK has declared a dividend of 16p
for Q4 2024 and 61p per share for full year 2024. The expected dividend for
2025 is 64p per share. In setting its dividend policy, GSK considers the
capital allocation priorities of the Group and its investment strategy for
growth alongside the sustainability of the dividend.
Payment of dividends
The equivalent interim dividend receivable by ADR holders will be calculated
based on the exchange rate on 8 April 2025. An annual fee of $0.03 per ADS (or
$0.0075 per ADS per quarter) is charged by the Depositary. The ex-dividend and
record dates will be 21 February 2025 with a payment date of 10 April 2025.
Paid/ Pence per £m
Payable share
2024
First interim 11 July 2024 15 612
Second interim 10 October 2024 15 612
Third interim 9 January 2025 15 612
Fourth interim 10 April 2025 16 653
61 2,489
2023
First interim 13 July 2023 14 567
Second interim 12 October 2023 14 568
Third interim 11 January 2024 14 568
Fourth interim 11 April 2024 16 652
58 2,355
Share capital in issue
At 31 December 2024, 4,081 million shares (2023: 4,056 million) were in free
issue (excluding Treasury shares and shares held by the ESOP Trusts). No
Treasury shares have been repurchased since 2014. GSK expects to implement a
£2 billion share buyback programme over the next 18 months. The company
issued 2.2 million shares under employee share schemes for net proceeds of
£20 million (2023: £10 million).
At 31 December 2024, the ESOP Trusts held 64.3 million shares of GSK shares,
of which 63.7 million were held for the future exercise of share options and
share awards and 0.6 million were held for the Executive Supplemental Savings
plan. The carrying value of £397 million has been deducted from other
reserves. The market value of these shares was £866 million.
At 31 December 2024, the company held 169 million Treasury shares at a cost of
£2,958 million which has been deducted from retained earnings.
Weighted average number of shares
The numbers of shares used in calculating basic and diluted earnings per share
are reconciled below:
Weighted average number of shares
2024 2023 Q4 2024 Q4 2023
millions millions millions millions
Weighted average number of shares - basic 4,077 4,052 4,081 4,056
Dilutive effect of share options and share awards 65 59 64 60
Weighted average number of shares - diluted 4,142 4,111 4,145 4,116
Additional information
Accounting policies and basis of preparation
This unaudited Results Announcement contains condensed financial information
for the year-end and three months ended 31 December 2024 and should be read in
conjunction with the Annual Report 2023, which was prepared in accordance with
United Kingdom adopted International Financial Reporting Standards. This
Results Announcement has been prepared applying consistent accounting policies
to those applied by the Group in the Annual Report 2023.
The Group has not identified any changes to its key sources of accounting
judgements or estimations of uncertainty compared with those disclosed in the
Annual Report 2023.
This Results Announcement does not constitute statutory accounts of the Group
within the meaning of sections 434(3) and 435(3) of the Companies Act 2006.
The full Group accounts for 2023 were published in the Annual Report 2023,
which has been delivered to the Registrar of Companies and on which the report
of the independent auditor was unqualified and did not contain a statement
under section 498 of the Companies Act 2006.
Exchange rates
GSK operates in many countries and earns revenues and incurs costs in many
currencies. The results of the Group, as reported in Sterling, are affected by
movements in exchange rates between Sterling and other currencies. Average
exchange rates, as modified by specific transaction rates for large
transactions, prevailing during the period, are used to translate the results
and cash flows of overseas subsidiaries, associates and joint ventures into
Sterling. Period-end rates are used to translate the net assets of those
entities. The currencies which most influenced these translations and the
relevant exchange rates were:
2024 2023 Q4 2024 Q4 2023
Average rates:
US$/£ 1.28 1.24 1.27 1.25
Euro/£ 1.18 1.15 1.20 1.15
Yen/£ 193 175 195 183
Period-end rates:
US$/£ 1.25 1.27 1.25 1.27
Euro/£ 1.20 1.15 1.20 1.15
Yen/£ 197 180 197 180
Contingent liabilities
There were contingent liabilities at 31 December 2024 in respect of
arrangements entered into as part of the ordinary course of the Group's
business. No material losses are expected to arise from such contingent
liabilities. Provision is made for the outcome of legal and tax disputes where
it is both probable that the Group will suffer an outflow of funds and it is
possible to make a reliable estimate of that outflow. Descriptions of the
Significant legal disputes to which the Group is a party are set out on page
35, and pages 263 to 266 of the 2023 Annual Report.
Net assets
The book value of net assets increased by £291 million from £12,795 million
at 31 December 2023 to £13,086 million at 31 December 2024. This primarily
reflected contribution from Total comprehensive income for the period partly
offset by dividends paid to shareholders.
At 31 December 2024, the net deficit on the Group's pension plans was £103
million compared with £763 million at 31 December 2023. This decrease in the
net deficit is primarily due to an increase in the UK and US discount rates,
and pension contributions.
The estimated present value of the potential redemption amount of the Pfizer
put option related to ViiV Healthcare, recorded in Other payables in Current
liabilities, was £915 million (31 December 2023: £848 million).
Contingent consideration amounted to £7,280 million at 31 December 2024 (31
December 2023: £6,662 million), of which £6,061 million (31 December 2023:
£5,718 million) represented the estimated present value of amounts payable to
Shionogi relating to ViiV Healthcare, £575 million (31 December 2023: £424
million) represented the estimated present value of contingent consideration
payable to Novartis related to the Vaccines acquisition, £502 million (31
December 2023: £516 million) represented the estimated present value of
contingent consideration payable in relation to Affinivax, and £130 million
(31 December 2023: £nil) represented the estimated present value of
contingent consideration payable in relation to the Aiolos acquisition. Of the
contingent consideration payable to Shionogi at 31 December 2024,
£1,127 million (31 December 2023: £1,017 million) is expected to be paid
within one year.
Movements in contingent consideration are as follows:
2024 ViiV Group
Healthcare £m
£m
Contingent consideration at beginning of the period 5,718 6,662
Additions - 104
Remeasurement through income statement and other movements 1,533 1,768
Cash payments: operating cash flows (1,190) (1,235)
Cash payments: investing activities - (19)
Contingent consideration at end of the period 6,061 7,280
2023 ViiV Group
Healthcare £m
£m
Contingent consideration at beginning of the period 5,890 7,068
Remeasurement through income statement and other movements 934 739
Cash payments: operating cash flows (1,106) (1,134)
Cash payments: investing activities - (11)
Contingent consideration at end of the period 5,718 6,662
The liabilities for the Pfizer put option and the contingent consideration at
31 December 2024 have been calculated based on the period-end exchange rates,
primarily US$1.25/£1 and €1.20/£1. Sensitivity analyses for the Pfizer put
option and each of the largest contingent consideration liabilities are set
out below for the following scenarios:
Increase/(decrease) in financial liability and loss/(gain) in Income statement ViiV Shionogi-ViiV Healthcare Novartis Affinivax
Healthcare contingent Vaccines contingent
put option consideration contingent consideration
£m £m consideration £m
£m
10% increase in sales forecasts* 92 573 83 n/a
15% increase in sales forecasts* 139 857 125 n/a
10% decrease in sales forecasts* (92) (572) (83) n/a
15% decrease in sales forecasts* (138) (856) (125) n/a
1% (100 basis points) increase in discount rate (22) (180) (38) (14)
1.5% (150 basis points) increase in discount rate (32) (267) (55) (20)
1% (100 basis points) decrease in discount rate 23 194 43 14
1.5% (150 basis points) decrease in discount rate 34 298 67 21
10 cent appreciation of US Dollar 62 431 14 43
15 cent appreciation of US Dollar 97 677 22 68
10 cent depreciation of US Dollar (53) (368) (12) (37)
15 cent depreciation of US Dollar (76) (533) (17) (54)
10 cent appreciation of Euro 20 77 22 n/a
15 cent appreciation of Euro 31 123 35 n/a
10 cent depreciation of Euro (17) (65) (19) n/a
15 cent depreciation of Euro (24) (95) (27) n/a
10% increase in probability of milestone success n/a n/a 22 73
10% decrease in probability of milestone success n/a n/a (11) (73)
* The sales forecast is for ViiV Healthcare sales only in respect of the ViiV
Healthcare put option and the Shionogi-ViiV Healthcare contingent
consideration.
Business acquisitions
On 9 January 2024, GSK announced it had entered into an agreement to acquire
100% of Aiolos Bio, Inc. (Aiolos), a clinical stage biopharmaceutical company
focused on addressing the unmet treatment needs of patients with certain
respiratory and inflammatory conditions, for a total consideration of
US$1,004 million (£800 million) as adjusted for working capital acquired
paid upon closing and up to US$400 million (£319 million) in certain
success-based regulatory milestone payments. The estimated fair value of the
contingent consideration payable was US$120 million (£96 million). In
addition, GSK will also be responsible for success-based milestone payments as
well as tiered royalties owed to Jiangsu Hengrui Pharmaceuticals Co. Ltd.
(Hengrui). The acquisition completed on 14 February 2024.
Goodwill of £191 million has been recognised. The goodwill represents
specific synergies available to GSK from the business combination. The
goodwill has been allocated to the Group's R&D segment.
The fair values of the net assets acquired, including goodwill, are as
follows:
£m
Net assets acquired:
Intangible assets 886
Cash and cash equivalents 23
Other net liabilities (16)
Deferred tax liabilities (188)
705
Goodwill 191
Total consideration 896
As at 31 December 2024, the present value of the contingent consideration
payable was £130 million.
On 6 June 2024, GSK announced that it had acquired Elsie Biotechnologies, a
San Diego-based private biotechnology company dedicated to unlocking the full
potential of oligonucleotide therapeutics, for a total cash consideration of
up to US$51 million (approximately £40 million). The acquisition is
accounted for as a business combination but is not considered a significant
acquisition for the Group. This agreement was not subject to closing
conditions and the acquisition has been completed.
Net debt information
Reconciliation of cash flow to movements in net debt
2024 2023
£m £m
Total Net debt at beginning of the period (15,040) (17,197)
Increase/(decrease) in cash and bank overdrafts 599 (468)
Increase/(decrease) in liquid investments (21) (72)
Repayment of long-term loans(1) 1,615 2,260
Issue of long-term notes (1,075) (223)
Net (increase)/decrease in short-term loans 811 333
Increase in other short-term loans(2) (266) -
Repayment of other short-term loans(2) 81 -
Repayment of lease liabilities 226 197
Net debt of subsidiary undertakings acquired - 50
Exchange adjustments 117 554
Other non-cash movements (142) (474)
(Increase)/decrease in net debt 1,945 2,157
Total Net debt at end of the period (13,095) (15,040)
(1) Repayment of long-term loans for 2024 of £1,615 million (2023 : £2,260
million) includes the current portion of long-term borrowings of £1,615
million (2023: £2,116 million) which was classified as short term borrowing
on the balance sheet and previously presented as repayment of short-term
loans.
(2) Other short-term loans include bank loans presented within short-term
borrowings on the balance sheet, with an initial maturity of greater than
three months.
Net debt analysis
31 December 2024 31 December 2023
£m £m
Liquid investments 21 42
Cash and cash equivalents 3,870 2,936
Short-term borrowings (2,349) (2,813)
Long-term borrowings (14,637) (15,205)
Total Net debt at the end of the period (13,095) (15,040)
Free cash flow reconciliation
2024 2023 Q4 2024 Q4 2023
£m £m £m £m
Net cash inflow/(outflow) from operating activities 6,554 6,768 2,329 3,196
Purchase of property, plant and equipment (1,399) (1,314) (544) (486)
Proceeds from sale of property, plant and equipment 65 28 61 7
Purchase of intangible assets (1,583) (1,030) (591) (297)
Proceeds from disposals of intangible assets 131 12 5 -
Net finance costs (494) (651) (200) (254)
Dividends from associates and joint ventures 15 12 - 11
Contingent consideration paid (reported in investing (19) (11) (8) (4)
activities)
Distributions to non-controlling interests (416) (412) (128) (78)
Contributions from non-controlling interests 9 7 - -
Free cash inflow/(outflow) 2,863 3,409 924 2,095
Reconciliation of Total Operating Profit to Core EBITDA
The Total net debt/Core EBITDA ratio is disclosed solely for the purpose of
demonstrating a leverage ratio that is used by analysts, investors and other
stakeholders and which assesses the strength of the balance sheet. It is
calculated at the end of the financial reporting year.
2024 2023
£m £m
Total Operating profit 4,021 6,745
Adjusting items 5,127 2,041
Core Operating profit 9,148 8,786
Including:
Share of after tax profit/(loss) of associates and joint venture (3) (5)
Excluding:
Core depreciation 1,096 1,081
Core amortisation 452 493
Core EBITDA 10,693 10,355
Total Net debt to Core EBITDA ratio
2024 2023
£m £m
Total Net debt 13,095 15,040
Core EBITDA 10,693 10,355
Total Net debt to Core EBITDA ratio 1.2 1.5
Post balance sheet event
On 13 January 2025, GSK announced it had entered into an agreement to acquire
IDRx, Inc. (IDRx) a clinical-stage biopharmaceutical company dedicated to
transforming cancer care with intelligently designed precision therapies. The
acquisition includes lead molecule, IDRX-42, a highly selective
investigational small molecule tyrosine kinase inhibitor (TKI) being developed
as a first- and second-line therapy for the treatment of gastrointestinal
stromal tumours.
GSK will acquire all of the outstanding equity interests (including all
options and other incentive equity) in IDRx for up to US$1.15 billion of total
cash consideration, comprising an upfront payment of US$1 billion with
potential for an additional US$150 million success-based regulatory approval
milestone payment. GSK will also be responsible for success-based milestone
payments as well as tiered royalties for IDRX-42 owed to Merck KGaA,
Darmstadt, Germany. The transaction is subject to customary conditions,
including applicable regulatory agency clearances under the Hart-Scott-Rodino
Act in the US and is expected to close in the first quarter of 2025.
Related party transactions
Details of GSK's related party transactions are disclosed on page 235 of our
2023 Annual Report.
R&D commentary
Pipeline overview
Medicines and vaccines in phase III development (including major lifecycle 19 Respiratory, Immunology and Inflammation (6)
innovation or under regulatory review)
• Nucala (anti-IL5 biologic) chronic obstructive pulmonary disease
• depemokimab (ultra long-acting anti-IL5 biologic) severe eosinophilic asthma,
eosinophilic granulomatosis with polyangiitis (EGPA), chronic rhinosinusitis
with nasal polyps (CRSwNP), hyper-eosinophilic syndrome (HES)
• latozinemab (AL001, anti-sortilin) frontotemporal dementia
• camlipixant (P2X3 receptor antagonist) refractory chronic cough
• Ventolin (salbutamol, Beta 2 adrenergic receptor agonist) asthma
• linerixibat (IBATi) cholestatic pruritus in primary biliary cholangitis
Oncology (5)
• Blenrep (anti-BCMA ADC) multiple myeloma
• Jemperli (anti-PD-1) 1L endometrial cancer, colon cancer, rectal cancer, head
and neck cancer
• Zejula (PARP inhibitor) 1L ovarian and non-small cell lung cancer,
glioblastoma
• belrestotug (anti-TIGIT) 1L non-small cell lung cancer
• cobolimab (anti-TIM-3) 2L non-small cell lung cancer
Infectious Diseases (8)
• Arexvy (RSV vaccine) RSV adults (18-49 years of age at increased risk (AIR)
and 18+ immunocompromised)
• gepotidacin (bacterial topoisomerase inhibitor) uncomplicated urinary tract
infection and urogenital gonorrhoea
• bepirovirsen (HBV ASO) hepatitis B virus
• Bexsero (meningococcal B vaccine) infants (US)
• MenABCWY (gen 1) vaccine candidate
• tebipenem pivoxil (antibacterial carbapenem) complicated urinary tract
infection
• ibrexafungerp (antifungal glucan synthase inhibitor) invasive candidiasis
• GSK4178116 (varicella vaccine) varicella new strain individuals 12 months of
age and older
Total medicines and vaccines in all phases of clinical development 71
Total projects in clinical development (inclusive of all phases and 90
indications)
Therapy area updates
The following provides updates on key medicines and vaccines by therapy area
that will help drive growth for GSK to meet its future outlooks.
Respiratory, Immunology and Inflammation
camlipixant (P2X3 receptor antagonist)
Camlipixant (BLU-5937) is an investigational, highly selective oral P2X3
antagonist currently in development for first-line treatment of adult patients
suffering from refractory chronic cough (RCC). The CALM phase III development
programme to evaluate the efficacy and safety of camlipixant for use in adults
with RCC is ongoing.
Trial name (population) Phase Design Timeline Status
CALM-1 (refractory chronic cough) III A 52-week, randomised, double-blind, placebo-controlled, parallel-arm efficacy Trial start: Recruiting
and safety trial with open-label extension of camlipixant in adult
participants with refractory chronic cough, including unexplained chronic Q4 2022
cough
NCT05599191
CALM-2 (refractory chronic cough) III A 24-week, randomised, double-blind, placebo-controlled, parallel-arm efficacy Trial start: Recruiting
and safety trial with open-label extension of camlipixant in adult
participants with refractory chronic cough, including unexplained chronic Q1 2023
cough
NCT05600777
depemokimab (long acting anti-IL5)
Depemokimab is in late-stage development in a range of IL-5 mediated
conditions including asthma with type 2 inflammation, chronic rhinosinusitis
with nasal polyps (CRSwNP), hypereosinophilic syndrome (HES) and eosinophilic
granulomatosis with polyangiitis (EGPA). It is the first ultra-long-acting
biologic engineered to have an extended half-life and high binding affinity
and potency for IL-5, enabling six-month dosing intervals in phase III
clinical trials.
Positive phase III data from the pivotal SWIFT-1 and SWIFT-2 trials in asthma
with type 2 inflammation and the ANCHOR-1 and ANCHOR-2 trials in patients with
CRSwNP are being used to support regulatory filings in major markets.
Regulatory submissions seeking approval for the use of depemokimab in patients
with asthma with type 2 inflammation and in patients with CRSwNP, have been
accepted by the health authorities in the EU, China and Japan. Regulatory
acceptance is expected in the US in Q1 2025 with submissions in other markets
expected to progress through the year.
Key phase III trials for depemokimab:
Trial name (population) Phase Design Timeline Status
SWIFT-1 (severe eosinophilic asthma) III A 52-week, randomised, double-blind, placebo-controlled, parallel-group, Trial start: Completed; primary endpoint met
multi-centre trial of the efficacy and safety of depemokimab adjunctive
therapy in adult and adolescent participants with severe uncontrolled asthma Q1 2021
with an eosinophilic phenotype
NCT04719832
Data reported:
Q2 2024
SWIFT-2 (severe eosinophilic asthma) III A 52-week, randomised, double-blind, placebo-controlled, parallel-group, Trial start: Completed; primary endpoint met
multi-centre trial of the efficacy and safety of depemokimab adjunctive
therapy in adult and adolescent participants with severe uncontrolled asthma Q1 2021
with an eosinophilic phenotype
NCT04718103
Data reported:
Q2 2024
AGILE (SEA) III A 52-week, open label extension phase of SWIFT-1 and SWIFT-2 to assess the Trial start: Active, not recruiting
long-term safety and efficacy of depemokimab adjunctive therapy in adult and
(exten adolescent participants with severe uncontrolled asthma with an eosinophilic Q1 2022
phenotype
NCT05243680 sion)
NIMBLE (SEA) III A 52-week, randomised, double-blind, double-dummy, parallel group, Trial start: Active, not recruiting
multi-centre, non-inferiority trial assessing exacerbation rate, additional
measures of asthma control and safety in adult and adolescent severe asthmatic Q1 2021
participants with an eosinophilic phenotype treated with depemokimab compared
NCT04718389 with mepolizumab or benralizumab
ANCHOR-1 (chronic rhinosinusitis with nasal polyps; CRSwNP) III Efficacy and safety of depemokimab in participants with CRSwNP Trial start: Complete; primary endpoint met
Q2 2022
NCT05274750
Data reported: Q3 2024
ANCHOR-2 (CRSwNP) III Efficacy and safety of depemokimab in participants with CRSwNP Trial start: Complete; primary endpoint met
Q2 2022
NCT05281523
Data reported:
Q3 2024
OCEAN (eosinophilic granulomatosis with polyangiitis; EGPA) III Efficacy and safety of depemokimab compared with mepolizumab in adults with Trial start: Recruiting
relapsing or refractory EGPA
Q3 2022
NCT05263934
DESTINY (hyper-eosinophilic syndrome; HES) III A 52-week, randomised, placebo-controlled, double-blind, parallel group, Trial start: Recruiting
multicentre trial of depemokimab in adults with uncontrolled HES receiving
standard of care (SoC) therapy Q3 2022
NCT05334368
Nucala (mepolizumab)
Nucala is a first in class anti-IL-5 biologic and the only treatment approved
for use in the US and Europe across four IL-5 medicated conditions: severe
asthma with an eosinophilic phenotype, EGPA, HES and CRSwNP.
In September 2024, positive results from MATINEE, a phase III trial
investigating Nucala in patients with chronic obstructive pulmonary disease
(COPD) were announced. MATINEE met its primary endpoint with the addition of
Nucala to inhaled maintenance therapy showing a statistically significant and
clinically meaningful reduction in the annualised rate of moderate/severe
exacerbations versus placebo, with patients treated for up to 104 weeks.
Publication of the full results of MATINEE is expected in Q1 2025. The US FDA
has accepted these data for review as part of the regulatory process to grant
an indication for the use of Nucala in patients with COPD. Further submissions
are planned in 2025.
Key trials for Nucala:
Trial name (population) Phase Design Timeline Status
MATINEE (chronic obstructive pulmonary disease; COPD) III A multicentre randomised, double-blind, parallel-group, placebo-controlled Trial start: Complete; primary endpoint met
trial of mepolizumab 100 mg subcutaneously as add-on treatment in participants
with COPD experiencing frequent exacerbations and characterised by eosinophil Q4 2019
levels
NCT04133909
Data reported:
Q3 2024
Oncology
Blenrep (belantamab mafodotin)
GSK is pursuing regulatory approvals worldwide for Blenrep combinations for
the treatment of relapsed or refractory multiple myeloma based on positive
results from the phase III head-to-head DREAMM-7 and DREAMM-8 trials.
In November 2024, GSK announced positive overall survival (OS) results from
the DREAMM-7 trial evaluating a belantamab mafodotin combination regimen
compared to a standard-of-care daratumumab combination regimen in relapsed or
refractory multiple myeloma. Full results, presented at the American Society
of Hematology (ASH) Annual Meeting in December, showed a significant overall
survival benefit for the belantamab mafodotin combination, with a 42%
reduction in the risk of death versus standard of care.
Based on these data the US FDA has accepted for review a Biologics License
Application for belantamab mafodotin in combinations with bortezomib plus
dexamethasone (BorDex BVd ) and pomalidomide plus dexamethasone (PomDex
BPd ) for the treatment of patients with multiple myeloma who have received
at least one prior line of therapy. The US FDA has assigned a Prescription
Drug User Fee Act action date of 23 July 2025.
A new drug application also was accepted for priority review in China in
December 2024 for BVd as a treatment for relapsed or refractory multiple
myeloma based on the results of DREAMM-7. The National Medical Products
Administration of China also previously granted Breakthrough Therapy
Designation for the BVd combination, a designation intended to expedite
development of investigational drugs with potential for substantial
improvement over available therapies.
GSK continues to explore the potential for belantamab mafodotin to help
address unmet need for patients with multiple myeloma, in early treatment
lines and in combination with novel therapies and standard of care treatments.
In Q4 2024, GSK initiated DREAMM-10, a phase III trial evaluating belantamab
mafodotin plus lenalidomide and dexamethasone (BRd) versus daratumumab plus
lenalidomide and dexamethasone (DRd) in patients with newly diagnosed
transplant ineligible multiple myeloma.
Key phase III trials for Blenrep:
Trial name (population) Phase Design Timeline Status
DREAMM-7 (2L+ multiple myeloma; MM) III A multi-centre, open-label, randomised trial to evaluate the efficacy and Trial start: Active, not recruiting; primary endpoint met
safety of the combination of belantamab mafodotin, bortezomib, and
dexamethasone (B-Vd) compared with the combination of daratumumab, bortezomib Q2 2020
and dexamethasone (D-Vd) in participants with relapsed/refractory multiple
NCT04246047 myeloma
Primary data reported:
Q4 2023
DREAMM-8 (2L+ MM) III A multi-centre, open-label, randomised trial to evaluate the efficacy and Trial start: Recruiting, primary endpoint met
safety of belantamab mafodotin in combination with pomalidomide and
dexamethasone (B-Pd) versus pomalidomide plus bortezomib and dexamethasone Q4 2020
(P-Vd) in participants with relapsed/refractory multiple myeloma
NCT04484623
Primary data reported:
Q1 2024
DREAMM-10 (1L MM) III A multi-centre, open-label, randomised trial to evaluate the efficacy and Trial start: Recruiting
safety of belantamab mafodotin, lenalidomide and dexamethasone (B-Rd) versus
NCT06679101 daratumumab, lenalidomide, and dexamethasone (D-Rd) in participants with newly Q4 2024
diagnosed multiple myeloma who are ineligible for autologous stem cell
transplantation
Jemperli (dostarlimab)
Jemperli (dostarlimab) is the foundation of GSK's ongoing
immuno-oncology-based research and development programme. In January 2025, the
European Commission expanded the approval of Jemperli in combination with
chemotherapy (carboplatin and paclitaxel) for first-line treatment of all
adult patients with primary advanced or recurrent endometrial cancer who are
candidates for systemic therapy. This approval broadens the previous
indication for Jemperli plus chemotherapy in the EU to include patients with
mismatch repair proficient (MMRp)/microsatellite stable (MSS) tumours, which
represent approximately 75% of patients diagnosed with endometrial cancer and
who have limited treatment options.
In December 2024, the US FDA granted Breakthrough Therapy Designation to
dostarlimab for the treatment of patients with locally advanced mismatch
repair deficient (dMMR)/microsatellite instability-high (MSI-H) rectal cancer.
The designation was based on data showing no evidence of disease in 100% of
all 42 patients who completed treatment with dostarlimab in a phase II trial.
This is the second US regulatory designation to help expedite the development
of dostarlimab in locally advanced dMMR/MSI-H rectal cancer, following Fast
Track designation for the same patient population in January 2023.
Key trials for Jemperli:
Trial name (population) Phase Design Timeline Status
RUBY (1L stage III or IV endometrial cancer) III A randomised, double-blind, multi-centre trial of dostarlimab plus Trial start: Active, not recruiting; primary endpoints met
carboplatin-paclitaxel with and without niraparib maintenance versus placebo
plus carboplatin-paclitaxel in patients with recurrent or primary advanced Q3 2019
endometrial cancer
NCT03981796
Part 1 data reported:
Q4 2022
Part 2 data reported:
Q4 2023
PERLA (1L metastatic non-small cell lung cancer) II A randomised, double-blind trial to evaluate the efficacy of dostarlimab plus Trial start: Complete; primary endpoint met
chemotherapy versus pembrolizumab plus chemotherapy in metastatic non-squamous
non-small cell lung cancer Q4 2020
NCT04581824
Primary data reported:
Q4 2022
GARNET (advanced solid tumours) I/II A multi-centre, open-label, first-in-human trial evaluating dostarlimab in Trial start: Recruiting
participants with advanced solid tumours who have limited available treatment
options Q1 2016
NCT02715284
Primary data reported:
Q1 2019
AZUR-1 (locally advanced rectal cancer) II A single-arm, open-label trial with dostarlimab monotherapy in participants Trial start: Active, not recruiting
with untreated stage II/III dMMR/MSI-H locally advanced rectal cancer
Q1 2023
NCT05723562
AZUR-2 (untreated perioperative T4N0 or stage III colon cancer) III An open-label, randomised trial of perioperative dostarlimab monotherapy Trial start: Recruiting
versus standard of care in participants with untreated T4N0 or stage III
NCT05855200 dMMR/MSI-H resectable colon cancer Q3 2023
COSTAR Lung (advanced non-small cell lung cancer that has progressed on prior II/III A multi-centre, randomised, parallel group treatment, open label trial Trial start: Active, not recruiting
PD-(L)1 therapy and chemotherapy) comparing cobolimab + dostarlimab + docetaxel to dostarlimab + docetaxel to
docetaxel alone in participants with advanced non-small cell lung cancer who Q4 2020
NCT04655976 have progressed on prior anti-PD-(L)1 therapy and chemotherapy
JADE (locally advanced unresected head and neck cancer) III A randomised, double-blind, study to evaluate dostarlimab versus placebo as Trial start: Recruiting
sequential therapy after chemoradiation in participants with locally advanced
NCT06256588 unresected head and neck squamous cell carcinoma Q1 2024
Zejula (niraparib)
GSK continues to assess the potential of Zejula across multiple tumour types
and in combination with other agents. The ongoing development programme
includes several phase III combination studies including the RUBY Part 2 trial
of niraparib and dostarlimab in recurrent or primary advanced endometrial
cancer; the FIRST trial of niraparib and dostarlimab in stage III or IV
nonmucinous epithelial ovarian cancer; and the ZEAL trial of niraparib plus
pembrolizumab in advanced/metastatic non-small cell lung cancer.
In December 2024, GSK announced that the FIRST-ENGOT-OV44 phase III trial met
its primary endpoint of progression-free survival (PFS). The topline results
showed that the addition of dostarlimab to both platinum-based chemotherapy
and niraparib maintenance, with or without bevacizumab, had a statistically
significant effect on PFS versus the active comparator arm. The key secondary
endpoint of overall survival did not meet statistical significance. Further
analyses are ongoing, and data will be shared with health authorities and
presented at an upcoming scientific meeting.
Niraparib also is being evaluated in patients with newly diagnosed, MGMT
unmethylated glioblastoma in the phase III GLIOFOCUS trial (NCT06388733)
sponsored by the Ivy Brain Tumor Center and supported by GSK.
Key ongoing phase III trials for Zejula (see also RUBY Part 2 in Jemperli
section):
Trial name (population) Phase Design Timeline Status
ZEAL-1L (1L advanced non-small cell lung cancer maintenance) III A randomised, double-blind, placebo-controlled, multi-centre trial comparing Trial start: Active, not recruiting
niraparib plus pembrolizumab versus placebo plus pembrolizumab as maintenance
therapy in participants whose disease has remained stable or responded to Q4 2020
first-line platinum-based chemotherapy with pembrolizumab for Stage IIIB/IIIC
NCT04475939 or IV non-small cell lung cancer
FIRST (1L ovarian cancer maintenance) III A randomised, double-blind, comparison of platinum-based therapy with Trial start: Primary endpoint met
dostarlimab (TSR-042) and niraparib versus standard of care platinum-based
therapy as first-line treatment of stage III or IV non-mucinous epithelial Q4 2018
ovarian cancer
NCT03602859
Data reported:
Q4 2024
GSK5764227 (GSK'227) B7-H3-targeted antibody-drug conjugate
GSK is accelerating its portfolio of antibody-drug conjugates (ADCs) in a
breadth of solid tumours that complement our existing and emerging
capabilities and strengths. GSK'227 is a B7-H3-targeting ADC that has broad
potential due to high expression levels of the B7H3 antigen across multiple
tumour types. It is currently being evaluated alone and in combination with
other therapies in phase I trials of locally advanced or metastatic solid
tumours, including small-cell lung cancer (ES-SCLC) and osteosarcoma (bone
cancer), among others.
In December 2024, GSK'227 received two regulatory designations that support
its accelerated development in certain tumour types, further underscoring its
transformative potential. The EMA granted Priority Medicines (PRIME)
Designation for the treatment of patients with relapsed extensive-stage SCLC.
PRIME Designation supports the development of medicines with potential to
offer a major therapeutic advantage for patients. In addition, the FDA granted
Breakthrough Therapy Designation (BTD) for the treatment of adult patients
with relapsed or refractory osteosarcoma who have progressed on at least two
prior lines of therapy. BTD aims to expedite the development and review of
drugs with the potential to show improvement over currently available therapy
for serious conditions. The FDA previously granted BTD for GSK'227 in relapsed
or refractory ES-SCLC in August 2024.
HIV
GSK continues to lead in long-acting injectable innovation, transforming the
HIV marketplace.
In November 2024, ViiV Healthcare presented 42 abstracts at the HIV Glasgow
conference, highlighting the growing body of evidence supporting the use of
long-acting therapies in diverse patient populations. These studies included
new analyses showing the use of long-acting injectable Vocabria + Rekambys
(cabotegravir + rilpivirine LA) in clinical trial and real-world populations,
and the economic and public health impact of Apretude (cabotegravir LA for
PrEP).
Important data from the DOLCE study were also shared, demonstrating that
Dovato (dolutegravir/lamivudine) is highly effective in treatment-naïve
people with advanced HIV. Taking fewer medicines is important to many people
living with HIV and these data reinforce confidence in Dovato's safety and
efficacy compared to three-drug regimens.
In January 2025, the European Commission approved Vocabria + Rekambys for use
in adolescents, marking an important step in bringing this medicine to younger
people living with HIV.
A registrational study for four-monthly injectable PrEP also began in December
2024 and a registrational study for a four-monthly long-acting injectable
treatment is on track to start in 2025. In 2026, the assets that will deliver
six-monthly dosing are expected to be confirmed, enabling regimen selection.
Infectious Diseases
Arexvy (respiratory syncytial virus vaccine, adjuvanted)
In November 2024, Japan's Ministry of Health, Labour and Welfare (MHLW)
approved the extended use of Arexvy for the prevention of respiratory
syncytial virus (RSV) disease to include adults aged 50-59 at increased risk,
making it the only RSV vaccine approved for this population in Japan. The
vaccine has been approved for use in adults aged 50-59 at increased risk in 40
out of 58 of the markets where it is registered with further regulatory
reviews ongoing.
Key phase III trials for Arexvy:
Trial name (population) Phase Design Timeline Status
RSV OA=ADJ-004 III A randomised, open-label, multi-country trial to evaluate the immunogenicity, Trial start: Active, not recruiting; primary endpoint met
safety, reactogenicity and persistence of a single dose of the RSVPreF3 OA
(Adults ≥ 60 years old) investigational vaccine and different revaccination schedules in adults aged Q1 2021
60 years and above
NCT04732871 Primary data reported:
Q2 2022
RSV OA=ADJ-006 III A randomised, placebo-controlled, observer-blind, multi-country trial to Trial start: Complete; primary endpoint met
demonstrate the efficacy of a single dose of GSK's RSVPreF3 OA investigational
(ARESVI-006; Adults ≥ 60 years old) vaccine in adults aged 60 years and above Q2 2021
NCT04886596 Primary data reported:
Q2 2022;
two season data reported:
Q2 2023;
three season data reported: Q3 2024
RSV OA=ADJ-007 III An open-label, randomised, controlled, multi-country trial to evaluate the Trial start: Complete; primary endpoint met
immune response, safety and reactogenicity of RSVPreF3 OA investigational
(Adults ≥ 60 years old) vaccine when co-administered with FLU-QIV vaccine in adults aged 60 years and Q2 2021
above
NCT04841577 Primary data reported:
Q4 2022
RSV OA=ADJ-008 III A phase III, open-label, randomised, controlled, multi country trial to Trial start: Complete; primary endpoint met
evaluate the immune response, safety and reactogenicity of RSVPreF3 OA
investigational vaccine when co-administered with FLU HD vaccine in adults Q4 2022
aged 65 years and above
(Adults ≥ 65 years old)
Primary data reported:
NCT05559476 Q2 2023
RSV OA=ADJ-009 III A randomised, double-blind, multi-country trial to evaluate consistency, Trial start: Complete; primary endpoint met
safety, and reactogenicity of 3 lots of RSVPreF3 OA investigational vaccine
(Adults ≥ 60 years old) administrated as a single dose in adults aged 60 years and above Q4 2021
NCT05059301 Trial end:
Q2 2022
RSV OA=ADJ-017 III A phase III, open-label, randomised, controlled, multi-country trial to Trial start: Complete; data analysis ongoing
evaluate the immune response, safety and reactogenicity of an RSVPreF3 OA
(Adults ≥ 65 years old) investigational vaccine when co-administered with FLU aQIV (inactivated Q4 2022
influenza vaccine - adjuvanted) in adults aged 65 years and above
NCT05568797 Primary data reported:
Q2 2023
RSV OA=ADJ-018 III A phase III, observer-blind, randomised, placebo-controlled trial to evaluate Trial start: Complete; primary endpoint met
the non-inferiority of the immune response and safety of the RSVPreF3 OA
(Adults 50-59 years) investigational vaccine in adults 50-59 years of age, including adults at Q4 2022
increased risk of respiratory syncytial virus lower respiratory tract disease,
NCT05590403 compared to older adults ≥60 years of age Primary data reported:
Q4 2023
RSV OA=ADJ-019 III An open-label, randomised, controlled, multi-country trial to evaluate the Trial start: Complete
immune response, safety and reactogenicity of RSVPreF3 OA investigational
(Adults ≥ 60 years old) vaccine when co-administered with PCV20 in adults aged 60 years and older Q2 2023
NCT05879107
RSV OA=ADJ-023 IIb A randomised, controlled, open-label trial to evaluate the immune response and Trial start: Active, not recruiting; primary endpoint met
safety of the RSVPreF3 OA investigational vaccine in adults (≥50 years of
(Immunocompromised Adults 50-59 years) age) when administered to lung and renal transplant recipients comparing one Q3 2023
versus two doses and compared to healthy controls (≥50 years of age)
receiving one dose Primary data reported:
NCT05921903 Q4 2024
Key phase III trials for Arexvy (continued):
Trial name (population) Phase Design Timeline Status
RSV-OA=ADJ-020 III A study on the safety and immune response of investigational RSV OA vaccine in Trial start: Complete; primary endpoint met
combination with herpes zoster vaccine in healthy adults
(Adults aged >=50 years of age) Q3 2023
NCT05966090 Primary data reported:
Q3 2024
RSV-OA=ADJ-013 III An open-label, randomized, controlled study to evaluate the immune response, Trial start: Active, not recruiting
safety and reactogenicity of RSVPreF3 OA investigational vaccine when
(Adults aged 50 years and above) co-administered with a COVID-19 mRNA vaccine Q2 2024
NCT06374394
RSV OA=ADJ-025 IIIb An open-label study to evaluate the non-inferiority of the immune response and Trial start: Active, not recruiting
to evaluate the safety of the RSVPreF3 OA investigational vaccine in adults
(Adults, 18-49 years of age, at increased risk for RSV disease and older adult 18-49 years of age at increased risk for Respiratory Syncytial Virus disease, Q2 2024
participants, >=60 YOA) compared to older adults >=60 years of age
Primary data reported:
NCT06389487
Q3 2024
RSV OA=ADJ-021 III A study on the immune response, safety and the occurrence of Respiratory Trial start: Recruiting
Syncytial Virus (RSV)-associated respiratory tract illness after
(Adults aged 60 years and above) administration of RSV OA vaccine in adults 60 years and older Q3 2024
NCT06551181
RSV OA=ADJ-012 IIIb An Extension and Crossover Vaccination Study on the Immune Response and Safety Trial start: Recruiting
of a Vaccine Against Respiratory Syncytial Virus Given to Adults 60 Years of
(Adults aged 60 years and above) Age and Above Who Participated in RSV OA=ADJ-006 Study Q3 2024
NCT06534892
bepirovirsen (HBV ASO)
Bepirovirsen, a triple-action antisense oligonucleotide, is a potential new
treatment option for people with chronic hepatitis B (CHB) that has been
granted Fast Track designation by the US FDA and SENKU designation by the
Japanese Ministry of Health, Labour and Welfare in Japan for the treatment of
CHB. To further expand development in novel sequential regimens, GSK has
entered an agreement for an exclusive worldwide license to develop and
commercialise daplusiran/tomligisiran (GSK5637608, formerly JNJ-3989), an
investigational hepatitis B virus-targeted small interfering ribonucleic acid
(siRNA) therapeutic. This agreement provides an opportunity to investigate a
novel sequential regimen to pursue functional cure in an even broader patient
population with bepirovirsen.
Key trials for bepirovirsen:
Trial name (population) Phase Design Timeline Status
B-Well 1 bepirovirsen in nucleos(t)ide treated patients (chronic hepatitis B) III A multi-centre, randomised, double-blind, placebo-controlled trial to confirm Trial Start: Active, not recruiting
the efficacy and safety of treatment with bepirovirsen in participants with
NCT05630807 chronic hepatitis B virus Q1 2023
B-Well 2 bepirovirsen in nucleos(t)ide treated patients (chronic hepatitis B) III A multi-centre, randomised, double-blind, placebo-controlled trial to confirm Trial Start: Active, not recruiting
the efficacy and safety of treatment with bepirovirsen in participants with
chronic hepatitis B virus Q1 2023
NCT05630820
B-United bepirovirsen sequential therapy with daplusiran/tomligisiran in IIb A multi-centre, randomized, partially placebo-controlled, double-blind study Trial start: Recruiting
nucleos(t)ide treated patients (chronic hepatitis B) to investigate the safety and efficacy of sequential therapy with
daplusiran/tomligisiran followed by bepirovirsen in participants with chronic Q4 2024
NCT06537414 hepatitis B virus on background nucleos(t)ide analogue therapy
gepotidacin (bacterial topoisomerase inhibitor)
Gepotidacin is an investigational bactericidal, first-in-class antibiotic with
a novel mechanism of action for the treatment of uncomplicated urinary tract
infections (uUTI) and urogenital gonorrhoea. Positive data from three pivotal
trials demonstrate its potential to provide a new oral treatment option for
patients, including those with drug resistant infections. Gepotidacin is
currently under Priority Review by the US FDA. A decision on approval is
expected in March 2025. Filings for gonorrhoea are expected to follow later in
2025. If approved, gepotidacin could be the first in a new class of oral
antibiotics in uUTI in over 20 years.
Key phase III trials for gepotidacin:
Trial name (population) Phase Design Timeline Status
EAGLE-1 (uncomplicated urogenital gonorrhoea) III A randomised, multi-centre, open-label trial in adolescent and adult Trial start: Complete;
participants comparing the efficacy and safety of gepotidacin to ceftriaxone
plus azithromycin in the treatment of uncomplicated urogenital gonorrhoea Q4 2019 primary endpoint met
caused by Neisseria gonorrhoeae
NCT04010539
Data reported:
Q1 2024
EAGLE-2 (females with uUTI / acute cystitis) III A randomised, multi-centre, parallel-group, double-blind, double-dummy trial Trial start: Complete; primary endpoint met
in adolescent and adult female participants comparing the efficacy and safety
of gepotidacin to nitrofurantoin in the treatment of uncomplicated urinary Q4 2019
tract infection (acute cystitis)
NCT04020341
Data reported:
Q2 2023
EAGLE-3 (females with uUTI / acute cystitis) III A randomised, multi-centre, parallel-group, double-blind, double-dummy trial Trial start: Complete; primary endpoint met
in adolescent and adult female participants comparing the efficacy and safety
of gepotidacin to nitrofurantoin in the treatment of uncomplicated urinary Q2 2020
tract infection (acute cystitis)
NCT04187144
Data reported:
Q2 2023
MenABCWY vaccine candidate
GSK's 5-in-1 meningococcal ABCWY (MenABCWY) vaccine candidate combines the
antigenic components of its two well-established meningococcal vaccines with
demonstrated efficacy and safety profiles: Bexsero (Meningococcal Group B
Vaccine) and Menveo (Meningococcal Groups A, C, Y, and W-135). Combining the
protection offered by these vaccines aims to reduce the number of injections,
simplifying immunisation and potentially increasing series completion and
vaccination coverage of adolescents and young adults in the US. A Biologics
License Application (BLA) is currently under review by the US FDA with a
Prescription Drug User Fee Act (PDUFA) action date of 14 February 2025.
Key trials for MenABCWY vaccine candidate:
Trial name (population) Phase Design Timeline Status
MenABCWY - 019 IIIb A randomised, controlled, observer-blind trial to evaluate safety and Trial start: Complete; primary endpoints met
immunogenicity of GSK's meningococcal ABCWY vaccine when administered in
healthy adolescents and adults, previously primed with meningococcal ACWY Q1 2021
vaccine
NCT04707391
Data reported:
Q1 2024
MenABCWY - V72 72 III A randomised, controlled, observer-blind trial to demonstrate effectiveness, Trial start: Complete; primary endpoints met
immunogenicity, and safety of GSK's meningococcal Group B and combined ABCWY
vaccines when administered to healthy adolescents and young adults Q3 2020
NCT04502693
Data reported:
Q1 2023
Reporting definitions
CAGR (Compound annual growth rate)
CAGR is defined as the compound annual growth rate and shows the annualised
average rate for growth in sales and core operating profit between 2021 to
2026, assuming growth takes place at an exponentially compounded rate during
those years.
CER and AER growth
In order to illustrate underlying performance, it is the Group's practice to
discuss its results in terms of constant exchange rate (CER) growth. This
represents growth calculated as if the exchange rates used to determine the
results of overseas companies in Sterling had remained unchanged from those
used in the comparative period. CER% represents growth at constant exchange
rates. For those countries which qualify as hyperinflationary as defined by
the criteria set out in IAS 29 'Financial Reporting in Hyperinflationary
Economies' (Argentina and Turkey) CER growth is adjusted using a more
appropriate exchange rate reflecting depreciation of their respective
currencies in order to provide comparability and not to distort CER growth
rates.
£% or AER% represents growth at actual exchange rates.
Core Operating Margin
Core Operating margin is Core operating profit divided by turnover.
COVID-19 solutions
COVID-19 solutions include the sales of pandemic adjuvant and other COVID-19
solutions principally during the years from 2020-2023 and includes vaccine
manufacturing and Xevudy and the associated costs but does not include
reinvestment in R&D. This categorisation is used by management who believe
it is helpful to investors through providing clarity on the results of the
Group by showing the contribution to growth from COVID-19 solutions during
this period.
Free cash flow
Free cash flow is defined as the net cash inflow/outflow from operating
activities less capital expenditure on property, plant and equipment and
intangible assets, contingent consideration payments, net finance costs, and
dividends paid to non-controlling interests, contributions from
non-controlling interests plus proceeds from the sale of property, plant and
equipment and intangible assets, and dividends received from joint ventures
and associates. The measure is used by management as it is considered a good
indicator of net cash generated from business activities (excluding any cash
flows arising from equity investments, business acquisitions or disposals and
changes in the level of borrowing) available to pay shareholders dividends and
to fund strategic plans. Free cash flow growth is calculated on a reported
basis. A reconciliation of net cash inflow from operations to free cash flow
from operations is set out on page 40.
Free cash flow conversion
Free cash flow conversion is free cash flow from operations as a percentage of
profit attributable to shareholders.
General Medicines
General Medicines are usually prescribed in the primary care or community
settings by general healthcare practitioners. For GSK, this includes medicines
for inhaled respiratory, dermatology, antibiotics and other diseases.
Non-controlling interest
Non-controlling interest is the equity in a subsidiary not attributable,
directly or indirectly, to a parent.
Percentage points
Percentage points of growth which is abbreviated to ppts.
RAR (Returns and Rebates)
GSK sells to customers both commercial and government mandated contracts with
reimbursement arrangements that include rebates, chargebacks and a right of
return for certain pharmaceutical products principally in the US. Revenue
recognition reflects gross-to-net sales adjustments as a result. These
adjustments are known as the RAR accruals and are a source of significant
estimation uncertainty and fluctuation which can have a material impact on
reported revenue from one accounting period to the next.
Risk adjusted sales
Pipeline risk-adjusted sales are based on the latest internal estimate of the
probability of technical and regulatory success for each asset in development.
Specialty Medicines
Specialty Medicines are typically prescription medicines used to treat complex
or rare chronic conditions. For GSK, this comprises medicines for infectious
diseases, HIV, Respiratory/Immunology and Other, and Oncology.
Total Net debt
Net debt is defined as total borrowings less cash, cash equivalents, liquid
investments, and short-term loans to third parties that are subject to an
insignificant risk of change in value. The measure is used by management as it
is considered a good indicator of GSK's ability to meet its financial
commitments and the strength of its balance sheet.
Total Net debt/Core EBITDA ratio
Core EBITDA is defined as Total operating profit excluding adjusting items and
core depreciation and amortisation (as described on page 41) and includes
the share of after tax losses on associates. Core depreciation is total
depreciation less depreciation arising as part of major restructuring and is
disclosed as part of adjusting items. Core amortisation arises from computer
software and internally capitalised R&D development costs. Total Net debt
is defined above. The ratio is Total Net debt expressed as a multiple of Core
EBITDA which demonstrates a key leverage metric which assesses the strength of
the balance sheet.
Total and Core results
Total reported results represent the Group's overall performance. GSK uses a
number of non-IFRS measures to report the performance of its business. Core
results and other non-IFRS measures may be considered in addition to, but not
as a substitute for or superior to, information presented in accordance with
IFRS. Core results are defined on page 17 and other non-IFRS measures are
defined in pages 50 and 51.
Turnover excluding COVID-19 solutions
Turnover excluding COVID-19 solutions excludes the impact of sales of pandemic
adjuvant within Vaccines and Xevudy within Specialty Medicines related to the
COVID-19 pandemic principally during the years 2020-2023. Management believes
that the exclusion of the impact of these COVID-19 solutions sales aids
comparability in the reporting periods and understanding of GSK's growth
including by region versus prior periods.
Total Operating Margin
Total Operating margin is Total operating profit divided by turnover.
Total Earnings per share
Unless otherwise stated, Total earnings per share refers to Total basic
earnings per share.
Working capital
Working capital represents inventory and trade receivables less trade
payables.
Brand names and partner acknowledgements: brand names appearing in italics
throughout this document are trademarks of GSK or associated companies or used
under licence by the Group.
Guidance and Outlooks, assumptions and cautionary statements
2025 Guidance
GSK expects its turnover to increase between 3 to 5 per cent and Core
operating profit to increase between 6 to 8 per cent. Core earnings per share
is expected to increase between 6 to 8 per cent. This guidance is provided at
CER.
The Core earnings per share guidance assumes that we will implement our £2
billion share buyback programme over the next 18 months.
The Group has made planning assumptions that we expect turnover for Specialty
Medicines to increase by a low double-digit per cent, Vaccines to decrease by
a low-single digit per cent, and General Medicines to be broadly stable.
2021-2026 and 2031 Outlooks
By 2031, GSK now expects to achieve sales of more than £40 billion on a
risk-adjusted basis and at CER. This further increase reflects the inclusion
of Blenrep, the significant phase III progress since last year and multiple
launch opportunities in the 2025 to 2031 period.
As before, we have further upside potential from our early-stage pipeline and
prospective business development.
There is no change to our outlooks for 2021-2026. GSK continues to expect
sales to grow more than 7% on a CAGR basis and Core operating profit to
increase more than 11%, on the same basis. Core operating profit margin in
2026 continues to be expected to be more than 31%.
These outlooks are provided at CER and exclude any contribution from COVID-19
related solutions.
Assumptions and basis of preparation related to 2025 Guidance, 2021-26 and
2031 Outlooks
In outlining the guidance for 2025, and outlooks for the period 2021-26 and
for 2031, the Group has made certain assumptions about the macro-economic
environment, the healthcare sector (including regarding existing and possible
additional governmental legislative and regulatory reform), the different
markets and competitive landscape in which the Group operates and the delivery
of revenues and financial benefits from its current portfolio, its development
pipeline and restructuring programmes.
2025 Guidance
These planning assumptions as well as operating profit and earnings per share
guidance and dividend expectations assume no material interruptions to supply
of the Group's products, no material mergers, acquisitions or disposals, no
material litigation or investigation costs for the Company (save for those
that are already recognised or for which provisions have been made) and no
change in the Group's shareholdings in ViiV Healthcare. The assumptions also
assume no material changes in the healthcare environment or unexpected
significant changes in pricing or trade policies as a result of government or
competitor action. The 2025 guidance factors in all divestments and product
exits announced to date.
2021-26 and 2031 Outlooks
The assumptions for GSK's revenue, Core operating profit, Core operating
margin and cash flow outlooks, updated 2031 revenue outlook and margin
expectations through dolutegravir loss of exclusivity assume the delivery of
revenues and financial benefits from its current and development pipeline
portfolio of medicines and vaccines (which have been assessed for this purpose
on a risk-adjusted basis, as described further below); regulatory approvals of
the pipeline portfolio of medicines and vaccines that underlie these
expectations (which have also been assessed for this purpose on a
risk-adjusted basis, as described further below); no material interruptions to
supply of the Group's products; successful delivery of the ongoing and planned
integration and restructuring plans; no material mergers, acquisitions or
disposals or other material business development transactions; no material
litigation or investigation costs for the company (save for those that are
already recognised or for which provisions have been made); and no change in
the shareholdings in ViiV Healthcare. GSK assumes no premature loss of
exclusivity for key products over the period.
The assumptions for GSK's revenue, Core operating profit, Core operating
margin and cash flow outlooks, updated 2031 revenue outlook and margin
expectations through dolutegravir loss of exclusivity also factor in all
divestments and product exits announced to date as well as material costs for
investment in new product launches and R&D. Risk- adjusted sales includes
sales for potential planned launches which are risk-adjusted based on the
latest internal estimate of the probability of technical and regulatory
success for each asset in development.
Notwithstanding our guidance, outlooks and expectations, there is still
uncertainty as to whether our assumptions, guidance, outlooks and expectations
will be achieved.
All outlook statements are given on a constant currency basis and use 2024
average exchange rates as a base (£1/$1.28, £1/€1.18, £1/Yen 193).
Assumptions and cautionary statement regarding forward-looking statements
The Group's management believes that the assumptions outlined above are
reasonable, and that the guidance, outlooks, and expectations described in
this report are achievable based on those assumptions. However, given the
forward-looking nature of these guidance, outlooks, and expectations, they are
subject to greater uncertainty, including potential material impacts if the
above assumptions are not realised, and other material impacts related to
foreign exchange fluctuations, macro-economic activity, the impact of
outbreaks, epidemics or pandemics, changes in legislation, regulation,
government actions or intellectual property protection, product development
and approvals, actions by our competitors, and other risks inherent to the
industries in which we operate.
This document contains statements that are, or may be deemed to be,
"forward-looking statements". Forward-looking statements give the Group's
current expectations or forecasts of future events. An investor can identify
these statements by the fact that they do not relate strictly to historical or
current facts. They use words such as 'anticipate', 'estimate', 'expect',
'intend', 'will', 'project', 'plan', 'believe', 'target' and other words and
terms of similar meaning in connection with any discussion of future operating
or financial performance. In particular, these include statements relating to
future actions, prospective products or product approvals, future performance
or results of current and anticipated products, sales efforts, expenses, the
outcome of contingencies such as legal proceedings, dividend payments and
financial results. Other than in accordance with its legal or regulatory
obligations (including under the Market Abuse Regulation, the UK Listing Rules
and the Disclosure and Transparency Rules of the Financial Conduct Authority),
the Group undertakes no obligation to update any forward-looking statements,
whether as a result of new information, future events or otherwise. The reader
should, however, consult any additional disclosures that the Group may make in
any documents which it publishes and/or files with the SEC. All readers,
wherever located, should take note of these disclosures. Accordingly, no
assurance can be given that any particular expectation will be met and
investors are cautioned not to place undue reliance on the forward-looking
statements.
All guidance, outlooks and expectations should be read together with the
guidance and outlooks, assumptions and cautionary statements in this Q4 2024
earnings release and in the Group's 2023 Annual Report on Form 20-F.
Forward-looking statements are subject to assumptions, inherent risks and
uncertainties, many of which relate to factors that are beyond the Group's
control or precise estimate. The Group cautions investors that a number of
important factors, including those in this document, could cause actual
results to differ materially from those expressed or implied in any
forward-looking statement. Such factors include, but are not limited to, those
discussed under Item 3.D 'Risk Factors' in the Group's Annual Report on Form
20-F for 2023. Any forward-looking statements made by or on behalf of the
Group speak only as of the date they are made and are based upon the knowledge
and information available to the Directors on the date of this report.
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