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Issued:
Wednesday, 9 February 2022, London U.K.
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GSK delivers FY 2021 reported sales of £34 billion, stable at
AER, +5% CER;
Total EPS 87.6p -24% AER, -13% CER and Adjusted EPS of 113.2p -2%
AER, +9% CER
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Highlights
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Strong commercial execution drives growth across Pharmaceuticals,
Vaccines and Consumer Healthcare (excluding brands divested/under
review)
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Pharmaceuticals
£17.7 billion +4% AER, +10% CER; New and Specialty medicines
£10 billion +20% AER, +26% CER; Respiratory +21% AER, +28%
CER; Immuno-inflammation +22% AER, +29% CER; Oncology +31% AER,
+37% CER; total HIV -2% AER, +3% CER
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Vaccines
£6.8 billion -3% AER, +2% CER; Shingrix £1.7 billion -13% AER,
-9% CER
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COVID-19
solutions sales £1.4 billion; Xevudy £958 million; pandemic
adjuvant £447 million
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Consumer
Healthcare £9.6 billion -4% AER, stable CER (+4% excluding
brands divested/under review)
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Continued momentum in R&D delivery and strengthening of
pipeline
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3 major
product approvals during 2021; Apretude HIV long-acting medicine for
prevention (Dec); Xevudy
for COVID-19 (Dec); and Jemperli for endometrial cancer
(April)
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Strong
pipeline of 21 vaccines and 43 medicines, many offering potential
best or first-in-class opportunities for patients, and of which 22
are in pivotal trials
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Positive
Phase III data on daprodustat in anaemia due to chronic kidney
disease presented at American Society of Nephrology. On track to
file in EU and US in H1 2022
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20+
deals executed securing access to 5 novel clinical assets,
including with iTeos in immuno-oncology, Alector in
immuno-neurology and Vir Biotechnology in flu, plus technologies
that expand our capabilities in human genetics and AI
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Expect
to report milestones in 2022 on up to 7 of the 11 potential new
vaccines and medicines identified as key future growth drivers
including Older Adults RSV vaccine (H1 2022)
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Cost discipline supports delivery of Adjusted EPS of
113.2p
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Total
Group operating margin 18.2%. Total EPS 87.6p -24% AER, -13%
CER
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Adjusted
Group operating margin 25.8%. Adjusted EPS 113.2p -2% AER, +9% CER.
This included a contribution to growth from COVID-19 solutions of
approximately +8% AER, +9% CER (+17% AER, +20% CER for Q4
2021)
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Full
year 2021 net cash flow from operations £8.0 billion. Full
year free cash flow £4.4 billion
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On track to demerge a new world-leading Consumer Healthcare
business mid-2022
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Progress
to create new Board with appointment of Chair
Designate
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Capital
Markets Day on 28 February to highlight overall strategy,
capabilities and operations, including detailed financial
information and superior growth ambitions
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2022 guidance for new GSK
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New
GSK, the biopharma business, expected to deliver growth in 2022
sales of between 5% to 7% at CER and growth in 2022 Adjusted
operating profit of between 12% to 14% at CER including the
anticipated benefit in royalty income from Gilead
settlement
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This
2022 guidance excludes any contribution from COVID-19
solutions
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Dividend
of 23p declared for Q4 2021; 80p FY 2021
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Emma Walmsley, Chief Executive Officer, GSK: “We have
ended the year strongly, with another quarter of excellent
performance driven by first-class commercial execution, and we
enter 2022 with good momentum. This is going to be a landmark year
for GSK, with a step-change in growth expected and multiple R&D
catalysts, including milestones on up to 7 key late-stage pipeline
assets. 2022 is also the year when we demerge our world-leading
Consumer Healthcare business. At our capital markets event later
this month, we will set out the future growth ambitions and highly
attractive financial profile of this business, and the outstanding
opportunity it provides for shareholders.”
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The Total results are presented in summary on page 2 and under
‘Financial performance’ on pages 13 and 28 and Adjusted
results reconciliations are presented on pages 23, 24, 38 and 39.
Adjusted 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. Adjusted results are
defined on page 10 and £% or AER% growth, CER% growth, free
cash flow and other non-IFRS measures are defined on page 61. GSK
provides guidance on an Adjusted results basis only, for the
reasons set out on page 10. All expectations, guidance and targets
regarding future performance and dividend payments should be read
together with ‘Guidance, assumptions and cautionary
statements’ on pages 62 and 63.
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2021 results
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2021
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Growth
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Q4 2021
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Growth
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£m
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£%
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CER%
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£m
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£%
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CER%
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Turnover
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34,114
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-
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5
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9,527
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9
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13
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Total
operating profit
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6,201
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(20)
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(9)
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895
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(16)
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1
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Total
earnings per share
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87.6p
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(24)
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(13)
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15.0p
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10
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31
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Adjusted
operating profit
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8,806
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(1)
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9
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1,893
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4
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15
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Adjusted
earnings per share
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113.2p
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(2)
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9
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25.6p
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9
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22
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Net
cash from operating activities
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7,952
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(6)
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3,767
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(2)
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Free
cash flow
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4,437
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(18)
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2,901
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(7)
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2022 guidance
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We set out below our guidance for new GSK in 2022. This guidance is
provided at CER and excludes the commercial impact of COVID-19
solutions.
In 2022 we expect to continue to deliver on our strategic
priorities. We plan to increase targeted investment in R&D, to
build on and invest behind our top line momentum for key growth
drivers and to deliver the demerger of our Consumer Healthcare
business in mid-year. Assuming global economies and healthcare
systems approach normality as the year progresses, we expect sales
of Specialty Medicines to grow approximately 10% at CER and sales
of General Medicines to show a slight decrease, primarily
reflecting increased genericisation of established Respiratory
products. Vaccines sales are expected to grow at a low teens
percentage at CER for the year as a whole. However,
governments’ prioritisation of COVID-19 vaccination
programmes and ongoing measures to contain the pandemic are
expected to result in some continued disruption to adult
immunisations, with the impact weighted to the first half.
For Shingrix, despite the potential for short-term pandemic
disruption, we continue to expect strong double-digit growth and
record annual sales based on strong demand in existing markets and
geographical expansion.
Reflecting these factors, in 2022 for new GSK we expect sales to
grow between 5% to 7% at CER and Adjusted operating profit to grow
between 12% to 14% at CER as compared with 2021. This includes the
future benefit in royalty income from the settlement and license
agreement with Gilead Sciences, Inc. (Gilead) announced on 1
February 2022.
Medium term outlooks will be provided for Consumer Healthcare at a
Capital Markets Day scheduled for 28 February 2022.
Until such
time as the formal criteria for treating Consumer Healthcare as a
‘Discontinued operation’ have been satisfied (currently
expected in Q2 2022), GSK will continue to present the Consumer
Healthcare business within ‘Continuing operations’ and
will consolidate the business for reporting purposes until the
demerger has completed.
Dividend
policies and expected pay-out ratios are unchanged for new GSK and
new Consumer Healthcare (subject to new Consumer Healthcare board
approval). The expected distribution per share for the new Consumer
Healthcare Company for the second half of 2022 has been adjusted
from that highlighted at the GSK Investor Update in June 2021 to
reflect the total number of shares in the new Consumer Healthcare
company that are expected to be in issue upon demerger. The future
dividend policies and guidance in relation to the expected dividend
pay-out in 2022 across both new GSK and new Consumer Healthcare are
provided on page 43.
2022 COVID-19 solutions expectations
In
2022, based on known binding agreements from governments we expect
that COVID-19 solutions will contribute a similar sales level to
2021, but a substantially reduced profit contribution due to the
increased proportion of lower margin Xevudy sales. We expect this to reduce
new GSK Adjusted Operating profit growth (including COVID-19
solutions in both years) by between 5% to 7%. We continue to
discuss further opportunities with governments.
All
expectations, guidance and targets regarding future performance and
dividend payments should be read together with ‘Guidance,
assumptions and cautionary statements’ on pages 62 and 63. If
exchange rates were to hold at the closing rates on 31 January 2022
($1.34/£1, €1.20/£1 and Yen 155/£1) for the
rest of 2022, the estimated impact on 2022 Sterling turnover growth
for new GSK would be stable and if exchange gains or losses were
recognised at the same level as in 2021, the estimated impact on
2021 Sterling Adjusted Operating Profit growth for new GSK would
also be stable.
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Results presentation
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A
webcast of the quarterly results presentation hosted by Emma
Walmsley, GSK CEO, will be held at 2pm GMT on 9 February 2022.
Presentation materials will be published on www.gsk.com prior to
the webcast and a transcript of the webcast will be published
subsequently.
Information
available on GSK’s website does not form part of, and is not
incorporated by reference into, this Results
Announcement.
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Operating performance – 2021
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Turnover
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£m
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Growth
£%
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Growth
CER%
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Pharmaceuticals
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17,729
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4
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10
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Vaccines
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6,778
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(3)
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2
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Consumer
Healthcare
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9,607
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(4)
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-
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Group
turnover
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34,114
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-
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5
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Group turnover was £34,114 million in the year, stable at AER
but up 5% CER. Sales of COVID-19 solutions contributed
approximately 4 percentage points to growth in the
year.
Pharmaceutical turnover in the year was £17,729 million, up 4%
AER and 10% CER. Sales of Xevudy, the monoclonal antibody treatment for COVID-19
of £958 million contributed approximately 6 percentage points
to total Pharmaceuticals growth.
Vaccines turnover was £6,778 million in the year, down 3% AER
but up 2% CER, primarily driven by pandemic adjuvant sales,
partially offset by lower demand for routine adult vaccination due
to COVID-19 vaccination programme deployment and disease
circulation across regions. Vaccines turnover excluding pandemic
vaccines decreased 9% AER, 5% CER to £6,331
million.
Consumer Healthcare turnover was £9,607 million, down 4% AER
but remained stable at CER reflecting dilution from divestments
given the completion of the portfolio rationalisation at the end of
Q1 2021. Sales excluding brands divested/under review decreased 1%
AER but increased 4% CER reflecting the underlying strength of
brands across the portfolio and categories and continuing growth in
e-commerce.
Operating profit
Total operating profit was £6,201 million compared with
£7,783 million in 2020. This primarily reflected an
unfavourable comparison to the net profit on disposal in Q2 2020 of
Horlicks and other Consumer brands and resultant sale of shares in
Hindustan Unilever. This was partly offset by lower major
restructuring costs, lower re-measurement charges on the contingent
consideration liabilities and the unwind in 2020 of the fair market
value uplift on inventory arising on completion of the Consumer
Healthcare Joint Venture with Pfizer.
Adjusted operating profit was £8,806 million, 1% lower than
2020 at AER, but 9% higher at CER on a turnover increase of 5% CER.
The Adjusted operating margin of 25.8% was 0.3 percentage points
lower at AER, 0.9 percentage points higher on a CER basis than in
2020. The increase in Adjusted operating profit primarily reflected
the benefit from incremental pandemic sales, sales growth in
Pharmaceuticals and tight control of ongoing costs, favourable
legal settlements and benefits from continued restructuring across
the business. This was offset by lower sales in Vaccines, higher
supply chain costs in Vaccines and Consumer Healthcare, divestments
in Consumer Healthcare and increased investment in R&D across
Vaccines and Pharmaceuticals.
Earnings per share
Total
EPS was 87.6p, compared with 115.5p in 2020. This primarily
reflected an unfavourable comparison as 2020 benefited from the net
profit on disposal of Horlicks and related transactions, partly
offset by a credit of £397 million to Taxation in 2021
resulting from the revaluation of deferred tax assets, lower major
restructuring costs and lower re-measurement charges on the
contingent consideration liabilities. Adjusted EPS was 113.2p
compared with 115.9p in 2020, down 2% AER but up 9% CER, on a 9%
CER increase in Adjusted operating profit primarily reflecting
incremental pandemic sales, sales increases in Pharmaceuticals,
tight cost control and favourable legal settlements and lower
interest costs, partly offset by lower sales in Vaccines, higher
supply chain costs in Vaccines, increased R&D investment and a
higher effective tax rate.
Cash flow
The net
cash inflow from operating activities for the year was £7,952
million (2020: £8,441 million). The decrease primarily
reflected adverse exchange impacts, increased trade receivables,
adverse timing of returns and rebates (RAR) and increased
separation costs, partly offset by improved adjusted operating
profit at CER and reduced tax payments including tax on
disposals.
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Operating performance – Q4 2021
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Turnover
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Q4 2021
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£m
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Growth
£%
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Growth
CER%
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Pharmaceuticals
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5,221
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20
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25
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Vaccines
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1,809
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(10)
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(7)
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Consumer
Healthcare
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2,497
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6
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10
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Group
turnover
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9,527
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9
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13
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Group
turnover was £9,527 million in the quarter, up 9% AER, 13%
CER. Sales of COVID-19 solutions contributed approximately 11
percentage points to total growth in the quarter.
Pharmaceutical
turnover in the quarter was £5,221 million, up 20% AER, 25%
CER. The increase was driven by strong growth in New and Specialty
products, partly offset by a decrease in the Established Products
portfolio. Sales of Xevudy
of £828 million contributed approximately 20 percentage points
to Pharmaceuticals growth in the quarter.
Vaccines
turnover decreased 10% AER, 7% CER to £1,809 million. This was
primarily driven by lower Meningitis vaccines sales associated with
the return to a normal US back-to-school season, lower
DTPa-containing vaccines sales due to unfavourable CDC purchasing
patterns in the US and lower Shingrix sales resulting from the
negative impact of COVID-19 vaccination programme deployment and
disease circulation, partly offset by pandemic adjuvant
sales.
Consumer
Healthcare turnover in the quarter was £2,497 million, up 6%
AER, 10% CER. Sales excluding brands divested/under review
increased 7% AER, 11% CER with strong growth across the whole
portfolio but particularly Respiratory health which rebounded from
the historically low cold and flu season in both Q4 2020 and Q1
2021.
Operating profit
Total operating profit was £895 million in Q4 2021 compared
with £1,061 million in Q4 2020. This reflected higher
re-measurement charges on the contingent consideration liabilities
including the impact of the Gilead settlement partly offset by
lower restructuring and higher profit on disposal of
assets.
Adjusted operating profit was £1,893 million, 4% higher than
Q4 2020 at AER, 15% higher at CER on a turnover increase of 13%
CER. The Adjusted operating margin of 19.9% was 0.9 percentage
points lower at AER, and 0.2 percentage points higher on a CER
basis than in Q4 2020. The increase in Adjusted operating profit
primarily reflected leverage from £920 million of pandemic
sales as well as strong growth in New and Specialty Products and a
favourable prior period RAR adjustment in Pharmaceuticals,
continued tight control of ongoing costs and benefits from
continued restructuring across the business. This was partly offset
by increased investment in R&D, increased investment behind
launches and higher supply chain costs resulting from lower demand
and higher inventory adjustments in Vaccines.
Earnings per share
Total EPS was 15.0p, compared with 13.6p in Q4 2020. This primarily
reflected lower restructuring and higher disposal income partly
offset by higher re-measurement charges. Adjusted EPS was 25.6p
compared with 23.3p in Q4 2020, up 9% AER and 22% CER, on a 15% CER
increase in Adjusted operating profit reflecting positive leverage
from Xevudy sales in the quarter and lower interest costs
partly offset by a higher non-controlling interest allocation of
Consumer Healthcare profits.
Cash flow
The net cash inflow from operating activities for the quarter was
£3,767 million (Q4 2020: £3,855 million). The reduction
primarily reflected adverse exchange impacts and a lower seasonal
reduction in trade receivables in the quarter and phasing of tax
payments partly offset by improved adjusted operating profit at CER
and favourable timing of RAR.
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R&D pipeline
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We
focus on the science of the immune system, human genetics and
advanced technologies to develop Vaccines and Specialty Medicines
in four core therapeutic areas - Infectious Diseases, HIV, Oncology
and Immunology/Respiratory. We also remain open to opportunities
outside these core therapy areas where there are scale
opportunities consistent with the science of the immune system and
human genetic validation.
As
disclosed at the Investor Update on 23 June 2021, the company has a
robust late-stage R&D pipeline with many assets having the
potential to be first-in-class or best-in-class, as well as
offering significant strategic lifecycle opportunities. The
late-stage pipeline will help deliver the sales ambition set by the
company for 2021-2026 and beyond.
Our
R&D pipeline currently comprises 64 Vaccines and Specialty
Medicines.
Pipeline
news flow highlights since Q3 2021 are listed below in
chronological order.
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Infectious diseases
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Rotarix
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Submitted
a supplemental Biologics License Application for Rotarix Liquid (PCV free) in the
US
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Shingrix
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Received
approval in Canada for the prevention of shingles in adults aged 18
years and older who are or who will be at increased risk of
shingles due to immunodeficiency or immunosuppression caused by
known disease or therapy
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Varicella new strain
candidate vaccine
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Started
a Phase II trial of a varicella candidate vaccine for use in the US
for children aged 12 to 15 months
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Cervarix
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Withdrew
an application to the EMA for the prevention of head and neck
cancers related to human papillomavirus (HPV)
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HIV
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Apretude
(cabotegravir extended-release injectable
suspension)
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Received
approval from the FDA for Apretude, the first and only
long-acting injectable pre-exposure prophylaxis (PrEP) option to
reduce the risk of sexually acquired HIV-1
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Cabenuva/Vocabria
(cabotegravir) and Rekambys
(rilpivirine)
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Received
approval from the FDA for every-two-month dosing for virologically
suppressed adults living with HIV without prior treatment failure
or resistance to cabotegravir or rilpivirine
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Announced
a decision from the European Commission to update the Summary of
Product Characteristics for Vocabria and Janssen’s Rekambys
injections to be initiated with or without an oral lead-in period
for the long-acting treatment of HIV
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Presented
positive interim data from the CARISEL Phase IIIb trial showing
Vocabria and
Janssen’s Rekambys can be implemented successfully in a
variety of European healthcare settings at the 2021 European AIDS
Conference
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VH4004280 (capsid protein inhibitor)
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Dosed
the first patient in a Phase I trial investigating our capsid
protein inhibitor for HIV
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Oncology
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Blenrep
(belantamab mafodotin)
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Presented
new data from the DREAMM-9 Phase I trial and two collaborative
studies at the 2021 American Society of Haematology annual meeting.
Collectively, these data suggest that with an optimised dose,
schedule and combination treatment, corneal events associated with
Blenrep may be reduced in
patients receiving earlier lines of therapy
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Expanded
our collaboration with SpringWorks Therapeutics to include two new
sub-studies evaluating the combination of Blenrep plus nirogacestat with
standard-of-care multiple myeloma therapies in the DREAMM-5
trial
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Jemperli
(dostarlimab)
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Received
approval in Canada for the treatment of adult patients with
mismatch repair deficient (dMMR) or microsatellite instability-high
(MSI-H) recurrent or advanced endometrial cancer, that has
progressed on or following prior treatment with a platinum
containing regimen
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Immuno-oncology
combinations
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Dosed
the first patient in a Phase I trial of GSK4428859 (EOS-448; TIGIT
antagonist) in combination with Jemperli (dostarlimab)
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GSK3326595 and GSK3368715
(PRMT5 inhibitor and Type I PRMT inhibitor)
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Removed
from the Phase I pipeline due to prioritisation within the
synthetic lethal portfolio (termination of in-license agreement
with Epizyme will be effective on 16 March 2022)
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Next-generation cell therapy
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Lyell
announced FDA clearance of an Investigational New Drug application
to initiate a Phase I trial, in collaboration with GSK, for LYL132
- an investigational T-cell receptor therapy that incorporates
next-generation enhancements for patients with solid tumours
expressing NY-ESO-1
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Immunology/Respiratory
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Nucala
(mepolizumab)
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Received
approval from the FDA for a 40 mg prefilled syringe for appropriate
patients aged 6 to 11 years old who have severe eosinophilic
asthma, administered at home or by a child’s health care
provider
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Received
approval from the European Commission for Nucala in three additional
eosinophil-driven diseases; hypereosinophilic syndrome,
eosinophilic granulomatosis with polyangiitis, and chronic
rhinosinusitis with nasal polyps, making it the only treatment in
Europe approved for use in four eosinophil-driven
diseases
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Received
approval in Canada as an add-on maintenance treatment with
intranasal corticosteroids in adult patients with severe chronic
rhinosinusitis with nasal polyps inadequately controlled by
intranasal corticosteroids alone
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GSK4527223 (AL001;
progranulin-elevating monoclonal antibody)
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Alector
presented positive data from the INFRONT-2 Phase II open-label
trial of AL001 for the treatment of symptomatic frontotemporal
dementia patients with a progranulin mutation at the 2021 Clinical
Trials on Alzheimer's Disease conference
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GSK4532990 (ARO-HSD; RNA
interference)
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Announced
a worldwide license agreement with Arrowhead Pharmaceuticals for
GSK4532990 (ARO-HSD), a genetically validated investigational RNA
interference therapeutic currently in Phase I/II trials for
patients with non-alcoholic steatohepatitis (NASH). The agreement
covers the medicine’s development and commercialisation
outside of greater China. The deal closed on 24 January
2022
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Benlysta
(belimumab)
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●
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Received
coverage in China’s 2021 National Reimbursement Drug List for
paediatric systemic lupus erythematosus in children aged five years
and older
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Recommended
by the UK National Institute for Health and Care Excellence (NICE)
as an add-on treatment option for active autoantibody-positive
systemic lupus erythematosus in eligible people with high disease
activity despite standard treatment
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GSK3888130 (IL-7
monoclonal antibody)
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●
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Dosed
the first patient in a Phase I trial investigating our monoclonal
antibody against IL-7, a genetically validated target for multiple
sclerosis
|
|
Opportunity driven
|
|
Daprodustat (oral hypoxia-inducible factor prolyl hydroxylase
inhibitor)
|
|
|
●
|
Presented
new data from five trials in the ASCEND Phase III programme at the
American Society of Nephrology’s Kidney Week 2021.
Presentations from the pivotal ASCEND-ND and ASCEND-D trials
confirm the potential for a new oral treatment for patients with
anaemia due to chronic kidney disease in both non-dialysis and
dialysis settings. These data were simultaneously published in the
New England Journal of Medicine
|
|
Linerixibat (IBAT inhibitor)
|
|
|
●
|
Dosed
the first patient in the GLISTEN Phase III trial for cholestatic
pruritus in primary biliary cholangitis
|
|
●
|
Received
Orphan Drug Designation from the European Commission
|
|
GSK3884464
|
|
|
●
|
Dosed
the first patient in a Phase I trial investigating GSK3884464 for
heart failure
|
|
COVID-19
|
|
Xevudy
(sotrovimab,
VIR-7831/GSK4182136)
|
|
|
●
|
Submitted
an application to the FDA requesting an amendment to the Emergency
Use Authorisation to include intramuscular
administration
|
|
●
|
Received
binding agreements for the sale of approximately 1.7 million doses
worldwide, including a portion of those procured by the US
Government
|
|
●
|
Oxford
University included sotrovimab in the RECOVERY trial, the world's
largest COVID-19 study, as a possible treatment for hospitalised
patients
|
|
●
|
Granted
marketing authorisation from the European Commission for the early
treatment of COVID-19 in adults and adolescents (aged 12 years and
over and weighing at least 40 kg) who do not require supplemental
oxygen and who are at increased risk of progressing to severe
infection
|
|
●
|
Announced
that preclinical studies demonstrated sotrovimab retains activity
against the full combination of mutations in the spike protein of
the Omicron variant
|
|
●
|
Granted
conditional marketing authorisation from the UK’s Medicines
and Healthcare products Regulatory Agency (MHRA) and a supply
agreement with the UK Government for the treatment of symptomatic
adults and adolescents (aged 12 years and over and weighing at
least 40 kg) with acute COVID-19 infection who do not require
oxygen supplementation and who are at increased risk of progressing
to severe infection
|
|
●
|
Announced
data from the COMET-TAIL Phase III trial demonstrating that
intramuscular administration of sotrovimab was non-inferior and
offered similar efficacy to intravenous administration for
high-risk populations
|
|
Vaccine collaborations
|
|
|
●
|
Medicago
submitted Emergency Use Authorisation for a jointly developed
plant-based COVID-19 vaccine candidate in Canada
|
|
●
|
Announced
with Medicago data from the Phase III trial of their plant-based
COVID-19 vaccine candidate, in combination with GSK’s
pandemic adjuvant, that demonstrated 71% efficacy against the main
variants of SARS-COV-2 circulating at the time of the
trial
|
|
●
|
Announced
with Sanofi that a single booster dose of the recombinant
adjuvanted COVID-19 vaccine candidate was well tolerated and
delivered consistently strong immune responses regardless of the
primary vaccine received
|
|
Contents
|
Page
|
|
|
|
|
Total
and Adjusted results
|
10
|
|
Financial
performance – 2021
|
13
|
|
Financial
performance – three months ended 31 December
2021
|
28
|
|
Cash
generation
|
42
|
|
Returns
to shareholders
|
43
|
|
|
|
|
Income
statements
|
45
|
|
Statement
of comprehensive income
|
46
|
|
Pharmaceuticals
turnover – year ended 31 December 2021
|
47
|
|
Pharmaceuticals
turnover – three months ended 31 December 2021
|
48
|
|
Vaccines
turnover – year ended 31 December 2021
|
49
|
|
Vaccines
turnover – three months ended 31 December 2021
|
50
|
|
Balance
sheet
|
51
|
|
Statement
of changes in equity
|
52
|
|
Cash
flow statement – year ended 31 December 2021
|
53
|
|
Segment
information
|
54
|
|
Legal
matters
|
56
|
|
Additional
information
|
57
|
|
Reconciliation
of cash flow to movements in net debt
|
60
|
|
Net
debt analysis
|
60
|
|
Free
cash flow reconciliation
|
60
|
|
Reporting
definitions
|
61
|
|
Guidance,
assumptions and cautionary statements
|
62
|
|
Contacts
|
|
GSK is
a science-led global healthcare company. For further information
please visit www.gsk.com/aboutus
|
|
GSK enquiries:
|
|
|
|
|
Media
enquiries:
|
Tim
Foley
|
+44 (0)
20 8047 5502
|
(London)
|
|
|
Kathleen
Quinn
|
+1 202
603 5003
|
(Washington)
|
|
|
|
|
|
|
Analyst/Investor
enquiries:
|
Nick
Stone
|
+44 (0)
7717 618834
|
(London)
|
|
|
James
Dodwell
|
+44 (0)
7881 269066
|
(London)
|
|
|
Mick
Readey
|
+44 (0)
7990 339653
|
(London)
|
|
|
Joshua
Williams
|
+44 (0)
7385 415719
|
(London)
|
|
|
Jeff
McLaughlin
|
+1 215
589 3774
|
(Philadelphia)
|
|
|
Frances
De Franco
|
+1 570
236 4850
|
(Philadelphia)
|
|
|
Sonya
Ghobrial
|
+44 (0)
7392 784784
|
(Consumer)
|
|
Registered in England & Wales:
No. 3888792
|
|
|
|
Registered Office:
980 Great West Road
Brentford, Middlesex
TW8 9GS
|
|
Total and Adjusted results
|
|
Total
reported results represent the Group’s overall
performance.
GSK
also uses a number of adjusted, non-IFRS, measures to report the
performance of its business. Adjusted 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.
Adjusted results are defined below and other non-IFRS measures are
defined on page 61.
GSK
believes that Adjusted 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.
Adjusted
results exclude the following items from Total results, together
with the tax effects of all of these items:
|
|
●
|
amortisation
of intangible assets (excluding computer software)
|
|
●
|
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 the one-off impact of the
revaluation of deferred tax assets and liabilities following
enactment of the increase in the headline rate of UK corporation
tax from 19% to 25% (effective 2023)
|
|
●
|
separation
costs include costs to establish Consumer Healthcare as an
independent business, as well as admission listing and demerger
costs
|
|
Costs
for all other ordinary course smaller scale restructuring and legal
charges and expenses are retained within both Total and Adjusted
results.
As
Adjusted 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 Adjusted earnings being
materially higher or lower than Total earnings. In particular, when
significant impairments, restructuring charges and legal costs are
excluded, Adjusted 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. 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.
The
enactment of the increase in the headline rate of UK corporation
tax from 19% to 25% (effective 2023) resulted in a credit to the
income statement of £325 million in Q2 2021 revised upwards to
£397 million in Q4 2021. Due to the magnitude, GSK has
reported this credit as an Adjusting item in the year so that it
does not obscure the key trends in the Group’s performance
for the period.
Reconciliations
between Total and Adjusted results, providing further information
on the key Adjusting items, are set out on pages 23, 24, 38 and
39.
GSK
provides earnings guidance to the investor community on the basis
of Adjusted 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 86% of the Total
earnings and 83% of the Adjusted earnings of ViiV Healthcare for
2021.
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 re-measurements are
reflected within other operating income/(expense) and within
Adjusting items in the income statement in each
period.
On 1
February 2022, ViiV Healthcare reached agreement with Gilead to
settle the global patent infringement litigation relating to the
commercialisation of Gilead’s Biktarvy. Under the terms of the global settlement and
licensing agreement, Gilead will make an upfront payment of
$1.25 billion to ViiV Healthcare which
is expected in the first quarter of 2022. In addition, Gilead will
also pay a 3% royalty on all future US sales of Biktarvy and in
respect of the bictegravir component of any other future
bictegravir-containing products sold in the US. These royalties
will be payable by Gilead to ViiV Healthcare from 1 February 2022
until the expiry of ViiV Healthcare's US Patent No. 8,129,385 on 5 October 2027. Gilead's
obligation to pay royalties does not extend into any period of
regulatory paediatric exclusivity, if awarded. The
settlement resulted in a re-measurement of the existing liabilities
for contingent consideration and the Pfizer put option at the 2021
year end. The upfront payment is a contingent asset at the balance
sheet date.
The
impact on the contingent consideration liability (CCL) is to
increase it by £288 million, on a post-tax basis in Q4 2021
due to the obligation ViiV Healthcare has to pay future cash
consideration to Shionogi for its share of the upfront and of the
future US sales performance of Biktarvy and products containing
bictegravir. Including the impact of the settlement at 31 December
2021, the liability which is discounted at 8% stood at £5,559
million, on a post-tax basis.
Pfizer has the right to require GSK to acquire its shareholding in
ViiV Healthcare in certain circumstances* at any time. A put option
liability is therefore recorded on the Group’s balance sheet
as a current liability. It is measured on the gross redemption
basis derived from an internal valuation of the ViiV Healthcare
business.
The impact of the settlement on the Pfizer put option liability is
an increase of £114 million and is included in the
re-measurement at 31 December 2021.
See
page 59 for an explanation of the post balance sheet event
impact.
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 2021 were £826
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 52 and 53 of the Annual Report
2020.
|
|
*
|
See
page 53 of GSK’s Annual Report 2020.
|
|
Financial performance – 2021
|
|
Total results
|
|
The
Total results for the Group are set out below.
|
|
|
2021
£m
|
|
2020
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
34,114
|
|
34,099
|
|
-
|
|
5
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
(11,603)
|
|
(11,704)
|
|
(1)
|
|
2
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
22,511
|
|
22,395
|
|
1
|
|
7
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administration
|
(10,975)
|
|
(11,456)
|
|
(4)
|
|
-
|
|
Research
and development
|
(5,278)
|
|
(5,098)
|
|
4
|
|
7
|
|
Royalty income
|
419
|
|
318
|
|
32
|
|
32
|
|
Other
operating (expense)/income
|
(476)
|
|
1,624
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
6,201
|
|
7,783
|
|
(20)
|
|
(9)
|
|
|
|
|
|
|
|
|
|
|
Finance
income
|
28
|
|
44
|
|
|
|
|
|
Finance
expense
|
(784)
|
|
(892)
|
|
|
|
|
|
Share
of after tax profits of associates
and
joint ventures
|
33
|
|
33
|
|
|
|
|
|
Loss on
disposal of interest in associates
|
(36)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
5,442
|
|
6,968
|
|
(22)
|
|
(10)
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
(346)
|
|
(580)
|
|
|
|
|
|
Tax rate %
|
6.4%
|
|
8.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation
|
5,096
|
|
6,388
|
|
(20)
|
|
(9)
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling
interests
|
711
|
|
639
|
|
|
|
|
|
Profit
attributable to shareholders
|
4,385
|
|
5,749
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,096
|
|
6,388
|
|
(20)
|
|
(9)
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
87.6p
|
|
115.5p
|
|
(24)
|
|
(13)
|
|
|
|
|
|
|
|
|
|
|
Adjusted results
|
|
The
Adjusted results for the Group are set out below. Reconciliations
between Total results and Adjusted results for 2021 and 2020 are
set out on pages 23 and 24.
|
|
|
2021
|
||||||
|
|
|
|
|
|
|
|
|
|
|
£m
|
|
%
of
turnover
|
|
Growth
£%
|
|
Reported
growth
CER%
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
34,114
|
|
100
|
|
-
|
|
5
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
(10,726)
|
|
31.4
|
|
5
|
|
8
|
|
Selling,
general and administration
|
(10,225)
|
|
30.0
|
|
(5)
|
|
(1)
|
|
Research
and development
|
(4,776)
|
|
14.0
|
|
4
|
|
8
|
|
Royalty
income
|
419
|
|
1.2
|
|
32
|
|
32
|
|
|
|
|
|
|
|
|
|
|
Adjusted
operating profit
|
8,806
|
|
25.8
|
|
(1)
|
|
9
|
|
|
|
|
|
|
|
|
|
|
Adjusted
profit before tax
|
8,086
|
|
|
|
-
|
|
11
|
|
Adjusted
profit after tax
|
6,671
|
|
|
|
(2)
|
|
9
|
|
Adjusted
profit attributable to shareholders
|
5,665
|
|
|
|
(2)
|
|
9
|
|
|
|
|
|
|
|
|
|
|
Adjusted
earnings per share
|
113.2p
|
|
|
|
(2)
|
|
9
|
|
|
|
|
|
|
|
|
|
|
Operating profit by business
|
2021
|
||||||
|
|
|
|
|
|
|
|
|
|
|
£m
|
|
%
of
turnover
|
|
Growth
£%
|
|
Reported
growth
CER%
|
|
|
|
|
|
|
|
|
|
|
Pharmaceuticals
|
8,170
|
|
46.1
|
|
6
|
|
15
|
|
Pharmaceuticals
R&D*
|
(3,489)
|
|
|
|
(1)
|
|
3
|
|
|
|
|
|
|
|
|
|
|
Total
Pharmaceuticals
|
4,681
|
|
26.4
|
|
12
|
|
24
|
|
Vaccines
|
2,256
|
|
33.3
|
|
(17)
|
|
(11)
|
|
Consumer
Healthcare
|
2,239
|
|
23.3
|
|
1
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
9,176
|
|
26.9
|
|
1
|
|
10
|
|
Corporate
& other unallocated costs
|
(370)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
operating profit
|
8,806
|
|
25.8
|
|
(1)
|
|
9
|
|
|
|
|
|
|
|
|
|
|
*
|
Operating
profit of Pharmaceuticals R&D segment, which is the
responsibility of the Chief Scientific Officer and President,
R&D. It excludes ViiV Healthcare R&D expenditure, which is
reported within the Pharmaceuticals segment.
|
|
Turnover
|
|
Pharmaceuticals turnover
|
|
|
2021
|
||||
|
|
|
|
|
|
|
|
|
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
Respiratory
|
2,863
|
|
21
|
|
28
|
|
HIV
|
4,777
|
|
(2)
|
|
3
|
|
Immuno-inflammation
|
885
|
|
22
|
|
29
|
|
Oncology
|
489
|
|
31
|
|
37
|
|
Pandemic
|
958
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
New and
Speciality
|
9,972
|
|
20
|
|
26
|
|
Established
Pharmaceuticals
|
7,757
|
|
(11)
|
|
(6)
|
|
|
|
|
|
|
|
|
|
17,729
|
|
4
|
|
10
|
|
|
|
|
|
|
|
|
US
|
8,442
|
|
13
|
|
21
|
|
Europe
|
3,934
|
|
(4)
|
|
(2)
|
|
International
|
5,353
|
|
(3)
|
|
4
|
|
|
|
|
|
|
|
|
|
17,729
|
|
4
|
|
10
|
|
|
|
|
|
|
|
|
Pharmaceuticals
turnover in the year was £17,729 million, up 4% AER, 10% CER.
Sales of Xevudy, the
monoclonal antibody treatment for COVID-19 of £958 million
contributed approximately 6 percentage points to Pharmaceuticals
growth.
HIV
sales were down 2% AER but up 3% CER, to £4,777 million, with
growth in Dovato and
Juluca partly offset by
Tivicay and Triumeq. Respiratory sales were up 21%
AER, 28% CER, to £2,863 million, on growth of Trelegy and Nucala. Oncology and
Immuno-Inflammation therapy areas each continued to show strong
double-digit sales growth. Sales of Established Pharmaceuticals
decreased 11% AER, 6% CER to £7,757 million.
In the
US, sales grew 13% AER, 21% CER including sales of Xevudy, which contributed approximately
9 percentage points to total growth. Continued strong performance
of Trelegy, Nucala, Benlysta and Dovato also drove growth of New and
Specialty products in the Region. Established Products were stable
at AER but grew 6% CER, reflecting strong demand for Established
Respiratory products in the COVID-19 environment and certain supply
challenges faced by generic competitor products, plus the benefit
of favourable prior period RAR adjustments.
In
Europe, sales decreased 4% AER, 2% CER, with decreases in the
Established Pharmaceuticals portfolio, impacted by generic
competition including Seretide,
Duodart and Volibris, lower antibiotic demand, and
the divestment of cephalosporin products at the start of the fourth
quarter. The decrease was partly offset by strong growth of
Trelegy, Benlysta and
Oncology products, and of Dovato which more than doubled in the
year. Sales of Xevudy
totalling £69 million also contributed approximately 2
percentage points to total growth.
International
sales decreased 3% AER but grew 4% CER. Decreases in Established
Pharmaceuticals reflected the impact of COVID-19 suppressed
antibiotics markets and increased generic competition in the first
half of the year. This was offset by strong growth in Respiratory,
Dovato, Tivicay tenders, and sales of
Xevudy, which added
approximately 6 percentage points to International total
growth.
Respiratory
Total
Respiratory sales were up 21% AER, 28% CER, with sales of
Trelegy and Nucala each exceeding £1 billion
per year for the first time. International Respiratory sales grew
33% AER, 42% CER including Nucala up 23% AER, 34% CER, and
Trelegy up 81% AER, 92% CER
including the impact of the Trelegy asthma launch in Japan in Q4
2020. In Europe, Respiratory grew 11% AER, 13% CER with double
digit CER growth of Trelegy
and Nucala. In the US,
Respiratory grew 23% AER, 30% CER, driven by continued strong
performance of Trelegy and
Nucala.
Sales
of Nucala were £1,142
million in the year and grew 15% AER, 22% CER, with consistent,
strong growth across all three regions. US sales were up 15% AER,
23% CER to £690 million and International sales of £195
million grew 23% AER, 34% CER. Europe sales of £257 million
grew 8% AER, 11% CER.
Trelegy sales were up 49% AER, 57% CER to £1,217
million driven by growth in all regions. In the US, sales continue
to grow strongly including benefit of the asthma indication
approved and launched in Q3 2020, with sales up 52% AER, 62% CER.
In Europe, sales grew 19% AER, 21% CER and in International, where
Trelegy asthma was approved
in Japan in Q4 2020, sales grew 81% AER, 92% CER to £163
million.
HIV
HIV
sales were £4,777 million a decrease of 2% AER but growth of
3% CER for the year. Triumeq sales were £1,882 million,
down 18% AER, 14% CER and Tivicay sales were £1,381 million,
down 10% AER, 4% CER. The mature portfolio resulted in less than 1
percentage point of CER sales decrease.
New HIV
products Juluca,
Dovato, Rukobia and Cabenuva delivered sales of £1,387
million representing 29% of the total HIV portfolio (18% in 2020).
Sales of the two drug regimens Juluca and Dovato were £517 million and
£787 million, respectively, with combined growth of 50% AER,
58% CER. Rukobia sales were
£45 million. Cabenuva,
the first long acting injectable, recorded £38 million of
sales for the full year.
In the
US, total sales were £2,898 million with a decrease of 4% AER,
but growth of 3% CER. New HIV products delivered sales of £896
million, including: Dovato
£428 million with growth of 87% AER, 99% CER, Juluca £393 million with growth of
2% AER, 8% CER, Rukobia
£43 million and Cabenuva £32 million. Combined
Tivicay and Triumeq sales were £1,953 million
declining 16% AER, 11% CER. In Europe, total sales were £1,194
million with a decrease of 2% AER, but growth of 1% CER. New HIV
products delivered sales of £420 million, including:
Dovato sales of £302
million, which more than doubled at AER and CER, and Juluca £111 million with growth of
14% AER, 18% CER. Combined Tivicay and Triumeq sales were £738 million
declining 21% AER, 19% CER. International continued to grow
strongly with total sales of £685 million, with growth of 4%
AER, 11% CER, driven by the Tivicay tender business and new HIV
products.
Immuno-inflammation
Immuno-inflammation
sales of £885 million grew 22% AER, 29% CER with Benlysta sales up 22% AER, 29% CER to
£874 million, benefitting from lupus nephritis launches in US
and Japan in H2 2020.
Oncology
Sales
of Zejula, the PARP
inhibitor treatment for ovarian cancer were £395 million, up
17% AER, 22% CER, impacted by ongoing lower diagnosis rates due to
the COVID-19 pandemic, particularly in the US. Sales included
£212 million in the US and £163 million in
Europe.
Blenrep for the treatment of patients with relapsed or
refractory multiple myeloma was approved and launched in the US and
Europe in Q3 2020, with ongoing launches throughout Europe in 2021.
Blenrep sales globally
totalled £89 million.
Pandemic
Sales
Sales
of Xevudy were £958
million in the year, reflecting the ongoing fulfilment of contracts
across the world and most significantly in the US, which reported
sales of £602 million. International recorded sales of
£287 million and Europe £69 million.
Established
Pharmaceuticals
Sales
of Established Pharmaceuticals in the year were £7,757
million, down 11% AER, 6% CER.
Established
Respiratory products decreased 7% AER, 2% CER to £4,327
million. This includes the impact of generic competition to
Xyzal in Japan, and to
Advair/Seretide globally.
The decrease was partially offset by approximately 6 percentage
points impact on growth of favourable prior period RAR
adjustments.
The
remainder of the Established Pharmaceuticals portfolio decreased by
16% AER, 11% CER to £3,430 million on lower demand for
antibiotics during the COVID-19 pandemic period, the divestment of
GSK’s cephalosporin products at the start of the fourth
quarter, and the impact of government mandated changes increasing
use of generics in markets including France, Japan and
China.
|
|
Vaccines turnover
|
|
|
2021
|
||||
|
|
|
|
|
|
|
|
|
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
Meningitis
|
961
|
|
(7)
|
|
(2)
|
|
Influenza
|
679
|
|
(7)
|
|
(2)
|
|
Shingles
|
1,721
|
|
(13)
|
|
(9)
|
|
Established
Vaccines
|
2,970
|
|
(8)
|
|
(4)
|
|
|
|
|
|
|
|
|
|
6,331
|
|
(9)
|
|
(5)
|
|
Pandemic
Vaccines
|
447
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
Total
Vaccines
|
6,778
|
|
(3)
|
|
2
|
|
|
|
|
|
|
|
|
US
|
3,472
|
|
(6)
|
|
-
|
|
Europe
|
1,436
|
|
-
|
|
2
|
|
International
|
1,870
|
|
1
|
|
5
|
|
|
|
|
|
|
|
|
|
6,778
|
|
(3)
|
|
2
|
|
|
|
|
|
|
|
|
Vaccines turnover in the year decreased 3% at AER, but grew 2% CER
to £6,778 million, primarily driven by pandemic adjuvant
sales, partially offset by lower demand for routine adult
vaccination due to COVID-19 vaccination programme deployment and
disease circulation across regions, resulting in lower
Shingrix
and Hepatitis
vaccines sales. Unfavourable US prior period RAR
adjustments reduced overall Vaccines growth by approximately 2
percentage points, particularly in Fluarix/Flulaval
and Shingrix where the impact on product growth was a decrease
of 7% and a decrease of 2% respectively.
Vaccines turnover excluding pandemic vaccines decreased 9% AER, 5%
CER to £6,331 million.
Meningitis
Meningitis sales decreased 7% AER, 2% CER to £961 million
driven primarily by unrepeated International tender volumes for
other Meningitis vaccines. Bexsero sales were stable at AER, but grew 5% CER to
£650 million, reflecting increased market share in the
US.
Menveo sales were up 3% AER, 9%
CER to £272 million, primarily driven by 2020 cohort catch-up
vaccinations and 2021 higher demand, as well as increased market
share in the US.
Influenza
Fluarix/FluLaval sales
decreased 7% AER, 2% CER, to £679 million as a result of
unfavourable prior period RAR movements in the US, partially offset
by higher volume in the US and strong southern hemisphere demand in
International.
Shingles
Shingrix decreased 13% AER, 9%
CER to £1,721 million, primarily driven by lower demand in the
US and International for routine adult vaccination due to COVID-19
vaccination programme deployment and disease circulation. In
Europe, sales growth was driven by Germany and launches in the UK,
Spain and Italy. Shingrix
was sold in 17 countries, including 9 markets launched during
2021.
Established
Vaccines
Hepatitis vaccines sales were down 20% AER, 16% CER to £460
million, adversely impacted by de-prioritisation of routine US
adult vaccination, increased Hepatitis B vaccine competition
and unfavourable CDC stockpile movements in the US,
and by COVID-19 related travel
restrictions in Europe and International.
Sales of DTPa-containing vaccines (Infanrix, Pediarix and
Boostrix) decreased 4% AER but
grew 1% CER. Infanrix/Pediarix
sales decreased 14% AER, 9% CER to
£543 million, reflecting lower tender volume in Europe and
International as well as a change in recommendation for the dosing
schedule in Germany, partly offset by increased demand in
the US. Boostrix sales grew 9% AER, 14% CER to £521 million,
largely driven by demand recovery and tender volumes in
International, as well as higher demand and share in the
US.
Rotarix sales were down 3% AER
but up 1% CER to £541 million, reflecting demand
recovery in
International.
Synflorix sales decreased by
11% AER, 8% CER to £357 million, primarily due to lower tender
demand in Emerging markets.
MMRV vaccines sales were stable at AER but grew 4% CER to £260
million, largely driven by higher demand in International.
Pandemic
Vaccines
Pandemic vaccines sales of £447 million included
£444 million of pandemic adjuvant sales to the US and Canadian
governments.
|
|
Consumer Healthcare turnover
|
|
|
|
|
2021
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
|
|
Oral
health
|
|
|
2,732
|
|
(1)
|
|
5
|
|
Pain
relief
|
|
|
2,276
|
|
3
|
|
7
|
|
Vitamins,
minerals and supplements
|
|
|
1,512
|
|
-
|
|
4
|
|
Respiratory
health
|
|
|
1,133
|
|
(6)
|
|
(1)
|
|
Digestive
health and other
|
|
|
1,803
|
|
(1)
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,456
|
|
(1)
|
|
4
|
|
Brands
divested/under review
|
|
|
151
|
|
(71)
|
|
(69)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,607
|
|
(4)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
3,179
|
|
(7)
|
|
(1)
|
|
Europe
|
|
|
2,468
|
|
(6)
|
|
(3)
|
|
International
|
|
|
3,960
|
|
(1)
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,607
|
|
(4)
|
|
-
|
|
Consumer Healthcare turnover in the year of £9,607 million
decreased 4% AER and was stable at CER reflecting dilution from
divestments given the completion of the portfolio rationalisation
at the end of Q1 2021. On a two-year CAGR sales excluding brands
divested under review grew 4% overall despite the adverse impact of
the COVID-19 pandemic.
Sales excluding brands divested/under review decreased 1% AER but
increased 4% CER reflecting the underlying strength of brands
across the portfolio and categories and continuing growth in
e-commerce. Overall, sales benefited from strong growth across all
categories excluding Respiratory health which was negatively
impacted in Q1 2021 by the historically low cold and flu season.
The decrease in cold and flu sales resulted in an approximately 1%
drag on full year growth.
International sales excluding brands divested/under review grew
high single digit on a CER basis with double digit growth in
emerging markets including India, China, the Middle East and
Africa. Excluding brands divested/under review, US sales grew low
single digits but European sales were stable on a CER basis. Both
regions were particularly negatively impacted by the historically
low cold and flu season during Q1 2021.
Oral
health
Oral health sales decreased 1% AER, but grew 5% CER to £2,732
million. Sensodyne delivered high single digit growth reflecting
underlying brand strength, continued innovation and strong growth
across key markets including the US, China, India and Japan. Gum
health also delivered broad based high single digit growth
across key markets. Denture care grew low single digits driven
partly by a return to growth in Q4 2021.
Pain
relief
Pain relief sales increased 3% AER, 7% CER to £2,276
million. Panadol, which benefitted from seasonal demand in the last
quarter, grew double digits. Voltaren grew mid-single digits, offsetting the expected
short-term decrease in the second half of the year in the US after
the introduction of private label competition earlier in
2021. Excedrin delivered growth of over 40% versus a prior year decrease reflecting supply
improvements.
Vitamins, minerals and
supplements
Vitamins,
minerals and supplements sales were stable at AER but grew 4% CER
to £1,512 million building on the significant (19% CER) growth
in 2020. Centrum grew
mid-teens percent driven by successful innovation, improved supply
capacity in the US and continued consumer focus on health and
wellness. Caltrate grew
mid-single digits and Emergen-C decreased high-single digits
reflecting a particularly challenging 2020 comparator due to
unprecedented demand during the early stages of the
pandemic.
Respiratory
health
Respiratory health sales decreased 6% AER, 1% CER to £1,133
million. In Q4 2021, cold and
flu sales rebounded strongly and were above 2019 levels in Europe
and slightly below 2019 levels in the US. For the full year, cold
and flu products were down mid-single digits as the H2 2021 rebound
was insufficient to offset the considerable decrease in the first
quarter of 2021 which resulted from historically low demand for
cold and flu products, effectively halving the global market in the
period. Allergy products grew mid-single
digits.
Digestive health and
other
Digestive health and other brands sales decreased 1% AER but grew
4% CER to £1,803 million. Digestive health brands were up
high-single digits with particularly strong growth in
Tums
and Eno. Skin health and Smoker’s health brands were
up mid-single digits, offset partly by a decrease in small,
non-strategic brands.
|
|
Operating performance
|
|
Cost of sales
Total
cost of sales as a percentage of turnover was 34.0%, 0.3 percentage
points lower at AER and 1.1 percentage points lower in CER terms
compared with 2020. This primarily reflected lower write-downs in a
number of manufacturing sites and the unwind in 2020 of the fair
market value uplift on inventory arising on completion of the
Consumer Healthcare Joint Venture with Pfizer.
Excluding
these and other Adjusting items, Adjusted cost of sales as a
percentage of turnover was 31.4%, 1.6 percentage points higher at
AER and 0.8 percentage points higher at CER compared with 2020.
This primarily reflected higher pandemic sales (Xevudy) as well as higher supply chain
costs in Vaccines resulting from lower demand and higher inventory
adjustments and higher commodity and freight costs in Consumer
Healthcare, partly offset by price benefits in Pharmaceuticals,
including the benefit from prior period RAR adjustments, a further
contribution from restructuring savings across all three businesses
and favourable mix in Vaccines.
Selling, general and administration
Total
SG&A costs as a percentage of turnover were 32.2%, 1.4
percentage points lower at AER and 1.8 percentage points lower at
CER compared with 2020. This included increased separation costs
partly offset by lower restructuring charges.
Excluding
Adjusting items, Adjusted SG&A costs as a percentage of
turnover were 30.0%, 1.5 percentage points lower at AER than in
2020 and 1.8 percentage points lower on a CER basis. Adjusted
SG&A costs decreased 5% AER, 1% CER which reflected the tight
control of ongoing costs and reduced variable spending across all
three businesses as a result of the COVID-19 lockdowns, and the
continuing benefit of restructuring in Pharmaceuticals, Consumer
Healthcare and support functions. The decrease also reflected a
favourable legal settlement in 2021 compared to increased legal
costs in 2020 as well as one-off benefits in pensions and insurance
which were partly offset by the one-off benefit from restructuring
of post-retirement benefits in 2020. This was partly offset by
increased investment behind launches in HIV and
Vaccines.
Research and development
Total
R&D expenditure was £5,278 million (15.5% of turnover), up
4% AER, 7% CER, including an increase in impairments partly offset
by a decrease in major restructuring charges. Adjusted R&D
expenditure was £4,776 million (14.0% of turnover), 4% higher
at AER, 8% higher at CER than in 2020.
Pharmaceuticals
R&D expenditure was £3,578 million (20.2% of turnover),
stable at AER, up 4% CER, primarily driven by increased investment
in our Specialty portfolios, including the early stage research
projects. Efficiency savings continued from the implementation of
the One R&D programme for Pharmaceuticals and Vaccines as part
of the Separation preparation restructuring programme.
The
growth of the Specialty portfolio in 2021 was primarily driven by
our two programmes for COVID-19 treatment (Xevudy and otilimab) along with the
other otilimab programme for rheumatoid arthritis, bepirovirsen,
our HBV antisense oligonucleotide and depemokimab, our anti-IL5 for
asthma. This has been partly offset by reduced spend on daprodustat
due to the completion of programmes. In Oncology, there is
continued investment reflecting our commitment to synthetic
lethality and in Blenrep, together with bintrafusp alfa,
where we have accelerated close-out costs for the programme but
this has been largely offset by a reduction in spend on feladilimab
following the decision to terminate the programme in
April.
R&D
expenditure in Vaccines was £887 million (13.1% of turnover),
up 29% AER, 34% CER, reflecting increased investment in clinical
programmes for meningitis and RSV and investment in our mRNA
platform, partly offset by efficiency savings from the
implementation of the One Development programme and variable
spending as a result of COVID-19 lockdowns. R&D expenditure in
Consumer Healthcare was £249 million.
Royalty income
Royalty
income was £419 million (2020: £318 million), up 32% AER,
32% CER, primarily driven by higher sales of Gardasil.
|
|
Other operating income/(expense)
Net
other operating expenses of £476 million (2020: £1,624
million income) primarily reflected accounting charges of
£1,101 million (2020: £1,234 million) arising from the
re-measurement of the contingent consideration liabilities related
to the acquisitions of the former Shionogi-ViiV Healthcare joint
venture and the former Novartis Vaccines business and the
liabilities for the Pfizer put option and Pfizer and Shionogi
preferential dividends in ViiV Healthcare. This included a
re-measurement charge of £1,026 million (2020: £1,114
million) for the contingent consideration liability due to
Shionogi, as a result of the unwinding of the discount for
£380 million and a charge for £646 million primarily from
adjustments to sales forecasts and the settlement with Gilead (see
page 11). This was partly offset by a number of asset disposals
including the disposal of royalty rights on cabozantinib, the
disposal of the cephalosporin business and disposal of a number of
Consumer Healthcare brands and fair value uplifts on investments.
2020 included the net profit on disposal of Horlicks and other
Consumer Healthcare brands of £2,815 million, partly offset by
the related loss on sale of the shares in Hindustan Unilever of
£476 million.
|
|
Operating profit
Total
operating profit was £6,201 million compared with £7,783
million in 2020. This primarily reflected an unfavourable
comparison to the net profit on disposal in Q2 2020 of Horlicks and
other Consumer brands and resultant sale of shares in Hindustan
Unilever. This was partly offset by lower major restructuring
costs, lower re-measurement charges on the contingent consideration
liabilities and the unwind in 2020 of the fair market value uplift
on inventory arising on completion of the Consumer Healthcare Joint
Venture with Pfizer.
Excluding
these and other Adjusting items, Adjusted operating profit was
£8,806 million, 1% lower than 2020 at AER, but 9% higher at
CER on a turnover increase of 5% CER. The Adjusted operating margin
of 25.8% was 0.3 percentage points lower at AER, 0.9 percentage
points higher on a CER basis than in 2020.
The increase in Adjusted operating profit primarily reflected the
benefit from incremental pandemic sales (Xevudy and adjuvant) contributing approximately 6% AER,
7% CER to Adjusted Operating profit growth. Adjusted Operating
profit also benefited from sales growth in
Pharmaceuticals including
the benefit from prior period RAR adjustments and tight control of
ongoing costs including reduced promotional and variable spending
across all three businesses as a result of the COVID-19 lockdowns,
favourable legal settlements compared to increased legal costs in
2020 and benefits from continued restructuring across the business.
This was partly offset by lower sales in Vaccines, primarily
Shingrix, higher supply chain costs in Vaccines and
Consumer Healthcare, divestments in Consumer Healthcare and
increased investment in R&D across Vaccines and
Pharmaceuticals.
Contingent
consideration cash payments which are made to Shionogi and other
companies reduce the balance sheet liability and hence are not
recorded in the income statement. Total contingent consideration
cash payments in 2021 amounted to £856 million (2020:
£885 million). This included cash payments made to Shionogi of
£826 million (2020: £858 million).
Adjusted operating profit by business
Pharmaceuticals
operating profit was £4,681 million, up 12% AER, 24% CER on a
turnover increase of 10% CER. The operating margin of 26.4% was 1.9
percentage points higher at AER than in 2020 and 3.3 percentage
points higher on a CER basis. This primarily reflected price
benefits in Pharmaceuticals, including the benefit from a prior
period RAR adjustment, reduced supply chain costs, the tight
control of ongoing costs, short term benefits to changes in ways of
working, a favourable legal settlement in 2021 compared to
increased legal costs in 2020 and the continuing benefit of
restructuring. This was partly offset by support to launches in HIV
and increased investment in R&D.
Vaccines
operating profit was £2,256 million, down 17% AER, 11% CER on
2% turnover increase at CER. The operating margin of 33.3% was 5.6
percentage points lower at AER than in 2020 and 4.8 percentage
points lower on a CER basis. This was primarily driven by higher
supply chain costs resulting from higher inventory adjustments and
lower demand, along with higher R&D spend to support key
strategic priorities and increased SG&A investment to support
business growth, partly offset by higher royalty income and
pandemic adjuvant beneficial mix.
Consumer
Healthcare operating profit was £2,239 million, up 1% AER, 9%
CER on stable turnover at CER. The operating margin of 23.3% was
1.2 percentage points higher at AER and 2.0 percentage points
higher on a CER basis than in 2020. This primarily reflected sales
growth of continuing brands, price increases and favourable mix,
synergy delivery from the Pfizer Joint Venture Integration and
tight cost control, partially offset by the impact of divestments
(1.2 percentage points), increased advertising and promotion
investment, increased commodity and freight costs and investment in
manufacturing sites.
Net finance costs
Total
net finance costs were £756 million compared with £848
million in 2020. Adjusted net finance costs were £753 million
compared with £844 million in 2020. The decrease is primarily
as a result of reduced interest expense from lower debt levels,
favourable movements in foreign exchange rates, a premium paid on
the early repayment and refinancing of bond debt in 2020 and
reduced interest on tax partly offset by lower interest income on
overseas cash post-closing of the divestment of Horlicks and other
Consumer Healthcare nutrition products in India and a number of
other countries.
Share of after tax profits of associates and joint
ventures
The
share of after tax profits of associates and joint ventures was
£33 million (2020: £33 million).
Loss on disposal of interests in associates
The net
loss on disposal of interests in associates was £36 million,
primarily driven by a loss on disposal of our interest in the
associate Innoviva Inc.
Taxation
The
charge of £346 million represented an effective tax rate on
Total results of 6.4% (2020: 8.3%) and reflected the different tax
effects of the various Adjusting items, including a credit of
£397 million resulting from the revaluation of deferred tax
assets following enactment of an increase in the headline rate of
UK corporation tax (effective 1 April 2023). 2020 reflected the
disposal of Horlicks and other Consumer brands and the subsequent
disposal of shares received in Hindustan Unilever. Tax on Adjusted
profit amounted to £1,415 million and represented an effective
Adjusted tax rate of 17.5% (2020: 16.0%).
Issues
related to taxation are described in Note 14,
‘Taxation’ in the Annual Report 2020. The Group
continues to believe it has made adequate provision for the
liabilities likely to arise from periods which are open and not yet
agreed by 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.
Non-controlling interests
The
allocation of Total earnings to non-controlling interests amounted
to £711 million (2020: £639 million). The increase was
primarily due to an increased allocation of Consumer Healthcare
Joint Venture profits of £461 million (2020: £374
million) and an increased allocation of ViiV Healthcare profits of
£197 million (2020: £223 million), including reduced
credits for re-measurement of contingent consideration
liabilities.
The
allocation of Adjusted earnings to non-controlling interests
amounted to £1,006 million (2020: £1,031 million). The
reduction in allocation primarily reflected a reduced allocation of
ViiV Healthcare profits of £438 million (2020: £474
million), partly offset by higher net profits in some of the
Group’s other entities with non-controlling interests. The
allocation of Consumer Healthcare Joint Venture profits was
£515 million (2020: £515 million).
Earnings per share
Total
EPS was 87.6p compared with 115.5p in 2020. This primarily
reflected an unfavourable comparison to the net profit on disposal
in Q2 2020 of Horlicks and other Consumer brands partly offset by
the related loss on sale of the shares in Hindustan Unilever,
partly offset by a credit of £397 million to Taxation in 2021
resulting from the revaluation of deferred tax assets following
enactment of an increase in the headline rate of UK corporation tax
(effective 1 April 2023), lower major restructuring costs and lower
re-measurement charges on the contingent consideration
liabilities.
Adjusted
EPS was 113.2p compared with 115.9p in 2020, down 2% AER but up 9%
CER, on a 9% CER increase in Adjusted operating profit primarily
reflecting incremental pandemic sales, sales increases in
Pharmaceuticals, tight cost control and favourable legal
settlements and lower interest costs, partly offset by lower sales
in Vaccines, primarily Shingrix, higher supply chain costs in
Vaccines, increased R&D investment and a higher effective tax
rate. The contribution to growth from COVID-19 solutions was
approximately 8% AER, 9% CER.
Currency impact on 2021 results
The
results for 2021 are based on average exchange rates, principally
£1/$1.38, £1/€1.16 and £1/Yen 151. Comparative
exchange rates are given on page 57. The period-end exchange rates
were £1/$1.35, £1/€1.19 and £1/Yen
155.
In
2021, turnover remained stable at AER, but was up 5% CER. Total EPS
was 87.6p compared with 115.5p in 2020. Adjusted EPS was 113.2p
compared with 115.9p in 2020, down 2% AER but up 9% CER. The
adverse currency impact primarily reflected the strengthening in
Sterling, particularly against the US Dollar as well as the
Japanese Yen and Euro. Exchange gains or losses on the settlement
of intercompany transactions had a negligible impact on the
negative currency impact of eleven percentage points on Adjusted
EPS.
|
|
Adjusting items
The
reconciliations between Total results and Adjusted results for 2021
and 2020 are set out below.
|
|
Year ended 31 December 2021
|
|
|
Total
results
£m
|
Intangible
amort-
isation
£m
|
Intangible
impair-
ment
£m
|
Major
restruct-
uring
£m
|
Trans-
action-
related
£m
|
Divest-
ments,
significant
legal and
other items
£m
|
Separation
costs
£m
|
Adjusted
results
£m
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
Turnover
|
34,114
|
|
|
|
|
|
|
34,114
|
|
Cost of sales
|
(11,603)
|
701
|
(33)
|
154
|
28
|
27
|
|
(10,726)
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
Gross profit
|
22,511
|
701
|
(33)
|
154
|
28
|
27
|
|
23,388
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administration
|
(10,975)
|
|
|
426
|
25
|
17
|
282
|
(10,225)
|
|
Research and
development
|
(5,278)
|
101
|
355
|
46
|
|
|
|
(4,776)
|
|
Royalty income
|
419
|
|
|
|
|
|
|
419
|
|
Other operating
income/(expense)
|
(476)
|
|
|
|
1,106
|
(662)
|
32
|
-
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
Operating profit
|
6,201
|
802
|
322
|
626
|
1,159
|
(618)
|
314
|
8,806
|
|
|
|
|
|
|
|
|
|
|
|
Net finance costs
|
(756)
|
|
|
2
|
|
1
|
|
(753)
|
|
Loss on disposal of interest in associates
|
(36)
|
|
|
|
|
36
|
|
-
|
|
Share of after tax profits
of associates and joint
ventures
|
33
|
|
|
|
|
|
|
33
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
Profit before taxation
|
5,442
|
802
|
322
|
628
|
1,159
|
(581)
|
314
|
8,086
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
(346)
|
(159)
|
(81)
|
(114)
|
(196)
|
(470)
|
(49)
|
(1,415)
|
|
Tax rate %
|
6.4%
|
|
|
|
|
|
|
17.5%
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
Profit after taxation
|
5,096
|
643
|
241
|
514
|
963
|
(1,051)
|
265
|
6,671
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
Profit
attributable to
non-controlling
interests
|
711
|
|
|
|
295
|
|
|
1,006
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to
shareholders
|
4,385
|
643
|
241
|
514
|
668
|
(1,051)
|
265
|
5,665
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
87.6p
|
12.9p
|
4.8p
|
10.3p
|
13.3p
|
(21.0)p
|
5.3p
|
113.2p
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares
(millions)
|
5,003
|
|
|
|
|
|
|
5,003
|
|
|
––––––––––––
|
|
|
|
|
|
|
––––––––––––
|
|
Year ended 31 December 2020
|
|
|
Total
results
£m
|
Intangible
amort-
isation
£m
|
Intangible
impair-
ment
£m
|
Major
restruct-
uring
£m
|
Trans-
action-
related
£m
|
Divest-
ments,
significant
legal and
other items
£m
|
Separation
costs
£m
|
Adjusted
results
£m
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
Turnover
|
34,099
|
|
|
|
|
|
|
34,099
|
|
Cost of sales
|
(11,704)
|
699
|
31
|
667
|
116
|
|
|
(10,191)
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
Gross profit
|
22,395
|
699
|
31
|
667
|
116
|
|
|
23,908
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administration
|
(11,456)
|
1
|
18
|
659
|
(23)
|
16
|
68
|
(10,717)
|
|
Research and
development
|
(5,098)
|
75
|
214
|
206
|
|
|
|
(4,603)
|
|
Royalty income
|
318
|
|
|
|
|
|
|
318
|
|
Other operating
income/(expense)
|
1,624
|
|
|
|
1,215
|
(2,839)
|
|
-
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
Operating profit
|
7,783
|
775
|
263
|
1,532
|
1,308
|
(2,823)
|
68
|
8,906
|
|
|
|
|
|
|
|
|
|
|
|
Net finance costs
|
(848)
|
|
|
2
|
|
2
|
|
(844)
|
|
Share of after tax profits
of associates and joint
ventures
|
33
|
|
|
|
|
|
|
33
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
Profit before taxation
|
6,968
|
775
|
263
|
1,534
|
1,308
|
(2,821)
|
68
|
8,095
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
(580)
|
(150)
|
(47)
|
(292)
|
(229)
|
17
|
(14)
|
(1,295)
|
|
Tax rate %
|
8.3%
|
|
|
|
|
|
|
16.0%
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
Profit after taxation
|
6,388
|
625
|
216
|
1,242
|
1,079
|
(2,804)
|
54
|
6,800
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
Profit
attributable to
non-controlling
interests
|
639
|
|
|
|
392
|
|
|
1,031
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to
shareholders
|
5,749
|
625
|
216
|
1,242
|
687
|
(2,804)
|
54
|
5,769
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
115.5p
|
12.6p
|
4.4p
|
25.0p
|
13.8p
|
(56.5)p
|
1.1p
|
115.9p
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares
(millions)
|
4,976
|
|
|
|
|
|
|
4,976
|
|
|
––––––––––––
|
|
|
|
|
|
|
––––––––––––
|
|
Major restructuring and integration
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.
|
|
Total
Major restructuring charges incurred in 2021 were £626 million
(2020: £1,532 million), analysed as follows:
|
|
|
2021
|
|
2020
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
£m
|
|
Non-cash
£m
|
|
Total
£m
|
|
Cash
£m
|
|
Non-cash
£m
|
|
Total
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018
major restructuring
programme
(incl. Tesaro)
|
18
|
|
9
|
|
27
|
|
105
|
|
210
|
|
315
|
|
Consumer
Healthcare Joint
Venture
integration
programme
|
173
|
|
11
|
|
184
|
|
298
|
|
28
|
|
326
|
|
Separation
Preparation
restructuring
programme
|
371
|
|
59
|
|
430
|
|
625
|
|
216
|
|
841
|
|
Combined
restructuring and
integration
programme
|
8
|
|
(23)
|
|
(15)
|
|
39
|
|
11
|
|
50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
570
|
|
56
|
|
626
|
|
1,067
|
|
465
|
|
1,532
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
charges of £371 million under the Separation Preparation
programme primarily arose from restructuring of some administrative
and central manufacturing functions as well as commercial
pharmaceuticals and R&D functions. The non-cash charges of
£59 million primarily reflected write-down of assets in
administrative locations and R&D sites.
Cash
charges of £173 million on the Consumer Healthcare Joint
Venture programme primarily related to severance and integration
costs. The non-cash credit in the Combined restructuring and
integration programme primarily reflected a write back on disposal
of a site.
Total
cash payments made in 2021 were £753 million (2020: £737
million), £434 million (2020: £152 million)
relating to the Separation Preparation restructuring programme, a
further £176 million (2020: £291 million) relating to the
Consumer Healthcare Joint Venture integration programme, £95
million (2020: £179 million) under the 2018 major
restructuring programme including the settlement of certain charges
accrued in previous quarters and £48 million (2020: £115
million) for the existing Combined restructuring and integration
programme.
|
|
|
2021
£m
|
|
2020
£m
|
|
|
|
|
|
|
Pharmaceuticals
|
233
|
|
671
|
|
Vaccines
|
(40)
|
|
214
|
|
Consumer
Healthcare
|
196
|
|
374
|
|
|
|
|
|
|
|
389
|
|
1,259
|
|
Corporate
& central functions
|
237
|
|
273
|
|
|
|
|
|
|
Total
Major restructuring costs
|
626
|
|
1,532
|
|
|
|
|
|
|
The
analysis of Major restructuring charges by Income statement line
was as follows:
|
|
|
2021
£m
|
|
2020
£m
|
|
|
|
|
|
|
Cost of
sales
|
154
|
|
667
|
|
Selling,
general and administration
|
426
|
|
659
|
|
Research
and development
|
46
|
|
206
|
|
Other
operating income/(expense)
|
-
|
|
-
|
|
|
|
|
|
|
Total
Major restructuring costs
|
626
|
|
1,532
|
|
|
|
|
|
|
The
benefit in the year from restructuring programmes was £0.7
billion, the benefit from the Separation Preparation restructuring
programme was £0.3 billion, the benefit from the Consumer
Healthcare Joint Venture integration was £0.2 billion and the
benefit from the 2018 Restructuring programme was £0.2
billion.
The
2018 major restructuring programme, including Tesaro, has cost
£1.5 billion to the end of 2021, with cash costs of £0.6
billion and non-cash costs of £0.9 billion, and has delivered
annual savings of around £0.5 billion by the end of 2021 (at
2019 rates). These savings were fully re-invested to help fund
targeted increases in R&D and commercial support of new
products. The programme is substantially complete and therefore GSK
will cease external reporting of total costs and benefits of the
2018 major restructuring programme from 2022 onwards.
The
completion of the Consumer Healthcare Joint Venture with Pfizer has
realised substantial cost synergies and has largely delivered the
expected total annual cost savings of £0.5 billion by 2021.
The cash costs are expected to be £0.7 billion and non-cash
charges expected to be £0.1 billion, plus additional capital
expenditure of £0.2 billion. Up to 25% of the cost savings are
intended to be reinvested in the business to support innovation and
other growth opportunities.
The
Group initiated in Q1 2020 a two-year Separation Preparation
programme to prepare for the separation of GSK into two companies:
new GSK, a biopharma company with an R&D approach focused on
science related to the immune system, the use of genetics and new
technologies, and a new leader in Consumer Healthcare. The
programme aims to:
|
|
●
|
Drive a
common approach to R&D with improved capital
allocation
|
|
●
|
Align
and improve the capabilities and efficiency of global support
functions to support new GSK
|
|
●
|
Further
optimise the supply chain and product portfolio, including the
divestment of non-core assets. A strategic review of prescription
dermatology is underway
|
|
●
|
Prepare
Consumer Healthcare to operate as a standalone company
|
|
The
programme continues to target delivery of £0.8 billion of
annual savings by 2022 and £1.0 billion by 2023, with total
costs estimated at £2.4 billion, of which £1.6 billion is
expected to be cash costs. The proceeds of divestments have largely
covered the cash costs of the programme.
|
|
Transaction-related adjustments
Transaction-related
adjustments resulted in a net charge of £1,159 million (2020:
£1,308 million). This included a net £1,101 million
accounting charge for the re-measurement of the contingent
consideration liabilities related to the acquisitions of the former
Shionogi-ViiV Healthcare joint venture and the former Novartis
Vaccines business and the liabilities for the Pfizer put option and
Pfizer and Shionogi preferential dividends in ViiV
Healthcare.
|
|
Charge/(credit)
|
2021
£m
|
|
2020
£m
|
|
|
|
|
|
|
Contingent
consideration on former Shionogi-ViiV Healthcare joint
venture
(including
Shionogi preferential dividends)
|
1,026
|
|
1,114
|
|
ViiV
Healthcare put options and Pfizer preferential
dividends
|
48
|
|
(52)
|
|
Contingent
consideration on former Novartis Vaccines business
|
27
|
|
172
|
|
Release
of fair value uplift on acquired Pfizer inventory
|
-
|
|
91
|
|
Other
adjustments
|
58
|
|
(17)
|
|
|
|
|
|
|
Total
transaction-related charges
|
1,159
|
|
1,308
|
|
|
|
|
|
|
The £1,026 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, as a result of the unwind of the
discount for £380 million and a charge of £646 million
primarily from adjustments to sales forecasts and the settlement
with Gilead as well as updated exchange rate assumptions. The
£48 million charge relating to the ViiV Healthcare put option
and Pfizer preferential dividends represented an increase in the
valuation of the put option as a result of the settlement with
Gilead, offset by lower cash and updated exchange rate
assumptions.
The
ViiV Healthcare contingent consideration liability is fair valued
under IFRS. The potential impact of the COVID-19 pandemic remains
uncertain and at 31 December 2021, it has been assumed that there
will be no significant impact on the long-term value of the
liability. This position remains under review and the amount of the
liability will be updated in future quarters as further information
on the impact of the pandemic becomes available. An explanation of
the accounting for the non-controlling interests in ViiV Healthcare
is set out on page 11.
Divestments, significant legal charges and other items
Divestments
and other items also included gains from a number of asset
disposals, including the disposal of royalty rights on
cabozantinib, disposal of the cephalosporins business and disposal
of a number of Consumer Healthcare brands, fair value gains on
investments and certain other Adjusting items, including the impact
of the enactment of the increase in the headline rate of UK
Corporate tax as discussed on page 11. The Consumer Healthcare
brands disposal programme is complete and has delivered net
proceeds of £1.1 billion. In 2021 the net loss on disposal of
interests in associates was £36 million, primarily driven by a
loss on disposal of the interest in the associate Innoviva Inc. A
charge of £26 million (2020: £7 million) was recorded for
significant legal matters arising in the period. Significant legal
cash payments were £5 million (2020: £9 million).
Included within Divestments, significant legal and other items, is
a deferred tax credit of £157 million arising on the transfer
of intellectual property within the group during the quarter. This
deferred tax credit arises due to differences between group value
and the market value of the assets transferred.
Separation costs
From Q2
2020, the Group started to report additional costs to prepare for
establishment of the Consumer Healthcare business as an independent
entity (“Separation costs”). Total Separation costs
incurred in 2021 were £314 million (2020: £68 million).
This includes £38 million relating to transaction costs
including preparatory admission costs (costs relating to achieve a
listing).
Total separation costs are estimated to be £600-700 million,
excluding transaction costs.
|
|
Financial performance – Q4 2021
|
|
Total results
|
|
The
Total results for the Group are set out below.
|
|
|
Q4 2021
£m
|
|
Q4
2020
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
9,527
|
|
8,739
|
|
9
|
|
13
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
(3,680)
|
|
(3,171)
|
|
16
|
|
19
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
5,847
|
|
5,568
|
|
5
|
|
10
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administration
|
(3,260)
|
|
(3,162)
|
|
3
|
|
6
|
|
Research
and development
|
(1,448)
|
|
(1,470)
|
|
(2)
|
|
1
|
|
Royalty income
|
135
|
|
91
|
|
48
|
|
46
|
|
Other
operating (expenses)/income
|
(379)
|
|
34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
895
|
|
1,061
|
|
(16)
|
|
1
|
|
|
|
|
|
|
|
|
|
|
Finance
income
|
4
|
|
5
|
|
|
|
|
|
Finance
expense
|
(191)
|
|
(239)
|
|
|
|
|
|
Share
of after tax losses of
associates
and joint ventures
|
(2)
|
|
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
706
|
|
821
|
|
(14)
|
|
8
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
224
|
|
18
|
|
|
|
|
|
Tax rate %
|
(31.7)%
|
|
(2.2)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation
|
930
|
|
839
|
|
11
|
|
30
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling
interests
|
181
|
|
162
|
|
|
|
|
|
Profit
attributable to shareholders
|
749
|
|
677
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
930
|
|
839
|
|
11
|
|
30
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
15.0p
|
|
13.6p
|
|
10
|
|
31
|
|
|
|
|
|
|
|
|
|
|
Adjusted results
The
Adjusted results for the Group are set out below. Reconciliations
between Total results and Adjusted results for Q4 2021 and Q4 2020
are set out on pages 38 and 39.
|
|
|
Q4 2021
|
||||||
|
|
|
|
|
|
|
|
|
|
|
£m
|
|
%
of
turnover
|
|
Growth
£%
|
|
Reported
growth
CER%
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
9,527
|
|
100
|
|
9
|
|
13
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
(3,496)
|
|
36.7
|
|
25
|
|
28
|
|
Selling,
general and administration
|
(2,908)
|
|
30.5
|
|
(1)
|
|
2
|
|
Research
and development
|
(1,365)
|
|
14.3
|
|
5
|
|
7
|
|
Royalty
income
|
135
|
|
1.4
|
|
48
|
|
46
|
|
|
|
|
|
|
|
|
|
|
Adjusted
operating profit
|
1,893
|
|
19.9
|
|
4
|
|
15
|
|
|
|
|
|
|
|
|
|
|
Adjusted
profit before tax
|
1,705
|
|
|
|
8
|
|
20
|
|
Adjusted
profit after tax
|
1,528
|
|
|
|
13
|
|
25
|
|
Adjusted
profit attributable to shareholders
|
1,280
|
|
|
|
10
|
|
23
|
|
|
|
|
|
|
|
|
|
|
Adjusted
earnings per share
|
25.6p
|
|
|
|
9
|
|
22
|
|
|
|
|
|
|
|
|
|
|
Operating profit by business
|
Q4 2021
|
||||||
|
|
|
|
|
|
|
|
|
|
|
£m
|
|
%
of
turnover
|
|
Growth
£%
|
|
Reported
growth
CER%
|
|
|
|
|
|
|
|
|
|
|
Pharmaceuticals
|
2,035
|
|
39.0
|
|
9
|
|
17
|
|
Pharmaceuticals
R&D*
|
(1,007)
|
|
|
|
(2)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Total
Pharmaceuticals
|
1,028
|
|
19.7
|
|
21
|
|
37
|
|
Vaccines
|
403
|
|
22.3
|
|
(42)
|
|
(43)
|
|
Consumer
Healthcare
|
558
|
|
22.3
|
|
45
|
|
56
|
|
|
|
|
|
|
|
|
|
|
|
1,989
|
|
20.9
|
|
3
|
|
12
|
|
Corporate
& other unallocated costs
|
(96)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
operating profit
|
1,893
|
|
19.9
|
|
4
|
|
15
|
|
|
|
|
|
|
|
|
|
|
*
|
Operating
profit of Pharmaceuticals R&D segment, which is the
responsibility of the Chief Scientific Officer and President,
R&D. It excludes ViiV Healthcare R&D expenditure, which is
reported within the Pharmaceuticals segment.
|
|
Turnover
|
|
Pharmaceuticals turnover
|
|
|
Q4 2021
|
||||
|
|
|
|
|
|
|
|
|
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
Respiratory
|
786
|
|
15
|
|
20
|
|
HIV
|
1,260
|
|
(1)
|
|
3
|
|
Immuno-inflammation
|
247
|
|
20
|
|
23
|
|
Oncology
|
132
|
|
15
|
|
18
|
|
Pandemic
|
828
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
New and
Specialty
|
3,253
|
|
43
|
|
49
|
|
Established
Pharmaceuticals
|
1,968
|
|
(6)
|
|
(2)
|
|
|
|
|
|
|
|
|
|
5,221
|
|
20
|
|
25
|
|
|
|
|
|
|
|
|
US
|
2,675
|
|
36
|
|
40
|
|
Europe
|
1,068
|
|
1
|
|
6
|
|
International
|
1,478
|
|
11
|
|
17
|
|
|
|
|
|
|
|
|
|
5,221
|
|
20
|
|
25
|
|
|
|
|
|
|
|
|
Pharmaceuticals
turnover in the quarter was £5,221 million, up 20% AER, 25%
CER, driven by strong growth in New and Specialty products, partly
offset by a decrease in the Established Products portfolio. Sales
of Xevudy of £828
million contributed approximately 20 percentage points to total
Pharmaceuticals growth in the quarter.
New and
Specialty sales of £3,253 million grew 43% AER, 49% CER, with
ongoing growth from Respiratory, up 15% AER, 20% CER, to £786
million. Oncology and Immuno-Inflammation therapy areas continued
to show double digit sales growth, while HIV sales were down 1% AER but up 3%
CER. Excluding the impact of Xevudy sales, New and Specialty
products grew 7% AER and 10% CER.
Sales
of Established Pharmaceuticals decreased 6% AER, 2% CER to
£1,968 million, including the impact of the divestment of
GSK’s cephalosporin products effective from the start of the
quarter, plus the benefit of a favourable prior period RAR
adjustment.
In the
US, sales grew 36% AER, 40% CER including an order for Xevudy delivered in the quarter,
contributing approximately 30 percentage points to total growth.
Continued strong performance of Trelegy, Benlysta and Dovato drove growth of New and
Specialty products in the Region. Established Products grew 6% AER,
8% CER, with the impact of generic competition partly offset by
strong demand for Established Respiratory products in the COVID-19
environment, and a favourable prior period RAR
adjustment.
In
Europe, sales grew 1% AER, 6% CER, with double digit growth of
Trelegy, Nucala, Benlysta
and Zejula. Dovato sales
grew 66% AER, 75% CER in the quarter. Sales of Xevudy contributed approximately 6
percentage points to total growth. The Established Pharmaceuticals
portfolio decreased 14% AER, 10% CER, impacted by generic
competition including Seretide,
Duodart and Volibris and the divestment of cephalosporin
products.
International
sales grew 11% AER, 17% CER, including £174 million sales of
Xevudy, which contributed
approximately 13 percentage points to total growth. Continued
underlying growth of New and Specialty products was driven by
Respiratory, HIV, Oncology and Benlysta. Established Pharmaceuticals
decreased 8% AER, 2% CER, with Established Respiratory down 11%
AER, 6% CER on Seretide
decline.
Respiratory
Total
Respiratory sales of £786 million were up 15% AER, 20% CER,
with growth from Trelegy
and Nucala in all regions.
International Respiratory sales grew 31% AER, 42% CER including
Nucala, up 22% AER, 36%
CER, and Trelegy up 72%
AER, 86% CER. In Europe, Respiratory grew 7% AER, 11% CER with
double digit CER growth of Trelegy and Nucala. In the US, Respiratory grew 15%
AER, 17% CER, driven by Trelegy up 54% AER, 58% CER in the
quarter.
Sales
of Nucala were £311
million in the quarter and grew 7% AER, 11% CER, with consistent,
strong growth across all three regions. US sales were up 3% AER, 5%
CER to £189 million including the impact of the nasal polyps
indication launch in the previous quarter. International sales of
£55 million grew 22% AER, 36% CER including strong growth of
at home application in Japan. Europe sales of £67 million grew
6% AER, 11% CER.
Trelegy sales were up 48% AER, 53% CER to £352 million.
In the US, sales growth of 54% AER, 58% CER includes the asthma
indication approved and launched in Q3 2020. In Europe, sales grew
13% AER, 17% CER and in International, where Trelegy asthma was approved in Japan in
Q4 2020, sales grew 72% AER, 86% CER to £50
million.
HIV
HIV
sales were £1,260 million with a decrease of 1% AER but growth
of 3% CER in the quarter. CER growth was driven by new products
Dovato, Cabenuva, Rukobia and Juluca.
Triumeq sales were £476 million, down 18% AER, 15% CER
and Tivicay sales were
£321 million, down 12% AER, 10% CER. New HIV products
Juluca, Dovato, Rukobia and Cabenuva delivered sales of £432
million representing 34% of the total HIV portfolio (23% in 2020).
Sales of the two drug regimens Juluca and Dovato were £143 million and
£254 million respectively with combined growth of 42% AER, 47%
CER. Rukobia sales were
£15 million. Cabenuva,
the first long acting injectable, recorded quarterly sales of
£20 million.
In the
US, total sales of £803 million were stable at AER, but grew
2% CER. New HIV products delivered sales of £283 million,
including: Dovato £142
million with growth of 80% AER, 85% CER, Juluca £110 million with growth of
2% AER, 5% CER, Rukobia
£14 million and Cabenuva £17 million. Combined
Tivicay and Triumeq sales were £508 million
declining 15% AER, 13% CER. In Europe, total sales were £318
million with 3% decrease AER, but up 2% CER. New HIV products
delivered sales of £126 million, including: Dovato £93 million with growth of
66% AER, 75% CER and Juluca
£30 million with growth of 7% AER, 11% CER. Combined
Tivicay and Triumeq sales were £181 million a
decrease of 22% AER, 18% CER.
Immuno-inflammation
Immuno-inflammation
sales of £247 million grew 20% AER, 23% CER with Benlysta sales up 19% AER, 22% CER to
£244 million in the quarter, benefitting from lupus nephritis
launches in US and Japan in H2 2020.
Oncology
Sales
of Zejula, the PARP
inhibitor treatment for ovarian cancer were £108 million in
the quarter, up 21% AER, 24% CER impacted by ongoing lower
diagnosis rates due to the COVID-19 pandemic, particularly in the
US. Sales included £51 million in the US and £45 million
in Europe.
Blenrep for the treatment of patients with relapsed or
refractory multiple myeloma was approved and launched in the US and
Europe in Q3 2020 and reported sales of £22 million in the
quarter.
Pandemic
Sales
Sales
of Xevudy were £828
million in the quarter, up from £114 million in the third
quarter. This reflected the ongoing fulfilment of contracts across
the world and most significantly the US, which reported sales of
£586 million.
Established
Pharmaceuticals
Sales
of Established Pharmaceuticals in the quarter were £1,968
million, down 6% AER, 2% CER.
Established
Respiratory products decreased 2% AER but grew 2% CER to
£1,075 million, including the benefit of a prior period
adjustment in the quarter. This product category continues to
experience generic competition to products including Advair/Seretide and Ventolin, but with some flattening of
the generic decline including Xyzal in Japan.
The
remainder of the Established Pharmaceuticals portfolio decreased by
11% AER, 6% CER to £893 million with ongoing generic impacts
on products including Volibris in Europe and Lamictal in the US, and approximately 2
percentage points impact from the divestment of GSK’s
cephalosporin products at the start of the quarter.
|
|
Vaccines turnover
|
|
|
Q4 2021
|
||||
|
|
|
|
|
|
|
|
|
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
Meningitis
|
194
|
|
(29)
|
|
(27)
|
|
Influenza
|
244
|
|
(3)
|
|
-
|
|
Shingles
|
597
|
|
(7)
|
|
(4)
|
|
Established
Vaccines
|
682
|
|
(19)
|
|
(16)
|
|
|
|
|
|
|
|
|
|
1,717
|
|
(15)
|
|
(12)
|
|
Pandemic
Vaccines
|
92
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
Total
Vaccines
|
1,809
|
|
(10)
|
|
(7)
|
|
|
|
|
|
|
|
|
US
|
849
|
|
(22)
|
|
(20)
|
|
Europe
|
452
|
|
7
|
|
12
|
|
International
|
508
|
|
1
|
|
6
|
|
|
|
|
|
|
|
|
|
1,809
|
|
(10)
|
|
(7)
|
|
|
|
|
|
|
|
|
Vaccines turnover in the quarter decreased 10% AER, 7% CER to
£1,809 million, primarily driven by lower Meningitis vaccines
sales associated with the return to a normal US back-to-school
season, lower DTPa-containing vaccines sales due to
unfavourable CDC purchasing patterns in the US and lower Shingrix sales resulting from the negative impact of
COVID-19 vaccination programme deployment and disease circulation,
partly offset by pandemic adjuvant sales.
Vaccines turnover excluding pandemic vaccines decreased 15% AER,
12% CER to £1,717 million.
Meningitis
Meningitis sales were down by 29% AER, 27% CER to £194
million. Bexsero sales decreased 20% AER, 17% CER to £127
million and Menveo
sales decreased 42%
AER, 42% CER to £48 million
primarily driven by the return to a normal US back-to-school
vaccination season focused in Q3 2021 compared with an elongated
pattern in 2020 when COVID-19 related transition to virtual
schooling spread demand into Q4 2021. Menveo sales also reflect lower demand in
International.
Influenza
Fluarix/FluLaval sales were
down 3% AER, stable at CER to £244 million as a result of
higher expected US returns associated with less influenza disease
circulation and vaccination resulting from COVID-19 mitigations,
offset by late season sales and increased supply in
Europe.
Shingles
Shingrix decreased 7% AER, 4% CER to £597 million
driven by lower demand resulting from de-prioritisation related to
COVID-19 vaccination and containment measures in the US and
International, partially offset by demand recovery post COVID-19
mass vaccination in Germany and new launches in Europe. Favourable
US prior period RAR movements reduced the Shingrix decrease by approximately 2
percentage points.
Established
Vaccines
Established vaccines decreased 19% AER, 16% CER driven primarily by
lower US sales of Infanrix/Pediarix,
Hepatitis vaccines, Boostrix and Rotarix.
Sales of DTPa-containing vaccines (Infanrix/Pediarix and Boostrix) were down 23% AER, 21% CER. Infanrix/Pediarix
sales decreased 33% AER, 31% CER to
£115 million, reflecting lower CDC purchasing patterns
in the US, lower tender volume and a change in recommendation for the German dosing
schedule in Europe. Boostrix sales decreased 9% AER, 6% CER to £114
million driven by de-prioritisation of routine adult vaccination
and lower CDC purchasing patterns in the US, partially offset by
higher tender volume in International.
Hepatitis vaccines sales were down 19% AER, 17% CER to £113
million, largely driven by de-prioritisation of US routine adult
vaccination together with increased Hepatitis B vaccine competition
in the US.
Rotarix sales were down
4% AER but grew 1% CER reflecting higher tender volume in International,
partially offset by unfavourable CDC purchasing patterns in the
US.
Synflorix sales decreased 1%
AER but grew 4% CER to £92 million, primarily due to higher
demand in International and Europe, partially offset by lower
demand in Emerging Markets.
MMRV vaccines sales decreased 31% AER, 26% CER to £54 million,
driven by supply constraints and lower demand in
International.
Pandemic
Vaccines
£92 million of pandemic adjuvant sales was recorded primarily
reflecting contracted volumes to the Canadian
government.
|
|
Consumer Healthcare turnover
|
|
|
|
|
Q4 2021
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
|
|
Oral
health
|
|
|
672
|
|
(1)
|
|
4
|
|
Pain
relief
|
|
|
580
|
|
7
|
|
11
|
|
Vitamins,
minerals and supplements
|
|
|
398
|
|
3
|
|
6
|
|
Respiratory
health
|
|
|
352
|
|
34
|
|
40
|
|
Digestive
health and other
|
|
|
463
|
|
8
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,465
|
|
7
|
|
11
|
|
Brands
divested/under review
|
|
|
32
|
|
(48)
|
|
(44)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,497
|
|
6
|
|
10
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
902
|
|
9
|
|
12
|
|
Europe
|
|
|
612
|
|
(1)
|
|
4
|
|
International
|
|
|
983
|
|
7
|
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,497
|
|
6
|
|
10
|
|
|
|
|
|
|
|
|
|
|
Consumer Healthcare sales increased 6% AER,10% CER to £2,497
million in the quarter.
Sales excluding brands divested/under review increased 7% AER, 11%
CER with strong growth across the whole portfolio but particularly
Respiratory health which rebounded from the historically low cold
and flu season in both Q4 2020 and Q1 2021.
International sales grew double digits on a CER basis with double
digit growth in emerging markets such as China and the Middle East
and Africa. European growth was driven by a particularly strong
rebound of cold and flu product sales ahead of pre-pandemic levels
in 2019. US growth was strong across all categories helped by
further improved capacity in Pain relief and Vitamins, minerals and
supplements allowing retailer restocking and a particularly strong
rebound of Respiratory health with cold and flu purchases slightly
behind 2019 levels.
Oral
health
Oral health sales decreased 1% AER but grew 4% CER to £672
million. Sensodyne delivered mid-single digit growth reflecting
underlying brand strength, with the US growing mid-single digits
despite the advance purchasing in Q3 2021 ahead of price increases.
Gum health continued to deliver high-single digit growth. Denture
care grew mid-single digits.
Pain
relief
Pain relief sales increased 7% AER, 11% CER to £580
million. Advil and Panadol delivered high-teens percent growth;
Advil
benefitting from improved capacity in
the US allowing retailer restocking, Panadol benefitting from seasonal demand and both helped
by a favourable Q4 2020 comparator. Excedrin grew by mid-twenties percent reflecting supply
improvements. Voltaren grew by low single digit as growth outside of the
US offset the expected short term US decrease following the
introduction of private label competition.
Vitamins, minerals and
supplements
Vitamins,
minerals and supplements sales increased by 3% AER, 6% CER to
£398 million, building on the significant growth (17% CER) in
Q4 2020 and demonstrating that consumers are continuing to
prioritise their health and wellbeing. Centrum grew by mid-twenties percent,
helped by further improved capacity in the US that allowed retailer
restocking and despite a challenging Q4 2020 comparator.
Caltrate sales were down
low single digits and Emergen-C decreased double
digits.
Respiratory
health
Respiratory health sales increased by 34% AER, 40% CER to £352
million driven by a return of more typical seasonal cold and flu
demand and helped by a favourable prior year comparator. Cold and
flu sales rebounded strongly, growing over 40%, and were above 2019
levels in Europe and slightly below 2019 levels in the
US.
Digestive health and
other
Digestive health and other brands sales increased by 8% AER,11% CER
at £463 million. Skin health and Digestive health both grew by
high-single digits. Smokers health grew by high teens percent
helped by favourable stocking patterns following the introduction
of new packaging in the quarter.
|
|
Operating performance
|
|
Cost of sales
Total
cost of sales as a percentage of turnover was 38.6%, 2.3 percentage
points higher at AER and 1.8 percentage points higher in CER terms
compared with Q4 2020. This included a reduction in write-downs in
manufacturing sites.
Excluding
these and other Adjusting items, Adjusted cost of sales as a
percentage of turnover was 36.7%, 4.7 percentage points higher at
AER and 4.2 percentage points higher at CER compared with Q4 2020.
This primarily reflected higher pandemic sales from Xevudy in the quarter as well as higher
supply chain costs resulting from lower demand and higher inventory
adjustments in Vaccines, partly offset by price benefits in
Pharmaceuticals, including the benefit from a prior period RAR
adjustment.
Selling, general and administration
Total
SG&A costs as a percentage of turnover were 34.2%, 2.0
percentage points lower at AER and 2.5 percentage points lower CER
compared with Q4 2020. This included an increase in separation
costs and significant legal costs.
Excluding
Adjusting items, Adjusted SG&A costs as a percentage of
turnover were 30.5%, 2.9 percentage points lower at AER than in Q4
2020 and 3.4 percentage points lower on a CER basis. Adjusted
SG&A costs decreased 1% AER but increased 2% CER which
reflected increased investment for launches in Pharmaceuticals and
Vaccines partly offset by reduced costs for legal settlements,
one-off benefits in pensions and insurance continued tight control
of ongoing costs and the continuing benefit of restructuring in
Consumer Healthcare and support functions.
Research and development
Total
R&D expenditure was £1,448 million (15.2% of turnover),
down 2% AER, and up 1% CER, including an reduction in restructuring
costs. Adjusted R&D expenditure was £1,365 million (14.3%
of turnover), 5% higher at AER, 7% higher at CER than in Q4
2020.
Pharmaceuticals
R&D expenditure was £1,041 million (19.9% of turnover),
stable at AER, up 2% CER, reflecting steady progression of the
portfolio offset by reduction in spend in bintrafusp alfa,
feladilimab and daprodustat. Efficiency savings continue from the
implementation of our One R&D programme for Pharmaceuticals and
Vaccines as part of the Separation preparation restructuring
programme.
In the
Specialty portfolio, investment has been stable, with increased
investment in the early-stage Research programmes (including IL18
and CCL17) and in depemokimab, our anti-IL5 for asthma. This has
been offset by reduced spend on daprodustat due to completion of
programmes. In Oncology, there has been increased investment in
Blenrep, NY-ESO and
cobolimab however these increases were offset by a reduction in
spend on feladilimab following the decision to terminate the
programme in April and bintrafusp alfa programme
closure.
R&D
expenditure in Vaccines was £230 million (12.7% of turnover),
up 29% AER, 35% CER, reflecting increased investment in clinical
programmes for meningitis, RSV and investment in our mRNA platform,
partly offset by efficiency savings from the implementation of the
One Development programme. R&D expenditure in Consumer
Healthcare was £81 million.
Royalty income
Royalty
income was £135 million (Q4 2020: £91 million), up 48%
AER and up 46% at CER, primarily reflecting increased royalties on
sales of Gardasil.
|
|
Other operating income/(expense)
Net
other operating expense of £379 million (Q4 2020: £34
million) primarily reflected accounting charges of £612
million (Q4 2020: £2 million credit) arising from the
re-measurement of the contingent consideration liabilities related
to the acquisitions of the former Shionogi-ViiV Healthcare joint
venture and the former Novartis Vaccines business and the
liabilities for the Pfizer put option and Pfizer and Shionogi
preferential dividends in ViiV Healthcare. This included a
re-measurement charge of £528 million (Q4 2020: £3
million credit) for the contingent consideration liability due to
Shionogi, as a result of the unwinding of the discount for
£101 million and a charge for £427 million primarily from
the settlement with Gilead and adjustments to sales forecasts
partly offset by updated exchange rate assumptions. This was partly
offset by a number of asset disposals including the profit on
disposal of the cephalosporins business.
|
|
Operating profit
Total
operating profit was £895 million in Q4 2021 compared with
£1,061 million in Q4 2020. This reflected higher
re-measurement charges on the contingent consideration liabilities
partly offset by lower restructuring and higher profit on disposal
of assets.
Excluding
these and other Adjusting items, Adjusted operating profit was
£1,893 million, 4% higher than Q4 2020 at AER, 15% higher at
CER on a turnover increase of 13% CER. The Adjusted operating
margin of 19.9% was 0.9 percentage points lower at AER, and 0.2
percentage points higher on a CER basis than in Q4
2020.
The increase in Adjusted operating profit primarily reflected
leverage from £920 million of pandemic sales
(Xevudy £828 million, Pandemic adjuvant £92
million) as well as strong growth in New and Specialty Products and
a favourable prior period RAR adjustment in Pharmaceuticals,
reduced costs for legal settlements continued tight control of
ongoing costs and benefits from continued restructuring across the
business. This was partly offset by increased investment in
R&D, increased investment behind launches and higher supply
chain costs resulting from lower demand and higher inventory
adjustments in Vaccines. The contribution to growth from COVID-19
solutions was approximately 12% AER, 15% CER.
Contingent
consideration cash payments which are made to Shionogi and other
companies reduce the balance sheet liability and hence are not
recorded in the income statement. Total contingent consideration
cash payments in Q4 2021 amounted to £225 million (Q4 2020:
£221 million). This included cash payments made to Shionogi of
£211 million (Q4 2020: £210 million).
Adjusted operating profit by business
Pharmaceuticals
operating profit was £1,028 million, up 21% AER, 37% CER on a
turnover increase of 25% CER. The operating margin of 19.7% was 0.2
percentage points higher at AER than in Q4 2020 and 1.9 percentage
points higher on a CER basis. This primarily reflected strong
growth in New and Specialty products and a favourable prior period
RAR adjustment as well as continued tight control of ongoing costs
and benefits from continued restructuring. This was partly offset
by reduced costs for legal settlements and increased investment
behind launches.
Vaccines
operating profit was £403 million, 42% lower than Q4 2020 at
AER, and 43% lower at CER on a turnover decrease of 7% CER. The
operating margin of 22.3% was 12.1 percentage points lower at AER
than in Q4 2020 and 13.2 percentage points lower on a CER basis.
This was primarily driven by negative operating leverage from the
sales decrease, higher supply chain costs resulting from lower
demand and higher inventory adjustments, higher SG&A investment
behind key brands and higher R&D spend to support key strategic
priorities. This was partly offset by higher royalty
income.
Consumer
Healthcare operating profit was £558 million, up 45% AER but
up 56% CER on a turnover increase of 10% CER. The operating margin
of 22.3% was 6.0 percentage point higher at AER and
6.9 percentage points higher on a CER basis than in Q4 2020. The
margin increase at CER reflected leverage from volume growth and
price increases, incremental synergy benefits from the Pfizer Joint
Venture and the one-time benefit from legal settlements offset by
incremental supply chain costs, including commodities and
freight.
Net finance costs
Total
net finance costs were £187 million compared with £234
million in Q4 2020. Adjusted net finance costs were £186
million compared with £233 million in Q4 2020. The decrease
primarily reflected a premium paid on the early repayment and
refinancing of bond debt in Q4 2020, reduced interest on tax,
increased swap interest income on foreign currency hedges and
favourable movements in foreign exchange rates.
Share of after tax profits of associates and joint
ventures
The
share of after tax losses of associates and joint ventures was
£2 million (Q4 2020: £6 million).
Taxation
The
credit of £224 million represented an effective tax rate on
Total results of (31.7)% (Q4 2020: (2.2)%) and reflected the
different tax effects of the various Adjusting items including a
further credit adjustment of £72 million resulting from the
revaluation of deferred tax assets following enactment of the
proposed change of UK corporation tax rate from 19% to 25%
(effective 1 April 2023). Tax on Adjusted profit amounted to
£177 million and represented an effective Adjusted tax rate of
10.4% (Q4 2020: 13.9%).
Issues
related to taxation are described in Note 14,
‘Taxation’ in the Annual Report 2020. The Group
continues to believe it has made adequate provision for the
liabilities likely to arise from periods which are open and not yet
agreed by 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.
Non-controlling interests
The
allocation of Total earnings to non-controlling interests amounted
to £181 million (Q4 2020: £162 million). The increase was
primarily due to an increased allocation of Consumer Healthcare
Joint Venture profits of £180 million (Q4 2020: £64
million) offset by a reduced allocation of ViiV Healthcare losses
of £8 million (Q4 2020: £97 million profits), including
increased credits for re-measurement of contingent consideration
liabilities.
The
allocation of Adjusted earnings to non-controlling interests
amounted to £248 million (Q4 2020: £195 million). The
increase in allocation primarily reflected an increased allocation
of Consumer Healthcare Joint Venture profits of £132 million
(Q4 2020: £91 million) and an increased allocation of ViiV
Healthcare profits of £107 million (Q4 2020: £103
million).
Earnings per share
Total
EPS was 15.0p, compared with 13.6p in Q4 2020. This primarily
reflected lower restructuring and higher disposal income partly
offset by higher re-measurement charges.
Adjusted
EPS was 25.6p compared with 23.3p in Q4 2020, up 9% AER and 22%
CER, on a 15% CER increase in Adjusted operating profit reflecting
positive leverage from Xevudy sales in the quarter and lower
interest costs partly offset by a higher non-controlling interest
allocation of Consumer Healthcare profits. The contribution to
growth from COVID-19 solutions was approximately 17% AER, 20%
CER.
Currency impact on Q4 2021 results
The
results for Q4 2021 are based on average exchange rates,
principally £1/$1.36, £1/€1.18 and £1/Yen 154.
Comparative exchange rates are given on page 57. The period-end
exchange rates were £1/$1.35, £1/€1.19 and
£1/Yen 155.
In the
quarter, turnover increased 9% AER, 13% CER. Total EPS was 15.0p
compared with 13.6p in Q4 2020. Adjusted EPS was 25.6p compared
with 23.3p in Q4 2020, up 9% AER and 22% CER. The adverse currency
impact primarily reflected the strengthening in Sterling,
particularly against the US dollar as well as Euro and Japanese
Yen. Exchange gains or losses on the settlement of intercompany
transactions had a one percentage point, negative currency impact
of 13 percentage points on Adjusted EPS.
|
|
Adjusting items
The
reconciliations between Total results and Adjusted results for Q4
2021 and Q4 2020 are set out below.
|
|
Three months ended 31 December 2021
|
|
|
Total
results
£m
|
Intangible
amort-
isation
£m
|
Intangible
impair-
ment
£m
|
Major
restruct-
uring
£m
|
Transaction-
related
£m
|
Divestments,
significant
legal and
other items
£m
|
Separation
costs
£m
|
Adjusted
results
£m
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
Turnover
|
9,527
|
|
|
|
|
|
|
9,527
|
|
Cost of sales
|
(3,680)
|
179
|
(37)
|
35
|
7
|
|
|
(3,496)
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
Gross profit
|
5,847
|
179
|
(37)
|
35
|
7
|
|
|
6,031
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administration
|
(3,260)
|
|
|
215
|
25
|
14
|
98
|
(2,908)
|
|
Research and
development
|
(1,448)
|
25
|
64
|
(4)
|
|
(2)
|
|
(1,365)
|
|
Royalty income
|
135
|
|
|
|
|
|
|
135
|
|
Other operating
income/(expense)
|
(379)
|
|
|
1
|
591
|
(245)
|
32
|
-
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
Operating profit
|
895
|
204
|
27
|
247
|
623
|
(233)
|
130
|
1,893
|
|
|
|
|
|
|
|
|
|
|
|
Net
finance costs
|
(187)
|
|
|
1
|
|
|
|
(186)
|
|
Share
of after tax losses
of
associates and joint
ventures
|
(2)
|
|
|
|
|
|
|
(2)
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
Profit before taxation
|
706
|
204
|
27
|
248
|
623
|
(233)
|
130
|
1,705
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
224
|
(49)
|
(11)
|
(33)
|
(95)
|
(201)
|
(12)
|
(177)
|
|
Tax rate %
|
(31.7)%
|
|
|
|
|
|
|
10.4%
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
Profit after taxation
|
930
|
155
|
16
|
215
|
528
|
(434)
|
118
|
1,528
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
Profit
attributable to
non-controlling
interests
|
181
|
|
|
|
67
|
|
|
248
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to
shareholders
|
749
|
155
|
16
|
215
|
461
|
(434)
|
118
|
1,280
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
15.0p
|
3.1p
|
0.3p
|
4.3p
|
9.3p
|
(8.7)p
|
2.3p
|
25.6p
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average
number
of shares
(millions)
|
5,008
|
|
|
|
|
|
|
5,008
|
|
|
––––––––––––
|
|
|
|
|
|
|
––––––––––––
|
|
Three months ended 31 December 2020
|
|
|
Total
results
£m
|
Intangible
amort-
isation
£m
|
Intangible
impair-
ment
£m
|
Major
restruct-
uring
£m
|
Transaction-
related
£m
|
Divestments,
significant
legal and
other items
£m
|
Separation
costs
£m
|
Adjusted
results
£m
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
Turnover
|
8,739
|
|
|
|
|
|
|
8,739
|
|
Cost of sales
|
(3,171)
|
170
|
3
|
199
|
7
|
|
|
(2,792)
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
Gross profit
|
5,568
|
170
|
3
|
199
|
7
|
|
|
5,947
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administration
|
(3,162)
|
1
|
1
|
211
|
2
|
(2)
|
25
|
(2,924)
|
|
Research and
development
|
(1,470)
|
25
|
38
|
110
|
|
|
|
(1,297)
|
|
Royalty income
|
91
|
|
|
|
|
|
|
91
|
|
Other operating
income/(expense)
|
34
|
|
|
|
(8)
|
(26)
|
|
-
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
Operating profit
|
1,061
|
196
|
42
|
520
|
1
|
(28)
|
25
|
1,817
|
|
|
|
|
|
|
|
|
|
|
|
Net
finance costs
|
(234)
|
|
|
|
|
1
|
|
(233)
|
|
Share
of after tax losses
of
associates and joint
ventures
|
(6)
|
|
|
|
|
|
|
(6)
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
Profit before taxation
|
821
|
196
|
42
|
520
|
1
|
(27)
|
25
|
1,578
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
18
|
(40)
|
(8)
|
(51)
|
(43)
|
(90)
|
(6)
|
(220)
|
|
Tax rate %
|
(2.2)%
|
|
|
|
|
|
|
13.9%
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
Profit after taxation
|
839
|
156
|
34
|
469
|
(42)
|
(117)
|
19
|
1,358
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
Profit
attributable to
non-controlling
interests
|
162
|
|
|
|
33
|
|
|
195
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to
shareholders
|
677
|
156
|
34
|
469
|
(75)
|
(117)
|
19
|
1,163
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
13.6p
|
3.2p
|
0.7p
|
9.3p
|
(1.5)p
|
(2.4)p
|
0.4p
|
23.3p
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average
number
of shares
(millions)
|
4,981
|
|
|
|
|
|
|
4,981
|
|
|
––––––––––––
|
|
|
|
|
|
|
––––––––––––
|
|
Major restructuring and integration
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.
|
|
Total
Major restructuring charges incurred in Q4 2021 were £247
million (Q4 2020: £520 million), analysed as
follows:
|
|
|
Q4 2021
|
|
Q4
2020
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
£m
|
|
Non-cash
£m
|
|
Total
£m
|
|
Cash
£m
|
|
Non-cash
£m
|
|
Total
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018
major restructuring
programme
(incl. Tesaro)
|
10
|
|
(1)
|
|
9
|
|
30
|
|
15
|
|
45
|
|
Consumer
Healthcare Joint
Venture
integration
programme
|
67
|
|
7
|
|
74
|
|
53
|
|
4
|
|
57
|
|
Separation
Preparation
restructuring
programme
|
119
|
|
41
|
|
160
|
|
273
|
|
104
|
|
377
|
|
Combined
restructuring and
integration
programme
|
3
|
|
1
|
|
4
|
|
26
|
|
15
|
|
41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
199
|
|
48
|
|
247
|
|
382
|
|
138
|
|
520
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
charges of £119 million under the Separation Preparation
programme primarily arose from restructuring of some administrative
functions and office locations as well as commercial
pharmaceuticals and R&D functions. Non-cash charge of £41
million primarily related to write-down of assets in administrative
locations and R&D sites.
Cash
charges of £67 million on the Consumer Healthcare Joint
Venture programme primarily related to severance and integration
costs.
Total
cash payments made in Q4 2021 were £181 million (Q4 2020:
£194 million), £112 million (Q4 2020: £71 million)
relating to the Separation Preparation restructuring programme, a
further £35 million (Q4 2020: £67 million) relating to
the Consumer Healthcare Joint Venture integration programme,
£25 million (Q4 2020: £34 million) under the 2018 major
restructuring programme including the settlement of certain charges
accrued in previous quarters and £9 million (Q4 2020: £22
million) for the existing Combined restructuring and integration
programme.
The
analysis of Major restructuring charges by business was as
follows:
|
|
|
Q4 2021
£m
|
|
Q4
2020
£m
|
|
|
|
|
|
|
Pharmaceuticals
|
87
|
|
309
|
|
Vaccines
|
(10)
|
|
11
|
|
Consumer
Healthcare
|
76
|
|
71
|
|
|
|
|
|
|
|
153
|
|
391
|
|
Corporate
& central functions
|
94
|
|
129
|
|
|
|
|
|
|
Total
Major restructuring costs
|
247
|
|
520
|
|
|
|
|
|
|
The
analysis of Major restructuring charges by Income statement line
was as follows:
|
|
|
Q4 2021
£m
|
|
Q4
2020
£m
|
|
|
|
|
|
|
Cost of
sales
|
35
|
|
199
|
|
Selling,
general and administration
|
215
|
|
211
|
|
Research
and development
|
(4)
|
|
110
|
|
Other
operating income
|
1
|
|
-
|
|
|
|
|
|
|
Total
Major restructuring costs
|
247
|
|
520
|
|
|
|
|
|
|
The
benefit in the quarter from restructuring programmes was £0.3
billion, with contributions from the Separation Preparation
restructuring programme (£0.1 billion), Consumer Healthcare
Joint Venture integration and the 2018 major restructuring
programme.
|
|
Transaction-related adjustments
Transaction-related
adjustments resulted in a net charge of £623 million (Q4 2020:
£1 million). This included a net accounting charge of
£612 million (Q4 2020: £2 million credit) for the
re-measurement of the contingent consideration liabilities related
to the acquisitions of the former Shionogi-ViiV Healthcare joint
venture and the former Novartis Vaccines business and the
liabilities for the Pfizer put option and Pfizer and Shionogi
preferential dividends in ViiV Healthcare.
|
|
Charge/(credit)
|
Q4 2021
£m
|
|
Q4
2020
£m
|
|
|
|
|
|
|
Contingent
consideration on former Shionogi-ViiV Healthcare joint
venture
(including
Shionogi preferential dividends)
|
528
|
|
(3)
|
|
ViiV
Healthcare put options and Pfizer preferential
dividends
|
101
|
|
(10)
|
|
Contingent
consideration on former Novartis Vaccines business
|
(17)
|
|
11
|
|
Other
adjustments
|
11
|
|
3
|
|
|
|
|
|
|
Total
transaction-related charges
|
623
|
|
1
|
|
|
|
|
|
|
The £528 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, primarily as a result of the unwind
of the discount for £101 million and a charge of £427
million primarily from the settlement with Gilead and updated sales
forecasts partly offset by updated exchange rate assumptions. The
£101 million charge relating to the ViiV Healthcare put option
and Pfizer preferential dividends represented an increase in the
valuation of the put option following the settlement with Gilead
offset by updated exchange rate assumptions.
The
ViiV Healthcare contingent consideration liability is fair valued
under IFRS. The potential impact of the COVID-19 pandemic remains
uncertain and at 31 December 2021, it has been assumed that there
will be no significant impact on the long-term value of the
liability. This position remains under review and the amount of
liability will be updated in future quarters as further information
on the impact of the pandemic becomes available. An explanation of
the accounting for the non-controlling interests in ViiV Healthcare
is set out on page 11.
Divestments, significant legal charges and other items
Divestments
and other items included a number of asset disposals including the
profit on disposal of the cephalosporins business and certain other
Adjusting items. There was a charge of £37 million (Q4 2020:
£1 million) for significant legal matters arising in the
quarter. Significant legal cash payments were £1 million (Q4
2020: £2 million). Included within Divestments, significant
legal and other items, is a deferred tax credit of £157
million arising on the transfer of intellectual property within the
group during the quarter. This deferred tax credit arises due to
differences between group value and the market value of the assets
transferred.
Separation costs
From Q2 2020, the Group started to report additional costs to
prepare for Consumer Healthcare separation. Separation costs
incurred in the quarter were £130 million (Q4 2020: £25
million) including preparatory admission costs of £38
million.
|
|
Cash generation
|
|
Cash flow
|
|
|
2021
|
|
2020
|
|
Q4
2021
|
|
|
|
|
|
|
|
|
Net
cash inflow from operating activities (£m)
|
7,952
|
|
8,441
|
|
3,767
|
|
Free
cash flow* (£m)
|
4,437
|
|
5,406
|
|
2,901
|
|
Free
cash flow growth (%)
|
(18)%
|
|
7%
|
|
(7)%
|
|
Free
cash flow conversion* (%)
|
101%
|
|
94%
|
|
387%
|
|
Net
debt** (£m)
|
19,838
|
|
20,780
|
|
19,838
|
|
*
|
Free
cash flow and free cash flow conversion are defined on page
61.
|
|
**
|
Net
debt is analysed on page 60.
|
|
2021
The net
cash inflow from operating activities for the year was £7,952
million (2020: £8,441 million). The decrease primarily
reflected adverse exchange impacts, increased trade receivables,
adverse timing of RAR and increased separation costs, partly offset
by improved adjusted operating profit at CER and reduced tax
payments including tax on disposals.
Total
cash payments to Shionogi in relation to the ViiV Healthcare
contingent consideration liability in the year were £826
million (2020: £858 million), of which £721 million was
recognised in cash flows from operating activities and £105
million was recognised in contingent consideration paid within
investing cash flows. These payments are deductible for tax
purposes.
Free
cash inflow was £4,437 million for the year (2020: £5,406
million). The decrease primarily reflected adverse exchange
impacts, increased trade receivables, adverse timing of RAR,
increased purchases of intangible assets and reduced proceeds from
intangible assets. This was partly offset by improved adjusted
operating profit at CER, reduced tax payments including tax on
disposals and lower dividends to non-controlling
interests.
|
|
Q4 2021
The net
cash inflow from operating activities for the quarter was
£3,767 million (Q4 2020: £3,855 million). The reduction
primarily reflected adverse exchange impacts and a lower seasonal
reduction in trade receivables in the quarter and phasing of tax
payments partly offset by improved adjusted operating profit at CER
and favourable timing of RAR.
Total
cash payments to Shionogi in relation to the ViiV Healthcare
contingent consideration liability in the quarter were £211
million (Q4 2020: £210 million), of which £184 million
was recognised in cash flows from operating activities and £27
million was recognised in contingent consideration paid within
investing cash flows. These payments are deductible for tax
purposes.
Free
cash inflow was £2,901 million for the quarter (Q4 2020:
£3,106 million). The reduction primarily reflected adverse
exchange impacts and a lower seasonal reduction in trade
receivables in the quarter, phasing of tax payments and lower
proceeds from intangible assets, partly offset by improved adjusted
operating profit at CER, favourable timing of RAR and lower
purchases of intangible assets.
|
|
Net debt
At 31
December 2021, net debt was £19.8 billion, compared with
£20.8 billion at 31 December 2020, comprising gross debt of
£24.1 billion and cash and liquid investments of £4.3
billion. Net debt reduced due to £4.4 billion free cash flow
and £0.5 billion proceeds from investments, including
£0.3 billion proceeds from the Innoviva disposal and £0.3
billion of net favourable exchange impacts from the translation of
non-Sterling denominated debt and exchange on other financing items
partly offset by the dividends paid to shareholders of £4.0
billion and additional investments of £0.2
billion.
At 31
December 2021, GSK had short-term borrowings (including overdrafts
and lease liabilities) repayable within 12 months of £3.6
billion with loans of £4.0 billion repayable in the subsequent
year.
|
|
Returns to shareholders
|
|
Quarterly dividends
The
Board has declared a fourth interim dividend for 2021 of 23 pence
per share (Q4 2020: 23 pence per share).
On 23
June 2021, at the new GSK Investor Update, GSK set out that from
2022 a progressive dividend policy will be implemented. The
dividend policy, the total expected cash distribution, and the
respective dividend pay-out ratios for new GSK and new Consumer
Healthcare remain unchanged.
GSK
expects to declare a 27p per share dividend payable by the current
group for the first half. This comprises 22 pence per share for new
GSK and 5 pence per share representing Consumer Healthcare during
the first half whilst part of the group. For the second half of
2022, new GSK continues to expect to declare a 22p per share
dividend. As previously communicated, new GSK would expect to
declare a dividend of 45 pence per share for 2023.
Following separation, the dividend policy for the new Consumer
Healthcare company will be the responsibility of its Board of
Directors and is expected to be guided by a 30 to 50 per cent
pay-out ratio. On this basis, we now expect a second-half dividend
from the new Consumer Healthcare company equivalent to a payout of
around 3 pence per share, subject to its Board’s decisions on
the intra-year phasing of dividend payments. This expected
distribution per share for the second half of the year has been
adjusted from that highlighted at the GSK Investor Update in June
2021 to reflect the total number of shares (up to circa 9.25
billion shares) in the new Consumer Healthcare company that are
expected to be in issue upon demerger. In June 2021 the planning
assumption for the Investor Update reflected only the GSK shares in
issue at that time (circa 5 billion shares).
In
aggregate, this would represent on the full year 2022 basis the
equivalent of a Group dividend of around 52p per share. Dividends
payable by Consumer Healthcare will only be receivable by
shareholders who remain invested in Consumer Healthcare
post-separation and at the appropriate record dates.
Payment of dividends
The
equivalent interim dividend receivable by ADR holders will be
calculated based on the exchange rate on 4 April 2022. An annual
fee of $0.03 per ADS (or $0.0075 per ADS per quarter) is charged by
the Depositary.
The
ex-dividend date will be 24 February 2022, with a record date of 25
February 2022 and a payment date of 7 April 2022.
|
|
|
Paid/
payable
|
|
Pence
per
share
|
|
£m
|
|
|
|
|
|
|
|
|
2021
|
|
|
|
|
|
|
First
interim
|
8 July
2021
|
|
19
|
|
951
|
|
Second
interim
|
7
October 2021
|
|
19
|
|
951
|
|
Third
interim
|
13
January 2022
|
|
19
|
|
952
|
|
Fourth
interim
|
7 April
2022
|
|
23
|
|
1,152
|
|
|
|
|
|
|
|
|
|
|
|
80
|
|
4,006
|
|
|
|
|
|
|
|
|
2020
|
|
|
|
|
|
|
First
interim
|
9 July
2020
|
|
19
|
|
946
|
|
Second
interim
|
8
October 2020
|
|
19
|
|
946
|
|
Third
interim
|
14
January 2021
|
|
19
|
|
946
|
|
Fourth
interim
|
8 April
2021
|
|
23
|
|
1,151
|
|
|
|
|
|
|
|
|
|
|
|
80
|
|
3,989
|
|
|
|
|
|
|
|
|
Weighted average number of shares
|
|
|
|
|
|
|
|
|
|
2021
millions
|
|
2020
millions
|
|
|
|
|
|
|
|
|
Weighted
average number of shares – basic
|
|
|
5,003
|
|
4,976
|
|
Dilutive
effect of share options and share awards
|
|
|
62
|
|
62
|
|
|
|
|
|
|
|
|
Weighted
average number of shares – diluted
|
|
|
5,065
|
|
5,038
|
|
|
|
|
|
|
|
|
Weighted average number of shares
|
|
|
|
|
|
|
|
|
|
Q4 2021
millions
|
|
Q4
2020
millions
|
|
|
|
|
|
|
|
|
Weighted
average number of shares – basic
|
|
|
5,008
|
|
4,981
|
|
Dilutive
effect of share options and share awards
|
|
|
86
|
|
61
|
|
|
|
|
|
|
|
|
Weighted
average number of shares – diluted
|
|
|
5,094
|
|
5,042
|
|
|
|
|
|
|
|
|
At 31
December 2021, 5,009 million shares (2020: 4,981 million) were in
free issue (excluding Treasury shares and shares held by the ESOP
Trusts). GSK made no share repurchases during the period. The
company issued 1.8 million shares under employee share schemes in
the year for proceeds of £21 million (2020: £29
million).
|
|
At 31
December 2021, the ESOP Trust held 22.8 million GSK shares against
the future exercise of share options and share awards. The carrying
value of £28 million has been deducted from other reserves.
The market value of these shares was £373
million.
At 31
December 2021, the company held 355.2 million Treasury shares at a
cost of £4,969 million, which has been deducted from retained
earnings.
|
|
Financial information
|
|
Income statements
|
|
|
2021
£m
|
|
2020
£m
|
|
Q4 2021
£m
|
|
Q4
2020
£m
|
|
|
|
|
|
|
|
|
|
|
TURNOVER
|
34,114
|
|
34,099
|
|
9,527
|
|
8,739
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
(11,603)
|
|
(11,704)
|
|
(3,680)
|
|
(3,171)
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
22,511
|
|
22,395
|
|
5,847
|
|
5,568
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administration
|
(10,975)
|
|
(11,456)
|
|
(3,260)
|
|
(3,162)
|
|
Research
and development
|
(5,278)
|
|
(5,098)
|
|
(1,448)
|
|
(1,470)
|
|
Royalty income
|
419
|
|
318
|
|
135
|
|
91
|
|
Other
operating (expense)/income
|
(476)
|
|
1,624
|
|
(379)
|
|
34
|
|
|
|
|
|
|
|
|
|
|
OPERATING PROFIT
|
6,201
|
|
7,783
|
|
895
|
|
1,061
|
|
|
|
|
|
|
|
|
|
|
Finance
income
|
28
|
|
44
|
|
4
|
|
5
|
|
Finance
expense
|
(784)
|
|
(892)
|
|
(191)
|
|
(239)
|
|
Share
of after tax profits/(losses) of
associates
and joint ventures
|
33
|
|
33
|
|
(2)
|
|
(6)
|
|
Loss on
disposal of interest in associates
|
(36)
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAXATION
|
5,442
|
|
6,968
|
|
706
|
|
821
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
(346)
|
|
(580)
|
|
224
|
|
18
|
|
Tax rate %
|
6.4%
|
|
8.3%
|
|
(31.7)%
|
|
(2.2)%
|
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAXATION
|
5,096
|
|
6,388
|
|
930
|
|
839
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling
interests
|
711
|
|
639
|
|
181
|
|
162
|
|
Profit
attributable to shareholders
|
4,385
|
|
5,749
|
|
749
|
|
677
|
|
|
|
|
|
|
|
|
|
|
|
5,096
|
|
6,388
|
|
930
|
|
839
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE
|
87.6p
|
|
115.5p
|
|
15.0p
|
|
13.6p
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share
|
86.6p
|
|
114.1p
|
|
14.7p
|
|
13.4p
|
|
|
|
|
|
|
|
|
|
|
Statement of comprehensive income
|
|
|
2021
£m
|
|
2020
£m
|
|
Q4 2021
£m
|
|
Q4
2020
£m
|
|
|
|
|
|
|
|
|
|
|
Profit
for the year
|
5,096
|
|
6,388
|
|
930
|
|
839
|
|
|
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently to
income statement:
|
|
|
|
|
|
|
|
|
Exchange
movements on overseas net assets and
net
investment hedges
|
(290)
|
|
(59)
|
|
(181)
|
|
(248)
|
|
Reclassification
of exchange movements on liquidation
or
disposal of overseas subsidiaries and associates
|
25
|
|
36
|
|
35
|
|
-
|
|
Fair
value movements on cash flow hedges
|
5
|
|
(19)
|
|
9
|
|
4
|
|
Reclassification
of cash flow hedges to income
statement
|
12
|
|
54
|
|
1
|
|
1
|
|
Deferred
tax on fair value movements on cash flow
hedges
|
(8)
|
|
(18)
|
|
(7)
|
|
(16)
|
|
|
|
|
|
|
|
|
|
|
|
(256)
|
|
(6)
|
|
(143)
|
|
(259)
|
|
|
|
|
|
|
|
|
|
|
Items that will not be reclassified to income
statement:
|
|
|
|
|
|
|
|
|
Exchange
movements on overseas net assets of
non-controlling
interests
|
(20)
|
|
(34)
|
|
(19)
|
|
(64)
|
|
Fair
value movements on equity investments
|
(910)
|
|
1,348
|
|
(615)
|
|
635
|
|
Tax on
fair value movements on equity investments
|
131
|
|
(220)
|
|
33
|
|
(104)
|
|
Re-measurement
losses on defined benefit plans
|
941
|
|
(187)
|
|
607
|
|
195
|
|
Tax on
re-measurement losses on defined benefit plans
|
(223)
|
|
69
|
|
(158)
|
|
(9)
|
|
|
|
|
|
|
|
|
|
|
|
(81)
|
|
976
|
|
(152)
|
|
653
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive (expense)/income for the year
|
(337)
|
|
970
|
|
(295)
|
|
394
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income for the year
|
4,759
|
|
7,358
|
|
635
|
|
1,233
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income for the year attributable to:
|
|
|
|
|
|
|
|
|
Shareholders
|
4,068
|
|
6,753
|
|
473
|
|
1,135
|
|
Non-controlling
interests
|
691
|
|
605
|
|
162
|
|
98
|
|
|
|
|
|
|
|
|
|
|
|
4,759
|
|
7,358
|
|
635
|
|
1,233
|
|
|
|
|
|
|
|
|
|
|
Pharmaceuticals turnover – year ended 31 December
2021
|
|
|
Total
|
US
|
Europe
|
International
|
||||||||
|
|
–––––––––––––––––––––––––––––––––––––
|
–––––––––––––––––––––––––––––––––––––
|
–––––––––––––––––––––––––––––––––––––
|
–––––––––––––––––––––––––––––––––––––
|
||||||||
|
|
|
Growth
|
|
Growth
|
|
Growth
|
|
Growth
|
||||
|
|
|
–––––––––––––––––––––––
|
|
–––––––––––––––––––––––
|
|
–––––––––––––––––––––––
|
|
–––––––––––––––––––––––
|
||||
|
|
£m
|
£%
|
CER%
|
£m
|
£%
|
CER%
|
£m
|
£%
|
CER%
|
£m
|
£%
|
CER%
|
|
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Respiratory
|
2,863
|
21
|
28
|
1,822
|
23
|
30
|
606
|
11
|
13
|
435
|
33
|
42
|
|
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
|
Anoro Ellipta
|
504
|
(8)
|
(3)
|
278
|
(15)
|
(9)
|
149
|
5
|
8
|
77
|
(1)
|
3
|
|
Trelegy Ellipta
|
1,217
|
49
|
57
|
854
|
52
|
62
|
200
|
19
|
21
|
163
|
81
|
92
|
|
Nucala
|
1,142
|
15
|
22
|
690
|
15
|
23
|
257
|
8
|
11
|
195
|
23
|
34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HIV
|
4,777
|
(2)
|
3
|
2,898
|
(4)
|
3
|
1,194
|
(2)
|
1
|
685
|
4
|
11
|
|
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
|
Dolutegravir
products
|
4,567
|
(3)
|
2
|
2,774
|
(6)
|
-
|
1,151
|
(1)
|
1
|
642
|
7
|
14
|
|
Tivicay
|
1,381
|
(10)
|
(4)
|
763
|
(12)
|
(7)
|
286
|
(22)
|
(20)
|
332
|
15
|
24
|
|
Triumeq
|
1,882
|
(18)
|
(14)
|
1,190
|
(18)
|
(13)
|
452
|
(20)
|
(18)
|
240
|
(15)
|
(12)
|
|
Juluca
|
517
|
4
|
10
|
393
|
2
|
8
|
111
|
14
|
18
|
13
|
18
|
27
|
|
Dovato
|
787
|
>100
|
>100
|
428
|
87
|
99
|
302
|
>100
|
>100
|
57
|
>100
|
>100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rukobia
|
45
|
>100
|
>100
|
43
|
>100
|
>100
|
2
|
>100
|
>100
|
-
|
-
|
-
|
|
Cabenuva
|
38
|
>100
|
>100
|
32
|
-
|
-
|
5
|
-
|
-
|
1
|
>100
|
>(100)
|
|
Other
|
127
|
(22)
|
(18)
|
49
|
(8)
|
(4)
|
36
|
(28)
|
(26)
|
42
|
(30)
|
(23)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Immuno-
inflammation
|
885
|
22
|
29
|
727
|
19
|
26
|
68
|
21
|
25
|
90
|
53
|
63
|
|
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
|
Benlysta
|
874
|
22
|
29
|
727
|
19
|
26
|
68
|
21
|
25
|
79
|
55
|
67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oncology
|
489
|
31
|
37
|
274
|
19
|
26
|
195
|
43
|
46
|
20
|
>100
|
>100
|
|
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
|
Zejula
|
395
|
17
|
22
|
212
|
3
|
10
|
163
|
27
|
30
|
20
|
>100
|
>100
|
|
Blenrep
|
89
|
>100
|
>100
|
61
|
>100
|
>100
|
28
|
>100
|
>100
|
-
|
-
|
-
|
|
Jemperli
|
5
|
>100
|
>100
|
2
|
-
|
-
|
3
|
>100
|
>100
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pandemic
|
958
|
-
|
-
|
602
|
-
|
-
|
69
|
-
|
-
|
287
|
-
|
-
|
|
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
|
Xevudy
|
958
|
-
|
-
|
602
|
-
|
-
|
69
|
-
|
-
|
287
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New and Specialty
Pharmaceuticals
|
9,972
|
20
|
26
|
6,323
|
19
|
26
|
2,132
|
9
|
12
|
1,517
|
45
|
54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Established
Pharmaceuticals
|
7,757
|
(11)
|
(6)
|
2,119
|
-
|
6
|
1,802
|
(16)
|
(14)
|
3,836
|
(14)
|
(8)
|
|
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
|
Established
Respiratory
|
4,327
|
(7)
|
(2)
|
1,788
|
7
|
13
|
995
|
(12)
|
(10)
|
1,544
|
(16)
|
(10)
|
|
Arnuity Ellipta
|
47
|
4
|
11
|
40
|
8
|
16
|
-
|
-
|
-
|
7
|
(12)
|
(13)
|
|
Avamys/Veramyst
|
298
|
-
|
7
|
-
|
-
|
-
|
65
|
(2)
|
2
|
233
|
1
|
8
|
|
Flixotide/Flovent
|
444
|
6
|
12
|
275
|
50
|
60
|
69
|
(14)
|
(11)
|
100
|
(36)
|
(32)
|
|
Incruse Ellipta
|
205
|
(7)
|
(3)
|
109
|
(7)
|
(2)
|
70
|
(5)
|
(3)
|
26
|
(10)
|
(7)
|
|
Relvar/Breo Ellipta
|
1,121
|
-
|
5
|
488
|
3
|
9
|
334
|
4
|
6
|
299
|
(9)
|
(2)
|
|
Seretide/Advair
|
1,357
|
(12)
|
(7)
|
486
|
12
|
19
|
322
|
(28)
|
(27)
|
549
|
(16)
|
(11)
|
|
Ventolin
|
718
|
(9)
|
(4)
|
390
|
(9)
|
(3)
|
108
|
(7)
|
(5)
|
220
|
(8)
|
(3)
|
|
Other
Respiratory
|
137
|
(36)
|
(31)
|
-
|
-
|
-
|
27
|
-
|
-
|
110
|
(41)
|
(36)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dermatology
|
399
|
(6)
|
(1)
|
(1)
|
>(100)
|
>(100)
|
131
|
(6)
|
(4)
|
269
|
(5)
|
2
|
|
Augmentin
|
426
|
(13)
|
(7)
|
-
|
-
|
-
|
124
|
(14)
|
(12)
|
302
|
(12)
|
(4)
|
|
Avodart
|
332
|
(29)
|
(25)
|
1
|
(80)
|
(80)
|
118
|
(25)
|
(23)
|
213
|
(30)
|
(25)
|
|
Imigran/Imitrex
|
105
|
(11)
|
(8)
|
29
|
(31)
|
(31)
|
51
|
-
|
2
|
25
|
-
|
8
|
|
Lamictal
|
478
|
(11)
|
(6)
|
232
|
(14)
|
(9)
|
112
|
(7)
|
(5)
|
134
|
(9)
|
(3)
|
|
Seroxat/Paxil
|
128
|
(12)
|
(6)
|
-
|
-
|
-
|
35
|
(5)
|
(5)
|
93
|
(15)
|
(6)
|
|
Valtrex
|
92
|
(11)
|
(5)
|
11
|
(27)
|
(20)
|
33
|
3
|
3
|
48
|
(14)
|
(5)
|
|
Other
|
1,470
|
(18)
|
(13)
|
59
|
(46)
|
(40)
|
203
|
(39)
|
(37)
|
1,208
|
(11)
|
(5)
|
|
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
|
Pharmaceuticals
|
17,729
|
4
|
10
|
8,442
|
13
|
21
|
3,934
|
(4)
|
(2)
|
5,353
|
(3)
|
4
|
|
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––––
|
––––––––
|
––––––––
|
–––––––––
|
––––––––
|
––––––––
|
–––––––––
|
––––––––
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceuticals turnover – three months ended 31 December
2021
|
|
|
Total
|
US
|
Europe
|
International
|
||||||||
|
|
–––––––––––––––––––––––––––––––––––––
|
–––––––––––––––––––––––––––––––––––––
|
–––––––––––––––––––––––––––––––––––––
|
–––––––––––––––––––––––––––––––––––––
|
||||||||
|
|
|
Growth
|
|
Growth
|
|
Growth
|
|
Growth
|
||||
|
|
|
–––––––––––––––––––––––
|
|
–––––––––––––––––––––––
|
|
–––––––––––––––––––––––
|
|
–––––––––––––––––––––––
|
||||
|
|
£m
|
£%
|
CER%
|
£m
|
£%
|
CER%
|
£m
|
£%
|
CER%
|
£m
|
£%
|
CER%
|
|
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Respiratory
|
786
|
15
|
20
|
500
|
15
|
17
|
160
|
7
|
11
|
126
|
31
|
42
|
|
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
|
Anoro Ellipta
|
123
|
(19)
|
(17)
|
63
|
(30)
|
(29)
|
39
|
-
|
5
|
21
|
(5)
|
(5)
|
|
Trelegy Ellipta
|
352
|
48
|
53
|
248
|
54
|
58
|
54
|
13
|
17
|
50
|
72
|
86
|
|
Nucala
|
311
|
7
|
11
|
189
|
3
|
5
|
67
|
6
|
11
|
55
|
22
|
36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HIV
|
1,260
|
(1)
|
3
|
803
|
-
|
2
|
318
|
(3)
|
2
|
139
|
2
|
7
|
|
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
|
Dolutegravir
products
|
1,194
|
(3)
|
1
|
760
|
(3)
|
(1)
|
304
|
(3)
|
1
|
130
|
5
|
10
|
|
Tivicay
|
321
|
(12)
|
(10)
|
200
|
(13)
|
(10)
|
71
|
(19)
|
(16)
|
50
|
4
|
6
|
|
Triumeq
|
476
|
(18)
|
(15)
|
308
|
(17)
|
(15)
|
110
|
(23)
|
(20)
|
58
|
(13)
|
(7)
|
|
Juluca
|
143
|
3
|
6
|
110
|
2
|
5
|
30
|
7
|
11
|
3
|
-
|
33
|
|
Dovato
|
254
|
80
|
87
|
142
|
80
|
85
|
93
|
66
|
75
|
19
|
>100
|
>100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rukobia
|
15
|
88
|
87
|
14
|
75
|
75
|
1
|
>100
|
>100
|
-
|
-
|
-
|
|
Cabenuva
|
20
|
>100
|
>100
|
17
|
-
|
-
|
2
|
-
|
-
|
1
|
>100
|
>100
|
|
Other
|
31
|
(11)
|
(8)
|
12
|
9
|
-
|
11
|
(8)
|
-
|
8
|
(33)
|
(24)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Immuno-
inflammation
|
247
|
20
|
23
|
203
|
16
|
19
|
18
|
20
|
27
|
26
|
62
|
69
|
|
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
|
Benlysta
|
244
|
19
|
22
|
203
|
16
|
19
|
18
|
20
|
27
|
23
|
53
|
60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oncology
|
132
|
15
|
18
|
68
|
(9)
|
(7)
|
52
|
41
|
46
|
12
|
>100
|
>100
|
|
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
|
Zejula
|
108
|
21
|
24
|
51
|
(6)
|
(4)
|
45
|
41
|
47
|
12
|
>100
|
>100
|
|
Blenrep
|
22
|
(12)
|
(8)
|
17
|
(15)
|
(10)
|
6
|
20
|
20
|
(1)
|
>(100)
|
>(100)
|
|
Jemperli
|
2
|
>100
|
>100
|
1
|
-
|
-
|
1
|
>100
|
>100
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pandemic
|
828
|
-
|
-
|
586
|
-
|
-
|
68
|
-
|
-
|
174
|
-
|
-
|
|
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
|
Xevudy
|
828
|
-
|
-
|
586
|
-
|
-
|
68
|
-
|
-
|
174
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New and Specialty
Pharmaceuticals
|
3,253
|
43
|
49
|
2,160
|
45
|
50
|
616
|
16
|
21
|
477
|
90
|
>100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Established
Pharmaceuticals
|
1,968
|
(6)
|
(2)
|
515
|
6
|
8
|
452
|
(14)
|
(10)
|
1,001
|
(8)
|
(2)
|
|
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
|
Established
Respiratory
|
1,075
|
(2)
|
2
|
427
|
14
|
16
|
255
|
(8)
|
(4)
|
393
|
(11)
|
(6)
|
|
Arnuity Ellipta
|
13
|
(7)
|
-
|
12
|
9
|
9
|
-
|
-
|
-
|
1
|
(67)
|
(33)
|
|
Avamys/Veramyst
|
71
|
1
|
7
|
-
|
-
|
-
|
15
|
-
|
13
|
56
|
2
|
5
|
|
Flixotide/Flovent
|
107
|
23
|
25
|
56
|
65
|
65
|
22
|
10
|
15
|
29
|
(12)
|
(9)
|
|
Incruse Ellipta
|
49
|
2
|
4
|
27
|
29
|
24
|
16
|
(16)
|
(11)
|
6
|
(25)
|
(13)
|
|
Relvar/Breo Ellipta
|
280
|
2
|
6
|
117
|
9
|
10
|
86
|
2
|
7
|
77
|
(7)
|
-
|
|
Seretide/Advair
|
335
|
(5)
|
(1)
|
120
|
64
|
68
|
78
|
(26)
|
(23)
|
137
|
(21)
|
(17)
|
|
Ventolin
|
184
|
(13)
|
(10)
|
96
|
(23)
|
(22)
|
31
|
7
|
10
|
57
|
-
|
4
|
|
Other
Respiratory
|
36
|
(3)
|
8
|
(1)
|
>(100)
|
(100)
|
7
|
17
|
17
|
30
|
3
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dermatology
|
101
|
(7)
|
(2)
|
(1)
|
>(100)
|
>(100)
|
31
|
(14)
|
(11)
|
71
|
(3)
|
4
|
|
Augmentin
|
130
|
13
|
22
|
-
|
-
|
-
|
38
|
3
|
8
|
92
|
18
|
28
|
|
Avodart
|
79
|
(18)
|
(11)
|
-
|
>(100)
|
>(100)
|
29
|
(15)
|
(9)
|
50
|
(18)
|
(11)
|
|
Imigran/Imitrex
|
26
|
(4)
|
-
|
6
|
-
|
(17)
|
14
|
-
|
-
|
6
|
(14)
|
14
|
|
Lamictal
|
122
|
(13)
|
(10)
|
62
|
(15)
|
(14)
|
27
|
(10)
|
(7)
|
33
|
(11)
|
(5)
|
|
Seroxat/Paxil
|
32
|
(11)
|
(3)
|
-
|
-
|
-
|
9
|
(10)
|
(10)
|
23
|
(12)
|
-
|
|
Valtrex
|
24
|
(8)
|
-
|
3
|
(25)
|
-
|
8
|
-
|
-
|
13
|
(7)
|
-
|
|
Other
|
379
|
(17)
|
(12)
|
18
|
(33)
|
(26)
|
41
|
(49)
|
(44)
|
320
|
(8)
|
(3)
|
|
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
|
Pharmaceuticals
|
5,221
|
20
|
25
|
2,675
|
36
|
40
|
1,068
|
1
|
6
|
1,478
|
11
|
17
|
|
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vaccines turnover – year ended 31 December 2021
|
|
|
Total
|
US
|
Europe
|
International
|
||||||||
|
|
–––––––––––––––––––––––––––––––––––––
|
–––––––––––––––––––––––––––––––––––––
|
–––––––––––––––––––––––––––––––––––––
|
–––––––––––––––––––––––––––––––––––––
|
||||||||
|
|
|
Growth
|
|
Growth
|
|
Growth
|
|
Growth
|
||||
|
|
|
–––––––––––––––––––––––
|
|
–––––––––––––––––––––––
|
|
–––––––––––––––––––––––
|
|
–––––––––––––––––––––––
|
||||
|
|
£m
|
£%
|
CER%
|
£m
|
£%
|
CER%
|
£m
|
£%
|
CER%
|
£m
|
£%
|
CER%
|
|
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meningitis
|
961
|
(7)
|
(2)
|
453
|
5
|
11
|
354
|
(1)
|
2
|
154
|
(36)
|
(30)
|
|
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
|
Bexsero
|
650
|
-
|
5
|
253
|
(3)
|
3
|
328
|
1
|
4
|
69
|
5
|
20
|
|
Menveo
|
272
|
3
|
9
|
200
|
16
|
23
|
21
|
(19)
|
(15)
|
51
|
(23)
|
(18)
|
|
Other
|
39
|
(66)
|
(65)
|
-
|
-
|
-
|
5
|
(17)
|
(17)
|
34
|
(69)
|
(68)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Influenza
|
679
|
(7)
|
(2)
|
456
|
(15)
|
(9)
|
101
|
3
|
6
|
122
|
22
|
28
|
|
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
|
Fluarix, FluLaval
|
679
|
(7)
|
(2)
|
456
|
(15)
|
(9)
|
101
|
3
|
6
|
122
|
22
|
28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shingles
|
1,721
|
(13)
|
(9)
|
1,344
|
(20)
|
(15)
|
281
|
51
|
54
|
96
|
(25)
|
(23)
|
|
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
|
Shingrix
|
1,721
|
(13)
|
(9)
|
1,344
|
(20)
|
(15)
|
281
|
51
|
54
|
96
|
(25)
|
(23)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Established
Vaccines
|
2,970
|
(8)
|
(4)
|
977
|
(7)
|
(1)
|
700
|
(13)
|
(10)
|
1,293
|
(6)
|
(3)
|
|
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
|
Infanrix, Pediarix
|
543
|
(14)
|
(9)
|
303
|
(3)
|
4
|
116
|
(33)
|
(32)
|
124
|
(14)
|
(10)
|
|
Boostrix
|
521
|
9
|
14
|
270
|
5
|
12
|
140
|
-
|
2
|
111
|
41
|
44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hepatitis
|
460
|
(20)
|
(16)
|
269
|
(19)
|
(14)
|
109
|
(22)
|
(21)
|
82
|
(20)
|
(17)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rotarix
|
541
|
(3)
|
1
|
111
|
(10)
|
(4)
|
118
|
(1)
|
2
|
312
|
(2)
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Synflorix
|
357
|
(11)
|
(8)
|
-
|
-
|
-
|
45
|
(15)
|
(13)
|
312
|
(11)
|
(7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Priorix, Priorix Tetra,
Varilrix
|
260
|
-
|
4
|
-
|
-
|
-
|
125
|
(1)
|
2
|
135
|
-
|
5
|
|
Cervarix
|
138
|
(1)
|
-
|
-
|
-
|
-
|
25
|
(17)
|
(17)
|
113
|
4
|
5
|
|
Other
|
150
|
(21)
|
(19)
|
24
|
(20)
|
(13)
|
22
|
16
|
26
|
104
|
(26)
|
(26)
|
|
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
|
Vaccines excluding
pandemic vaccines
|
6,331
|
(9)
|
(5)
|
3,230
|
(13)
|
(7)
|
1,436
|
-
|
2
|
1,665
|
(10)
|
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pandemic vaccines
|
447
|
-
|
-
|
242
|
-
|
-
|
-
|
-
|
-
|
205
|
-
|
-
|
|
Pandemic
adjuvant
|
444
|
-
|
-
|
242
|
-
|
-
|
-
|
-
|
-
|
202
|
-
|
-
|
|
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
|
Total Vaccines
|
6,778
|
(3)
|
2
|
3,472
|
(6)
|
-
|
1,436
|
-
|
2
|
1,870
|
1
|
5
|
|
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
|
Vaccines turnover – three months ended 31 December
2021
|
|
|
Total
|
US
|
Europe
|
International
|
||||||||
|
|
–––––––––––––––––––––––––––––––––––––
|
–––––––––––––––––––––––––––––––––––––
|
–––––––––––––––––––––––––––––––––––––
|
–––––––––––––––––––––––––––––––––––––
|
||||||||
|
|
|
Growth
|
|
Growth
|
|
Growth
|
|
Growth
|
||||
|
|
|
–––––––––––––––––––––––
|
|
–––––––––––––––––––––––
|
|
–––––––––––––––––––––––
|
|
–––––––––––––––––––––––
|
||||
|
|
£m
|
£%
|
CER%
|
£m
|
£%
|
CER%
|
£m
|
£%
|
CER%
|
£m
|
£%
|
CER%
|
|
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meningitis
|
194
|
(29)
|
(27)
|
63
|
(43)
|
(45)
|
86
|
(5)
|
(1)
|
45
|
(38)
|
(33)
|
|
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
|
Bexsero
|
127
|
(20)
|
(17)
|
35
|
(42)
|
(45)
|
77
|
(6)
|
(1)
|
15
|
(12)
|
6
|
|
Menveo
|
48
|
(42)
|
(42)
|
28
|
(44)
|
(44)
|
8
|
-
|
-
|
12
|
(52)
|
(52)
|
|
Other
|
19
|
(41)
|
(37)
|
-
|
-
|
-
|
1
|
-
|
-
|
18
|
(42)
|
(39)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Influenza
|
244
|
(3)
|
-
|
130
|
(16)
|
(14)
|
78
|
20
|
23
|
36
|
9
|
15
|
|
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
|
Fluarix, FluLaval
|
244
|
(3)
|
-
|
130
|
(16)
|
(14)
|
78
|
20
|
23
|
36
|
9
|
15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shingles
|
597
|
(7)
|
(4)
|
451
|
(13)
|
(10)
|
116
|
68
|
74
|
30
|
(46)
|
(43)
|
|
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
|
Shingrix
|
597
|
(7)
|
(4)
|
451
|
(13)
|
(10)
|
116
|
68
|
74
|
30
|
(46)
|
(43)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Established
Vaccines
|
682
|
(19)
|
(16)
|
203
|
(33)
|
(32)
|
172
|
(13)
|
(8)
|
307
|
(10)
|
(6)
|
|
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
|
Infanrix, Pediarix
|
115
|
(33)
|
(31)
|
58
|
(42)
|
(43)
|
25
|
(34)
|
(29)
|
32
|
(6)
|
-
|
|
Boostrix
|
114
|
(9)
|
(6)
|
55
|
(21)
|
(20)
|
32
|
(11)
|
(8)
|
27
|
42
|
47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hepatitis
|
113
|
(19)
|
(17)
|
62
|
(27)
|
(27)
|
33
|
14
|
17
|
18
|
(28)
|
(20)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rotarix
|
142
|
(4)
|
1
|
27
|
(31)
|
(31)
|
32
|
3
|
10
|
83
|
6
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Synflorix
|
92
|
(1)
|
4
|
-
|
-
|
-
|
13
|
18
|
18
|
79
|
(4)
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Priorix, Priorix Tetra,
Varilrix
|
54
|
(31)
|
(26)
|
-
|
-
|
-
|
28
|
(10)
|
-
|
26
|
(45)
|
(43)
|
|
Cervarix
|
23
|
(48)
|
(45)
|
-
|
-
|
-
|
3
|
(81)
|
(81)
|
20
|
(29)
|
(25)
|
|
Other
|
29
|
(31)
|
(33)
|
1
|
(86)
|
(57)
|
6
|
20
|
40
|
22
|
(27)
|
(40)
|
|
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
|
Vaccines excluding
pandemic vaccines
|
1,717
|
(15)
|
(12)
|
847
|
(22)
|
(20)
|
452
|
7
|
12
|
418
|
(17)
|
(13)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pandemic vaccines
|
92
|
-
|
-
|
2
|
-
|
-
|
-
|
-
|
-
|
90
|
-
|
-
|
|
Pandemic
adjuvant
|
92
|
-
|
-
|
2
|
-
|
-
|
-
|
-
|
-
|
90
|
-
|
-
|
|
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
|
Total Vaccines
|
1,809
|
(10)
|
(7)
|
849
|
(22)
|
(20)
|
452
|
7
|
12
|
508
|
1
|
6
|
|
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
––––––––
|
|
Balance sheet
|
|
|
|
|
31 December 2021
£m
|
|
31
December 2020
£m
|
|
ASSETS
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
Property,
plant and equipment
|
|
|
9,932
|
|
10,176
|
|
Right
of use assets
|
|
|
740
|
|
830
|
|
Goodwill
|
|
|
10,552
|
|
10,597
|
|
Other
intangible assets
|
|
|
30,079
|
|
29,824
|
|
Investments
in associates and joint ventures
|
|
|
88
|
|
364
|
|
Other
investments
|
|
|
2,126
|
|
3,060
|
|
Deferred
tax assets
|
|
|
5,218
|
|
4,287
|
|
Derivative
financial instruments
|
|
|
18
|
|
5
|
|
Other
non-current assets
|
|
|
1,676
|
|
1,041
|
|
|
|
|
|
|
|
|
Total non-current assets
|
|
|
60,429
|
|
60,184
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
Inventories
|
|
|
5,783
|
|
5,996
|
|
Current
tax recoverable
|
|
|
486
|
|
671
|
|
Trade
and other receivables
|
|
|
7,860
|
|
6,952
|
|
Derivative
financial instruments
|
|
|
188
|
|
152
|
|
Liquid
investments
|
|
|
61
|
|
78
|
|
Cash
and cash equivalents
|
|
|
4,274
|
|
6,292
|
|
Assets
held for sale
|
|
|
22
|
|
106
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
18,674
|
|
20,247
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
|
79,103
|
|
80,431
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Short-term
borrowings
|
|
|
(3,601)
|
|
(3,725)
|
|
Contingent
consideration liabilities
|
|
|
(958)
|
|
(765)
|
|
Trade
and other payables
|
|
|
(17,554)
|
|
(15,840)
|
|
Derivative
financial instruments
|
|
|
(227)
|
|
(221)
|
|
Current
tax payable
|
|
|
(489)
|
|
(545)
|
|
Short-term
provisions
|
|
|
(841)
|
|
(1,052)
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
(23,670)
|
|
(22,148)
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
Long-term
borrowings
|
|
|
(20,572)
|
|
(23,425)
|
|
Corporation
tax payable
|
|
|
(180)
|
|
(176)
|
|
Deferred
tax liabilities
|
|
|
(3,556)
|
|
(3,600)
|
|
Pensions
and other post-employment benefits
|
|
|
(3,113)
|
|
(3,650)
|
|
Other
provisions
|
|
|
(630)
|
|
(707)
|
|
Derivative
financial instruments
|
|
|
(1)
|
|
(10)
|
|
Contingent
consideration liabilities
|
|
|
(5,118)
|
|
(5,104)
|
|
Other
non-current liabilities
|
|
|
(921)
|
|
(803)
|
|
|
|
|
|
|
|
|
Total non-current liabilities
|
|
|
(34,091)
|
|
(37,475)
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
|
|
|
(57,761)
|
|
(59,623)
|
|
|
|
|
|
|
|
|
NET ASSETS
|
|
|
21,342
|
|
20,808
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
Share
capital
|
|
|
1,347
|
|
1,346
|
|
Share
premium account
|
|
|
3,301
|
|
3,281
|
|
Retained
earnings
|
|
|
7,944
|
|
6,755
|
|
Other
reserves
|
|
|
2,463
|
|
3,205
|
|
|
|
|
|
|
|
|
Shareholders’ equity
|
|
|
15,055
|
|
14,587
|
|
|
|
|
|
|
|
|
Non-controlling
interests
|
|
|
6,287
|
|
6,221
|
|
|
|
|
|
|
|
|
TOTAL EQUITY
|
|
|
21,342
|
|
20,808
|
|
|
|
|
|
|
|
|
Statement of changes in equity
|
|
|
Share
capital
£m
|
Share
premium
£m
|
Retained
earnings
£m
|
Other
reserves
£m
|
Share-
holder’s
equity
£m
|
Non-
controlling
interests
£m
|
Total
equity
£m
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
|
|
|
|
|
|
|
|
|
At 1
January 2021
|
1,346
|
3,281
|
6,755
|
3,205
|
14,587
|
6,221
|
20,808
|
|
|
|
|
|
|
|
|
|
|
Profit
for the year
|
|
|
4,385
|
|
4,385
|
711
|
5,096
|
|
Other
comprehensive (expense)/income
for
the year
|
|
|
454
|
(771)
|
(317)
|
(20)
|
(337)
|
|
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
Total
comprehensive income for the year
|
|
|
4,839
|
(771)
|
4,068
|
691
|
4,759
|
|
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
Distributions
to non-controlling interests
|
|
|
|
|
|
(642)
|
(642)
|
|
Contributions
from non-controlling interests
|
|
|
|
|
|
7
|
7
|
|
Dividends
to shareholders
|
|
|
(3,999)
|
|
(3,999)
|
|
(3,999)
|
|
Shares
issued
|
1
|
20
|
|
|
21
|
|
21
|
|
Realised
after tax profits on disposal of
equity
investments
|
|
|
132
|
(132)
|
|
|
-
|
|
Share
of associates and joint ventures
realised
profits on disposal of equity
investments
|
|
|
7
|
(7)
|
|
|
-
|
|
Write-down
on shares held by ESOP Trusts
|
|
|
(168)
|
168
|
|
|
-
|
|
Share-based
incentive plans
|
|
|
367
|
|
367
|
|
367
|
|
Transactions
with non-controlling interests
|
|
|
|
|
|
10
|
10
|
|
Tax on
share-based incentive plans
|
|
|
11
|
|
11
|
|
11
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
At 31 December 2021
|
1,347
|
3,301
|
7,944
|
2,463
|
15,055
|
6,287
|
21,342
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
|
|
|
|
|
|
|
|
|
At 1
January 2020
|
1,346
|
3,174
|
4,530
|
2,355
|
11,405
|
6,952
|
18,357
|
|
|
|
|
|
|
|
|
|
|
Profit
for the year
|
|
|
5,749
|
|
5,749
|
639
|
6,388
|
|
Other
comprehensive (expense)/income
for
the year
|
|
|
(133)
|
1,137
|
1,004
|
(34)
|
970
|
|
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
Total
comprehensive income for the year
|
|
|
5,616
|
1,137
|
6,753
|
605
|
7,358
|
|
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
Distributions
to non-controlling interests
|
|
|
|
|
|
(1,208)
|
(1,208)
|
|
Contributions
from non-controlling interests
|
|
|
|
|
|
3
|
3
|
|
Changes
to non-controlling interests
|
|
|
|
|
|
(131)
|
(131)
|
|
Dividends
to shareholders
|
|
|
(3,977)
|
|
(3,977)
|
|
(3,977)
|
|
Shares
issued
|
|
29
|
|
|
29
|
|
29
|
|
Realised
after tax profits on disposal of
equity
investments
|
|
|
163
|
(163)
|
|
|
-
|
|
Share
of associates and joint ventures
realised
profits on disposal of equity
investments
|
|
|
44
|
(44)
|
|
|
-
|
|
Shares
acquired by ESOP Trusts
|
|
78
|
531
|
(609)
|
|
|
-
|
|
Write-down
on shares held by ESOP Trusts
|
|
|
(529)
|
529
|
|
|
-
|
|
Share-based
incentive plans
|
|
|
381
|
|
381
|
|
381
|
|
Tax on
share-based incentive plans
|
|
|
(4)
|
|
(4)
|
|
(4)
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
At 31 December 2020
|
1,346
|
3,281
|
6,755
|
3,205
|
14,587
|
6,221
|
20,808
|
|
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
––––––––––––
|
|
Cash flow statement – year ended 31 December
2021
|
|
|
2021
£m
|
|
2020
£m
|
|
|
|
|
|
|
|
|
Profit after tax
|
5,096
|
|
6,388
|
|
|
Tax on
profits
|
346
|
|
580
|
|
|
Share
of after tax profits of associates and joint ventures
|
(33)
|
|
(33)
|
|
|
Loss on
disposal of interest in associates
|
36
|
|
-
|
|
|
Net
finance expense
|
756
|
|
848
|
|
|
Depreciation,
amortisation and other adjusting items
|
2,524
|
|
624
|
|
|
(Decrease)/increase
in working capital
|
(473)
|
|
120
|
|
|
Contingent
consideration paid
|
(742)
|
|
(765)
|
|
|
Increase
in other net liabilities (excluding contingent consideration
paid)
|
1,733
|
|
2,334
|
|
|
|
|
|
|
|
|
Cash generated from operations
|
9,243
|
|
10,096
|
|
|
Taxation
paid
|
(1,291)
|
|
(1,655)
|
|
|
|
|
|
|
|
|
Net cash inflow from operating activities
|
7,952
|
|
8,441
|
|
|
|
|
|
|
|
|
Cash flow from investing activities
|
|
|
|
|
|
Purchase
of property, plant and equipment
|
(1,172)
|
|
(1,226)
|
|
|
Proceeds
from sale of property, plant and equipment
|
143
|
|
68
|
|
|
Purchase
of intangible assets
|
(1,759)
|
|
(1,013)
|
|
|
Proceeds
from sale of intangible assets
|
772
|
|
1,255
|
|
|
Purchase
of equity investments
|
(162)
|
|
(411)
|
|
|
Proceeds
from sale of equity investments
|
202
|
|
3,269
|
|
|
Purchase
of businesses, net of cash acquired
|
-
|
|
15
|
|
|
Contingent
consideration paid
|
(114)
|
|
(120)
|
|
|
Disposal
of businesses
|
(17)
|
|
259
|
|
|
Investment
in associates and joint ventures
|
(1)
|
|
(4)
|
|
|
Interest
received
|
27
|
|
39
|
|
|
(Increase)/decrease
in liquid investments
|
18
|
|
(1)
|
|
|
Dividends
from associates and joint ventures
|
9
|
|
31
|
|
|
Proceeds
from disposal of associates and joint ventures
|
277
|
|
-
|
|
|
|
|
|
|
|
|
Net cash (outflow)/inflow from investing activities
|
(1,777)
|
|
2,161
|
|
|
|
|
|
|
|
|
Cash flow from financing activities
|
|
|
|
|
|
Issue
of share capital
|
21
|
|
29
|
|
|
Increase
in long-term loans
|
-
|
|
3,298
|
|
|
Repayment
of short-term loans
|
(1,995)
|
|
(7,305)
|
|
|
Repayment
of lease liabilities
|
(215)
|
|
(227)
|
|
|
Interest
paid
|
(786)
|
|
(864)
|
|
|
Dividends
paid to shareholders
|
(3,999)
|
|
(3,977)
|
|
|
Distributions
to non-controlling interests
|
(642)
|
|
(1,208)
|
|
|
Contributions
from non-controlling interests
|
7
|
|
3
|
|
|
Other
financing items
|
20
|
|
119
|
|
|
|
|
|
|
|
|
Net cash outflow from financing activities
|
(7,589)
|
|
(10,132)
|
|
|
|
|
|
|
|
|
(Decrease)/increase in cash and bank overdrafts in the
year
|
(1,414)
|
|
470
|
|
|
|
|
|
|
|
|
Cash
and bank overdrafts at beginning of the year
|
5,262
|
|
4,831
|
|
|
Exchange
adjustments
|
(29)
|
|
(39)
|
|
|
(Decrease)/increase
in cash and bank overdrafts
|
(1,414)
|
|
470
|
|
|
|
|
|
|
|
|
Cash and bank overdrafts at end of the year
|
3,819
|
|
5,262
|
|
|
|
|
|
|
|
|
Cash
and bank overdrafts at end of the period comprise:
|
|
|
|
|
|
|
Cash
and cash equivalents
|
4,274
|
|
6,292
|
|
|
|
|
|
|
|
|
|
4,274
|
|
6,292
|
|
|
Overdrafts
|
(455)
|
|
(1,030)
|
|
|
|
|
|
|
|
|
3,819
|
|
5,262
|
|
|
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 four segments:
Pharmaceuticals; Pharmaceuticals R&D; Vaccines and Consumer
Healthcare, and individual members of the GLT are responsible for
each segment.
The
Pharmaceuticals R&D segment is the responsibility of the Chief
Scientific Officer and President, R&D and is reported as a
separate segment. The operating profit of this segment excludes the
ViiV Healthcare operating profit (including R&D expenditure)
that is reported within the Pharmaceuticals segment.
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.
Corporate
and other unallocated turnover and costs include the results of
certain Consumer Healthcare products which are being held for sale
in a number of markets in order to meet anti-trust approval
requirements, together with the costs of corporate
functions.
|
|
Turnover by segment
|
|
|
2021
£m
|
|
2020
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
|
|
Pharmaceuticals
|
17,729
|
|
17,056
|
|
4
|
|
10
|
|
Vaccines
|
6,778
|
|
6,982
|
|
(3)
|
|
2
|
|
Consumer
Healthcare
|
9,607
|
|
10,033
|
|
(4)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
34,114
|
|
34,071
|
|
-
|
|
5
|
|
Corporate
and other unallocated turnover
|
-
|
|
28
|
|
(100)
|
|
(100)
|
|
|
|
|
|
|
|
|
|
|
Total
turnover
|
34,114
|
|
34,099
|
|
-
|
|
5
|
|
|
|
|
|
|
|
|
|
|
Operating profit by segment
|
|
|
2021
£m
|
|
2020
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
|
|
Pharmaceuticals
|
8,170
|
|
7,723
|
|
6
|
|
15
|
|
Pharmaceuticals
R&D
|
(3,489)
|
|
(3,538)
|
|
(1)
|
|
3
|
|
|
|
|
|
|
|
|
|
|
Pharmaceuticals
including R&D
|
4,681
|
|
4,185
|
|
12
|
|
24
|
|
Vaccines
|
2,256
|
|
2,713
|
|
(17)
|
|
(11)
|
|
Consumer
Healthcare
|
2,239
|
|
2,213
|
|
1
|
|
9
|
|
|
|
|
|
|
|
|
|
|
Segment
profit
|
9,176
|
|
9,111
|
|
1
|
|
10
|
|
Corporate
and other unallocated costs
|
(370)
|
|
(205)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
operating profit
|
8,806
|
|
8,906
|
|
(1)
|
|
9
|
|
Adjusting
items
|
(2,605)
|
|
(1,123)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
operating profit
|
6,201
|
|
7,783
|
|
(20)
|
|
(9)
|
|
|
|
|
|
|
|
|
|
|
Finance
income
|
28
|
|
44
|
|
|
|
|
|
Finance
costs
|
(784)
|
|
(892)
|
|
|
|
|
|
Share
of after tax profits of associates
and
joint ventures
|
33
|
|
33
|
|
|
|
|
|
Loss on
disposal of interest in associates
|
(36)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
before taxation
|
5,442
|
|
6,968
|
|
(22)
|
|
(10)
|
|
|
|
|
|
|
|
|
|
|
Turnover by segment
|
|
|
Q4 2021
£m
|
|
Q4
2020
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
|
|
Pharmaceuticals
|
5,221
|
|
4,366
|
|
20
|
|
25
|
|
Vaccines
|
1,809
|
|
2,012
|
|
(10)
|
|
(7)
|
|
Consumer
Healthcare
|
2,497
|
|
2,360
|
|
6
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
9,527
|
|
8,738
|
|
9
|
|
13
|
|
Corporate
and other unallocated turnover
|
-
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
turnover
|
9,527
|
|
8,739
|
|
9
|
|
13
|
|
|
|
|
|
|
|
|
|
|
Operating profit by segment
|
|
|
Q4 2021
£m
|
|
Q4
2020
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
|
|
Pharmaceuticals
|
2,035
|
|
1,874
|
|
9
|
|
17
|
|
Pharmaceuticals
R&D
|
(1,007)
|
|
(1,023)
|
|
(2)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Pharmaceuticals
including R&D
|
1,028
|
|
851
|
|
21
|
|
37
|
|
Vaccines
|
403
|
|
691
|
|
(42)
|
|
(43)
|
|
Consumer
Healthcare
|
558
|
|
385
|
|
45
|
|
56
|
|
|
|
|
|
|
|
|
|
|
Segment
profit
|
1,989
|
|
1,927
|
|
3
|
|
12
|
|
Corporate
and other unallocated costs
|
(96)
|
|
(110)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
operating profit
|
1,893
|
|
1,817
|
|
4
|
|
15
|
|
Adjusting
items
|
(998)
|
|
(756)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
operating profit
|
895
|
|
1,061
|
|
(16)
|
|
1
|
|
|
|
|
|
|
|
|
|
|
Finance
income
|
4
|
|
5
|
|
|
|
|
|
Finance
costs
|
(191)
|
|
(239)
|
|
|
|
|
|
Share
of after tax (losses)/profits of associates
and
joint ventures
|
(2)
|
|
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
before taxation
|
706
|
|
821
|
|
(14)
|
|
8
|
|
|
|
|
|
|
|
|
|
|
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 2020. At 31 December
2021, the Group’s aggregate provision for legal and other
disputes (not including tax matters described on page 22 was
£0.2 billion (31 December 2020: £0.3
billion).
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
developments since the date of the Annual Report 2020 are as
follows:
ViiV
Healthcare, the global specialist HIV company majority-owned by
GSK, with Pfizer Inc. and Shionogi & Co. Limited as
shareholders, has agreed to settle the global patent infringement
litigation between GSK, Shionogi and Gilead Sciences, Inc. (Gilead)
concerning ViiV Healthcare’s patents relating to
dolutegravir, an antiretroviral medication used, together with
other medicines, to treat human immunodeficiency virus
(HIV).
Under
the terms of the global settlement and licensing agreement, Gilead
will make an upfront payment of $1.25 billion to ViiV Healthcare
which is expected in the first quarter of 2022. In addition, Gilead
will also pay a 3% royalty on all future US sales of Biktarvy and
in respect of the bictegravir component of any other future
bictegravir-containing products sold in the US. These royalties
will be payable by Gilead to ViiV Healthcare from 1 February 2022
until the expiry of ViiV Healthcare’s U.S. Patent No.
8,129,385 on 5 October 2027. Gilead’s obligation to pay
royalties does not extend into any period of regulatory paediatric
exclusivity, if awarded.
As a
result of the settlement, patent infringement cases in the US, UK,
France, Ireland, Germany, Japan, Korea, Australia, and Canada will
be discontinued.
|
|
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 2021, and should be read in
conjunction with the Annual Report 2020, 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
2020.
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 2020.
|
|
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 2020 were published
in the Annual Report 2020, 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.
COVID-19 pandemic
The
potential impact of the COVID-19 pandemic on GSK’s trading
performance and all our principal risks has been assessed with
mitigation plans put in place. In 2021, as anticipated, the
pandemic impacted Group performance primarily in demand for
Vaccines and reflected the prioritisation of COVID-19 vaccination
programmes by governments’, including social distancing rules
resulting from COVID-19 that affected customers’ ability and
willingness to access vaccination services across all regions. We
continue to remain confident in the underlying demand for our
Vaccines and are encouraged by the rate at which COVID-19
vaccinations and boosters are being administered in many countries,
which provides support for healthcare systems and the eventual
return to normal. This continues to be a dynamic situation, with
the future severity, duration and impact unknown at this point
including potential impacts on trading results, clinical trials,
supply continuity, and our employees. The situation could change at
any time and there can be no assurance that the COVID-19 pandemic
will not have a material adverse impact on the future results of
the Group.
|
|
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:
|
|
|
2021
|
|
2020
|
|
Q4 2021
|
|
Q4
2020
|
||
|
|
|
|
|
|
|
|
|
||
|
Average
rates:
|
|
|
|
|
|
|
|
||
|
|
|
US$/£
|
1.38
|
|
1.29
|
|
1.36
|
|
1.33
|
|
|
|
Euro/£
|
1.16
|
|
1.13
|
|
1.18
|
|
1.11
|
|
|
|
Yen/£
|
151
|
|
137
|
|
154
|
|
138
|
|
|
|
|
|
|
|
|
|
||
|
Period-end
rates:
|
|
|
|
|
|
|
|
||
|
|
|
US$/£
|
1.35
|
|
1.36
|
|
1.35
|
|
1.36
|
|
|
|
Euro/£
|
1.19
|
|
1.11
|
|
1.19
|
|
1.11
|
|
|
|
Yen/£
|
155
|
|
141
|
|
155
|
|
141
|
|
During Q4 2021 average Sterling exchange rates were stronger
against the US Dollar, the Yen and the Euro compared with the same
period in 2020. During the year ended 31 December 2021, average
Sterling exchange rates were stronger against the US Dollar, the
Yen and the Euro compared with the same period in 2020. Period-end
Sterling exchange rates were stronger against the Euro and the Yen
and weaker against the US Dollar compared with the 2020 period-end
rates.
|
|
Net assets
|
|
The
book value of net assets increased by £534 million from
£20,808 million at 31 December 2020 to £21,342 million at
31 December 2021. This primarily reflected the Total profit for the
period, the re-measurement gains on the defined benefit plans,
increases in deferred tax, other non-current assets and trade
receivables. These were partially offset by the decrease in fair
value of equity investments, increase in trade and other payables
and the dividends paid during the period.
The
carrying value of investments in associates and joint ventures at
31 December 2021 was £88 million (31 December 2020: £364
million), with a market value of £88 million (31 December
2020: £364 million). During 2021, the Group sold all of its
shares in Innoviva Inc back to Innoviva for £277
million.
At 31
December 2021, the net deficit on the Group’s pension plans
was £1,129 million compared with £2,104 million at 31
December 2020. The decrease in the net deficit primarily relate to
higher assets value, increase in the rates used to discount UK
pension liabilities from 1.4% to 2.0%, and US pension liabilities
from 2.3% to 2.7%, partly offset by an increase in the UK inflation
rate from 2.8% to 3.2%.
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 £1,008 million (31
December 2020: £960 million).
Contingent
consideration amounted to £6,076 million at 31 December 2021
(31 December 2020: £5,869 million), of which £5,559
million (31 December 2020: £5,359 million) represented the
estimated present value of amounts payable to Shionogi relating to
ViiV Healthcare and £479 million (31 December 2020: £477
million) represented the estimated present value of contingent
consideration payable to Novartis related to the Vaccines
acquisition.
Of the
contingent consideration payable (on a post-tax basis) to Shionogi
at 31 December 2021, £937 million (31 December 2020: £745
million) is expected to be paid within one year.
|
|
Movements in contingent consideration are as follows:
|
|
2021
|
ViiV Healthcare
£m
|
|
Group
£m
|
|
|
|
|
|
|
Contingent
consideration at beginning of the year
|
5,359
|
|
5,869
|
|
Re-measurement
through income statement
|
1,026
|
|
1,063
|
|
Cash
payments: operating cash flows
|
(721)
|
|
(742)
|
|
Cash
payments: investing activities
|
(105)
|
|
(114)
|
|
|
|
|
|
|
Contingent
consideration at end of the year
|
5,559
|
|
6,076
|
|
|
|
|
|
|
2020
|
ViiV
Healthcare
£m
|
|
Group
£m
|
|
|
|
|
|
|
Contingent
consideration at beginning of the year
|
5,103
|
|
5,479
|
|
Re-measurement
through income statement
|
1,114
|
|
1,275
|
|
Cash
payments: operating cash flows
|
(751)
|
|
(765)
|
|
Cash
payments: investing activities
|
(107)
|
|
(120)
|
|
|
|
|
|
|
Contingent
consideration at end of the year
|
5,359
|
|
5,869
|
|
|
|
|
|
|
The
liabilities for the Pfizer put option and the contingent
consideration at 31 December 2021 have been calculated based on the
period-end exchange rates, primarily US$1.35/£1 and
€1.19/£1. Sensitivity analyses for the Pfizer put option
and each of the largest contingent consideration liabilities are
set out below.
|
|
Increase/(decrease) in liability
|
ViiV
Healthcare
put
option
£m
|
|
Shionogi-
ViiV
Healthcare
contingent
consideration
£m
|
|
Novartis
Vaccines
contingent
consideration
£m
|
|
|
|
|
|
|
|
|
10%
increase in sales forecasts*
|
89
|
|
506
|
|
61
|
|
10%
decrease in sales forecasts*
|
(89)
|
|
(506)
|
|
(57)
|
|
1% (100
basis points) increase in discount rate
|
(30)
|
|
(198)
|
|
(38)
|
|
1% (100
basis points) decrease in discount rate
|
34
|
|
213
|
|
45
|
|
10 cent
appreciation of US Dollar
|
55
|
|
343
|
|
1
|
|
10 cent
depreciation of US Dollar
|
(47)
|
|
(299)
|
|
(4)
|
|
10 cent
appreciation of Euro
|
26
|
|
102
|
|
28
|
|
10 cent
depreciation of Euro
|
(22)
|
|
(85)
|
|
(27)
|
|
|
|
|
|
|
|
|
*
|
The
sales forecast is for ViiV Healthcare sales only in respect of the
ViiV Healthcare put option and the Shionogi-ViiV Healthcare
contingent consideration.
|
|
Contingent liabilities
|
|
There
were contingent liabilities at 31 December 2021 in respect of
guarantees and indemnities 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 56.
Post Balance Sheet Events
On 1
February 2022, ViiV Healthcare reached agreement with Gilead to
settle the global patent infringement litigation relating to the
commercialisation of Gilead’s Biktarvy. Under the terms of the global settlement agreement
and patent license agreement, Gilead will make an upfront payment
of $1.25 billion to ViiV
Healthcare. Gilead will also pay a 3% royalty on all future US
sales of Biktarvy and in respect of the bictegravir component of
any other future bictegravir-containing products sold in the
US. These royalties will be payable by Gilead to ViiV
Healthcare from 1 February 2022 until the expiry of ViiV
Healthcare’s US Patent No. 8,129,385 on 5 October 2027.
Gilead’s obligation to pay royalties does not extend into any
period of regulatory paediatric exclusivity, if
awarded.
The
impact of the settlement in Q1 2022 will be to record the upfront
payment of $1.25 billion received in other operating income in
Total results and Adjusting items. Royalties receivable from 1
February 2022 on sales of Biktarvy and
in respect of the bictegravir component of any other future
bictegravir-containing products sold in the US will be
recorded in royalty income in Total and Adjusted results. The
upfront is a contingent asset at the balance sheet date. This is a
post balance sheet event the income from which does not adjust the
Group’s financial statements at 31 December 2021 as the
receipt was not virtually certain at the balance sheet
date.
Both
the settlement and the future royalty income increase the fair
value of the CCL to Shionogi and the Pfizer put option. This
increase in carrying value has been reflected in GSK’s 2021
full-year and fourth quarter 2021 results, and the associated
charges are recorded within Adjusting items.
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.
In the cash flow statement, cash inflows from the upfront payment
and future royalty income as well as the resultant incremental
contingent consideration liability cash outflows will be recorded
in cash generated from operations. The resulting increased
dividends to Shionogi and Pfizer will be included within financing
cashflows. All values are pre-taxation.
|
|
Reconciliation of cash flow to movements in net debt
|
|
|
2021
£m
|
|
2020
£m
|
|
|
|
|
|
|
Net
debt at beginning of the year
|
(20,780)
|
|
(25,215)
|
|
|
|
|
|
|
(Decrease)/increase
in cash and bank overdrafts
|
(1,414)
|
|
470
|
|
(Decrease)/increase
in liquid investments
|
(18)
|
|
1
|
|
Net
decrease in short-term loans
|
1,995
|
|
7,305
|
|
Increase
in long-term loans
|
-
|
|
(3,298)
|
|
Repayment
of lease liabilities
|
215
|
|
227
|
|
Exchange
adjustments
|
314
|
|
(135)
|
|
Other
non-cash movements
|
(150)
|
|
(135)
|
|
|
|
|
|
|
Decrease
in net debt
|
942
|
|
4,435
|
|
|
|
|
|
|
Net
debt at end of the year
|
(19,838)
|
|
(20,780)
|
|
|
|
|
|
|
Net debt analysis
|
|
|
2021
£m
|
|
2020
£m
|
|
|
|
|
|
|
Liquid
investments
|
61
|
|
78
|
|
Cash
and cash equivalents
|
4,274
|
|
6,292
|
|
Short-term
borrowings
|
(3,601)
|
|
(3,725)
|
|
Long-term
borrowings
|
(20,572)
|
|
(23,425)
|
|
|
|
|
|
|
Net
debt at end of the period
|
(19,838)
|
|
(20,780)
|
|
|
|
|
|
|
Free cash flow reconciliation
|
|
|
2021
£m
|
|
2020
£m
|
|
Q4
2021
£m
|
|
|
|
|
|
|
|
|
Net
cash inflow from operating activities
|
7,952
|
|
8,441
|
|
3,767
|
|
Purchase
of property, plant and equipment
|
(1,172)
|
|
(1,226)
|
|
(453)
|
|
Proceeds
from sale of property, plant and equipment
|
143
|
|
68
|
|
18
|
|
Purchase
of intangible assets
|
(1,759)
|
|
(1,013)
|
|
(179)
|
|
Proceeds
from disposals of intangible assets
|
772
|
|
1,255
|
|
283
|
|
Net
finance costs
|
(759)
|
|
(825)
|
|
(297)
|
|
Dividends
from joint ventures and associates
|
9
|
|
31
|
|
-
|
|
Contingent
consideration paid (reported in investing
activities)
|
(114)
|
|
(120)
|
|
(31)
|
|
Distributions
to non-controlling interests
|
(642)
|
|
(1,208)
|
|
(207)
|
|
Contributions
from non-controlling interests
|
7
|
|
3
|
|
-
|
|
|
|
|
|
|
|
|
Free
cash flow
|
4,437
|
|
5,406
|
|
2,901
|
|
|
|
|
|
|
|
|
Reporting definitions
|
|
Total and Adjusted results
Total
reported results represent the Group’s overall
performance.
GSK
also uses a number of adjusted, non-IFRS, measures to report the
performance of its business. Adjusted 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.
Adjusted results are defined on page 10 and other non-IFRS measures are defined
below.
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
plus proceeds from the sale of property, plant and equipment and
intangible assets, and dividends received from joint ventures and
associates. It is used by management for planning and reporting
purposes and in discussions with and presentations to investment
analysts and rating agencies. Free cash flow growth is calculated
on a reported basis. A reconciliation of net cash inflow from
operations to free cash flow is set out on page 60.
Free cash flow conversion
Free
cash flow conversion is free cash flow as a percentage of
earnings.
Working capital
Working
capital represents inventory and trade receivables less trade
payables.
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. £%
or AER% represents growth at actual exchange rates.
Pro-forma growth
The
acquisition of the Pfizer consumer healthcare business completed on
31 July 2019 and so GSK’s reported results for 2020 included
twelve months of results of the former Pfizer consumer healthcare
business from 1 January 2020.
The
Group has presented in this Results Announcement reference to
pro-forma growth rates at CER in 2020 for sales excluding brands
divested/under review for Consumer Healthcare and sales for certain
categories of consumer healthcare products taking account of this
transaction. Pro-forma growth rates for the year are calculated
comparing reported results for 2020, calculated applying the
exchange rates used in the comparative period, with the results for
2019 adjusted to include the equivalent seven months of results of
the former Pfizer consumer healthcare business during 2019, as
consolidated (in US$) and included in Pfizer’s US GAAP
results.
2 year Compound Annual Growth Rate
CAGR is
defined as the compound annual growth rate and shows the annualised
average rate of pro-forma revenue growth between two given years,
assuming growth takes place at an exponentially compounded rate.
For Consumer Healthcare, the 2 year revenue CAGR has been presented
showing the annualised average rate of pro-forma revenue growth
between 2019 and 2021.
COVID-19 solutions
COVID-19 solutions include the sales of pandemic adjuvant and other
COVID-19 solutions including vaccine manufacturing and
Xevudy
and the associated costs but does not
include reinvestment in R&D. This categorisation is used by
management and we believe is helpful to investors through providing
clarity on the results of the Group by showing the contribution to
growth from COVID-19 solutions.
New GSK
New GSK
refers to the current GSK group excluding the Consumer Healthcare
business that is intended to be (or will have been)
demerged.
General Medicines
General
medicines are usually prescribed in the primary care or community
settings by general healthcare practitioners. For GSK, this
includes medicines in inhaled respiratory, dermatology, antibiotics
and other diseases.
Specialty Medicines
Specialty
medicines are typically prescription medicines used to treat
complex or rare chronic conditions. For GSK, this comprises
medicines in infectious diseases, HIV, oncology, immunology and
respiratory.
|
|
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, assumptions and cautionary statements
|
|
2022 guidance
For new GSK we expect sales to grow between 5% to 7% at CER and
Adjusted operating profit to grow between 12% to 14% at CER as
compared with 2021. This guidance is provided at CER and excludes
the commercial impact of COVID-19 solutions.
Assumptions related to 2022 guidance
In outlining the guidance for 2022, the Group has made certain
assumptions about the healthcare sector, the different markets in
which the Group operates and the delivery of revenues and financial
benefits from its current portfolio, pipeline and restructuring
programmes. The Group also assumes that the demerger of our
Consumer Healthcare business will be delivered in mid-2022 and this
guidance relates only to new GSK.
The Group has made planning assumptions for 2022 that healthcare
systems will approach normality as the year progresses, and we
expect sales of Specialty Medicines to grow approximately 10% at
CER and sales of General Medicines to show a slight decrease,
primarily reflecting increased genericisation of established
Respiratory products. Vaccines sales are expected to grow at a low
teens percentage at CER for the year as a whole. However,
governments’ prioritisation of COVID-19 vaccination
programmes and ongoing measures to contain the pandemic are
expected to result in some continued disruption to adult
immunisations, with the impact weighted to the first half.
For Shingrix, despite the potential for short-term pandemic
disruption, we continue to expect strong double-digit growth and
record annual sales based on strong demand in existing markets and
geographical expansion. Guidance also includes the future benefit
in royalty income from the settlement and license agreement with
Gilead announced on 1 February 2022.
These planning assumptions as well as operating profit guidance and
dividend expectations assume no material interruptions to supply of
the Group’s products, no material mergers, acquisitions or
disposals, no material litigation or investigation costs for the
company (save for those that are already recognised or for which
provisions have been made) and no change in the Group’s
shareholdings in ViiV Healthcare. The assumptions also assume no
material changes in the healthcare environment or unexpected
significant changes in pricing as a result of government or
competitor action. The 2022 guidance factors in all divestments and
product exits announced to date.
The Group’s guidance assumes successful delivery of the
Group’s integration and restructuring plans. It also assumes
that the separation programme to deliver the demerger of the
Consumer Healthcare business is delivered successfully. Material
costs for investment in new product launches and R&D have been
factored into the expectations given. Given the potential
development options in the Group’s pipeline, the outlook may
be affected by additional data-driven R&D investment decisions.
The guidance is given on a constant currency basis.
Assumptions and cautionary statement regarding forward-looking
statements
The
Group’s management believes that the assumptions outlined
above are reasonable, and that the guidance, outlooks, ambitions
and expectations described in this report are achievable based on
those assumptions. However, given the forward-looking nature of
these guidance, outlooks, ambitions 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, such as the COVID-19 pandemic and ongoing challenges and
uncertainties posed by the COVID-19 pandemic for businesses and
governments around the world, 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’, ‘aim’,
‘ambition’ 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.
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 2020 and any impacts of the COVID-19 pandemic. 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.
|
|
|
GlaxoSmithKline plc
|
|
|
(Registrant)
|
|
|
|
|
Date:
February 9, 2022
|
|
|
|
|
|
|
By:/s/ VICTORIA
WHYTE
--------------------------
|
|
|
|
|
|
Victoria Whyte
|
|
|
Authorised
Signatory for and on
|
|
|
behalf
of GlaxoSmithKline plc
|