GSK delivers
strong 2022 performance with full year sales of £29.3
billion
+19% AER, +13%
CER; Total EPS 371.4p >100%
Adjusted
EPS of 139.7p +27% AER, +15% CER from continuing
operations
|
|
|
Highlights
|
|
|
|
Step change in commercial execution drives strong sales growth
across Specialty Medicines and Vaccines
|
|
●
|
Sales
of £29.3 billion +19% AER, +13% CER. Sales +15% AER, +10% CER
excluding COVID-19 solutions
|
●
|
Specialty
Medicines £11.3 billion +37% AER, +29% CER; HIV +20% AER, +12%
CER; Oncology +23% AER, +17% CER; Immuno-inflammation and other
specialty +29% AER +20% CER; COVID-19 solutions (Xevudy) sales £2.3
billion
|
●
|
Vaccines
£7.9 billion +17% AER, +11% CER; Shingrix £3 billion +72% AER, +60%
CER
|
●
|
General
Medicines £10.1 billion +5% AER, +1% CER
|
|
|
Prioritised investment and cost discipline support strong growth in
operating profit and EPS
|
|
●
|
Total
continuing operating margin 21.9%. Total EPS 371.4p > 100%
primarily reflecting the gain from discontinued operations arising
on the demerger of the Consumer Healthcare business. Total
continuing EPS 110.8p +34% AER, +18% CER
|
●
|
Adjusted
operating margin 27.8%. Adjusted operating profit growth +26% AER,
+14% CER. This included a decline in growth from COVID-19 solutions
of approximately 3% AER and CER
|
●
|
Adjusted
EPS 139.7p +27% AER, +15% CER. This included a decline in growth
from COVID-19 solutions of approximately 4% AER, 3%
CER
|
●
|
Full-year
2022 cash generated from operations attributable to continuing
operations £7.9 billion. Full-year free cash flow £3.3
billion
|
|
|
R&D delivery and business development supports future
growth
|
|
●
|
Innovative
pipeline of 69 vaccines and specialty medicines based on science of
the immune system, with 18 in phase III/registration
|
●
|
Potential
best in class RSV older adults candidate vaccine filed in US, EU,
Japan; Shingrix interim
10-year data presented at ID Week 2022; acquisition of Affinivax
completed, including phase II next-generation vaccine for
pneumococcal disease and use of innovative MAPs
technology
|
●
|
Continued
progress in development of long-acting HIV treatments; positive
phase II data on N6LS broadly-neutralising antibody presented at
HIV Glasgow
|
●
|
Pivotal
phase III trials for gepotidacin antibiotic for uncomplicated UTIs
stopped early for efficacy; positive phase IIb data for
bepirovirsen, potential functional cure for chronic hepatitis B;
exclusive licence agreement with Spero Therapeutics for tebipenem
Hbr, late-stage antibiotic for complicated UTIs
|
●
|
Expansion
of depemokimab phase III programme with trials for long-acting IL-5
inhibitor in three additional eosinophil-driven
diseases
|
●
|
4
approvals anticipated in 2023: RSV OA vaccine (US, EU, JP);
Jemperli in 1L endometrial
cancer (US); momelotinib in myelofibrosis (US) and daprodustat in
chronic kidney disease (US, EU)
|
|
|
Confident in outlooks for turnover and Adjusted operating profit
growth
|
|
●
|
2023 Turnover expected to increase between 6% to 8%; Adjusted
operating profit expected to increase between 10% to 12%; EPS
expected to increase between 12% to 15%
|
●
|
2023
Guidance at CER and excludes any contribution from COVID-19
solutions
|
●
|
13.75p
dividend declared for the Q4 2022. No change to expected dividend
from GSK of 56.5p/share for 2023
|
|
Emma Walmsley, Chief Executive Officer, GSK:
“2022
was a landmark year for GSK delivering the step change in
performance we committed to, driven by strong growth in specialty
medicines and vaccines, including record sales for Shingrix. We enter 2023 with good
momentum, underpinning confidence in our ambitious sales and profit
outlooks for 2026. At the same time, we continue to build a
stronger portfolio and pipeline based on infectious diseases and
the science of the immune system, including our potential new RSV
vaccine. This momentum, together
with further targeted business development, means GSK will also be
in a strong position to deliver growth from 2026
onwards.”
|
The Total results
are presented in summary on page 2 and under ‘Financial
performance’ on pages 9 and 22 and Adjusted results
reconciliations are presented on pages 18, 19, 31 and 32. Adjusted
results are a non-IFRS measure excluding discontinued operations
and other adjustments 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 39 and
£% or AER% growth, CER% growth, free cash flow and other
non-IFRS measures are defined on page 67, COVID-19 solutions are
also defined on page 67. GSK provides guidance on an Adjusted
results basis only, for the reasons set out on page 39. All
expectations, guidance and targets regarding future performance and
dividend payments should be read together with ‘Guidance,
assumptions and cautionary statements’ on pages 68 and
69.
|
2022 results
|
|||||||||||
|
|
|
|
|
2022
|
|
|
|
|
|
Q4 2022
|
|
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
29,324
|
|
19
|
|
13
|
|
7,376
|
|
4
|
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
continuing operating profit*
|
6,433
|
|
48
|
|
31
|
|
1,868
|
|
>100
|
|
>100
|
Total
EPS
|
371.4p
|
|
>100
|
|
>100
|
|
37.1p
|
|
98
|
|
75
|
Total
continuing EPS
|
110.8p
|
|
34
|
|
18
|
|
37.2p
|
|
>100
|
|
>100
|
Total
discontinued EPS*
|
260.6p
|
|
>100
|
|
>100
|
|
(0.1)p
|
|
>(100)
|
|
>(100)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
operating profit
|
8,151
|
|
26
|
|
14
|
|
1,595
|
|
21
|
|
5
|
Adjusted
EPS
|
139.7p
|
|
27
|
|
15
|
|
25.8p
|
|
10
|
|
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
generated from operations attributable to continuing
operations
|
7,944
|
|
10
|
|
|
|
2,101
|
|
(37)
|
|
|
Free
cash flow
|
3,348
|
|
1
|
|
|
|
895
|
|
(62)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
The amounts presented in the table
above for continuing operations and Adjusted results excludes the
Consumer Healthcare business discontinued operation. The amounts
presented for discontinued EPS are for the demerger of the Consumer
Healthcare business. The presentation of continuing and
discontinued operations under IFRS 5 are set out on page
52.
|
2023 guidance
|
The
company provides its full-year 2023 guidance at constant exchange
rates (CER). All expectations and full-year growth rates exclude
any contributions from COVID-19 solutions.
|
Turnover is expected to increase between 6 to 8 per
cent
|
Adjusted operating profit is expected to increase between 10
to 12 per cent
|
Adjusted earnings per share is expected to increase between
12 to 15 per cent
|
Due to
the phasing of quarterly results in 2022 and the resulting
comparators, GSK expects turnover and Adjusted operating profit
growth to be slightly lower in the first half of 2023 including a
challenging comparator in Q1 2022 and somewhat higher in the second
half, relative to full-year expectations.
Despite
the recovery of healthcare systems, uncertain economic conditions
prevail across many markets in which GSK operates and we continue
to expect to see variability in performance between
quarters.
This
guidance is supported by the following turnover expectations for
full year 2023 at CER:
|
Specialty Medicines - Expected increase of mid to high
single-digit per cent in turnover
|
Vaccines - Expected increase of mid-teens per cent in
turnover
|
General Medicines - Expected slight decrease in
turnover
|
Adjusted
Operating profit is expected to grow between 10 to 12 per cent at
CER reflecting Cost of sales and R&D increasing at a rate
slightly below turnover, while SG&A is anticipated to increase
at a rate broadly aligned to turnover, reflecting targeted support
for launches and potential launches including the RSV older adult
candidate vaccine. Adjusted earnings per share is expected to
increase between 12 to 15 per cent at CER reflecting favourable net
finance costs and non-controlling interests plus an expected lower
tax rate, at around 15%.
Additional commentary
Dividend
policies and expected pay-out ratios remain unchanged for GSK. The
future dividend policies and guidance regarding the expected
dividend pay-out in 2023 for GSK are provided on page
37.
COVID-19 solutions
Based
on known binding agreements with governments, GSK does not
anticipate any significant COVID-19 pandemic-related sales or
operating profit in 2023. Sales of COVID-19 solutions were
£2.4 billion in 2022 and therefore we expect a reduction in
Turnover growth by approximately 9% and a reduction in Adjusted
Operating profit growth by 6% to 7%. However, the Company continues
to discuss future opportunities to support governments, healthcare
systems, and patients whereby its COVID-19 solutions can address
the emergence of any new COVID-19 variant of concern.
|
All
expectations, guidance and targets regarding future performance and
dividend payments should be read together with ‘Guidance,
assumptions and cautionary statements’ on pages 68 and 69. If
exchange rates were to hold at the closing rates on 27 January 2023
($1.24/£1, €1.14/£1 and Yen 161/£1) for the
rest of 2023, the estimated impact on 2023 Sterling turnover growth
for GSK would be stable and if exchange gains or losses were
recognised at the same level as in 2022, the estimated impact on
2023 Sterling Adjusted Operating Profit growth for GSK would also
be stable.
|
Demerger
of Consumer Healthcare
|
On 18
July 2022, GSK plc separated its Consumer Healthcare business from
the GSK Group to form Haleon, an independent listed company. The
separation was effected by way of a demerger of 80.1% of
GSK’s 68% holding in the Consumer Healthcare business to GSK
shareholders. Following the demerger, 54.5% of Haleon was held in
aggregate by GSK Shareholders, 6.0% remains held by GSK (including
shares received by GSK’s consolidated ESOP trusts) and 7.5%
remains held by certain Scottish Limited Partnerships (SLPs) set up
to provide collateral for a funding mechanism pursuant to which GSK
will provide additional funding for its UK defined benefit Pension
Schemes. The aggregate ownership by GSK (including ownership by the
ESOP trusts and SLPs) after the demerger of 13.5% is measured at
fair value with changes through profit and loss.
The
gain on the demerger for the distributed stake was £7.7
billion which was recognised in the full-year. The asset
distributed was the 54.5% ownership of the Consumer Healthcare
business. The net assets derecognised reflected Consumer Healthcare
transactions up to 18 July 2022 which included pre-separation
dividends declared and settled before 18 July 2022. Those dividends
included: £10.4 billion (£7.1 billion attributable to
GSK) of dividends funded by Consumer Healthcare debt that was
partially on-lent during Q1 2022 and dividends of £0.6 billion
(£0.4 billion attributable to GSK) from available cash
balances. GSK’s share of the pre-separation dividends funded
by debt resulted in a reduction of net debt for GSK on demerger.
The gain on the demerger arising from remeasurement of the retained
stake was £2.4 billion which was recognised in the
full-year.
The
total gain on the demerger of the Consumer Healthcare business for
the full-year was £10.1 billion. In addition, the Profit after
taxation from discontinued operations for the Consumer Healthcare
business from 1 January to 18 July 2022 was £0.6 billion which
increased the Total profit after tax of discontinued operations in
the full-year to £10.7 billion. Following finalisation of the
demerger accounting, an adjustment of £0.5 billion to increase
the gain on the demerger of Consumer Healthcare as disclosed in Q3
2022 from £9.6 billion to £10.1 billion for the full-year
has been recorded retrospectively within the Q3 2022 results. See
page 55 for further details on the demerger of Consumer
Healthcare.
|
Results
presentation
|
A
conference call and webcast for investors and analysts of the
quarterly results will be hosted by Emma Walmsley, CEO, at 11am GMT
on 1 February 2023. 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.
|
Operating performance
summary
|
The
amounts below are from continuing operations unless otherwise
specified.
|
Turnover
|
2022
|
|
Q4 2022
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty
Medicines
|
11,269
|
|
37
|
|
29
|
|
2,681
|
|
(3)
|
|
(11)
|
Vaccines
|
7,937
|
|
17
|
|
11
|
|
2,074
|
|
15
|
|
7
|
General
Medicines
|
10,118
|
|
5
|
|
1
|
|
2,621
|
|
5
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
Operations
|
29,324
|
|
19
|
|
13
|
|
7,376
|
|
4
|
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover growth in 2022 reflected strong performance in all three
product groups. Turnover growth in Q4 2022 was impacted by an
unfavourable comparator due to strong sales of COVID-19 solutions
in Q4 2021. Turnover grew 16% at AER, 10% at CER in 2022 and 17% at
AER, 9% at CER in Q4 2022 excluding COVID-19 solutions sales.
Specialty Medicines included £2,309 million sales of
Xevudy, and double-digit growth of all therapy areas in
2022. Specialty Medicines also saw double digit growth of all
therapy areas in Q4 2022 excluding COVID-19
solutions.
Specialty Medicines
Specialty Medicines growth in 2022 was driven by consistent growth
in all therapy areas. Total Specialty Medicines sales in the
quarter were £2,681 million down 3% at AER, 11% at CER
reflecting strong Xevudy sales in Q4 2021. Specialty Medicines, excluding
sales of Xevudy, were £8,960 million up 23% at AER, 15% at
CER in 2022 and £2,556 million, up 32% at AER, 21% at CER in
Q4 2022.
Vaccines
Vaccines growth in 2022 and in Q4 2022 reflected strong
Shingrix
performance, partially offset by
higher pandemic adjuvant sales in 2021. Vaccines grew 24% at AER,
17% at CER in 2022 and 17% at AER, 9% at CER in Q4 2022, excluding
pandemic adjuvant sales.
General Medicines
In
2022, General Medicines reflected the post pandemic recovery of the
antibiotics market and strong performance of Trelegy in respiratory across all
regions. During Q4 2022 the impact of generic competition in US and
other markets was offset by Trelegy growth in respiratory and the
recovery of the antibiotic market.
Operating profit
2022
Total
operating profit from continuing operations was £6,433 million
compared with £4,357 million in 2021. This included the
£0.9 billion upfront income received from the settlement with
Gilead Sciences, Inc. (Gilead) increased profits on turnover growth
of 13% at CER and fair value gains on investments, partly offset by
higher remeasurement charges for contingent consideration
liabilities. Adjusted operating profit was £8,151 million, 26%
higher at AER and 14% at CER than 2021. The Adjusted operating
margin of 27.8% was 1.5 percentage points higher at AER and 0.3
percentage points higher at CER compared to 2021. This primarily
reflected the impact from low margin COVID-19 solutions sales
(Xevudy). This was offset
by operating leverage from strong sales growth, mix benefit, lower
inventory adjustments and write offs and higher royalty
income.
Q4
2022
Total
operating profit from continuing operations was £1,868 million
compared with £492 million in Q4 2021. The increase primarily
reflected fair value gains on investments, milestone income from
disposals and lower remeasurement charges for contingent
consideration liabilities. Adjusted operating profit was
£1,595 million, 21% higher at AER and 5% at CER than Q4 2021.
The Adjusted operating margin of 21.6% was higher by 3.0 percentage
points at AER and 1.5 percentage points at CER than in Q4 2021.
This reflected the impact from lower sales of COVID-19 solutions,
lower inventory adjustments and write offs in Vaccines as well as a
favourable mix and higher royalty income. This was partly offset by
increased launch investment in SG&A in Specialty
Medicines.
Earnings per share
2022
Total
EPS from continuing operations was 110.8p compared with 82.9p in
2021. This primarily reflected the £0.9 billion upfront income
received from the settlement with Gilead, increased profits from
turnover growth and fair value gains on investments, partly offset
by higher remeasurement charges for contingent consideration
liabilities and an unfavourable comparison due to a credit of
£430 million to Taxation in 2021.
Adjusted
EPS from continuing operations was 139.7p compared with 110.3p in
2021. Operating leverage from strong sales growth, beneficial mix
and lower inventory adjustments and write-offs, higher royalty
income and a lower effective tax rate was partly offset by
increased investment behind launches, higher supply chain, freight
and distribution costs and higher non-controlling
interests.
Q4
2022
Total
EPS from continuing operations was 37.2p compared with 10.6p in Q4
2021. This primarily reflected higher fair value gains on
investments and lower remeasurement charges for contingent
consideration liabilities.
Adjusted
EPS from continuing operations was 25.8p compared with 23.6p in Q4
2021. The reduction primarily reflected the impact from lower sales
of COVID-19 solutions low margin Xevudy and pandemic adjuvant, higher
interest costs and a higher effective tax rate compared to Q4
2021.
Cash flow
2022
Cash
generated from operations attributable to continuing operations for
the year was £7,944 million (2021: £7,249 million). The
increase primarily reflected a significant increase in operating
profit, favourable exchange impact and favourable timing of
collections, partly offset by unfavourable timing of profit share
payments for Xevudy sales,
increased cash contributions to the UK defined benefit pension
schemes, increased contingent consideration payments and a higher
increase in inventory. Cash generated from operations attributable
to discontinued operations for the full year was £932 million
(2021: £1,994 million). Net debt reduced by £2,641
million, partly due to £7,112 million received from demerger
dividends and £3,108 million paid for the acquisitions of
Sierra Oncology, Inc (Sierra) and Affinivax Inc.
(Affinivax).
Q4
2022
Cash
generated from operations attributable to continuing operations for
the quarter was £2,101 million (Q4 2021: £3,329 million).
The decrease primarily reflected unfavourable timing of profit
share payments for Xevudy,
increased cash contributions to the UK defined benefit pension
schemes and unfavourable timing of returns and rebates partly offset by an increase in
operating profit. Cash generated from operations attributable to
discontinued operations for the quarter was £4 million (Q4
2021: £872 million).
Profit/(loss) and earnings per share from discontinued
operations
2022
Profit
after taxation from discontinued operations amounted to
£10,700 million (2021: £1,580 million). This includes
£10,084 million for the gain arising on the demerger of
Consumer Healthcare split between the amount distributed to
shareholders on demerger of £7,651 million and profit after
taxation on discontinued operations for the retained stake of
£2,433 million. In addition, the Profit after taxation from
discontinued operations for the Consumer Healthcare business was
£621 million (2021: £1,580 million).
EPS
from discontinued operations was 260.6p, compared with 26.7p in
2021. The increase primarily reflected the gain arising on the
demerger of Consumer Healthcare recognised in Profit after taxation
for discontinued operations.
Q4
2022
The
loss after taxation from discontinued operations amounted to
£5 million (Q4 2021: profit of £510
million).
Loss
per share from discontinued operations was (0.1)p compared with EPS
of 8.1p in Q4 2021.
Total earnings per share
2022
Total
EPS was 371.4p compared with 109.6p in 2021. The increase primarily
reflected the profit after taxation for discontinued operations
recognised on the Consumer Healthcare business demerger, upfront
income received from the settlement with Gilead, increased profits
and fair value gains on investments, partly offset by higher
remeasurement charges for contingent consideration liabilities and
an unfavourable comparison due to a credit of £397 million to
Taxation in 2021.
Q4
2022
Total
EPS was 37.1p compared with 18.7p in Q4 2021. The increase
primarily reflected higher fair value gains on investments and
lower remeasurement charges for contingent consideration
liabilities.
|
Q4 2022 pipeline highlights (since 2 November
2022)
|
|
Medicine/vaccine
|
Trial (indication, presentation)
|
Event
|
Regulatory approvals or other regulatory action
|
Rotarix
|
Rotavirus, liquid formulation
|
Regulatory approval (US)
|
VidPrevtyn Beta (Sanofi)
|
COVID-19
|
Regulatory approval (EU)
|
|
Triumeq
|
HIV (paediatric)
|
Positive CHMP opinion (EU)
|
|
Regulatory submissions or acceptances
|
momelotinib
|
MOMENTUM (myelofibrosis with anaemia)
|
Regulatory acceptance (EU)
|
cabotegravir
|
Pre-exposure prophylaxis, long-acting injectable
|
Regulatory submission (CN)
|
|
Phase III data readouts or other significant events
|
Blenrep
|
DREAMM-3 (3L+ multiple myeloma)
|
Phase III data readout, did not meet primary endpoint
|
Jemperli
|
RUBY (1L endometrial cancer)
|
Positive phase III data readout (interim analysis)
|
|
gepotidacin
|
EAGLE (uncomplicated urinary tract infection)
|
Positive phase III data readout (interim analysis)
|
|
GSK3036656 (leucyl t-RNA inhibitor)
|
Tuberculosis
|
Positive phase IIa data readout
|
|
Benlysta
|
Systemic sclerosis
|
Orphan Drug Designation granted (US)
|
Anticipated news flow
|
Timing
|
Medicine/vaccine
|
Trial (indication, presentation)
|
Event
|
H1 2023
|
bepirovirsen
|
B-Together (hepatitis B virus)
|
Phase IIb data readout
|
daprodustat
|
ASCEND (anaemia of chronic kidney disease)
|
Regulatory decision
(US, EU)
|
|
Nucala
|
Severe asthma
|
Regulatory submission (CN)
|
|
momelotinib
|
MOMENTUM (myelofibrosis with anaemia)
|
Regulatory decision (US)
|
|
Jemperli
|
RUBY (1L endometrial cancer)
|
Regulatory submission
(US, EU)
|
|
gepotidacin
|
EAGLE (uncomplicated urinary tract infection)
|
Regulatory submission (US)
|
|
MenABCWY (gen 1) vaccine candidate
|
Meningitis ABCWY
|
Phase III data readout
|
|
RSV older adult vaccine candidate
|
RSV, older adults aged 60+ years
|
Regulatory decision (US)
|
|
Shingrix
|
Shingles, at-risk adults aged 18+ years
|
Regulatory decision (JP)
|
|
SKYCovione COVID-19
vaccine
|
COVID-19
|
Regulatory decision (EU)
|
|
H2 2023
|
Nucala
|
Nasal polyposis
|
Regulatory submission
(CN, JP)
|
Blenrep
|
DREAMM-8 (2L+ multiple myeloma)
|
Phase III data readout
|
|
Blenrep
|
DREAMM-7 (2L+ multiple myeloma)
|
Phase III data readout
|
|
Blenrep
|
DREAMM-8 (2L+ multiple myeloma)
|
Regulatory submission
(US, EU)
|
|
Blenrep
|
DREAMM-7 (2L+ multiple myeloma)
|
Regulatory submission
(US, EU)
|
|
Jemperli
|
RUBY (1L endometrial cancer)
|
Regulatory decision
(US)
|
|
Zejula
|
FIRST (1L maintenance ovarian cancer)
|
Phase III data readout
|
|
cabotegravir
|
Pre-exposure prophylaxis, long-acting injectable
|
Regulatory decision (EU)
|
|
Vocabria
|
HIV
|
Regulatory decision (CN)
|
|
gepotidacin
|
EAGLE (urogenital gonorrhoea)
|
Phase III data readout
|
|
gepotidacin
|
EAGLE (uncomplicated urinary tract infection)
|
Regulatory submission (EU)
|
|
MenABCWY (gen 1) vaccine candidate
|
Meningitis ABCWY
|
Regulatory submission (US)
|
|
MenABCWY (gen 2) vaccine candidate
|
Meningitis ABCWY
|
Phase II data readout
|
|
RSV older adult vaccine candidate
|
RSV, older adults aged
60+ years
|
Regulatory decision
(EU, JP)
|
|
RSV older adult vaccine candidate
|
RSV, older adults aged
50-59 years
|
Phase III data readout
|
|
RSV older adult vaccine candidate
|
RSV, older adults aged
50-59 years
|
Regulatory submission
(US, EU, JP)
|
|
2024
|
linerixibat
|
GLISTEN (cholestatic pruritus in primary biliary
cholangitis)
|
Phase III data readout
|
linerixibat
|
GLISTEN (cholestatic pruritus in primary biliary
cholangitis)
|
Regulatory submission
(US, EU)
|
|
Nucala
|
Severe asthma
|
Regulatory decision (CN)
|
|
Nucala
|
Nasal polyposis
|
Regulatory decision (JP)
|
|
Nucala
|
MATINEE (chronic obstructive pulmonary disease)
|
Phase III data readout
|
|
Nucala
|
MATINEE (chronic obstructive pulmonary disease)
|
Regulatory submission
(US, EU, CN, JP)
|
|
Blenrep
|
DREAMM-8 (2L+ multiple myeloma)
|
Regulatory decision
(US, EU)
|
|
Blenrep
|
DREAMM-7 (2L+ multiple myeloma)
|
Regulatory decision (EU)
|
|
cobolimab
|
COSTAR (NSCLC)
|
Phase III data readout
|
|
Jemperli
|
RUBY (1L endometrial cancer)
|
Regulatory decision
(EU)
|
|
momelotinib
|
MOMENTUM (myelofibrosis with anaemia)
|
Regulatory decision (EU)
|
|
Zejula
|
ZEAL (1L maintenance NSCLC)
|
Phase III data readout
|
|
gepotidacin
|
EAGLE (uncomplicated urinary tract infection)
|
Regulatory decision
(US, EU)
|
|
gepotidacin
|
EAGLE (uncomplicated urinary tract infection)
|
Regulatory submission
(JP)
|
|
gepotidacin
|
EAGLE (urogenital gonorrhoea)
|
Regulatory submission
(US, EU)
|
|
MenABCWY (gen 1) vaccine candidate
|
Meningitis ABCWY
|
Regulatory decision (US)
|
|
Pneumococcal 24 valent (MAPS) vaccine candidate
|
Pneumococcal (paediatric)
|
Phase II data readout
|
|
RSV older adult vaccine candidate
|
RSV, older adults aged
50-59 years
|
Regulatory decision (US, EU, JP)
|
Refer to pages 58 to 66 for further details on several key
medicines and vaccines in development by therapy
area.
|
Contents
|
Page
|
|
|
Q4 2022
R&D pipeline highlights
|
6
|
Financial
performance – 2022
|
9
|
Financial
performance – three months to 31 December 2022
|
22
|
Cash
generation
|
35
|
Returns
to shareholders
|
37
|
Total
and Adjusted results
|
39
|
Income
statement
|
41
|
Statement
of comprehensive income
|
42
|
Balance
sheet
|
46
|
Statement
of changes in equity
|
47
|
Cash
flow statement – year ended 31 December 2022
|
48
|
Segment
information
|
49
|
Legal
matters
|
51
|
Additional
information
|
52
|
Reconciliation
of cash flow to movements in net debt
|
57
|
Net
debt analysis
|
57
|
Free
cash flow reconciliation
|
57
|
R&D
commentary
|
58
|
Reporting
definitions
|
67
|
Guidance,
assumptions and cautionary statements
|
68
|
GSK plc (LSE/NYSE:GSK) is a global biopharma company with a purpose
to unite science, technology, and talent to get ahead of disease
together. Find out more at www.gsk.com.
|
GSK enquiries:
|
|
|
|
Media
|
Tim
Foley
|
+44 (0)
20 8047 5502
|
(London)
|
|
Kathleen
Quinn
|
+1 202
603 5003
|
(Washington)
|
|
|
|
|
Investor
Relations
|
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
|
+1 215
751 4855
|
(Philadelphia)
|
|
|
|
|
|
|
|
|
Registered in England & Wales:
No.
3888792
|
|||
|
|||
Registered Office:
980 Great West
Road
Brentford,
Middlesex
TW8
9GS
|
Financial performance –
2022
|
Total results
|
The
Total results for the Group are set out below.
|
|
2022
£m
|
|
2021(a)
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
Turnover
|
29,324
|
|
24,696
|
|
19
|
|
13
|
|
|
|
|
|
|
|
|
Cost of
sales
|
(9,554)
|
|
(8,163)
|
|
17
|
|
16
|
|
|
|
|
|
|
|
|
Gross
profit
|
19,770
|
|
16,533
|
|
20
|
|
12
|
|
|
|
|
|
|
|
|
Selling,
general and administration
|
(8,372)
|
|
(7,070)
|
|
18
|
|
13
|
Research
and development
|
(5,488)
|
|
(5,019)
|
|
9
|
|
4
|
Royalty income
|
758
|
|
417
|
|
82
|
|
81
|
Other
operating expense
|
(235)
|
|
(504)
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
6,433
|
|
4,357
|
|
48
|
|
31
|
|
|
|
|
|
|
|
|
Finance
income
|
76
|
|
14
|
|
|
|
|
Finance
expense
|
(879)
|
|
(769)
|
|
|
|
|
Loss on
disposal of interest in associates
|
-
|
|
(36)
|
|
|
|
|
Share
of after tax (loss)/profits of associates and joint
ventures
|
(2)
|
|
33
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
5,628
|
|
3,599
|
|
56
|
|
37
|
|
|
|
|
|
|
|
|
Taxation
|
(707)
|
|
(83)
|
|
|
|
|
Tax rate %
|
12.6%
|
|
2.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from continuing operations
|
4,921
|
|
3,516
|
|
40
|
|
23
|
|
|
|
|
|
|
|
|
Profit
after taxation from discontinued operations and
other
gains/(losses) from the demerger
|
3,049
|
|
1,580
|
|
|
|
|
Remeasurement
of discontinued operations
distributed
to shareholders on demerger
|
7,651
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from discontinued operations
|
10,700
|
|
1,580
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
Total Profit after taxation for the period
|
15,621
|
|
5,096
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling interests
from
continuing operations
|
460
|
|
200
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to shareholders from
continuing
operations
|
4,461
|
|
3,316
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling interests
from
discontinued operations
|
205
|
|
511
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to shareholders from
discontinued
operations
|
10,495
|
|
1,069
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,621
|
|
5,096
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
Total
Profit attributable to non-controlling interests
|
665
|
|
711
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Profit attributable to shareholders
|
14,956
|
|
4,385
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,621
|
|
5,096
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share from continuing operations
|
110.8p
|
|
82.9p
|
|
34
|
|
18
|
|
|
|
|
|
|
|
|
Earnings
per share from discontinued operations
|
260.6p
|
|
26.7p
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
Total earnings per share
|
371.4p
|
|
109.6p
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
(a)
|
The 2021 comparative results have
been restated on a consistent basis from those previously published
to reflect the demerger of the Consumer Healthcare
business
(see page 34) and the impact of
Share Consolidation implemented on 18 July 2022 (see page
56).
|
Adjusted results
|
The
Adjusted results for the Group are set out below. Adjusted results
are from continuing operations and excludes the Consumer Healthcare
business (see details on page 55). Reconciliations between Total
results and Adjusted results for 2022 and 2021 are set out on pages
18 to 19.
|
|
2022
£m
|
|
%
of
turnover
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
Turnover
|
29,324
|
|
100
|
|
19
|
|
13
|
|
|
|
|
|
|
|
|
Cost of
sales
|
(8,741)
|
|
(29.8)
|
|
19
|
|
18
|
Selling,
general and administration
|
(8,128)
|
|
(27.7)
|
|
20
|
|
15
|
Research
and development
|
(5,062)
|
|
(17.3)
|
|
12
|
|
6
|
Royalty
income
|
758
|
|
2.6
|
|
82
|
|
81
|
|
|
|
|
|
|
|
|
Adjusted
operating profit
|
8,151
|
|
27.8
|
|
26
|
|
14
|
|
|
|
|
|
|
|
|
Adjusted
profit before tax
|
7,358
|
|
|
|
27
|
|
15
|
Adjusted
profit after tax
|
6,220
|
|
|
|
28
|
|
16
|
Adjusted
profit attributable to shareholders
|
5,625
|
|
|
|
27
|
|
15
|
Adjusted
earnings per share
|
139.7p
|
|
|
|
27
|
|
15
|
|
|
|
|
|
|
|
|
Operating profit by segment
|
|
2022
£m
|
|
%
of
turnover
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
Commercial
Operations
|
13,590
|
|
46.3
|
|
19
|
|
10
|
Research
and Development
|
(5,060)
|
|
|
|
11
|
|
5
|
|
|
|
|
|
|
|
|
Segment
profit
|
8,530
|
|
29.1
|
|
24
|
|
13
|
Corporate
& other unallocated costs
|
(379)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
operating profit
|
8,151
|
|
27.8
|
|
26
|
|
14
|
|
|
|
|
|
|
|
|
Turnover
|
Commercial
Operations
|
|
2022
|
||||
|
|
|
|
|
|
|
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
HIV
|
5,749
|
|
20
|
|
12
|
Oncology
|
602
|
|
23
|
|
17
|
Immuno-inflammation,
respiratory and other
|
2,609
|
|
29
|
|
20
|
|
|
|
|
|
|
|
8,960
|
|
23
|
|
15
|
Pandemic
|
2,309
|
|
>100
|
|
>100
|
|
|
|
|
|
|
Specialty Medicines
|
11,269
|
|
37
|
|
29
|
|
|
|
|
|
|
Meningitis
|
1,116
|
|
16
|
|
11
|
Influenza
|
714
|
|
5
|
|
(4)
|
Shingles
|
2,958
|
|
72
|
|
60
|
Established
Vaccines
|
3,085
|
|
4
|
|
-
|
|
|
|
|
|
|
|
7,873
|
|
24
|
|
17
|
Pandemic
Vaccines
|
64
|
|
(86)
|
|
(86)
|
|
|
|
|
|
|
Vaccines
|
7,937
|
|
17
|
|
11
|
|
|
|
|
|
|
Respiratory
|
6,548
|
|
8
|
|
3
|
Other
General Medicines
|
3,570
|
|
(1)
|
|
(2)
|
|
|
|
|
|
|
General Medicines
|
10,118
|
|
5
|
|
1
|
|
|
|
|
|
|
Commercial Operations
|
29,324
|
|
19
|
|
13
|
|
|
|
|
|
|
US
|
14,542
|
|
22
|
|
10
|
Europe
|
6,348
|
|
18
|
|
19
|
International
|
8,434
|
|
14
|
|
14
|
|
|
|
|
|
|
Commercial Operations by region
|
29,324
|
|
19
|
|
13
|
|
|
|
|
|
|
Total
turnover in 2022 was £29,324 million, up 19% at AER, 13% at
CER, reflecting strong performance in all three product groups.
Commercial Operations turnover, excluding COVID-19 solution sales,
grew 16% at AER, 10% at CER. Specialty Medicines included
£2,309 million sales of Xevudy, and double-digit growth across
all therapy areas. Vaccines growth reflected strong Shingrix and Meningitis performance,
partially offset by pandemic adjuvant
sales in 2021. General Medicines reflected the recovery of
the antibiotics market and the strong performance of Trelegy in respiratory across all
regions.
Specialty Medicines
Specialty
Medicines sales were £11,269 million, up 37% at AER, 29% at
CER, driven by consistent double- digit growth in all therapy
areas. Specialty Medicines, excluding sales of Xevudy, were £8,960 million up 23%
at AER, 15% at CER.
HIV
HIV
sales were £5,749 million with growth of 20% at AER,12% at
CER. The performance benefited from strong patient demand for the
new HIV medicines (Dovato,
Cabenuva, Juluca, Rukobia and Apretude), which contributed
approximately three quarters of the growth. US pricing
favourability and year-end inventory build together contributed one
third of the growth which was partially offset by International
tender decline.
New HIV
products delivered sales of over two billion to £2,474
million, up 78% at AER, 67% at CER, representing 43% of the total
HIV portfolio compared to 29% last year. Growth was primarily
driven by sales of Dovato
and Cabenuva. Dovato recorded sales of £1,375
million up 75% at AER and 65% at CER and Cabenuva, the first long acting
injectable for the treatment of HIV-1 infection, recorded sales of
£340 million. Apretude, the first long acting
injectable for the prevention of HIV-1 delivered sales of £41
million.
Oncology
Oncology
sales were £602 million, up 23% at AER, 17% at CER.
Zejula sales of £463
million were up 17% at AER, 12% at CER driven by the first line
indication, but with diagnosis and treatment rates continuing to be
impacted by the pandemic especially in the US. Sales of
Blenrep of £118
million grew 33% at AER, 25% at CER, and included the impact of
withdrawal from US market in Q4 2022.
Immuno-inflammation, Respiratory and Other
Immuno-inflammation,
Respiratory and Other sales were £2,609 million up 29% at AER,
20% at CER on strong performance of Benlysta and Nucala. Benlysta sales were £1,146
million, up 31% at AER, 20% at CER, representing strong underlying demand in US and
worldwide. Nucala
sales were £1,423 million, up 25% at AER, 18% at CER,
reflecting continued strong patient demand and the launch of
additional indications.
Pandemic
Sales
of Xevudy were £2,309
million, compared to £958 million sales in 2021. Sales were
delivered in all regions, comprising £828 million in the US,
£456 million in Europe, and £1,025 million in
International.
Vaccines
Vaccines
turnover was £7,937 million, up 17% at AER, 11% at CER in
total, and up 24% at AER, 17% at CER excluding pandemic adjuvant
sales. The performance reflected a favourable comparator, which was
impacted by COVID-19 related disruptions in several markets
primarily in H1 2021, and strong commercial execution of Shingrix,
particularly in the US and Europe.
Meningitis
Meningitis
vaccines sales grew 16% at AER, 11% at CER to £1,116 million
mainly driven by Bexsero up
16% at AER, 12% at CER to £753 million resulting from higher
CDC (Center for Disease Control) demand and increased share in the
US. Menveo sales were also
up 27% AER, 18% CER to £345 million, primarily driven by
post-pandemic vaccination catch-up and higher public demand in
International, together with favourable pricing mix and share gain
in the US.
Shingles
Shingrix sales grew 72% at AER, 60% at CER to £2,958
million. All regions grew significantly reflecting post-pandemic
rebound, strong uptake and new market launches with more than half
of the growth contributed from outside of the US. In the US,
Shingrix grew 46% at AER,
32% at CER to £1,964 million due to higher non-retail and
retail demand and strong commercial execution. Germany and China
contributed strongly to the Shingrix growth. Shingrix was launched in 9 markets
during 2022 and is now available in 26 countries.
Influenza
Fluarix/FluLaval sales grew by 5% AER but decreased 4% CER
to £714 million, primarily driven by lower post-pandemic
demand in Europe and the US, partly offset by lower expected
returns in the US.
Established
Vaccines
Established
Vaccines grew 4% AER but was stable at CER to £3,085 million
mainly resulting from supply constraints in MMR/V vaccines and
lower tender demand in International for Synflorix. This was offset by hepatitis
vaccines demand rebound in the US and Europe and Boostrix
post-pandemic demand recovery and increased share in the
US.
Pandemic
Vaccines
Pandemic
Vaccines decreased 86% AER and CER primarily reflecting comparison
to 2021 pandemic adjuvant sales to the US and Canadian governments
partly offset by GSK’s share of 2022 contracted European
volumes related to the COVID-19 booster vaccine developed through a
collaboration with Sanofi Pasteur (Sanofi).
General Medicines
General
Medicines sales in the year were £10,118 million, up 5% at
AER, 1% at CER, with the impact of generic competition in US,
Europe and Japan offset by Trelegy growth in respiratory and the
post-pandemic rebound of the antibiotic market since H2 2021, in
Other General Medicines.
Respiratory
Respiratory
sales were £6,548 million, up 8% at AER, 3% at CER. The
performance was driven by Trelegy sales of £1,729 million,
up 42% AER, 32% CER, including strong growth across all regions.
Advair/Seretide sales of
£1,159 million decreased 15% at AER, 17% at CER predominantly
reflecting the adverse impact of generic competition, with growth
in certain International markets due to targeted promotion
offsetting the decrease.
Other General
Medicines
Other
General Medicines sales were £3,570 million, decreasing 1% at
AER, 2% at CER. Augmentin
sales were £576 million, up 35% at AER, 38% at CER, reflecting
the post pandemic rebound of the antibiotic market since H2 2021 in
the International and Europe regions. This partially offsets the
ongoing adverse impact of generic competition, and approximately
two percentage points impact at AER and CER from the divestment of
cephalosporin products in Q4 2021.
By
Region
US
In the
US, sales were £14,542 million, up 22% at AER, 10% at CER.
Sales adjusted for COVID-19 solutions were up 24% AER, 12% CER.
Sales of Xevudy were
£828 million.
In
Specialty, HIV sales of £3,756 million were up 30% at AER, 17%
at CER. Growth benefited from strong patient demand for all new HIV
products, pricing favourability and year-end inventory build. New
HIV medicines (Dovato, Cabenuva,
Juluca, Rukobia and Apretude) sales were £1,685
million up 88% at AER, 70% at CER. Nucala in respiratory and Benlysta in immunology both continued
to grow double-digit and reflected ongoing and strong patient
demand. Oncology sales increased 14% at AER, 3% at CER with
diagnosis and treatment rates continuing to be impacted by the
pandemic for Zejula, and
the withdrawal of Blenrep
from the US market in Q4 2022.
Vaccine
sales were £4,243 million, up 22% at AER, 10% at CER,
excluding the impact of pandemic adjuvant sales in 2021, sales
increased 31% at AER, 18% at CER. The performance was primarily
driven by Shingrix sales of
£1,964 million up 46% at AER, 32% at CER, mostly due to higher
non-retail and retail demand and strong commercial execution.
Demand recovery in Established Vaccines and share gains in
Meningitis vaccines also contributed to growth.
General
Medicines sales were £3,572 million up 10% at AER down 1% at
CER. Trelegy was up 47% at
AER, 32% at CER reflecting increased patient demand and growth of
the single inhaler triple therapy market, and Flovent grew on launch of authorised
generics in the year. Overall, there was a three-percentage point
reduction in growth of US General Medicines due to prior period
Returns and Rebates (RAR) adjustments in the year.
Europe
In
Europe, sales were £6,348 million, up 18% at AER, 19% at CER,
including COVID-19 solution sales of £513 million contributing
8 percentage points of growth at AER and CER.
In
Specialty Medicines, HIV sales were £1,310 million up 10% at
AER, 10% at CER primarily driven by strong patient demand for
Dovato, Cabenuva and
Juluca. Dovato delivered sales of £478
million, Juluca £127
million and Cabenuva
£40 million. Benlysta
in immunology, Nucala in
respiratory, and Oncology medicines Zejula, Blenrep and Jemperli all continued to show strong
double-digit growth.
Vaccine
sales were £1,884 million, up 31% at AER, 32% at CER. The
performance was driven by Shingrix sales of £688 million,
>100% at AER and CER, particularly in Germany. Pandemic adjuvant
sales of £57 million contributed four percentage points of
growth at AER and CER.
General
Medicines sales of £2,079 million decreased 3% at AER and CER,
reflecting the ongoing impact of generic competitive pressures on
Seretide and the divestment
in Q4 2021 of cephalosporin products which caused one percentage
point of drag on growth at AER and CER. This was partly offset,
however, by strong demand for Trelegy and the growth of Augmentin following the post-pandemic
rebound of the antibiotic market since H2 2021.
International
International
sales were £8,434 million, up 14% at AER and CER, including
Xevudy sales of £1,025
million. Sales grew 7% AER and 6% CER excluding sales of COVID-19
solutions.
In
Specialty, HIV sales were £683 million, stable at AER and
decreased 3% at CER, primarily driven by tender decline. Excluding
tenders, International grew driven by strong Dovato growth. Combined Tivicay and Triumeq sales were £506 million,
down 12% at AER and 15% at CER. Nucala sales of £242 million grew
24% at AER and 28% at CER reflecting strong market growth and
patient uptake. Benlysta
sales of £114 million grew 44% at AER, 43% at CER reflecting
growth in biological market in Japan and inclusion on China’s
National Reimbursement Drug List.
Vaccine
sales were £1,810 million, down 3% at AER, 5% at CER,
reflecting an 11 percentage point drag at AER and CER from COVID-19
vaccine adjuvant sales in 2021. Growth excluding COVID-19 solutions
was driven by strong Shingrix take-up in China, Canada and
Japan more than offsetting the impact of supply constraints in
MMR/V vaccines and lower Synflorix tender demand across several
markets.
General
Medicines sales were £4,467 million up 5% at AER and CER.
Respiratory sales of £1,955 million increased 10% at AER, 9%
at CER, with Trelegy sales
up 47% at AER, 48% at CER reflecting strong demand and inclusion on
China’s National Reimbursement Drug List. Sales of
Advair/Seretide were up 3%
at AER, 1% at CER with the adverse impact of generic competition
offset by growth in certain markets due to targeted promotion.
Other General Medicines sales of £2,512 million increased 1%
at AER, 2% at CER, and reflected growth of Augmentin following the post-pandemic
rebound of the antibiotic market since H2 2021, partially offset by
generic competition and price reductions in certain
markets.
|
Operating
performance
|
Cost of sales
Total
cost of sales as a percentage of turnover was 32.6%, 0.5 percentage
points lower at AER and 0.9 percentage points higher in CER terms
than 2021.
Adjusted
cost of sales as a percentage of turnover was 29.8%, 0.1 percentage
points higher at AER and 1.3 percentage points higher at CER
compared with 2021. This primarily reflected higher sales of lower
margin Xevudy compared to
2021 which included higher margin pandemic adjuvant sales,
increasing cost of sales margin by 2.5 percentage points at AER and
CER, as well as the impact of increased commodity prices and
freight costs. This was partially offset by a favourable mix
primarily from increased sales of Shingrix in the US and Europe and
increased sales of HIV medicines in the US, lower inventory
adjustments and write offs in Vaccines and continued contribution
from restructuring savings.
Selling, general and administration
Total
SG&A costs as a percentage of turnover were 28.6%, 0.1
percentage points lower at AER and stable at CER compared to 2021.
This included a reduction in restructuring charges.
Adjusted
SG&A costs as a percentage of turnover were 27.7%, 0.4
percentage points higher at AER and 0.5 percentage points higher at
CER than in 2021. Adjusted SG&A costs increased 20% at AER, 15%
at CER which primarily reflected an increased level of launch
investment in Specialty Medicines particularly HIV and Vaccines
including Shingrix to drive
post-pandemic recovery demand and support market expansion. The
growth in Adjusted SG&A also reflected an unfavourable
comparison to a beneficial legal settlement in 2021 as well as
impairment provisions relating to Russia and Ukraine. This growth
was partly offset by the continuing benefit of restructuring and
tight control of ongoing costs.
Research and development
Total
R&D expenditure was £5,488 million up 9% at AER, 4% at
CER. This included amortisation and impairments.
Adjusted
R&D expenditure in the full-year increased by 12% at AER, and
6% at CER, to £5,062 million. This reflected continued
increased investment across Vaccines clinical development,
including investments into our mRNA technology platforms, continued
investment in the late-stage portfolio and several early discovery
programmes, as well as expenditure related to our recent
acquisition of Affinivax, Inc (Affinivax).
In
addition, in Specialty Medicines, the level of R&D investment
increased to support the phase III respiratory programme for
depemokimab, a potential new medicine to treat severe asthma, and
bepirovirsen, our study in chronic hepatitis B, in preparation for
the start of the phase III trial. In Oncology, investment increased
in our early-stage immuno-oncology assets and in momelotinib, our
potential new treatment of myelofibrosis patients with anaemia,
acquired as part of the recent Sierra Oncology acquisition. These
increases in investment were offset by decreases related to the
completion of several late-stage clinical development programmes
and reduced R&D investment in COVID-19 pandemic solutions
versus 2021.
Royalty income
Royalty
income was £758 million (2021: £417 million), up 82% at
AER, 81% at CER, the increase primarily reflecting royalty income
from Gilead under the settlement and licensing agreement with
Gilead announced on 1 February 2022 and Gardasil royalty income
increasing to £446 million due to higher sales.
|
Other operating income/(expense)
Net
other operating expense was £235 million (2021: £504
million) reflecting accounting charges of £1,726 million
(2021: £1,101 million) arising from the remeasurement of
contingent consideration liabilities and the liabilities for the
Pfizer, Inc. (Pfizer) put option and Pfizer and Shionogi & Co.
Ltd (Shionogi) preferential dividends in ViiV Healthcare. This
included a remeasurement charge of £1,431 million (2021:
£1,026 million) for the contingent consideration liability due
to Shionogi, including the unwinding of the discount for £410
million and a charge for £1,021 million primarily from changes
to exchange rates as well as adjustments to sales forecasts. This
was partly offset by £0.9 billion upfront income received from
the settlement with Gilead, fair value gain on investments
including £229 million on the retained stake in Haleon
reflecting an increase in share price since listing and milestone
income from disposals.
|
Operating profit
Total
operating profit from continuing operations was £6,433 million
compared with £4,357 million in 2021. This included the
£0.9 billion upfront income received from the settlement with
Gilead, increased profits on turnover growth of 19% at AER, 13% at
CER and fair value gains on investments including £229 million
on the retained stake in Haleon, partly offset by higher
remeasurement charges for contingent consideration liabilities.
Adjusted operating profit was £8,151 million, 26% higher at
AER and 14% at CER than 2021 on a turnover increase of 13% at CER.
The Adjusted operating margin of 27.8% was 1.5 percentage points
higher at AER and 0.3 percentage points higher at CER compared to
2021. This primarily reflected the impact from low margin COVID-19
solutions sales (Xevudy),
which reduced Adjusted Operating profit growth by 3% AER and CER
and reduced the Adjusted operating margin by approximately 1.4
percentage points at AER and approximately 1.3 percentage points at
CER. This was offset by operating leverage from strong sales
growth, mix benefit, lower inventory adjustments and write offs and
higher royalty income.
Contingent
consideration cash payments 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 2022 amounted to £1,137 million (2021: £856 million).
These included cash payments made to Shionogi of £1,100
million (2021: £826 million).
Adjusted operating profit by business
Commercial
Operations operating profit was £13,590 million, up 19% at AER
and 10% at CER on a turnover increase of 13% at CER. The operating
margin of 46.3% was 0.1 percentage points lower at AER, 1.2
percentage points lower at CER than in 2021. This primarily
reflected strong sales of lower margin Xevudy, increased investment behind
launches in Specialty Medicines including HIV and Vaccines plus
higher commodity, freight and distribution costs as well as an
adverse comparison to a favourable legal settlement in 2021. This
was partly offset by leverage from strong sales growth, mix and
lower inventory adjustments and write-offs, continued tight control
of ongoing costs, benefits from continued restructuring and
increased royalty income from Biktarvy and Gardasil
sales.
R&D
segment operating expenses were £5,060 million, up 11% at AER,
5% at CER, primarily reflecting increased investment in Vaccines
including priority investments for mRNA, late stage portfolio and
expenditure from the acquisition of Affinivax and in Specialty
Medicines in early stage HIV and depemokimab. This was partly
offset by decreases related to the completion of several late-stage
clinical development programmes and reduced R&D investment in
COVID-19 pandemic solutions versus 2021.
Net finance costs
Total
net finance costs were £803 million compared with £755
million in 2021. Adjusted net finance costs were £791 million
compared with £752 million in 2021. The increase is mainly
driven by costs associated with the Sterling Notes repurchase in Q4
2022 and higher interest on tax offset by increased interest income
due to higher interest rates and larger cash balances as a result
of the Consumer Healthcare demerger.
Share of after tax profits of associates and joint
ventures
The
share of after tax loss of associates and joint ventures was
£2 million (2021: £33 million share of profit). In 2021,
the Group also reported a net loss on disposal of interests in
associates of £36 million, primarily driven by a loss on
disposal of our interest in the associate Innoviva Inc.
(Innoviva).
Taxation
The
charge of £707 million represented an effective tax rate on
Total results of 12.6% (2021: 2.3%) and reflected the different tax
effects of the various Adjusting items. Included in 2021 was a
credit of £430 million resulting from the revaluation of
deferred tax assets following enactment of the proposed change of
UK corporation tax rates from 19% to 25%. Tax on Adjusted profit
amounted to £1,138 million and represented an effective
Adjusted tax rate of 15.5% (2021: 15.9%).
Issues
related to taxation are described in Note 14,
‘Taxation’ in the Annual Report 2021. The Group
continues to believe it has made adequate provision for the
liabilities likely to arise from periods that are open and not yet
agreed by relevant tax authorities. The ultimate liability for such
matters may vary from the amounts provided and is dependent upon
the outcome of agreements with relevant tax
authorities.
Non-controlling interests
The
allocation of Total profit from continuing operations to
non-controlling interests amounted to £460 million (2021:
£200 million). The increase was primarily due to an increased
allocation of ViiV Healthcare profits of £416 million (2021:
£197 million), including the Gilead upfront settlement income
partly offset by increased credits for remeasurement of contingent
consideration liabilities, as well as higher net profits in some of
the Group’s other entities with non-controlling
interests.
The
allocation of Adjusted earnings from continuing operations to
non-controlling interests amounted to £595 million (2021:
£441 million). The increase in allocation primarily reflected
an increased allocation of ViiV Healthcare profits of £551
million (2021: £438 million), as well as higher net profits in
some of the Group’s other entities with non-controlling
interests.
Earnings per share from continuing operations
Total
EPS from continuing operations was 110.8p compared with 82.9p in
2021. This primarily reflected the £0.9 billion upfront income
received from the settlement with Gilead, increased profits on
turnover growth of 13% at CER and fair value gains on investments
including the retained stake in Haleon, partly offset by higher
remeasurement charges for contingent consideration liabilities and
an unfavourable comparison due to a credit of £325 million to
Taxation in Q2 2021 resulting from the revaluation of deferred tax
assets.
Adjusted
EPS was 139.7p compared with 110.3p in 2021, up 27% at AER, 15% at
CER on a 13% CER turnover increase. Operating leverage from growth
in sales of Specialty Medicines including HIV and Vaccines,
beneficial mix and lower inventory adjustments and write-offs,
higher royalty income and a lower effective tax rate was partly
offset by increased investment behind launches in Specialty
Medicines including HIV and Vaccines plus higher supply chain
costs, freight and distribution costs and higher non-controlling
interests. Growth in lower margin COVID-19 solutions sales reduced
Adjusted EPS growth by 4% AER and 3% CER.
Profit and earnings per share from discontinued
operations
Discontinued
operations include the Consumer Healthcare business and certain
Corporate costs directly attributable to the Consumer Healthcare
business. Profit after taxation from discontinued operations
amounted to £10,700 million (2021: £1,580 million). This
includes £10,084 million for the gain arising on the demerger
of Consumer Healthcare split between the amount distributed to
shareholders on demerger of £7,651 million and profit after
taxation on discontinued operations for the retained stake of
£2,433 million. In addition, the Profit after taxation from
discontinued operations for the Consumer Healthcare business was
£621 million (2021: £1,580 million).
EPS
from discontinued operations was 260.6p, compared with 26.7p in
2021. The increase primarily reflected the gain arising on the
demerger of the Consumer Healthcare business. For further details
see page 55, discontinued operations.
Total earnings per share
Total
EPS was 371.4p compared with 109.6p in 2021. The increase primarily
reflected the profit after taxation for discontinued operations
recognised on the Consumer Healthcare business demerger, upfront
income received from the settlement with Gilead, increased profits
and fair value gains on investments, partly offset by higher
remeasurement charges for contingent consideration liabilities and
an unfavourable comparison due to a credit of £397 million to
Taxation in 2021.
Currency impact on 2022 results
The
results for 2022 are based on average exchange rates, principally
£1/$1.24, £1/€1.17 and £1/Yen 161. Comparative
exchange rates are given on page 52. The period-end exchange rates
were £1/$1.20, £1/€1.13 and £1/Yen
159.
In
2022, turnover was up 19% at AER and 13% at CER. Total EPS from
continuing operations was 110.8p compared with 82.9p in 2021.
Adjusted EPS was 139.7p compared with 110.3p in 2021, up 27% at AER
and 15% at CER. The favourable currency impact primarily reflected
the weakening of Sterling against the US Dollar, partly offset by
strengthening in Sterling against the Euro and Japanese Yen.
Exchange gains or losses on the settlement of intercompany
transactions had a negligible impact on the twelve percentage point
favourable currency impact on Adjusted EPS.
|
Adjusting items
The
reconciliations between Total results and Adjusted results for 2022
and 2021 are set out below.
|
Year ended 31 December 2022
|
|
Total
results
£m
|
|
Profit
from
discon-
tinued
operations
£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
|
|
Adjusted
results
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
29,324
|
|
|
|
|
|
|
|
|
|
|
|
|
|
29,324
|
Cost of
sales
|
(9,554)
|
|
|
|
648
|
|
|
|
102
|
|
45
|
|
18
|
|
(8,741)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
19,770
|
|
|
|
648
|
|
|
|
102
|
|
45
|
|
18
|
|
20,583
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administration
|
(8,372)
|
|
|
|
|
|
|
|
180
|
|
13
|
|
51
|
|
(8,128)
|
Research
and development
|
(5,488)
|
|
|
|
91
|
|
296
|
|
39
|
|
|
|
|
|
(5,062)
|
Royalty
income
|
758
|
|
|
|
|
|
|
|
|
|
|
|
|
|
758
|
Other
operating income/(expense)
|
(235)
|
|
|
|
|
|
|
|
|
|
1,692
|
|
(1,457)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
6,433
|
|
|
|
739
|
|
296
|
|
321
|
|
1,750
|
|
(1,388)
|
|
8,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
finance cost
|
(803)
|
|
|
|
|
|
|
|
2
|
|
|
|
10
|
|
(791)
|
Share
of after tax losses and joint
of
associates ventures
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
5,628
|
|
|
|
739
|
|
296
|
|
323
|
|
1,750
|
|
(1,378)
|
|
7,358
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
(707)
|
|
|
|
(150)
|
|
(64)
|
|
(87)
|
|
(242)
|
|
112
|
|
(1,138)
|
Tax rate %
|
12.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from
continuing operations
|
4,921
|
|
|
|
589
|
|
232
|
|
236
|
|
1,508
|
|
(1,266)
|
|
6,220
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
after taxation from
discontinued
operations and other
gains/(losses)
from the demerger
|
3,049
|
|
(3,049)
|
|
|
|
|
|
|
|
|
|
|
|
|
Remeasurement
of discontinued
operations
distributed to
shareholders
on demerger
|
7,651
|
|
(7,651)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from
discontinued operations
|
10,700
|
|
(10,700)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit after taxation
for the period
|
15,621
|
|
(10,700)
|
|
589
|
|
232
|
|
236
|
|
1,508
|
|
(1,266)
|
|
6,220
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling
interest
from continuing operations
|
460
|
|
|
|
|
|
|
|
|
|
135
|
|
|
|
595
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to shareholders
from
continuing operations
|
4,461
|
|
|
|
589
|
|
232
|
|
236
|
|
1,373
|
|
(1,266)
|
|
5,625
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling
interest
from discontinued
operations
|
205
|
|
(205)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to shareholders
from
discontinued operations
|
10,495
|
|
(10,495)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,621
|
|
(10,700)
|
|
589
|
|
232
|
|
236
|
|
1,508
|
|
(1,266)
|
|
6,220
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit attributable to
non-controlling interests
|
665
|
|
(205)
|
|
|
|
|
|
|
|
135
|
|
|
|
595
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit attributable to
shareholders
|
14,956
|
|
(10,495)
|
|
589
|
|
232
|
|
236
|
|
1,373
|
|
(1,266)
|
|
5,625
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,621
|
|
(10,700)
|
|
589
|
|
232
|
|
236
|
|
1,508
|
|
(1,266)
|
|
6,220
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share from continuing
operations
|
110.8p
|
|
|
|
14.6p
|
|
5.8p
|
|
5.9p
|
|
34.1p
|
|
(31.5)p
|
|
139.7p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share from
discontinued
operations
|
260.6p
|
|
(260.6)p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total earnings per share
|
371.4p
|
|
(260.6)p
|
|
14.6p
|
|
5.8p
|
|
5.9p
|
|
34.1p
|
|
(31.5)p
|
|
139.7p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number
of
shares (millions)
|
4,026
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,026
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended 31 December 2021(a)
|
|
Total
results
£m
|
|
Profit
from
discon-
tinued
operations
£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
|
|
Adjusted
results
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
24,696
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24,696
|
Cost of
sales
|
(8,163)
|
|
|
|
660
|
|
|
|
102
|
|
28
|
|
27
|
|
(7,346)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
16,533
|
|
|
|
660
|
|
|
|
102
|
|
28
|
|
27
|
|
17,350
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administration
|
(7,070)
|
|
|
|
|
|
|
|
277
|
|
9
|
|
35
|
|
(6,749)
|
Research
and development
|
(5,019)
|
|
|
|
101
|
|
347
|
|
45
|
|
|
|
1
|
|
(4,525)
|
Royalty
income
|
417
|
|
|
|
|
|
|
|
|
|
|
|
|
|
417
|
Other
operating income/(expense)
|
(504)
|
|
|
|
|
|
|
|
|
|
1,106
|
|
(602)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
4,357
|
|
|
|
761
|
|
347
|
|
424
|
|
1,143
|
|
(539)
|
|
6,493
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
finance cost
|
(755)
|
|
|
|
|
|
|
|
2
|
|
|
|
1
|
|
(752)
|
Loss on
disposal of interest
in
associates
|
(36)
|
|
|
|
|
|
|
|
|
|
|
|
36
|
|
-
|
Share
of after tax losses and joint
of
associates ventures
|
33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
3,599
|
|
|
|
761
|
|
347
|
|
426
|
|
1,143
|
|
(502)
|
|
5,774
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
(83)
|
|
|
|
(153)
|
|
(81)
|
|
(79)
|
|
(179)
|
|
(343)
|
|
(918)
|
Tax rate %
|
2.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from
continuing operations
|
3,516
|
|
|
|
608
|
|
266
|
|
347
|
|
964
|
|
(845)
|
|
4,856
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
after taxation from
discontinued
operations and other
gains/(losses)
from the demerger
|
1,580
|
|
(1,580)
|
|
|
|
|
|
|
|
|
|
|
|
|
Remeasurement
of discontinued
operations
distributed to
shareholders
on demerger
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from
discontinued operations
|
1,580
|
|
(1,580)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit after taxation
for the period
|
5,096
|
|
(1,580)
|
|
608
|
|
266
|
|
347
|
|
964
|
|
(845)
|
|
4,856
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling
interest
from continuing operations
|
200
|
|
|
|
|
|
|
|
|
|
241
|
|
|
|
441
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to shareholders
from
continuing operations
|
3,316
|
|
|
|
608
|
|
266
|
|
347
|
|
723
|
|
(845)
|
|
4,415
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling
interest
from discontinued
operations
|
511
|
|
(511)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to shareholders
from
discontinued operations
|
1,069
|
|
(1,069)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,096
|
|
(1,580)
|
|
608
|
|
266
|
|
347
|
|
964
|
|
(845)
|
|
4,856
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit attributable to
non-controlling interests
|
711
|
|
(511)
|
|
|
|
|
|
|
|
241
|
|
|
|
441
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit attributable to
shareholders
|
4,385
|
|
(1,069)
|
|
608
|
|
266
|
|
347
|
|
723
|
|
(845)
|
|
4,415
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,096
|
|
(1,580)
|
|
608
|
|
266
|
|
347
|
|
964
|
|
(845)
|
|
4,856
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share from continuing
operations
|
82.9p
|
|
|
|
15.2p
|
|
6.6p
|
|
8.7p
|
|
18.1p
|
|
(21.2)p
|
|
110.3p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share from
discontinued
operations
|
26.7p
|
|
(26.7)p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total earnings per share
|
109.6p
|
|
(26.7)p
|
|
15.2p
|
|
6.6p
|
|
8.7p
|
|
18.1p
|
|
(21.2)p
|
|
110.3p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number
of
shares (millions)
|
4,003
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,003
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
The 2021 comparative results have
been restated on a consistent basis from those previously published
to reflect the demerger of the Consumer Healthcare
business
(see page 34) and the impact of Share
Consolidation implemented on 18 July 2022 (see page
56).
|
Major restructuring and integration
|
Total
Major restructuring charges from continuing operations incurred in
2022 were £321 million (2021: £424 million), analysed as
follows:
|
|
2022
|
|
2021
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
£m
|
|
Non-
cash
£m
|
|
Total
£m
|
|
Cash
£m
|
|
Non-
cash
£m
|
|
Total
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
Separation
Preparation restructuring
programme
|
177
|
|
110
|
|
287
|
|
353
|
|
59
|
|
412
|
Significant
acquisitions
|
20
|
|
-
|
|
20
|
|
-
|
|
-
|
|
-
|
Legacy
programmes
|
9
|
|
5
|
|
14
|
|
32
|
|
(20)
|
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
206
|
|
115
|
|
321
|
|
385
|
|
39
|
|
424
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
charges of £177 million under the Separation Preparation
programme primarily arose from the restructuring of some
administrative functions as well as Global Supply Chain, R&D
functions and commercial. The non-cash charges of £110 million
primarily reflected the write-down of assets in administrative and
manufacturing locations and impairment of IT assets.
Total
cash payments made in 2022 were £388 million (2021: £551
million), £332 million (2021: £428 million) relating to
the Separation Preparation restructuring programme, £17
million relating to significant acquisitions (2021: £nil) and
£39 million (2021: £123 million) relating to other legacy
programmes including the settlement of certain charges accrued in
previous quarters.
|
The
analysis of Major restructuring charges by Income statement line
was as follows:
|
|
2022
£m
|
|
2021
£m
|
|
|
|
|
Cost of
sales
|
102
|
|
102
|
Selling,
general and administration
|
180
|
|
277
|
Research
and development
|
39
|
|
45
|
|
|
|
|
Total
Major restructuring costs from continuing operations
|
321
|
|
424
|
|
|
|
|
The
benefit in 2022 from restructuring programmes was £0.5
billion, primarily relating to the Separation Preparation
restructuring programme.
The
Group initiated in Q1 2020 a Separation Preparation programme to
prepare for the separation of GSK into two companies. 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 GSK
|
●
|
Further
optimise the supply chain and product portfolio, including the
divestment of non-core assets
|
●
|
Prepare
Consumer Healthcare to operate as a standalone company
|
The
programme has delivered £0.9 billion of annual savings by 2022
and targets to deliver £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.
|
Materially
all of the Separation Preparation restructuring programme has been
included as part of continuing operations. The legacy Consumer
Healthcare Joint Venture integration programme is included as part
of discontinued operations.
|
Transaction-related adjustments
Transaction-related
adjustments from continuing operations resulted is a net charge of
£1,750 million (2021: £1,143 million). This included a
net £1,726 million accounting charge for the remeasurement of
contingent consideration liabilities and the liabilities for the
Pfizer put option and Pfizer and Shionogi preferential dividends in
ViiV Healthcare.
|
Charge/(credit)
|
2022
£m
|
|
2021
£m
|
|
|
|
|
Contingent
consideration on former Shionogi-ViiV Healthcare joint
Venture
(including
Shionogi preferential dividends)
|
1,431
|
|
1,026
|
ViiV
Healthcare put options and Pfizer preferential
dividends
|
85
|
|
48
|
Contingent
consideration on former Novartis Vaccines business
|
193
|
|
27
|
Contingent
consideration on acquisition of Affinivax
|
17
|
|
-
|
Other
adjustments
|
24
|
|
42
|
|
|
|
|
Total
transaction-related charges
|
1,750
|
|
1,143
|
|
|
|
|
The £1,431 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 £410 million and a charge of £1,021 million
primarily from exchange rates as well as adjustments to sales
forecasts. The £85 million charge relating to the ViiV
Healthcare put option and Pfizer preferential dividends represented
an increase in the valuation of the put option primarily as a
result of updated exchange rates as well as adjustments to sales
forecasts.
The
ViiV Healthcare contingent consideration liability is fair valued
under IFRS. An explanation of the accounting for the
non-controlling interests in ViiV Healthcare is set out on page
40.
Divestments, significant legal charges, and other
items
Divestments,
significant legal charges and other items primarily included the
£922 million upfront settlement income received from Gilead, a
fair value gain on investments including £229 million on the
retained stake in Haleon as well as milestone income and gains from
a number of asset disposals, partly offset by certain other
Adjusting items.
Discontinued operations
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”). These are now presented as
part of discontinued operations. Total separation costs incurred in
2022 were £366 million (2021: £314 million). This
includes £103 million relating to transaction costs incurred
in connection with the demerger and preparatory admission costs
related to the listing of Haleon.
Total
separation costs to date were £748 million including £141
million relating to transaction costs.
|
Financial performance – Q4
2022
|
Total results
|
The
Total results for the Group are set out below.
|
|
Q4 2022
£m
|
|
Q4
2021(a)
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
Continuing Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
7,376
|
|
7,076
|
|
4
|
|
(3)
|
|
|
|
|
|
|
|
|
Cost of
sales
|
(2,238)
|
|
(2,785)
|
|
(20)
|
|
(21)
|
|
|
|
|
|
|
|
|
Gross
profit
|
5,138
|
|
4,291
|
|
20
|
|
9
|
|
|
|
|
|
|
|
|
Selling,
general and administration
|
(2,438)
|
|
(2,193)
|
|
11
|
|
4
|
Research
and development
|
(1,797)
|
|
(1,376)
|
|
31
|
|
23
|
Royalty income
|
206
|
|
137
|
|
50
|
|
48
|
Other
operating income/(expense)
|
759
|
|
(367)
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
1,868
|
|
492
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
Finance
income
|
26
|
|
-
|
|
|
|
|
Finance
expense
|
(270)
|
|
(187)
|
|
|
|
|
Share
of after tax (losses)/profits of associates and
joint
ventures
|
2
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
1,626
|
|
303
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
Taxation
|
(1)
|
|
117
|
|
|
|
|
Tax rate %
|
0.1%
|
|
(38.6%)
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from continuing operations
|
1,625
|
|
420
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
Profit
after taxation from discontinued operations and
other
gains/(losses) from the demerger
|
(5)
|
|
510
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from discontinued operations
|
(5)
|
|
510
|
|
>(100)
|
|
>(100)
|
|
|
|
|
|
|
|
|
Profit after taxation for the period
|
1,620
|
|
930
|
|
74
|
|
53
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling interest from
continuing
operations
|
125
|
|
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to shareholders from continuing
operations
|
1,500
|
|
426
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling interest from
discontinued
operations
|
-
|
|
187
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to shareholders from discontinued
operations
|
(5)
|
|
323
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,620
|
|
930
|
|
74
|
|
53
|
|
|
|
|
|
|
|
|
Total
profit attributable to non-controlling interest
|
125
|
|
181
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
profit attributable to shareholders
|
1,495
|
|
749
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,620
|
|
930
|
|
74
|
|
53
|
|
|
|
|
|
|
|
|
Earnings
per share from continuing operations
|
37.2p
|
|
10.6p
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
Earnings
per share from discontinued operations
|
(0.1)p
|
|
8.1p
|
|
>(100)
|
|
>(100)
|
|
|
|
|
|
|
|
|
Total earnings per share
|
37.1p
|
|
18.7p
|
|
98
|
|
75
|
|
|
|
|
|
|
|
|
(a)
|
The 2021 comparative results have
been restated on a consistent basis from those previously published
to reflect the demerger of the Consumer Healthcare
business
(see page 34) and the impact of
Share Consolidation implemented on 18 July 2022 (see page
56).
|
Adjusted results
|
The
Adjusted results for the Group are set out below. Adjusted results
are from continuing operations and exclude the Consumer Healthcare
business (see details on page 39). Reconciliations between Total
results and Adjusted results for Q4 2022 and Q4 2021 are set out on
pages 31 and 32.
|
|
Q4
2022
£m
|
|
%
of
turnover
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
Turnover
|
7,376
|
|
100
|
|
4
|
|
(3)
|
|
|
|
|
|
|
|
|
Cost of
sales
|
(2,030)
|
|
(27.5)
|
|
(22)
|
|
(23)
|
Selling,
general and administration
|
(2,435)
|
|
(33.0)
|
|
21
|
|
13
|
Research
and development
|
(1,522)
|
|
(20.6)
|
|
18
|
|
11
|
Royalty
income
|
206
|
|
2.7
|
|
50
|
|
48
|
|
|
|
|
|
|
|
|
Adjusted
operating profit
|
1,595
|
|
21.6
|
|
21
|
|
5
|
|
|
|
|
|
|
|
|
Adjusted
profit before tax
|
1,362
|
|
|
|
21
|
|
3
|
Adjusted
profit after tax
|
1,190
|
|
|
|
13
|
|
(3)
|
Adjusted
profit attributable to shareholders
|
1,041
|
|
|
|
10
|
|
(6)
|
Adjusted
earnings per share
|
25.8p
|
|
|
|
10
|
|
(6)
|
|
|
|
|
|
|
|
|
Operating profit by segment
|
|
Q4
2022
£m
|
|
%
of
turnover
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
Commercial
Operations
|
3,219
|
|
43.6
|
|
19
|
|
8
|
Research
and Development
|
(1,512)
|
|
|
|
18
|
|
10
|
|
|
|
|
|
|
|
|
Segment
profit
|
1,707
|
|
23.1
|
|
21
|
|
6
|
Corporate
& other unallocated costs
|
(112)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
operating profit
|
1,595
|
|
21.6
|
|
21
|
|
5
|
|
|
|
|
|
|
|
|
Turnover
|
Commercial
Operations
|
|
Q4 2022
|
||||
|
|
|
|
|
|
|
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
HIV
|
1,678
|
|
33
|
|
21
|
Oncology
|
157
|
|
19
|
|
11
|
Immuno-inflammation,
respiratory and other
|
721
|
|
33
|
|
22
|
|
|
|
|
|
|
|
2,556
|
|
32
|
|
21
|
Pandemic
|
125
|
|
(85)
|
|
(85)
|
|
|
|
|
|
|
Specialty Medicines
|
2,681
|
|
(3)
|
|
(11)
|
|
|
|
|
|
|
Meningitis
|
228
|
|
18
|
|
11
|
Influenza
|
276
|
|
13
|
|
2
|
Shingles
|
769
|
|
29
|
|
18
|
Established
Vaccines
|
743
|
|
9
|
|
4
|
|
|
|
|
|
|
|
2,016
|
|
17
|
|
9
|
Pandemic
Vaccines
|
58
|
|
(37)
|
|
(37)
|
|
|
|
|
|
|
Vaccines
|
2,074
|
|
15
|
|
7
|
|
|
|
|
|
|
Respiratory
|
1,682
|
|
9
|
|
2
|
Other
General Medicines
|
939
|
|
(2)
|
|
(3)
|
|
|
|
|
|
|
General Medicines
|
2,621
|
|
5
|
|
-
|
|
|
|
|
|
|
Commercial Operations
|
7,376
|
|
4
|
|
(3)
|
|
|
|
|
|
|
US
|
3,624
|
|
3
|
|
(10)
|
Europe
|
1,655
|
|
9
|
|
7
|
International
|
2,097
|
|
3
|
|
3
|
|
|
|
|
|
|
Commercial Operations by region
|
7,376
|
|
4
|
|
(3)
|
|
|
|
|
|
|
Total
turnover in the quarter was £7,376 million, up 4% at AER, down
3% at CER reflecting strong sales of COVID-19 solutions in Q4 2021.
Turnover grew 17% at AER, 9% at CER excluding sales of COVID-19
solutions. Specialty Medicines saw double digit growth of all
therapy areas (excluding COVID-19 solutions). Vaccines growth
reflected strong Shingrix
and Meningitis performance, partially offset by an unfavourable
comparison to pandemic adjuvant sales
in Q4 2021. General Medicines reflected strong performance
of Trelegy in all regions
and continued recovery of the antibiotics market.
Specialty Medicines
Total
Specialty Medicines sales in the quarter were £2,681 million
down 3% at AER, 11% at CER reflecting strong Xevudy sales in Q4 2021. Specialty
Medicines sales in the quarter excluding Xevudy were £2,556 million, up 32%
at AER, 21% at CER, driven by consistent growth in all therapy
areas.
HIV
HIV
sales were £1,678 million with growth up 33% at AER, 21% at
CER in the quarter. The performance benefited from strong patient
demand for new HIV products (Dovato, Cabenuva, Juluca, Rukobia and
Apretude), which
contributed approximately half of the growth. US year-end inventory
build contributed one third of the growth with favourable US
pricing and International tender phasing delivering the
remainder.
New HIV
products delivered quarterly sales of £806 million up 87% at
AER, 70% at CER, representing 48% of the total HIV portfolio
compared to 34% in the same quarter last year. The growth was
primarily driven by sales of Dovato and Cabenuva. Dovato recorded sales of
£438 million and growth of 72% AER, and 59% CER. Cabenuva, the first long acting
injectable for the treatment of human immunodeficiency virus type-1
(HIV-1) infection, recorded sales of £129 million.
Apretude, the first long
acting injectable for the prevention of HIV-1, delivered sales of
£21 million.
Oncology
Oncology
sales in the quarter were £157 million, up 19% at AER, 11% at
CER. Zejula sales of
£125 million, were up 16% at AER, 8% at CER, and Blenrep sales of £27 million were
up 23% at AER, 14% at CER, including impact of withdrawal from the
US market in Q4 2022.
Immuno-inflammation,
Respiratory and Other
Immuno-inflammation,
Respiratory and Other sales were £721 million up 33% at AER,
22% at CER on strong performance of Benlysta and Nucala. Benlysta sales were £326
million, up 34% at AER, 20%
at CER including strong underlying demand in US and
worldwide. Nucala
sales were £395
million, up 27% at AER, 18% at CER on continued strong demand in
all regions.
Pandemic
Sales
of Xevudy were £125
million, down 85% AER and CER versus Q4 2021. This reflects strong
sales at the end of 2021. In Q4 2022, the majority of sales were
contracted volumes in the International region.
Vaccines
Vaccine
sales were £2,074 million, up 15% at AER, 7% at CER in total
and up 17% at AER, 9% at CER excluding pandemic adjuvant sales. The
performance benefitted from post-pandemic rebound and strong
commercial execution of Shingrix.
Meningitis
Meningitis
vaccines sales grew 18% at AER, 11% at CER to £228 million
mainly driven by Menveo up
60% at AER, 50% at CER to £77 million resulting from higher
public demand and post-pandemic vaccination catch-up in
International.
Bexsero sales were up 18% AER, 13% CER to £150 million,
mostly due to the implementation of a Meningitis B national
immunisation programme in France and higher private market demand
in International. In the US, Menveo and Bexsero share gains were offset by
unfavourable CDC purchase patterns.
Shingles
Shingrix sales grew 29% at AER, 18% at CER to £769
million reflecting post-pandemic rebound, strong commercial
execution and new launch uptake in Europe and International. US
sales grew 6% at AER but decreased 7% at CER to £480 million
mainly driven by expected wholesaler destocking after higher than
usual inventory levels in Q2 and Q3 2022, partly offset by
non-retail demand growth.
Influenza
Fluarix/FluLaval sales grew by 13% AER, 2% CER to £276
million, primarily due to a favourable prior period RAR adjustment
and lower expected returns in the US, partly offset by lower
post-pandemic demand and competitive pressures in
Europe.
Established
Vaccines
Established
vaccines grew by 9% AER, 4% at CER to £743 million mainly
driven by increased sales of divested vaccines partly offset by
Synflorix lower tender
demand in International.
Pandemic
Vaccines
Pandemic
vaccines decreased by 37% AER and CER due to Q4 2021 pandemic
adjuvant contracted volumes to the Canadian government. In Q4 2022,
pandemic vaccines sales represent GSK’s share of contracted
European volumes related to the COVID-19 booster vaccine developed
through a collaboration with Sanofi.
General Medicines
General
Medicines sales in the quarter were £2,621 million, up 5% at
AER, stable at CER, with the impact of generic competition in US
and Europe offset by Trelegy growth in respiratory and the
post-pandemic rebound of the antibiotic market in Other General
Medicines. Overall, there was a 5 percentage point reduction in
growth at AER and CER due to high prior period RAR adjustments in
the comparator.
Respiratory
Respiratory
sales were £1,682 million, up 9% at AER, 2% at CER. The
performance was driven by Trelegy sales of £457 million, up
30% at AER, 19% at CER with strong growth in all regions.
Advair/Seretide sales of
£330 million continued to be eroded by generic competition,
decreasing by 1% at AER, 6% at CER.
Other General
Medicines
Other
General Medicines sales were £939 million, down 2% at AER, 3%
at CER. Augmentin sales
were £167 million, up 28% at AER, 30% at CER reflecting the
rebound of the antibiotic market post pandemic. This was offset by
the ongoing adverse impact of generic competition.
By
Region
US
In the
US, sales were £3,624 million, up 3% at AER, down 10% at CER.
Sales adjusted for COVID-19 solutions were up 23% at AER, 8% at
CER. There were £10 million sales of Xevudy and none for vaccine pandemic
adjuvant in the quarter, but £586 million sales of
Xevudy in Q4 2021 caused a
drag on growth of 20 percentage point AER and 18 percentage points
CER in the quarter.
In
Specialty Medicines, HIV sales of £1,163 million were up 45%
at AER, 28% at CER. Performance benefited from strong patient
demand for new products (Dovato,
Cabenuva, Juluca, Apretude and Rukobia), year-end inventory build and
favourable net price. New HIV medicines delivered sales of
£581 million up >100% at AER, 82% at CER.
Nucala and Benlysta
both continued to grow double digits reflecting ongoing strong
demand. In Oncology, Zejula
continues to be impacted by lower diagnosis and treatment rates and
Blenrep sales of £11
million in the quarter reflected the impact of withdrawal from US
market in Q4 2022.
Vaccine
sales were £988 million, up 16% at AER, 2% at CER. Sales of
flu vaccines were strong, including the favourable impact of RAR
movements and delivery phasing from Q3, while Shingrix sales reflected expected
wholesaler inventory reductions and Established Vaccines sales
reflected CDC phasing.
General
Medicines sales were £873 million up 6% at AER, down 7% at
CER, with continuing Trelegy demand growth, and Flovent continuing to grow. Overall,
there was a 14 percentage point reduction in growth of US General
Medicines due to prior period RAR adjustments in the
quarter.
Europe
In
Europe, sales were £1,655 million, up 9% at AER, 7% at CER.
Sales of COVID-19 solutions in the quarter of £76 million
compare with £68 million in Q4 2021, so have minimal impact on
total growth in the quarter.
In
Specialty Medicines, HIV sales were £344 million up 8% at AER,
6% at CER. The performance predominantly reflected strong patient
demand for Dovato with
sales of £136 million during the period. Benlysta in immunology, Nucala in respiratory, and the
Oncology therapy area all delivered strong double-digit growth in
the quarter. Xevudy sales
of £19 million in the quarter were down on the corresponding
quarter last year reducing total Europe Specialty sales by 11
percentage points at AER and CER.
Vaccine
sales were £579 million, up 28% at AER, 26% at CER.
Shingrix sales of £204
million, up 76% at AER, 72% at CER, drove the growth on strong
commercial execution and new launches uptake partly offset by
influenza vaccines lower post-pandemic demand and competitive
pressures. Pandemic adjuvant sales of £57 million in the
quarter contributed 13 percentage points of growth at AER and
CER.
General
Medicines sales were £552 million up 1% at AER, and down 1% at
CER. Strong demand for Anoro and Trelegy was offset by ongoing generic
competitive pressures and the impact of higher government clawback
rates.
International
International
sales were £2,097 million, up 3% at AER and CER. This included
a drag of 9 percentage points AER and 10 percentage points CER
related to sales of COVID-19 solutions at AER and CER in the
corresponding quarter last year.
In
Specialty Medicines, HIV sales were £171 million up 23% at
AER, 17% at CER driven by Tivicay tender phasing, and strong
Dovato growth. Combined
Tivicay and Triumeq sales were £125 million,
up 16% at AER and 10% at CER. Nucala sales of £68 million grew
24% at AER and 29% at CER reflecting strong market growth and
patient uptake. Benlysta
sales of £32 million grew 39% at AER and CER reflecting growth
in biological market in Japan and inclusion on China’s
National Reimbursement Drug List.
Vaccine
sales were £507 million, flat at AER, down 3% at CER, as a
result of a 21 percentage point drag at AER and CER from COVID-19
vaccine adjuvant sales in Q4 2021. Growth excluding COVID-19
solutions was driven by Shingrix post-pandemic sales rebound,
strong commercial execution and new launches partly offset by
Synflorix lower tender
demand.
General
Medicines sales were £1,196 million up 5% at AER and CER.
Respiratory sales of £530 million were up 14% at AER, 13% at
CER including Trelegy sales
of £71 million up 42% at AER and CER reflecting strong demand
and inclusion on China’s National Reimbursement Drug List.
Other General Medicines sales of £666 million, were down 1% at
AER and flat at CER, reflecting generic competition and price
reductions in certain markets offset by strong growth of
Augmentin on rebound of the
antibiotic market post the pandemic.
|
Operating
performance
|
Cost of sales
Total
cost of sales as a percentage of turnover was 30.3%, 9.0 percentage
points at AER and 7.4 percentage points in CER terms lower than Q4
2021.
Adjusted
cost of sales as a percentage of turnover was 27.5%, down 9.1
percentage points AER and 7.6 percentage points at CER compared
with Q4 2021. This primarily reflected lower sales of lower margin
COVID-19 solutions (Xevudy)
compared to Q4 2021, reducing cost of sales margin by 5.3
percentage points at AER and CER and lower inventory adjustments
and write offs in Vaccines as well as a favourable mix. This was
partly offset by increased supply chain costs including the impact
of increased commodity prices and freight costs.
Selling, general and administration
Total
SG&A costs as a percentage of turnover were 33.1%, 2.1
percentage points higher at AER and 2.2 percentage points higher at
CER than in Q4 2021 primarily reflected increased investment in the
launch of innovative vaccines and medicines partially offset by
higher sales.
Adjusted
SG&A costs as a percentage of turnover were 33.0%, 4.5
percentage points higher at AER and 4.6 percentage points higher at
CER. Adjusted SG&A costs increased 21% at AER, 13% at CER to
£2,435 million which primarily reflected an increased level of
launch investment in Specialty Medicines particularly HIV and
Vaccines including Shingrix
to drive post-pandemic recovery demand and support market
expansion. The growth in Adjusted SG&A also reflected increased
freight and distribution costs. This growth was partly offset by
the continuing benefit of restructuring and tight control of
ongoing costs.
Research and development
Total
R&D expenditure was £1,797 million up 31% at AER, 23% at
CER. This included amortisation and impairments.
Adjusted
R&D expenditure increased in the quarter by 18% at AER and 11%
at CER, to £1,522 million. We continue to see increased
investment in the Vaccines clinical development portfolio,
particularly in our mRNA technology platforms, RSV older adult
vaccine candidate and Men ABCWY, our Phase III meningitis
programme, as well as in relation to our recent acquisition of
Affinivax.
In the
Specialty Medicines portfolio, there was increased investment in
Jemperli as we ramp up for
new phase II/III trials in rectal and colon cancer and in our
early-stage immuno-oncology assets. In addition, there was
increased investment in our phase III respiratory programme for
depemokimab, a potential new medicine to treat severe asthma, and
in bepirovirsen, our study in chronic hepatitis B. This quarter
also reflects the impact of our recent decision to end our
investment in Cell and Gene therapy. These increases in investment
were partly offset by decreases related to the completion of
several late-stage clinical development programmes and reduced
R&D investment in COVID-19 pandemic solutions versus Q4
2021.
Royalty income
Royalty
income was £206 million (Q4 2021: £137 million), up 50%
at AER, 48% at CER, primarily reflecting royalty income from Gilead
under the settlement and licensing agreement with Gilead and higher
sales of Gardasil.
Other operating income/(expense)
Net
other operating income was £759 million (Q4 2021: £367
million expense) primarily reflecting fair value gains in
investments including £605 million on the retained stake in
Haleon and milestone income from disposals. In addition, there was
an accounting gain of £3 million (Q4 2021: £612 million
accounting charge) arising from the remeasurement of contingent
consideration liabilities and the liabilities for the Pfizer, Inc.
(Pfizer) put option and Pfizer and Shionogi & Co. Ltd.
(Shionogi) preferential dividends in ViiV Healthcare. This included
a remeasurement charge of £8 million (Q4 2021: £528
million accounting charge) for the contingent consideration
liability due to Shionogi, reflecting the unwinding of the discount
for £110 million, offset by a gain of £102 million
primarily from exchange rates movement as well as adjustments to
sales forecasts.
Operating profit
Total
operating profit from continuing operations was £1,868 million
compared with £492 million in Q4 2021. The increase primarily
reflected fair value gains on investments including £605
million on the retained stake in Haleon, milestone income from
disposals and lower remeasurement charges for contingent
consideration liabilities.
Adjusted
operating profit was £1,595 million, up 21% at AER and 5% at
CER on a turnover decrease of 3% at CER. The Adjusted operating
margin of 21.6% was higher by 3.0 percentage points at AER and 1.5
percentage points at CER than in Q4 2021. This reflected the impact
from lower sales of COVID-19 solutions which reduced Adjusted
Operating profit growth by approximately 17% at AER, 15% at CER but
did not materially impact the Adjusted operating margin. The
increase in Adjusted Operating margin reflected lower inventory
adjustments and write offs in Vaccines, a favourable mix and higher
royalty income, partly offset by increased launch investment in
SG&A in Specialty Medicines including HIV and
Vaccines.
Contingent
consideration cash payments 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 2022 amounted to £273 million (Q4 2021: £225
million). These included cash payments made to Shionogi of
£257 million (Q4 2021: £211 million).
Adjusted operating profit by business
Commercial
Operations adjusted operating profit was £3,219 million, up
19% at AER and 8% at CER on a turnover decrease of 3% at CER. The
operating margin of 43.6% was 5.5 percentage points higher at AER
and 4.0 percentage points higher at CER than in Q4 2021. This
primarily reflected lower sales of COVID-19 solutions sales low
margin Xevudy and pandemic
adjuvant. This also reflected lower inventory adjustments and write
offs in Vaccines as well as a favourable mix and higher royalty
income. This was partly offset by increased launch investment in
SG&A in Specialty Medicines including HIV and
Vaccines.
R&D
segment operating expenses were £1,512 million, up 18% at AER
and 10% at CER, primarily reflecting increased investment in
Vaccines including priority investments for mRNA and late stage
portfolio and Specialty Medicines in early stage HIV and
depemokimab, as well as the impact of our recent decision to end
our investment in Cell and Gene therapy. This was partly offset by
the completion of several late-stage clinical development
programmes, and reduced R&D investment in COVID-19 pandemic
solutions compared to Q4 2021.
Net finance costs
Total
net finance costs were £244 million compared with £187
million in Q4 2021. Adjusted net finance costs were £235
million compared with £186 million in Q4 2021. The increase
primarily reflected the net cost associated with the Sterling Notes
repurchase in Q4 2022 and higher interest on tax offset by
increased interest income due to higher interest rates and larger
cash balances as a result of the Consumer Healthcare
demerger.
Taxation
The
charge of £1 million represented an effective tax rate on
Total results of 0.1% (Q4 2021: (38.6%)) and reflected the
different tax effects of the various Adjusting items. Tax on
Adjusted profit amounted to £172 million and represented an
effective Adjusted tax rate of 12.6% (Q4 2021: 6.8%).
Issues
related to taxation are described in Note 14,
‘Taxation’ in the Annual Report 2021. The Group
continues to believe it has made adequate provision for the
liabilities likely to arise from periods that are open and not yet
agreed by relevant tax authorities. The ultimate liability for such
matters may vary from the amounts provided and is dependent upon
the outcome of agreements with relevant tax
authorities.
Non-controlling interests
The
allocation of Total profit from continuing operations to
non-controlling interests amounted to £125 million (Q4 2021:
£6 million loss). The increase was primarily due to an
increased allocation of ViiV Healthcare profits of £124
million (Q4 2021: £8 million loss) including reduced credits
for remeasurement of contingent consideration
liabilities.
The
allocation of Adjusted earnings to non-controlling interests
amounted to £149 million (Q4 2021: £109 million). The
increase in allocation primarily reflected an increased allocation
of ViiV Healthcare profits of £148 million (Q4 2021: £107
million).
Earnings per share from continuing operations
Total
EPS from continuing operations was 37.2p compared with 10.6p in Q4
2021. The increase primarily reflected higher fair value gains on
investments including £605 million on the retained stake in
Haleon and lower remeasurement charges for contingent consideration
liabilities.
Adjusted
EPS was 25.8p compared with 23.6p in Q4 2021, up 10% at AER, down
6% at CER, on a 5% CER increase in Adjusted operating profit
primarily reflecting the impact from lower sales of COVID-19
solutions, higher interest costs and a higher effective tax rate
compared to Q4 2021.
Profit and earnings per share from discontinued
operations
Discontinued
operations include the Consumer Healthcare business and certain
Corporate costs directly attributable to the Consumer Healthcare
business. Loss after taxation from discontinued operations amounted
to £5 million (Q4 2021: profit of £510
million).
Loss
per share from discontinued operations was (0.1)p, compared with
EPS of 8.1p in Q4 2021. For further details see page 55,
discontinued operations.
Total earnings per share
Total
EPS was 37.1p compared with 18.7p in Q4 2021. The increase
primarily reflected higher fair value gains on investments
including on the retained stake in Haleon and lower remeasurement
charges for contingent consideration liabilities.
Currency impact on Q4 2022 results
The
results for Q4 2022 are based on average exchange rates,
principally £1/$1.19, £1/€1.15 and £1/Yen 165.
Comparative exchange rates are given on page 52. The period-end
exchange rates were £1/$1.20, £1/€1.13 and
£1/Yen 159.
In Q4
2022, turnover was up 4% at AER and down 3% at CER. Total EPS from
continuing operations was 37.2p compared with 10.6p in Q4 2021.
Adjusted EPS was 25.8p compared with 23.6p in Q4 2021, up 10% at
AER and down 6% at CER. The favourable currency impact primarily
reflected the weakening of Sterling against the US Dollar and the
euro, partly offset by the strengthening in the Japanese Yen.
Exchange gains or losses on the settlement of intercompany
transactions had a negligible impact on the sixteen percentage
point favourable currency impact on Adjusted EPS.
|
Adjusting items
The
reconciliations between Total results and Adjusted results for Q4
2022 and Q4 2021 are set out below.
|
Three months ended 31 December 2022
|
|
Total
results
£m
|
|
Profit
from
discon-
tinued
operations
£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
|
|
Adjusted
results
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
7,376
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,376
|
Cost of
sales
|
(2,238)
|
|
|
|
147
|
|
|
|
42
|
|
10
|
|
9
|
|
(2,030)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
5,138
|
|
|
|
147
|
|
|
|
42
|
|
10
|
|
9
|
|
5,346
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administration
|
(2,438)
|
|
|
|
-
|
|
-
|
|
3
|
|
13
|
|
(13)
|
|
(2,435)
|
Research
and development
|
(1,797)
|
|
|
|
16
|
|
240
|
|
19
|
|
|
|
|
|
(1,522)
|
Royalty
income
|
206
|
|
|
|
|
|
|
|
|
|
|
|
|
|
206
|
Other
operating income/(expense)
|
759
|
|
|
|
|
|
|
|
(1)
|
|
(17)
|
|
(741)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
1,868
|
|
|
|
163
|
|
240
|
|
63
|
|
6
|
|
(745)
|
|
1,595
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
finance cost
|
(244)
|
|
|
|
|
|
|
|
1
|
|
|
|
8
|
|
(235)
|
Share
of after tax losses and joint
of
associates ventures
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
1,626
|
|
|
|
163
|
|
240
|
|
64
|
|
6
|
|
(737)
|
|
1,362
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
(1)
|
|
|
|
(31)
|
|
(54)
|
|
(36)
|
|
(5)
|
|
(45)
|
|
(172)
|
Tax rate %
|
0.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from
continuing operations
|
1,625
|
|
|
|
132
|
|
186
|
|
28
|
|
1
|
|
(782)
|
|
1,190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
after taxation from
discontinued
operations and other
gains/(losses)
from the demerger
|
(5)
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from
discontinued operations
|
(5)
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit after taxation
for the period
|
1,620
|
|
5
|
|
132
|
|
186
|
|
28
|
|
1
|
|
(782)
|
|
1,190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling
interest
from continuing operations
|
125
|
|
|
|
|
|
|
|
|
|
24
|
|
|
|
149
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to shareholders
from
continuing operations
|
1,500
|
|
|
|
132
|
|
186
|
|
28
|
|
(23)
|
|
(782)
|
|
1,041
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling
interest
from discontinued
operations
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to shareholders
from
discontinued operations
|
(5)
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,620
|
|
5
|
|
132
|
|
186
|
|
28
|
|
1
|
|
(782)
|
|
1,190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit attributable to
non-controlling interests
|
125
|
|
-
|
|
|
|
|
|
|
|
24
|
|
|
|
149
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit attributable to
shareholders
|
1,495
|
|
5
|
|
132
|
|
186
|
|
28
|
|
(23)
|
|
(782)
|
|
1,041
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,620
|
|
5
|
|
132
|
|
186
|
|
28
|
|
1
|
|
(782)
|
|
1,190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share from continuing
operations
|
37.2p
|
|
|
|
3.3p
|
|
4.6p
|
|
0.7p
|
|
(0.6)p
|
|
(19.4)p
|
|
25.8p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share from
discontinued
operations
|
(0.1)p
|
|
0.1p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total earnings per share
|
37.1p
|
|
0.1p
|
|
3.3p
|
|
4.6p
|
|
0.7p
|
|
(0.6)p
|
|
(19.4)p
|
|
25.8p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number
of
shares (millions)
|
4,034
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,034
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended 31 December 2021(a)
|
|
Total
results
£m
|
|
Profit
from
discon-
tinued
operations
£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
|
|
Adjusted
results
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
7,076
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,076
|
Cost of
sales
|
(2,785)
|
|
|
|
169
|
|
|
|
18
|
|
6
|
|
|
|
(2,592)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
4,291
|
|
|
|
169
|
|
|
|
18
|
|
6
|
|
|
|
4,484
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administration
|
(2,193)
|
|
|
|
|
|
|
|
138
|
|
9
|
|
28
|
|
(2,018)
|
Research
and development
|
(1,376)
|
|
|
|
25
|
|
64
|
|
3
|
|
|
|
(1)
|
|
(1,285)
|
Royalty
income
|
137
|
|
|
|
|
|
|
|
|
|
|
|
|
|
137
|
Other
operating income/(expense)
|
(367)
|
|
|
|
|
|
|
|
|
|
591
|
|
(224)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
492
|
|
|
|
194
|
|
64
|
|
159
|
|
606
|
|
(197)
|
|
1,318
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
finance cost
|
(187)
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
(186)
|
Share
of after tax losses and joint
of
associates ventures
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
303
|
|
|
|
194
|
|
64
|
|
160
|
|
606
|
|
(197)
|
|
1,130
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
117
|
|
|
|
(46)
|
|
(13)
|
|
(23)
|
|
(78)
|
|
(34)
|
|
(77)
|
Tax rate %
|
(38.6%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from
continuing operations
|
420
|
|
|
|
148
|
|
51
|
|
137
|
|
528
|
|
(231)
|
|
1,053
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
after taxation from
discontinued
operations and other
gains/(losses)
from the demerger
|
510
|
|
(510)
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from
discontinued operations
|
510
|
|
(510)
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit after taxation
for the period
|
930
|
|
(510)
|
|
148
|
|
51
|
|
137
|
|
528
|
|
(231)
|
|
1,053
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling
interest
from continuing operations
|
(6)
|
|
|
|
|
|
|
|
|
|
115
|
|
|
|
109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to shareholders
from
continuing operations
|
426
|
|
|
|
148
|
|
51
|
|
137
|
|
413
|
|
(231)
|
|
944
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling
interest
from discontinued
operations
|
187
|
|
(187)
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to shareholders
from
discontinued operations
|
323
|
|
(323)
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
930
|
|
(510)
|
|
148
|
|
51
|
|
137
|
|
528
|
|
(231)
|
|
1,053
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit attributable to
non-controlling interests
|
181
|
|
(187)
|
|
|
|
|
|
|
|
115
|
|
|
|
109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit attributable to
shareholders
|
749
|
|
(323)
|
|
148
|
|
51
|
|
137
|
|
413
|
|
(231)
|
|
944
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
930
|
|
(510)
|
|
148
|
|
51
|
|
137
|
|
528
|
|
(231)
|
|
1,053
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share from continuing
operations
|
10.6p
|
|
|
|
3.7p
|
|
1.3p
|
|
3.4p
|
|
10.4p
|
|
(5.8)p
|
|
23.6p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share from
discontinued
operations
|
8.1p
|
|
(8.1)p
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total earnings per share
|
18.7p
|
|
(8.1)p
|
|
3.7p
|
|
1.3p
|
|
3.4p
|
|
10.4p
|
|
(5.8)p
|
|
23.6p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number
of
shares (millions)
|
4,007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
The 2021 comparative results have
been restated on a consistent basis from those previously published
to reflect the demerger of the Consumer Healthcare
business
(see page 34) and the impact of
Share Consolidation implemented on 18 July 2022 (see page
56).
|
Major restructuring and integration
|
Total
Major restructuring charges from continuing operations incurred in
Q4 2022 were £63 million (Q4 2021: £159 million),
analysed as follows:
|
|
Q4 2022
|
|
Q4
2021
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
£m
|
|
Non-
cash
£m
|
|
Total
£m
|
|
Cash
£m
|
|
Non-
cash
£m
|
|
Total
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
Separation
Preparation restructuring
programme
|
100
|
|
(54)
|
|
46
|
|
105
|
|
41
|
|
146
|
Significant
acquisitions
|
10
|
|
-
|
|
10
|
|
-
|
|
-
|
|
-
|
Legacy
programmes
|
6
|
|
1
|
|
7
|
|
10
|
|
3
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
116
|
|
(53)
|
|
63
|
|
115
|
|
44
|
|
159
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
charges of £100 million under the Separation Preparation
programme primarily arose from the restructuring of some
administrative functions as well as some global Supply Chain and
R&D functions and commercial. The non-cash credit of £54
million primarily reflected the net profit on sale of assets in an
R&D site partly offset by write-downs of assets in
administrative locations.
Total
cash payments made in Q4 2022 were £115 million (Q4 2021:
£134 million), £92 million (Q4 2021: £109
million) relating to the Separation Preparation restructuring
programme, £12 million relating to significant acquisitions
(Q4 2021: £nil) and £11 million (Q4 2021: £25
million) relating to other legacy programmes including the
settlement of certain charges accrued in previous
quarters.
|
The
analysis of Major restructuring charges by Income statement line is
as follows:
|
|
Q4 2022
£m
|
|
Q4
2021
£m
|
|
|
|
|
Cost of
sales
|
42
|
|
18
|
Selling,
general and administration
|
3
|
|
138
|
Research
and development
|
19
|
|
3
|
Other
operating (expenses)/income
|
(1)
|
|
-
|
|
|
|
|
Total
major restructuring costs from continuing operations
|
63
|
|
159
|
|
|
|
|
Materially
all of the Separation Preparation restructuring programme has been
included as part of continuing operations. The legacy Consumer
Healthcare Joint Venture integration programme is now included as
part of discontinued operations.
|
Transaction-related adjustments
Transaction-related
adjustments resulted in a net charge of £6 million (Q4 2021:
£606 million). This included a net £3 million accounting
gain for the remeasurement of contingent consideration liabilities
and the liabilities for the Pfizer put option and Pfizer and
Shionogi preferential dividends in ViiV Healthcare.
|
Charge/(credit)
|
Q4 2022
£m
|
|
Q4
2021
£m
|
|
|
|
|
Contingent
consideration on former Shionogi-ViiV Healthcare joint
venture
(including
Shionogi preferential dividends)
|
8
|
|
528
|
ViiV
Healthcare put options and Pfizer preferential
dividends
|
(116)
|
|
101
|
Contingent
consideration - former Novartis Vaccines business
|
93
|
|
(17)
|
Contingent
consideration - Affinivax
|
12
|
|
-
|
Other
adjustments
|
9
|
|
(6)
|
|
|
|
|
Total
transaction-related charges
|
6
|
|
606
|
|
|
|
|
The £8 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 £110
million offset by a credit of £102 million primarily from a
reduction due to exchange rates partly offset by adjustments to
sales forecasts. The £116 million gain relating to the ViiV
Healthcare put option and Pfizer preferential dividends represented
a decrease in the valuation of the put option primarily as a result
of updated exchange rates as well as adjustments to sales
forecasts.
The
ViiV Healthcare contingent consideration liability is fair valued
under IFRS. An explanation of the accounting for the
non-controlling interests in ViiV Healthcare is set out on page
40.
Divestments, significant legal charges, and other
items
Divestments,
significant legal charges and other items primarily include fair
value gains on investments including £605 million on the
retained stake in Haleon and milestone income on disposals and
certain other Adjusting items. There was no net charge for
significant legal items in the quarter (Q4 2021: £37
million).
Discontinued operations
GSK satisfied the criteria in IFRS 5 for treating Consumer
Healthcare as a ‘discontinued operation’ effective from
30 June 2022, as it was then expected that the carrying amount of
the disposal group will be recovered principally through disposal
and a distribution, it was available for distribution in its
present condition (subject only to the steps to be completed that
are usual and customary for the demerger of a business) and it was
considered highly probable. The demerger was completed on 18 July
2022, resulting in Consumer Healthcare being classified as a
discontinued operation.
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”) and these have been
presented as part of discontinued operations. Total separation
costs incurred in Q4 2022 were £5 million (Q4 2021: £130
million). This includes £1 million relating to transaction
costs incurred in connection with the demerger and preparatory
admission costs related to the listing of Haleon.
|
Cash generation
|
Cash flow
|
|
2022
£m
|
|
2021
£m
|
|
Q4
2022
£m
|
|
|
|
|
|
|
Cash
generated from operations attributable to
continuing
operations (£m)
|
7,944
|
|
7,249
|
|
2,101
|
Cash
generated from operations attributable to
discontinued
operations (£m)
|
932
|
|
1,994
|
|
4
|
|
|
|
|
|
|
Total
cash generated from operations (£m)
|
8,876
|
|
9,243
|
|
2,105
|
|
|
|
|
|
|
Net
cash inflow from operating activities from
continuing
operations
|
6,634
|
|
6,277
|
|
1,901
|
Net
cash inflow from operating activities from
discontinued
operations
|
769
|
|
1,675
|
|
4
|
|
|
|
|
|
|
Total
net cash generated from operating activities (£m)
|
7,403
|
|
7,952
|
|
1,905
|
|
|
|
|
|
|
Free
cash inflow from continuing operations* (£m)
|
3,348
|
|
3,301
|
|
895
|
Free
cash flow from continuing operations growth (%)
|
1%
|
|
(10)%
|
|
(62)%
|
Free
cash flow conversion from continuing operations* (%)
|
75%
|
|
100%
|
|
60%
|
Total
net debt** (£m)
|
(17,197)
|
|
(19,838)
|
|
(17,197)
|
|
|
|
|
|
|
*
|
Free cash flow from continuing
operations and free cash flow conversion are defined on page
67.
|
**
|
Net debt is analysed on page
57.
|
2022
Cash generated from operations attributable to continuing
operations for the year was £7,944 million (2021: £7,249
million). The increase primarily reflected a significant increase
in operating profit including the upfront income from the
settlement with Gilead, favourable exchange impact and favourable
timing of collections, partly offset by unfavourable timing of
profit share payments for Xevudy sales, increased cash contribution to the UK
defined benefit pension scheme, increased contingent consideration
payments reflecting the Gilead settlement in February 2022 and a
higher increase in inventory.
Cash generated from operations attributable to discontinued
operations for 2022 was £932 million (2021: £1,994
million).
Total cash payments to Shionogi in relation to the ViiV Healthcare
contingent consideration liability in 2022 were £1,100 million
(2021: £826 million), of which £1,031 million was
recognised in cash flows from operating activities and £69
million was recognised in contingent consideration paid within
investing cash flows. These payments are deductible for tax
purposes.
Free
cash inflow from continuing operations was £3,348 million for
2022 (2021: £3,301 million). The increase primarily reflected
a significant increase in operating profit including the upfront
income from the settlement with Gilead, favourable exchange,
reduced purchases of intangible assets and favourable timing of
collections. This was partly offset by unfavourable timing of
profit share payments for Xevudy sales, increased cash
contributions to pensions, increased contingent consideration
payments reflecting the Gilead settlement in February 2022, higher
tax payments, lower proceeds from disposals, higher capital
expenditure and a higher increase in inventory.
|
Q4 2022
Cash
generated from operations attributable to continuing operations for
the quarter was £2,101 million (Q4 2021: £3,329 million).
The decrease primarily reflected unfavourable timing of profit
share payments for Xevudy,
increased cash contributions to the UK defined benefit pension
schemes and unfavourable timing of returns and rebates partly offset by an increase in
operating profit, including beneficial exchange and favourable
timing of collections. Cash generated from operations attributable
to discontinued operations for the quarter was £4 million (Q4
2021: £872 million).
Total cash payments to Shionogi in relation to the ViiV Healthcare
contingent consideration liability in the quarter were £257
million (Q4 2021: £211 million), all of which was recognised
in cash flows from operating activities. These payments are
deductible for tax purposes.
Free
cash inflow from continued operations was £895 million for the
quarter (Q4 2021: £2,344 million). The reduction primarily
reflected unfavourable timing of profit share payments for
Xevudy sales, increased
cash contribution to pensions, unfavourable timing of returns and
rebates and reduced proceeds from and increased purchases of
intangible assets, partly offset by the increase in operating
profit including beneficial exchange, reduced tax payments, and
favourable timing of collections.
|
Total Net debt
At 31
December 2022, net debt was £17,197 million, compared with
£19,838 million at 31 December 2021, comprising gross debt of
£20,987 million and cash and liquid investments of £3,790
million.
Net
debt reduced by £2,641 million primarily due to £3,348
million free cash flow from continuing operations, £238
million disposals of equity investments and £7,177 million
decrease from discontinued operations as a result of the demerger
primarily reflecting £7,112 million of pre-separation
dividends attributable to GSK funded by Consumer Healthcare debt.
This was partly offset by purchases of businesses of £3,108
million, net of cash acquired, reflecting the acquisitions of
Sierra Oncology and Affinivax, dividends paid to shareholders of
£3,467 million, net adverse exchange impacts of £1,386
million from the translation of non-Sterling denominated debt and
exchange on other financing items and £143 million purchases
of equity investments.
At 31
December 2022, GSK had short-term borrowings (including overdrafts
and lease liabilities) repayable within 12 months of £3,952
million with loans of £1,713 million repayable in the
subsequent year.
|
Returns to
shareholders
|
Quarterly dividends
The
Board has declared a fourth dividend for 2022 of 13.75p per share
(Q4 2021: 28.75p1 per share
retrospectively adjusted) for the Share Consolidation.
On 23
June 2021, at the new GSK Investor Update, GSK set out that from
2022 a progressive dividend policy will be implemented guided by a
40 to 60 percent pay-out ratio through the investment cycle. The
dividend policy, the total expected cash distribution, and the
respective dividend pay-out ratios for GSK remain
unchanged.
GSK has
previously stated that it expected to declare a 27p per share
dividend for the first half of 2022, a 22p per share dividend for
the second half of 2022 and a 45p per share dividend for 2023,
(before the share consolidation) but that these targeted dividends
per share would increase in step with the Share Consolidation to
maintain the same aggregate dividend pay-out in absolute Pound
Sterling terms. Accordingly, using the consolidation ratio,
GSK’s expected dividend for the fourth quarter of 2022
converts to 13.75p per new ordinary share, this results in an
expected total dividend for the second half of 2022 of 27.5p per
new ordinary share. The expected dividend for 2023 is 56.5p per new
ordinary share, in line with the original expectation converted for
the Share Consolidation and rounded up.
Payment of dividends
The
equivalent interim dividend receivable by ADR holders will be
calculated based on the exchange rate on 11 April 2023. 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 23 February 2023, with
a record date of 24 February 2023 and a payment date of 13 April
2023.
|
|
Paid/
Payable
|
|
Pence
per
share/
pre
share
consolidation
|
|
Pence
per
share/
post
share
consolidation
|
|
£m
|
|
|
|
|
|
|
|
|
2022
|
|
|
|
|
|
|
|
First
interim
|
1 July
2022
|
|
14
|
|
17.50
|
|
704
|
Second
interim
|
6
October 2022
|
|
13
|
|
16.25
|
|
654
|
Third
interim
|
12
January 2023
|
|
11
|
|
13.75
|
|
555
|
Fourth
interim
|
13
April 2023
|
|
11
|
|
13.75
|
|
555
|
|
|
|
|
|
|
|
|
|
|
|
49
|
|
61.25
|
|
2,468
|
|
|
|
|
|
|
|
|
|
Paid/
Payable
|
|
Pence
per
share/
pre
share
consolidation
|
|
Pence
per
share/
post
share
consolidation
|
|
£m
|
|
|
|
|
|
|
|
|
2021
|
|
|
|
|
|
|
|
First
interim
|
8 July
2021
|
|
19
|
|
23.75
|
|
951
|
Second
interim
|
7
October 2021
|
|
19
|
|
23.75
|
|
951
|
Third
interim
|
13
January 2022
|
|
19
|
|
23.75
|
|
952
|
Fourth
interim
|
7 April
2022
|
|
23
|
|
28.75
|
|
1,157
|
|
|
|
|
|
|
|
|
|
|
|
80
|
|
100
|
|
4,011
|
|
|
|
|
|
|
|
|
The demerger of the Consumer Healthcare business was implemented by
GSK declaring an interim dividend in specie of Haleon plc shares.
The fair value of the distribution was £15.5
billion.
|
1
|
Adjusted for the Share
Consolidation on 18 July 2022. For details of the Share
Consolidation see page 56.
|
Weighted average number of shares
|
|||||
|
|
|
2022
millions
|
|
2021
millions(a)
|
|
|
|
|
|
|
Weighted
average number of shares – basic
|
|
|
4,026
|
|
4,003
|
Dilutive
effect of share options and share awards
|
|
|
58
|
|
49
|
|
|
|
|
|
|
Weighted
average number of shares – diluted
|
|
|
4,084
|
|
4,052
|
|
|
|
|
|
|
Weighted average number of shares
|
|||||
|
|
|
Q4 2022
millions
|
|
Q4
2021
millions(a)
|
|
|
|
|
|
|
Weighted
average number of shares – basic
|
|
|
4,034
|
|
4,007
|
Dilutive
effect of share options and share awards
|
|
|
57
|
|
50
|
|
|
|
|
|
|
Weighted
average number of shares – diluted
|
|
|
4,091
|
|
4,057
|
|
|
|
|
|
|
(a)
|
See page 56 for details of the
Share Consolidation.
|
At 31
December 2022, 4,034 million shares (2021: 4,007 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 1.7 million shares under employee share schemes in
the period for proceeds of £25 million (2021: £21
million).
|
At 31
December 2022, the ESOP Trusts held 59.6 million GSK shares against
the future exercise of share options and share awards. The carrying
value of £353 million has been deducted from other reserves.
The market value of these shares was £861
million.
At 31
December 2022, the company held 217.1 million Treasury shares at a
cost of £3,797 million which has been deducted from retained
earnings.
|
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 67.
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 profits from discontinued operations from the
Consumer Healthcare business (see details on page 34) and the
following items in relation to our continuing operations from Total
results, together with the tax effects of all of these
items:
|
●
|
amortisation
of intangible assets (excluding computer software and capitalised
development costs)
|
●
|
impairment
of intangible assets (excluding computer software) and
goodwill
|
●
|
major
restructuring costs, which include impairments of tangible assets
and computer software, (under specific Board approved programmes
that are structural, of a significant scale and where the costs of
individual or related projects exceed £25 million), including
integration costs following material acquisitions
|
●
|
transaction-related
accounting or other adjustments related to significant
acquisitions
|
●
|
proceeds
and costs of disposal of associates, products and businesses;
significant settlement income; significant legal charges (net of
insurance recoveries) and expenses on the settlement of litigation
and government investigations; other operating income other than
royalty income, and other items
|
Costs
for all other ordinary course smaller scale restructuring and legal
charges and expenses from continuing operations 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. Within the
Pharmaceuticals sector, the highly regulated manufacturing
operations and supply chains and long lifecycle of the business
mean that restructuring programmes, particularly those that involve
the rationalisation or closure of manufacturing or R&D sites
are likely to take several years to complete. Costs, both cash and
non-cash, of these programmes are provided for as individual
elements are approved and meet the accounting recognition criteria.
As a result, charges may be incurred over a number of years
following the initiation of a Major restructuring
programme.
Significant
legal charges and expenses are those arising from the settlement of
litigation or government investigations that are not in the normal
course and materially larger than more regularly occurring
individual matters. They also include certain major legacy
matters.
Reconciliations
between Total and Adjusted results, providing further information
on the key Adjusting items, are set out on pages 18, 19, 31 and
32.
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 83% of the Total
earnings and 82% of the Adjusted earnings of ViiV Healthcare for
2022.
As
consideration for the acquisition of Shionogi’s interest in
the former Shionogi-ViiV Healthcare joint venture in 2012, Shionogi
received the 10% equity stake in ViiV Healthcare and ViiV
Healthcare also agreed to pay additional future cash consideration
to Shionogi, contingent on the future sales performance of the
products being developed by that joint venture, dolutegravir and
cabotegravir. Under IFRS 3 ‘Business combinations’, GSK
was required to provide for the estimated fair value of this
contingent consideration at the time of acquisition and is required
to update the liability to the latest estimate of fair value at
each subsequent period end. The liability for the contingent
consideration recognised in the balance sheet at the date of
acquisition was £659 million. Subsequent remeasurements are
reflected within other operating income/(expense) and within
Adjusting items in the income statement in each
period.
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 made an upfront payment of $1.25
billion to ViiV Healthcare in February
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.
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 2022 were
£1,100 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 57 and 58 of the Annual Report
2021.
|
Financial
information
|
Income statements
|
|
2022
£m
|
|
2021(a)
£m
|
|
Q4 2022
£m
|
|
Q4
2021(a)
£m
|
|
|
|
|
|
|
|
|
TURNOVER
|
29,324
|
|
24,696
|
|
7,376
|
|
7,076
|
|
|
|
|
|
|
|
|
Cost of
sales
|
(9,554)
|
|
(8,163)
|
|
(2,238)
|
|
(2,785)
|
|
|
|
|
|
|
|
|
Gross
profit
|
19,770
|
|
16,533
|
|
5,138
|
|
4,291
|
|
|
|
|
|
|
|
|
Selling,
general and administration
|
(8,372)
|
|
(7,070)
|
|
(2,438)
|
|
(2,193)
|
Research
and development
|
(5,488)
|
|
(5,019)
|
|
(1,797)
|
|
(1,376)
|
Royalty income
|
758
|
|
417
|
|
206
|
|
137
|
Other
operating (expense)/income
|
(235)
|
|
(504)
|
|
759
|
|
(367)
|
|
|
|
|
|
|
|
|
OPERATING PROFIT
|
6,433
|
|
4,357
|
|
1,868
|
|
492
|
|
|
|
|
|
|
|
|
Finance
income
|
76
|
|
14
|
|
26
|
|
1
|
Finance
expense
|
(879)
|
|
(769)
|
|
(270)
|
|
(188)
|
Loss on
disposal of interests in associates
|
-
|
|
(36)
|
|
-
|
|
-
|
Share
of after tax (losses)/profits of associates
and
joint ventures
|
(2)
|
|
33
|
|
2
|
|
(2)
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAXATION
|
5,628
|
|
3,599
|
|
1,626
|
|
303
|
|
|
|
|
|
|
|
|
Taxation
|
(707)
|
|
(83)
|
|
(1)
|
|
117
|
Tax rate %
|
12.6%
|
|
2.3%
|
|
0.1%
|
|
(38.6%)
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAXATION FROM CONTINUING
OPERATIONS
|
4,921
|
|
3,516
|
|
1,625
|
|
420
|
|
|
|
|
|
|
|
|
Profit
after taxation from discontinued operations
and
other gains from the demerger
|
3,049
|
|
1,580
|
|
(5)
|
|
510
|
Remeasurement
of discontinued operations
distributed
to shareholders on demerger
|
7,651
|
|
-
|
|
-
|
|
-
|
PROFIT AFTER TAXATION FROM
DISCONTINUED OPERATIONS(b)
|
10,700
|
|
1,580
|
|
(5)
|
|
510
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAXATION FOR THE PERIOD
|
15,621
|
|
5,096
|
|
1,620
|
|
930
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling interests
from
continuing operations
|
460
|
|
200
|
|
125
|
|
(6)
|
|
|
|
|
|
|
|
|
Profit
attributable to shareholders from
continuing
operations
|
4,461
|
|
3,316
|
|
1,500
|
|
426
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling interests
from
discontinued operations
|
205
|
|
511
|
|
-
|
|
187
|
|
|
|
|
|
|
|
|
Profit
attributable to shareholders from
discontinued
operations
|
10,495
|
|
1,069
|
|
(5)
|
|
323
|
|
|
|
|
|
|
|
|
|
15,621
|
|
5,096
|
|
1,620
|
|
930
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling interests
|
665
|
|
711
|
|
125
|
|
181
|
|
|
|
|
|
|
|
|
Profit
attributable to shareholders
|
14,956
|
|
4,385
|
|
1,495
|
|
749
|
|
|
|
|
|
|
|
|
|
15,621
|
|
5,096
|
|
1,620
|
|
930
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE FROM CONTINUING
OPERATIONS
|
110.8p
|
|
82.9p
|
|
37.2p
|
|
10.6p
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE FROM DISCONTINUED
OPERATIONS
|
260.6p
|
|
26.7p
|
|
(0.1)p
|
|
8.1p
|
|
|
|
|
|
|
|
|
TOTAL EARNINGS PER SHARE
|
371.4p
|
|
109.6p
|
|
37.1p
|
|
18.7p
|
|
|
|
|
|
|
|
|
Diluted
earnings per share from continuing
operations
|
109.2p
|
|
81.8p
|
|
36.6p
|
|
10.5p
|
|
|
|
|
|
|
|
|
Diluted
earnings per share from discontinued
operations
|
257.0p
|
|
26.4p
|
|
(0.1)p
|
|
8.0p
|
|
|
|
|
|
|
|
|
Total
diluted earnings per share
|
366.2p
|
|
108.2p
|
|
36.5p
|
|
18.5p
|
|
|
|
|
|
|
|
|
(a)
|
The 2021 comparative results have
been restated on a consistent basis from those previously published
to reflect the demerger of the Consumer Healthcare
business
(see page 34) and the impact of
Share Consolidation implemented on 18 July 2022 (see page
56).
|
(b)
|
See page 56 for further details on
profit after tax from discontinued operations.
|
Statement of comprehensive
income
|
|
2022
£m
|
|
2021(a)
£m
|
|
Q4 2022
£m
|
|
Q4
2021(a)
£m
|
|
|
|
|
|
|
|
|
Total
profit for the year
|
15,621
|
|
5,096
|
|
1,620
|
|
930
|
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently to continuing
operations income statement:
|
|
|
|
|
|
|
|
Exchange
movements on overseas net assets
and
net investment hedges
|
113
|
|
(339)
|
|
218
|
|
(130)
|
Reclassification
of exchange movements on
liquidation
or disposal of overseas subsidiaries
and
associates
|
2
|
|
(25)
|
|
(8)
|
|
(15)
|
Fair
value movements on cash flow hedges
|
(18)
|
|
5
|
|
(31)
|
|
9
|
Reclassification
of cash flow hedges to income
statement
|
14
|
|
12
|
|
2
|
|
1
|
Deferred
tax on fair value movements on cash
flow
hedges
|
9
|
|
(8)
|
|
(8)
|
|
(7)
|
|
|
|
|
|
|
|
|
|
120
|
|
(355)
|
|
173
|
|
(142)
|
|
|
|
|
|
|
|
|
Items that will not be reclassified to continuing operations income
statement:
|
|
|
|
|
|
|
|
Exchange
movements on overseas net assets
of
non-controlling interests
|
(28)
|
|
(20)
|
|
(23)
|
|
(19)
|
Fair
value movements on equity investments
|
(754)
|
|
(911)
|
|
(106)
|
|
(616)
|
Tax on
fair value movements on equity
investments
|
56
|
|
131
|
|
(5)
|
|
33
|
Remeasurement
(losses)/gains on defined benefit plans
|
(786)
|
|
940
|
|
(104)
|
|
606
|
Tax on
remeasurement losses/(gains) on defined
benefit
plans
|
211
|
|
(223)
|
|
34
|
|
(158)
|
Fair
value movements on cash flow hedges
|
(6)
|
|
-
|
|
(6)
|
|
-
|
|
|
|
|
|
|
|
|
|
(1,307)
|
|
(83)
|
|
(210)
|
|
(154)
|
|
|
|
|
|
|
|
|
Other
comprehensive expense for the
period
from continuing operations
|
(1,187)
|
|
(438)
|
|
(37)
|
|
(296)
|
|
|
|
|
|
|
|
|
Other
comprehensive income for the
period
from discontinued operations
|
356
|
|
101
|
|
23
|
|
1
|
|
|
|
|
|
|
|
|
Total
comprehensive income for the period
|
14,790
|
|
4,759
|
|
1,606
|
|
635
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income for the year attributable to:
|
|
|
|
|
|
|
|
Shareholders
|
14,153
|
|
4,068
|
|
1,504
|
|
473
|
Non-controlling
interests
|
637
|
|
691
|
|
102
|
|
162
|
|
|
|
|
|
|
|
|
|
14,790
|
|
4,759
|
|
1,606
|
|
635
|
|
|
|
|
|
|
|
|
(a)
|
The 2021 comparative results have
been restated on a consistent basis from those previously published
to reflect the demerger of the Consumer Healthcare
business
(see page 34).
|
Specialty Medicines turnover –
year ended 31 December 2022
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
||||||||||||||||
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
||||||||
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HIV
|
5,749
|
|
20
|
|
12
|
|
3,756
|
|
30
|
|
17
|
|
1,310
|
|
10
|
|
10
|
|
683
|
|
-
|
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dolutegravir
products
|
5,191
|
|
14
|
|
6
|
|
3,311
|
|
19
|
|
8
|
|
1,239
|
|
8
|
|
8
|
|
641
|
|
-
|
|
(3)
|
Tivicay
|
1,381
|
|
-
|
|
(7)
|
|
823
|
|
8
|
|
(3)
|
|
273
|
|
(5)
|
|
(4)
|
|
285
|
|
(14)
|
|
(19)
|
Triumeq
|
1,799
|
|
(4)
|
|
(11)
|
|
1,217
|
|
2
|
|
(8)
|
|
361
|
|
(20)
|
|
(19)
|
|
221
|
|
(8)
|
|
(9)
|
Juluca
|
636
|
|
23
|
|
14
|
|
494
|
|
26
|
|
13
|
|
127
|
|
14
|
|
15
|
|
15
|
|
15
|
|
8
|
Dovato
|
1,375
|
|
75
|
|
65
|
|
777
|
|
82
|
|
64
|
|
478
|
|
58
|
|
59
|
|
120
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rukobia
|
82
|
|
82
|
|
64
|
|
79
|
|
84
|
|
65
|
|
3
|
|
50
|
|
50
|
|
-
|
|
-
|
|
-
|
Cabenuva
|
340
|
|
>100
|
|
>100
|
|
294
|
|
>100
|
|
>100
|
|
40
|
|
>100
|
|
>100
|
|
6
|
|
>100
|
|
>100
|
Apretude
|
41
|
|
-
|
|
-
|
|
41
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Other
|
95
|
|
(25)
|
|
(29)
|
|
31
|
|
(37)
|
|
(45)
|
|
28
|
|
(22)
|
|
(22)
|
|
36
|
|
(14)
|
|
(17)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oncology
|
602
|
|
23
|
|
17
|
|
313
|
|
14
|
|
3
|
|
253
|
|
30
|
|
31
|
|
36
|
|
80
|
|
75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Zejula
|
463
|
|
17
|
|
12
|
|
235
|
|
11
|
|
-
|
|
194
|
|
19
|
|
20
|
|
34
|
|
70
|
|
75
|
Blenrep
|
118
|
|
33
|
|
25
|
|
66
|
|
8
|
|
(3)
|
|
52
|
|
86
|
|
86
|
|
-
|
|
-
|
|
-
|
Jemperli
|
21
|
|
>100
|
|
>100
|
|
13
|
|
>100
|
|
>100
|
|
8
|
|
>100
|
|
>100
|
|
-
|
|
-
|
|
-
|
Other
|
-
|
|
-
|
|
-
|
|
(1)
|
|
-
|
|
-
|
|
(1)
|
|
-
|
|
-
|
|
2
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Immuno-
inflammation,
respiratory and other
|
2,609
|
|
29
|
|
20
|
|
1,830
|
|
29
|
|
16
|
|
366
|
|
13
|
|
13
|
|
413
|
|
45
|
|
47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benlysta
|
1,146
|
|
31
|
|
20
|
|
949
|
|
31
|
|
18
|
|
83
|
|
22
|
|
22
|
|
114
|
|
44
|
|
43
|
Nucala
|
1,423
|
|
25
|
|
18
|
|
881
|
|
28
|
|
15
|
|
300
|
|
17
|
|
17
|
|
242
|
|
24
|
|
28
|
Other
|
40
|
|
>100
|
|
>100
|
|
-
|
|
-
|
|
-
|
|
(17)
|
|
-
|
|
-
|
|
57
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty Medicines
excluding pandemic
|
8,960
|
|
23
|
|
15
|
|
5,899
|
|
29
|
|
16
|
|
1,929
|
|
13
|
|
13
|
|
1,132
|
|
14
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pandemic
|
2,309
|
|
>100
|
|
>100
|
|
828
|
|
38
|
|
24
|
|
456
|
|
>100
|
|
>100
|
|
1,025
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Xevudy
|
2,309
|
|
>100
|
|
>100
|
|
828
|
|
38
|
|
24
|
|
456
|
|
>100
|
|
>100
|
|
1,025
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty Medicines
|
11,269
|
|
37
|
|
29
|
|
6,727
|
|
30
|
|
17
|
|
2,385
|
|
34
|
|
35
|
|
2,157
|
|
69
|
|
70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty Medicines turnover –
three months ended 31 December 2022
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
||||||||||||||||
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
||||||||
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HIV
|
1,678
|
|
33
|
|
21
|
|
1,163
|
|
45
|
|
28
|
|
344
|
|
8
|
|
6
|
|
171
|
|
23
|
|
17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dolutegravir
products
|
1,482
|
|
24
|
|
13
|
|
998
|
|
31
|
|
16
|
|
320
|
|
5
|
|
3
|
|
164
|
|
26
|
|
21
|
Tivicay
|
373
|
|
16
|
|
5
|
|
235
|
|
17
|
|
3
|
|
69
|
|
(3)
|
|
(6)
|
|
69
|
|
38
|
|
28
|
Triumeq
|
479
|
|
1
|
|
(8)
|
|
340
|
|
10
|
|
(3)
|
|
83
|
|
(25)
|
|
(26)
|
|
56
|
|
(3)
|
|
(5)
|
Juluca
|
192
|
|
34
|
|
22
|
|
155
|
|
41
|
|
25
|
|
32
|
|
7
|
|
7
|
|
5
|
|
67
|
|
33
|
Dovato
|
438
|
|
72
|
|
59
|
|
268
|
|
89
|
|
68
|
|
136
|
|
46
|
|
43
|
|
34
|
|
79
|
|
79
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rukobia
|
26
|
|
73
|
|
47
|
|
25
|
|
79
|
|
57
|
|
1
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Cabenuva
|
129
|
|
>100
|
|
>100
|
|
112
|
|
>100
|
|
>100
|
|
15
|
|
>100
|
|
>100
|
|
2
|
|
100
|
|
>100
|
Apretude
|
21
|
|
-
|
|
-
|
|
21
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Other
|
20
|
|
(35)
|
|
(35)
|
|
7
|
|
(42)
|
|
(42)
|
|
8
|
|
(27)
|
|
(18)
|
|
5
|
|
(38)
|
|
(50)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oncology
|
157
|
|
19
|
|
11
|
|
78
|
|
15
|
|
-
|
|
67
|
|
29
|
|
27
|
|
12
|
|
-
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Zejula
|
125
|
|
16
|
|
8
|
|
63
|
|
24
|
|
6
|
|
52
|
|
16
|
|
11
|
|
10
|
|
(17)
|
|
8
|
Blenrep
|
27
|
|
23
|
|
14
|
|
11
|
|
(35)
|
|
(47)
|
|
16
|
|
>100
|
|
>100
|
|
-
|
|
-
|
|
-
|
Jemperli
|
5
|
|
>100
|
|
>100
|
|
5
|
|
>100
|
|
>100
|
|
-
|
|
(100)
|
|
(100)
|
|
-
|
|
-
|
|
-
|
Other
|
-
|
|
-
|
|
-
|
|
(1)
|
|
-
|
|
-
|
|
(1)
|
|
-
|
|
-
|
|
2
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Immuno-
inflammation,
respiratory and other
|
721
|
|
33
|
|
22
|
|
512
|
|
31
|
|
16
|
|
94
|
|
11
|
|
9
|
|
115
|
|
77
|
|
78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benlysta
|
326
|
|
34
|
|
20
|
|
271
|
|
33
|
|
18
|
|
23
|
|
28
|
|
22
|
|
32
|
|
39
|
|
39
|
Nucala
|
395
|
|
27
|
|
18
|
|
242
|
|
28
|
|
13
|
|
85
|
|
27
|
|
22
|
|
68
|
|
24
|
|
29
|
Other
|
-
|
|
>100
|
|
>100
|
|
(1)
|
|
-
|
|
-
|
|
(14)
|
|
-
|
|
-
|
|
15
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty Medicines
excluding pandemic
|
2,556
|
|
32
|
|
21
|
|
1,753
|
|
39
|
|
23
|
|
505
|
|
11
|
|
9
|
|
298
|
|
38
|
|
35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pandemic
|
125
|
|
(85)
|
|
(85)
|
|
10
|
|
(98)
|
|
(99)
|
|
19
|
|
(72)
|
|
(74)
|
|
96
|
|
(45)
|
|
(41)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Xevudy
|
125
|
|
(85)
|
|
(85)
|
|
10
|
|
(98)
|
|
(99)
|
|
19
|
|
(72)
|
|
(74)
|
|
96
|
|
(45)
|
|
(41)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty Medicines
|
2,681
|
|
(3)
|
|
(11)
|
|
1,763
|
|
(5)
|
|
(16)
|
|
524
|
|
-
|
|
(2)
|
|
394
|
|
1
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vaccines turnover – year ended
31 December 2022
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
||||||||||||||||
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
||||||||
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meningitis
|
1,116
|
|
16
|
|
11
|
|
573
|
|
26
|
|
14
|
|
362
|
|
2
|
|
3
|
|
181
|
|
18
|
|
20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bexsero
|
753
|
|
16
|
|
12
|
|
333
|
|
32
|
|
19
|
|
337
|
|
3
|
|
4
|
|
83
|
|
20
|
|
23
|
Menveo
|
345
|
|
27
|
|
18
|
|
240
|
|
20
|
|
8
|
|
20
|
|
(5)
|
|
(10)
|
|
85
|
|
67
|
|
71
|
Other
|
18
|
|
(54)
|
|
(54)
|
|
-
|
|
-
|
|
-
|
|
5
|
|
-
|
|
-
|
|
13
|
|
(62)
|
|
(62)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Influenza
|
714
|
|
5
|
|
(4)
|
|
549
|
|
20
|
|
9
|
|
57
|
|
(44)
|
|
(44)
|
|
108
|
|
(11)
|
|
(16)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fluarix, FluLaval
|
714
|
|
5
|
|
(4)
|
|
549
|
|
20
|
|
9
|
|
57
|
|
(44)
|
|
(44)
|
|
108
|
|
(11)
|
|
(16)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shingles
|
2,958
|
|
72
|
|
60
|
|
1,964
|
|
46
|
|
32
|
|
688
|
|
>100
|
|
>100
|
|
306
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shingrix
|
2,958
|
|
72
|
|
60
|
|
1,964
|
|
46
|
|
32
|
|
688
|
|
>100
|
|
>100
|
|
306
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Established
Vaccines
|
3,085
|
|
4
|
|
-
|
|
1,157
|
|
18
|
|
7
|
|
720
|
|
3
|
|
4
|
|
1,208
|
|
(7)
|
|
(8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Infanrix, Pediarix
|
594
|
|
9
|
|
3
|
|
327
|
|
8
|
|
(3)
|
|
131
|
|
13
|
|
13
|
|
136
|
|
10
|
|
6
|
Boostrix
|
594
|
|
14
|
|
7
|
|
360
|
|
33
|
|
20
|
|
138
|
|
(1)
|
|
(1)
|
|
96
|
|
(14)
|
|
(15)
|
Hepatitis
|
571
|
|
24
|
|
16
|
|
343
|
|
28
|
|
15
|
|
142
|
|
30
|
|
31
|
|
86
|
|
5
|
|
(1)
|
Rotarix
|
527
|
|
(3)
|
|
(3)
|
|
95
|
|
(14)
|
|
(23)
|
|
122
|
|
3
|
|
5
|
|
310
|
|
(1)
|
|
1
|
Synflorix
|
305
|
|
(15)
|
|
(15)
|
|
-
|
|
-
|
|
-
|
|
34
|
|
(24)
|
|
(22)
|
|
271
|
|
(13)
|
|
(14)
|
Priorix, Priorix
Tetra, Varilrix
|
188
|
|
(28)
|
|
(29)
|
|
10
|
|
-
|
|
-
|
|
97
|
|
(22)
|
|
(22)
|
|
81
|
|
(40)
|
|
(43)
|
Cervarix
|
117
|
|
(15)
|
|
(20)
|
|
-
|
|
-
|
|
-
|
|
22
|
|
(12)
|
|
(8)
|
|
95
|
|
(16)
|
|
(22)
|
Other
|
189
|
|
26
|
|
26
|
|
22
|
|
(8)
|
|
(17)
|
|
34
|
|
55
|
|
45
|
|
133
|
|
28
|
|
32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vaccines excluding
pandemic
|
7,873
|
|
24
|
|
17
|
|
4,243
|
|
31
|
|
18
|
|
1,827
|
|
27
|
|
28
|
|
1,803
|
|
8
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pandemic vaccines
|
64
|
|
(86)
|
|
(86)
|
|
-
|
|
(100)
|
|
(100)
|
|
57
|
|
-
|
|
-
|
|
7
|
|
(97)
|
|
(97)
|
Pandemic
adjuvant
|
64
|
|
(86)
|
|
(86)
|
|
-
|
|
(100)
|
|
(100)
|
|
57
|
|
-
|
|
-
|
|
7
|
|
(97)
|
|
(97)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vaccines
|
7,937
|
|
17
|
|
11
|
|
4,243
|
|
22
|
|
10
|
|
1,884
|
|
31
|
|
32
|
|
1,810
|
|
(3)
|
|
(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vaccines turnover – three
months ended 31 December 2022
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
||||||||||||||||
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
||||||||
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meningitis
|
228
|
|
18
|
|
11
|
|
73
|
|
16
|
|
(2)
|
|
101
|
|
17
|
|
15
|
|
54
|
|
20
|
|
22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bexsero
|
150
|
|
18
|
|
13
|
|
36
|
|
3
|
|
(14)
|
|
92
|
|
19
|
|
18
|
|
22
|
|
47
|
|
47
|
Menveo
|
77
|
|
60
|
|
50
|
|
37
|
|
32
|
|
14
|
|
8
|
|
-
|
|
(13)
|
|
32
|
|
>100
|
|
>100
|
Other
|
1
|
|
(95)
|
|
(95)
|
|
-
|
|
-
|
|
-
|
|
1
|
|
-
|
|
-
|
|
-
|
|
(100)
|
|
(100)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Influenza
|
276
|
|
13
|
|
2
|
|
217
|
|
67
|
|
48
|
|
29
|
|
(63)
|
|
(64)
|
|
30
|
|
(17)
|
|
(22)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fluarix, FluLaval
|
276
|
|
13
|
|
2
|
|
217
|
|
67
|
|
48
|
|
29
|
|
(63)
|
|
(64)
|
|
30
|
|
(17)
|
|
(22)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shingles
|
769
|
|
29
|
|
18
|
|
480
|
|
6
|
|
(7)
|
|
204
|
|
76
|
|
72
|
|
85
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shingrix
|
769
|
|
29
|
|
18
|
|
480
|
|
6
|
|
(7)
|
|
204
|
|
76
|
|
72
|
|
85
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Established
Vaccines
|
743
|
|
9
|
|
4
|
|
218
|
|
7
|
|
(6)
|
|
188
|
|
9
|
|
7
|
|
337
|
|
10
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Infanrix, Pediarix
|
111
|
|
(3)
|
|
(10)
|
|
48
|
|
(17)
|
|
(31)
|
|
30
|
|
20
|
|
16
|
|
33
|
|
3
|
|
6
|
Boostrix
|
131
|
|
15
|
|
5
|
|
73
|
|
33
|
|
15
|
|
31
|
|
(3)
|
|
(3)
|
|
27
|
|
-
|
|
(4)
|
Hepatitis
|
126
|
|
12
|
|
2
|
|
64
|
|
3
|
|
(10)
|
|
36
|
|
9
|
|
3
|
|
26
|
|
44
|
|
39
|
Rotarix
|
147
|
|
4
|
|
1
|
|
21
|
|
(22)
|
|
(30)
|
|
32
|
|
-
|
|
-
|
|
94
|
|
13
|
|
11
|
Synflorix
|
68
|
|
(26)
|
|
(28)
|
|
-
|
|
-
|
|
-
|
|
10
|
|
(23)
|
|
(23)
|
|
58
|
|
(27)
|
|
(29)
|
Priorix, Priorix
Tetra, Varilrix
|
50
|
|
(7)
|
|
(13)
|
|
9
|
|
-
|
|
-
|
|
24
|
|
(14)
|
|
(18)
|
|
17
|
|
(35)
|
|
(38)
|
Cervarix
|
26
|
|
13
|
|
9
|
|
-
|
|
-
|
|
-
|
|
7
|
|
>100
|
|
>100
|
|
19
|
|
(5)
|
|
(15)
|
Other
|
84
|
|
>100
|
|
>100
|
|
3
|
|
>100
|
|
>100
|
|
18
|
|
>100
|
|
>100
|
|
63
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vaccines excluding
pandemic
|
2,016
|
|
17
|
|
9
|
|
988
|
|
17
|
|
2
|
|
522
|
|
15
|
|
13
|
|
506
|
|
21
|
|
18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pandemic vaccines
|
58
|
|
(37)
|
|
(37)
|
|
-
|
|
(100)
|
|
(100)
|
|
57
|
|
-
|
|
-
|
|
1
|
|
(99)
|
|
(100)
|
Pandemic
adjuvant
|
58
|
|
(37)
|
|
(37)
|
|
-
|
|
(100)
|
|
(100)
|
|
57
|
|
-
|
|
-
|
|
1
|
|
(99)
|
|
(100)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vaccines
|
2,074
|
|
15
|
|
7
|
|
988
|
|
16
|
|
2
|
|
579
|
|
28
|
|
26
|
|
507
|
|
-
|
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General Medicines turnover –
year ended 31 December 2022
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
||||||||||||||||
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
||||||||
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Respiratory
|
6,548
|
|
8
|
|
3
|
|
3,209
|
|
10
|
|
(1)
|
|
1,384
|
|
3
|
|
3
|
|
1,955
|
|
10
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Arnuity Ellipta
|
56
|
|
19
|
|
9
|
|
48
|
|
20
|
|
10
|
|
-
|
|
-
|
|
-
|
|
8
|
|
14
|
|
-
|
Anoro Ellipta
|
483
|
|
(4)
|
|
(9)
|
|
233
|
|
(16)
|
|
(24)
|
|
165
|
|
11
|
|
11
|
|
85
|
|
10
|
|
10
|
Avamys/Veramyst
|
321
|
|
8
|
|
6
|
|
-
|
|
-
|
|
-
|
|
65
|
|
-
|
|
2
|
|
256
|
|
10
|
|
8
|
Flixotide/Flovent
|
545
|
|
23
|
|
15
|
|
353
|
|
28
|
|
16
|
|
74
|
|
7
|
|
7
|
|
118
|
|
18
|
|
16
|
Incruse Ellipta
|
196
|
|
(4)
|
|
(10)
|
|
104
|
|
(5)
|
|
(14)
|
|
64
|
|
(9)
|
|
(7)
|
|
28
|
|
8
|
|
-
|
Relvar/Breo Ellipta
|
1,145
|
|
2
|
|
(2)
|
|
498
|
|
2
|
|
(8)
|
|
347
|
|
4
|
|
4
|
|
300
|
|
-
|
|
2
|
Seretide/Advair
|
1,159
|
|
(15)
|
|
(17)
|
|
308
|
|
(37)
|
|
(43)
|
|
287
|
|
(11)
|
|
(11)
|
|
564
|
|
3
|
|
1
|
Trelegy Ellipta
|
1,729
|
|
42
|
|
32
|
|
1,253
|
|
47
|
|
32
|
|
236
|
|
18
|
|
19
|
|
240
|
|
47
|
|
48
|
Ventolin
|
771
|
|
7
|
|
2
|
|
411
|
|
5
|
|
(5)
|
|
116
|
|
7
|
|
8
|
|
244
|
|
11
|
|
10
|
Other
Respiratory
|
143
|
|
4
|
|
6
|
|
1
|
|
-
|
|
-
|
|
30
|
|
11
|
|
7
|
|
112
|
|
2
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other General Medicines
|
3,570
|
|
(1)
|
|
(2)
|
|
363
|
|
10
|
|
(1)
|
|
695
|
|
(14)
|
|
(13)
|
|
2,512
|
|
1
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dermatology
|
376
|
|
(6)
|
|
(5)
|
|
(1)
|
|
-
|
|
-
|
|
107
|
|
(18)
|
|
(18)
|
|
270
|
|
-
|
|
1
|
Augmentin
|
576
|
|
35
|
|
38
|
|
-
|
|
-
|
|
-
|
|
151
|
|
22
|
|
23
|
|
425
|
|
41
|
|
44
|
Avodart
|
330
|
|
(1)
|
|
(3)
|
|
-
|
|
-
|
|
-
|
|
107
|
|
(9)
|
|
(8)
|
|
223
|
|
5
|
|
-
|
Lamictal
|
511
|
|
7
|
|
1
|
|
265
|
|
14
|
|
3
|
|
109
|
|
(3)
|
|
(3)
|
|
137
|
|
2
|
|
-
|
Other
|
1,777
|
|
(10)
|
|
(10)
|
|
99
|
|
-
|
|
(9)
|
|
221
|
|
(31)
|
|
(31)
|
|
1,457
|
|
(7)
|
|
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General Medicines
|
10,118
|
|
5
|
|
1
|
|
3,572
|
|
10
|
|
(1)
|
|
2,079
|
|
(3)
|
|
(3)
|
|
4,467
|
|
5
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General Medicines turnover –
three months ended 31 December 2022
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
||||||||||||||||
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
||||||||
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Respiratory
|
1,682
|
|
9
|
|
2
|
|
778
|
|
5
|
|
(7)
|
|
374
|
|
7
|
|
5
|
|
530
|
|
14
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Arnuity Ellipta
|
11
|
|
(15)
|
|
(23)
|
|
9
|
|
(25)
|
|
(33)
|
|
-
|
|
-
|
|
-
|
|
2
|
|
100
|
|
100
|
Anoro Ellipta
|
138
|
|
12
|
|
5
|
|
68
|
|
8
|
|
(5)
|
|
47
|
|
21
|
|
18
|
|
23
|
|
10
|
|
10
|
Avamys/Veramyst
|
82
|
|
15
|
|
11
|
|
-
|
|
-
|
|
-
|
|
14
|
|
(7)
|
|
-
|
|
68
|
|
21
|
|
14
|
Flixotide/Flovent
|
134
|
|
25
|
|
15
|
|
75
|
|
34
|
|
18
|
|
22
|
|
-
|
|
(5)
|
|
37
|
|
28
|
|
24
|
Incruse Ellipta
|
39
|
|
(20)
|
|
(27)
|
|
16
|
|
(41)
|
|
(48)
|
|
16
|
|
-
|
|
-
|
|
7
|
|
17
|
|
-
|
Relvar/Breo Ellipta
|
249
|
|
(11)
|
|
(15)
|
|
72
|
|
(38)
|
|
(47)
|
|
94
|
|
9
|
|
6
|
|
83
|
|
8
|
|
10
|
Seretide/Advair
|
330
|
|
(1)
|
|
(6)
|
|
105
|
|
(13)
|
|
(23)
|
|
75
|
|
(4)
|
|
(5)
|
|
150
|
|
9
|
|
7
|
Trelegy Ellipta
|
457
|
|
30
|
|
19
|
|
321
|
|
29
|
|
14
|
|
65
|
|
20
|
|
20
|
|
71
|
|
42
|
|
42
|
Ventolin
|
206
|
|
12
|
|
4
|
|
111
|
|
16
|
|
1
|
|
33
|
|
6
|
|
3
|
|
62
|
|
9
|
|
11
|
Other
Respiratory
|
36
|
|
-
|
|
-
|
|
1
|
|
-
|
|
-
|
|
8
|
|
14
|
|
-
|
|
27
|
|
(10)
|
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other General Medicines
|
939
|
|
(2)
|
|
(3)
|
|
95
|
|
8
|
|
(5)
|
|
178
|
|
(10)
|
|
(11)
|
|
666
|
|
(1)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dermatology
|
99
|
|
(2)
|
|
(2)
|
|
(1)
|
|
-
|
|
-
|
|
28
|
|
(10)
|
|
(13)
|
|
72
|
|
1
|
|
3
|
Augmentin
|
167
|
|
28
|
|
30
|
|
-
|
|
-
|
|
-
|
|
44
|
|
16
|
|
13
|
|
123
|
|
34
|
|
37
|
Avodart
|
82
|
|
4
|
|
(1)
|
|
-
|
|
-
|
|
-
|
|
26
|
|
(10)
|
|
(10)
|
|
56
|
|
12
|
|
4
|
Lamictal
|
132
|
|
8
|
|
-
|
|
71
|
|
15
|
|
2
|
|
29
|
|
7
|
|
4
|
|
32
|
|
(3)
|
|
(6)
|
Other
|
459
|
|
(12)
|
|
(12)
|
|
25
|
|
(7)
|
|
(19)
|
|
51
|
|
(29)
|
|
(29)
|
|
383
|
|
(10)
|
|
(9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General Medicines
|
2,621
|
|
5
|
|
-
|
|
873
|
|
6
|
|
(7)
|
|
552
|
|
1
|
|
(1)
|
|
1,196
|
|
5
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Operations
turnover
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
||||||||||||||||
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
||||||||
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
31 December 2022
|
29,324
|
|
19
|
|
13
|
|
14,542
|
|
22
|
|
10
|
|
6,348
|
|
18
|
|
19
|
|
8,434
|
|
14
|
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
31 December 2022
|
7,376
|
|
4
|
|
(3)
|
|
3,624
|
|
3
|
|
(10)
|
|
1,655
|
|
9
|
|
7
|
|
2,097
|
|
3
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet
|
|
31 December 2022
£m
|
|
31
December 2021
£m
|
ASSETS
|
|
|
|
Non-current assets
|
|
|
|
Property,
plant and equipment
|
8,933
|
|
9,932
|
Right
of use assets
|
687
|
|
740
|
Goodwill
|
7,046
|
|
10,552
|
Other
intangible assets
|
14,318
|
|
30,079
|
Investments
in associates and joint ventures
|
74
|
|
88
|
Other
investments
|
1,467
|
|
2,126
|
Deferred
tax assets
|
5,658
|
|
5,218
|
Derivative
financial instruments
|
-
|
|
18
|
Other
non-current assets
|
1,194
|
|
1,676
|
|
|
|
|
Total non-current assets
|
39,377
|
|
60,429
|
|
|
|
|
Current assets
|
|
|
|
Inventories
|
5,146
|
|
5,783
|
Current
tax recoverable
|
405
|
|
486
|
Trade
and other receivables
|
7,053
|
|
7,860
|
Derivative
financial instruments
|
190
|
|
188
|
Current
equity investments
|
4,087
|
|
-
|
Liquid
investments
|
67
|
|
61
|
Cash
and cash equivalents
|
3,723
|
|
4,274
|
Assets
held for sale
|
98
|
|
22
|
|
|
|
|
Total current assets
|
20,769
|
|
18,674
|
|
|
|
|
TOTAL ASSETS
|
60,146
|
|
79,103
|
|
|
|
|
LIABILITIES
|
|
|
|
Current liabilities
|
|
|
|
Short-term
borrowings
|
(3,952)
|
|
(3,601)
|
Contingent
consideration liabilities
|
(1,289)
|
|
(958)
|
Trade
and other payables
|
(16,263)
|
|
(17,554)
|
Derivative
financial instruments
|
(183)
|
|
(227)
|
Current
tax payable
|
(471)
|
|
(489)
|
Short-term
provisions
|
(652)
|
|
(841)
|
|
|
|
|
Total current liabilities
|
(22,810)
|
|
(23,670)
|
|
|
|
|
Non-current liabilities
|
|
|
|
Long-term
borrowings
|
(17,035)
|
|
(20,572)
|
Corporation
tax payable
|
(127)
|
|
(180)
|
Deferred
tax liabilities
|
(289)
|
|
(3,556)
|
Pensions
and other post-employment benefits
|
(2,579)
|
|
(3,113)
|
Other
provisions
|
(532)
|
|
(630)
|
Derivative
financial instruments
|
-
|
|
(1)
|
Contingent
consideration liabilities
|
(5,779)
|
|
(5,118)
|
Other
non-current liabilities
|
(899)
|
|
(921)
|
|
|
|
|
Total non-current liabilities
|
(27,240)
|
|
(34,091)
|
|
|
|
|
TOTAL LIABILITIES
|
(50,050)
|
|
(57,761)
|
|
|
|
|
NET ASSETS
|
10,096
|
|
21,342
|
|
|
|
|
EQUITY
|
|
|
|
Share
capital
|
1,347
|
|
1,347
|
Share
premium account
|
3,440
|
|
3,301
|
Retained
earnings
|
4,363
|
|
7,944
|
Other
reserves
|
1,448
|
|
2,463
|
|
|
|
|
Shareholders’ equity
|
10,598
|
|
15,055
|
|
|
|
|
Non-controlling
interests
|
(502)
|
|
6,287
|
|
|
|
|
TOTAL EQUITY
|
10,096
|
|
21,342
|
|
|
|
|
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 2022
|
1,347
|
|
3,301
|
|
7,944
|
|
2,463
|
|
15,055
|
|
6,287
|
|
21,342
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
for the year
|
|
|
|
|
14,956
|
|
|
|
14,956
|
|
665
|
|
15,621
|
Other
comprehensive
income/(expense)
for the year
|
|
|
|
|
(89)
|
|
(714)
|
|
(803)
|
|
(28)
|
|
(831)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income/(expense)
for
the year
|
|
|
|
|
14,867
|
|
(714)
|
|
14,153
|
|
637
|
|
14,790
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
to non-controlling interests
|
|
|
|
|
|
|
|
|
|
|
(1,409)
|
|
(1,409)
|
Non-cash
distribution to non-controlling
interest
|
|
|
|
|
|
|
|
|
|
|
(2,960)
|
|
(2,960)
|
Contributions
from non-controlling
interests
|
|
|
|
|
|
|
|
|
|
|
8
|
|
8
|
Changes
to non-controlling interest
|
|
|
|
|
|
|
|
|
|
|
(20)
|
|
(20)
|
Deconsolidation
of former subsidiaries
|
|
|
|
|
|
|
|
|
|
|
(3,045)
|
|
(3,045)
|
Dividends
to shareholders
|
|
|
|
|
(3,467)
|
|
|
|
(3,467)
|
|
|
|
(3,467)
|
Non-cash
dividend to shareholder
|
|
|
|
|
(15,526)
|
|
|
|
(15,526)
|
|
|
|
(15,526)
|
Realised
after tax losses on disposal
or
liquidation of equity investments
|
|
|
|
|
14
|
|
(14)
|
|
|
|
|
|
-
|
Share
of associates and joint ventures
realised
profits on disposal of equity
investments
|
|
|
|
|
7
|
|
(7)
|
|
|
|
|
|
-
|
Shares
issued
|
-
|
|
25
|
|
|
|
|
|
25
|
|
|
|
25
|
Write-down
on shares held by ESOP
Trusts
|
|
|
|
|
(911)
|
|
911
|
|
|
|
|
|
-
|
Shares
acquired by ESOP Trusts
|
|
|
114
|
|
1,086
|
|
(1,200)
|
|
|
|
|
|
-
|
Share-based
incentive plans
|
|
|
|
|
357
|
|
|
|
357
|
|
|
|
357
|
Tax on
share-based incentive plans
|
|
|
|
|
(8)
|
|
|
|
(8)
|
|
|
|
(8)
|
Hedging
gain/loss after taxation transferred to non-financial
assets
|
|
|
|
|
|
|
9
|
|
9
|
|
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 December 2022
|
1,347
|
|
3,440
|
|
4,363
|
|
1,448
|
|
10,598
|
|
(502)
|
|
10,096
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
Transaction
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow statement – year
ended 31 December 2022
(amounts presented are from
continuing operations unless otherwise
specified)
|
|
2022
£m
|
|
2021(a)
£m
|
Profit after tax from continuing operations
|
4,921
|
|
3,516
|
Tax on
profits
|
707
|
|
83
|
Share
of after tax losses/(profits) of associates and joint
ventures
|
2
|
|
(33)
|
Loss on
disposal of interests in associates
|
-
|
|
36
|
Net
finance expense
|
803
|
|
755
|
Depreciation,
amortisation and other adjusting items
|
2,298
|
|
2,247
|
Decrease/(Increase)
in working capital
|
67
|
|
(500)
|
Contingent
consideration paid
|
(1,058)
|
|
(742)
|
Increase
in other net liabilities (excluding contingent consideration
paid)
|
204
|
|
1,887
|
|
|
|
|
Cash generated from operations attributable to continuing
operations
|
7,944
|
|
7,249
|
Taxation
paid
|
(1,310)
|
|
(972)
|
|
|
|
|
Net cash inflow from continuing operating activities
|
6,634
|
|
6,277
|
Cash
generated from operations attributable to discontinued
operations
|
932
|
|
1,994
|
Taxation
paid from discontinued operations
|
(163)
|
|
(319)
|
Net operating cash flows attributable to discontinued
operations
|
769
|
|
1,675
|
|
|
|
|
Total net cash inflows from operating activities
|
7,403
|
|
7,952
|
|
|
|
|
Cash flow from investing activities
|
|
|
|
Purchase
of property, plant and equipment
|
(1,143)
|
|
(950)
|
Proceeds
from sale of property, plant and equipment
|
146
|
|
132
|
Purchase
of intangible assets
|
(1,115)
|
|
(1,704)
|
Proceeds
from sale of intangible assets
|
196
|
|
641
|
Purchase
of equity investments
|
(143)
|
|
(162)
|
Purchase
of business net of cash acquired
|
(3,108)
|
|
-
|
Proceeds
from sale of equity investments
|
238
|
|
202
|
Contingent
consideration paid
|
(79)
|
|
(114)
|
Disposal
of businesses
|
(43)
|
|
(17)
|
Investment
in associates and joint ventures
|
(1)
|
|
(1)
|
Proceeds
from disposal of associates and joint ventures
|
-
|
|
277
|
Interest
received
|
64
|
|
14
|
Decrease
in liquid investments
|
1
|
|
18
|
Dividends
from associates and joint ventures
|
6
|
|
9
|
|
6
|
|
9
|
Net cash outflow from continuing investing activities
|
(4,981)
|
|
(1,655)
|
Net
investing cash flows attributable to discontinued
operations
|
(3,791)
|
|
(122)
|
|
|
|
|
Total net cash outflow from investing activities
|
(8,772)
|
|
(1,777)
|
|
|
|
|
Cash flow from financing activities
|
|
|
|
Issue
of share capital
|
25
|
|
20
|
Decrease
in long-term loans
|
(569)
|
|
-
|
Net
repayment of short-term loans
|
(4,053)
|
|
(2,003)
|
Repayment
of lease liabilities
|
(202)
|
|
(181)
|
Interest
paid
|
(848)
|
|
(772)
|
Dividends
paid to shareholders
|
(3,467)
|
|
(3,999)
|
Distributions
to non-controlling interests
|
(521)
|
|
(239)
|
Contributions
from non-controlling interests
|
8
|
|
7
|
Other
financing items
|
376
|
|
41
|
|
|
|
|
Net cash outflow from continuing financing activities
|
(9,251)
|
|
(7,126)
|
Net
financing cash flows attributable to discontinued
operations
|
10,074
|
|
(463)
|
|
|
|
|
Total net cash inflow/(outflow) from financing
activities
|
823
|
|
(7,589)
|
|
|
|
|
Increase/(decrease) in cash and bank overdrafts in the
year
|
(546)
|
|
(1,414)
|
|
|
|
|
Cash
and bank overdrafts at beginning of the year
|
3,819
|
|
5,262
|
Exchange
adjustments
|
152
|
|
(30)
|
Increase/(decrease)
in cash and bank overdrafts
|
(546)
|
|
(1,414)
|
|
|
|
|
Cash and bank overdrafts at end of the year
|
3,425
|
|
3,818
|
|
|
|
|
Cash
and bank overdrafts at end of the year comprise:
|
|
|
|
Cash
and cash equivalents
|
3,723
|
|
4,274
|
|
|
|
|
|
3,723
|
|
4,274
|
Overdrafts
|
(298)
|
|
(456)
|
|
|
|
|
|
3,425
|
|
3,818
|
|
|
|
|
(a)
|
The 2021 comparative results have
been restated on a consistent basis from those previously published
to reflect the demerger of the Consumer Healthcare
business
(see page 34).
|
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 has revised its operating segments from
Q1 2022 and from Q2 2022. Previously, GSK reported results under
four segments: Pharmaceuticals; Pharmaceuticals R&D; Vaccines
and Consumer Healthcare. For the first quarter 2022, GSK reported
results under three segments: Commercial Operations; Total R&D
and Consumer Healthcare. From Q2 2022, GSK reports results under
two segments from continuing operations as the demerger of the
Consumer Healthcare segment was completed on 18 July 2022. Members
of the GLT are responsible for each segment. Comparative
information in this announcement has been retrospectively restated
on a consistent basis. The Consumer Healthcare segment is presented
entirely as discontinued operations and therefore no segment
information is presented.
R&D
investment is essential for the sustainability of the business.
However, for segment reporting the Commercial operating profits
exclude allocations of globally funded R&D.
The
Total R&D segment is the responsibility of the Chief Scientific
Officer and is reported as a separate segment. The operating costs
of this segment includes R&D activities across Specialty
Medicines, including HIV and Vaccines. It include R&D and some
SG&A costs relating to regulatory and other
functions.
The
Group’s management reporting process allocates intra-Group
profit on a product sale to the market in which that sale is
recorded, and the profit analyses below have been presented on that
basis.
|
Turnover by
segment
|
|||||||
|
2022
£m
|
|
2021
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
Commercial
Operations (total turnover)
|
29,324
|
|
24,696
|
|
19
|
|
13
|
|
|
|
|
|
|
|
|
Operating profit by
segment
|
|||||||
|
2022
£m
|
|
2021(a)
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
Commercial
Operations
|
13,590
|
|
11,467
|
|
19
|
|
10
|
Research
and Development
|
(5,060)
|
|
(4,567)
|
|
11
|
|
5
|
|
|
|
|
|
|
|
|
Segment
profit
|
8,530
|
|
6,900
|
|
24
|
|
13
|
Corporate
and other unallocated costs
|
(379)
|
|
(407)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
operating profit
|
8,151
|
|
6,493
|
|
26
|
|
14
|
Adjusting
items
|
(1,718)
|
|
(2,136)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
operating profit
|
6,433
|
|
4,357
|
|
48
|
|
31
|
|
|
|
|
|
|
|
|
Finance
income
|
76
|
|
14
|
|
|
|
|
Finance
costs
|
(879)
|
|
(769)
|
|
|
|
|
Loss on
disposal of interests in associates
|
-
|
|
(36)
|
|
|
|
|
Share
of after tax (losses)/profits of
associates
and joint ventures
|
(2)
|
|
33
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
before taxation from continuing operations
|
5,628
|
|
3,599
|
|
56
|
|
37
|
|
|
|
|
|
|
|
|
(a)
|
The 2021 comparative results have
been restated on a consistent basis from those previously published
to reflect the demerger of the Consumer Healthcare
business
(see page 34).
|
Adjusting items reconciling segment profit and operating profit
comprise items not specifically allocated to segment profit. These
include impairment and amortisation of intangible assets, major
restructuring costs, which include impairments of tangible assets
and computer software, transaction-related adjustments related to
significant acquisitions, proceeds and costs of disposals of
associates, products and businesses, significant legal charges and
expenses on the settlement of litigation and government
investigations, other operating income other than royalty income
and other items.
|
Turnover by
segment
|
|
|||||||
|
Q4 2022
£m
|
|
Q4
2021
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
|
|
Commercial
Operations (total turnover)
|
7,376
|
|
7,076
|
|
4
|
|
(3)
|
|
|
|
|
|
|
|
|
|
Operating profit by
segment
|
|
|||||||
|
Q4 2022
£m
|
|
Q4
2021(a)
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
|
|
Commercial
Operations
|
3,219
|
|
2,697
|
|
19
|
|
8
|
|
Research
and Development
|
(1,512)
|
|
(1,281)
|
|
18
|
|
10
|
|
|
|
|
|
|
|
|
|
|
Segment
profit
|
1,707
|
|
1,416
|
|
21
|
|
6
|
|
Corporate
and other unallocated costs
|
(112)
|
|
(98)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
operating profit
|
1,595
|
|
1,318
|
|
21
|
|
5
|
|
Adjusting
items
|
273
|
|
(826)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
operating profit
|
1,868
|
|
492
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
|
|
Finance
income
|
26
|
|
1
|
|
|
|
|
|
Finance
costs
|
(270)
|
|
(188)
|
|
|
|
|
|
Share
of after tax (losses)/profits of
associates
and joint ventures
|
2
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
before taxation from continuing operations
|
1,626
|
|
303
|
|
>100
|
|
>100
|
|
|
|
|
|
|
|
|
|
(a)
|
The 2021 comparative results have
been restated on a consistent basis from those previously published
to reflect the demerger of the Consumer Healthcare
business
(see page 34).
|
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 2021. At 31 December
2022, the Group’s aggregate provision for legal and other
disputes (not including tax matters described on page 16 was
£0.2 billion (31 December 2021: £0.2
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
legal developments since the date of the Q3 2022
results:
Zantac
On 6
December 2022, the court presiding over the federal Multi-District
Litigation (MDL) proceeding granted Defendants’ Daubert motions, finding that
Plaintiffs’ experts’ causation opinions regarding
whether Zantac can cause
the five cancers at issue in the MDL (liver, bladder, pancreatic,
esophageal, and stomach) are unreliable and thus inadmissible.
Without expert causation opinions, the MDL Court granted summary
judgment to GSK and the other brand defendants. The MDL Court found
that “there is no scientist outside this litigation who
concluded ranitidine causes cancer, and the plaintiffs’
scientists within this litigation systemically utilized unreliable
methodologies,” and failed to use “consistent,
objective, science-based standards for the even-handed evaluation
of data.” This ruling effectively dismissed approximately
2,200 filed cases in the MDL and is binding on the 46,697 claimants
in the registry (32,970 mapped to GSK).
A 13th
additional epidemiologic study (Joung et al. 2022) was recently
released. When comparing ranitidine users to other H2 receptor
antagonist (H2RA) users, Joung found no association with overall
cancer or any individual cancer studied (esophageal, gastric,
colorectal, liver, pancreatic, lung, kidney, bladder, and thyroid)
and no evidence of dose-response.
GSK
will continue to defend itself vigorously against all claims
brought at the state level.
In the
California Zantac
litigation Cases JCCP 5150 (JCCP), the Court will hold a Sargon
hearing on 16 February 2023 regarding the admissibility of expert
witness testimony, including the testimony of general causation
expert witnesses, for the first bellwether trial. The first
bellwether trial is expected to start on 27 February 2023 in the
California JCCP.
Given
the complex ownership and marketing of Zantac prescription and
over-the-counter (OTC) medicine over many years, numerous claims
involve several defendants. As a result, some defendants have
served one another, including GSK, with notice of potential
indemnification claims about possible liabilities connected
particularly with Zantac
OTC. Given the early stage of the proceedings, GSK cannot
meaningfully assess what liability, if any, it may have, nor can it
meaningfully assess the liability of other parties under relevant
indemnification provisions.
Further
information regarding the litigation can be found in GSK’s 11
August 2022, 16 August 2022, and 7 December 2022 statements. These
are available on www.gsk.com/en-gb/.
Zofran
On 1
June 2021, the Court overseeing the Zofran Multidistrict Litigation
(MDL) in the District of Massachusetts granted GSK’s motion
for summary judgment on federal pre-emption grounds. At that time,
the District Court granted judgment for GSK in all cases pending in
the MDL (approximately 431 cases) and closed the MDL proceeding.
Plaintiffs appealed this decision and, on 9 January 2023, the
United States Court of Appeals for the First Circuit affirmed the
district court’s decision in favour of GSK. There remains one
state court case and four proposed class actions in
Canada.
|
Additional
information
|
Disposal group and discontinued operations accounting
policy
Disposal
groups are classified as held for distribution if their carrying
amount will be recovered principally through a distribution to
shareholders rather than through continuing use, they are available
for distribution in their present condition and the distribution is
considered highly probable. They are measured at the lower of their
carrying amount and fair value less costs to
distribute.
Non-current
assets included as part of a disposal group are not depreciated or
amortised while they are classified as held for distribution. The
assets and liabilities of a disposal group classified as held for
distribution are presented separately from the other assets and
liabilities in the balance sheet.
A
discontinued operation is a component of the entity that has been
disposed of or distributed or is classified as held for
distribution and that represents a separate major line of business.
The results of discontinued operations are presented separately in
the statement of profit or loss and comparatives are restated on a
consistent basis.
Accounting policies and basis of preparation
This
unaudited Results Announcement contains condensed financial
information for the year-end and three months ended 31 December 2022 and should be read in
conjunction with the Annual Report 2021, 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
2021.
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 2021.
|
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 2021 were published
in the Annual Report 2021, 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 its principal risks is continually assessed,
with appropriate mitigation plans put in place on an as-needed
basis. In 2022, GSK was encouraged by the uptake of its vaccines
and medicines. The company remains confident in the underlying
demand for its vaccines and medicines, especially given the
significant number of COVID-19 vaccinations and boosters
administered worldwide. However, the pandemic remains a significant
ongoing risk, with the World Health Organization continuing to
monitor the emergence of new variants. The current rate of
infection is predominantly driven by the circulation of the BA.5
subvariant and its descendent lineages, which are still the
dominant subvariants of Omicron globally. While COVID-19 vaccines
are being updated with Omicron variants to provide broader immunity
against circulating and emerging variants, these subvariants and
potential future variants of concern could potentially impact
GSK’s trading results, clinical trials, supply continuity and
its employees materially.
|
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:
|
|
2022
|
|
2021
|
|
Q4 2022
|
|
Q4
2021
|
||
|
|
|
|
|
|
|
|
||
Average
rates:
|
|
|
|
|
|
|
|
||
|
US$/£
|
1.24
|
|
1.38
|
|
1.19
|
|
1.36
|
|
|
Euro/£
|
1.17
|
|
1.16
|
|
1.15
|
|
1.18
|
|
|
Yen/£
|
161
|
|
151
|
|
165
|
|
154
|
|
|
|
|
|
|
|
|
|
||
Period-end
rates:
|
|
|
|
|
|
|
|
||
|
US$/£
|
1.20
|
|
1.35
|
|
1.20
|
|
1.35
|
|
|
Euro/£
|
1.13
|
|
1.19
|
|
1.13
|
|
1.19
|
|
|
Yen/£
|
159
|
|
155
|
|
159
|
|
155
|
Net assets
|
The
book value of net assets decreased by £11,246 million from
£21,342 million at 31 December 2021 to £10,096 million at
31 December 2022. This primarily reflected the demerger of the
Consumer Healthcare business and dividends paid to shareholders
partially offset by Total comprehensive income for the
period.
The
retained stake in Haleon of £4,087 million is recognised as a
current equity investment.
The
carrying value of investments in associates and joint ventures at
31 December 2022 was £74 million (31 December 2021: £88
million), with a market value of £74 million (31 December
2021: £88 million).
At 31
December 2022, the net deficit on the Group’s pension plans
was £1,355 million compared with £1,129 million at 31
December 2021. This increase in the net deficit is primarily
related to lower asset values, an increase in the US cash balance
credit rate from 2.0% to 3.9%, Eurozone inflation rates from 2.1%
to 2.4% and an actuarial experience adjustment for higher inflation
than expected in pension increases of approximately £800
million. These are partially offset by increases in the long term
UK discount rate from 2.0% to 4.8%, Eurozone discount rates from
1.3% to 3.7%, the US discount rate from 2.7% to 5.3%, lower UK
inflation rate from 3.2% to 3.1% and cash contributions of
approximately £700 million made to the UK pension
schemes.
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 £1,093 million (31
December 2021: £1,008 million).
Contingent
consideration amounted to £7,068 million at 31 December 2022
(31 December 2021: £6,076 million), of which £5,890
million (31 December 2021: £5,559 million) represented the
estimated present value of amounts payable to Shionogi relating to
ViiV Healthcare, £673 million (31 December 2021: £479
million) represented the estimated present value of contingent
consideration payable to Novartis related to the Vaccines
acquisition and £501 million (31 December 2021: £nil)
represented the estimated present value of contingent consideration
payable to Affinivax.
Of the
contingent consideration payable (on a post-tax basis) to Shionogi
at 31 December 2022, £940 million (31 December 2021: £937
million) is expected to be paid within one year.
|
Movements in contingent consideration are as follows:
|
2022
|
ViiV
Healthcare
£m
|
|
Group
£m
|
|
|
|
|
Contingent
consideration at beginning of the period
|
5,559
|
|
6,076
|
Remeasurement
through income statement and other movements
|
1,431
|
|
2,129
|
Cash
payments: operating cash flows
|
(1,031)
|
|
(1,058)
|
Cash
payments: investing activities
|
(69)
|
|
(79)
|
|
|
|
|
Contingent
consideration at end of the period
|
5,890
|
|
7,068
|
|
|
|
|
2021
|
ViiV
Healthcare
£m
|
|
Group
£m
|
|
|
|
|
Contingent
consideration at beginning of the period
|
5,359
|
|
5,869
|
Remeasurement
through income statement and other movements
|
1,026
|
|
1,063
|
Cash
payments: operating cash flows
|
(721)
|
|
(742)
|
Cash
payments: investing activities
|
(105)
|
|
(114)
|
|
|
|
|
Contingent
consideration at end of the period
|
5,559
|
|
6,076
|
|
|
|
|
The
liabilities for the Pfizer put option and the contingent
consideration at 31 December 2022 have been calculated based on the
period-end exchange rates, primarily US$1.20/£1 and
€1.13/£1. Sensitivity analyses for the Pfizer put option
and each of the largest contingent consideration liabilities are
set out below for the following scenarios:
|
Increase/(decrease) in liability
|
ViiV
Healthcare
put
option
£m
|
|
Shionogi-
ViiV
Healthcare
contingent
consideration
£m
|
|
Novartis
Vaccines
contingent
consideration
£m
|
|
Affinivax
contingent
consideration
£m
|
|
|
|
|
|
|
|
|
10%
increase in sales forecasts*
|
100
|
|
556
|
|
103
|
|
n/a
|
10%
decrease in sales forecasts*
|
(99)
|
|
(555)
|
|
(103)
|
|
n/a
|
10%
increase in probability milestone success
|
n/a
|
|
n/a
|
|
20
|
|
82
|
10%
decrease in probability milestone success
|
n/a
|
|
n/a
|
|
(10)
|
|
(82)
|
1% (100
basis points) increase in discount rate
|
(32)
|
|
(200)
|
|
(55)
|
|
(7)
|
1% (100
basis points) decrease in discount rate
|
35
|
|
215
|
|
65
|
|
7
|
10 cent
appreciation of US Dollar
|
66
|
|
411
|
|
22
|
|
45
|
10 cent
depreciation of US Dollar
|
(56)
|
|
(347)
|
|
(19)
|
|
(38)
|
10 cent
appreciation of Euro
|
29
|
|
109
|
|
23
|
|
n/a
|
10 cent
depreciation of Euro
|
(24)
|
|
(91)
|
|
(19)
|
|
n/a
|
|
|
|
|
|
|
|
|
*
|
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 2022 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 51 and on pages 248 and 249 of the Annual Report
2021.
|
Business acquisitions
|
On 1 July 2022, GSK completed the acquisition of 100% of Sierra
Oncology, Inc. a California-based, late-stage biopharmaceutical
company focused on targeted therapies for the treatment of rare
forms of cancer, for $1.9 billion (£1.6 billion). The main
asset is momelotinib which targets the medical needs of
myelofibrosis patients with anaemia.
On 15 August 2022, GSK completed the acquisition of 100% of
Affinivax, Inc. (Affinivax), a clinical-stage biopharmaceutical
company based in Cambridge, Boston, Massachusetts focused on
pneumococcal vaccine candidates. The consideration for the
acquisition comprised an upfront payment of $2.2 billion (£1.8
billion) as adjusted for working capital acquired paid upon closing
and two potential milestone payments of $0.6 billion (£0.5
billion) each to be paid upon the achievement of certain paediatric
clinical development milestones. The estimated fair value of the
contingent consideration payable was £482
million. The values are provisional and are subject to
change.
Since acquisition no sales arising from the Sierra Oncology or
Affinivax businesses have been included in Group turnover and no
revenue is expected until regulatory approval is received on the
acquired assets. GSK continues to support the ongoing development
of the acquired assets and consequently these assets will be loss
making until regulatory approval on the assets is received. The
development of these assets has been integrated into the
Groups’ existing R&D activities, so it is impracticable
to quantify the development costs for the period.
|
The
fair values of the net assets acquired, including goodwill, are as
follows:
|
|
Sierra
Oncology
£m
|
|
Affinivax
£m
|
|
|
|
|
Net
assets acquired:
|
|
|
|
Intangible
assets
|
1,497
|
|
1,467
|
Inventory
|
60
|
|
-
|
Other
net assets/(liabilities)
|
137
|
|
76
|
Deferred
tax liabilities
|
(259)
|
|
(236)
|
|
|
|
|
|
1,435
|
|
1,307
|
Goodwill
|
162
|
|
965
|
|
|
|
|
Total
consideration
|
1,597
|
|
2,272
|
|
|
|
|
Discontinued operations
|
Consumer
Healthcare has been presented as a discontinued operation from Q2
2022. The demerger of Haleon was completed on 18 July 2022.
Financial information relating to the operations of Consumer
Healthcare for the period until demerger on 18 July 2022 is set out
below. The Group Income Statement and Group Cash Flow Statement
distinguish discontinued operations from continuing operations.
Comparative figures have been restated on a consistent
basis.
This
financial information differs both in purpose and basis of
preparation from the Historical Financial Information and the
Interim Financial Information included in the Haleon prospectus and
from that which will be published by Haleon on 2 March 2023. As a
result, whilst the two sets of financial information are similar,
they are not the same because of certain differences in accounting
and disclosure under IFRS.
|
Total
Results
|
2022
£m
|
|
2021
£m
|
|
Q4 2022
£m
|
|
Q4
2021
£m
|
|
|
|
|
|
|
|
|
Turnover
|
5,581
|
|
9,418
|
|
-
|
|
2,451
|
Other
income/(expenses)
|
(4,730)
|
|
(7,575)
|
|
(5)
|
|
(2,048)
|
|
|
|
|
|
|
|
|
Profit
before tax
|
851
|
|
1,843
|
|
(5)
|
|
403
|
Taxation
|
(235)
|
|
(263)
|
|
-
|
|
107
|
Tax rate%
|
27.6%
|
|
14.3%
|
|
-
|
|
(26.6%)
|
|
|
|
|
|
|
|
|
(Loss)/profit after
taxation from discontinued
operations:
Consumer Healthcare
|
616
|
|
1,580
|
|
(5)
|
|
510
|
|
|
|
|
|
|
|
|
Other
gains/(losses) from the demerger
|
2,433
|
|
-
|
|
-
|
|
-
|
Remeasurement of
discontinued operations
distributed
to shareholders on demerger
|
7,651
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
Profit
after taxation from discontinued operations
|
10,700
|
|
1,580
|
|
(5)
|
|
510
|
|
|
|
|
|
|
|
|
Non-controlling
interest in discontinued operations
|
205
|
|
511
|
|
-
|
|
187
|
Earnings
attributable to shareholders from
discontinued
operations
|
10,495
|
|
1,069
|
|
(5)
|
|
323
|
|
|
|
|
|
|
|
|
Earnings per share
from discontinued operations
|
260.6p
|
|
26.7p
|
|
(0.1)p
|
|
8.1p
|
|
|
|
|
|
|
|
|
The
profit after taxation from discontinued operations for Consumer
Healthcare of £616 million in full-year 2022 includes
separation and transaction costs of £366 million.
|
Divestments
On 18 July 2022, GSK plc separated its Consumer Healthcare business
from the GSK Group to form Haleon, an independent listed company.
The separation was effected by way of a demerger of 80.1% of
GSK’s 68% holding in the Consumer Healthcare business to GSK
shareholders. Following the demerger, 54.5% of Haleon was held in
aggregate by GSK Shareholders, 6.0% remains held by GSK (including
shares received by GSK’s consolidated ESOP trusts) and 7.5%
remains held by certain Scottish limited partnerships (SLPs) set up
to provide collateral for a funding mechanism pursuant to which GSK
will provide additional funding for GSK’s UK defined benefit
Pension Schemes. The aggregate ownership by GSK (including
ownership by the ESOP trusts and SLPs) after the demerger of 13.5%
is measured at fair value with changes through profit or loss.
Pfizer held 32% of Haleon after the demerger.
Under IFRIC 17 ‘Distributions of Non-cash Assets to
Owners’ a liability and an equity distribution are measured
at the fair value of the assets to be distributed when the dividend
is appropriately authorised and it is no longer at the
entity’s discretion. The liability and equity movement, and
associated gain on distribution was recognised in Q3 2022 when the
demerger distribution was authorised and occurred.
The asset distributed was the 54.5% ownership of the Consumer
Healthcare business. The net carrying value of the Consumer
Healthcare business in the consolidated financial statements,
including the retained 13.5% and net of the amount attributable to
the non-controlling interest, was approximately £11.5 billion
at the end of June. GSK’s £6.3 billion share of the
shareholder loans made in Q1 2022 in advance of the pre-separation
dividends was eliminated in the consolidated financial statements.
The assets distributed were reduced by Consumer Healthcare
transactions up to 18 July that principally included pre-separation
dividends declared and settled after the end of Q2 2022 and before
18 July 2022. Those dividends included: £10.4 billion
(£7.1 billion attributable to GSK) of dividends funded by
Consumer Healthcare debt that was partially on-lent during Q1 2022
and dividends of £0.6 billion (£0.4 billion attributable
to GSK) from available cash balances.
The fair value of the 54.5% ownership of the Consumer Healthcare
business distributed was £15.5 billion. This was measured by
reference to the quoted average Haleon share price over the first
five days of trading, this being a fair value measured with
observable inputs which is considered to be representative of the
fair value at the distribution date. A gain on distribution of this
fair value less book value of the attributable net assets of the
Consumer Healthcare business of £7.7 billion
was recorded in the Income
Statement in the full-year 2022. There was an additional gain of
£2.4 billion to
remeasure the retained 13.5% from its book value to fair value of
£3.9 billion using the same fair value methodology as used for
the distributed shares in the full-year 2022. The gain on
distribution and on remeasurement of the retained stake upon
demerger is presented as part of discontinued operations.
In addition, there was a
reclassification of the Group’s share of cumulative exchange
differences arising on translation of the foreign currency net
assets of the divested subsidiaries and offsetting net investment
hedges from reserves into the Income Statement of £0.6
billion. The total gain on the demerger of Consumer Healthcare was
£10.1 billion in the full-year 2022.
Following
finalisation of the demerger accounting, an adjustment of £0.5
billion to increase the gain on the demerger of Consumer Healthcare
as disclosed in Q3 2022 from £9.6 billion to £10.1
billion for the full-year has been recorded. This gain relates to
an adjustment for deferred profit in inventory. These transactions
are presented in profit from discontinued operations (adjusting
items) in the full-year 2022 results. The adjustment has been
recorded retrospectively within the Q3 2022 results and will be
reflected in the comparator for disclosure in the Q3 2023 results.
These transactions are
presented in profit from discontinued operations (adjusting items)
in the full-year 2022.
Any future gains or losses on the retained stake of 13.5% in Haleon
will be recognised in adjusting items in continuing
operations.
|
|
2022
£bn
|
|
|
Fair
value of the Consumer Healthcare business distributed
(54.5%)
|
15.5
|
Fair
value of the retained ownership in Haleon (13.5%)
|
3.9
|
|
|
Total
fair value
|
19.4
|
|
|
Carrying
amount of the net assets and liabilities
distributed/derecognised
|
(12.9)
|
Carrying
amount of the non-controlling interest de-recognised
|
3.0
|
|
|
Gain on
demerger before exchange movements and transaction
costs
|
9.5
|
Reclassification
of exchange movements on disposal of overseas
subsidiaries
|
0.6
|
|
|
Total gain on the demerger of Consumer Healthcare
|
10.1
|
|
|
Total
transaction costs incurred in Q4 2022 were £1 million and
£103 million in the year ended 2022. These transaction costs
were incurred in connection with the demerger and preparatory
admission costs related to the listing of Haleon and are reported
as part of the profit from discontinued operations in the Total to
Adjusted presentation on page 18.
|
Share Consolidation
Following
completion of the Consumer Healthcare business demerger on 18 July
2022, GSK plc Ordinary shares were consolidated to maintain share
price comparability before and after demerger. The consolidation
was approved by GSK shareholders at a General Meeting held on 6
July 2022. Shareholders received 4 new Ordinary shares with a
nominal value of 31¼ pence each for every 5 existing Ordinary
share which had a nominal value of 25 pence each. Earnings per
share, diluted earnings per share, adjusted earnings per share and
dividends per share were retrospectively adjusted to reflect the
Share Consolidation in all the periods presented.
|
Related party transactions
Details
of GSK’s related party transactions are disclosed on page 221
of our 2021 Account Report and Accounts.
|
Reconciliation of cash flow to movements in net
debt
|
|
2022
£m
|
|
2021
£m
|
|
|
|
|
Total
Net debt at beginning of the period
|
(19,838)
|
|
(20,780)
|
|
|
|
|
Decrease
in cash and bank overdrafts
|
(7,598)
|
|
(2,504)
|
Decrease
in liquid investments
|
(1)
|
|
(18)
|
Net
decrease in short-term loans
|
4,053
|
|
2,003
|
Net
decrease in long-term loans
|
569
|
|
-
|
Repayment
of lease liabilities
|
202
|
|
181
|
Debt of
subsidiary undertaking acquired
|
(24)
|
|
-
|
Exchange
adjustments
|
(1,530)
|
|
314
|
Other
non-cash movements
|
(207)
|
|
(134)
|
|
|
|
|
Decrease/(increase)
in net debt from continuing operations
|
(4,536)
|
|
(158)
|
Decrease/(increase)
in net debt from discontinued operations
|
7,177
|
|
1,100
|
|
|
|
|
Total
Net debt at end of the period
|
(17,197)
|
|
(19,838)
|
|
|
|
|
Net debt analysis
|
|
2022
£m
|
|
2021
£m
|
|
|
|
|
Liquid
investments
|
67
|
|
61
|
Cash
and cash equivalents
|
3,723
|
|
4,274
|
Short-term
borrowings
|
(3,952)
|
|
(3,601)
|
Long-term
borrowings
|
(17,035)
|
|
(20,572)
|
|
|
|
|
Total
Net debt at the end of the period
|
(17,197)
|
|
(19,838)
|
|
|
|
|
Free cash flow reconciliation from
continuing operations
|
|
2022
£m
|
|
2021
£m
|
|
Q4
2022
£m
|
|
|
|
|
|
|
Net
cash inflow from continuing operating activities
|
6,634
|
|
6,277
|
|
1,901
|
Purchase
of property, plant and equipment
|
(1,143)
|
|
(950)
|
|
(438)
|
Proceeds
from sale of property, plant and equipment
|
146
|
|
132
|
|
133
|
Purchase
of intangible assets
|
(1,115)
|
|
(1,704)
|
|
(313)
|
Proceeds
from disposals of intangible assets
|
196
|
|
641
|
|
70
|
Net
finance costs
|
(784)
|
|
(758)
|
|
(329)
|
Dividends
from joint ventures and associates
|
6
|
|
9
|
|
6
|
Contingent
consideration paid (reported in investing
activities)
|
(79)
|
|
(114)
|
|
(4)
|
Distributions
to non-controlling interests
|
(521)
|
|
(239)
|
|
(131)
|
Contributions
from non-controlling interests
|
8
|
|
7
|
|
-
|
|
|
|
|
|
|
Free
cash inflow from continuing operations
|
3,348
|
|
3,301
|
|
895
|
|
|
|
|
|
|
R&D
commentary
|
Pipeline overview
|
Medicines
and vaccines in phase III development (including major lifecycle
innovation or under regulatory review)
|
18
|
Infectious Diseases (8)
|
|
●
|
Bexsero infants vaccine (US)
|
||
●
|
SKYCovione
(SK) COVID-19
|
||
●
|
MenABCWY
(1st gen) vaccine candidate
|
||
●
|
RSV
older adult vaccine candidate
|
||
●
|
bepirovirsen
(HBV ASO) hepatitis B virus
|
||
●
|
gepotidacin
(bacterial topoisomerase inhibitor) uncomplicated urinary tract
infection and urogenital gonorrhoea
|
||
●
|
tebipenem
pivoxil (antibacterial carbapenem) complicated urinary tract
infection
|
||
●
|
Xevudy (sotrovimab/VIR-7831) COVID-19
|
||
|
|
||
Oncology (5)
|
|||
●
|
Blenrep (anti-BCMA ADC) multiple myeloma
|
||
●
|
cobolimab
(anti-TIM-3) non-small cell lung cancer
|
||
●
|
Jemperli (anti-PD-1) 1L endometrial cancer
|
||
●
|
momelotinib
(JAK1, JAK2 and ACVR1 inhibitor) myelofibrosis with
anaemia
|
||
●
|
Zejula (PARP inhibitor) 1L ovarian, lung and breast
cancer
|
||
|
|
||
Immunology (3)
|
|||
●
|
depemokimab
(long acting anti-IL5) severe eosinophilic asthma, eosinophilic
granulomatosis with polyangiitis, chronic rhinosinusitis with nasal
polyps, hyper-eosinophilic syndrome
|
||
●
|
latozinemab
(AL001, anti-sortilin) frontotemporal dementia
|
||
●
|
Nucala chronic obstructive pulmonary disease
|
||
|
|
||
Opportunity driven (2)
|
|||
●
|
daprodustat
(HIF-PHI) anaemia of chronic kidney disease
|
||
●
|
linerixibat
(IBATi) cholestatic pruritus in primary biliary
cholangitis
|
||
Total
vaccines and medicines in all phases of clinical
development
|
69
|
|
|
Total
projects in clinical development (inclusive of all phases and
indications)
|
89
|
|
Our key growth assets by
therapy area
|
The following outlines several key vaccines and medicines by
therapy area that will help drive growth for GSK to meet its
outlooks and ambition for 2021-2026 and beyond.
|
Infectious Diseases
|
bepirovirsen (HBV ASO)
|
Bepirovirsen is a potential new treatment option for people with
chronic hepatitis B as either a monotherapy or combination therapy
with both existing and novel treatments. Two randomised,
double-blind, placebo-controlled phase III trials (B-Well 1 and
B-Well 2) evaluating the safety and efficacy of bepirovirsen have
started and are actively recruiting patients.
In June 2022, GSK announced promising interim results from the
B-Clear phase IIb trial showing that bepirovirsen reduced levels of
hepatitis B surface antigen (HBsAg) and hepatitis B virus (HBV)
DNA, which together are key measures of efficacy, after 24 weeks
treatment in people with chronic hepatitis B (CHB). These data were
presented in an oral late-breaker session at the European
Association for the Study of the Liver’s International Liver
Congress (ILC) in June 2022 in London, UK. The final, B-Clear end
of study results showed that treatment with bepirovirsen resulted
in sustained seroclearance of hepatitis B surface antigen (HBsAg)
and hepatitis B virus (HBV) DNA both in patients on concurrent NA
therapy and patients not-on-NA therapy. The final results were
presented at the American Association for the Study of Liver
Diseases (AASLD) Liver Meeting in November 2022, and simultaneously
published in the New England Journal of
Medicine.
In December 2022, GSK entered into an exclusive license agreement
with biopharma company Zhimeng for CB06-036, a TLR8 agonist.
Subject to successful completion of phase I, the agreement will
allow GSK to develop, manufacture and commercialise CB06-036. If
successful, CB06-036 could be used in combination, or as a
sequential treatment with bepirovirsen, to potentially achieve
functional cure in more patients.
|
Key
trials for bepirovirsen:
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
B-Well 1 bepirovirsen in nucleos(t)ide treated patients (chronic
hepatitis B)
NCT05630807
|
III
|
A multi-centre, randomised, double-blind, placebo-controlled study
to confirm the efficacy and safety of treatment with bepirovirsen
in participants with chronic hepatitis B virus
|
Trial Start:
Q1 2023
|
Recruiting
|
B-Well 2 bepirovirsen in nucleos(t)ide treated patients (chronic
hepatitis B)
NCT05630820
|
III
|
A multi-centre, randomised, double-blind, placebo-controlled study
to confirm the efficacy and safety of treatment with bepirovirsen
in participants with chronic hepatitis B virus
|
Trial Start:
Q1 2023
|
Recruiting
|
B-Clear bepirovirsen monotherapy (chronic hepatitis B)
NCT04449029
|
IIb
|
A multi-centre, randomised, partial-blind parallel cohort trial to
assess the efficacy and safety of treatment with bepirovirsen in
participants with chronic hepatitis B virus
|
Trial start:
Q3 2020
|
Complete;
full data presented
|
B-Together bepirovirsen sequential combination therapy with
Peg-interferon phase II (chronic hepatitis B)
NCT04676724
|
II
|
A multi-centre, randomised, open label trial to assess the efficacy
and safety of sequential treatment with bepirovirsen followed by
Pegylated Interferon Alpha 2a in participants with chronic
hepatitis B virus
|
Trial start:
Q1 2021
|
Active, not recruiting
|
bepirovirsen sequential combination therapy with targeted
immunotherapy
(chronic hepatitis B)
NCT05276297
|
II
|
A trial on the safety, efficacy and immune response following
sequential treatment with an anti-sense oligonucleotide against
chronic hepatitis B (CHB) and chronic hepatitis B targeted
immunotherapy (CHB-TI) in CHB patients receiving nucleos(t)ide
analogue (NA) therapy
|
Trial start:
Q2 2022
|
Recruiting
|
gepotidacin (bacterial topoisomerase inhibitor)
|
In
November 2022, GSK announced that the pivotal phase III EAGLE-2 and
EAGLE-3 trials evaluating gepotidacin, an investigational treatment
for uncomplicated urinary tract infection (uUTI) in female adults
and adolescents, would stop enrolment early for efficacy following
a recommendation by the Independent Data Monitoring Committee
(IDMC). This decision was based on a pre-specified interim analysis
of efficacy and safety data in over 3000 patients across the
trials. The full phase III results will also be submitted for
presentation at a scientific congress and for publication in a
peer-reviewed journal in 2023. GSK is working with regulatory
authorities to commence regulatory filings for gepotidacin in H1
2023.
|
Key
phase III trials for gepotidacin:
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
EAGLE-1 (uncomplicated urogenital gonorrhoea)
NCT04010539
|
III
|
A randomised, multi-centre, open-label trial in adolescent and
adult participants comparing the efficacy and safety of gepotidacin
to ceftriaxone plus azithromycin in the treatment of uncomplicated
urogenital gonorrhoea caused by Neisseria
gonorrhoeae
|
Trial start:
Q4 2019
|
Recruiting
|
EAGLE-2 (females with uUTI / acute cystitis)
NCT04020341
|
III
|
A randomised, multi-centre, parallel-group, double-blind,
double-dummy trial in adolescent and adult female participants
comparing the efficacy and safety of gepotidacin to nitrofurantoin
in the treatment of uncomplicated urinary tract infection (acute
cystitis)
|
Trial start:
Q4 2019
|
Complete; primary endpoint met
|
EAGLE-3 (females with uUTI / acute cystitis)
NCT04187144
|
III
|
A randomised, multi-centre, parallel-group, double-blind,
double-dummy trial in adolescent and adult female participants
comparing the efficacy and safety of gepotidacin to nitrofurantoin
in the treatment of uncomplicated urinary tract infection (acute
cystitis)
|
Trial start:
Q2 2020
|
Complete; primary endpoint met
|
MenABCWY vaccine candidate
|
GSK is
developing two MenABCWY pentavalent (5-in-1) vaccines. The first
generation is in late-stage development and the second generation
is in phase II clinical development. The goal is to prevent disease
caused by meningococcal bacteria serogroups A, B, C, W, and Y.
Testing for the phase III trial of our first generation MenABCWY
candidate vaccine is being finalised, with the read out anticipated
for H1 2023 and US Food and Drug Administration (FDA) filing
expected later in the year.
|
Key
trials for MenABCWY vaccine candidate:
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
MenABCWY – 019
NCT04707391
|
IIIb
|
A randomised, controlled, observer-blind trial to evaluate safety
and immunogenicity of GSK’s meningococcal ABCWY vaccine when
administered in healthy adolescents and adults, previously primed
with meningococcal ACWY vaccine
|
Trial start:
Q1 2021
|
Active, not recruiting
|
MenABCWY – V72 72
NCT04502693
|
III
|
A randomised, controlled, observer-blind trial to demonstrate
effectiveness, immunogenicity, and safety of GSK's meningococcal
Group B and combined ABCWY vaccines when administered to healthy
adolescents and young adults
|
Trial
start:
Q3
2020
|
Complete
|
RSV vaccine candidates
|
In
November 2022, GSK submitted a New Drug Submission (NDS) to Health
Canada for its respiratory syncytial virus (RSV) older adult
vaccine candidate. GSK’s RSV older adult vaccine candidate is
also under regulatory review by the US FDA, the European Medicines
Agency (EMA) and the Japanese Ministry of Health, Labour and
Welfare (MHLW) with decisions anticipated throughout
2023.
In Q4
2022, GSK began a phase III trial to assess the RSV older adult
vaccine candidate in adults 50-59 years of age, including adults at
increased risk of RSV lower respiratory tract disease, compared to
older adults ≥60 years of age. GSK also began two new trials
to evaluate the vaccine candidate when co-administered with
adjuvanted and high dose influenza vaccines in adults aged 65 years
and above.
|
Key
phase III trials for RSV older adult and maternal vaccine
candidates:
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
RSV OA=ADJ-004
(Adults ≥ 60 years old)
NCT04732871
|
III
|
A randomised, open-label, multi-country trial to evaluate the
immunogenicity, safety, reactogenicity and persistence of a single
dose of the RSVPreF3 OA investigational vaccine and different
revaccination schedules in adults aged 60 years and
above
|
Trial start:
Q1 2021
|
Active, not recruiting; primary endpoint met
|
RSV OA=ADJ-006
(ARESVI-006; Adults ≥ 60 years old)
NCT04886596
|
III
|
A randomised, placebo-controlled, observer-blind, multi-country
trial to demonstrate the efficacy of a single dose of GSK’s
RSVPreF3 OA investigational vaccine in adults aged 60 years and
above
|
Trial start:
Q2 2021
|
Active, not recruiting; primary endpoint met
|
RSV OA=ADJ-007
(Adults ≥ 60 years old)
NCT04841577
|
III
|
An open-label, randomised, controlled, multi-country trial to
evaluate the immune response, safety and reactogenicity of RSVPreF3
OA investigational vaccine when co-administered with FLU-QIV
vaccine in adults aged 60 years and above
|
Trial start:
Q2 2021
|
Complete; primary endpoint met
|
RSV OA=ADJ-008
(Adults ≥ 65 years old)
NCT05559476
|
III
|
A phase III, open-label, randomised, controlled, multi country
study to evaluate the immune response, safety and reactogenicity of
RSVPreF3 OA investigational vaccine when co-administered with FLU
HD vaccine in adults aged 65 years and above
|
Trial start:
Q4 2022
|
Active, not recruiting
|
RSV OA=ADJ-009
(Adults ≥ 60 years old)
NCT05059301
|
III
|
A randomised, double-blind, multi-country trial to evaluate
consistency, safety, and reactogenicity of 3 lots of RSVPreF3 OA
investigational vaccine administrated as a single dose in adults
aged 60 years and above
|
Trial start:
Q4 2021
|
Complete; primary endpoint met
|
RSV OA=ADJ-017
(Adults ≥ 65 years old)
NCT05568797
|
III
|
A phase III, open-label, randomised, controlled, multi-country
study to evaluate the immune response, safety and reactogenicity of
an RSVPreF3 OA investigational vaccine when co-administered with
FLU aQIV (inactivated influenza vaccine – adjuvanted) in
adults aged 65 years and above
|
Trial start:
Q4 2022
|
Active, not recruiting
|
RSV OA=ADJ-018
(Adults 50-59 years)
NCT05590403
|
III
|
A phase III, observer-blind, randomised, placebo controlled study
to evaluate the non inferiority of the immune response and safety
of the RSVPreF3 OA investigational vaccine in adults 50 59 years of
age, including adults at increased risk of respiratory syncytial
virus lower respiratory tract disease, compared to older adults
≥60 years of age.
|
Trial start:
Q4 2022
|
Recruiting
|
GRACE (pregnant women aged 18-49 years old)
NCT04605159
|
III
|
A randomised, double-blind, placebo-controlled multi-country trial
to demonstrate efficacy of a single dose of unadjuvanted RSV
maternal vaccine, administered IM to pregnant women 18 to 49 years
of age, for prevention of RSV associated LRTIs in their infants up
to 6 months of age
|
Trial start:
Q4 2020
Trial stopped enrolment and vaccination:
Q1 2022
|
Stopped enrolment and vaccination
|
HIV
|
cabotegravir
|
ViiV Healthcare presented 12-month findings from the CARISEL study
(Cabotegravir And Rilpivirine Implementation Study in European
Locations), at the 30th HIV Glasgow Conference in Glasgow, Scotland
from 23-26 October, which evaluated the perspectives of people
living with HIV and healthcare teams through surveys and interviews
in addition to evaluating clinical effectiveness. The study
demonstrated that ViiV Healthcare’s Vocabria (cabotegravir
injection) and Janssen Pharmaceutical Companies of Johnson and
Johnson’s Rekambys (rilpivirine long-acting injectable
suspension) were successfully implemented across a range of
European healthcare settings. The study also reported that 81% of
people living with HIV found the complete long-acting regimen less
stigmatising than daily oral treatment reinforcing the importance
of continued research in HIV long-acting regimens.
|
Key
phase III trials for cabotegravir:
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
HPTN 083
(HIV uninfected cisgender men and transgender women who have sex
with men)
NCT02720094
|
IIb/III
|
A double-blind safety and efficacy trial of injectable cabotegravir
compared to daily oral tenofovir disoproxil fumarate/emtricitabine
(TDF/FTC), for Pre-Exposure Prophylaxis in HIV-uninfected cisgender
men and transgender women who have sex with men
|
Trial start:
Q4 2016
|
Active; not recruiting; primary endpoint met
(superiority)
|
HPTN 084
(HIV uninfected women who are at high risk of acquiring
HIV)
NCT03164564
|
III
|
A double-blind safety and efficacy trial of long-acting injectable
cabotegravir compared to daily oral TDF/FTC for Pre-Exposure
Prophylaxis in HIV-Uninfected women
|
Trial start:
Q4 2017
|
Active; not recruiting; primary endpoint met
(superiority)
|
ATLAS
NCT02951052
|
III
|
A randomised, multi-centre, parallel-group, non-inferiority,
open-label trial evaluating the efficacy, safety, and tolerability
of switching to long-acting cabotegravir plus long-acting
rilpivirine from current INI- NNRTI-, or PI-based antiretroviral
regimen in HIV-1-infected adults who are virologically
suppressed
|
Trial start:
Q4 2016
|
Active; not recruiting; primary endpoint met
(non-inferiority)
|
ATLAS-2M
NCT03299049
|
IIIb
|
A randomised, multi-centre, parallel-group, non-inferiority,
open-label trial evaluating the efficacy, safety, and tolerability
of long-acting cabotegravir plus long-acting rilpivirine
administered every 8 weeks or every 4 weeks in HIV-1-infected
adults who are virologically suppressed
|
Trial start:
Q4 2017
|
Active; not recruiting; primary endpoint met
(non-inferiority)
|
FLAIR
NCT02938520
|
III
|
A randomised, multi-centre, parallel-group, open-label trial
evaluating the efficacy, safety, and tolerability of long-acting
intramuscular cabotegravir and rilpivirine for maintenance of
virologic suppression following switch from an integrase inhibitor
single tablet regimen in HIV-1 infected antiretroviral therapy
naïve adult participants
|
Trial
start:
Q4
2016
|
Active; not recruiting; primary endpoint met
(non-inferiority)
|
Oncology
|
Blenrep
(belantamab mafodotin)
|
In
November 2022, GSK announced it has initiated the process for
withdrawal of the US
marketing authorisation for Blenrep following the request of the US
FDA. This request was based
on the outcome of the DREAMM-3 phase III confirmatory trial,
which did not meet the requirements of the US FDA Accelerated
Approval regulations. Additional studies within the DREAMM (DRiving
Excellence in Approaches to Multiple Myeloma) clinical trial
programme are ongoing, evaluating belantamab mafodotin in earlier
lines of therapy and in combination. We anticipate data from
DREAMM-7 and DREAMM-8 in the second-line setting in the second half
of 2023.
In
December, data presented at the American Society of Hematology
(ASH) Annual Meeting and Exposition featured new findings from
clinical trials of belantamab mafodotin in relapsed/refractory and
newly diagnosed multiple myeloma, focusing on the potential of combination approaches for belantamab
mafodotin through our investigator-sponsored studies and
supported collaborative studies. Updated results from ALGONQUIN
evaluating the combination of belantamab mafodotin with
pomalidomide and dexamethasone
in relapsed/refractory patients who received two or more prior
lines of treatment demonstrated a significantly longer
progression-free survival compared with a historical control
cohort. Additionally, results from BelaRd, a dose and schedule
evaluation study to investigate the safety and clinical activity of
belantamab mafodotin in combination with lenalidomide and dexamethasone in patients
with transplant-ineligible newly diagnosed multiple myeloma, showed
a strong efficacy and a manageable safety profile.
In addition, a presentation of the final analysis of the
long-term safety and efficacy data for the DREAMM-2 trial showed
deep and durable response of belantamab mafodotin for the treatment
of patients with relapsed or refractory multiple myeloma who have
received at least three prior therapies including an anti-CD38
monoclonal antibody, a proteasome inhibitor, and an
immunomodulatory agent.
|
Key
phase III trials for Blenrep:
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
DREAMM-3 (3L/4L+ MM pts who have failed Len + PI)
NCT04162210
|
III
|
An open-label, randomised trial to evaluate the efficacy and safety
of single-agent belantamab mafodotin compared to pomalidomide plus
low dose dexamethasone (pom/dex) in participants with
relapsed/refractory multiple myeloma
|
Trial start:
Q2 2020
|
Active, not recruiting; primary endpoint not met
|
DREAMM-7 (2L+ MM pts)
NCT04246047
|
III
|
A multi-centre, open-label, randomised trial to evaluate the
efficacy and safety of the combination of belantamab mafodotin,
bortezomib, and dexamethasone (B-Vd) compared with the combination
of daratumumab, bortezomib and dexamethasone (D-Vd) in participants
with relapsed/refractory multiple myeloma
|
Trial start:
Q2 2020
|
Active, not recruiting
|
DREAMM-8 (2L+ MM pts)
NCT04484623
|
III
|
A multi-centre, open-label, randomised trial to evaluate the
efficacy and safety of belantamab mafodotin in combination with
pomalidomide and dexamethasone (B-Pd) versus pomalidomide plus
bortezomib and dexamethasone (P-Vd) in participants with
relapsed/refractory multiple myeloma
|
Trial start:
Q4 2020
|
Enrolment complete
|
Jemperli
(dostarlimab)
|
In
December, GSK announced positive headline results from the planned
interim analysis of Part 1 of the RUBY/ENGOT-EN6/GOG3031/NSGO phase
III trial investigating Jemperli (dostarlimab) plus
standard-of-care chemotherapy (carboplatin-paclitaxel) followed by
Jemperli compared to
chemotherapy plus placebo followed by placebo in adult patients
with primary advanced or recurrent endometrial cancer. The trial
met its primary endpoint of investigator-assessed progression-free
survival (PFS) and showed a statistically significant and
clinically meaningful benefit in the prespecified mismatch repair
deficient (dMMR)/microsatellite instability-high (MSI-H) patient
subgroup and in the overall population. The safety and tolerability
profile of dostarlimab in the RUBY phase III trial was consistent
with clinical trials of similar regimens.
While
the overall survival (OS) data were immature at the time of this
analysis, a favourable trend was observed in the overall
population, including both the dMMR/MSI-H and MMRp/MSS subgroups.
Full results from the trial will be published in a medical journal
and presented at an upcoming scientific meeting.
GSK
also announced full results of the PERLA phase II trial at the
European Society for Medical Oncology (ESMO) Immuno-Oncology
Congress 2022 in Geneva, Switzerland. The trial evaluated
dostarlimab in combination with chemotherapy versus pembrolizumab
in combination with chemotherapy in first-line patients with
metastatic non-squamous non-small cell lung cancer
(NSCLC).
The PERLA phase II trial is a randomised, double-blind trial of 243
patients and is the largest global head-to-head trial of PD-1
inhibitors in this population. The confirmed objective response rate was 46% in
patients treated with investigational dostarlimab combination
versus 37% in the pembrolizumab combination. The key secondary
endpoint of median progression-free survival was 8.8 months in the
dostarlimab treatment arm versus 6.7 months in the pembrolizumab
treatment arm.
|
Key
trials for Jemperli:
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
RUBY
ENGOT-EN6
GOG-3031 (1L Stage III or IV endometrial cancer)
NCT03981796
|
III
|
A randomised, double-blind, multi-centre trial of dostarlimab
(TSR-042) plus carboplatin-paclitaxel with and without niraparib
maintenance versus placebo plus carboplatin-paclitaxel in patients
with recurrent or primary advanced endometrial cancer
|
Trial start:
Q3 2019
|
Active, not recruiting
|
PERLA (1L metastatic non-small cell lung cancer)
NCT04581824
|
II
|
A randomised, double-blind study to evaluate the efficacy of
dostarlimab plus chemotherapy versus pembrolizumab plus
chemotherapy in metastatic non-squamous non-small cell lung
cancer
|
Trial start:
Q4 2020
|
Active, not recruiting; primary endpoint met
|
GARNET
|
I/II
|
A multi-center, open-label, first-in-human study evaluating
dostarlimab (TSR-042) in participants with advanced solid tumors
who have limited available treatment options
|
Trial start:
Q1 2016
|
Active, recruiting
|
momelotinib (JAK1/2 and ACVR1/ALK2 inhibitor)
|
In
January 2023, 24-week data from the MOMENTUM phase III trial, that
evaluated momelotinib in patients with myelofibrosis who were
symptomatic and anaemic and had been previously treated with an
FDA-approved JAK inhibitor, were published in The Lancet. Treatment with momelotinib,
compared with danazol, resulted in clinically significant
improvements in myelofibrosis-associated symptoms, anaemia
measures, and spleen response, with favourable safety. These
findings support the potential use of momelotinib as an effective
treatment in patients with myelofibrosis, especially in those with
anaemia.
At ASH
2022, GSK presented 7 abstracts for momelotinib including the
48-week data from the MOMENTUM trial. In this updated analysis,
momelotinib maintained 24-week symptom, transfusion independence
and spleen responses with continued favourable safety. Momelotinib
is the only agent to demonstrate this outcome in a key pivotal
trial.
GSK
also announced that the EMA validated the marketing authorisation
application (MAA) for momelotinib, a potential new oral treatment
for myelofibrosis. A Committee for Medicinal Products for Human Use
(CHMP) regulatory action is anticipated by year-end 2023, and a New
Drug Application for momelotinib is currently under regulatory
review with the US FDA.
|
Key
phase III trial for momelotinib:
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
MOMENTUM (myelofibrosis)
NCT04173494
|
III
|
A randomised, double-blind, active control phase III trial intended
to confirm the differentiated clinical benefits of the
investigational drug momelotinib (MMB) versus danazol (DAN) in
symptomatic and anaemic subjects who have previously received an
approved Janus kinase inhibitor (JAKi) therapy for myelofibrosis
(MF)
|
Trial start:
Q1 2020
|
Active, not recruiting; primary endpoint met
|
Zejula
(niraparib)
|
In November, GSK provided an update that at the request of the US
FDA it will restrict the second-line maintenance indication
for Zejula (niraparib) to only the patient population with
deleterious or suspected deleterious germline BRCA mutations
(gBRCAmut). The US first-line indication of Zejula remains unchanged for the maintenance treatment of
adult patients with advanced epithelial ovarian, fallopian tube, or
primary peritoneal cancer who have a complete or partial response
to platinum-based chemotherapy.
GSK received a favourable opinion from the CHMP of the EMA
supporting the existing indication for Zejula in the relapsed ovarian cancer maintenance
setting, based on a review of all available clinical data.
Zejula
continues to be an important
maintenance treatment option for appropriate patients in the
second-line or later setting and for patients who are in complete
or partial response to first-line platinum-based
chemotherapy.
|
Key
phase III trials for Zejula:
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
ZEAL-1L (maintenance for 1L advanced NSCLC)
NCT04475939
|
III
|
A randomised, double-blind, placebo-controlled, multi-centre trial
comparing niraparib plus pembrolizumab versus placebo plus
pembrolizumab as maintenance therapy in participants whose disease
has remained stable or responded to first-line platinum-based
chemotherapy with pembrolizumab for Stage IIIB/IIIC or IV non-small
cell lung cancer
|
Trial start:
Q4 2020
|
Active, not recruiting
|
ZEST (Her2- with BRCA-mutation, or TNBC)
NCT04915755
|
III
|
A randomised double-blinded trial comparing the efficacy and safety
of niraparib to placebo in participants with either HER2-negative
BRCA-mutated or triple-negative breast cancer with molecular
disease based on presence of circulating tumour DNA after
definitive therapy
|
Trial start:
Q2 2021
|
Recruiting
|
FIRST (1L ovarian cancer maintenance)
NCT03602859
|
III
|
A randomised, double-blind, comparison of platinum-based therapy
with dostarlimab (TSR-042) and niraparib versus standard of care
platinum-based therapy as first-line treatment of stage III or IV
non-mucinous epithelial ovarian cancer
|
Trial start:
Q4 2018
|
Active, not recruiting
|
Immunology
|
depemokimab (ultra-long-acting anti-IL5)
|
The phase III programme for our ultra-long-acting IL5 inhibitor,
depemokimab continues to make progress across a range of
eosinophil-driven diseases. Phase III trials of depemokimab began
this year in eosinophilic granulomatosis with polyangiitis (EGPA),
chronic rhinosinusitis with nasal polyps (CRSwNP) and
hypereosinophilic syndrome (HES). Trials of depemokimab in severe
eosinophilic asthma which started in 2021 continued throughout 2022
with the open label extension of these studies starting recruitment
in Q1 of 2022. Depemokimab is a unique and distinct monoclonal
antibody developed specifically for its affinity for IL-5 and long
duration of inhibition.
|
Key
phase III trials for depemokimab:
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
SWIFT-1 (severe eosinophilic asthma; SEA)
NCT04719832
|
III
|
A 52-week, randomised, double-blind, placebo-controlled,
parallel-group, multi-centre trial of the efficacy and safety of
depemokimab adjunctive therapy in adult and adolescent participants
with severe uncontrolled asthma with an eosinophilic
phenotype
|
Trial start:
Q1 2021
|
Recruiting
|
SWIFT-2 (SEA)
NCT04718103
|
III
|
A 52-week, randomised, double-blind, placebo-controlled,
parallel-group, multi-centre trial of the efficacy and safety of
depemokimab adjunctive therapy in adult and adolescent participants
with severe uncontrolled asthma with an eosinophilic
phenotype
|
Trial start:
Q1 2021
|
Recruiting
|
AGILE (SEA)
NCT05243680
|
III (extension)
|
A 52-week, open label extension phase of SWIFT-1 and SWIFT-2 to
assess the long-term safety and efficacy of depemokimab adjunctive
therapy in adult and adolescent participants with severe
uncontrolled asthma with an eosinophilic phenotype
|
Trial start: Q1 2022
|
Recruiting
|
NIMBLE (SEA)
NCT04718389
|
III
|
A 52-week, randomised, double-blind, double-dummy, parallel group,
multi-centre, non-inferiority trial assessing exacerbation rate,
additional measures of asthma control and safety in adult and
adolescent severe asthmatic participants with an eosinophilic
phenotype treated with depemokimab compared with mepolizumab or
benralizumab
|
Trial start:
Q1 2021
|
Recruiting
|
ANCHOR-1 (CRSwNP)
NCT05274750
|
III
|
Efficacy and safety of depemokimab in participants with
CRSwNP
|
Trial start:
Q2 2022
|
Recruiting
|
ANCHOR-2 (CRSwNP)
NCT05281523
|
III
|
Efficacy and safety of depemokimab in participants with
CRSwNP
|
Trial start:
Q2 2022
|
Recruiting
|
OCEAN (EGPA)
NCT05263934
|
III
|
Efficacy and safety of depemokimab compared with mepolizumab in
adults with relapsing or refractory EGPA
|
Trial start:
Q3 2022
|
Recruiting
|
DESTINY (HES)
NCT05334368
|
III
|
A 52-week, randomised, placebo-controlled, double-blind, parallel
group, multicentre trial of depemokimab in adults with uncontrolled
HES receiving standard of care (SoC) therapy
|
Trial start:
Q4 2022
|
Recruiting
|
Opportunity driven
|
daprodustat (oral hypoxia-inducible factor prolyl hydroxylase
inhibitor)
|
Daprodustat
is currently under regulatory review with the US FDA and EMA.
Regulatory decisions are anticipated in the first half of
2023.
When
left untreated or undertreated, anaemia of CKD is associated with
poor clinical outcomes and leads to a substantial burden on
patients and healthcare systems. There remains an unmet need for
convenient treatment options with efficacy and safety comparable to
current treatments.
|
Key
phase III trials for daprodustat:
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
ASCEND-D (Dialysis subjects with anaemia of CKD)
NCT02879305
|
III
|
A randomised, open-label (sponsor-blind), active-controlled,
parallel-group, multi-centre, event driven trial in dialysis
subjects with anaemia associated with chronic kidney disease to
evaluate the safety and efficacy of daprodustat compared to
recombinant human erythropoietin, following a switch from
erythropoietin-stimulating agents
|
Reported
|
Complete; primary endpoint met
|
ASCEND-ID (Incident Dialysis subjects with anaemia of
CKD)
NCT03029208
|
III
|
A 52-week open-label (sponsor-blind), randomised,
active-controlled, parallel-group, multi-centre trial to evaluate
the efficacy and safety of daprodustat compared to recombinant
human erythropoietin in subjects with anaemia of chronic kidney
disease who are initiating dialysis
|
Reported
|
Complete; primary endpoint met
|
ASCEND-TD (Dialysis subjects with anaemia of CKD)
NCT03400033
|
III
|
A randomised, double-blind, active-controlled, parallel-group,
multi-centre trial in haemodialysis participants with anaemia of
chronic kidney disease to evaluate the efficacy, safety, and
pharmacokinetics of three-times weekly dosing of daprodustat
compared to recombinant human erythropoietin, following a switch
from recombinant human erythropoietin or its analogues
|
Reported
|
Complete; primary endpoint met
|
ASCEND-ND (Non-dialysis subjects with anaemia of CKD)
NCT02876835
|
III
|
A randomised, open-label (sponsor-blind), active-controlled,
parallel-group, multi-centre, event driven trial in non-dialysis
subjects with anaemia of chronic kidney disease to evaluate the
safety and efficacy of daprodustat compared to darbepoetin
alfa
|
Reported
|
Complete; primary endpoint met
|
ASCEND-NHQ (Non-dialysis subjects with anaemia of CKD)
NCT03409107
|
III
|
A 28-week, randomised, double-blind, placebo-controlled,
parallel-group, multi-centre, trial in recombinant human
erythropoietin (rhEPO) naïve non-dialysis participants with
anaemia of chronic kidney disease to evaluate the efficacy, safety,
and effects on quality of life of daprodustat compared to
placebo
|
Reported
|
Complete; primary endpoint met
|
Reporting
definitions
|
Total, Continuing and Adjusted results
Total
reported results represent the Group’s overall performance
including discontinued operations. Continuing results represents
performance excluding discontinued operations.
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 39 and other non-IFRS measures
are defined below and are based on continuing
operations.
Free cash flow from continuing operations
Free
cash flow is defined as the net cash inflow/outflow from continuing
operating activities less capital expenditure on property, plant
and equipment and intangible assets, contingent consideration
payments, net finance costs, and dividends paid to non-controlling
interests, contributions from non-controlling interests plus
proceeds from the sale of property, plant and equipment and
intangible assets, and dividends received from joint ventures and
associates (all attributable to continuing operations). 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 continuing
operations to free cash flow from continuing operations is set out
on page 57.
Free cash flow conversion
Free
cash flow conversion is free cash flow from continuing operations
as a percentage of profit attributable to shareholders from
continuing operations.
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.
Total Net debt
Net debt is defined as total borrowings less cash, cash
equivalents, liquid investments, and short-term loans to third
parties that are subject to an insignificant risk of change in
value.
Share Consolidation
Shareholders
received 4 new Ordinary shares with a nominal value of 31¼
pence each for every 5 existing Ordinary share which had a nominal
value of 25 pence each. Earnings per share, diluted earnings per
share, adjusted earnings per share and dividends per share were
retrospectively adjusted to reflect the Share Consolidation in all
the periods presented.
Earnings per share
Earnings
per share has been retrospectively adjusted for the Share
Consolidation on 18 July 2022, applying a ratio of 4 new Ordinary
shares for every 5 existing Ordinary shares.
Total Earnings per share
Unless
otherwise stated, Total earnings per share refers to Total basic
earnings per share.
Total Operating Margin
Total Operating margin is operating profit divided by
turnover.
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.
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
|
2023 guidance
GSK
expects 2023 turnover to increase between 6 to 8 per cent, Adjusted
operating profit to increase between 10 to 12 per cent and Adjusted
earnings per share to increase between 12 to 15 per cent. This
guidance is provided at CER and excludes any contributions from
COVID-19 solutions.
Assumptions related to 2023 guidance
In
outlining the guidance for 2023, 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. Due to the phasing of quarterly results in 2022 and the
resulting comparators, GSK expects turnover and Adjusted operating
profit growth to be slightly lower in the first half of 2023
including a challenging comparator in Q1 2022 and somewhat higher
in the second half, relative to full-year expectations. Despite the
recovery of healthcare systems, uncertain economic conditions
prevail across many markets in which GSK operates and we continue
to expect to see variability in performance between
quarters.
We
expect sales of Specialty Medicines to increase mid to high
single-digit per cent, sales of Vaccines to increase mid-teens per
cent and sales of General Medicines to decrease
slightly.
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 2023 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. 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’ and other words and
terms of similar meaning in connection with any discussion of
future operating or financial performance. In particular, these
include statements relating to future actions, prospective products
or product approvals, future performance or results of current and
anticipated products, sales efforts, expenses, the outcome of
contingencies such as legal proceedings, dividend payments and
financial results. Other than in accordance with its legal or
regulatory obligations (including under the Market Abuse
Regulation, the UK Listing Rules and the Disclosure and
Transparency Rules of the Financial Conduct Authority), the Group
undertakes no obligation to update any forward-looking statements,
whether as a result of new information, future events or otherwise.
The reader should, however, consult any additional disclosures that
the Group may make in any documents which it publishes and/or files
with the SEC. All readers, wherever located, should take note of
these disclosures. Accordingly, no assurance can be given that any
particular expectation will be met and investors are cautioned not
to place undue reliance on the forward-looking
statements.
All outlooks, ambitions and expectations should be read together
with pages 5-7 of the Stock Exchange announcement relating to an
update to investors dated 23 June 2021, paragraph 19 of Part 7 of
the Circular to shareholders relating to the demerger of Haleon
dated 1 June 2022 and the Guidance, assumptions and cautionary
statements in this Q4 2022 earnings release.
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 2021 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.
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GSK plc
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(Registrant)
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Date:
February 1, 2023
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By:/s/ VICTORIA
WHYTE
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Victoria Whyte
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Authorised
Signatory for and on
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behalf
of GSK plc
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