|
|
|
Strong year-to-date and Q3
performance drives upgrade to full-year
guidance
|
|
Broad-based execution drives further sales and earnings
growth:
|
|
|
●
|
Total
Q3 2023 sales +10% and +16% ex COVID
|
|
●
|
Vaccines
sales +33%, +34% ex COVID. Shingrix £0.8 billion
+15%, Arexvy sales £0.7
billion
|
|
●
|
Specialty
Medicines sales -1%, +17% ex COVID with HIV +15%
|
|
●
|
General
Medicines sales -2% with impact of generic competition to older
products, in part offset by Trelegy +23%
|
|
●
|
Total
operating profit and Total continuing EPS reflects strong growth in
the quarter and year to date with lower charges for contingent
consideration liabilities remeasurement
|
|
●
|
Adjusted
operating profit +15% and Adjusted EPS +17% reflects strong
execution, resilient growth and higher royalty income in part
offset by increased investment in R&D, new product launches and
a seven percentage point operating profit reduction from lower
COVID-19 solutions sales
|
|
(Financial Performance - Q3 2023 results unless otherwise stated,
growth % and commentary at CER, ex COVID is excluding COVID-19
solutions as defined on page 51).
|
|
|
|
Q3 2023
|
|
Year to Date
|
||||||||
|
|
£m
|
|
%
AER
|
|
%
CER
|
|
£m
|
|
%
AER
|
|
%
CER
|
|
Turnover
|
8,147
|
|
4
|
|
10
|
|
22,276
|
|
1
|
|
2
|
|
Turnover ex COVID
|
8,146
|
|
10
|
|
16
|
|
22,102
|
|
12
|
|
13
|
|
Total operating profit
|
1,949
|
|
64
|
|
83
|
|
6,172
|
|
35
|
|
39
|
|
Total continuing EPS
|
36.1p
|
|
92
|
|
>100
|
|
113.0p
|
|
54
|
|
59
|
|
Adjusted
operating profit
|
2,772
|
|
6
|
|
15
|
|
7,034
|
|
7
|
|
10
|
|
Adjusted
operating margin %
|
34.0%
|
|
0.8ppts
|
|
1.7ppts
|
|
31.6%
|
|
1.7ppts
|
|
2.2ppts
|
|
Adjusted
EPS
|
50.4p
|
|
7
|
|
17
|
|
126.2p
|
|
11
|
|
14
|
|
Cash generated from operations
|
2,508
|
|
32
|
|
|
|
4,415
|
|
(24)
|
|
|
|
R&D delivery underpins longer-term growth outlook:
|
|
|
●
|
Arexvy approved in Japan as
country's first RSV vaccine for older adults; positive preliminary
phase III data in adults aged 50-59 presented at ACIP and support
regulatory filings
|
|
●
|
New Shingrix data
demonstrates 100% efficacy in preventing shingles in adults aged
50+ in China; co-promotion partnership in China with Zhifei
announced, set to begin in 2024
|
|
●
|
Apretude long-acting treatment
approved for HIV prevention in EU; clinical development plans
advancing for innovative long-acting treatment and prevention
regimens with data anticipated in 2024
|
|
●
|
Ojjaara approved by US FDA as
first and only line agnostic treatment for myelofibrosis patients
with anaemia
|
|
●
|
Jemperli plus chemotherapy
approved in US as new frontline treatment for endometrial
cancer
|
|
●
|
Agreement
to acquire worldwide rights to Janssen's JNJ-3989, which may have
potential to further increase functional cure rates of bepirovirsen
in chronic hepatitis B treatment
|
|
2023 guidance upgrade, Q3 2023 dividend of 14p declared, 56.5p
expected for full year
|
|
|
●
|
Turnover
to increase 12 to 13% (from 8 to 10%)
|
|
●
|
Adjusted
operating profit growth 13 to 15% (from 11 to 13%)
|
|
●
|
Adjusted
EPS growth 17 to 20% (from 14 to 17%)
|
|
Guidance all at CER and excluding COVID-19
solutions.
|
|
|
Emma Walmsley, Chief Executive Officer, GSK:
"GSK is
delivering strong and sustained performance momentum, with another
quarter of double-digit sales and earnings growth. Competitive
performance was broadly based but benefitted particularly from the
outstanding US launch of Arexvy, the world's first RSV vaccine.
Our excellent execution supports an upgrade to our full-year 2023
guidance and we have clear momentum as we look ahead to deliver our
2026 outlooks. GSK's longer-term outlook also continues to
strengthen, with progress in our vaccines pipeline, the development
of our ultra long-acting HIV portfolio and significant new
prospects in respiratory."
|
|
The Total results are presented in summary above and on page 7 and
Adjusted results reconciliations are presented on pages 19, 20, 22
and 23. 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 17 and £% or AER% growth, CER% growth,
turnover excluding COVID-19 solutions and other non-IFRS measures
are defined on page 51, COVID-19 solutions are defined on page 51.
GSK provides guidance on an Adjusted results basis only, for the
reasons set out on page 17. All expectations, guidance and targets
regarding future performance and dividend payments should be read
together with 'Guidance, assumptions and cautionary statements' on
page 52.
|
|
2023 guidance
|
|
GSK has
upgraded its full-year guidance at constant exchange rates (CER).
All expectations and full-year growth rates exclude any
contributions from COVID-19 solutions.
In the
year to date, GSK has exceeded its full-year guidance expectations
due to the continued strong and broad-based performance of its
business, including successful launch of Arexvy in Q3 2023, which has
also benefitted from initial channel inventory build. Currently,
GSK assumes sales of Arexvy will track in line with
high-dose flu analogues. For the full year, the company
expects Arexvy sales between £0.9
to £1 billion.
|
|
Turnover is expected to increase
between 12 to 13 per cent (from 8 to 10 per cent)
|
|
Adjusted operating profit is expected to increase
between 13 to 15 per cent (from 11 to 13 per cent)
|
|
Adjusted earnings per share is expected to increase
between 17 to 20 per cent (from 14 to 17 per cent)
|
|
This
guidance is supported by the following turnover expectations for
full-year 2023 at CER:
|
|
Vaccines
|
-
|
expected increase
of around 20 per cent in turnover (increased from mid-teens)
|
|
Specialty
Medicines
|
-
|
expected increase
of low double-digit per cent in turnover (from a high single-digit
increase)
|
|
General
Medicines
|
-
|
expected increase
of low to mid-single-digit per cent in turnover (from low single-digit
increase)
|
|
The
increase in Adjusted Operating profit reflects both higher sales
and royalty income partially offset by the cost of sales which
continues to be expected to increase broadly in line with turnover.
SG&A is anticipated to increase at a rate broadly aligned to
turnover, reflecting new launches and targeted investment for
growth. R&D is expected to continue to increase at a rate
slightly below turnover. Adjusted earnings per share is now
expected to increase between 17 to 20 per cent at CER, reflecting
higher operating profit and more favourable net finance costs.
Expectations for non-controlling interests are unchanged, and the
company anticipates an effective tax rate between
15%-15.5%.
|
|
Additional commentary
|
|
The
Dividend policy and the expected pay-out ratio remain unchanged.
GSK's future dividend policy and guidance regarding the expected
dividend pay-out in 2023 are provided on page 38.
|
|
COVID-19 solutions
|
|
In Q3
2023, turnover increased by 10% at CER and reflected the comparison
to Q3 2022. Excluding COVID-19 solutions, turnover increased by 16%
at CER. The adverse impact of lower sales of COVID-19 solutions was
seven percentage points of growth in the quarter on Adjusted
operating profit. GSK does not anticipate further significant
COVID-19 pandemic-related sales or operating profit in 2023.
Consequently, the company now expects its full-year 2023 turnover
growth to be impacted by approximately 8%, with Adjusted Operating
profit growth being reduced between 4% to 5% versus the prior
year.
All
expectations, guidance and targets regarding future performance and
dividend payments should be read together with 'Guidance,
assumptions and cautionary statements' on page 52. If exchange
rates were to hold at the closing rates on 30 Sep 2023
($1.23/£1, €1.16/£1 and Yen 183/£1) for the
rest of 2023, the estimated impact on 2023 Sterling turnover growth
for GSK would be -2% 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 be
-4%.
|
|
Results presentation
|
|
A
conference call and webcast for investors and analysts of the
quarterly results will be hosted by Emma Walmsley, CEO, at 12pm GMT
(US EDT at 8am) on 1 November 2023. Presentation materials will be
published on www.gsk.com prior to the webcast and a transcript of
the webcast will be published subsequently.
Notwithstanding
the inclusion of weblinks, information available on the company's
website, or from non GSK sources, is not incorporated by reference
into this Results Announcement.
|
|
Performance:
turnover
|
|
Turnover
|
Q3
2023
|
|
Year to
date
|
||||||||
|
|
£m
|
|
Growth
AER%
|
|
Growth
CER%
|
|
£m
|
|
Growth
AER%
|
|
Growth
CER%
|
|
Shingles
|
825
|
|
9
|
|
15
|
|
2,538
|
|
16
|
|
15
|
|
Meningitis
|
441
|
|
-
|
|
3
|
|
987
|
|
11
|
|
11
|
|
RSV
(Arexvy)
|
709
|
|
-
|
|
-
|
|
709
|
|
-
|
|
-
|
|
Influenza
|
374
|
|
(4)
|
|
(4)
|
|
409
|
|
(7)
|
|
(7)
|
|
Established
Vaccines
|
868
|
|
(2)
|
|
3
|
|
2,495
|
|
7
|
|
6
|
|
Vaccines ex COVID
|
3,217
|
|
30
|
|
34
|
|
7,138
|
|
22
|
|
21
|
|
Pandemic
vaccines
|
1
|
|
(83)
|
|
(67)
|
|
143
|
|
>100
|
|
>100
|
|
Vaccines
|
3,218
|
|
30
|
|
33
|
|
7,281
|
|
24
|
|
24
|
|
HIV
|
1,623
|
|
9
|
|
15
|
|
4,671
|
|
15
|
|
14
|
|
Respiratory/Immunology
and
Other
|
769
|
|
12
|
|
18
|
|
2,162
|
|
15
|
|
15
|
|
Oncology
|
200
|
|
22
|
|
26
|
|
487
|
|
9
|
|
9
|
|
Specialty Medicines ex COVID
|
2,592
|
|
11
|
|
17
|
|
7,320
|
|
14
|
|
14
|
|
Xevudy
|
-
|
|
(100)
|
|
(100)
|
|
31
|
|
(99)
|
|
(99)
|
|
Specialty Medicines
|
2,592
|
|
(6)
|
|
(1)
|
|
7,351
|
|
(14)
|
|
(15)
|
|
Respiratory
|
1,520
|
|
(10)
|
|
(3)
|
|
5,079
|
|
4
|
|
5
|
|
Other
General Medicines
|
817
|
|
(11)
|
|
-
|
|
2,565
|
|
(3)
|
|
4
|
|
General Medicines
|
2,337
|
|
(10)
|
|
(2)
|
|
7,644
|
|
2
|
|
5
|
|
Total
|
8,147
|
|
4
|
|
10
|
|
22,276
|
|
1
|
|
2
|
|
Total ex COVID
|
8,146
|
|
10
|
|
16
|
|
22,102
|
|
12
|
|
13
|
|
By Region:
|
|
|
|
|
|
|
|
|
|
|
|
|
US
|
4,560
|
|
14
|
|
19
|
|
11,440
|
|
5
|
|
4
|
|
Europe
|
1,559
|
|
5
|
|
5
|
|
4,907
|
|
5
|
|
2
|
|
International
|
2,028
|
|
(13)
|
|
(2)
|
|
5,929
|
|
(6)
|
|
-
|
|
Total
|
8,147
|
|
4
|
|
10
|
|
22,276
|
|
1
|
|
2
|
|
Turnover ex COVID is excluding COVID-19 solutions and is a non-IFRS
measure defined on page 51 with the reconciliation to the IFRS
measure Turnover included in the table above.
|
|
|
|
Q3 2023
|
|
Year to date
|
||||
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
Vaccines
|
Total
|
3,218
|
30%
|
33%
|
|
7,281
|
24%
|
24%
|
|
Excluding COVID
|
3,217
|
30%
|
34%
|
|
7,138
|
22%
|
21%
|
|
|
|
|
|
|
|
|
|
|
|
|
Double-digit
growth for Vaccines in Q3 23 and YTD was driven by the successful
launch of Arexvy in the US and continued
strong uptake of Shingrix in International and
Europe. Pandemic vaccines sales mostly include GSK's share of 2023
contracted European volumes related to a COVID-19 booster vaccine
co-developed with Sanofi.
|
||||||||
|
Shingles
|
825
|
9%
|
15%
|
|
2,538
|
16%
|
15%
|
|
|
|
|
|
|
|
|
|
|
Shingrix, a vaccine against herpes zoster (shingles), grew
15% in Q3 23 on increased demand and favourable pricing. Growth was
driven by strong private uptake and public funding expansion in
International and Europe. These regions represented half of the Q3
23 turnover compared to less than 40% in Q3 22, with Shingrix now available in 38
countries outside of the US, most of which have cumulative
immunisation rates in the low single digits. Europe sales included
deliveries for the UK National Immunisation Programme which began
offering Shingrix vaccination in
September. In the US, retail demand grew 4% in the quarter and 7%
YTD while overall US turnover declined 6% CER in Q3 23 and 7% CER
YTD versus a challenging comparator period in which there was
higher non-retail purchasing. YTD results were also impacted by a
H1 22 wholesaler and distributor inventory build. The US cumulative
immunisation penetration grew 5% from Q3 22 to the end of Q2 23
reaching 33% of the more than 120 million US adults(1) who are currently
recommended to receive Shingrix.
|
|||||||
|
(1)
|
United States Census Bureau, International Database, Year
2023.
|
|
|
Q3 2023
|
|
Year to date
|
||||
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
Meningitis
|
441
|
-
|
3%
|
|
987
|
11%
|
11%
|
|
|
|
|
|
|
|
|
|
|
YTD
double-digit Meningitis vaccine sales growth was largely delivered
by Bexsero, our vaccine against meningitis
B, driven by inclusion in National Immunisation Programmes in
Europe. In the US, Menveo, a vaccine against meningitis
ACWY, grew and Bexsero maintained YTD market
share. In the quarter, Meningitis vaccines sales growth was largely
due to the favourable impact of a Menveo US CDC (Center for
Disease Control) stockpile borrow in Q3 22, partly offset by lower
sales in International. Bexsero Q3 23 sales were flat
while Bexsero grew in Europe in the
quarter, the US declined as a result of CDC purchasing patterns and
lower demand leaving performance flat.
|
|||||||
|
RSV
(Arexvy)
|
709
|
-
|
-
|
|
709
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
Arexvy, the world's first approved respiratory syncytial
virus (RSV) vaccine for older adults, delivered significant sales
in its first quarter since launch driven by strong demand and
initial channel inventory build. Almost all sales were in the US
where Arexvy is available in all
major retail pharmacies with competitive contracting in place. More
than 90% of Q3 23 doses shipped from wholesalers was to retailers,
and Arexvy achieved two-thirds of
the share of retail vaccinations in the quarter. YTD, 1.4 million
of the more than 83 million US adults(1) at risk have been
protected by Arexvy.
|
|||||||
|
Influenza
|
374
|
(4%)
|
(4%)
|
|
409
|
(7%)
|
(7%)
|
|
|
|
|
|
|
|
|
|
|
Fluarix/FluLaval sales declined in Q3 23
driven by competitive pressure primarily in the US.
|
|||||||
|
Established
Vaccines
|
868
|
(2%)
|
3%
|
|
2,495
|
7%
|
6%
|
|
|
|
|
|
|
|
|
|
|
Established
Vaccines Q3 23 performance was driven by resupply of MMR/V vaccines
in Europe and positive phasing for Synflorix in International,
partly offset by increased competition in the US and constrained
supply in Europe for Infanrix/Pediarix. YTD sales also
include favourable CDC stockpile movements for Rotarix in the US and continued
travel market recovery benefiting Hepatitis vaccine sales in Europe
and International.
|
|||||||
|
Specialty Medicines
|
Total
|
2,592
|
(6%)
|
(1%)
|
|
7,351
|
(14%)
|
(15%)
|
|
Excluding COVID
|
2,592
|
11%
|
17%
|
|
7,320
|
14%
|
14%
|
|
|
Specialty
Medicines growth (excluding COVID-19 solutions) in Q3 23 reflected
increased performance in the quarter, with continued growth
momentum on the HIV portfolio and growth acceleration in both
Oncology and Respiratory/Immunology and Other. In Q3 23 there were
minimal sales of Xevudy contrasting with strong
International sales in Q3 22, resulting in a drag of 18 percentage
points (CER) in Q3 23, and a 29 percentage points (CER) drag
YTD.
|
||||||||
|
HIV
|
1,623
|
9%
|
15%
|
|
4,671
|
15%
|
14%
|
|
|
|
|
|
|
|
|
|
|
The
growth of HIV in Q3 23 and YTD was primarily driven by a 2
percentage point increase in market share within a broadly flat
global treatment market, attributable to patient demand for the
Oral 2DR (Dovato, Juluca) and Long-Acting medicines
(Cabenuva, Apretude). YTD patient demand
contributed approximately 10 percentage points of sales growth,
with the remainder from favourable pricing, customer ordering
patterns and tender phasing. Growth in Q3 23 was mainly driven by
continued patient demand for Oral 2DR and Long-Acting medicines and
tender phasing. Dovato continues to be the
highest selling product in the HIV portfolio with sales of
£477 million in the quarter.
|
|||||||
|
Oral
2DR and Long-Acting
|
867
|
38%
|
43%
|
|
2,369
|
47%
|
46%
|
|
|
|
|
|
|
|
|
|
|
Oral
2DR (Dovato, Juluca) and Long-Acting medicine
(Cabenuva, Apretude) sales growth continues and
now represents 53% of the total HIV portfolio compared to 42% for
Q3 22, driven by market share growth of 4 percentage points versus
Q3 22. Long-Acting medicine sales in the quarter were £219
million, growing £117 million versus Q3 22, with approximately
three quarters of sales coming from patient switches from
competitor products. Cabenuva sales in Q3 23 were
£182 million, reflecting strong patient demand, high levels of
market access and reimbursement across US and EU, underpinned by
strong data from the SOLAR phase IIIb study presented at CROI
2023.
|
|||||||
|
Respiratory/Immunology
and Other
|
769
|
12%
|
18%
|
|
2,162
|
15%
|
15%
|
|
|
|
|
|
|
|
|
|
|
This
therapy area includes sales of Nucala and Benlysta, and also sales of Duvroq (Daprodustat) in Japan.
Growth in Q3 23 exceeds H1 23 reflecting accelerating growth in
both Benlysta and Nucala.
|
|||||||
|
Nucala
|
413
|
13%
|
19%
|
|
1,184
|
15%
|
16%
|
|
|
|
|
|
|
|
|
|
|
Nucala, is an IL-5 antagonist monoclonal antibody treatment
for severe asthma, with additional indications including chronic
rhinosinusitis with nasal polyps, eosinophilic granulomatosis with
polyangiitis (EGPA) and hypereosinophilic syndrome (HES). Strong
growth in all regions in the quarter reflected patient demand in
severe eosinophilic asthma and for the new indications with ongoing
launches, with growth in the quarter accelerated from H1 23 due to
stronger US performance resulting from increasing new patient
starts.
|
|||||||
|
(1)
|
United States Census Bureau, International Database, Year
2023.
|
|
|
Q3 2023
|
|
Year to date
|
||||
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
Benlysta
|
349
|
13%
|
20%
|
|
960
|
17%
|
17%
|
|
|
|
|
|
|
|
|
|
|
Benlysta, a monoclonal antibody treatment for Lupus,
continues to show consistent growth representing strong demand in
US and Europe with bio penetration and volume uptake in certain
International markets, particularly in Japan and China. Q3 23
growth acceleration to 20% uplifts the YTD growth to
17%.
|
|||||||
|
|
|
|
|
|
|
|
|
|
Oncology
|
200
|
22%
|
26%
|
|
487
|
9%
|
9%
|
|
|
|
|
|
|
|
|
|
|
Oncology
demonstrated strong growth in Q3 23 driven by Jemperli and Zejula performance offset by
the impact of Blenrep withdrawal from the US
market in November 2022. In the quarter, Jemperli was approved in the US
for frontline treatment in combination with chemotherapy for
patients with dMMR/MSI-H primary advanced or recurrent endometrial
cancer. Consequently, Jemperli achieved sales of
£45 million in Q3 23 (£81 million YTD) driven by
increasing new patient starts in the US. Strong Q3 23 performance
drives Oncology growth YTD to 9%. GSK launched Ojjaara late in the quarter,
with approval received for use in myelofibrosis patients with
anaemia regardless of prior myelofibrosis therapy.
|
|||||||
|
Zejula
|
140
|
17%
|
22%
|
|
371
|
10%
|
10%
|
|
|
|
|
|
|
|
|
|
|
Zejula, a PARP inhibitor treatment for ovarian cancer, saw
positive growth globally in Q3 23, with the US demonstrating strong
growth resulting from the launch of the recently approved tablet
formulation including associated channel inventory
impacts. Zejula strategy involves a
switch from capsule to tablet formulation leading to improved
patient experience and compliance. In the US, growth in first line
indication was partially offset by reduction in use in second line
following the update to US prescribing information agreed with the
FDA in Q4 2022. Q3 23 sales also continue to show positive momentum
in Europe and International, which when combined with US
performance drives Q3 23 global growth to 22% and YTD global growth
to 10%.
|
|||||||
|
General Medicines
|
2,337
|
(10%)
|
(2%)
|
|
7,644
|
2%
|
5%
|
|
|
|
|
|
|
|
|
|
|
Performance
in the quarter was adversely impacted by the US market through RAR
adjustments, largely impacting the Established Respiratory
portfolio. Unfavourable RAR adjustments contributed 6 percentage
points of decline in Q3 23 and 3 percentage points YTD. Growth YTD
was driven by both Respiratory and Other General Medicines, with
ongoing strong demand for Trelegy in all regions, and a
continued post pandemic recovery of the antibiotic market in Europe
and International regions.
|
|||||||
|
Respiratory
|
1,520
|
(10%)
|
(3%)
|
|
5,079
|
4%
|
5%
|
|
|
|
|
|
|
|
|
|
|
Performance
in Q3 23 and YTD reflects growth of Trelegy and the single inhaled
triple therapy class across all regions and of Anoro in Europe and
International. Performance in Q3 23 was adversely impacted by the
US market through RAR adjustments, largely impacting the
Established Respiratory portfolio. Unfavourable RAR adjustments
contributed 7 percentage points of decline in Q3 23 and 3
percentage points YTD.
|
|||||||
|
Trelegy
|
537
|
15%
|
23%
|
|
1,613
|
27%
|
27%
|
|
|
|
|
|
|
|
|
|
|
Trelegy, is the most prescribed single inhaler triple
therapy (SITT) treatment worldwide for COPD and asthma. Strong
growth in Q3 23 and YTD delivered across all regions, reflecting
increased patient demand, growth of the SITT market and penetration
of the class. Growth momentum continues supported by the outputs of
recently updated primary care guidelines from the Global Initiative
for Chronic Obstructive Lung Disease.
|
|||||||
|
Seretide/Advair
|
202
|
(24%)
|
(14%)
|
|
863
|
4%
|
6%
|
|
|
|
|
|
|
|
|
|
|
Seretide/Advair is an ICS/LABA
treatment for asthma and COPD. Growth YTD reflected targeted
promotion and growth in certain International markets and the
benefit of favourable US RAR adjustments cumulatively in the
period. Growth is partially offset by the ongoing impact of generic
competition in Europe, US and certain International markets.
Quarterly performance was significantly impacted by unfavourable
RAR adjustments, accounting for 9 percentage points of
decline.
|
|||||||
|
Other
General Medicines
|
817
|
(11%)
|
-
|
|
2,565
|
(3%)
|
4%
|
|
|
|
|
|
|
|
|
|
|
Flat
growth in Q3 23 reflects ongoing post pandemic demand for
anti-infectives in Europe and International, and certain third
party manufacturing arrangements. Ongoing generic competition
continues to impact this product group in Q3 23 and YTD, and
specifically in Q3 23 adverse impacts in the US from RAR
adjustments which contributed 4 percentage points of decline in the
quarter and 1 percentage point YTD.
|
|||||||
|
|
Q3 2023
|
|
Year to date
|
|||||
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
|
US
|
Total
|
4,560
|
14%
|
19%
|
|
11,440
|
5%
|
4%
|
|
|
Excluding COVID
|
4,560
|
14%
|
19%
|
|
11,441
|
13%
|
12%
|
|
|
||||||||
|
YTD
2023 there was an 8 (CER) percentage point drag due to a decrease
in sales of Xevudy, however the decline had no
impact in Q3 23, as Xevudy sales in 2022 were
predominantly in the first quarter.
Vaccines
grew strongly in Q3 23 driven by the launch and initial stocking
for Arexvy, partly offset by lower
non-retail demand for Shingrix, competitive pressure
on Infanrix/Pediarix and CDC purchasing
patterns and lower private demand for Bexsero. YTD performance also includes
unfavourable wholesaler and retailer inventory movements
for Shingrix and favourable CDC
stockpile movements in Established Vaccines.
Specialty
Medicines grew in Q3 23 and YTD driven by strong HIV
performance, Benlysta and Nucala continued growth, and
despite strong Oncology growth in Q3 23, partially offset by
Oncology YTD on the withdrawal of Blenrep in November
2022.
General
Medicines declined in Q3 23 as Trelegy growth from increased
patient demand and growth of the SITT market was more than offset
by declines in Established Respiratory resulting from adjustments
to channel inventories and RAR.
|
||||||||
|
Europe
|
Total
|
1,559
|
5%
|
5%
|
|
4,907
|
5%
|
2%
|
|
|
Excluding COVID
|
1,559
|
5%
|
5%
|
|
4,783
|
12%
|
10%
|
|
|
||||||||
|
In Q3
23 there is no impact from the impacts of COVID-19 solutions,
however YTD there is an 8 (CER) percentage point drag due to high
sales of Xevudy in the first half of
2022. Excluding the impacts of COVID-19 solutions, Europe continued
to grow in Q3 23 and deliver strong growth of 10% YTD.
Vaccines
strong growth reflected Shingrix launches and
uptake, Bexsero national immunisation
campaigns in France and Spain and ongoing travel vaccine
recovery.
Specialty
Medicines double digit growth came from HIV, Oncology, Benlysta and Nucala including the impact of
new indication launches.
General
Medicines low single digit percentage decline in the quarter was
driven by Established Respiratory performance, with growth
maintained at a low single digit percentage YTD.
|
||||||||
|
International
|
Total
|
2,028
|
(13%)
|
(2%)
|
|
5,929
|
(6%)
|
-
|
|
|
Excluding COVID
|
2,027
|
4%
|
17%
|
|
5,878
|
9%
|
16%
|
|
|
||||||||
|
In Q3
23 there was a 19 (CER) percentage point drag due to high sales
of Xevudy in 2022, while YTD the
impact was 16 (CER) percentage points. Excluding this effect, all
product groups grew in Q3 23 and YTD.
Vaccines
double digit growth was driven by Shingrix strong uptake across
several markets.
Specialty
Medicines grew in HIV, Oncology and Respiratory/Immunology and
Other with Nucala delivering strong
growth.
General
Medicines product group was driven by Respiratory, with Trelegy growth and a strong
allergy season in Japan, Other General Medicines was driven
by Augmentin on strong post pandemic
antibiotic demand.
|
||||||||
|
Financial
performance
|
|
Total Results
|
Q3 2023
|
|
Year to Date
|
||||||||
|
|
£m
|
|
%
AER
|
|
%
CER
|
|
£m
|
|
%
AER
|
|
%
CER
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
8,147
|
|
4
|
|
10
|
|
22,276
|
|
1
|
|
2
|
|
Cost of
sales
|
(2,272)
|
|
(6)
|
|
(4)
|
|
(6,147)
|
|
(16)
|
|
(16)
|
|
Selling,
general and administration
|
(2,296)
|
|
12
|
|
18
|
|
(6,707)
|
|
13
|
|
13
|
|
Research
and development
|
(1,575)
|
|
17
|
|
21
|
|
(4,176)
|
|
13
|
|
12
|
|
Royalty
income
|
312
|
|
22
|
|
23
|
|
718
|
|
30
|
|
30
|
|
Other
operating income/(expense)
|
(367)
|
|
|
|
|
|
208
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
1,949
|
|
64
|
|
83
|
|
6,172
|
|
35
|
|
39
|
|
Net
Finance expense
|
(158)
|
|
(11)
|
|
(8)
|
|
(484)
|
|
(13)
|
|
(14)
|
|
Share
of after tax profit/(loss) of associates
and joint ventures
|
-
|
|
|
|
|
|
(4)
|
|
|
|
|
|
Profit/(loss)
on disposal of interest in
associates
|
-
|
|
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
1,791
|
|
77
|
|
99
|
|
5,685
|
|
42
|
|
46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
(257)
|
|
|
|
|
|
(775)
|
|
|
|
|
|
Tax
rate %
|
14.3%
|
|
|
|
|
|
13.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation
|
1,534
|
|
97
|
|
>100
|
|
4,910
|
|
49
|
|
53
|
|
Profit
attributable to non-controlling
interests
|
70
|
|
|
|
|
|
332
|
|
|
|
|
|
Profit
attributable to shareholders
|
1,464
|
|
|
|
|
|
4,578
|
|
|
|
|
|
|
1,534
|
|
97
|
|
>100
|
|
4,910
|
|
49
|
|
53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share
|
36.1p
|
|
92
|
|
>100
|
|
113.0p
|
|
54
|
|
59
|
|
Financial Performance - Q3 2023 results unless otherwise stated,
growth % and commentary at CER.
|
|
Adjusted results
Reconciliations
between Total results and Adjusted results for Q3 2023, Q3 2022,
YTD 2023 and YTD 2022 are
set out on pages 19, 20, 22 and 23.
|
|
|
Q3 2023
|
|
Year to Date
|
||||||||
|
|
£m
|
|
%
AER
|
|
%
CER
|
|
£m
|
|
%
AER
|
|
%
CER
|
|
Turnover
|
8,147
|
|
4
|
|
10
|
|
22,276
|
|
1
|
|
2
|
|
Cost of
sales
|
(2,073)
|
|
(6)
|
|
(4)
|
|
(5,553)
|
|
(17)
|
|
(17)
|
|
Selling,
general and administration
|
(2,185)
|
|
11
|
|
17
|
|
(6,441)
|
|
13
|
|
13
|
|
Research
and development
|
(1,429)
|
|
10
|
|
14
|
|
(3,966)
|
|
12
|
|
11
|
|
Royalty
income
|
312
|
|
22
|
|
23
|
|
718
|
|
30
|
|
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
operating profit
|
2,772
|
|
6
|
|
15
|
|
7,034
|
|
7
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
profit before taxation
|
2,616
|
|
8
|
|
17
|
|
6,552
|
|
9
|
|
12
|
|
Taxation
|
(404)
|
|
-
|
|
9
|
|
(1,022)
|
|
6
|
|
8
|
|
Adjusted
profit after taxation
|
2,212
|
|
9
|
|
19
|
|
5,530
|
|
10
|
|
13
|
|
Adjusted
profit attributable to non-controlling
interests
|
169
|
|
|
|
|
|
420
|
|
|
|
|
|
Adjusted
profit attributable to shareholders
|
2,043
|
|
|
|
|
|
5,110
|
|
|
|
|
|
|
2,212
|
|
9
|
|
19
|
|
5,530
|
|
10
|
|
13
|
|
Earnings
per share
|
50.4p
|
|
7
|
|
17
|
|
126.2p
|
|
11
|
|
14
|
|
|
|
Q3 2023
|
|
Year to Date
|
||||
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
Cost of
sales
|
Total
|
2,272
|
(6%)
|
(4%)
|
|
6,147
|
(16%)
|
(16%)
|
|
% of sales
|
27.9%
|
(3.1%)
|
(3.9%)
|
|
27.6%
|
(5.7%)
|
(5.8%)
|
|
|
Adjusted
|
2,073
|
(6%)
|
(4%)
|
|
5,553
|
(17%)
|
(17%)
|
|
|
% of sales
|
25.4%
|
(2.8%)
|
(3.6%)
|
|
24.9%
|
(5.6%)
|
(5.7%)
|
|
|
|
||||||||
|
Total
and Adjusted cost of sales as a percentage of sales in Q3 2023 and
year to date decreased primarily reflecting lower sales of lower
margin Xevudy compared to 2022.
Excluding Xevudy, the quarter and year to date
benefitted from an increasing margin contribution from Vaccines
sales, particularly the launch of Arexvy in the quarter in the
US and Shingrix outside the US. In
addition, Specialty Medicines, particularly HIV, contributed to the
improved margin, as well as continued operational efficiencies.
This was partly offset by adverse inventory provision adjustments
in the quarter as well as higher input costs. The year to date also
reflected an unfavourable comparator to a one-time benefit from
inventory adjustments in Q1 2022.
|
||||||||
|
|
|
Q3 2023
|
|
Year to Date
|
||||
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
Selling,
general & administration
|
Total
|
2,296
|
12%
|
18%
|
|
6,707
|
13%
|
13%
|
|
% of sales
|
28.2%
|
1.9%
|
1.9%
|
|
30.1%
|
3.1%
|
2.8%
|
|
|
Adjusted
|
2,185
|
11%
|
17%
|
|
6,441
|
13%
|
13%
|
|
|
% of sales
|
26.8%
|
1.7%
|
1.7%
|
|
28.9%
|
3.0%
|
2.7%
|
|
|
|
||||||||
|
Growth
in Total and Adjusted SG&A in Q3 2023 and in the year to date
primarily reflected increased investment for growth in Vaccines,
including disease awareness and initial launch preparations across
15 markets for Arexvy, and investment behind
global market expansion and disease awareness for Shingrix. In Specialty Medicines, increased
investment was targeted behind long-acting injectables in HIV and
the recent launch of Ojjaara for myelofibrosis in
Oncology. This was partly offset by the continuing benefit of
restructuring and tight control of ongoing costs. In the quarter
there was a 3% adverse impact to growth reflecting foreign exchange
gains in Q3 2022 for COVID-19 solutions. The year to date also
reflected the Zejula royalty dispute in Q1
2023. Total SG&A also included an increase in significant legal
costs (see details on page 21).
|
||||||||
|
|
|
Q3 2023
|
|
Year to Date
|
||||
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
Research
& development
|
Total
|
1,575
|
17%
|
21%
|
|
4,176
|
13%
|
12%
|
|
% of sales
|
19.3%
|
2.1%
|
1.7%
|
|
18.7%
|
1.9%
|
1.7%
|
|
|
Adjusted
|
1,429
|
10%
|
14%
|
|
3,966
|
12%
|
11%
|
|
|
% of sales
|
17.5%
|
1.0%
|
0.6%
|
|
17.8%
|
1.7%
|
1.4%
|
|
|
|
||||||||
|
R&D
growth in the quarter was driven by late-stage investment in
Vaccines, Respiratory/Immunology and Infectious Diseases.
Investment increased in Vaccines driven by pneumococcal and mRNA
programmes, partly offset by lower investment on Meningitis ABCWY
and RSV following successful trial completion.
Respiratory/Immunology increased investment on
paediatric Benlysta, Nucala COPD, CCL17 for osteo
arthritic pain and the collaboration with Alector Inc. for
Alzheimer's disease was offset by a decrease related to completion
of the late-stage clinical programme last year for otilimab.
Infectious Diseases investment increase was driven by bepirovirsen
to support development in chronic hepatitis B.
In
Oncology, increased investment in Jemperli and momelotinib
(Ojjaara) in the quarter
was offset by reductions in Zejula and Cell and Gene
Therapy.
Early
stage research increases included investment in IL18 for atopic
dermatitis and in the HIV portfolio, focused on next generation
long-acting treatments and preventative medicines. This was offset
by lower spend on projects transitioning into development including
mRNA and therapeutic HSV vaccines.
The
year to date growth factors were similar to the quarter, but also
included reduced investment in Blenrep compared to the same
period in 2022.
Total
R&D included higher impairment charges compared with the same
quarter and year to date in 2022.
|
||||||||
|
|
|
Q3 2023
|
|
Year to Date
|
||||
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
Royalty
income
|
Total
|
312
|
22%
|
23%
|
|
718
|
30%
|
30%
|
|
|
Adjusted
|
312
|
22%
|
23%
|
|
718
|
30%
|
30%
|
|
|
||||||||
|
Growth
in Total and Adjusted royalty income in Q3 2023 primarily related
to Gardasil royalties, which increased to £189 million in the
quarter and £392 million in the year to date, as well as
Kesimpta and Biktarvy royalties. The majority of the income from
Gardasil royalties will cease at the end of 2023.
|
||||||||
|
|
|
Q3 2023
|
|
Year to Date
|
||||
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
Other
operating income/(expense)
|
Total
|
(367)
|
66%
|
66%
|
|
208
|
>100%
|
>100%
|
|
|
||||||||
|
The Q3
2023 expense reflected a charge of £576 million (Q3
2022: £698 million)
arising from the remeasurement of contingent consideration
liabilities and the liabilities for the Pfizer, Inc. (Pfizer) put
option partly offset by a fair value gain of £184 million (Q3
2022: £377 million loss) on the retained stake in Haleon plc
(Haleon) and net income of £25 million (Q3 2022: £9
million) primarily received from equity investments and milestone
income.
Year to
date income reflects a fair value gain of £154 million (YTD
2022: £377 million loss) on the retained stake in Haleon as
well as £170 million (YTD 2022: £158 million) of other
net income primarily related to equity investments and milestone
income (including £30 million dividend received form the
retained investment in Haleon), partly offset by a charge of
£116 million (YTD 2022: £1,729 million)
arising from the remeasurement of contingent consideration
liabilities and the liabilities for the Pfizer put option. In Q1 2022
upfront income of £0.9 billion was received from the
settlement with Gilead Sciences, Inc. (Gilead).
|
||||||||
|
|
|
Q3 2023
|
|
Year to Date
|
||||
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
Operating
profit
|
Total
|
1,949
|
64%
|
83%
|
|
6,172
|
35%
|
39%
|
|
|
% of sales
|
23.9%
|
8.7%
|
10.1%
|
|
27.7%
|
6.9%
|
7.5%
|
|
|
Adjusted
|
2,772
|
6%
|
15%
|
|
7,034
|
7%
|
10%
|
|
|
% of sales
|
34.0%
|
0.8%
|
1.7%
|
|
31.6%
|
1.7%
|
2.2%
|
|
|
||||||||
|
Total operating profit margin was higher in
the quarter and year to date due to profitable, resilient growth
across the portfolio as well as favourable movements in contingent
consideration liabilities and fair value gains (2022 fair value
losses) on the retained stake in Haleon. In the year to date there
is an unfavourable comparison due to the £0.9 billion upfront
income received from the settlement with Gilead in Q1
2022.
Adjusted operating profit in Q3 2023 benefitted
from leverage from profitable, resilient growth and strong
execution across Specialty Medicines and Vaccines, particularly
with the launch of Arexvy, as well as higher royalty
income, offset by a decline in operating profit for General
Medicines in the quarter and increased investment behind product
launches and in R&D. The adverse impact of lower sales of
COVID-19 solutions was seven percentage points of operating profit
growth in the quarter. There was minimal impact on Adjusted
operating profit margin.
Year to
date Adjusted operating profit benefitted from strong
sales, favourable product mix and increased royalty income partly
offset by increased investment behind product launches and in
R&D as well as increased legal charges primarily relating to
the Zejula royalty dispute. The
adverse impact of lower sales of COVID-19 solutions was 4
percentage points of operating profit growth in the quarter. The
Adjusted operating profit margin improved by 1.8 percentage
points.
|
||||||||
|
|
|
Q3 2023
|
|
Year to Date
|
||||
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
Adjusted
operating profit by
segment
|
Commercial Operations
|
4,188
|
6%
|
13%
|
|
11,044
|
6%
|
7%
|
|
% of sales
|
51.4%
|
1.0%
|
1.4%
|
|
49.6%
|
2.3%
|
2.3%
|
|
|
R&D
|
(1,371)
|
5%
|
9%
|
|
(3,876)
|
9%
|
8%
|
|
|
|
||||||||
|
Commercial
Operations Adjusted operating profit in the quarter and year to
date benefitted from strong sales and favourable product mix (with
minimal Xevudy sales) and increased
royalty income, partly offset by increased investment in growth and
launch assets as well as an increase in legal provisions in the
year to date.
The
R&D segment operating expenses growth was driven by late-stage
investment in Vaccines, Respiratory/Immunology and Infectious
Diseases, including pneumococcal and mRNA programmes, and
bepirovirsen to support development in chronic hepatitis B. This
was partly offset by decreases related to the completion of
late-stage clinical development programmes and reduced investment
in RSV and Blenrep versus the same period
in 2022.
|
||||||||
|
|
|
Q3 2023
|
|
Year to Date
|
||||
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
Net
finance costs
|
Total
|
158
|
(11%)
|
(8%)
|
|
484
|
(13%)
|
(14%)
|
|
|
Adjusted
|
156
|
(12%)
|
(9%)
|
|
478
|
(14%)
|
(15%)
|
|
|
||||||||
|
The
decrease in net finance costs in Q3 2023 and year to date is mainly
driven by the net savings from maturing bonds including the
Sterling Notes repurchase in Q4 2022 and higher interest income on
cash, partly offset by higher interest on commercial
paper.
|
||||||||
|
|
|
Q3 2023
|
|
Year to Date
|
||||
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
Taxation
|
Total
|
257
|
10%
|
27%
|
|
775
|
10%
|
14%
|
|
|
Tax rate %
|
14.3%
|
|
|
|
13.6%
|
|
|
|
|
Adjusted
|
404
|
-
|
9%
|
|
1,022
|
6%
|
8%
|
|
|
Tax rate %
|
15.4%
|
|
|
|
15.6%
|
|
|
|
|
||||||||
|
The
effective tax rate on Adjusted Profits is broadly in line with
expectations for the year of 15% to 15.5%. Further details on
taxation are described in Note 14, "Taxation" in the Annual Report
2022.
|
||||||||
|
|
|
Q3 2023
|
|
Year to Date
|
||||
|
|
|
£m
|
AER
|
CER
|
|
£m
|
AER
|
CER
|
|
Non-controlling interests
("NCIs")
|
Total
|
70
|
>100%
|
>100%
|
|
332
|
(1%)
|
(3%)
|
|
Adjusted
|
169
|
25%
|
30%
|
|
420
|
(6%)
|
(8%)
|
|
|
|
||||||||
|
The
increase in Total profit from continuing operations allocated to
NCIs in Q3 2023 was primarily driven by higher ViiV Healthcare
profits with an allocation of £57 million (Q3 2022: £24
million).
The
year to date was impacted by lower net profits in some of the
Group's other entities with NCIs offset by higher ViiV Healthcare
profits with an allocation of £324 million (2022: £292
million).
In Q3
2023 the growth in Adjusted profit from continuing operations
allocated to NCIs reflected higher profits in ViiV Healthcare with
an allocation of £156 million (Q3 2022: £139 million) and
higher net profits in some of the Group's other entities with NCIs.
The decrease in the year to date primarily reflected lower net
profits in some of the Group's other entities with NCIs, partly
offset by higher profit allocations from ViiV Healthcare of
£412 million (2022: £403 million).
|
||||||||
|
|
|
Q3 2023
|
|
Year to Date
|
||||
|
|
|
£p
|
AER
|
CER
|
|
£p
|
AER
|
CER
|
|
Earnings
per share
|
Total continuing
|
36.1p
|
92%
|
>100%
|
|
113.0p
|
54%
|
59%
|
|
Adjusted
|
50.4p
|
7%
|
17%
|
|
126.2p
|
11%
|
14%
|
|
|
|
||||||||
|
Adjusted
EPS in the quarter and year to date reflected the growth in
Adjusted Operating profit as well as lower finance costs. Year to
date growth also reflected the growth in Adjusted Operating profit,
lower finance costs and a favourable benefit from lower
non-controlling interests.
In Q3
2023 and the year to date, lower sales from lower margin COVID-19
solutions reduced Adjusted EPS by eight and five percentage points
respectively.
In Q3
2023 and the year to date, the increase in Total continuing EPS
primarily reflected lower charges related to the remeasurement of
contingent consideration liabilities and a fair value gain on the
retained stake in Haleon compared to a fair value loss in the same
period last year. In the year to date there is an unfavourable
comparison due to upfront income received from the settlement with
Gilead in Q1 2022.
|
||||||||
|
Currency impact on results
The
results for the year to date 2023 are based on average exchange
rates, principally £1/$1.24, £1/€1.15 and
£1/Yen 173. The results for Q3 2023 are based on average
exchange rates, principally £1/$1.26, £1/€1.16 and
£1/Yen 182. The period-end exchange rates were £1/$1.23,
£1/€1.16 and £1/Yen 183. Comparative exchange rates
are given on page 40.
|
|
|
|
Q3 2023
|
|
Year to Date
|
||||
|
|
|
£m/£p
|
AER
|
CER
|
|
£m/£p
|
AER
|
CER
|
|
Turnover
|
|
8,147
|
4%
|
10%
|
|
22,276
|
1%
|
2%
|
|
Earnings
per share
|
Total
|
36.1p
|
92%
|
>100%
|
|
113.0p
|
54%
|
59%
|
|
Adjusted
|
50.4p
|
7%
|
17%
|
|
126.2p
|
11%
|
14%
|
|
|
|
||||||||
|
In Q3
2023, the adverse currency impact primarily reflected the
strengthening of Sterling against the US Dollar as well as the
weakening of emerging market currencies against Sterling. Exchange
gains or losses on the settlement of intercompany transactions had
a minimal impact on Adjusted EPS.
In the
year to date the adverse currency impact primarily reflected
weakening of emerging market currencies against Sterling partly
offset by weakening of Sterling against the US Dollar and the Euro.
Exchange gains or losses on the settlement of intercompany
transactions had a one percentage point adverse impact on Adjusted
EPS.
|
||||||||
|
Cash generation
|
|
Cash flow
|
|||||||
|
|
Q3 2023
£m
|
|
Q3
2022
£m
|
|
9 months 2023
£m
|
|
9
months 2022
£m
|
|
|
|
|
|
|
|
|
|
|
Cash
generated from operations attributable to continuing operations
(£m)
|
2,508
|
|
1,907
|
|
4,415
|
|
5,843
|
|
Cash
generated from operations attributable to
discontinued operations (£m)
|
-
|
|
10
|
|
-
|
|
928
|
|
|
|
|
|
|
|
|
|
|
Total
cash generated from operations (£m)
|
2,508
|
|
1,917
|
|
4,415
|
|
6,771
|
|
|
|
|
|
|
|
|
|
|
Total
net cash generated from operating activities (£m)
|
2,212
|
|
1,321
|
|
3,572
|
|
5,498
|
|
|
|
|
|
|
|
|
|
|
Free
cash inflow/(outflow) from continuing operations*
(£m)
|
1,655
|
|
712
|
|
1,314
|
|
2,453
|
|
Free
cash flow from continuing operations growth (%)
|
>100%
|
|
(13%)
|
|
(41%)
|
|
>100%
|
|
Free
cash flow conversion from continuing operations* (%)
|
>100%
|
|
94%
|
|
29%
|
|
83%
|
|
Total
net debt** (£m)
|
17,589
|
|
18,436
|
|
17,589
|
|
18,436
|
|
*
|
Free cash flow from continuing
operations and free cash flow conversion are defined on page 51.
Free cash flow from continuing operations is analysed on page
42.
|
|
**
|
Net debt is analysed on page
42.
|
|
Q3 2023
Cash
generated from operating activities from continuing operations for
the quarter was £2,508 million (Q3 2022:
£1,907 million). The increase primarily reflected
increased operating profit, timing of returns and rebates,
favourable comparison to timing of profit share payments
for Xevudy and timing of
additional pension contributions both in 2022, offset in part by an
increase in trade receivables due to higher sales in the quarter,
including the launch of Arexvy.
Total
contingent consideration payments in the quarter were £281
million (Q3 2022: £249 million), including cash payments made
to Shionogi & Co. Ltd (Shionogi) of £269 million (Q3
2022: £240 million). £278 million (Q3 2022: £247
million) of these were recognised in cash flows from operating
activities.
Free
cash inflow was £1,655 million for the quarter (Q3 2022:
£712 million inflow). In addition to the increase in cash
generated from operating activities from continuing operations, the
increase in free cash inflow was driven by a favourable comparison
due to increased tax payments in Q3 2022 and lower dividends paid
to non-controlling interests in the quarter partly offset by lower
proceeds from sale of intangible assets.
9 months 2023
Cash
generated from operating activities from continuing operations was
£4,415 millions (9 months 2022: £5,843 million). The
decrease primarily reflected an unfavourable comparison due to the
upfront income from the settlement with Gilead received in Q1 2022,
increase in trade receivables due to higher sales including the
launch of Arexvy and lower Xevudy collections and lower
payable balances reflecting increased investment in
2022.
Total
contingent consideration cash payments in the year to date 2023
were £860 million (YTD 2022: £864 million), including
cash payments made to Shionogi of £834 million (YTD 2022:
£843 million). £853 million (YTD 2022: £789 million)
of these were recognised in cash flows from operating
activities.
Free
cash inflow was £1,314 million for the YTD 2023 (YTD 2022:
£2,453 million inflow). The reduction was primarily due to
lower cash generated from operating activities including an
unfavourable comparison due to the upfront income from the
settlement with Gilead in Q1 2022. This was partly offset by a
favourable comparison due to increased tax payments in Q3
2022.
Total Net debt
At 30
September 2023, net debt was £17,589 million, compared with
£17,197 million at 31 December 2022, comprising gross
debt of £20,836 million and cash and liquid investments of
£3,247 million. See net debt information on page
42.
Net
debt increased by £0.4 billion primarily due to dividends paid
to shareholders of £1.7 billion and the net acquisition cost
of BELLUS Health Inc. (Bellus) for £1.5 billion, partly offset
by £1.3 billion free cash inflow, £0.9 billion disposal
of investments, £0.2 billion of income received from equity
investments and net favourable exchange impacts of £0.4
billion from the translation of non-Sterling denominated debt and
exchange on other financing items.
At 30
September 2023, GSK had short-term borrowings (including overdrafts
and lease liabilities) repayable within 12 months of £4,843
million with loans of £2,323 million repayable in the
subsequent year.
On 6
October 2023, GSK completed the sale of 270 million shares in
Haleon raising gross proceeds of approximately £885.6 million.
See post balance sheet event note on page 41.
|
|
Q3 2023 pipeline highlights (since 26
July 2023)
|
|
|
Medicine/vaccine
|
Trial (indication, presentation)
|
Event
|
|
Regulatory approvals or other regulatory action
|
Arexvy
|
RSV,
older adults aged
60+
years
|
Regulatory
approval (JP)
|
|
Apretude
|
HIV,
pre-exposure prophylaxis, long-acting injectable and
tablets
|
Regulatory
approval (EU)
|
|
|
Vocabria
|
HIV,
combination with rilpivirine long-acting injection
|
Regulatory
approval (CN)
|
|
|
Jemperli
|
RUBY
(1L mismatch repair deficient/microsatellite instability-high
(dMMR/MSI-H) endometrial cancer)
|
Regulatory
approval (US)
|
|
|
Jemperli
|
RUBY
(1L dMMR/MSI-H endometrial cancer)
|
Positive
CHMP opinion (EU)
|
|
|
Ojjaara (momelotinib)
|
MOMENTUM
(myelofibrosis with anaemia)
|
Regulatory
approval (US)
|
|
|
Regulatory submissions or acceptances
|
Nucala
|
chronic
rhinosinusitis with nasal polyps
|
Regulatory
acceptance (JP)
|
|
momelotinib
|
MOMENTUM
(myelofibrosis with anaemia)
|
Regulatory
acceptance (JP)
|
|
|
Phase III data readouts or other significant events
|
Arexvy
|
RSV,
older adults aged
50-59
years
|
Positive
phase III data readout
|
|
Shingrix
|
Shingles,
older adults aged
50+
years
|
Positive
phase III data (CN)
|
|
|
Jemperli
|
RUBY
part 1 (OS overall population, 1L endometrial cancer)
|
Positive
phase III data readout
|
|
Anticipated news flow
|
|
Timing
|
Medicine/vaccine
|
Trial (indication, presentation)
|
Event
|
|
H2
2023
|
Arexvy
|
RSV,
older adults aged
50-59
years
|
Regulatory
submission
(US,
EU, JP)
|
|
Nucala
|
Chronic
rhinosinusitis with nasal polyps
|
Regulatory
submission (CN)
|
|
|
H1
2024
|
gepotidacin
|
EAGLE-1
(urogenital gonorrhoea)
|
Phase
III data readout
|
|
MenABCWY
(gen 2)
vaccine
candidate
|
Meningitis
ABCWY
|
Phase
II data readout
|
|
|
MenABCWY
(gen 1)
vaccine
candidate
|
Meningitis
ABCWY
|
Regulatory
submission
(US,
EU)
|
|
|
depemokimab
|
SWIFT-1/2
(severe asthma)
|
Phase
III data readout
|
|
|
Blenrep
|
DREAMM-7
(2L+ multiple myeloma)
|
Phase
III data readout
|
|
|
Jemperli
|
RUBY
(1L dMMR/MSI-H endometrial cancer)
|
Regulatory
decision (EU)
|
|
|
Jemperli
|
RUBY
part 1 (OS overall population, 1L endometrial cancer)
|
Regulatory
submission (US)
|
|
|
Jemperli
|
RUBY
part 2 (1L endometrial cancer)
|
Phase
III data readout
|
|
|
Jemperli
|
RUBY
part 2 (1L endometrial cancer)
|
Regulatory
submission
(US,
EU)
|
|
|
momelotinib
|
MOMENTUM
(myelofibrosis with anaemia)
|
Regulatory
decision
(EU,
JP)
|
|
|
Zejula
|
FIRST
(1L maintenance ovarian cancer)
|
Phase
III data readout
|
|
|
H2
2024
|
Arexvy
|
RSV,
older adults aged
50-59
years
|
Regulatory
decision
(US,
EU, JP)
|
|
gepotidacin
|
EAGLE-2/3
(uncomplicated urinary tract infection)
|
Regulatory
submission (US)
|
|
|
depemokimab
|
ANCHOR-1/2
(chronic rhinosinusitis with nasal polyps)
|
Phase
III data readout
|
|
|
depemokimab
|
ANCHOR-1/2
(chronic rhinosinusitis with nasal polyps)
|
Regulatory
submission (US)
|
|
|
depemokimab
|
SWIFT-1/2
(severe asthma)
|
Regulatory
submission (US)
|
|
|
Nucala
|
Severe
asthma
|
Regulatory
decision (CN)
|
|
|
Nucala
|
Chronic
rhinosinusitis with nasal polyps
|
Regulatory
decision (JP)
|
|
|
Nucala
|
MATINEE
(chronic obstructive pulmonary disease)
|
Phase
III data readout
|
|
|
Nucala
|
MATINEE
(chronic obstructive pulmonary disease)
|
Regulatory
submission (US)
|
|
|
Blenrep
|
DREAMM-8
(2L + multiple myeloma)
|
Phase
III data readout
|
|
|
cobolimab
|
COSTAR
(non-small cell lung cancer)
|
Phase
III data readout
|
|
|
Zejula
|
ZEAL
(1L maintenance non-small cell lung cancer)
|
Phase
III data readout
|
|
|
linerixibat
|
GLISTEN
(cholestatic pruritus in primary biliary cholangitis)
|
Phase
III data readout
|
|
Refer
to pages 43 to 50 for further details on several key medicines and
vaccines in development by therapy area.
|
|
Trust: progress on our six priority
areas for responsible business
Building
Trust by operating responsibly is integral to GSK's strategy and
culture. This will support growth and returns to shareholders,
reduce risk, and help GSK's people thrive while delivering
sustainable health impact at scale. The company has identified six
Environmental, Social, and Governance (ESG) focus areas that
address what is most material to GSK's business and the issues that
matter the most to its stakeholders. Highlights below include
activity since Q2 2023 results. For more details on annual updates,
please see GSK'S ESG Performance Report 2022
here: https://gsk.to/2022ESGPerf.
Access
Commitment: to make GSK's vaccines
and medicines available at value-based prices that are sustainable
for the business and implement access strategies that increase the
use of GSK's vaccines and medicines to treat and protect
underserved people.
|
|
Progress since Q2 2023:
|
|
●
|
Malaria kills almost 620,000 people every year, most of them
children under 5 in Africa south of the Sahara. New "remarkable"
results from a landmark study by the London School of Hygiene &
Tropical Medicine show that combining the RTS,S malaria vaccine
with antimalarial drugs in areas of Africa with seasonal malaria
continued to dramatically reduce malaria cases and deaths in young
children over a period of 5 years: a two thirds reduction in
clinical malaria episodes, including cases of severe malaria and
deaths from malaria in young children, compared to either
intervention alone. The data confirm the potential of seasonal
vaccination to provide a high level of protection over the first 5
years of a child's life, when this protection is much needed. More
information can be found here: https://www.thelancet.com/journals/laninf/article/PIIS1473-3099(23)00368-7/fulltext.
|
|
●
|
Overstretched health systems and lockdown measures during the
COVID-19 pandemic have triggered the biggest global decline in
routine immunisation for 30 years, causing diseases like polio,
measles and cholera to appear in places where they have not been
seen for decades. In September, GSK and Save the Children announced
a 5-year extension to their partnership, focused on protecting the
health of 'zero dose' children who have never received a vaccine in
Nigeria and Ethiopia. More information can be found
here: https://gsk.to/48ZfJqM.
|
|
●
|
Performance
metrics related to access are updated annually with details from
the most recent year on page 9 of GSK's ESG Performance Report
2022.
|
|
Global health and health security
Commitment: develop novel products
and technologies to treat and prevent priority diseases, including
pandemic threats.
|
|
Progress since Q2 2023:
|
|
●
|
GSK's
history in malaria spans more than 200 years and continues to be a
focus today. In August, a new paper published in Science showed the
potential for a naturally occurring bacterium discovered by GSK
scientists - Delftia tsuruhatensis Tres Cantos 1 (TC1) - to be the
basis for new anti-malarial interventions. This discovery led to a
collaboration with Johns Hopkins Malaria Research Institute on
studies which show bacteria drastically reduces malaria parasite
burden in the mosquito, potentially reducing transmission to humans
significantly.
|
|
●
|
Performance
metrics related to global health and health security are updated
annually with details from the most recent year on page 13 of GSK's
ESG Performance Report 2022.
|
|
Environment
Commitment: committed to a net
zero, nature-positive, healthier planet with ambitious goals set
for 2030 and 2045.
|
|
Progress since Q2 2023:
|
|
●
|
GSK is focused on reducing its impact on nature across the full
value chain, investing in the protection and restoration of nature,
and helping to drive collective action. In September, GSK published
its plan for nature in line with the goal of the Global
Biodiversity Framework to halt and reverse biodiversity loss by
2030. The plan includes action across freshwater, land, oceans and
atmosphere, the major components of the natural world and home to
the biodiversity of the planet's living species. More information
can be found here: https://gsk.to/46WCQk8
|
|
●
|
In
September, The Task Force on Nature-related Financial Disclosures
(TNFD) published their final framework - an outcome of the pilot
framework GSK and others were already testing. In alignment with
this, GSK announced a commitment to adopting TNFD-aligned
disclosures in 2026, based on 2025 data.
|
|
●
|
Performance
metrics related to environment are updated annually with details
from the most recent year on page 16 of GSK's ESG Performance
Report 2022.
|
|
Diversity, equity and inclusion
Commitment: create a diverse,
equitable and inclusive workplace; enhance recruitment of diverse
patient populations in GSK clinical trials; and support diverse
communities.
|
|
Progress since Q2 2023:
|
|
●
|
At GSK, having a highly talented team with a wide range of skills
and backgrounds is crucial to the ability to discover and develop
ground-breaking medicines and vaccines and understand the unique
needs of patients. In October, GSK announced a new £6 million
and 10-year commitment to equitable STEM education initiative to
boost STEM career progression for young people from
under-represented groups in the UK. More information can be found
here: https://gsk.to/3SoeRpE.
|
|
●
|
At the
2023 Women Deliver conference, GSK and ViiV Healthcare joined
forces with The Global Fund to launch a new multi-year fund aimed
at supporting community-based and -led organisations who are
working to deliver lasting changes in health policies and
programmes to promote gender equality in Africa.
|
|
●
|
Performance
metrics related to diversity, equity and inclusion are updated
annually with details from the most recent year on page 23 of GSK's
ESG Performance Report 2022.
|
|
Ethical standards
Commitment: promote ethical
behaviour across GSK's business by supporting its employees to do
the right thing and working with suppliers that share GSK's
standards and operate responsibly.
|
|
●
|
Performance
metrics related to ethical standards are updated annually with
details from the most recent year on page 26 of GSK's ESG
Performance Report 2022.
|
|
Product governance
Commitment: maintain robust quality
and safety processes and responsibly use data and new
technologies.
|
|
●
|
Performance
metrics related to product governance are updated annually with
details from the most recent year on page 30 of GSK's ESG
Performance Report 2022.
|
|
ESG rating performance
Detailed
below is how GSK performs in key ESG ratings.
|
|
External benchmark
|
Current
score/ranking
|
Previous
score/ranking
|
Comments
|
|
S&P
Global's Corporate Sustainability Assessment
|
86
|
88
|
2nd in
the pharmaceutical industry group; Assessment conducted annually,
current score based on 2022 submission. 2023 submission score
expected to be published in Q4 2023
|
|
Access
to Medicines Index
|
4.06
|
4.23
|
Led the
bi-annual index since its inception in 2008; Updated bi-annually,
current results from November 2022
|
|
Antimicrobial
resistance benchmark
|
84%
|
86%
|
Led the
bi-annual benchmark since its inception in 2018; Current ranking
updated November 2021
|
|
CDP
Climate Change
|
A-
|
A-
|
Updated
annually, current scores updated December 2022 (for supplier
engagement, March 2023)
|
|
CDP
Water Security
|
B
|
B
|
|
|
CDP
Forests (palm oil)
|
A-
|
B
|
|
|
CDP
Forests (timber)
|
B
|
B
|
|
|
CDP
supplier engagement rating
|
Leader
|
Leader
|
|
|
Sustainalytics
|
16.7
|
18.6
|
1st
percentile in pharma subindustry group; Lower score represents
lower risk. Current ranking updated September 2023
|
|
MSCI
|
AA
|
AA
|
Last
rating action date: September 2023
|
|
Moody's
ESG solutions
|
62
|
61
|
2nd in
the pharmaceutical sector; Current score updated August
2023
|
|
ISS
Corporate Rating
|
B+
|
B+
|
Current
score updated June 2023
|
|
FTSE4Good
|
Member
|
Member
|
Member
since 2004, latest review in June 2023
|
|
ShareAction's
Workforce Disclosure Initiative
|
77%
|
75%
|
Current
score updated February 2023
|
|
|
|
|
Contents
|
Page
|
|
Q3
2023 pipeline highlights
|
12
|
|
ESG
|
14
|
|
Total
and Adjusted results
|
17
|
|
Income
statement
|
25
|
|
Statement
of comprehensive income
|
26
|
|
Balance
sheet
|
27
|
|
Statement
of changes in equity
|
28
|
|
Cash
flow statement
|
29
|
|
Sales
tables
|
31
|
|
Segment
information
|
35
|
|
Legal
matters
|
37
|
|
Returns
to shareholders
|
38
|
|
Additional
information
|
39
|
|
Post
balance sheet event note
|
41
|
|
Related
party transactions
|
41
|
|
Net
debt information
|
42
|
|
R&D
commentary
|
43
|
|
Reporting
definitions
|
51
|
|
Guidance,
assumptions and cautionary statements
|
52
|
|
Independent
review report to GSK plc
|
53
|
|
Contacts
|
|
GSK plc (LSE/NYSE:GSK) is a global biopharma company with a purpose
to unite science, technology, and talent to get ahead of disease
together. Find out more at www.gsk.com.
|
|
GSK enquiries:
|
|
|
|
|
Media
|
Tim
Foley
|
+44 (0)
20 8047 5502
|
(London)
|
|
|
Kathleen
Quinn
|
+1 202
603 5003
|
(Washington)
|
|
|
|
|
|
|
Investor
Relations
|
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
|
|||
|
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 51.
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 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 19, 20, 22 and
23.
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.
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 nine months ended
30 September 2023 were £834 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 71 and 72 of the Annual Report
2022.
|
|
Adjusting items
|
|
The
reconciliations between Total results and Adjusted results for Q3
2023 and Q3 2022 are set out below.
|
|
Three months ended 30 September 2023
|
|
|
Total
results
£m
|
|
Intangible
amort-
isation
£m
|
|
Intangible
impair-
ment
£m
|
|
Major
restruct-
uring
£m
|
|
Trans-
action-
related
£m
|
|
Divest-
ments,
significant
legal
and
other
items
£m
|
|
Adjusted
results
£m
|
|
Turnover
|
8,147
|
|
|
|
|
|
|
|
|
|
|
|
8,147
|
|
Cost of
sales
|
(2,272)
|
|
162
|
|
|
|
29
|
|
|
|
8
|
|
(2,073)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
5,875
|
|
162
|
|
|
|
29
|
|
|
|
8
|
|
6,074
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administration
|
(2,296)
|
|
|
|
|
|
83
|
|
1
|
|
27
|
|
(2,185)
|
|
Research
and development
|
(1,575)
|
|
20
|
|
129
|
|
(2)
|
|
|
|
(1)
|
|
(1,429)
|
|
Royalty
income
|
312
|
|
|
|
|
|
|
|
|
|
|
|
312
|
|
Other
operating income/(expense)
|
(367)
|
|
|
|
|
|
|
|
576
|
|
(209)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
1,949
|
|
182
|
|
129
|
|
110
|
|
577
|
|
(175)
|
|
2,772
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
finance cost
|
(158)
|
|
|
|
|
|
|
|
|
|
2
|
|
(156)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
1,791
|
|
182
|
|
129
|
|
110
|
|
577
|
|
(173)
|
|
2,616
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
(257)
|
|
(40)
|
|
(30)
|
|
(19)
|
|
(61)
|
|
3
|
|
(404)
|
|
Tax rate %
|
14.3%
|
|
|
|
|
|
|
|
|
|
|
|
15.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from continuing
operations
|
1,534
|
|
142
|
|
99
|
|
91
|
|
516
|
|
(170)
|
|
2,212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to non-controlling
interests from continuing operations
|
70
|
|
|
|
|
|
|
|
99
|
|
|
|
169
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to shareholders
from continuing operations
|
1,464
|
|
142
|
|
99
|
|
91
|
|
417
|
|
(170)
|
|
2,043
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,534
|
|
142
|
|
99
|
|
91
|
|
516
|
|
(170)
|
|
2,212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share from continuing
operations
|
36.1p
|
|
3.5p
|
|
2.4p
|
|
2.2p
|
|
10.3p
|
|
(4.1)p
|
|
50.4p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares
(millions)
|
4,055
|
|
|
|
|
|
|
|
|
|
|
|
4,055
|
|
Three months ended 30 September 2022
|
|
|
Total
results(2)
£m
|
|
Profit
from
discon-
tinued
operations(2)
£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
|
7,829
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,829
|
|
Cost of
sales
|
(2,423)
|
|
|
|
172
|
|
|
|
24
|
|
13
|
|
|
|
(2,214)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
5,406
|
|
|
|
172
|
|
|
|
24
|
|
13
|
|
|
|
5,615
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and
administration
|
(2,056)
|
|
|
|
|
|
|
|
42
|
|
|
|
46
|
|
(1,968)
|
|
Research
and development
|
(1,346)
|
|
|
|
26
|
|
17
|
|
6
|
|
|
|
|
|
(1,297)
|
|
Royalty
income
|
255
|
|
|
|
|
|
|
|
|
|
|
|
|
|
255
|
|
Other
operating
income/(expense)
|
(1,068)
|
|
|
|
|
|
|
|
1
|
|
699
|
|
368
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
1,191
|
|
|
|
198
|
|
17
|
|
73
|
|
712
|
|
414
|
|
2,605
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
finance cost
|
(178)
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
(177)
|
|
Share
of after tax losses of
associates and joint
ventures
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
1,012
|
|
|
|
198
|
|
17
|
|
73
|
|
712
|
|
415
|
|
2,427
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
(233)
|
|
|
|
(39)
|
|
(3)
|
|
(15)
|
|
(106)
|
|
(6)
|
|
(402)
|
|
Tax rate %
|
23.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16.6%
|
|
Profit after taxation from
continuing operations
|
779
|
|
|
|
159
|
|
14
|
|
58
|
|
606
|
|
409
|
|
2,025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from
discontinued operations
and other gains/(losses)
from the demerger(2)
|
2,429
|
|
(2,429)
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Remeasurement of
discontinued operations
distributed to
shareholders on
demerger(2)
|
7,651
|
|
(7,651)
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from
discontinued operations(2)
|
10,080
|
|
(10,080)
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit after taxation
for the period(2)
|
10,859
|
|
(10,080)
|
|
159
|
|
14
|
|
58
|
|
606
|
|
409
|
|
2,025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to non-
controlling interest from
continuing operations
|
20
|
|
|
|
|
|
|
|
|
|
115
|
|
|
|
135
|
|
Profit
attributable to
shareholders
from continuing operations
|
759
|
|
|
|
159
|
|
14
|
|
58
|
|
491
|
|
409
|
|
1,890
|
|
Profit
attributable to non-
controlling interest from
discontinued operations
|
18
|
|
(18)
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to
shareholders from
discontinued operations(2)
|
10,062
|
|
(10,062)
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
10,859
|
|
(10,080)
|
|
159
|
|
14
|
|
58
|
|
606
|
|
409
|
|
2,025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit attributable to
non-controlling interests
|
38
|
|
(18)
|
|
|
|
|
|
|
|
115
|
|
|
|
135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit attributable to
shareholders(2)
|
10,821
|
|
(10,062)
|
|
159
|
|
14
|
|
58
|
|
491
|
|
409
|
|
1,890
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,859
|
|
(10,080)
|
|
159
|
|
14
|
|
58
|
|
606
|
|
409
|
|
2,025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share from
continuing operations
|
18.8p
|
|
|
|
3.9p
|
|
0.4p
|
|
1.4p
|
|
12.2p
|
|
10.2p
|
|
46.9p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share from
discontinued operations(2)
|
249.7p
|
|
(249.7)p
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total earnings per share(2)
|
268.5p
|
|
(249.7)p
|
|
3.9p
|
|
0.4p
|
|
1.4p
|
|
12.2p
|
|
10.2p
|
|
46.9p
|
|
Weighted
average number
of shares (millions)
|
4,030
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,030
|
|
(2)
|
The Q3 2022 results have been restated to reflect
the increase in the gain on the demerger of Consumer Healthcare
from £9.6 billion to £10.1 billion See further
details on page 39.
|
|
Major restructuring and integration
|
|
Total
Major restructuring charges from continuing operations incurred in
Q3 2023 were £110 million (Q3 2022: £73 million),
analysed as follows:
|
|
|
Q3 2023
|
|
Q3
2022
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
£m
|
|
Non-
cash
£m
|
|
Total
£m
|
|
Cash
£m
|
|
Non-
cash
£m
|
|
Total
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Separation
Preparation restructuring
programme
|
45
|
|
50
|
|
95
|
|
38
|
|
22
|
|
60
|
|
Significant
acquisitions
|
18
|
|
(1)
|
|
17
|
|
10
|
|
-
|
|
10
|
|
Legacy
programmes
|
(1)
|
|
(1)
|
|
(2)
|
|
2
|
|
1
|
|
3
|
|
|
62
|
|
48
|
|
110
|
|
50
|
|
23
|
|
73
|
|
The
Separation Preparation programme incurred cash charges of £45
million primarily from the restructuring of some administrative
functions as well as Global Supply Chain and R&D. The non-cash
charges of £50 million primarily reflected the write down of
assets in administrative locations.
Costs
of significant acquisitions relate to integration costs of Sierra
Oncology Inc. (Sierra) and Affinivax Inc. (Affinivax) which were
acquired in Q3 2022 and Bellus acquired in Q2 2023.
Transaction-related adjustments
Transaction-related
adjustments from continuing operations resulted in a net charge of
£577 million (Q3 2022: £712 million) the majority of
which related to charges/credits for the remeasurement of
contingent consideration liabilities, the liabilities for the
Pfizer put option, and Pfizer and Shionogi preferential dividends
in ViiV Healthcare.
|
|
Charge/(credit)
|
Q3 2023
£m
|
|
Q3
2022
£m
|
|
Contingent
consideration on former Shionogi-ViiV Healthcare joint
Venture
(including Shionogi preferential dividends)
|
479
|
|
582
|
|
ViiV
Healthcare put options and Pfizer preferential
dividends
|
40
|
|
51
|
|
Contingent
consideration on former Novartis Vaccines business
|
(12)
|
|
60
|
|
Contingent
consideration on acquisition of Affinivax
|
69
|
|
-
|
|
Other
adjustments
|
1
|
|
19
|
|
|
|
|
|
|
Total
transaction-related charges
|
577
|
|
712
|
|
The
£479 million charge relating to the contingent consideration
for the former Shionogi-ViiV Healthcare joint venture represented
an increase in the valuation of the contingent consideration due to
Shionogi, driven by £383 million from updated exchange rates
and sales forecasts, and the unwind of the discount for £96
million. The £40 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 and higher cash
balances.
The
ViiV Healthcare contingent consideration liability is fair valued
under IFRS. An explanation of the accounting for the
non-controlling interests in ViiV Healthcare is set out on page
18.
The
£12 million credit relating to the contingent consideration on
the former Novartis Vaccines business primarily relates to changes
to future sales forecasts.
The
£69 million charge relating to the contingent consideration on
the acquisition of Affinivax primarily relates to an increase in
increased estimated probability of success for the 30-plus valent
pneumococcal vaccine candidate as well as unwind of the
discount.
Divestments, significant legal charges, and other
items
Divestments,
significant legal charges, and other items primarily included
dividend and distribution income received from investments
including a £184 million fair value gain on the investment in
Haleon. Legal charges provide for all significant legal matters,
including Zantac, and are not broken out
separately by litigation or investigation. Legal charges in the
quarter primarily reflected increased legal charges for Zantac of which the vast
majority relate to the prospective legal costs for the defence of
the litigation.
|
|
The
reconciliations between Total results and Adjusted results for YTD
2023 and YTD 2022 are set out below.
Nine months ended 30 September 2023
|
|
|
Total
results
£m
|
|
Intangible
amort-
isation
£m
|
|
Intangible
impair-
ment
£m
|
|
Major
restruct-
uring
£m
|
|
Trans-
action-
related
£m
|
|
Divest-
ments,
significant
legal
and
other
items
£m
|
|
Adjusted
results
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
22,276
|
|
|
|
|
|
|
|
|
|
|
|
22,276
|
|
Cost of
sales
|
(6,147)
|
|
477
|
|
|
|
97
|
|
|
|
20
|
|
(5,553)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
16,129
|
|
477
|
|
|
|
97
|
|
|
|
20
|
|
16,723
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administration
|
(6,707)
|
|
|
|
|
|
163
|
|
1
|
|
102
|
|
(6,441)
|
|
Research
and development
|
(4,176)
|
|
58
|
|
149
|
|
4
|
|
|
|
(1)
|
|
(3,966)
|
|
Royalty
income
|
718
|
|
|
|
|
|
|
|
|
|
|
|
718
|
|
Other
operating income/(expense)
|
208
|
|
|
|
|
|
|
|
116
|
|
(324)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
6,172
|
|
535
|
|
149
|
|
264
|
|
117
|
|
(203)
|
|
7,034
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
finance cost
|
(484)
|
|
|
|
|
|
1
|
|
|
|
5
|
|
(478)
|
|
Share
of after tax profit/(loss) of
associates and joint venture
|
(4)
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
|
Profit/(loss)
on disposal of interest in
associates
|
1
|
|
|
|
|
|
|
|
|
|
(1)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
5,685
|
|
535
|
|
149
|
|
265
|
|
117
|
|
(199)
|
|
6,552
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
(775)
|
|
(116)
|
|
(35)
|
|
(52)
|
|
(29)
|
|
(15)
|
|
(1,022)
|
|
Tax rate %
|
13.6%
|
|
|
|
|
|
|
|
|
|
|
|
15.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from continuing
operations
|
4,910
|
|
419
|
|
114
|
|
213
|
|
88
|
|
(214)
|
|
5,530
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to non-controlling
interests from continuing
operations
|
332
|
|
|
|
|
|
|
|
88
|
|
|
|
420
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to shareholders
from continuing operations
|
4,578
|
|
419
|
|
114
|
|
213
|
|
-
|
|
(214)
|
|
5,110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,910
|
|
419
|
|
114
|
|
213
|
|
88
|
|
(214)
|
|
5,530
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share from continuing
operations
|
113.0p
|
|
10.3p
|
|
2.8p
|
|
5.3p
|
|
-
|
|
(5.2)p
|
|
126.2p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares
(millions)
|
4,050
|
|
|
|
|
|
|
|
|
|
|
|
4,050
|
|
Nine months ended 30 September 2022
|
|
|
Total
results(2)
£m
|
|
Profit
from
discon-
tinued
operations(2)
£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
|
21,948
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21,948
|
|
Cost of
sales
|
(7,316)
|
|
|
|
501
|
|
|
|
60
|
|
35
|
|
9
|
|
(6,711)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
14,632
|
|
|
|
501
|
|
|
|
60
|
|
35
|
|
9
|
|
15,237
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and
administration
|
(5,934)
|
|
|
|
|
|
|
|
177
|
|
|
|
64
|
|
(5,693)
|
|
Research
and development
|
(3,691)
|
|
|
|
75
|
|
56
|
|
20
|
|
|
|
|
|
(3,540)
|
|
Royalty
income
|
552
|
|
|
|
|
|
|
|
|
|
|
|
|
|
552
|
|
Other
operating
income/(expense)
|
(994)
|
|
|
|
|
|
|
|
1
|
|
1,709
|
|
(716)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
4,565
|
|
|
|
576
|
|
56
|
|
258
|
|
1,744
|
|
(643)
|
|
6,556
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
finance cost
|
(559)
|
|
|
|
|
|
|
|
1
|
|
|
|
2
|
|
(556)
|
|
Share
of after tax profit/(loss)
of
associates and joint
ventures
|
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
4,002
|
|
|
|
576
|
|
56
|
|
259
|
|
1,744
|
|
(641)
|
|
5,996
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
(706)
|
|
|
|
(119)
|
|
(10)
|
|
(51)
|
|
(237)
|
|
157
|
|
(966)
|
|
Tax rate %
|
17.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from
continuing operations
|
3,296
|
|
|
|
457
|
|
46
|
|
208
|
|
1,507
|
|
(484)
|
|
5,030
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from
discontinued operations
and
other gains/(losses)
from the demerger(2)
|
3,054
|
|
(3,054)
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Remeasurement of
discontinued
operations distributed to
shareholders on
demerger(2)
|
7,651
|
|
(7,651)
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation from
discontinued operations(2)
|
10,705
|
|
(10,705)
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit after taxation
for the period(2)
|
14,001
|
|
(10,705)
|
|
457
|
|
46
|
|
208
|
|
1,507
|
|
(484)
|
|
5,030
|
|
Profit
attributable to non-
controlling interest from
continuing operations
|
335
|
|
|
|
|
|
|
|
|
|
111
|
|
|
|
446
|
|
Profit
attributable to
shareholders
from continuing operations
|
2,961
|
|
|
|
457
|
|
46
|
|
208
|
|
1,396
|
|
(484)
|
|
4,584
|
|
Profit
attributable to non-
controlling interest from
discontinued operations
|
205
|
|
(205)
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to
shareholders
from
discontinued
operations(2)
|
10,500
|
|
(10,500)
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,001
|
|
(10,705)
|
|
457
|
|
46
|
|
208
|
|
1,507
|
|
(484)
|
|
5,030
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profit attributable to
non-controlling interests
|
540
|
|
(205)
|
|
|
|
|
|
|
|
111
|
|
|
|
446
|
|
Total profit attributable to
shareholders(2)
|
13,461
|
|
(10,500)
|
|
457
|
|
46
|
|
208
|
|
1,396
|
|
(484)
|
|
4,584
|
|
|
14,001
|
|
(10,705)
|
|
457
|
|
46
|
|
208
|
|
1,507
|
|
(484)
|
|
5,030
|
|
Earnings
per share from
continuing operations
|
73.6p
|
|
|
|
11.4p
|
|
1.1p
|
|
5.2p
|
|
34.6p
|
|
(12.0p)
|
|
113.9p
|
|
Earnings
per share from
discontinued operations(2)
|
260.9p
|
|
(260.9)p
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
Total earnings per share(2)
|
334.5p
|
|
(260.9)p
|
|
11.4p
|
|
1.1p
|
|
5.2p
|
|
34.6p
|
|
(12.0)p
|
|
113.9p
|
|
Weighted
average number of
shares (millions)
|
4,024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,024
|
|
(2)
|
The Q3 2022 results have been restated to reflect the increase in
the gain on the demerger of Consumer Healthcare from £9.6
billion to £10.1 billion See further details on page
39.
|
|
Major restructuring and integration
|
|
Total
Major restructuring charges from continuing operations incurred in
nine months ended 30 September 2023 were £264 million (nine
months ended 30 September 2022: £258 million), analysed as
follows:
|
|
|
9 months 2023
|
|
9
months 2022
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
£m
|
|
Non-
cash
£m
|
|
Total
£m
|
|
Cash
£m
|
|
Non-
cash
£m
|
|
Total
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Separation
Preparation restructuring
programme
|
107
|
|
101
|
|
208
|
|
77
|
|
164
|
|
241
|
|
Significant
acquisitions
|
54
|
|
1
|
|
55
|
|
10
|
|
-
|
|
10
|
|
Legacy
programmes
|
1
|
|
-
|
|
1
|
|
3
|
|
4
|
|
7
|
|
|
162
|
|
102
|
|
264
|
|
90
|
|
168
|
|
258
|
|
The
Separation Preparation programme incurred cash charges of £107
million primarily from the restructuring of some administrative
functions as well as Global Supply Chain and R&D. The non-cash
charges of £101 million primarily reflected the write-down of
assets in administrative as well as manufacturing
locations.
The
benefit in the nine months ended 30 September 2023 from
restructuring programmes was £0.2 billion, primarily relating
to the Separation Preparation restructuring programme. The
programme has delivered £1.0 billion of annual savings to date
and targets to deliver £1.1 billion by 2023, with total costs
estimated at £2.4 billion, of which £1.6 billion is
expected to be cash costs.
Costs
of significant acquisitions relate to integration costs of Sierra
and Affinivax which were acquired in Q3 2022 and Bellus acquired in
Q2 2023.
Transaction-related adjustments
Transaction-related
adjustments from continuing operations resulted in a net charge of
£117 million (2022: £1,744 million) the majority of which
related to charges/(credits) for the remeasurement of contingent
consideration liabilities, the liabilities for the Pfizer put
option, and Pfizer and Shionogi preferential dividends in ViiV
Healthcare.
|
|
Charge/(credit)
|
9 months 2023
£m
|
|
9 months 2022
£m
|
|
|
|
|
|
|
Contingent
consideration on former Shionogi-ViiV Healthcare joint
Venture (including Shionogi
preferential dividends)
|
406
|
|
1,423
|
|
ViiV
Healthcare put options and Pfizer preferential
dividends
|
(203)
|
|
201
|
|
Contingent
consideration on former Novartis Vaccines business
|
(134)
|
|
100
|
|
Contingent
consideration on acquisition of Affinivax
|
47
|
|
-
|
|
Other
adjustments
|
1
|
|
20
|
|
|
|
|
|
|
Total
transaction-related charges
|
117
|
|
1,744
|
|
The
£406 million charge relating to the contingent consideration
for the former Shionogi-ViiV Healthcare joint venture represented
an increase in the valuation of the contingent consideration due to
Shionogi, driven by £105 million from updated exchange rates
and sales forecasts, and the unwind of the discount for £301
million. The £203 million credit relating to the ViiV
Healthcare put option and Pfizer preferential dividends represented
a reduction in the valuation of the put option as a result of
updated exchange rates, sales forecasts and lower cash
balances.
The
ViiV Healthcare contingent consideration liability is fair valued
under IFRS. An explanation of the accounting for the
non-controlling interests in ViiV Healthcare is set out on page
18.
The
£134 million credit relating to the contingent consideration
on the former Novartis Vaccines business primarily relates to
changes to future sales forecasts. The £47 million charge
relating to the contingent consideration on the acquisition of
Affinivax primarily relates to an increase in increased estimated
probability of success for the 30-plus valent pneumococcal vaccine
candidate as well as unwind of the discount.
Divestments, significant legal charges, and other
items
Divestments,
significant legal charges, and other items primarily included
dividend and distribution income received from investments
including a £154 million fair value gain on the investment in
Haleon and £30 million dividend. Significant legal charges in
the year to date primarily reflected increased legal charges
for Zantac of which the vast
majority relate to the prospective legal costs for the defence of
the litigation.
|
|
Financial
information
|
|
Income statements
|
|
|
Q3 2023
£m
|
|
Q3
2022(2)
£m
|
|
9 months 2023
£m
|
|
9
months 2022(2)
£m
|
|
|
|
|
|
|
|
|
|
|
TURNOVER
|
8,147
|
|
7,829
|
|
22,276
|
|
21,948
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
(2,272)
|
|
(2,423)
|
|
(6,147)
|
|
(7,316)
|
|
Gross
profit
|
5,875
|
|
5,406
|
|
16,129
|
|
14,632
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administration
|
(2,296)
|
|
(2,056)
|
|
(6,707)
|
|
(5,934)
|
|
Research
and development
|
(1,575)
|
|
(1,346)
|
|
(4,176)
|
|
(3,691)
|
|
Royalty
income
|
312
|
|
255
|
|
718
|
|
552
|
|
Other
operating income/(expense)
|
(367)
|
|
(1,068)
|
|
208
|
|
(994)
|
|
|
|
|
|
|
|
|
|
|
OPERATING PROFIT
|
1,949
|
|
1,191
|
|
6,172
|
|
4,565
|
|
|
|
|
|
|
|
|
|
|
Finance
income
|
24
|
|
22
|
|
86
|
|
50
|
|
Finance
expense
|
(182)
|
|
(200)
|
|
(570)
|
|
(609)
|
|
Share
of after tax profit/(loss) of associates and joint
ventures
|
-
|
|
(1)
|
|
(4)
|
|
(4)
|
|
Profit/(loss)
on disposal of interests in associates
|
-
|
|
-
|
|
1
|
|
-
|
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAXATION
|
1,791
|
|
1,012
|
|
5,685
|
|
4,002
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
(257)
|
|
(233)
|
|
(775)
|
|
(706)
|
|
Tax rate %
|
14.3%
|
|
23.0%
|
|
13.6%
|
|
17.6%
|
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAXATION FROM CONTINUING OPERATIONS
|
1,534
|
|
779
|
|
4,910
|
|
3,296
|
|
|
|
|
|
|
|
|
|
|
Profit
after taxation from discontinued operations
and other gains from the demerger(2)
|
-
|
|
2,429
|
|
-
|
|
3,054
|
|
|
|
|
|
|
|
|
|
|
Remeasurement
of discontinued operations distributed
to shareholders on demerger(2)
|
-
|
|
7,651
|
|
-
|
|
7,651
|
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAXATION FROM DISCONTINUED
OPERATIONS(2)
|
-
|
|
10,080
|
|
-
|
|
10,705
|
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAXATION FOR THE PERIOD(2)
|
1,534
|
|
10,859
|
|
4,910
|
|
14,001
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling interests from
continuing operations
|
70
|
|
20
|
|
332
|
|
335
|
|
Profit
attributable to shareholders from continuing
operations
|
1,464
|
|
759
|
|
4,578
|
|
2,961
|
|
Profit
attributable to non-controlling interests from
discontinued operations
|
-
|
|
18
|
|
-
|
|
205
|
|
Profit
attributable to shareholders from discontinued
operations(2)
|
-
|
|
10,062
|
|
-
|
|
10,500
|
|
|
1,534
|
|
10,859
|
|
4,910
|
|
14,001
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to non-controlling interests
|
70
|
|
38
|
|
332
|
|
540
|
|
Profit
attributable to shareholders(2)
|
1,464
|
|
10,821
|
|
4,578
|
|
13,461
|
|
|
|
|
|
|
|
|
|
|
|
1,534
|
|
10,859
|
|
4,910
|
|
14,001
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE FROM CONTINUING OPERATIONS
|
36.1p
|
|
18.8p
|
|
113.0p
|
|
73.6p
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE FROM DISCONTINUED OPERATIONS(2)
|
-
|
|
249.7p
|
|
-
|
|
260.9p
|
|
|
|
|
|
|
|
|
|
|
TOTAL EARNINGS PER SHARE(2)
|
36.1p
|
|
268.5p
|
|
113.0p
|
|
334.5p
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share from continuing operations
|
35.6p
|
|
18.6p
|
|
111.4p
|
|
72.5p
|
|
Diluted
earnings per share from discontinued
operations(2)
|
-
|
|
246.1p
|
|
-
|
|
257.2p
|
|
Total
diluted earnings per share(2)
|
35.6p
|
|
264.7p
|
|
111.4p
|
|
329.7p
|
|
(2)
|
The Q3 2022 results have been restated to reflect the increase in
the gain on the demerger of Consumer Healthcare from £9.6
billion to £10.1 billion See further details on page
39.
|
|
Statement of comprehensive income
|
|
|
Q3 2023
£m
|
|
Q3
2022(2)
£m
|
|
9 months 2023
£m
|
|
9 months 2022(2)
£m
|
|
|
|
|
|
|
|
|
|
|
Total
profit for the period(2)
|
1,534
|
|
10,859
|
|
4,910
|
|
14,001
|
|
|
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently to continuing
operations income statement:
|
|
|
|
|
|
|
|
|
Exchange
movements on overseas net assets and
net investment hedges
|
(94)
|
|
93
|
|
(87)
|
|
(105)
|
|
Reclassification
of exchange movements on liquidation
or disposal of overseas subsidiaries and associates
|
(7)
|
|
1
|
|
(20)
|
|
10
|
|
Fair
value movements on cash flow hedges
|
-
|
|
11
|
|
1
|
|
13
|
|
Deferred
tax on fair value movements on cash flow
hedges
|
-
|
|
17
|
|
(1)
|
|
17
|
|
Reclassification
of cash flow hedges to income
statement
|
1
|
|
(1)
|
|
4
|
|
12
|
|
|
|
|
|
|
|
|
|
|
|
(100)
|
|
121
|
|
(103)
|
|
(53)
|
|
|
|
|
|
|
|
|
|
|
Items that will not be reclassified to continuing operations income
statement:
|
|
|
|
|
|
|
|
|
Exchange
movements on overseas net assets of
non-controlling interests
|
5
|
|
(5)
|
|
(17)
|
|
(5)
|
|
Fair
value movements on equity investments
|
(242)
|
|
(24)
|
|
(359)
|
|
(648)
|
|
Tax on
fair value movements on equity investments
|
18
|
|
4
|
|
35
|
|
61
|
|
Fair
value movements on cash flow hedges
|
-
|
|
-
|
|
(34)
|
|
-
|
|
Remeasurement
gains/(losses) on defined benefit plans
|
(266)
|
|
(1,195)
|
|
(216)
|
|
(682)
|
|
Tax on
remeasurement losses/(gains) on defined
benefit plans
|
63
|
|
303
|
|
55
|
|
177
|
|
|
|
|
|
|
|
|
|
|
|
(422)
|
|
(917)
|
|
(536)
|
|
(1,097)
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive expense for the period from
continuing operations
|
(522)
|
|
(796)
|
|
(639)
|
|
(1,150)
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income for the period from
discontinued operations
|
-
|
|
(595)
|
|
-
|
|
333
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income for the period(2)
|
1,012
|
|
9,468
|
|
4,271
|
|
13,184
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income for the period attributable
to:
|
|
|
|
|
|
|
|
|
Shareholders(2)
|
937
|
|
9,410
|
|
3,956
|
|
12,649
|
|
Non-controlling
interests
|
75
|
|
58
|
|
315
|
|
535
|
|
|
|
|
|
|
|
|
|
|
|
1,012
|
|
9,468
|
|
4,271
|
|
13,184
|
|
(2)
|
The Q3 2022 results have been restated to reflect the increase in
the gain on the demerger of Consumer Healthcare from £9.6
billion to £10.1 billion See further details on page
39.
|
|
Balance sheet
|
|
|
30 September 2023
£m
|
|
31
December 2022
£m
|
|
ASSETS
|
|
|
|
|
Non-current assets
|
|
|
|
|
Property,
plant and equipment
|
8,814
|
|
8,933
|
|
Right
of use assets
|
640
|
|
687
|
|
Goodwill
|
6,973
|
|
7,046
|
|
Other
intangible assets
|
15,295
|
|
14,318
|
|
Investments
in associates and joint ventures
|
75
|
|
74
|
|
Other
investments
|
1,067
|
|
1,467
|
|
Deferred
tax assets
|
5,610
|
|
5,658
|
|
Other
non-current assets
|
1,148
|
|
1,194
|
|
|
|
|
|
|
Total non-current assets
|
39,622
|
|
39,377
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
Inventories
|
5,480
|
|
5,146
|
|
Current
tax recoverable
|
330
|
|
405
|
|
Trade
and other receivables
|
8,544
|
|
7,053
|
|
Derivative
financial instruments
|
143
|
|
190
|
|
Current
equity investments
|
3,436
|
|
4,087
|
|
Liquid
investments
|
70
|
|
67
|
|
Cash
and cash equivalents
|
3,177
|
|
3,723
|
|
Assets
held for sale
|
60
|
|
98
|
|
|
|
|
|
|
Total current assets
|
21,240
|
|
20,769
|
|
|
|
|
|
|
TOTAL ASSETS
|
60,862
|
|
60,146
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
Current liabilities
|
|
|
|
|
Short-term
borrowings
|
(4,843)
|
|
(3,952)
|
|
Contingent
consideration liabilities
|
(1,024)
|
|
(1,289)
|
|
Trade
and other payables
|
(15,582)
|
|
(16,263)
|
|
Derivative
financial instruments
|
(121)
|
|
(183)
|
|
Current
tax payable
|
(286)
|
|
(471)
|
|
Short-term
provisions
|
(534)
|
|
(652)
|
|
|
|
|
|
|
Total current liabilities
|
(22,390)
|
|
(22,810)
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
Long-term
borrowings
|
(15,993)
|
|
(17,035)
|
|
Corporation
tax payable
|
(78)
|
|
(127)
|
|
Deferred
tax liabilities
|
(402)
|
|
(289)
|
|
Pensions
and other post-employment benefits
|
(2,278)
|
|
(2,579)
|
|
Derivative
financial instruments
|
(6)
|
|
-
|
|
Other
provisions
|
(546)
|
|
(532)
|
|
Contingent
consideration liabilities
|
(5,486)
|
|
(5,779)
|
|
Other
non-current liabilities
|
(1,064)
|
|
(899)
|
|
|
|
|
|
|
Total non-current liabilities
|
(25,853)
|
|
(27,240)
|
|
|
|
|
|
|
TOTAL LIABILITIES
|
(48,243)
|
|
(50,050)
|
|
|
|
|
|
|
NET ASSETS
|
12,619
|
|
10,096
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
Share
capital
|
1,348
|
|
1,347
|
|
Share
premium account
|
3,450
|
|
3,440
|
|
Retained
earnings
|
7,017
|
|
4,363
|
|
Other
reserves
|
1,318
|
|
1,448
|
|
|
|
|
|
|
Shareholders' equity
|
13,133
|
|
10,598
|
|
|
|
|
|
|
Non-controlling
interests
|
(514)
|
|
(502)
|
|
|
|
|
|
|
TOTAL EQUITY
|
12,619
|
|
10,096
|
|
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 2023
|
1,347
|
|
3,440
|
|
4,363
|
|
1,448
|
|
10,598
|
|
(502)
|
|
10,096
|
|
Profit
for the period
|
|
|
|
|
4,578
|
|
|
|
4,578
|
|
332
|
|
4,910
|
|
Other comprehensive
income/(expense) for the period
|
|
|
|
|
(279)
|
|
(343)
|
|
(622)
|
|
(17)
|
|
(639)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income/(expense)
for the period
|
|
|
|
|
4,299
|
|
(343)
|
|
3,956
|
|
315
|
|
4,271
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
to non-controlling interests
|
|
|
|
|
|
|
|
|
|
|
(334)
|
|
(334)
|
|
Contributions
from non-controlling
interests
|
|
|
|
|
|
|
|
|
|
|
7
|
|
7
|
|
Dividends
to shareholders
|
|
|
|
|
(1,679)
|
|
|
|
(1,679)
|
|
|
|
(1,679)
|
|
Realised
after tax losses on disposal
or liquidation of equity investments
|
|
|
|
|
(33)
|
|
33
|
|
|
|
|
|
-
|
|
Share
of associates and joint ventures
realised profit/(loss) on disposal of equity
investments
|
|
|
|
|
2
|
|
(2)
|
|
|
|
|
|
-
|
|
Shares
issued
|
1
|
|
8
|
|
|
|
|
|
9
|
|
|
|
9
|
|
Write-down
on shares held by ESOP
Trusts
|
|
|
|
|
(153)
|
|
153
|
|
|
|
|
|
-
|
|
Shares
acquired by ESOP Trusts
|
|
|
2
|
|
1
|
|
(3)
|
|
|
|
|
|
-
|
|
Share-based
incentive plans
|
|
|
|
|
217
|
|
|
|
217
|
|
|
|
217
|
|
Hedging
gain/loss after taxation
transferred to non-financial assets
|
|
|
|
|
|
|
32
|
|
32
|
|
|
|
32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30 September 2023
|
1,348
|
|
3,450
|
|
7,017
|
|
1,318
|
|
13,133
|
|
(514)
|
|
12,619
|
|
|
Share
capital
£m
|
|
Share
premium
£m
|
|
Retained
earnings(2)
£m
|
|
Other
reserves
£m
|
|
Share-
holder's
equity(2)
£m
|
|
Non-
controlling
interests
£m
|
|
Total
equity(2)
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1
January 2022
|
1,347
|
|
3,301
|
|
7,944
|
|
2,463
|
|
15,055
|
|
6,287
|
|
21,342
|
|
Profit
for the period(2)
|
|
|
|
|
13,461
|
|
-
|
|
13,461
|
|
540
|
|
14,001
|
|
Other comprehensive
income/(expense) for the period
|
|
|
|
|
(259)
|
|
(553)
|
|
(812)
|
|
(5)
|
|
(817)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income/(expense)
for the period(2)
|
|
|
|
|
13,202
|
|
(553)
|
|
12,649
|
|
535
|
|
13,184
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
to non-controlling interests
|
|
|
|
|
|
|
|
|
|
|
(1,278)
|
|
(1,278)
|
|
Non-cash
distribution to non-controlling
interests
|
|
|
|
|
|
|
|
|
|
|
(2,960)
|
|
(2,960)
|
|
Contributions
from non-controlling
interests
|
|
|
|
|
|
|
|
|
|
|
8
|
|
8
|
|
Deconsolidation
of former subsidiaries
|
|
|
|
|
|
|
|
|
|
|
(3,028)
|
|
(3,028)
|
|
Dividends
to shareholders
|
|
|
|
|
(2,813)
|
|
|
|
(2,813)
|
|
|
|
(2,813)
|
|
Non-cash
dividend to shareholders
|
|
|
|
|
(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
|
|
|
|
|
(1)
|
|
1
|
|
|
|
|
|
-
|
|
Share
issued
|
|
|
25
|
|
|
|
|
|
25
|
|
|
|
25
|
|
Write-down
of shares held by ESOP Trusts
|
|
|
|
|
(530)
|
|
530
|
|
|
|
|
|
-
|
|
Shares
held by ESOP trust
|
|
|
|
|
(164)
|
|
164
|
|
|
|
|
|
-
|
|
Shares
acquired by ESOP Trusts
|
|
|
114
|
|
704
|
|
(818)
|
|
|
|
|
|
-
|
|
Share-based
incentive plans
|
|
|
|
|
268
|
|
|
|
268
|
|
|
|
268
|
|
At
30 September 2022(2)
|
1,347
|
|
3,440
|
|
3,098
|
|
1,773
|
|
9,658
|
|
(436)
|
|
9,222
|
|
(2)
|
The Q3 2022 results have been
restated to reflect the increase in the gain on the demerger of
Consumer Healthcare from £9.6 billion to £10.1
billion See further details on page 39.
|
|
Cash flow statement nine months ended 30 September
2023
|
|
|
9 months 2023
£m
|
|
9
months 2022
£m
|
|
Profit after tax from continuing operations
|
4,910
|
|
3,296
|
|
Tax on
profits
|
775
|
|
706
|
|
Share
of after tax loss/(profit) of associates and joint
ventures
|
4
|
|
4
|
|
(Profit)/loss
on disposal of interest in associates and joint
ventures
|
(1)
|
|
-
|
|
Net
finance expense
|
484
|
|
559
|
|
Depreciation,
amortisation and other adjusting items
|
1,671
|
|
2,291
|
|
Increase
in working capital
|
(2,669)
|
|
(667)
|
|
Contingent
consideration paid
|
(853)
|
|
(789)
|
|
Decrease
in other net liabilities (excluding contingent consideration
paid)
|
94
|
|
443
|
|
Cash generated from operations attributable to continuing
operations
|
4,415
|
|
5,843
|
|
Taxation
paid
|
(843)
|
|
(1,110)
|
|
Net cash inflow/(outflow) from continuing operating
activities
|
3,572
|
|
4,733
|
|
Cash
generated from operations attributable to discontinued
operations
|
-
|
|
928
|
|
Taxation
paid from discontinued operations
|
-
|
|
(163)
|
|
Net operating cash flows attributable to discontinued
operations
|
-
|
|
765
|
|
Total net cash inflows/(outflows) from operating
activities
|
3,572
|
|
5,498
|
|
Cash flow from investing activities
|
|
|
|
|
Purchase
of property, plant and equipment
|
(828)
|
|
(705)
|
|
Proceeds
from sale of property, plant and equipment
|
21
|
|
13
|
|
Purchase
of intangible assets
|
(733)
|
|
(802)
|
|
Proceeds
from sale of intangible assets
|
12
|
|
126
|
|
Purchase
of equity investments
|
(92)
|
|
(121)
|
|
(Increase)/decrease
in liquid investments
|
47
|
|
-
|
|
Purchase
of businesses net of cash acquired
|
(1,459)
|
|
(3,030)
|
|
Proceeds
from sale of equity investments
|
834
|
|
115
|
|
Share
transactions with minority shareholders
|
-
|
|
1
|
|
Contingent
consideration paid
|
(7)
|
|
(75)
|
|
Disposal
of businesses
|
56
|
|
(19)
|
|
Investment
in associates and joint ventures
|
-
|
|
(1)
|
|
Interest
received
|
83
|
|
49
|
|
Proceeds
from disposal of associates and joint ventures
|
1
|
|
-
|
|
Dividend
and distributions from investments
|
201
|
|
-
|
|
Dividends
from associates and joint ventures
|
1
|
|
-
|
|
Net cash inflow/(outflow) from continuing investing
activities
|
(1,863)
|
|
(4,449)
|
|
Net
investing cash flows attributable to discontinued
operations
|
-
|
|
(3,783)
|
|
Total net cash inflow/(outflow) from investing
activities
|
(1,863)
|
|
(8,232)
|
|
Cash flow from financing activities
|
|
|
|
|
Issue
of share capital
|
9
|
|
25
|
|
Repayment
of long-term loans
|
(144)
|
|
(9)
|
|
Issue
of long-term notes
|
238
|
|
-
|
|
Repayment
of short-term loans(3)
|
(1,088)
|
|
(5,020)
|
|
Net
increase/(repayment) of other short-term loans(3)
|
1,394
|
|
813
|
|
Repayment
of lease liabilities
|
(148)
|
|
(149)
|
|
Interest
paid
|
(480)
|
|
(504)
|
|
Dividends
paid to shareholders
|
(1,679)
|
|
(2,813)
|
|
Distribution
to non-controlling interests
|
(334)
|
|
(390)
|
|
Contributions
from non-controlling interests
|
7
|
|
8
|
|
Other
financing items
|
176
|
|
126
|
|
Net cash inflow/(outflow) from continuing financing
activities
|
(2,049)
|
|
(7,913)
|
|
Net
financing cash flows attributable to discontinued
operations
|
-
|
|
10,074
|
|
Total net cash inflow/(outflow) from financing
activities
|
(2,049)
|
|
2,161
|
|
Cash flow statement nine months ended 30 September
2023 (continued)
|
|
|
9 months 2023
£m
|
|
9
months 2022
£m
|
|
|
|
|
|
|
Increase/(decrease) in cash and bank overdrafts in the
period
|
(340)
|
|
(573)
|
|
Cash
and bank overdrafts at beginning of the period
|
3,425
|
|
3,819
|
|
Exchange
adjustments
|
(65)
|
|
106
|
|
Increase/(decrease)
in cash and bank overdrafts
|
(340)
|
|
(573)
|
|
Cash and bank overdrafts at end of the period
|
3,020
|
|
3,352
|
|
Cash
and bank overdrafts at end of the period comprise:
|
|
|
|
|
Cash
and cash equivalents
|
3,177
|
|
3,606
|
|
Overdrafts
|
(157)
|
|
(254)
|
|
|
3,020
|
|
3,352
|
|
(3)
|
Amended to reflect the gross cash
flows with no impact on overall financing cash
flows.
|
|
Vaccines turnover - three months ended 30 September
2023
|
|
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
||||||||||||||||
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
||||||||
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
Shingles
|
825
|
|
9
|
|
15
|
|
414
|
|
(13)
|
|
(6)
|
|
227
|
|
31
|
|
32
|
|
184
|
|
64
|
|
78
|
|
Shingrix
|
825
|
|
9
|
|
15
|
|
414
|
|
(13)
|
|
(6)
|
|
227
|
|
31
|
|
32
|
|
184
|
|
64
|
|
78
|
|
Meningitis
|
441
|
|
-
|
|
3
|
|
272
|
|
(3)
|
|
(1)
|
|
109
|
|
20
|
|
18
|
|
60
|
|
(13)
|
|
(1)
|
|
Bexsero
|
266
|
|
(3)
|
|
-
|
|
132
|
|
(20)
|
|
(18)
|
|
104
|
|
22
|
|
21
|
|
30
|
|
25
|
|
46
|
|
Menveo
|
168
|
|
7
|
|
10
|
|
140
|
|
22
|
|
23
|
|
3
|
|
(25)
|
|
(25)
|
|
25
|
|
(34)
|
|
(29)
|
|
Other
|
7
|
|
(22)
|
|
(22)
|
|
-
|
|
-
|
|
-
|
|
2
|
|
-
|
|
(50)
|
|
5
|
|
(29)
|
|
(14)
|
|
RSV
|
709
|
|
-
|
|
-
|
|
700
|
|
-
|
|
-
|
|
2
|
|
-
|
|
-
|
|
7
|
|
-
|
|
-
|
|
Arexvy
|
709
|
|
-
|
|
-
|
|
700
|
|
-
|
|
-
|
|
2
|
|
-
|
|
-
|
|
7
|
|
-
|
|
-
|
|
Influenza
|
374
|
|
(4)
|
|
(4)
|
|
317
|
|
(4)
|
|
(5)
|
|
21
|
|
(25)
|
|
(25)
|
|
36
|
|
20
|
|
27
|
|
Fluarix, FluLaval
|
374
|
|
(4)
|
|
(4)
|
|
317
|
|
(4)
|
|
(5)
|
|
21
|
|
(25)
|
|
(25)
|
|
36
|
|
20
|
|
27
|
|
Established Vaccines
|
868
|
|
(2)
|
|
3
|
|
343
|
|
(10)
|
|
(4)
|
|
170
|
|
(11)
|
|
(9)
|
|
355
|
|
13
|
|
18
|
|
Infanrix, Pediarix
|
145
|
|
(23)
|
|
(19)
|
|
82
|
|
(29)
|
|
(26)
|
|
26
|
|
(37)
|
|
(37)
|
|
37
|
|
19
|
|
32
|
|
Boostrix
|
169
|
|
(6)
|
|
(2)
|
|
123
|
|
1
|
|
6
|
|
29
|
|
(19)
|
|
(19)
|
|
17
|
|
(19)
|
|
(14)
|
|
Hepatitis
|
157
|
|
(4)
|
|
1
|
|
95
|
|
(8)
|
|
(3)
|
|
40
|
|
5
|
|
5
|
|
22
|
|
(4)
|
|
9
|
|
Rotarix
|
144
|
|
1
|
|
7
|
|
34
|
|
36
|
|
52
|
|
28
|
|
(3)
|
|
(3)
|
|
82
|
|
(8)
|
|
(2)
|
|
Synflorix
|
89
|
|
25
|
|
27
|
|
-
|
|
-
|
|
-
|
|
8
|
|
-
|
|
-
|
|
81
|
|
29
|
|
30
|
|
Priorix, Priorix Tetra,
Varilrix
|
82
|
|
61
|
|
67
|
|
4
|
|
>100
|
|
>100
|
|
35
|
|
59
|
|
55
|
|
43
|
|
54
|
|
64
|
|
Cervarix
|
31
|
|
(22)
|
|
(20)
|
|
-
|
|
-
|
|
-
|
|
2
|
|
(71)
|
|
(57)
|
|
29
|
|
(12)
|
|
(12)
|
|
Other
|
51
|
|
6
|
|
10
|
|
5
|
|
(62)
|
|
(46)
|
|
2
|
|
(78)
|
|
(56)
|
|
44
|
|
69
|
|
62
|
|
Vaccines ex COVID
|
3,217
|
|
30
|
|
34
|
|
2,046
|
|
40
|
|
43
|
|
529
|
|
10
|
|
10
|
|
642
|
|
22
|
|
30
|
|
Pandemic vaccines
|
1
|
|
(83)
|
|
(67)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1
|
|
(83)
|
|
(67)
|
|
Pandemic
adjuvant
|
1
|
|
(83)
|
|
(67)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1
|
|
(83)
|
|
(67)
|
|
Vaccines
|
3,218
|
|
30
|
|
33
|
|
2,046
|
|
40
|
|
43
|
|
529
|
|
10
|
|
10
|
|
643
|
|
21
|
|
29
|
|
Vaccines turnover - nine months ended 30 September
2023
|
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
||||||||||||||||
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
||||||||
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
Shingles
|
2,538
|
|
16
|
|
15
|
|
1,395
|
|
(6)
|
|
(7)
|
|
684
|
|
41
|
|
38
|
|
459
|
|
>100
|
|
>100
|
|
Shingrix
|
2,538
|
|
16
|
|
15
|
|
1,395
|
|
(6)
|
|
(7)
|
|
684
|
|
41
|
|
38
|
|
459
|
|
>100
|
|
>100
|
|
Meningitis
|
987
|
|
11
|
|
11
|
|
511
|
|
2
|
|
1
|
|
329
|
|
26
|
|
23
|
|
147
|
|
16
|
|
24
|
|
Bexsero
|
678
|
|
12
|
|
12
|
|
275
|
|
(7)
|
|
(8)
|
|
316
|
|
29
|
|
26
|
|
87
|
|
43
|
|
54
|
|
Menveo
|
293
|
|
9
|
|
9
|
|
236
|
|
16
|
|
15
|
|
9
|
|
(25)
|
|
(25)
|
|
48
|
|
(9)
|
|
(4)
|
|
Other
|
16
|
|
(6)
|
|
(6)
|
|
-
|
|
-
|
|
-
|
|
4
|
|
-
|
|
(25)
|
|
12
|
|
(8)
|
|
-
|
|
RSV
|
709
|
|
-
|
|
-
|
|
700
|
|
-
|
|
-
|
|
2
|
|
-
|
|
-
|
|
7
|
|
-
|
|
-
|
|
Arexvy
|
709
|
|
-
|
|
-
|
|
700
|
|
-
|
|
-
|
|
2
|
|
-
|
|
-
|
|
7
|
|
-
|
|
-
|
|
Influenza
|
409
|
|
(7)
|
|
(7)
|
|
318
|
|
(4)
|
|
(5)
|
|
21
|
|
(25)
|
|
(25)
|
|
70
|
|
(10)
|
|
(6)
|
|
Fluarix, FluLaval
|
409
|
|
(7)
|
|
(7)
|
|
318
|
|
(4)
|
|
(5)
|
|
21
|
|
(25)
|
|
(25)
|
|
70
|
|
(10)
|
|
(6)
|
|
Established Vaccines
|
2,495
|
|
7
|
|
6
|
|
1,005
|
|
7
|
|
6
|
|
552
|
|
4
|
|
2
|
|
938
|
|
8
|
|
9
|
|
Infanrix, Pediarix
|
407
|
|
(16)
|
|
(16)
|
|
224
|
|
(20)
|
|
(21)
|
|
79
|
|
(22)
|
|
(23)
|
|
104
|
|
1
|
|
5
|
|
Boostrix
|
472
|
|
2
|
|
1
|
|
316
|
|
10
|
|
9
|
|
92
|
|
(14)
|
|
(16)
|
|
64
|
|
(7)
|
|
(6)
|
|
Hepatitis
|
485
|
|
9
|
|
8
|
|
276
|
|
(1)
|
|
(2)
|
|
132
|
|
25
|
|
22
|
|
77
|
|
28
|
|
32
|
|
Rotarix
|
466
|
|
23
|
|
23
|
|
159
|
|
>100
|
|
>100
|
|
89
|
|
(1)
|
|
(3)
|
|
218
|
|
1
|
|
4
|
|
Synflorix
|
227
|
|
(4)
|
|
(5)
|
|
-
|
|
-
|
|
-
|
|
27
|
|
12
|
|
12
|
|
200
|
|
(6)
|
|
(7)
|
|
Priorix, Priorix Tetra,
Varilrix
|
189
|
|
37
|
|
37
|
|
11
|
|
>100
|
|
>100
|
|
98
|
|
34
|
|
32
|
|
80
|
|
25
|
|
28
|
|
Cervarix
|
110
|
|
21
|
|
23
|
|
-
|
|
-
|
|
-
|
|
30
|
|
100
|
|
100
|
|
80
|
|
5
|
|
8
|
|
Other
|
139
|
|
31
|
|
29
|
|
19
|
|
-
|
|
16
|
|
5
|
|
(69)
|
|
(69)
|
|
115
|
|
62
|
|
55
|
|
Vaccines ex COVID
|
7,138
|
|
22
|
|
21
|
|
3,929
|
|
21
|
|
19
|
|
1,588
|
|
22
|
|
19
|
|
1,621
|
|
25
|
|
28
|
|
Pandemic vaccines
|
143
|
|
>100
|
|
>100
|
|
-
|
|
-
|
|
-
|
|
123
|
|
-
|
|
-
|
|
20
|
|
>100
|
|
>100
|
|
Pandemic
adjuvant
|
143
|
|
>100
|
|
>100
|
|
-
|
|
-
|
|
-
|
|
123
|
|
-
|
|
-
|
|
20
|
|
>100
|
|
>100
|
|
Vaccines
|
7,281
|
|
24
|
|
24
|
|
3,929
|
|
21
|
|
19
|
|
1,711
|
|
31
|
|
28
|
|
1,641
|
|
26
|
|
29
|
|
Specialty Medicines turnover - three months ended 30 September
2023
|
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
||||||||||||||||
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
||||||||
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
HIV
|
1,623
|
|
9
|
|
15
|
|
1,088
|
|
9
|
|
15
|
|
345
|
|
4
|
|
4
|
|
190
|
|
24
|
|
41
|
|
Dolutegravir
products
|
1,361
|
|
2
|
|
8
|
|
867
|
|
(1)
|
|
5
|
|
312
|
|
-
|
|
-
|
|
182
|
|
30
|
|
47
|
|
Tivicay
|
340
|
|
(1)
|
|
7
|
|
192
|
|
(15)
|
|
(10)
|
|
64
|
|
(4)
|
|
(4)
|
|
84
|
|
75
|
|
>100
|
|
Triumeq
|
373
|
|
(20)
|
|
(16)
|
|
263
|
|
(19)
|
|
(14)
|
|
65
|
|
(25)
|
|
(25)
|
|
45
|
|
(18)
|
|
(9)
|
|
Juluca
|
171
|
|
8
|
|
12
|
|
134
|
|
8
|
|
15
|
|
34
|
|
6
|
|
3
|
|
3
|
|
-
|
|
-
|
|
Dovato
|
477
|
|
32
|
|
37
|
|
278
|
|
39
|
|
46
|
|
149
|
|
18
|
|
18
|
|
50
|
|
47
|
|
59
|
|
Rukobia
|
30
|
|
43
|
|
52
|
|
28
|
|
33
|
|
43
|
|
2
|
|
100
|
|
100
|
|
-
|
|
-
|
|
-
|
|
Cabenuva
|
182
|
|
80
|
|
87
|
|
151
|
|
74
|
|
82
|
|
26
|
|
>100
|
|
>100
|
|
5
|
|
67
|
|
33
|
|
Apretude
|
37
|
|
>100
|
|
>100
|
|
37
|
|
>100
|
|
>100
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Other
|
13
|
|
(50)
|
|
(42)
|
|
5
|
|
(38)
|
|
(38)
|
|
5
|
|
(29)
|
|
(43)
|
|
3
|
|
(73)
|
|
(45)
|
|
Respiratory/
Immunology
and Other
|
769
|
|
12
|
|
18
|
|
528
|
|
9
|
|
15
|
|
119
|
|
24
|
|
24
|
|
122
|
|
13
|
|
28
|
|
Nucala
|
413
|
|
13
|
|
19
|
|
241
|
|
7
|
|
13
|
|
97
|
|
28
|
|
29
|
|
75
|
|
17
|
|
30
|
|
Benlysta
|
349
|
|
13
|
|
20
|
|
287
|
|
12
|
|
18
|
|
25
|
|
19
|
|
19
|
|
37
|
|
23
|
|
43
|
|
Other
|
7
|
|
(50)
|
|
(50)
|
|
-
|
|
>(100)
|
|
>(100)
|
|
(3)
|
|
>(100)
|
|
>(100)
|
|
10
|
|
(29)
|
|
(14)
|
|
Oncology
|
200
|
|
22
|
|
26
|
|
111
|
|
34
|
|
39
|
|
72
|
|
3
|
|
3
|
|
17
|
|
55
|
|
82
|
|
Zejula
|
140
|
|
17
|
|
22
|
|
71
|
|
22
|
|
28
|
|
54
|
|
6
|
|
4
|
|
15
|
|
36
|
|
73
|
|
Blenrep
|
10
|
|
(72)
|
|
(69)
|
|
-
|
|
(100)
|
|
(100)
|
|
10
|
|
(37)
|
|
(31)
|
|
-
|
|
-
|
|
-
|
|
Jemperli
|
45
|
|
>100
|
|
>100
|
|
36
|
|
>100
|
|
>100
|
|
8
|
|
>100
|
|
>100
|
|
1
|
|
-
|
|
-
|
|
Ojjaara
|
4
|
|
-
|
|
-
|
|
4
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Other
|
1
|
|
>100
|
|
>100
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1
|
|
>100
|
|
>100
|
|
Specialty Medicines
ex COVID
|
2,592
|
|
11
|
|
17
|
|
1,727
|
|
10
|
|
16
|
|
536
|
|
8
|
|
8
|
|
329
|
|
21
|
|
38
|
|
Pandemic
|
-
|
|
(100)
|
|
(100)
|
|
-
|
|
(100)
|
|
(100)
|
|
-
|
|
(100)
|
|
(100)
|
|
-
|
|
(100)
|
|
(100)
|
|
Xevudy
|
-
|
|
(100)
|
|
(100)
|
|
-
|
|
(100)
|
|
(100)
|
|
-
|
|
(100)
|
|
(100)
|
|
-
|
|
(100)
|
|
(100)
|
|
Specialty Medicines
|
2,592
|
|
(6)
|
|
(1)
|
|
1,727
|
|
8
|
|
14
|
|
536
|
|
7
|
|
7
|
|
329
|
|
(50)
|
|
(43)
|
|
Specialty Medicines turnover - nine months ended 30 September
2023
|
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
||||||||||||||||
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
||||||||
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
HIV
|
4,671
|
|
15
|
|
14
|
|
3,061
|
|
18
|
|
17
|
|
1,049
|
|
9
|
|
6
|
|
561
|
|
10
|
|
15
|
|
Dolutegravir
products
|
3,963
|
|
7
|
|
6
|
|
2,472
|
|
7
|
|
6
|
|
957
|
|
4
|
|
2
|
|
534
|
|
12
|
|
18
|
|
Tivicay
|
1,037
|
|
3
|
|
3
|
|
588
|
|
-
|
|
(1)
|
|
199
|
|
(2)
|
|
(4)
|
|
250
|
|
16
|
|
23
|
|
Triumeq
|
1,139
|
|
(14)
|
|
(14)
|
|
782
|
|
(11)
|
|
(12)
|
|
214
|
|
(23)
|
|
(25)
|
|
143
|
|
(13)
|
|
(9)
|
|
Juluca
|
484
|
|
9
|
|
8
|
|
371
|
|
9
|
|
8
|
|
103
|
|
8
|
|
5
|
|
10
|
|
-
|
|
10
|
|
Dovato
|
1,303
|
|
39
|
|
38
|
|
731
|
|
44
|
|
42
|
|
441
|
|
29
|
|
26
|
|
131
|
|
52
|
|
60
|
|
Rukobia
|
82
|
|
46
|
|
45
|
|
76
|
|
41
|
|
41
|
|
5
|
|
>100
|
|
>100
|
|
1
|
|
>100
|
|
>100
|
|
Cabenuva
|
485
|
|
>100
|
|
>100
|
|
402
|
|
>100
|
|
>100
|
|
71
|
|
>100
|
|
>100
|
|
12
|
|
>100
|
|
>100
|
|
Apretude
|
97
|
|
>100
|
|
>100
|
|
97
|
|
>100
|
|
>100
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Other
|
44
|
|
(41)
|
|
(41)
|
|
14
|
|
(42)
|
|
(42)
|
|
16
|
|
(20)
|
|
(25)
|
|
14
|
|
(55)
|
|
(52)
|
|
Respiratory/
Immunology
and Other
|
2,162
|
|
15
|
|
15
|
|
1,475
|
|
12
|
|
11
|
|
343
|
|
26
|
|
24
|
|
344
|
|
15
|
|
24
|
|
Nucala
|
1,184
|
|
15
|
|
16
|
|
686
|
|
7
|
|
6
|
|
281
|
|
31
|
|
28
|
|
217
|
|
25
|
|
34
|
|
Benlysta
|
960
|
|
17
|
|
17
|
|
788
|
|
16
|
|
15
|
|
73
|
|
22
|
|
20
|
|
99
|
|
21
|
|
30
|
|
Other
|
18
|
|
(55)
|
|
(53)
|
|
1
|
|
-
|
|
>(100)
|
|
(11)
|
|
>(100)
|
|
>(100)
|
|
28
|
|
(33)
|
|
(26)
|
|
Oncology
|
487
|
|
9
|
|
9
|
|
233
|
|
(1)
|
|
(2)
|
|
219
|
|
18
|
|
16
|
|
35
|
|
46
|
|
67
|
|
Zejula
|
371
|
|
10
|
|
10
|
|
172
|
|
-
|
|
(1)
|
|
166
|
|
17
|
|
14
|
|
33
|
|
38
|
|
67
|
|
Blenrep
|
30
|
|
(67)
|
|
(67)
|
|
(2)
|
|
>(100)
|
|
>(100)
|
|
32
|
|
(11)
|
|
(11)
|
|
-
|
|
-
|
|
-
|
|
Jemperli
|
81
|
|
>100
|
|
>100
|
|
59
|
|
>100
|
|
>100
|
|
21
|
|
>100
|
|
>100
|
|
1
|
|
-
|
|
-
|
|
Ojjaara
|
4
|
|
-
|
|
-
|
|
4
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Other
|
1
|
|
>100
|
|
>100
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1
|
|
>100
|
|
>(100)
|
|
Specialty Medicines
ex COVID
|
7,320
|
|
14
|
|
14
|
|
4,769
|
|
15
|
|
14
|
|
1,611
|
|
13
|
|
11
|
|
940
|
|
13
|
|
20
|
|
Pandemic
|
31
|
|
(99)
|
|
(99)
|
|
(1)
|
|
>(100)
|
|
>(100)
|
|
1
|
|
(100)
|
|
(100)
|
|
31
|
|
(97)
|
|
(97)
|
|
Xevudy
|
31
|
|
(99)
|
|
(99)
|
|
(1)
|
|
>(100)
|
|
>(100)
|
|
1
|
|
(100)
|
|
(100)
|
|
31
|
|
(97)
|
|
(97)
|
|
Specialty Medicines
|
7,351
|
|
(14)
|
|
(15)
|
|
4,768
|
|
(4)
|
|
(5)
|
|
1,612
|
|
(13)
|
|
(15)
|
|
971
|
|
(45)
|
|
(41)
|
|
General Medicines turnover - three months ended 30 September
2023
|
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
||||||||||||||||
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
||||||||
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
Respiratory
|
1,520
|
|
(10)
|
|
(3)
|
|
747
|
|
(13)
|
|
(7)
|
|
317
|
|
(4)
|
|
(3)
|
|
456
|
|
(7)
|
|
5
|
|
Arnuity Ellipta
|
5
|
|
(74)
|
|
(68)
|
|
4
|
|
(76)
|
|
(82)
|
|
-
|
|
-
|
|
-
|
|
1
|
|
(50)
|
|
50
|
|
Anoro Ellipta
|
142
|
|
10
|
|
15
|
|
71
|
|
9
|
|
15
|
|
48
|
|
17
|
|
15
|
|
23
|
|
-
|
|
13
|
|
Avamys/Veramyst
|
52
|
|
(27)
|
|
(21)
|
|
-
|
|
-
|
|
-
|
|
10
|
|
(33)
|
|
(33)
|
|
42
|
|
(25)
|
|
(18)
|
|
Flixotide/Flovent
|
98
|
|
(30)
|
|
(24)
|
|
66
|
|
(31)
|
|
(25)
|
|
12
|
|
(25)
|
|
(19)
|
|
20
|
|
(33)
|
|
(23)
|
|
Incruse Ellipta
|
43
|
|
(23)
|
|
(20)
|
|
22
|
|
(33)
|
|
(30)
|
|
14
|
|
(7)
|
|
-
|
|
7
|
|
(12)
|
|
(12)
|
|
Relvar/Breo Ellipta
|
239
|
|
(23)
|
|
(18)
|
|
86
|
|
(45)
|
|
(40)
|
|
81
|
|
(2)
|
|
(2)
|
|
72
|
|
(1)
|
|
10
|
|
Seretide/Advair
|
202
|
|
(24)
|
|
(14)
|
|
18
|
|
(69)
|
|
(53)
|
|
55
|
|
(17)
|
|
(18)
|
|
129
|
|
(9)
|
|
4
|
|
Trelegy Ellipta
|
537
|
|
15
|
|
23
|
|
388
|
|
14
|
|
21
|
|
69
|
|
15
|
|
17
|
|
80
|
|
23
|
|
40
|
|
Ventolin
|
175
|
|
(8)
|
|
-
|
|
92
|
|
(6)
|
|
-
|
|
24
|
|
(8)
|
|
(12)
|
|
59
|
|
(11)
|
|
5
|
|
Other
Respiratory
|
27
|
|
(21)
|
|
(6)
|
|
-
|
|
-
|
|
-
|
|
4
|
|
(43)
|
|
(29)
|
|
23
|
|
(12)
|
|
(4)
|
|
Other General Medicines
|
817
|
|
(11)
|
|
-
|
|
40
|
|
(57)
|
|
(50)
|
|
177
|
|
2
|
|
2
|
|
600
|
|
(8)
|
|
7
|
|
Dermatology
|
93
|
|
(1)
|
|
12
|
|
-
|
|
-
|
|
-
|
|
27
|
|
12
|
|
8
|
|
66
|
|
(6)
|
|
13
|
|
Augmentin
|
158
|
|
5
|
|
18
|
|
-
|
|
-
|
|
-
|
|
41
|
|
21
|
|
21
|
|
117
|
|
1
|
|
17
|
|
Avodart
|
90
|
|
5
|
|
10
|
|
-
|
|
-
|
|
-
|
|
28
|
|
4
|
|
7
|
|
62
|
|
5
|
|
12
|
|
Lamictal
|
83
|
|
(37)
|
|
(31)
|
|
23
|
|
(67)
|
|
(61)
|
|
28
|
|
4
|
|
-
|
|
32
|
|
(9)
|
|
6
|
|
Other
|
393
|
|
(14)
|
|
(1)
|
|
17
|
|
(23)
|
|
(14)
|
|
53
|
|
(13)
|
|
(13)
|
|
323
|
|
(14)
|
|
2
|
|
General Medicines
|
2,337
|
|
(10)
|
|
(2)
|
|
787
|
|
(18)
|
|
(11)
|
|
494
|
|
(2)
|
|
(2)
|
|
1,056
|
|
(8)
|
|
6
|
|
General Medicines turnover - nine months ended 30 September
2023
|
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
||||||||||||||||
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
||||||||
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
Respiratory
|
5,079
|
|
4
|
|
5
|
|
2,529
|
|
4
|
|
3
|
|
1,040
|
|
3
|
|
1
|
|
1,510
|
|
6
|
|
13
|
|
Arnuity Ellipta
|
26
|
|
(42)
|
|
(42)
|
|
21
|
|
(46)
|
|
(49)
|
|
-
|
|
-
|
|
-
|
|
5
|
|
(17)
|
|
-
|
|
Anoro Ellipta
|
402
|
|
17
|
|
17
|
|
191
|
|
16
|
|
15
|
|
142
|
|
20
|
|
18
|
|
69
|
|
11
|
|
19
|
|
Avamys/Veramyst
|
250
|
|
5
|
|
7
|
|
-
|
|
-
|
|
-
|
|
45
|
|
(12)
|
|
(14)
|
|
205
|
|
9
|
|
12
|
|
Flixotide/Flovent
|
351
|
|
(15)
|
|
(14)
|
|
225
|
|
(19)
|
|
(20)
|
|
50
|
|
(4)
|
|
(4)
|
|
76
|
|
(6)
|
|
-
|
|
Incruse Ellipta
|
122
|
|
(22)
|
|
(22)
|
|
59
|
|
(33)
|
|
(34)
|
|
44
|
|
(8)
|
|
(8)
|
|
19
|
|
(10)
|
|
(5)
|
|
Relvar/Breo Ellipta
|
801
|
|
(11)
|
|
(10)
|
|
307
|
|
(28)
|
|
(29)
|
|
271
|
|
7
|
|
5
|
|
223
|
|
3
|
|
10
|
|
Seretide/Advair
|
863
|
|
4
|
|
6
|
|
263
|
|
30
|
|
28
|
|
191
|
|
(10)
|
|
(12)
|
|
409
|
|
(1)
|
|
5
|
|
Trelegy Ellipta
|
1,613
|
|
27
|
|
27
|
|
1,176
|
|
26
|
|
25
|
|
203
|
|
19
|
|
18
|
|
234
|
|
38
|
|
49
|
|
Ventolin
|
551
|
|
(2)
|
|
(1)
|
|
287
|
|
(4)
|
|
(5)
|
|
72
|
|
(13)
|
|
(16)
|
|
192
|
|
5
|
|
13
|
|
Other
Respiratory
|
100
|
|
(7)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
22
|
|
-
|
|
-
|
|
78
|
|
(8)
|
|
(2)
|
|
Other General Medicines
|
2,565
|
|
(3)
|
|
4
|
|
214
|
|
(20)
|
|
(21)
|
|
544
|
|
5
|
|
3
|
|
1,807
|
|
(2)
|
|
8
|
|
Dermatology
|
278
|
|
-
|
|
8
|
|
-
|
|
-
|
|
-
|
|
81
|
|
3
|
|
-
|
|
197
|
|
(1)
|
|
11
|
|
Augmentin
|
469
|
|
15
|
|
22
|
|
-
|
|
-
|
|
-
|
|
137
|
|
28
|
|
25
|
|
332
|
|
10
|
|
21
|
|
Avodart
|
272
|
|
10
|
|
11
|
|
-
|
|
-
|
|
-
|
|
87
|
|
7
|
|
5
|
|
185
|
|
11
|
|
14
|
|
Lamictal
|
327
|
|
(14)
|
|
(12)
|
|
145
|
|
(25)
|
|
(26)
|
|
83
|
|
4
|
|
1
|
|
99
|
|
(6)
|
|
2
|
|
Other
|
1,219
|
|
(8)
|
|
1
|
|
69
|
|
(7)
|
|
(9)
|
|
156
|
|
(8)
|
|
(10)
|
|
994
|
|
(7)
|
|
3
|
|
General Medicines
|
7,644
|
|
2
|
|
5
|
|
2,743
|
|
2
|
|
-
|
|
1,584
|
|
4
|
|
2
|
|
3,317
|
|
1
|
|
10
|
|
Commercial Operations turnover
|
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
||||||||||||||||
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
||||||||
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
Three months ended
30 September 2023
|
8,147
|
|
4
|
|
10
|
|
4,560
|
|
14
|
|
19
|
|
1,559
|
|
5
|
|
5
|
|
2,028
|
|
(13)
|
|
(2)
|
|
Nine months ended
30 September 2023
|
22,276
|
|
1
|
|
2
|
|
11,440
|
|
5
|
|
4
|
|
4,907
|
|
5
|
|
2
|
|
5,929
|
|
(6)
|
|
-
|
|
Commercial Operations turnover ex COVID
|
|
|
Total
|
|
US
|
|
Europe
|
|
International
|
||||||||||||||||
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
Growth
|
||||||||
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
£m
|
|
£%
|
|
CER%
|
|
Three months ended
30 September 2023
|
8,146
|
|
10
|
|
16
|
|
4,560
|
|
14
|
|
19
|
|
1,559
|
|
5
|
|
5
|
|
2,027
|
|
4
|
|
17
|
|
Nine months ended
30 September 2023
|
22,102
|
|
12
|
|
13
|
|
11,441
|
|
13
|
|
12
|
|
4,783
|
|
12
|
|
10
|
|
5,878
|
|
9
|
|
16
|
|
|
|||||||||||||||||||||||
|
Segment information
|
|
Operating
segments are reported based on the financial information provided
to the Chief Executive Officer and the responsibilities of the GSK
Leadership Team (GLT). GSK reports results under two segments:
Commercial Operations and Total R&D. Members of the GLT are
responsible for each segment.
R&D
investment is essential for the sustainability of the business.
However, for segment reporting the Commercial operating profits
exclude allocations of globally funded R&D.
The
Total R&D segment is the responsibility of the Chief Scientific
Officer and is reported as a separate segment. The operating costs
of this segment includes R&D activities across Specialty
Medicines, including HIV and Vaccines. It includes R&D and some
SG&A costs relating to regulatory and other
functions.
The
Group's management reporting process allocates intra-Group profit
on a product sale to the market in which that sale is recorded, and
the profit analyses below have been presented on that
basis.
|
|
Turnover by segment
|
|||||||
|
|
Q3 2023
£m
|
|
Q3
2022
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
|
|
Commercial
Operations (total turnover)
|
8,147
|
|
7,829
|
|
4
|
|
10
|
|
Operating profit by segment
|
|||||||
|
|
Q3 2023
£m
|
|
Q3
2022
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
|
|
Commercial
Operations
|
4,188
|
|
3,950
|
|
6
|
|
13
|
|
Research
and Development
|
(1,371)
|
|
(1,301)
|
|
5
|
|
9
|
|
|
|
|
|
|
|
|
|
|
Segment
profit
|
2,817
|
|
2,649
|
|
6
|
|
15
|
|
Corporate
and other unallocated costs
|
(45)
|
|
(44)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
operating profit
|
2,772
|
|
2,605
|
|
6
|
|
15
|
|
Adjusting
items
|
(823)
|
|
(1,414)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
operating profit
|
1,949
|
|
1,191
|
|
64
|
|
83
|
|
|
|
|
|
|
|
|
|
|
Finance
income
|
24
|
|
22
|
|
|
|
|
|
Finance
costs
|
(182)
|
|
(200)
|
|
|
|
|
|
Share
of after tax profit/(loss) of associates
and joint ventures
|
-
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
before taxation from continuing operations
|
1,791
|
|
1,012
|
|
77
|
|
99
|
|
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
|
|||||||
|
|
9 months 2023
£m
|
|
9
months 2022
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
|
|
Commercial
Operations (total turnover)
|
22,276
|
|
21,948
|
|
1
|
|
2
|
|
Operating profit by segment
|
|||||||
|
|
9 months 2023
£m
|
|
9
months 2022
£m
|
|
Growth
£%
|
|
Growth
CER%
|
|
|
|
|
|
|
|
|
|
|
Commercial
Operations
|
11,044
|
|
10,371
|
|
6
|
|
7
|
|
Research
and Development
|
(3,876)
|
|
(3,548)
|
|
9
|
|
8
|
|
|
|
|
|
|
|
|
|
|
Segment
profit
|
7,168
|
|
6,823
|
|
5
|
|
6
|
|
Corporate
and other unallocated costs
|
(134)
|
|
(267)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
operating profit
|
7,034
|
|
6,556
|
|
7
|
|
10
|
|
Adjusting
items
|
(862)
|
|
(1,991)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
operating profit
|
6,172
|
|
4,565
|
|
35
|
|
39
|
|
|
|
|
|
|
|
|
|
|
Finance
income
|
86
|
|
50
|
|
|
|
|
|
Finance
costs
|
(570)
|
|
(609)
|
|
|
|
|
|
Share
of after tax profit/(loss) of associates
and joint ventures
|
(4)
|
|
(4)
|
|
|
|
|
|
Profit/(loss)
on disposal of associates and joint
ventures
|
1
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
before taxation from continuing operations
|
5,685
|
|
4,002
|
|
42
|
|
46
|
|
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 2022. At 30 September 2023, the Group's aggregate
provision for legal and other disputes (not including tax matters
described on page 10) was £0.3 billion (31 December 2022:
£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 Q2 2023
results:
Product Liability
Zantac
As
announced on 11 October 2023, GSK has reached a confidential
settlement in the Cantlay/Harper case filed in California state
court. The case, which was set to begin trial on 13 November 2023,
will be dismissed. The company has also settled the three remaining
breast cancer bellwether cases in California. GSK will be dismissed
from these cases. The settlements reflect the company's desire to
avoid the distraction related to protracted litigation. GSK does
not admit any liability in the settlements and will continue to
vigorously defend itself based on the facts and the science in all
other Zantac cases.
The
Delaware Superior Court has scheduled a hearing regarding
admissibility of expert testimony as to general causation for 22-25
January 2024. Cases in other state courts are scheduled for trials
from 2024.
Since
2019, there have been 15 peer-reviewed epidemiological studies
conducted looking at human data regarding the use of ranitidine.
The resulting scientific consensus is that there is no consistent
or reliable evidence that ranitidine increases the risk for any
type of cancer. The 15th epidemiologic study (You (2023)) was
recently released. The study, which involved very large numbers of
patients across multiple databases from US, UK, Germany, Spain,
France, South Korea, and Taiwan, showed no statistically
significant association between ranitidine use and cancer overall
or between ranitidine use and any individual cancer.
|
|
Returns to
shareholders
|
|
Quarterly dividends
The
Board has declared a third interim dividend for 2023 of 14p per
share (Q3 2022: 13.75p(4) per
share).
Dividends
remain an essential component of total shareholder return and GSK
recognises the importance of dividends to shareholders. On 23 June
2021, at the GSK Investor Update, GSK set out that from 2022 a
progressive dividend policy will be implemented guided by a 40 to
60 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 expects to
declare a dividend of 56.5p per share for 2023. In setting its
dividend policy, GSK considers the capital allocation priorities of
the Group, its investment strategy for growth alongside the
sustainability of the dividend.
Payment of dividends
The
equivalent interim dividend receivable by ADR holders will be
calculated based on the exchange rate on 9 January 2024. 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
16 November 2023, with a record date of 17 November 2023
and a payment date of 11 January 2024.
|
|
|
Paid/
Payable
|
|
Pence
per
share/
pre
share
consolidation
|
|
Pence
per
share/
post
share
consolidation
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
|
|
|
|
|
|
|
First
interim
|
13 July
2023
|
|
-
|
|
14
|
|
567
|
|
Second
interim
|
12
October 2023
|
|
-
|
|
14
|
|
568
|
|
Third
interim
|
11
January 2024
|
|
-
|
|
14
|
|
568
|
|
|
|
|
|
|
|
|
|
|
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
|
|
557
|
|
|
|
|
|
|
|
|
|
|
|
|
|
49
|
|
61.25
|
|
2,470
|
|
(4)
|
Adjusted for the Share
Consolidation on 18 July 2022. For details of the Share
Consolidation see page 51.
|
|
Weighted average number of shares
|
|||
|
|
Q3 2023
millions
|
|
Q3
2022
millions
|
|
|
|
|
|
|
Weighted
average number of shares - basic
|
4,055
|
|
4,030
|
|
Dilutive
effect of share options and share awards
|
57
|
|
58
|
|
|
|
|
|
|
Weighted
average number of shares - diluted
|
4,112
|
|
4,088
|
|
Weighted average number of shares
|
|||
|
|
9 months 2023
millions
|
|
9
months 2022
millions
|
|
|
|
|
|
|
Weighted
average number of shares - basic
|
4,050
|
|
4,024
|
|
Dilutive
effect of share options and share awards
|
58
|
|
58
|
|
|
|
|
|
|
Weighted
average number of shares - diluted
|
4,108
|
|
4,082
|
|
At 30
September 2023, 4,056 million shares (Q3 2022: 4,034 million) were
in free issue (excluding Treasury shares and shares held by the
ESOP Trusts). No Treasury shares have been repurchased since 2014.
The company issued an immaterial number of shares under employee
share schemes in the quarter for proceeds of £nil (Q3 2022:
£5 million).
At 30
September 2023, the ESOP Trusts held 38.9 million GSK shares
against the future exercise of share options and share awards. The
carrying value of £190 million has been deducted from other
reserves. The market value of these shares was
£585 million.
At 30
September 2023, the company held 217 million Treasury shares at a
cost of £3,796 million which has been deducted from
retained earnings.
|
|
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.
IAS 12 'Income Taxes'
On 20
June 2023, the UK Government substantively enacted legislation
introducing a global minimum corporate income tax rate, to have
effect from 2024 in line with the Organisation for Economic
Co-operation and Development's (OECD) Pillar Two model framework.
GSK has applied the mandatory IAS 12 'Income Taxes' exception under
paragraph 98 M (b) and is not recognising any deferred tax
impact.
Accounting policies and basis of preparation
This
unaudited Results Announcement contains condensed financial
information for the three and nine months ended 30 September
2023 and should be read in conjunction with the Annual Report 2022,
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
2022.
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 2022.
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 2022 were published
in the Annual Report 2022, 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.
Divestments: restatement of the gain on the demerger of Consumer
Healthcare
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 was recorded in Q4 2022. This gain
relates to an adjustment for deferred profit in inventory. These
transactions were presented in profit from discontinued operations
(adjusting items) in the full-year 2022 results. The comparator Q3
2022 results have been restated to reflect the increase in the gain
on demerger of Consumer Healthcare as described above. These
transactions are presented in profit from discontinued operations
(adjusting items) in Q3 2022. The restatement of Q3 2022 impacts
the gain on the demerger, earnings per share from discontinued
operations, total earnings per share, diluted earnings per share
from discontinued operations and total diluted earnings per
share.
|
|
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:
|
|
|
Q3 2023
|
|
Q3
2022
|
|
9 months 2023
|
|
9
months 2022
|
|
2022
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Average
rates:
|
|
|
|
|
|
|
|
|
|
||
|
|
|
US$/£
|
1.26
|
|
1.18
|
|
1.24
|
|
1.26
|
|
1.24
|
|
|
|
Euro/£
|
1.16
|
|
1.16
|
|
1.15
|
|
1.18
|
|
1.17
|
|
|
|
Yen/£
|
182
|
|
161
|
|
173
|
|
160
|
|
161
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Period-end
rates:
|
|
|
|
|
|
|
|
|
|
||
|
|
|
US$/£
|
1.23
|
|
1.11
|
|
1.23
|
|
1.11
|
|
1.20
|
|
|
|
Euro/£
|
1.16
|
|
1.13
|
|
1.16
|
|
1.13
|
|
1.13
|
|
|
|
Yen/£
|
183
|
|
160
|
|
183
|
|
160
|
|
159
|
|
Net assets
|
|
The
book value of net assets increased by £2,523 million from
£10,096 million at 31 December 2022 to £12,619 million at
30 September 2023. This primarily reflected contribution from Total
comprehensive income for the period partly offset by dividends paid
to shareholders.
At 30
September 2023, the net deficit on the Group's pension plans was
£1,171 million compared with £1,355 million at 31
December 2022. This decrease in the net deficit is primarily
related to an increase to the UK discount rate from 4.8% to 5.5%,
and cash contributions of £353 million made to the UK Pension
schemes, offset by lower UK asset values, and an actuarial
experience adjustment for higher inflation than expected in UK
pension increases of approximately £400 million.
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 £890 million (31 December
2022: £1,093 million).
Contingent
consideration amounted to £6,510 million at 30 September 2023
(31 December 2022: £7,068 million), of which £5,462
million (31 December 2022: £5,890 million) represented the
estimated present value of amounts payable to Shionogi relating to
ViiV Healthcare, £505 million (31 December 2022: £673
million) represented the estimated present value of contingent
consideration payable to Novartis related to the Vaccines
acquisition and £539 million (31 December 2022: £501
million) represented the estimated present value of contingent
consideration payable to Affinivax. Of the contingent consideration
payable to Shionogi at 30 September 2023, £981 million (31
December 2022: £940 million) is expected to be paid within one
year.
|
|
Movements
in contingent consideration are as follows:
|
|
9 months
2023
|
ViiV
Healthcare
£m
|
|
Group
£m
|
|
|
|
|
|
|
Contingent
consideration at beginning of the period
|
5,890
|
|
7,068
|
|
Remeasurement
through income statement and other movements
|
406
|
|
302
|
|
Cash
payments: operating cash flows
|
(834)
|
|
(853)
|
|
Cash
payments: investing activities
|
-
|
|
(7)
|
|
|
|
|
|
|
Contingent
consideration at end of the period
|
5,462
|
|
6,510
|
|
9 months 2022
|
ViiV
Healthcare
£m
|
|
Group
£m
|
|
|
|
|
|
|
Contingent
consideration at beginning of the period
|
5,559
|
|
6,076
|
|
Remeasurement
through income statement and other movements
|
1,423
|
|
2,115
|
|
Cash
payments: operating cash flows
|
(774)
|
|
(789)
|
|
Cash
payments: investing activities
|
(69)
|
|
(75)
|
|
|
|
|
|
|
Contingent
consideration at end of the period
|
6,139
|
|
7,327
|
|
Contingent liabilities
|
|
There
were contingent liabilities at 30 September 2023 in respect of
arrangements entered into as part of the ordinary course of the
Group's business. No material losses are expected to arise from
such contingent liabilities. Provision is made for the outcome of
legal and tax disputes where it is both probable that the Group
will suffer an outflow of funds and it is possible to make a
reliable estimate of that outflow. Descriptions of the significant
legal disputes to which the Group is a party are set out on page 37
and on pages 265 to 267 of the 2022 Annual Report.
|
|
Business acquisitions
|
|
On 18
April 2023, GSK announced it had reached agreement to acquire
late-stage biopharmaceutical company Bellus. On 28 June 2023, GSK
completed the acquisition which was effected through a Plan of
Arrangement (the "Arrangement") pursuant to the Canada Business
Corporations Act. The Arrangement was approved by Bellus'
shareholders on 16 June 2023. Upon completion, GSK acquired all
outstanding common shares of Bellus for US$14.75 per common share
in cash, representing a total equity value of US$2 billion
(£1.6 billion). The acquisition provides GSK access to
camlipixant, a potential best-in-class and highly selective P2X3
antagonist currently in phase III development for the first-line
treatment of adult patients with refractory chronic cough (RCC).
The values in the table below are provisional and are subject to
change.
|
|
The
provisional fair values of the net assets acquired, including
goodwill, are as follows:
|
|
|
|
|
£m
|
|
|
|
|
|
|
Net
assets acquired:
|
|
|
|
|
Intangible
assets
|
|
|
1,438
|
|
Cash
and cash equivalents
|
|
|
148
|
|
Other
net assets/(liabilities)
|
|
|
50
|
|
Deferred
tax liabilities
|
|
|
(136)
|
|
|
|
|
|
|
|
|
|
1,500
|
|
Goodwill
|
|
|
107
|
|
|
|
|
|
|
Total
consideration
|
|
|
1,607
|
|
All of
the £1.6 billion consideration had been settled by 30th
September 2023.
|
|
Post balance sheet event note
|
|
GSK
completed the sale of 270 million shares in Haleon equivalent to
2.9% of Haleon's issued share capital on 6 October 2023 at a price
of 328 pence per share raising gross proceeds of approximately
£885.6 million.
|
|
Related party transactions
|
|
Details
of GSK's related party transactions are disclosed on page 236 of
our 2022 Annual Report.
|
|
Net debt information
|
|
Reconciliation of cash flow to movements in net
debt
|
|
|
9 months 2023
£m
|
|
9
months 2022
£m
|
|
|
|
|
|
|
Total
Net debt at beginning of the period
|
(17,197)
|
|
(19,838)
|
|
|
|
|
|
|
Increase/(decrease)
in cash and bank overdrafts
|
(340)
|
|
(7,629)
|
|
(Increase)/decrease
in liquid investments
|
(47)
|
|
-
|
|
Net
decrease/(increase) in short-term loans
|
(306)
|
|
4,207
|
|
Net
decrease/(increase) in long-term loans
|
(94)
|
|
9
|
|
Repayment
of lease liabilities
|
148
|
|
149
|
|
Net
debt of subsidiary undertakings acquired
|
50
|
|
(20)
|
|
Exchange
adjustments
|
304
|
|
(2,376)
|
|
Other
non-cash movements
|
(107)
|
|
(119)
|
|
|
|
|
|
|
Decrease/(increase)
in net debt from continuing operations
|
(392)
|
|
(5,779)
|
|
Decrease/(increase)
in net debt from discontinued operations
|
-
|
|
7,181
|
|
Total
Net debt at end of the period
|
(17,589)
|
|
(18,436)
|
|
Net debt analysis
|
|
|
30 September
2023
£m
|
|
31
December
2022
£m
|
|
|
|
|
|
|
Liquid
investments
|
70
|
|
67
|
|
Cash
and cash equivalents
|
3,177
|
|
3,723
|
|
Short-term
borrowings
|
(4,843)
|
|
(3,952)
|
|
Long-term
borrowings
|
(15,993)
|
|
(17,035)
|
|
|
|
|
|
|
Total
Net debt at the end of the period
|
(17,589)
|
|
(17,197)
|
|
Free cash flow reconciliation from continuing
operations
|
|
|
Q3 2023
£m
|
|
9 months 2023
£m
|
|
9
months 2022
£m
|
|
|
|
|
|
|
|
|
Net
cash inflow/(outflow) from continuing operating
activities
|
2,212
|
|
3,572
|
|
4,733
|
|
Purchase
of property, plant and equipment
|
(299)
|
|
(828)
|
|
(705)
|
|
Proceeds
from sale of property, plant and equipment
|
11
|
|
21
|
|
13
|
|
Purchase
of intangible assets
|
(198)
|
|
(733)
|
|
(802)
|
|
Proceeds
from disposals of intangible assets
|
-
|
|
12
|
|
126
|
|
Net
finance costs
|
(11)
|
|
(397)
|
|
(455)
|
|
Dividends
from associates and joint ventures
|
-
|
|
1
|
|
-
|
|
Contingent
consideration paid (reported in investing activities)
|
(3)
|
|
(7)
|
|
(75)
|
|
Distributions
to non-controlling interests
|
(57)
|
|
(334)
|
|
(390)
|
|
Contributions
from non-controlling interests
|
-
|
|
7
|
|
8
|
|
|
|
|
|
|
|
|
Free
cash inflow/(outflow) from continuing operations
|
1,655
|
|
1,314
|
|
2,453
|
|
R&D commentary
|
|
Pipeline overview
|
|
Medicines
and vaccines in phase III development (including major lifecycle
innovation or under regulatory review)
|
17
|
Infectious Diseases (7)
|
|
|
●
|
Arexvy (RSV vaccine) RSV older
adults
|
||
|
●
|
gepotidacin
(bacterial topoisomerase inhibitor) uncomplicated urinary tract
infection and urogenital gonorrhoea
|
||
|
●
|
bepirovirsen
(HBV ASO) hepatitis B virus
|
||
|
●
|
Bexsero infants vaccine
(US)
|
||
|
●
|
MenABCWY
(gen 1) vaccine candidate
|
||
|
●
|
tebipenem
pivoxil (antibacterial carbapenem) complicated urinary tract
infection
|
||
|
●
|
ibrexafungerp
(antifungal glucan synthase inhibitor) invasive
candidiasis
|
||
|
|
|
|
|
|
|
|
Respiratory/Immunology (4)
|
|
|
|
|
●
|
Nucala (anti-IL5) chronic
obstructive pulmonary disease
|
|
|
|
●
|
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
|
|
|
|
●
|
camlipixant
(P2X3 receptor antagonist) refractory chronic cough
|
|
|
|
|
|
|
|
|
Oncology (5)
|
|
|
|
|
●
|
Ojjaara (JAK1, JAK2 and ACVR1
inhibitor) myelofibrosis with anaemia
|
|
|
|
●
|
Blenrep (anti-BCMA ADC)
multiple myeloma
|
|
|
|
●
|
Jemperli (anti-PD-1) 1L
endometrial cancer
|
|
|
|
●
|
Zejula (PARP inhibitor) 1L
ovarian and non-small cell lung cancer
|
|
|
|
●
|
cobolimab
(anti-TIM-3) 2L non-small cell lung cancer
|
|
|
|
|
|
|
|
|
Opportunity driven (1)
|
|
|
|
|
●
|
linerixibat
(IBATi) cholestatic pruritus in primary biliary
cholangitis
|
|
Total
vaccines and medicines in all phases of clinical
development
|
67
|
|
|
|
Total
projects in clinical development (inclusive of all phases and
indications)
|
86
|
|
|
|
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
|
|
Arexvy (respiratory
syncytial virus vaccine, adjuvanted)
In
September 2023, Japan's Ministry of Health, Labour and Welfare
(MHLW) approved Arexvy (respiratory syncytial
virus vaccine, recombinant adjuvanted) for the prevention of
respiratory syncytial virus (RSV) disease for adults 60 years of
age and above. This is the first time an RSV vaccine for older
adults has been approved in Japan. This follows approvals in the
US, Europe, the UK and Canada.
In
October 2023, new data from a phase III trial exploring the immune
response in adults 50 to 59 years of age after a single dose of the
vaccine were reported. Preliminary results showed that the trial
met its primary endpoints with the vaccine eliciting non-inferior
immune responses in adults aged 50 to 59 at increased risk for RSV
disease due to select underlying medical conditions compared to
adults aged 60 and above. The primary endpoint was also met for the
broader group of adults aged 50 to 59 enrolled in the trial. Safety
and reactogenicity data were consistent with results from the
initial phase III programme. These data will be submitted to
regulators, with decisions on potential label expansion expected in
2024.
|
|
Key phase III trials for Arexvy:
|
|
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
Primary
data reported:
Q2
2022
|
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
Primary
data reported:
Q2
2022;
two
season data reported:
Q2
2023
|
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
Primary
data reported:
Q4
2022
|
Complete;
primary endpoint met
|
|
RSV
OA=ADJ-008
(Adults
≥ 65 years old)
NCT05559476
|
III
|
A phase
III, 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 HD vaccine
in adults aged 65 years and above
|
Trial
start:
Q4
2022
Primary
data reported:
Q2
2023
|
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
Trial
end:
Q2
2022
|
Complete;
primary endpoint met
|
|
RSV
OA=ADJ-017
(Adults
≥ 65 years old)
NCT05568797
|
III
|
A phase
III, open-label, randomised, controlled, multi-country trial 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
Primary
data reported:
Q2
2023
|
Active,
not recruiting
|
|
RSV
OA=ADJ-018
(Adults
50-59 years)
NCT05590403
|
III
|
A phase
III, observer-blind, randomised, placebo-controlled trial 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
Primary
data reported:
Q4
2023
|
Active,
not recruiting; primary endpoint met
|
|
RSV
OA=ADJ-019
(Adults
≥ 60 years old)
NCT05879107
|
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 PCV20 in adults
aged 60 years and older
|
Trial
start:
Q2
2023
|
Active,
recruiting
|
|
RSV
OA=ADJ-023
(Immunocompromised
Adults 50-59 years)
NCT05921903
|
IIb
|
A
randomised, controlled, open-label trial to evaluate the immune
response and safety of the RSVPreF3 OA investigational vaccine in
adults (≥50 years of age) when administered to lung and renal
transplant recipients comparing one versus two doses and compared
to healthy controls (≥50 years of age) receiving one
dose
|
Trial
start:
Q3
2023
|
Active,
recruiting
|
|
RSV-OA=ADJ-020
(Adults, aged >=50 years of age)
NCT05966090
|
III
|
A study
on the safety and immune response of investigational RSV OA vaccine
in combination with herpes zoster vaccine in healthy
adults
|
Trial
start:
Q3
2023
Data
anticipated:
H2
2024
|
Active,
recruiting
|
|
bepirovirsen (HBV ASO)
Bepirovirsen,
a triple-action antisense oligonucleotide, is a potential new
treatment option for people with chronic hepatitis B (CHB). It is
being evaluated in nucleos(t)ide analogue (NA) treated patients and
as a sequential therapy with existing and novel treatments with an
aim to provide patients with the first clinically meaningful
functional cure for CHB. Two randomised, double-blind, placebo
controlled phase III trials (B-Well 1 and B-Well 2) evaluating the
safety and efficacy of bepirovirsen in NA treated patients started
in Q1 2023 and are progressing as planned in 31 countries.
Bepirovirsen is the only single agent in phase III development that
has shown clinically meaningful functional cure response for
patients with CHB, following positive results previously announced
from the B-Clear and B-Sure clinical trials.
At the
upcoming American Association for the Study of Liver Diseases'
(AASLD) The Liver Meeting® 2023, taking place in Boston, MA
from 10-14 November, GSK will present full results from the
B-Together phase IIb trial investigating bepirovirsen followed by
pegylated interferon alfa (Peg-IFN) as treatment for people with
CHB on NA therapy. The primary endpoint was the proportion of
patients with hepatitis B surface antigen (HBsAg) and hepatitis B
virus (HBV) DNA below the lower limit of quantification (LLOQ) for
24 weeks after planned end of sequential treatment, in the absence
of newly initiated antiviral therapy (rescue therapy). While the
addition of Peg-IFN to bepirovirsen did result in a small increase
to response, it did not materially improve patient outcomes. All
patients that met the primary endpoint had a baseline surface
antigen ≤3000 IU/mL, reinforcing results from B-Clear which
showed that treatment with bepirovirsen resulted in sustained
clearance of HBsAg and HBV DNA both in patients on concurrent
nucleoside/nucleotide analogues (NA) and patients not-on-NA
therapy. In addition to confirming previous treatment response seen
with bepirovirsen, findings from B-Together provide important
insights for future novel sequential regimens with bepirovirsen as
a potential backbone therapy.
To
further expand the development of bepirovirsen in novel sequential
regimens, we announced an agreement for an exclusive worldwide
license to develop and commercialise JNJ-3989, an investigational
hepatitis B virus-targeted small interfering ribonucleic acid
(siRNA) therapeutic initially developed by Arrowhead
Pharmaceuticals. This agreement provides an opportunity to
investigate a novel sequential regimen to pursue functional cure in
an even broader patient population with bepirovirsen.
|
|
Key
trials for bepirovirsen:
|
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
|
B-Well
1 bepirovirsen in nucleos(t)ide treated patients (chronic hepatitis
B)
NCT05630807
|
III
|
A
multi-centre, randomised, double-blind, placebo-controlled trial to
confirm the efficacy and safety of treatment with bepirovirsen in
participants with chronic hepatitis B virus
|
Trial
Start:
Q1
2023
Data
anticipated: 2025+
|
Recruiting
|
|
B-Well
2 bepirovirsen in nucleos(t)ide treated patients (chronic hepatitis
B)
NCT05630820
|
III
|
A
multi-centre, randomised, double-blind, placebo-controlled trial to
confirm the efficacy and safety of treatment with bepirovirsen in
participants with chronic hepatitis B virus
|
Trial
Start:
Q1
2023
Data
anticipated: 2025+
|
Recruiting
|
|
B-Together
bepirovirsen sequential combination therapy with Peg-interferon
(chronic hepatitis B)
NCT04676724
|
IIb
|
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
Data
anticipated:
H2
2023
|
Complete
|
|
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
Data
anticipated: 2025+
|
Active,
not recruiting
|
|
gepotidacin (bacterial topoisomerase inhibitor)
Gepotidacin
is an investigational bactericidal, first-in-class antibiotic with
a novel mechanism of action for the treatment of uncomplicated
urinary tract infections (uUTI).
|
|
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
Data
anticipated:
H1
2024
|
Recruitment
complete
|
|
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
Data
reported:
Q2
2023
|
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
Data
reported:
Q2
2023
|
Complete;
primary endpoint met
|
|
MenABCWY vaccine candidate
In
September 2023, the phase IIIb MenABCWY 019 trial (NCT04707391)
completed. The randomised, controlled, observer-blind trial
evaluated the safety and immunogenicity of GSK's meningococcal
ABCWY (MenABCWY) vaccine candidate when administered in healthy
adolescents and adults, previously primed with meningococcal ACWY
vaccine. MenABCWY vaccine was well tolerated with a favourable
safety profile. The data provide information for the label,
supporting use of MenABCWY in future potential US ACIP
recommendations for adolescent meningococcal vaccination. The data
will be published in a peer reviewed journal next
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
Data
anticipated: H2 2023
|
Complete
|
|
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
Data
reported:
Q1
2023
|
Complete;
primary endpoints met
|
|
Additionally,
in September a supplemental Biologics License Application (sBLA)
in Bexsero (meningitis B) was
accepted for submission to the FDA.
|
|
HIV
|
|
cabotegravir
In
September 2023, ViiV Healthcare announced that the European
Commission authorised Apretude (cabotegravir
long-acting (LA) injectable and tablets) for HIV prevention.
Cabotegravir is indicated in combination with safer sex practices
for pre-exposure prophylaxis (PrEP) to reduce the risk of sexually
acquired HIV-1 infection in high-risk adults and adolescents (at
least 12 years of age), weighing at least 35 kg. This authorisation
marks a pivotal milestone for people across the EU who could
benefit from an innovative, long-acting HIV prevention option that
may better suit their personal preferences. Long-acting PrEP,
alongside other HIV prevention strategies, plays an important role
in helping to address some of the challenges that people may have
with oral PrEP options
In
October 2023, ViiV Healthcare presented 46 abstracts across two
medical meetings - ID Week in the United States and the European
AIDS Conference (EACS) - advancing knowledge in the areas of
treatment, prevention, and how to improve the quality of care of
specific patient populations. The data at both meetings explored
real-world evidence that evaluated the effectiveness, safety, and
tolerability of 2-drug and long-acting regimens, provided insights
from the study of heavily treatment-experienced individuals and
shared adherence and drug preference results from HCP- and
patient-based studies. ViiV also presented, at EACS, virologic
response data from their investigational asset N6LS, a broadly
neutralising antibody.
In
October 2023, the National Medical Products Administration (NMPA)
of China approved ViiV Healthcare's Vocabria (cabotegravir
injection) used in combination with the Janssen Pharmaceutical
Companies of Johnson & Johnson's Rekambys (rilpivirine
long-acting injection) for the treatment of HIV-1 infection. Prior
to the recent marketing authorisation for rilpivirine long-acting
injection, cabotegravir injection and tablets were approved in
China in July 2023.
|
|
Respiratory/Immunology
|
|
camlipixant (P2X3 receptor antagonist)
The
acquisition of Bellus in June 2023 included camlipixant (BLU-5937),
an investigational, highly selective oral P2X3 antagonist currently
in development for first-line treatment of adult patients suffering
from refractory chronic cough (RCC). The CALM phase III development
programme to evaluate the efficacy and safety of camlipixant for
use in adults with RCC is ongoing.
|
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
|
CALM-1
(refractory chronic cough)
NCT05599191
|
III
|
A
52-week, randomised, double-blind, placebo-controlled, parallel-arm
efficacy and safety trial with open-label extension of camlipixant
in adult participants with refractory chronic cough, including
unexplained chronic cough
|
Trial
start:
Q4
2022
Data
anticipated:
2025+
|
Recruiting
|
|
CALM-2
(refractory chronic cough)
NCT05600777
|
III
|
A
24-week, randomised, double-blind, placebo-controlled, parallel-arm
efficacy and safety trial with open-label extension of camlipixant
in adult participants with refractory chronic cough, including
unexplained chronic cough
|
Trial
start:
Q1
2023
Data
anticipated:
2025+
|
Recruiting
|
|
depemokimab (long acting anti-IL5)
Depemokimab
is a unique and distinct monoclonal antibody developed specifically
for its affinity for IL-5 and long duration of inhibition. The
phase III programme for depemokimab continues to make progress
across a range of eosinophil-driven diseases with phase III data
expected to begin reading out in H1 2024.
|
|
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
Data
anticipated:
H1
2024
|
Active,
not 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
Data
anticipated:
H1
2024
|
Active,
not 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
Data
anticipated:
2025+
|
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
Data
anticipated:
2025+
|
Recruiting
|
|
ANCHOR-1
(chronic rhinosinusitis with nasal polyps; CRSwNP)
NCT05274750
|
III
|
Efficacy
and safety of depemokimab in participants with CRSwNP
|
Trial
start:
Q2
2022
Data
anticipated:
H2
2024
|
Recruiting
|
|
ANCHOR-2
(CRSwNP)
NCT05281523
|
III
|
Efficacy
and safety of depemokimab in participants with CRSwNP
|
Trial
start:
Q2
2022
Data
anticipated:
H2
2024
|
Recruiting
|
|
OCEAN
(eosinophilic granulomatosis with polyangiitis)
NCT05263934
|
III
|
Efficacy
and safety of depemokimab compared with mepolizumab in adults with
relapsing or refractory EGPA
|
Trial
start:
Q3
2022
Data
anticipated:
2025+
|
Recruiting
|
|
DESTINY
(hyper-eosinophilic syndrome)
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:
Q3
2022
Data
anticipated:
2025+
|
Recruiting
|
|
Oncology
|
|
Blenrep (belantamab
mafodotin)
Trials
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. Both DREAMM-7 and DREAMM-8 are event-driven trials
assessing the potential of belantamab mafodotin in combination with
standard of care regimens in the second-line and later multiple
myeloma treatment setting. Due to slower than anticipated event
rate, DREAMM-7 is now expected to read out in H1 2024 and DREAMM-8
is expected to read out in H2 2024. Once available, data from these
trials will be shared at future scientific congresses.
Following
a negative Committee for Medicinal Products for Human Use (CHMP)
opinion in September 2023, GSK has submitted for re-examination of
the annual renewal for the conditional marketing authorisation
of Blenrep in the EU.
|
|
Key phase III trials for Blenrep:
|
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
|
DREAMM-7
(2L+ multiple myeloma; MM)
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
Data
anticipated:
H1
2024
|
Active,
not recruiting
|
|
DREAMM-8
(2L+ MM)
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
Data
anticipated:
H2
2024
|
Enrolment
complete
|
|
Jemperli (dostarlimab)
In July
2023, the US FDA approved Jemperli in combination with
carboplatin and paclitaxel, followed by Jemperli as a single agent for
the treatment of adult patients with primary advanced or recurrent
endometrial cancer that is mismatch repair deficient (dMMR), as
determined by an FDA-approved test, or microsatellite
instability-high (MSI-H). Jemperli plus chemotherapy is
the first and only new frontline treatment option for this patient
population, who face significant unmet medical need and poor
long-term outcomes with chemotherapy alone.
Jemperli was also approved by
the UK MHRA in October 2023 in combination with platinum-containing
chemotherapy for the treatment of adult patients with dMMR/MSI-H
primary advanced or recurrent endometrial cancer and who are
candidates for systemic therapy. The CHMP of the European Medicines
Agency (EMA) also adopted a positive opinion recommending approval
of Jemperli in this patient
population. The application remains under review in Australia,
Canada, Switzerland and Singapore as part of the US FDA's Oncology
Center of Excellence Project Orbis framework, which allows for
concurrent submission to and review by US and other international
regulatory authorities.
In
October 2023, GSK announced positive headline results from a
planned analysis of Part 1 of the RUBY/ENGOT-EN6/GOG3031/NSGO phase
III trial investigating Jemperli plus standard-of-care
chemotherapy (carboplatin and paclitaxel), followed by dostarlimab
as a single agent, compared to placebo plus chemotherapy followed
by placebo in adult patients with primary advanced or recurrent
endometrial cancer. The trial met its primary endpoint of overall
survival (OS), demonstrating a statistically significant and
clinically meaningful benefit in the overall patient
population.
These
updates further reinforce our ambition for Jemperli to become the backbone
of our ongoing immuno-oncology-based research and development
programme when used alone and in combination with standard of care
and future novel cancer therapies, aiming to transform patient
lives across multiple tumour types, including endometrial, colon
and rectal cancers.
|
|
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 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
Part 1
data reported:
Q4
2022
Part 2
data anticipated:
H1
2024
|
Active,
not recruiting; primary endpoint met in RUBY Part 1
|
|
PERLA
(1L metastatic non-small cell lung cancer)
NCT04581824
|
II
|
A
randomised, double-blind trial 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
Primary
data reported:
Q4
2022
|
Active,
not recruiting; primary endpoint met
|
|
GARNET
(advanced solid tumours)
NCT02715284
|
I/II
|
A
multi-centre, open-label, first-in-human trial evaluating
dostarlimab in participants with advanced solid tumours who have
limited available treatment options
|
Trial
start:
Q1
2016
Primary
data reported:
Q1
2019
|
Recruiting
|
|
AZUR-1
(locally advanced rectal cancer)
NCT05723562
|
II
|
A
single-arm, open-label trial with dostarlimab monotherapy in
participants with untreated stage II/III dMMR/MSI-H locally
advanced rectal cancer
|
Trial
start:
Q1
2023
Data
anticipated: 2025+
|
Recruiting
|
|
AZUR-2
(untreated perioperative T4N0 or stage III colon
cancer)
NCT05855200
|
III
|
An
open-label, randomised trial of perioperative dostarlimab
monotherapy versus standard of care in participants with untreated
T4N0 or stage III dMMR/MSI-H resectable colon cancer
|
Trial
start:
Q2
2023
Data
anticipated: 2025+
|
Recruiting
|
|
COSTAR
Lung (advanced non-small cell lung cancer that has progressed on
prior PD-(L)1 therapy and chemotherapy)
NCT04655976
|
II/III
|
A
multi-centre, randomised, parallel group treatment, open label
trial comparing cobolimab + dostarlimab + docetaxel to dostarlimab
+ docetaxel to docetaxel alone in participants with advanced
non-small cell lung cancer who have progressed on prior
anti-PD-(L)1 therapy and chemotherapy
|
Trial
start:
Q4
2020
Data
anticipated:
H2
2024
|
Recruiting
|
|
momelotinib (JAK1/2 and ACVR1/ALK2 inhibitor)
In September 2023, GSK announced that the US FDA approved
momelotinib under the brand name Ojjaara for the treatment of intermediate or high-risk
myelofibrosis, including primary myelofibrosis or secondary
myelofibrosis (post-polycythaemia vera and post-essential
thrombocythaemia), in adults with anaemia. To
date, Ojjaara is the only approved medicine for both newly
diagnosed and previously treated myelofibrosis patients with
anaemia that addresses the key manifestations of the disease,
namely anaemia, constitutional symptoms, and splenomegaly (enlarged
spleen).
|
|
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
Primary
data reported:
Q1
2022
|
Active,
not recruiting; primary endpoint met
|
|
Zejula (niraparib)
GSK is building a clinical development programme by assessing
activity of Zejula across multiple tumour types and in combination
with other agents. The ongoing development programme includes
several combination studies, including the FIRST phase III trial
assessing niraparib in combination with dostarlimab, a programmed
death receptor-1 (PD-1)-blocking antibody, as a potential treatment
for first-line ovarian cancer maintenance; RUBY Part 2, the phase
III trial of niraparib and dostarlimab in recurrent or primary
advanced (stage III or IV) endometrial cancer; and the ZEAL phase
III trial assessing niraparib in combination with standard of care
for the maintenance treatment of first line advanced non-small cell
lung cancer.
|
|
Key phase III trials for Zejula:
|
|
Trial name (population)
|
Phase
|
Design
|
Timeline
|
Status
|
|
ZEAL-1L
(1L advanced non-small cell lung cancer maintenance )
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
Data
anticipated:
H2
2024
|
Active,
not 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
Data
anticipated:
H1
2024
|
Active,
not recruiting
|
|
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 17 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 42.
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.
Discontinued operations
Consumer
Healthcare was presented as a discontinued operation from Q2 2022.
The demerger of Consumer Healthcare was completed on 18 July 2022.
The Group Income Statement and Group Cash Flow Statement
distinguish discontinued operations from continuing
operations.
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. Shareholders
received 4 new Ordinary shares with a nominal value of 31¼
pence each for every 5 existing Ordinary shares 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 Total 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.
Turnover excluding COVID-19 solutions
Turnover excluding COVID-19 solutions excludes the impact of sales
of pandemic adjuvant within Vaccines and Xevudy within Specialty Medicines related to the
COVID-19 pandemic. Management believes that the exclusion of the
impact of these COVID-19 solutions sales aids comparability in the
reporting periods and understanding of GSK's growth including by
region versus prior periods and also 2023 Guidance which excludes
any contributions 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,
Respiratory/Immunology and Other.
Percentage points
Percentage
points of growth which is abbreviated to ppts.
Non-controlling interest
Non-controlling
interest is the equity in a subsidiary not attributable, directly
or indirectly, to a parent.
RAR (Returns and Rebates)
GSK
sells to customers both commercial and government mandated
contracts with reimbursement arrangements that include rebates,
chargebacks and a right of return for certain pharmaceutical
products principally in the US. Revenue recognition reflects
gross-to-net sales adjustments as a result. These adjustments are
known as the RAR accruals and are a source of significant
estimation uncertainty and fluctuation which can have a material
impact on reported revenue from one accounting period to the
next.
Year-to-date (YTD)
Year-to-date
is the nine-month period in the year to 30 September 2023 or
the same prior period in 2022 as appropriate.
|
|
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 12 to 13 per cent,
Adjusted operating profit to increase between 13 to 15 per cent and
Adjusted earnings per share to increase between 17 to 20 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. In the year to date, GSK has exceeded its full-year
guidance expectations due to the continued strong and broad-based
performance of its business, including the successful launch
of Arexvy in Q3 2023, which has
also benefitted from initial channel inventory build. Currently,
GSK assumes sales of Arexvy will track in line with
high-dose flu analogues. For the full year, the company
expects Arexvy sales between £0.9
to £1 billion. For full year sales, Vaccines are expected to
increase by around 20 per cent, Specialty Medicines, including HIV,
are expected to increase by low double-digit per cent and General
Medicines are expected to increase by low to mid-single-digit per
cent.
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, changes in
legislation, regulation, government actions or intellectual
property protection, product development and approvals, actions by
our competitors, and other risks inherent to the industries in
which we operate.
This
document contains statements that are, or may be deemed to be,
"forward-looking statements". Forward-looking statements give the
Group's current expectations or forecasts of future events. An
investor can identify these statements by the fact that they do not
relate strictly to historical or current facts. They use words such
as 'anticipate', 'estimate', 'expect', 'intend', 'will', 'project',
'plan', 'believe', 'target' and other words and terms of similar
meaning in connection with any discussion of future operating or
financial performance. In particular, these include statements
relating to future actions, prospective products or product
approvals, future performance or results of current and anticipated
products, sales efforts, expenses, the outcome of contingencies
such as legal proceedings, dividend payments and financial results.
Other than in accordance with its legal or regulatory obligations
(including under the Market Abuse Regulation, the UK Listing Rules
and the Disclosure and Transparency Rules of the Financial Conduct
Authority), the Group undertakes no obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise. The reader should, however, consult any
additional disclosures that the Group may make in any documents
which it publishes and/or files with the SEC. All readers, wherever
located, should take note of these disclosures. Accordingly, no
assurance can be given that any particular expectation will be met
and investors are cautioned not to place undue reliance on the
forward-looking statements.
All
guidance, outlooks, ambitions and expectations should be read
together with the guidance, assumptions and cautionary statements
in this Q3 2023 earnings release and the 2022 Annual
Report.
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
2022. 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.
|
|
Independent review report to GSK plc
|
|
Conclusion
We have
been engaged by GSK plc ("the company") to review the condensed
financial information in the Results Announcement of the company
for the three and nine months ended 30 September
2023.
|
|
The
condensed financial information comprises:
|
|
|
●
|
the
income statement and statement of comprehensive income for the
three and nine month periods ended 30 September 2023 on pages 25 to
26;
|
|
●
|
the
balance sheet as at 30 September 2023 on page 27;
|
|
●
|
the
statement of changes in equity for the nine month period then ended
on page 28;
|
|
●
|
the
cash flow statement for the nine month period then ended on pages
29 to 30; and
|
|
●
|
the
accounting policies and basis of preparation and the explanatory
notes to the condensed financial information on pages 31 to 42 that
have been prepared applying consistent accounting policies to those
applied by GSK plc and its subsidiaries ("the Group") in the Annual
Report 2022, which was prepared in accordance with International
Financial Reporting Standards ("IFRS") as adopted by the United
Kingdom.
|
|
We have
read the other information contained in the Results Announcement,
including the non-IFRS measures contained on pages 31 to 42 and
considered whether it contains any apparent misstatements or
material inconsistencies with the information in the condensed
financial information.
Based
on our review, nothing has come to our attention that causes us to
believe that the condensed financial information in the Results
Announcement for the three and nine months ended 30 September 2023
is not prepared, in all material respects in accordance with the
accounting policies set out in the accounting policies and basis of
preparation section on page 39.
|
|
Basis for Conclusion
We
conducted our review in accordance with International Standard on
Review Engagements (UK) 2410 "Review of Interim Financial
Information Performed by the Independent Auditor of the Entity"
issued by the Financial Reporting Council for use in the United
Kingdom (ISRE(UK)2410). A review of interim financial information
consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
As
disclosed on page 39, the annual financial statements of the
company are prepared in accordance with United Kingdom adopted
international accounting standards. The condensed set of financial
statements included in this Results Announcement have been prepared
in accordance with United Kingdom adopted International Accounting
Standard 34, "Interim Financial Reporting".
Conclusion Relating to Going Concern
Based
on our review procedures, which are less extensive than those
performed in an audit as described in the Basis for Conclusion
section of this report, nothing has come to our attention to
suggest that the directors have inappropriately adopted the going
concern basis of accounting or that the directors have identified
material uncertainties relating to going concern that are not
appropriately disclosed.
This
Conclusion is based on the review procedures performed in
accordance with ISRE (UK) 2410, however future events or conditions
may cause the entity to cease to continue as a going
concern.
Responsibilities of the directors
The
directors are responsible for preparing the Results Announcement of
the company in accordance with the Disclosure Guidance and
Transparency Rules of the United Kingdom's Financial Conduct
Authority.
In
preparing the Results Announcement, the directors are responsible
for assessing the company's ability to continue as a going concern,
disclosing as applicable, matters related to going concern and
using the going concern basis of accounting unless the directors
either intend to liquidate the company or to cease operations, or
have no realistic alternative but to do so.
Auditor's Responsibilities for the review of the financial
information
In
reviewing the Results Announcement, our responsibility is to
express to the company a conclusion on the condensed financial
information in the Results Announcement based on our review. Our
Conclusion, including our Conclusions Relating to Going Concern,
are based on procedures that are less extensive than audit
procedures, as described in the Basis of Conclusion paragraph of
this report.
Use of our report
This
report is made solely to the company in accordance with ISRE (UK)
2410. Our work has been undertaken so that we might state to the
company those matters we are required to state to it in an
independent review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility
to anyone other than the company, for our review work, for this
report, or for the conclusions we have formed.
Deloitte LLP
Statutory
Auditor
London,
United Kingdom
1 November
2023
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GSK plc
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(Registrant)
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Date:
November 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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