Gsk Plc · LSE:GSK
Gsk — Investor Day (June 2021)
119 slides from Gsk's investor day presentation, Jun 23, 2021
Slide 1: New GSK: new ambitions for patients and shareholders
23 JUNE 2021 New GSK: new ambitions for patients and shareholders
Slide 2: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements All outlooks, targets, ambitions and expectations regarding future performance and the dividend Forward-looking statements are subject to assumptions, inherent risks and uncertainties, many of which should be read together with the section “B
Slide 3: Agenda
Agenda 1400-1420 Strategic transformation, outlook and ambitions Emma Walmsley 1420-1455 Delivering growth: 2021-26 and beyond Luke Miels, Dr. Hal Barron 1455-1515 Vaccines: Strengthening leadership Roger Connor, Dr. Hal Barron 1515-1530 Specialty: Reshaping HIV treatment and prevention Deborah Wate
Slide 4: Strategic transformation, outlook and ambitions
STRATEGIC TRANSFORMATION, OUTLOOK AND AMBITIONS Emma Walmsley CEO
Slide 5: New GSK: new ambitions for patients and shareholders
New GSK: More than 5% sales and 10% adjusted operating profit CAGR 2021-26 new ambitions Progressive dividend policy for patients and shareholders Pipeline drives growth through DTG LoE, more than £33bn sales by 2031 Prioritise Vaccines and Specialty Medicines, maximise scientific opportunities in p
Slide 6: Team to deliver
Team to deliver 1 2 3 1. Luke Miels 2. Dr. Hal Barron 3. Roger Connor 4. Deborah Waterhouse 5. Dr. Kimberly Smith 6. Iain Mackay 4 5 6 6
Slide 7: Delivering major strategic transformation and cultural change
– Delivering major strategic transformation and cultural change – – – – – 2017 – key to address Today Commercial Improved Strengthened Transformed R&D pipeline Innovation performance R&D execution, commercial and whilst and pipeline execution portfolio focus, productivity investing cost discipline i
Slide 8: Significant scale of change and delivery 2017-20
Significant scale of change and delivery 2017-20 Improved performance Strengthened R&D and Transformed whilst investing in R&D pipeline commercial execution 2017 2020 – 11 approvals since 2017 - top quartile – £10bn annual new and specialty sales Sales £30.2bn £34.1bn – R&D spend per launch – Indust
Slide 9: Ready to separate and unlock shareholder value
Ready to separate and unlock shareholder value 2017-2021 New GSK Improved Strengthened Transformed performance R&D commercial whilst investing and pipeline execution in R&D Optimised Created new Leading ESG product world leader performance New Consumer Healthcare portfolio in Consumer and new cultur
Slide 10: New world leader in Consumer Healthcare
New world leader in Consumer Healthcare #1 £10bn * +4% ** 22.1% ^ Overall CH Annual 2020 Net sales 2020 Operating player globally Net Sales growth 2020 Margin 5 Global categories 20 GSK CH brands 100 ~ Markets 23k Employees Ɨ with #1 position^^ >£100M sales served globally 9 Power Brands *Sales incl
Slide 11: Separation on track for mid 2022
Separation on track for mid 2022 Objectives Mechanism for separation Unlock potential in New GSK and New GSK 68% ownership: Consumer Healthcare − At least 80% demerged mid 2022 − Monetise up to 20% retained to strengthen Strengthen New GSK balance sheet New GSK balance sheet Intended to be tax effic
Slide 12: New GSK
New GSK We unite science, talent and technology to get ahead of disease together Purpose Health impact + Shareholder returns + Thriving people We prevent and treat disease with vaccines, specialty and general medicines Strategy R&D focused on the science of the immune system, human genetics and adva
Slide 13: New commitments to growth
New commitments to growth More than 5% sales CAGR 2021-26 More than 10% adjusted OP CAGR 2031 More than £33 billion sales ambition With metrics and incentives strongly aligned to shareholder value creation All outlook and ambition statements are given on a constant currency basis and use 2021 foreca
Slide 14: From historical underperformance to ambitious top quartile growth
From historical underperformance to ambitious top quartile growth Company sales CAGR to 2026* 2010 – 2015 2016 - 2020 2021 - 2026 Company 1 Company 2 New GSK Company 4 Revenues Company 5 Company 6 Company 7 Company 8 Adj OP Company 9 Company 10 Company 11 Company 12 Company 13 R&D spend Company 14 C
Slide 15: Investing to drive step-change in growth and business mix
Investing to drive step-change in growth and business mix 2021-26 sales growth CAGR Changing business sales mix Vaccines and Specialty Illustrative Medicines prioritised Vaccines: high single-digit % Specialty Medicines: double-digit % General Medicines optimised General Medicines: broadly stable 20
Slide 16: Maximising opportunities in prevention and treatment
Maximising opportunities in prevention and treatment Increasing number of …provides significant synergies across prevention opportunity and advantage and treatment… for New GSK – Immune dysfunction contributes – R&D focus on science of immune system, to pathophysiology of many diseases human genetic
Slide 17: Focusing in key therapeutic areas
Focusing in key therapeutic areas Vaccines Specialty Medicines Resource allocation Innovation focus Capital investment Infectious Immunology / Opportunity HIV Oncology Diseases Respiratory Driven* Major unmet patient needs and significant growth opportunities High innovation potential and first-in-c
Slide 18: Vaccines and Specialty high potential late-stage assets add to current growth drivers
Vaccines and Specialty high potential late-stage assets add to current growth drivers Infectious Immunology / HIV Oncology Opportunity Driven Diseases Respiratory Marketed Shingrix Zejula Dovato Benlysta Bexsero Blenrep Cabenuva Nucala Menveo Jemperli# Late-stage RSV Zejula^ depemokimab (‘294) Men A
Slide 19: Portfolio and pipeline to secure growth over next 10 years
Portfolio and pipeline to secure growth over next 10 years Illustrative Vaccines Specialty Medicines More than General Medicines £33bn More than 5% CAGR + Shingrix + RSV + RSV + Next gen Flu + Meningitis + Men ABCWY + Men ABCWY + CD226 axis + Dovato + Cab PrEP - dolutegravir + Blenrep + LA HIV combo
Slide 20: Meaningful margin expansion from 2022
Meaningful margin expansion from 2022 Adjusted Operating Margin >30% by 2026 >30% More than 10% Adjusted OP CAGR 2021-26 Cost initiatives: – £0.5bn restructuring savings 2018-21 Mid – £1.0bn Future Ready savings expected by 20s % 2023 – Approx. 1/3 of total savings reinvested in growth – Major restr
Slide 21: Improved capital position supports growth investment
– Improved capital position supports growth investment – – Capital allocation priorities – Vaccines Strong operating Strengthen pipeline cash flow – (including bolt-on and in-licensing BD) Product launches Specialty Medicines + Sustainability Strengthened balance General Medicines sheet Progressive
Slide 22: ESG performance to deliver health impact and shareholder returns
– ESG performance to deliver health impact and shareholder returns – – – – – Sustainable performance and long-term growth Pricing / Access Global Health Trust for all stakeholders Inclusion & Diversity Environment Reduced risk to operations Product Governance Operating Standards Positive social impa
Slide 23: New GSK to positively impact the health of >2.5 bn people over 10 years
New GSK to positively impact the health of >2.5 bn people over 10 years Estimated patient impact Estimated global impact 1200 Vaccines* 1.3bn 1000 Number of unique patients (m) 800 Specialty Medicines* 40m 600 400 General Medicines 700m 200 Global Health** 1.2bn 0 Africa Asia & Europe Mid East & Nor
Slide 24: New GSK: new ambitions for patients and shareholders
New GSK: More than 5% sales and 10% adjusted operating profit CAGR 2021-26 new ambitions Progressive dividend policy for patients and shareholders Pipeline drives growth through DTG LoE, more than £33bn sales by 2031 Prioritise Vaccines and Specialty Medicines, maximise scientific opportunities in p
Slide 25: Delivering growth: 2021-26 and beyond
DELIVERING GROWTH: 2022 – 2026 AND BEYOND Luke Miels and Dr. Hal Barron
Slide 26: Delivering growth: 2021-26 and beyond
Delivering More than 5% sales CAGR 2021-26 growth: 2021-26 Transformed commercial capabilities and execution drive growth and beyond Maximise priority Vaccines and Specialty Medicines in key growth markets Optimise General Medicines portfolio for profitability and cash Execution of late-stage pipeli
Slide 27: Portfolio and pipeline to secure growth over next 10 years
Portfolio and pipeline to secure growth over next 10 years Illustrative Vaccines Specialty Medicines More than General Medicines £33bn More than 5% CAGR + Shingrix + RSV + RSV + Next gen Flu + Meningitis + Men ABCWY + Men ABCWY + CD226 axis + Dovato + Cab PrEP - dolutegravir + Blenrep + LA HIV combo
Slide 28: Comprehensive new commercial approach to drive growth
Comprehensive new commercial approach to drive growth Unlock 03 pipeline value Blenrep LCI Zejula LCI otilimab daprodustat RSV OA CAB PrEP Business Development Jemperli LCI* gepotidacin depemokimab (‘294) IO combos HBV ASO (‘836) sotrovimab Men ABCWY Sustainable Growth Maximise priority 02 brands &
Slide 29: Transformed commercial capabilities and organisation
Transformed commercial capabilities and organisation Re-shaping the organization New General Managers appointed Leadership and capabilities in 64 of 70 countries – >90% sales revenue under new leadership – Re-built commercial interface with R&D – >900 new hires in Specialty Care Reshaped organisatio
Slide 30: Improved sales force effectiveness across key markets
Improved sales force effectiveness across key markets Nucala (US) Nucala (Germany) Nucala (Japan) 41% 32% 24% 25% 23% 20% 18% 17% 13% Q4 2017 Q4 2018 Q3 2019 Q1 2018 Q1 2019 Q3 2019 Q3 2017 Q3 2018 Q4 2019 % of calls with Good Selling Outcome STEM Industry Average STEM Industry Top Quartile Source:
Slide 31: Deployed digital and predictive analytics to further enhance outcomes
Deployed digital and predictive analytics to further enhance outcomes Leading Share of Voice (%) US Trelegy: 47% increase in Benlysta: Combination of across key products Rx when omnichannel predictive analytics and medical approach deployed engagement unlocking medical need Average NRx per 100 HCPs
Slide 32: Focus on execution has increased speed to market following regulatory approval
Focus on execution has increased speed to market following regulatory approval Breo Ellipta 5 months Trelegy 2 months Time (Approval to Launch) Nucala EGPA 50 days DOVATO 5 days SHINGRIX 3 days Nucala AHA 2 days Cabenuva 1 day Trelegy Asthma 19hrs Benlysta LN 15hrs Zejula PRIMA 4hrs Blenrep 5hrs 201
Slide 33: Consistent delivery of competitive launches
Consistent delivery of competitive launches Trelegy Blenrep Shingrix US: Weekly TRx Volume Cumulative US Sales Vaccine doses post launch 18,000 70 1200 16,000 60 1000 14,000 50 12,000 800 $M (USD) 10,000 40 600 8,000 30 6,000 400 20 4,000 200 10 2,000 - 0 0 M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 1 3
Slide 34: Translating label expansion into higher market share
Translating label expansion into higher market share US: Most prescribed PARPi EU5: Most prescribed PARPi for new patients in 1LM across all lines for new patients 80% 50% 45% 70% 40% 60% 56% 35% 35% 50% 30% 40% 25% 20% 30% 15% 20% 10% 10% 5% 0% 0% Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov De
Slide 35: Driving growth of mid life cycle products
Driving growth of mid life cycle products Bexsero: Continued growth in market share Benlysta: double digit growth 10 years since launch £m £m 750 750 700 700 650 650 600 600 550 550 500 500 450 450 400 400 350 350 300 300 250 250 200 200 150 150 100 100 50 50 0 0 2016 2017 2018 2019 2020 2016 2017 2
Slide 36: Key growth drivers: 2021-26
Key growth drivers: 2021-26 Vaccines Specialty Medicines General Medicines Shingrix Zejula, Blenrep, Jemperli* Trelegy Meningitis Dovato, Cabenuva, Cab PrEP (Bexsero, Menveo, Men ABCWY ) RSV OA Nucala, Benlysta, depemokimab (‘294) gepotidacin daprodustat High single digit % sales CAGR Double digit %
Slide 37: Relaunch of Shingrix post COVID-19 vaccine roll out
Relaunch of Shingrix post COVID-19 vaccine roll out ~50% intend to receive Shingrix <3M post COVID Vx New US prescriptions recovering in 65+ age group Time between receiving COVID-19 vaccine and Shingles vaccine NBRx & (%) of 65+ Completed COVID-19 Vaccination May ’21 (n=44) 60 65+ Shingrix 80 75% N
Slide 38: Vaccines and Specialty Medicines priorities in key markets: US
Vaccines and Specialty Medicines priorities in key markets: US Specialty Care driving 60% of US sales in 2026 2021-26 growth priorities – Shingrix recovery and growth Illustrative – Cabenuva & Cab PrEP launches – Maintain Nucala and Benlysta leadership – Zejula PARPi leadership in OC – Blenrep expan
Slide 39: Vaccines and Specialty Medicines priorities in key markets: China
Vaccines and Specialty Medicines priorities in key markets: China China sales expected to triple Momentum with Strong trajectory for by 2026* driven by Vaccines Shingrix and Cervarix innovative launches Illustrative Quarterly volume Sales (k doses) IQVIA MQT Volume Share in SITT 911 46% 34% 574 487
Slide 40: General Medicines portfolio resilient and highly profitable
General Medicines portfolio resilient and highly profitable Broadly stable sales, 2021-26 (£m) Primary care strategy and outlook Illustrative – Trelegy growing globally, resourced to win – Investment concentrated on key brands – Significant growth driver in Emerging Markets Optimised for profitabili
Slide 41: Late-stage pipeline potential for >£20bn in NRA PYS
Late-stage pipeline potential for >£20bn in NRA PYS Asset GSK view Potential advantage RSV OA /other* >£3bn /£1-2bn BiC, Shingrix-like opportunity Infectious Men ABCWY £1-2bn FiC with market leadership Diseases gepotidacin £0.5-1bn FiC, unmet need due to resistance HBV ASO (‘836) >£2bn FiC, potentia
Slide 42: Portfolio and pipeline to secure growth over next 10 years
Portfolio and pipeline to secure growth over next 10 years Illustrative Vaccines Specialty Medicines More than General Medicines £33bn More than 5% CAGR + Shingrix + RSV + RSV + Next gen Flu + Meningitis + Men ABCWY + Men ABCWY + CD226 axis + Dovato + Cab PrEP - dolutegravir + Blenrep + LA HIV combo
Slide 43: Differentiated R&D approach focused on the science of the immune system
R&D Differentiated R&D approach focused on the science of the immune system, human genetics and advanced technologies Improved pipeline and productivity in core TAs with disciplined capital allocation Clear scientific synergies across Vaccines and Pharma >£20bn non-risk-adjusted potential in late st
Slide 44: R&D approach focused on immune system, human genetics and advanced technologies
R&D approach focused on the science of the immune system, human genetics and advanced technologies R&D approach Improved pipeline and productivity – Focus on the science of the immune system given its – 20 vaccines, 42 medicines, the majority FiC/BiC importance in the pathophysiology of many disease
Slide 45: Improved pipeline and productivity
Improved pipeline and productivity Stronger pipeline driven by a focus on the Enabling growth for GSK science of the immune system, human genetics over the next 10 years and advanced technologies since 2017 – 2017-21 pipeline approvals account for >60% of expected 2021-26 – 11 major new medicines an
Slide 46: We have delivered 11 major approvals in the past four years
We have delivered 11 major approvals for new medicines or vaccines in the past four years ^ (tafenoquine) * 2H 2017 2018 2019 2020 1H 2021 *PRIMA FDA approval Apr 2020, TESARO acquisition Jan 2019 (first approval Mar 2017) ^TESARO asset 46
Slide 47: External benchmarks position GSK in the top quartile for R&D output
External benchmarks position GSK in the top quartile for R&D output from 2017-2020 Launches Launches per $1bn R&D spend Median PYS per Launch Asset** Number; 2017-20 Number / US$B; 2017-20* US $B; timeframe 2017-26 Company 1 16 1.9 0.7 10 1.9 1.3 Q1 Company 2 10 1.0 0.7 Company 3 9 1.7 1.1 Company 4
Slide 48: Significant improvement in R&D productivity
Significant improvement in R&D productivity Improved success rates across ~20% reduction in overall cycle Doubled the number of assets clinical development times across clinical development in pivotal studies or registration 100% 100% 95% 96% Phase 3/pivotal 11 22 80% 2018-Q1 3.9 3.6 0.8 8.3y 2021 6
Slide 49: Improvements in cycle times driven by focus, operational excellence and smart risk taking
Improvements in cycle times have been driven by focus, operational excellence and smart risk taking 2H 2018 1H 2019 2H 2019 1H 2020 2H 2020 1H 2021 2H 2021 Blenrep (BCMA ADC) – Approved just over two years after pivotal study Pivotal study Pivotal data Submission Approval start start (Jul) (Aug) (De
Slide 50: We have built an innovative pipeline: 62 potential vaccines and medicines
We have built an innovative pipeline: 62 potential vaccines and medicines Phase I Phase II Phase III/Registration C. difficile* vaccine COVID-19 (SK Bioscience)*Ɨ1 vaccine Bexsero infants (US) vaccine Infectious Diseases COVID solutions MenABCWY (2nd gen) vaccine Malaria (fractional dose)* vaccine C
Slide 51: A robust late-stage pipeline with FiC or BiC potential
A robust late-stage pipeline with FiC or BiC potential and more than £20bn in NRA PYS potential Potential first- or Major Lifecycle Anticipated Asset Next indication(s) NRA PYS range Best-in-class Innovation submission Cabotegravir HIV PrEP* >£2bn 2021 daprodustat Anaemia in CKD £0.5-1bn 2022 Blenre
Slide 52: Recent approvals and late-stage pipeline will drive >100% of sales growth 2021-26
Recent approvals and late-stage pipeline will drive >100% of sales growth 2021-26 Illustrative Vaccines Specialty Medicines More than General Medicines £33bn More than 5% CAGR Major pipeline approvals 2017-2021 >60% of 2021-26 CAGR + Shingrix + RSV + RSV + Next gen Flu + Meningitis + Men ABCWY + Men
Slide 53: Innovative early programmes plus continued business development
Innovative early programmes plus continued business development offer potential for sustained growth beyond 2026 Infectious Diseases GSK’868 (PI4kβ inhibitor) HBV therapeutic vaccine MenABCWY 2nd gen GSK’347 (FimH) for viral COPD exacerbations for hepatitis B for meningitis for uUTI PhIb start 2022
Slide 54: Internal R&D innovation complemented by BD
Internal R&D innovation complemented by BD Strengthening the pipeline Enhancing technology capabilities – Two-fold increase in deals (2018-21 vs. 2015-17) resulting in: – Built state-of-the-art human genetics, functional genomics and AI/ML capabilities – 2 approved medicines, 1 Phase 3 asset and >10
Slide 55: R&D is delivering a sustainable pipeline to achieve our 10-year ambition
R&D is delivering a sustainable pipeline of innovative medicines and vaccines to achieve our 10-year ambition Illustrative Vaccines Specialty Medicines More than General Medicines £33bn More than 5% CAGR + Shingrix + RSV + RSV + Next gen Flu + Meningitis + Men ABCWY + Men ABCWY + CD226 axis + Dovato
Slide 56: Vaccines: Strengthening leadership
VACCINES: STRENGTHENING LEADERSHIP Roger Connor and Dr. Hal Barron
Slide 57: Strengthening leadership in vaccines
Strengthening High single digit % sales CAGR 2021-26 leadership in vaccines Global reach and commercial execution World class manufacturing capability and scale Industry-leading pipeline, FiC / BiC potential, 16 Phase 2/3 assets Unrivalled portfolio and breadth of technology platforms Advancing COVI
Slide 58: Industry leading portfolio
Industry leading portfolio High efficacy and protection Extensive and highly diversified portfolio 90% of portfolio offers >90% protection Other Efficacy rate Pneumococcal 11% Shingles Shingles Percentage of Vx Revenues 6% 28% DTP* Hep A, B 8% Meningitis Rotavirus 8% Rotavirus Hep A, B 16% 10% Pneum
Slide 59: Industry leading pipeline
Industry leading pipeline Largest number of mid/late-stage assets in areas of significant unmet medical need 6 10 16 RSV 177k hospitalisations, 14k deaths per year Company A 5 7 12 in 65+ adults annually in the US1 Company B 5 7 12 Meningitis Company C 2 5 7 1.2m cases of IMD annually with ~10% mort
Slide 60: Extensive technology platform portfolio across R&D
Extensive technology platform portfolio across R&D Unlocking the synergy between vaccines and specialty medicines AS Protein +/- mRNA Glycoconjugate Viral Monoclonal Human genetics adjuvant vector antibodies & functional genomics Underpinned by our focus on the science of the immune system 60
Slide 61: mRNA: an important technology in our pipeline
mRNA: an important technology in our pipeline Our differentiated mRNA approach to enable Investing at pace and building capabilities multivalent and combination vaccines – mRNA research centre in Rockville (USA) 5’ and 3’ optimisation (CureVac) – >200 GSK mRNA scientists globally 2560 Virus Neutrali
Slide 62: Pipeline with multiple potential first- and/or best-in-class assets
Pipeline with multiple potential first- and/or best-in-class assets Total number of candidates Potential for: 10 assets 5 9 assets Menveo liquid^^ RSV/Pertussis combo Shingrix immuno-compromised* Gonorrhea Bexsero in infants (US) new launches by 2026 COVID 2nd Gen (CureVac) 6 assets MMR (US) Klebsie
Slide 63: Key growth drivers: opportunities and investment priorities
Key growth drivers: opportunities and investment priorities Illustrative Vaccines Specialty Medicines More than General Medicines £33bn More than Vaccines high single digit CAGR 2021-26 5% CAGR Shingrix – double revenues in 5 years + Shingrix + RSV + RSV + Next gen Flu + Meningitis + Men ABCWY Menin
Slide 64: Shingrix: aim to double revenues in the next five years
Shingrix Aim to double revenues in the next five years, protecting more than 100m adults Major opportunity in US, China and beyond Gold standard for shingles prevention – Expanding target populations: 50+ & 18+ – Unprecedented high efficacy >90% with proven 4-year (immunocompromised) duration of pro
Slide 65: Meningococcal franchise
Meningococcal franchise Aim to double revenues in next decade, building on world-leading MenB vaccine High growth opportunity through market Potential best-in-class expansion portfolio & pipeline – 1.2m cases of Invasive Meningococcal – Market leader >50% share in a ~£2bn market with Disease (IMD) w
Slide 66: RSV Older Adults: potential first- and best-in class opportunity
RSV Older Adults: potential first- and best-in class £multi-billion opportunity Leveraging our proven adjuvant technology One of the highest value, unmet need Most advanced RSV OA vaccine candidate remaining in infectious diseases in Phase 3 with best-in class potential Higher risk of severe outcome
Slide 67: RSV Maternal
RSV Maternal Potential to provide broad protection to infants from first breath of life One of the largest unmetneed in pediatrics Polyclonal protection with potential game- changing RSV pertussis combo to follow 3.2m No. 1 1.4m – Differentiated approach with polyclonal passive hospitalisations caus
Slide 68: Influenza
Influenza Innovating to deliver greater protection, new ambition to double revenues in next decade Significant burden of Innovative technologies for superior efficacy disease remains1 1. Innovative plant-based protein adjuvanted vaccine for 65+ ~3-5m UP TO segment*, Phase 3 data 2H 2023 ~1bn severe
Slide 69: Strengthening leadership in vaccines
Strengthening High single digit % sales CAGR 2021-26 leadership in vaccines Global reach and commercial execution World class manufacturing capability and scale Industry-leading pipeline, FiC / BiC potential, 16 Phase 2/3 assets Unrivalled portfolio and breadth of technology platforms Advancing COVI
Slide 70: Specialty: Reshaping HIV treatment and prevention
SPECIALTY: RESHAPING HIV TREATMENT AND PREVENTION Deborah Waterhouse and Dr. Kimberly Smith
Slide 71: Reshaping the HIV treatment and prevention landscape
Reshaping the Mid single digit % sales CAGR 2021-26 HIV treatment and prevention Pioneering innovation for treatment and prevention landscape Dovato and cabotegravir drive growth Cabotegravir LA portfolio replaces dolutegravir as foundational medicine Innovative LA pipeline powers revenue renewal be
Slide 72: Delivering on significant unmet needs in HIV
Delivering on significant unmet needs in HIV Key challenges remain in £23bn treatment and prevention market 38m 1.7m people living with HIV infections per annum, (PLHIV) worldwide mostly in Africa 6,000 38,000 young women new infections infected every week per annum in US Only 50% 22,000 of PLHIV in
Slide 73: HIV delivering mid-single digit % sales CAGR 2021-26
HIV delivering mid-single digit % sales CAGR 2021-26 with pipeline optionality beyond Illustrative Mature products Growth drivers HIV mid single digit % CAGR - Triumeq - Tivicay Post 2026 LA pipeline potential + Dovato for revenue + Cabenuva + Cab PrEP renewal 2021 Growth drivers Mature products 202
Slide 74: Dovato: Best-in-class two-drug regimen
Dovato: Best-in-class two-drug regimen Switch share growing strongly in US and EU >£1bn by 2022 and further potential beyond 60% – Integrase inhibitors gold standard with proven high bar to resistance and tolerability 50% 40% – Only 2DR to deliver durable efficacy and high barrier to resistance in n
Slide 75: LA pipeline with opportunity for revenue renewal post DTG LoE
LA pipeline with opportunity for revenue renewal post DTG LoE Portfolio transition through decade with LA regimens ~ £2bn by 2026 2026 Portfolio Mix Post 2026 2021-26 LA pipeline growth drivers growth drivers Dovato Self Admin for Treatment Cabenuva Ultra LA for Treatment Cab PrEP Oral portfolio Ult
Slide 76: Shifting the paradigm towards long-acting treatment
Shifting the paradigm towards long-acting treatment Cabenuva: world’s 1st and only long-acting regimen for HIV treatment LA preferred by 9/10 patients vs orals1 LA injectable treatment market £4-5bn by 2030 Fear of disclosure – Integrase inhibitor at core provides unique resistance and tolerability
Slide 77: Major opportunities in pre-exposure prophylaxis (PrEP)
Major opportunities in pre-exposure prophylaxis (PrEP) Cabotegravir for PrEP: offers potential to transform the shape of the epidemic LA injectable PrEP market Cabotegravir LA superior to £4-5bn by 2030 daily oral standard of care – US political will to end epidemic by 2030 – First LA injectable PrE
Slide 78: Integrase inhibitor-based LA pipeline drives future growth
Integrase inhibitor-based LA pipeline drives future growth Potential options for self administration and ultra long acting Capsid Inhibitor Broadly Neutralising Inhibits formation of HIV capsid Antibodies (N6LS) which is critical for viral replication Blocks HIV replication by attaching to CD4 bindi
Slide 79: Strategic collaboration with Halozyme
Strategic collaboration with Halozyme Expands portfolio of long-acting agents Unique partnership Focused on aimed at developing significantly ultra long-acting improving patient regimens experience in HIV (3 months plus) treatment and PrEP Exclusive license Potential in in HIV treatment PrEP to incr
Slide 80: Maintaining HIV leadership beyond Dolutegravir
Maintaining HIV leadership beyond Dolutegravir Integrase inhibitor-based LA regimens deliver new levels of convenience 2021- 2024 2025-2027 2028+ Cabenuva (CAB + RPV) 1st self-administered Ultra long-acting for treatment LA regimen for treatment ≥Q3M for treatment – 1st LA regimen launched in US – C
Slide 81: Reshaping the HIV treatment and prevention landscape
Reshaping the Mid single digit % sales CAGR 2021-26 HIV treatment and prevention Pioneering innovation for treatment and prevention landscape Dovato and cabotegravir drive growth Cabotegravir LA portfolio replaces dolutegravir as foundational medicine Innovative LA pipeline powers revenue renewal be
Slide 82: Specialty: Maximising high-potential medicines
SPECIALTY: MAXIMISING HIGH-POTENTIAL MEDICINES Dr. Hal Barron and Luke Miels
Slide 83: Maximising high-potential Specialty Medicines
Maximising Double digit % growth CAGR 2021-26 high-potential Specialty Infectious diseases: industry leader with broadest pipeline Medicines HIV: pioneering innovation for treatment and prevention Oncology: leadership in next-gen IO and synthetic lethality Immunology/Respiratory: genetically-validat
Slide 84: Delivering high potential specialty medicines and strong commercial execution
Delivering high potential specialty medicines and strong commercial execution Infectious diseases HIV Oncology Immunology/ Opportunity Industry leader with Reshaping the Next-gen IO and synthetic Respiratory driven broadest infectious HIV treatment and lethality leadership Industry leader in Create
Slide 85: Late-stage pipeline potential for >£20bn in NRA PYS
Late-stage pipeline potential for >£20bn in NRA PYS Asset GSK view Potential advantage RSV OA /other* >£3bn /£1-2bn BiC, Shingrix-like opportunity Infectious Men ABCWY £1-2bn FiC with market leadership Diseases gepotidacin £0.5-1bn FiC, unmet need due to resistance HBV ASO (‘836) >£2bn FiC, potentia
Slide 86: Specialty Medicines: deliver double digit % CAGR 2021-26
Specialty Medicines: deliver double digit % CAGR 2021-26, strong growth over next 10 years Illustrative Vaccines Specialty Medicines More than General Medicines £33bn More than 5% CAGR + Shingrix + RSV + RSV + Next gen Flu + Meningitis + Men ABCWY + Men ABCWY + CD226 axis + Dovato + Cab PrEP - dolut
Slide 87: Gepotidacin: potential first-in-class oral antibiotic
Gepotidacin: Potential first-in-class oral antibiotic targeting antibiotic resistance High unmet need for novel oral 2nd line antibiotics Powerful alternative to counter resistance due to rising resistance & safety concerns1 – Increasing resistance to 1L antibiotics drives urgent need – 2L broad-spe
Slide 88: HBV ASO ('836): potential FiC 'functional cure' for Chronic HBV
HBV ASO (‘836): potential FiC ‘functional cure’ for Chronic HBV Significant unmet need for functional cure Phase 2b study of GSK’836 ongoing with focus – ~2bn people infected with Hepatitis B virus but diagnosis on eliminating HBsAg rates low (<9% globally) – ASOs designed to bind precisely with RNA
Slide 89: Oncology strategy focused on immune system and human genetics
Oncology strategy focused on the science of the immune system and human genetics Immuno-oncology and cell therapy Synthetic lethality Blenrep NY-ESO-1 TCR Zejula Jemperli* NY-ESO-1/TGFbR2 TCR T PRMT-5 Harness the power of the immune system to target LAG-3* NY-ESO-1/CD8a TCR T Type 1 PRMT cancer via
Slide 90: Blenrep: first-in-class BCMA treatment for multiple myeloma
Blenrep: first-in-class BCMA treatment for patients with multiple myeloma Significant unmet medical need Significant opportunity to move in to 2L+ with – Multiple myeloma is the 2nd most common haematological compelling efficacy and the ability to reduce dose malignancy1 with >175K pts/yr global inc
Slide 91: The power of functional genomics: combining Blenrep with a GSI
The power of functional genomics: combining Blenrep with a gamma secretase inhibitor (GSI) Functional Genomics identified Blenrep + GSI combo should GSI combo potential enable lower dose – Belamaf + nirogacestat a novel GSI under investigation in DREAMM-5 with an initial 0.95mg/kg dose – Preliminary
Slide 92: Jemperli: enabling next generation Immuno-Oncology
Jemperli*: enabling next generation Immuno-Oncology with our innovative pipeline Jemperli monotherapy First-in-indication opportunities Novel IO combinations opportunity in niche indications for Jemperli to improve on PD(L)-1 – 2L dMMR endometrial cancer – 1L endometrial cancer PD-1 combination with
Slide 93: Unique pipeline targeting CD226 axis: TIGIT, CD96, PVRIG
Unique pipeline targeting CD226 axis: TIGIT^, CD96, PVRIG with potential for synergistic anti-tumour effect Interaction between tumours and immune …testing these combinations shows promising system point towards new combinations… synergies in pharmacology studies Example: T/NK cell interacting with
Slide 94: World leading functional genomics platform for synthetic lethality pipeline
World leading functional genomics platform will enable our synthetic lethality pipeline Zejula PRIMA study demonstrated the value Expanding synthetic lethal pipeline with significant of synthetic lethality opportunity for combinations – Functional genomics studies suggested PARPs – MAT2A has shown s
Slide 95: Zejula: best-in-class and only PARP inhibitor approved for all 1L ovarian cancer
Zejula: best-in-class and only PARP inhibitor approved for all 1L ovarian cancer patients Positioned to benefit broadest population Opportunity to drive market growth Ovarian Cancer Biomarker Subgroups and reduce use of ‘watch and wait’ 1LM Eligible US Patients4 5% 11% 6% 15% BRCAm2 1st PARPi to 19%
Slide 96: Zejula: maximizing patient benefit through multiple development opportunities
Zejula: maximizing patient benefit through multiple development opportunities NSCLC 1L – ZEAL Breast (ctDNA+) – ZEST – PD1 + PARPi synergy – Leverage ctDNA to treat high risk patients after curative therapy – Differentiation: blood-brain barrier penetration – Estimated patient population of ~20k* –
Slide 97: GSK '294 (depemokimab): potential best-in-class long-acting IL-5 antagonist
GSK ‘294 (depemokimab): potential best-in-class long-acting IL-5 antagonist with ambition to transform SEAtreatment High unmet need despite success of IL5s Ph3 ongoing with unique dosing frequency – >50m worldwide suffer with severe eosinophilic asthma – High affinity and long-lasting suppression of
Slide 98: Otilimab (anti-GM-CSF): novel MoA in rheumatoid arthritis
Otilimab (anti-GM-CSF): novel MoA to address unmet need in rheumatoid arthritis (RA) Ph2 data shows potential for New mechanism for significant differentiation on pain unmet patient need – Despite many treatments available ~40% of patients on a – ~50m people have RA globally1 biologic report daily p
Slide 99: Daprodustat (HIF-PHI): potential best-in-class for anaemia of CKD
Daprodustat (HIF-PHI): potential to be best-in-class for anaemia of chronic kidney disease Nobel prize winning science Robust clinical development programme – Single sponsor, single Hgb target ASCEND ND: Efficacy and CV safety with active SoC comparator Non-dialysis (ND) patients on and not on rhEPO
Slide 100: Portfolio and pipeline to secure growth over next 10 years
Portfolio and pipeline to secure growth over next 10 years Illustrative Vaccines Specialty Medicines More than General Medicines £33bn More than 5% CAGR + Shingrix + RSV + RSV + Next gen Flu + Meningitis + Men ABCWY + Men ABCWY + CD226 axis + Dovato + Cab PrEP - dolutegravir + Blenrep + LA HIV combo
Slide 101: Sustainable growth, competitive returns
SUSTAINABLE GROWTH, COMPETITIVE RETURNS Iain Mackay Chief Financial Officer
Slide 102: Sustainable growth and competitive shareholder returns
Sustainable More than 5% sales CAGR 2021-26, £33bn sales ambition by 2031 growth and competitive Cost discipline drives Adj Operating Margin expansion to >30% by 2026 shareholders returns More than 10% Adj Operating Profit CAGR 2021-26 Improve operating cash flow, working capital focus, restructurin
Slide 103: Competitive sales ambition
Competitive sales ambition Pipeline productivity and commercial excellence Illustrative Vaccines Specialty Medicines More than General Medicines £33bn More than 5% CAGR + Shingrix + RSV + RSV + Next gen Flu + Meningitis + Men ABCWY + Men ABCWY + CD226 axis + Dovato + Cab PrEP - dolutegravir + Blenre
Slide 104: Adjusted Operating Margin expansion to at least 30% by 2026
Adjusted Operating Margin expansion to at least 30% by 2026 More than 10% Adjusted Operating Profit CAGR 2021-26 >30% – Sales mix, shift to Vaccines and Specialty – Operating leverage on sales Mid – Major restructuring programs complete 20s % – R&D productivity slows investment rate + – Ongoing prod
Slide 105: Mix shift delivers improving margins
Mix shift delivers improving margins Sales mix Ongoing focus on operating margin Illustrative – Fundamental change in portfolio mix towards higher margin Vaccines and Specialty Medicines – Optimise General Medicines portfolio – Sustained focus on operating efficiency and cost productivity across New
Slide 106: Disciplined cost management
Disciplined cost management Major restructuring complete in 2022, ongoing productivity initiatives 2018-2021 (2018 Restructuring) 2021-2023 (Future Ready) COGS – Focused sales force behind growth drivers – Unlock R&D “One Development” synergies – Decreased non-customer facing spend COGS – Improve R&
Slide 107: Cash and working capital
Cash and working capital Cash generated from operations Strengthen cash generation and conversion: Revenue growth £10.1bn More than £10bn Margin expansion Working capital management Restructuring and separation programmes complete Working capital and cash management: – Top quartile performance in DS
Slide 108: Robust capital allocation framework
Robust capital allocation framework Priorities aligned on growth drivers, improving productivity, enhancing RoI Research & Development Continued investment in innovation and productivity (including BD) Value creating bolt on acquisitions and strategic collaborations to strengthen the pipeline: – 4 c
Slide 109: Dividend
Dividend GSK 2021: expect 80p/share New GSK Dividend policy New Consumer Healthcare Dividend policy – Progressive dividend policy – Guided by 30-50% EPS pay-out ratio – Guided by 40-60% EPS pay-out ratio GSK 2022 FY: expect 55p/share 27p expect dividend for GSK Group 28p expect dividend in aggregate
Slide 110: Separation of Consumer mid 2022
Separation of Consumer mid 2022 Focus: New Demerge at Retain up to Expected Intended to Leverage up to 4.0x Consumer least 80% of 20%, premium be tax net debt/Adjusted 1. Unlock GSK holding to monetise to LSE listing efficient as EBITDA at Healthcare potential in shareholders strengthen compared to
Slide 111: Financial outlooks confirm expectations for strong sales, profit growth and returns
Financial More than 5% sales CAGR 2021-26, £33bn sales ambition by 2031 outlooks confirm Cost discipline drives Adj Operating Margin expansion to >30% by 2026 expectations for strong More than 10% Adj Operating Profit CAGR 2021-26 sales, profit growth and Improve operating cash flow, working capital
Slide 112: Closing comments
CLOSING COMMENTS Emma Walmsley CEO
Slide 113: Platform to deliver step-change in performance and create shareholder value
Platform to deliver step-change in performance and create shareholder value 2017-2021 New GSK Improved Strengthened Transformed performance R&D commercial whilst investing and pipeline execution in R&D Optimised Created new Leading ESG product world leader performance New Consumer Healthcare portfol
Slide 114: New GSK: new ambitions for patients and shareholders
New GSK: More than 5% sales and 10% adjusted operating profit CAGR 2021-26 new ambitions Progressive dividend policy for patients and shareholders Pipeline drives growth through DTG LoE, more than £33bn sales by 2031 Prioritise Vaccines and Specialty Medicines, maximise scientific opportunities in p
Slide 115: Appendix
Appendix
Slide 116: Basis of preparation, assumptions and cautionary statement
Basis of preparation, assumptions and cautionary statement Assumptions relating to the 2021-2026 sales and adjusted operating profit growth The Relevant Statements also factor in all divestments and product exits announced to date as well as outlooks, 2026 cash generated from operations outlook, 203
Slide 117: Basis of preparation, assumptions and cautionary statement
Basis of preparation, assumptions and cautionary statement Assumptions and cautionary statement regarding forward looking statements Forward-looking statements are subject to assumptions, inherent risks and uncertainties, many of which relate to factors that are beyond the Group’s control or precise
Slide 118: New GSK financial reporting considerations
New GSK financial reporting considerations IFRS income statement Operating segments Corporate / other / Commercial R&D adjusting items Revenue and Adjusted OP Adjusted OP OP Product Area Revenues Vaccines Specialty Medicines General Medicines Revenue and Revenue by key product 118
Slide 119: Contact
Contact GSK Investor Relations Team +44 (0)20 8047 5000 or at GSK.Investor-Relations@gsk.com