Gsk Plc · LSE:GSK
Gsk — GlaxoSmithKline — Cowen Healthcare Conference 2011
9 slides from Gsk's conference presentation, Mar 8, 2011
Slide 1: Patrick Vallance, Cowen Healthcare Conference
Patrick Vallance SVP - Medicines Discovery and Development Cowen Healthcare Conference 8th March 2011 1
Slide 2: R&D Strategy is Focused on Continuously Improving Quality, Novelty & Cost Efficiency
R&D Strategy is Focused on Continuously Improving Quality, Novelty & Cost Efficiency Discovery Development Focus on the best science Simplify development Re-personalise R&D Invest in the pipeline Diversify through externalisation Eliminate predictable attrition Focus on Return on Investm
Slide 3: Committed to Improving Returns in R&D
Committed to Improving Returns in R&D R&D returns over the last Our estimates for GSK’s Our goal is to improve this decade have been late-stage portfolio2 return disappointing1 by 25% via our R&D strategy 15% 15% 15% 10% 10% 10% IRR 5% 5% 5% 0% 0% 0% Cost Attrition Sales 1. McKinsey, Nature Reviews,
Slide 4: Five Levers to Improve Returns in Pharma R&D
Five Levers to Improve Returns in Pharma R&D Shift R&D spend Increase Discovery2 Grow biopharm pipeline from early to late1 externalisation 60% 60 25 Option nased deals & external 50 20 Number of biopharm discovery engines % R&D late-stage spend 40 15 projects 50% 30 10 20 10 5 40% 0 0 2002 2010 200
Slide 5: Driving Efficiencies – Do More With Less
Driving Efficiencies – Do More With Less ….significant decrease in workforce ~28% decrease since 2006 … major reduction in infrastructure ~29% decrease in m2 since 2006 …reduction in number of sites recruiting 29% to 16% (2006-2010) zero patients …increase in number of patients per site doubled from
Slide 6: Rigorous Capital Allocation Process Within R&D
Rigorous Capital Allocation Process Within R&D Drug Discovery Discovery Investment Board (Pharma R&D) •Allocates DPU funding on a 3 year business cycle •Commits Discovery Performance Units to deliverables and costs •Earmarks 3 year funding but can revoke if DPU underperforms •Clear financial incenti
Slide 7: R&D Pipeline Promise: Will it Deliver?
R&D Pipeline Promise: Will it Deliver? Late Stage Mid Stage Flow Early Stage Visibility & Decision Sustainability ~30 PIII assets; 15 with Gate PIII data by end 2012 Rigorous decision >20 publications in making to reduce attrition Nature and NJEM Willing to make big bets: Focus on medicine
Slide 8: Why Big Pharma?
Why Big Pharma? 8
Slide 9: GlaxoSmithKline
GlaxoSmithKline