Gsk Plc · LSE:GSK
Gsk — GlaxoSmithKline — Q1 2006 Earnings Presentation
33 slides from Gsk's earnings presentation, Apr 27, 2006
Slide 1: 1Q Results 2006 Presentation to Analysts & Investors
1Q Results 2006 Presentation to Analysts & Investors 27th April 2006
Slide 2: JP Garnier, Chief Executive Officer
JP Garnier Chief Executive Officer
Slide 3: Q1 Summary
Q1 Summary • Excellent Financial Performance – Pharma Sales +10% – EPS +17% • Good Pipeline Progress 3
Slide 4: Good Pipeline Progress in Q1
Good Pipeline Progress in Q1 FILINGS Cervarix Europe & Intern’l FluLaval US Wellbutrin XL Europe Hycamtin Cervical Cancer 4
Slide 5: Good Pipeline Progress in Q1
Good Pipeline Progress in Q1 FILINGS NEW DATA PIII STARTS Cervarix Tykerb eltrombopag Europe & Intern’l FluLaval Cervarix pazopanib US Wellbutrin XL Trexima casopitant Europe Hycamtin Entereg H5N1* Cervical Cancer POI pandemic vaccine Arixtra ACS ambrisentan * registration trial 5
Slide 6: Tykerb + Xeloda Study Stopped Early Due to Positive Results
Tykerb + Xeloda Study Stopped Early Due to Positive Results Tykerb’s 1st PIII study* showed that Tykerb + Xeloda exceeded the predetermined stopping criteria as measured by time to disease progression Improved filing: now 2H06 in US & EU * In a preplanned interim analysis in 321 metastatic erbB2 pos
Slide 7: Tykerb: Emerging Profile in Breast Cancer
Tykerb: Emerging Profile in Breast Cancer • Combo w/ Xeloda • Brain mets • Combo w/ Herceptin • Inflammatory Breast Refractory • Monotherapy • Combos with: Femara, Taxol, First Line Taxol + Herceptin • BIG trial (n=8,000) • Other trials TBA • Neo-adjuvant Adjuvant = Activity demonstrated to date 7
Slide 8: New Data on Major Oncology Assets at ASCO
New Data on Major Oncology Assets at ASCO TYKERB Metastatic breast cancer Ph III Xeloda combination Brain metastases* Ph II Inflammatory breast cancer Ph II Cardiac safety profile Renal cell Ph III *CTEP/NCI presentation 8 ASCO: June 2-6, 2006, Atlanta, Georgia
Slide 9: New Data on Major Oncology Assets at ASCO
New Data on Major Oncology Assets at ASCO TYKERB Other Key Assets Metastatic breast cancer Cervarix Ph III Xeloda combination HPV-014: Safety and immuno in 15-55 yr olds Brain metastases* eltrombopag Ph II Ph II in ITP Inflammatory breast cancer MAGE-3 Ph II non-small-cell lung cancer therapeutic va
Slide 10: Sustained antibody response over 4.5 yrs
Sustained antibody response over 4.5 yrs HPV 16 HPV 18 10000 10000 1000 Sustained response 1000 Sustained response log (antibody levels/ml) log (antibody levels/ml) 100 100 10 10 1 1 0 7 39-44 45-50 51-53 0 7 39-44 45-50 51-53 Month Month = Cervarix = Placebo Data published in The Lancet, April, 200
Slide 11: Efficacy sustained over 4.5 yrs with cross protection
Efficacy sustained over 4.5 yrs with cross protection • 100% protection against pre-cancerous lesions1 • 100% protection against persistent infection2 • Cross protection: Cumulative protection against ~80% of cervical cancers3 1 = Pre-cancerous lesions caused by HPV 16 or 18 2 = Measured as protecti
Slide 12: Cross protection on sub-types measured
Cross protection on sub-types measured: Cumulative protection against ~ 80% of cervical cancers Cumulative Percentage Efficacy of Cancers, by HPV Type At 4.5yrs HPV genotype 16/18 70% 3 +45 77% 3 +31 80% 3 Adapted from Munoz N et al. Int J Cancer 2004; 111: 278–85. 12 Cervarix efficacy against CIN2+
Slide 13: Julian Heslop, Chief Financial Officer
Julian Heslop Chief Financial Officer
Slide 14: Q1 Performance Summary
Q1 Performance Summary 1Q 06 1Q 05 %Change £m £m CER £ Turnover 5,813 5,036 10 15 Cost of Goods (1,134) (1,127) (2) 1 19.5% 22.4% SG&A (1,823) (1,645) 5 11 31.4% 32.7% R&D (753) (663) 10 14 12.9% 13.1% Other Oper. Income 71 146 Operating Profit 2,174 1,747 15 24 37.4% 34.7% % In Italics are % of Tur
Slide 15: Q1 Performance Summary
Q1 Performance Summary 1Q 06 1Q 05 %Change £m £m CER £ Operating Profit 2,174 1,747 15 24 Interest (19 ) (49 ) Profit Before Tax 2,170 1,711 17 27 Earnings Per Share 26.5 p 21.1 p 17 26 Tax Rate 29.5 % 28.5 % 15
Slide 16: Legal & Restructuring Costs and Asset Sale Profits
Legal & Restructuring Costs and Asset Sale Profits 1Q 06 1Q 05 £m £m Legal Costs (107 ) (75 ) Restructuring Costs 47 * (29 ) Asset Sale Profits 12 146 Theravance & Quest 30 (13 ) (18) 29 - £47 million * Includes Montrose write-back of £65 million 16
Slide 17: US Dollar Trends
US Dollar Trends 2006 2005 2.00 1.95 1.90 1.85 $/£ 1.80 ~$1.78 1.75 1.70 1.65 1.60 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Month end closing rates 17
Slide 18: Cash Flow
Cash Flow 1Q 06 1Q 05 £m £m Free Cash Flow 1,460 1,031 Dividends (568) (571) Purchase of Own Shares (200) (176) Share Option Exercises 182 34 Sale of Intangible Assets 12 165 Other (21) (4) Net Decrease in Debt 865 479 31st March 31st Dec 06 05 Net Debt (372) (1,237) 18
Slide 19: David Stout, President, Pharmaceuticals
David Stout President, Pharmaceuticals
Slide 20: 1Q06 Sales by Region
1Q06 Sales by Region Total Pharma Sales £5.0bn +10% Int’l £1.0bn +12% USA £2.6bn +15% Europe £1.4bn +1% CER growth rates 20
Slide 21: Key Growth Drivers
Key Growth Drivers Total sales grew to £2.2 bn (+22%) from £1.7 bn in 1Q05 Respiratory Diabetes CNS Anti-Viral CV Vaccines Advair Avandia Lamictal Valtrex Coreg Vaccines £816m £384m £237m £204m £225m £366m +12% +24% +14% +16% +53% +44% 1Q06 Global Sales and CER growth rates 21
Slide 22: Seretide/Advair Growth Continues In All Regions
Seretide/Advair Growth Continues In All Regions Intn’l £80m +20% US Europe £460m +11% £276m +11% Sales £816 million +12% CER growth rates 22
Slide 23: Seretide/Advair Important Milestones
Seretide/Advair Important Milestones • New label agreed with FDA March 3rd ¾ Initial therapy use based on doctor’s discretion • Positive TORCH results in COPD March 28th ¾ Details still to be published ¾ To be filed with FDA in ’06 • Japan approval expected in 2H06 / 1H07 23
Slide 24: Seretide/Advair's profile significantly reinforced
Seretide/Advair’s profile significantly reinforced: 17% (p=0.052) reduction in mortality* and 25% (p<0.001) reduction in exacerbations* Exacerbations are major concern for COPD patients and are associated with increased mortality. * Compared with placebo arm. 24
Slide 25: Avandia Sales £384 Million +24%
Avandia Sales £384 Million +24% Intern’l £52m • Avandamet is key growth +17% driver in Europe Europe £51m +59% • US & Intern’l growth has been US constrained by Cidra £281m +20% • Avandaryl launched (£12m) CER growth rates 25
Slide 26: New US Product
New US Product Weekly US Retail NRx Volume 5,200 Avandaryl 3,900 Avandamet 2,600 1,300 0 1 2 3 4 5 6 7 8 9 10 11 12 13 Weeks From Launch Source: Verispan SPA /VONA, first week of launch based on first week of promotion 26
Slide 27: Near-term Opportunities
Near-term Opportunities • Continued rollout of Avandaryl • New Avandia capacity from mid-April • Re-launch Avandamet in US mid ’06 • DREAM • ADOPT 27
Slide 28: Vaccines Excellent Q1 Performance: £366m +44%
VACCINES Excellent Q1 Performance: £366m +44% New £23m Vaccines Including Rotarix and Boostrix Infanrix/ £124m +54% Pediarix Europe +73% helped by withdrawal of competitor £103m +41% Broad Varilrix +100%; Polio +100%; Portfolio DTPw +25%; Priorix +16% CER growth rates 28
Slide 29: Three Rising Stars
Three Rising Stars Q1 Combined Sales £120m >100% £47m +73% • Q1 US NRx share of 5-ARI 42%; TRx +109% £58m +83% • RLS launch continues: US Q1 TRx +272% • EU launches beginning in Q2’06 £15m >100% • US launch continues: 27% share of new BP patients • EU launches in ’06 CER growth rates. Source: Verisp
Slide 30: 2006 Approvals / Launches
2006 Approvals / Launches Arranon FluLaval Menitorix Rotarix in Europe in Europe Adartrel 30
Slide 31: Superior Efficacy vs Market Leader
Superior Efficacy vs Market Leader % Subjects achieving pain relief at 4 hours 80 Trexima 70 75% of subjects Sumatriptan 60 achieved pain relief after 50 Naproxen 4 hours with Trexima % Subjects 40 Placebo 30 20 Expect 3Q06 launch 10 0 30 60 120 240 Minutes *Source: Pooled data from studies MT400-30
Slide 32: 2006 Filings
2006 Filings Cervarix mepolizumab Tykerb Wellbutrin XL in Europe H5N1 pandemic Arixtra (ACS) Allermist Requip PLEs Eltrombopag* Lamictal XR *Filing expected in 4Q06/1H07 32
Slide 33: GlaxoSmithKline
GlaxoSmithKline