Gsk Plc · LSE:GSK
Gsk — Investor Day (July 2017)
25 slides from Gsk's investor day presentation, July 2017
Slide 1: Building Innovation, Performance and Trust
Building Innovation, Performance and Trust Emma Walmsley, CEO
Slide 2: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements This presentation may contain 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 t
Slide 3: Agenda
Agenda Key strategic priorities (1hr) Emma Walmsley, Chief Executive Officer Q2 and financial outlook (30 mins) Simon Dingemans, Chief Financial Officer Break (15mins) Q&A (90mins) Informal reception 3
Slide 4: Q&A panel
Q&A panel Gijs van den Brink Jack Bailey Axel Hoos Patrick Vallance SVP Head of President US Head of Oncology President R&D Immuno-inflammation Pharmaceuticals Therapy Area Therapy Area David Redfern Eric Dube Kate Knobil David Gordon Chief Strategy Officer, SVP & Head Global Chief Medical Officer,
Slide 5: Do more, feel better, live longer
B do more feel better live longer
Slide 6: Fast changing environment and competing industry trends
Fast changing environment and competing industry trends Advances in science Technology disruption Opportunities to create Positive demographics value but challenges require agility and change Pricing pressures M&A landscape 6
Slide 7: Balanced business to deliver sustainable growth and returns to shareholders
Balanced business to deliver sustainable growth and returns to shareholders Common goal to improve health, from prevention to treatment Vaccines Consumer Pharmaceuticals Therapeutic and Healthcare category leadership Broadest industry Category leadership Leading positions in HIV and Respiratory port
Slide 8: Stronger recent performance across our businesses
Stronger recent performance across our 3 businesses - Successful transition to new respiratory portfolio with Ellipta and Nucala - Leading position in HIV with Pharmaceuticals Tivicay/Triumeq launches Sales growth - Scale transformed and stabilising supply - Strong growth of meningitis vaccines Marg
Slide 9: Need to improve long-term performance and build off recent momentum
Need to improve long-term performance and build off recent momentum Group sales EPS* (£m) +5% CER (p) proforma, -1% CER, +1% CER, +1% CER 30,000 -3% AER =0% AER +17% AER 200 -3% CER*, proforma, -10% AER* +4% AER 25,000 150 20,000 15,000 100 10,000 50 5,000 - 0 2012 2013 2014 2015 2016 2012 2013 2014
Slide 10: Need to improve focus and output of Pharma R&D
Need to improve focus and output of Pharma R&D Number and value of NME launches between 2006 and 2015 Quartile NME launches1 Estimated Peak Year Sales per NME2 Number; 2006-15 US $B; timeframe 2007-22 Peer Peer Top Peer Peer Peer GSK 18 7 25* 0.6 2nd Peer Peer Peer Peer 3rd Peer Peer Peer Peer Botto
Slide 11: Investment spread across too many projects
Investment spread across too many projects Ph I-III assets1 per R&D spend2 Number per US $B; 2015 Peer Q1 Peer Top Peer Peer Peer Peer 2nd Peer Peer Peer Peer 3rd Peer Peer Peer Peer Bottom Peer GSK 17.8 Average 10 1. Excludes generics, OTC and vaccines; assets only counted once across multiple indi
Slide 12: Opportunity to improve development timelines
Opportunity to improve development timelines 2014-2016 GSK 2013-2015 2012-2014 Preclinical Phase I 2011-2013 Phase II 2010-2012 Phase III 2009-2011 Submission to approval 2008-2010 0 2 4 6 8 10 12 14 2014-2016 Industry 2013-2015 2012-2014 2011-2013 2010-2012 2009-2011 2008-2010 0 2 4 6 8 10 12 14 12
Slide 13: Key objectives 2017-2020
Key objectives 2017-2020 - Prioritise Pharma with key changes to operating model and portfolio - Maximise value from recent and Group sales 5-year CAGR to 2020 new product launches low to mid single digit - Address pricing exposure to portfolio - Make the right choices to invest and Consumer Pharma
Slide 14: 3 long-term priorities for all 3 businesses
3 long-term priorities for all 3 businesses Innovation Performance Trust 14
Slide 15: Improve innovation across GSK, top priority is Pharma Innovation
Improve innovation across GSK, top priority is Pharma Near-term opportunities Strengthen pipeline Change governance - Breo, Anoro, Nucala, - 80% R&D spend to be - Improve governance Bexsero, Menveo and allocated to 2 core, with increased commercial Tivicay/Triumeq 2 potential therapy areas input on
Slide 16: Developing the pipeline in Pharma
Developing the pipeline in Pharma Development capital focus on 2 core and 2 potential therapy areas Capital Therapy Areas Prioritised assets Respiratory Closed Triple PI3Kδ danirixin HIV/ DTG+rilpivirine Infectious diseases DTG+lamivudine cabotegravir + rilpivirine 80% Immuno- tapinarof inflammation
Slide 17: Refocusing to reinvest
Refocusing to reinvest Decision made to terminate, partner or divest 13 clinical program, others under review Therapy area Asset Type Indication Phase Infectious 2878175 nonstructural protein 5B (NS5B) polymerase inhibitor hepatitis C II diseases danirixin i.v. chemokine (C-X-C Motif) receptor 2 (CX
Slide 18: Regulatory
Data on key assets in next 3 years to inform investment in Pharma pipeline, organically or inorganically 2H 2017 2018 2019 2020 2894512 (tapinarof) Closed triple Closed triple topical NSAID in COPD Asthma Regulatory atopic dermatitis, psoriasis US/EU approvals US/EU submissions US/EU submissions dol
Slide 19: Deliver competitive performance across all businesses
Deliver competitive performance across all 3 businesses Growth with Improved focus Invest in people stronger execution and efficiency and capabilities - Integrated and aligned - Improved capital - New leaders strategy and P&L for allocation discipline - New incentives, each business - Strategic revi
Slide 20: Changes to the pharmaceuticals business to improve performance
Changes to the pharmaceuticals business to improve performance New leadership Stronger R&D Better US Pharma Integrated P&L commercial execution New Emerging Supply chain Markets operations efficiencies 20
Slide 21: Cost discipline to fuel investment for growth
Cost discipline to fuel investment for growth Supply chain R&D investment efficiencies Expected Simpler Pharma additional annual Investment behind new operations cost savings of product launches £1 billion by 2020 Defending margins Leaner Corporate and and driving administrative functions operating
Slide 22: Build trust in our operations and in the way we work
Build trust in our operations and in the way we work Right fundamentals Engagement and access Employees - Supply continuity - Strengthened scientific - Increase diversity and medical engagement and flexible working - Commitment to Trust quality and safety - Transparency with stakeholders - Modern em
Slide 23: Values and performance based culture to support delivery of priorities
Values and performance based culture to support delivery of priorities Keep Change How Increased focus on Right leadership Purpose performance and team Operating structure Values Pace of decision making and decision rights Aligned objectives, incentives Quality Cost and cash discipline and benchmark
Slide 24: Capital allocation framework
Capital allocation framework Key priorities for capital Invest 1. Pharma pipeline Innovation in the 2. Consumer put business 3. Vaccines capacity Improved Performance cash Shareholder returns generation Trust Business development 24
Slide 25: Our aim is to deliver benefits for patients, consumers and shareholders
Our aim is to deliver benefits for patients, consumers and shareholders Up to 2020 2020 + Group sales 5-year CAGR low to mid single digit* Innovation Pharma Vaccines Consumer Impact Healthcare human health 5-year sales CAGR: 5-year sales CAGR: 5 year sales CAGR: low single digit* mid to high single