GSK plc · LSE:GSK
GSK — Investor Presentation (2005)
14 slides from GSK's investor presentation, 2005
Slide 1: Introduction
Introduction David Stout President, Pharmaceutical Operations
Slide 2: Key Messages for Today
Key Messages for Today • The vaccines business is attractive • Vaccines market is poised for explosive growth • GSK is a world leader in vaccines • GSK has a strong vaccines pipeline – 5 major new vaccine launches over the next 5 years – More than 20 vaccines in clinical development 36
Slide 3: Vaccines save lives
“The biggest story of all is the story of vaccination. There are 30 million children being vaccinated each year. It is invisible because it is happening one at a time, largely out of view. And new vaccines are being developed that can save another 3 million children. When you think about it, it is p
Slide 4: In the US, Vaccines Have Virtually Eliminated Many Diseases
In the US, Vaccines Have Virtually Eliminated Many Diseases Measles, Diphtheria, Mumps Rubella, H. influenzae b > 99% Smallpox 100% Polio 100% Tetanus 98% 38 Ref.: MMWR, SI: 1149-1176, 2003
Slide 5: GSK: A Long History of Innovative Vaccines
GSK: A Long History of Innovative Vaccines Rubella Rubella First First Recombinant Recombinant Hepatitis Hepatitis BB ,, Engerix-B Engerix-B Hepatitis Hepatitis AA ,, Havrix Havrix Pw Pw and and Pa Pa (Pediarix) (Pediarix) Combinations Combinations 1969 1986 1992 2000 Pionneering Work in Combination
Slide 6: Four Major Players
Four Major Players £5.2bn (+6% vs. ‘03) Merck 11% Wyeth 13% SP-MSD JV 9% Chiron 5% Other 18% Sanofi Pasteur 21% GSK 23% GSK estimates based on analyst reports and company press release. 40
Slide 7: Vaccines: Broad Geographic Opportunity
Vaccines: Broad Geographic Opportunity Global Vaccine Market GSK’s Vaccines Business 2004 sales: £5.2bn 2004 sales: £1.2bn Int’l Int'l £1.3bn EU EU £405m £1.7bn £523m US US £2.2bn £268m 41 GSK estimates based on analyst reports and company press release.
Slide 8: Vaccines: Two Distinct Markets
Vaccines: Two Distinct Markets Private Market Public Market 90% Revenue Volume 60% 40% 10% 42 GSK estimates
Slide 9: Why We Like the Vaccines Business
Why We Like the Vaccines Business • Few Global Players • High Barriers to Entry – Complex Manufacturing – Large Capital Investment – Intellectual Property • Long Product Life Cycles • High Probability of R&D Success (70% post POC) • Developing World Opportunity 43
Slide 10: Profitability Comparable to Pharma
Profitability Comparable to Pharma Vaccines vs Pharma Cost of Goods Higher Sales and Marketing Lower R&D Comparable Operating Margin Comparable 44
Slide 11: GSK Vaccines: A History of Consistent Growth
GSK Vaccines: A History of Consistent Growth… 1200 1994-2004 CAGR: +9% 1000 800 Sales £m 600 400 200 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Sales as reported 45
Slide 12: But Entering an Era of Explosive Growth
…But Entering an Era of Explosive Growth • New Technology • Better Pricing • Heightened Awareness • New Markets • New Products 46
Slide 13: Vaccine Markets: Where GSK Expects to Compete
Vaccine Markets: Where GSK Expects to Compete 25 Therapeutic (cancer) New Markets £17-24bn (e.g. HPV, Rotavirus, Malaria, 20 Dengue, Zoster) Markets where GSK will 15 compete in the future Billions £ £11-16bn (e.g. Flu US, MMR US, Pneumoccocal, Meningitis) 10 Markets where GSK does not plan to compe
Slide 14: Summary
Summary Vaccines Is A Great Business GSK Positioned to Capitalize on an Exceptional Pipeline of New Vaccines 48