Gsk Plc · LSE:GSK
Gsk — Merger or Acquisition (December 2018)
17 slides from Gsk's merger presentation, Dec 3, 2018
Slide 1: Accelerating our priorities and building our capabilities in Oncology
Accelerating our priorities and building our capabilities in Oncology GSK to acquire TESARO 3 December 2018
Slide 2: Cautionary statements
Cautionary 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 to historical or current facts. They
Slide 3: Agenda
Agenda Strategic rationale Emma Walmsley, Chief Executive Officer Competitive PARP inhibitor Dr Hal Barron with promising early Chief Scientific Officer and President R&D stage pipeline Accelerating our Oncology Luke Miels, capabilities President, Global Pharmaceuticals Transaction details Simon Din
Slide 4: Delivering on our strategic and capital allocation priorities
Delivering on our strategic and capital allocation priorities Innovation Performance Trust 4
Slide 5: The proposed transaction will present a compelling opportunity to deliver long term sustainable growth
The proposed transaction will present a compelling opportunity to deliver long term sustainable growth Strengthens Accelerates build Oncology pipeline of Oncology capabilities Near term catalyst in Zejula in: Existing commercial asset: Zejula in second line maintenance of platinum • First line maint
Slide 6: PARP inhibitors: wider application than has been appreciated
PARP inhibitors: wider application than has been appreciated High grade serous ovarian cancer* – PARP inhibitors have transformed the treatment of gBRCA ovarian cancer (15%) – Prior to the publication of TESARO’s NOVA study, non-gBRCA PARP inhibitors were thought to only benefit HRD- patients with g
Slide 7: NOVA study: designed to assess outcomes in distinct biomarker populations
NOVA study: designed to assess outcomes in distinct biomarker populations Patients were prospectively assigned to two cohorts based on their hereditary gBRCA mutation status and then randomised 2:1 within each cohort1 Carry niraparib 300 mg R Patients with gBRCAmut PFS* 2:1 Placebo recurrent ovarian
Slide 8: NOVA study shows efficacy beyond gBRCA
NOVA study shows efficacy beyond gBRCA Activity in HRD negative patients suggests tests do not currently recognise all HRD positive patients or additional mechanisms are at play gBRCA mutation Non-gBRCA mutation HR: HR: 0.27 0.45 Non-gBRCA mutation, HRD positive HRD negative HR: HR: 0.38 0.58 8
Slide 9: Monotherapy versus combination therapy in 1LM
Monotherapy versus combination therapy in 1LM Competing approaches to the “all comers” opportunity PAOLA-1 study evaluating PRIMA study evaluating Zejula Lynparza in combination with monotherapy in “all comers” Avastin in “all comers” – Potential for broad “all comers” or HRD+ label – Avastin curren
Slide 10: HRD status likely to identify non-gBRCA patients who will benefit from PARP inhibitors
HRD status likely to identify non-gBRCA patients who will benefit from PARP inhibitors Potential to expand the number of patients by 3x Scope for improvement as current HRD test likely does not capture all potential HRD patients Other Promoter Commercially available test for genetic methylation muta
Slide 11: HRD testing could enable further development opportunities for Zejula
HRD testing could enable further development opportunities for Zejula Mono/combo therapy Indication Study Zejula monotherapy Ovarian cancer 1LM PRIMA Zejula plus anti PD-1 mAb Ovarian cancer 1LM FIRST Zejula plus anti PD-1 mAb or NSCLC, SSCL JASPER Zejula monotherapy Zejula plus Avastin Ovarian canc
Slide 12: Additional pipeline assets will provide upside potential
Additional pipeline assets will provide upside potential Complementary to existing GSK assets with potential for development of combinations Dostarlimab: a potentially TSR-022: anti TIM-3 TSR-033: anti LAG-3 differentiated anti PD-1 antibody antibody GARNET registration trial TIM-3 (T-cell immunoglo
Slide 13: Zejula well positioned in an evolving market
Zejula well positioned in an evolving market Treatment paradigms in ovarian Zejula well positioned to take cancer are evolving advantage of these trends – Increased use of maintenance therapy – Leading position in the 2LM ovarian – PARP monotherapy to dominate 1L cancer market gBRCA ovarian cancer m
Slide 14: Ovarian cancer opportunity offers significant potential
Ovarian cancer opportunity offers significant potential Data over next 12 months supports broader use across the market 16,000 Potential US Potential US approval: approval: 14,000 TOTAL NUMBER OF US DRUG TOPACIO PRIMA TREATED PATIENTS (2017) Existing US 12,000 approvals: HRD- 10,000 Pt resistant 8,0
Slide 15: Well positioned in a competitive market
Well positioned in a competitive market We expect Zejula to lead in 1LM monotherapy and as PD-1 combo in “all comers” 1L 2L 3L 4L+ Treatment Maintenance Treatment Maintenance Treatment Maintenance Treatment Maintenance PRIMA NOVA NOVA QUADRA NOVA First in class SOLO-1 Study 19 SOLO-2 Study 19 SOLO-2
Slide 16: The proposed transaction will accelerate GSK's oncology presence
The proposed transaction will accelerate GSK’s oncology presence Leading PARP inhibitor for Immediate Oncology Complements ongoing ovarian cancer infrastructure GSK build in oncology ZEJULA quarterly sales progression Solid tumour field force, with Catalyst for broader change 80 54 63 ~250 sales rep
Slide 17: Transaction details
Transaction details Purchase price: $75 per share. Aggregate consideration of $5.1bn (£4.0bn) Consideration Represents 110% premium to TESARO’s 30 day VWAP ($35.67) Expected to impact Adjusted EPS for the first two years by mid to high single digit percentages • 2020 Pharma operating margin impacted