Gsk Plc · LSE:GSK
Gsk — GlaxoSmithKline — Q3 2003 Earnings Presentation
22 slides from Gsk's earnings presentation, Oct 22, 2003
Slide 1: Third Quarter Results Presentation to Investors/Analysts
Third Quarter Results Presentation to Investors/Analysts 22nd October 2003
Slide 2: CEO's Remarks
CEO’s Remarks JP Garnier Chief Executive Officer
Slide 3: Financial Results
Financial Results John Coombe Chief Financial Officer
Slide 4: Business Performance Results
Business Performance Results 3Q03 3Q02 % Change £m £m CER Reported Sales 5,466 5,019 9 9 - Pharma Sales 4,634 4,222 10 10 Trading profit 1,752 1,555 13 13 Other operating income/(expense) (33) (145) Net interest expense (46) (42) Profit before tax 1,693 1,388 20 22 Tax rate 27.5% 27.0% Earnings 1,19
Slide 5: US $ Trends 2003 vs 2002
US $ Trends 2003 vs 2002 $1.67 at 17th Oct 1.70 1.65 1.60 1.55 £/$ 1.50 2002 1.45 2003 1.40 1.35 1.30 1.25 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Month end closing rates
Slide 6: Performance by Operating Division
Performance by Operating Division Q303 Q302 Growth £m £m CER % Sales Pharmaceuticals 4,634 4,222 10 Consumer Healthcare 832 797 4 Trading Profit Pharmaceuticals 1,578 1,410 11 Consumer Healthcare 174 145 26
Slide 7: Trading Profit Analysis
Trading Profit Analysis Q303 Q302 % change £m £m CER £ Sales 5,466 5,019 9 9 Cost of Goods (1,063) (1,041) 0 2 19.4% 20.7% SG&A (1,970) (1,782) 12 11 36.0% 35.5% R&D (681) (641) 6 6 12.5% 12.8% Trading Profit 1,752 1,555 13 13 32.1% 31.0% % In Italics are % of Sales
Slide 8: Cash Flow
Cash Flow Q3 03/£m Q3 02/£m Net Operating Cash Flow 2,341 2,143 Interest (44) (49) Taxation (449) (494) Capital Expenditure (194) (227) Dividends (523) (536) Purchase of Own Shares (280) (353) Other (131) (57) Decrease in Net Debt 720 427 Net Debt 30 Sept 03 30 June 03 (1,442) (2,162)
Slide 9: Pharmaceuticals
Pharmaceuticals David Stout President, Pharmaceuticals
Slide 10: Pharmaceuticals - Sales by Region
Pharmaceuticals - Sales by Region 3 months to September 2003 £0.9bn (+9%) % share USA 54 £2.5bn Europe 26 (+14%) £1.2bn International 20 (+3%) Total Pharma Sales £4.6bn +10% Note: CER % growth - three months ended 30th September 2003
Slide 11: Paxil: Generic Erosion
Paxil: Generic Erosion US % TRx Share of Total branded and generic Paxil 100% Apotex 80% 46% 66% Generic Par 60% Paxil IR 18% 40% Paxil CR 20% 34% 36% 0% W/e 5th September W/e 10th October Source: Verispan SPA - US Antidepressant market weekly TRx
Slide 12: Tolerability Differentiates Paxil CR
Tolerability Differentiates Paxil CR Paxil CR Paxil IR 25 25 Paxil Placebo Paxil CR Placebo 20 (drop outs due to adverse events) (drop outs due to adverse events) 20 15 15 % Patients 15 % Patients 10 10 5 3 5 4 2 0 0 Source: US prescribing information for Social Anxiety Disorder indication
Slide 13: TRxs Strong Growth Continues...
TRxs 150,000 225,000 300,000 1/4/02 1/18/02 2/1/02 2/15/02 3/1/02 3/15/02 3/29/02 4/12/02 4/26/02 5/10/02 5/24/02 6/7/02 6/21/02 7/5/02 7/19/02 Summer 8/2/02 8/16/02 8/30/02 9/13/02 Source: Verispan SPA Weekly TRx US R3 Market 9/27/02 10/11/02 10/25/02 11/8/02 11/22/02 12/6/02 Thanksgiving 12/20/02
Slide 14: Seretide Europe: Continued Share Gains
Seretide Europe: Continued Share Gains 25 European Respiratory Market Share (%) 20 15 10 5 0 Sep 01 Dec 01 Mar 02 Jun 02 Sep-02 Dec-02 Mar-03 Jun 03 Seretide Symbicort Spiriva Source: IMS R3 Market Share by Sales (£000s)
Slide 15: US OAD Weekly NRx Market Share
US OAD Weekly NRx Market Share 11.0% Avandia/Avandamet 10.9% 10.5% 10.0% Avandamet launched 9.5% Actos 9.0% 9.0% 8.5% May-02 September-02 January-03 May-03 September-03 Source: Scott Levin OAD NRx Market Share
Slide 16: Recent Key FDA Approvals
Recent Key FDA Approvals è New High Dose è Bipolar Disorder è Erectile Dysfunction è PMDD & SAD è Reduction of GH Transmission è Depression è New Convenient PI for HIV
Slide 17: Approved for Bipolar Disorder
Approved for Bipolar Disorder <10%* BP patients treated with Lamictal 5.5% Sales +40% Bipolar 5.0% Approval 4.5% 4.0% /03 /03 /03 /03 /03 /03 /03 /03 /03 /03 /03 /01 /02 /06 /07 /03 /08 /01 /05 /10 /04 /09 31 28 20 18 28 15 03 23 10 25 12 * GSK estimate. Source: Scott Levin Weekly NRx Share (AED mar
Slide 18: Retail NRx: Wellbutrin XL Great Launch
of R % Great Launch! 1 trin S e 9 llbu erted W onv c 35,000 Wellbutrin XL 30,000 25,000 Lexapro Retail NRx 20,000 15,000 10,000 5,000 0 Week 1 Week 2 Week 3 Week 4 Week 5 Source: Verispan
Slide 19: Great Data Drives NRx Growth!
4.50% 5.50% 28/1 6.50% 2/20 18/0 01 1/20 08/0 02 2/20 02 01/0 3/20 22/0 02 3/20 02 12/0 4/20 03/0 02 5/20 02 24/0 5/20 14/0 02 6/20 02 05/0 7/20 26/0 02 7/20 16/0 02 8/20 02 06/0 9/20 27/0 02 9/20 02 Source: Verispan US Weekly NRx Share Beta Blocker Market 18/1 0/20 08/1 02 1/20 02 29/1 1/20 20/1 02
Slide 20: Strong NRx Uptake >12%
Strong NRx Uptake >12% Share of Levitra Business New ED Patients Switches 38% 62% *Source: Estimate based on Impact Rx, PromoLink, source of Business
Slide 21: 3 x more likely to complete
“Men unresponsive to Viagra 3x more likely to complete sexual intercourse successfully on Levitra than on placebo” Source: Carson C, Hatzichristou D, Carrier S, et al: Patient Response with Vardenafil in Sildenafil Nonresponders (PROVEN)
Slide 22: GlaxoSmithKline
osk GlaxoSmithKline