Gsk Plc · LSE:GSK
Gsk — Q2 2024 Earnings Presentation
46 slides from Gsk's earnings presentation, Jul 31, 2024
Slide 1: Half Year and Q2 2024 Results
31 July 2024 Half Year and Q2 2024 Results Conference call and webcast for investors and analysts gsk.com
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 H1 2024 continued momentum and R&D progress Emma Walmsley Positive pipeline progress Tony Wood Performance: growth drivers Luke Miels and Deborah Waterhouse Q2 2024 performance and 2024 guidance Julie Brown Summary and Q&A Emma Walmsley, Tony Wood, Luke Miels, Deborah Waterhouse, Julie Brown,
Slide 4: H1 2024 continued momentum and R&D progress
H1 2024 continued momentum and R&D progress Emma Walmsley, Chief Executive Officer 4
Slide 5: H1 2024 momentum drives upgraded guidance
H1 2024 momentum Q2 2024 performance drives upgraded guidance Sales Core operating profit £7.9bn, +13% £2.5bn, +18% Delivered 13%1 sales growth, +13% +21% 1 1 28%1 core operating profit growth Strong sales growth across Core EPS Dividend per portfolio: 43.4p, +13% share • Vaccines +12%1 +17% 15p 1 •
Slide 6: 2024 pipeline delivering momentum
2024 pipeline delivering momentum Unlocking growth drivers Pipeline vaccines Pipeline highlights and medicines • depemokimab: reported positive results from phase III trials for the first potential long-acting biologic for patients with severe asthma 70 • Blenrep: presented positive 2L combination t
Slide 7: Trust: delivering health impact sustainably
Trust: delivering health impact sustainably For health impact, shareholder returns and thriving people Six priority areas to build trust Key highlights Access • Launched tafenoquine, the first single-dose radical cure medicine to prevent the relapse of Plasmodium vivax malaria in Thailand and Brazil
Slide 8: Strong momentum underpins confidence in future profitable growth
Strong momentum underpins confidence in future profitable growth Full-year 2024 guidance1 2021-2026 outlook1 2031 outlook Sales growth Sales CAGR2 2031 sales3 7-9% >7% >£38 billion Core operating profit growth Core operating profit CAGR2 11-13% >11% Core EPS growth Core operating profit margin 10-12
Slide 9: Positive pipeline progress
Positive pipeline progress Tony Wood, Chief Scientific Officer 9
Slide 10: Continued pipeline delivery
Continued pipeline delivery 10 regulatory approvals or submissions and 7 positive phase III results in H1 2024 Infectious Respiratory/ HIV Oncology Diseases Immunology Arexvy cabotegravir ULA1 depemokimab Blenrep MenABCWY rilpivirine ULA1 camlipixant Ojjaara Pneumococcal 24-valent VH184 (3rd generat
Slide 11: Infectious Diseases: Vaccines
Infectious Diseases: Vaccines Arexvy >94% S1 VE in subjects with comorbidities; 75% VE S 1+2 vs severe LRTD Arexvy: Cumulative Season 1+2 and Season 1 VE data Arexvy Placebo % VE (95% CI) % VE (95% CI) Season 1+2 Season 1 Number of events (n/N) w/ season as a covariate w/ season as a covariate Arexv
Slide 12: Infectious Diseases: Vaccines progress
Infectious Diseases: Vaccines progress AAIC: retrospective study observes association between Shingrix vaccination and a reduction in the risk of dementia at 3 & 5 years compared with PPSV23 and Zostavax . investigating a link between HZ Quasi-experimental and observational studies Shingrix vaccinat
Slide 13: Preventing and treating respiratory diseases
Preventing and treating respiratory diseases IL-51 plays a key role in eosinophilic inflammation in asthma and COPD2 depemokimab: SWIFT-1 and 2 design Nucala COPD: MATINEE phase III SoC3: ICS4 + controller + depemokimab 100 mg SC5 • Stricter eosinophil entry criteria Screening / R 1st Dose Last Dose
Slide 14: Oncology
Oncology Blenrep Jemperli Omjjara Potentially transformative in the treatment Significant OS benefit in endometrial • Japanese approval with line agnostic of 2L1 MM2 cancer label • DREAMM-7: Blenrep combination • Unprecedented data from RUBY belrestotug demonstrates mPFS3 36.6m vs 13.4m for demonstr
Slide 15: Performance: growth drivers
Performance: growth drivers Luke Miels, Chief Commercial Officer Deborah Waterhouse, CEO, ViiV Healthcare and President, Global Health 15
Slide 16: Growth across all product areas and regions
Growth across all product areas and regions Sales contribution by product area1 Sales contribution by region1 Vaccines Specialty Medicines General Medicines US Europe International 9,000 9,000 +13% +13% 8,000 8,000 +11% +11% 7,000 7,000 +3% Sales (£m) 6,000 Sales (£m) 6,000 +17% 5,000 5,000 +22% 4,0
Slide 17: Vaccines: +3% driven by meningitis vaccines, Shingrix ex-US and Arexvy
Vaccines: +3%1 driven by meningitis vaccines, Shingrix ex-US and Arexvy 2024 guidance: low to mid-single digit % growth, low DD ‘21-26 CAGR1 Shingles (Shingrix) -4% Sales contribution by disease area1 • Launched in 45 markets, majority with <5% cumulative immunisation rate RSV Shingles Meningitis Es
Slide 18: Specialty Medicines: +22% with strong performance across disease areas
Specialty Medicines: +22%1 with strong performance across disease areas 2024 guidance: mid to high-teens % growth1 HIV +13% Sales contribution by disease area1 • Performance driven by continued momentum of LAI2 portfolio and strong delivery on Dovato HIV Respiratory/Immunology Oncology Respiratory/I
Slide 19: Growth drivers spotlight: Nucala and Ojjaara performance
Growth drivers spotlight: Nucala and Ojjaara performance Nucala Ojjaara • 35 quarters of double-digit growth • Fastest US launch uptake in value for a JAK3 inhibitor in myelofibrosis • Strong growth across all regions • US share in patients with anaemia4,5: 19% in 1L6 and 35% in 2L7 • Continued lead
Slide 20: General Medicines: +12%, driven by Trelegy momentum
General Medicines: +12%, driven by Trelegy momentum 2024 guidance: low to mid-single digit % growth Respiratory +18%, Other General Medicines -1% Sales contribution by disease area Trelegy +41% Respiratory Other General Medicines • Strongest ever quarter, delivering £842m • Top selling brand in asth
Slide 21: HIV: Growing 13% in Q2 2024, with momentum across LAI portfolio
HIV: Growing 13% in Q2 2024, with momentum across LAI1 portfolio Positive momentum across LAI portfolio Performance driven by continued momentum of LAI portfolio and strong delivery on Dovato 400 20% • Q2 2024 global sales of £1.8bn driven by 2ppt increase in market share vs 18% Q2 2023 18% 350 17%
Slide 22: Q2 2024 performance and 2024 guidance
Q2 2024 performance and 2024 guidance Julie Brown, Chief Financial Officer 22
Slide 23: Continued strong momentum in Q2 2024
Continued strong momentum in Q2 2024 Q2 2023 Q2 2024 AER CER Key commentary on CER basis Core results £m £m % % Sales 7,178 7,884 10 13 Sales grew +13% (excl. COVID-19 solutions) Cost of sales (1,728) (1,877) 9 12 Regional mix benefits Gross profit 5,450 6,007 10 13 Gross profit margin 75.9% 76.2% +
Slide 24: Q2 2024 core operating margin improved
Q2 2024 core operating margin improved Excluding COVID-19 solutions +190 bps CER Including COVID-19 solutions +130 bps CER Margin benefits driven by SG&A, part offset by royalties Margin benefits driven by SG&A, part offset by royalties +130bps +190bps 0.6% 0.7% 1.4% 1.4% 31.9% 31.9% 31.5% 0.4% 0.4%
Slide 25: H1 2024 free cash flow of £0.6bn
H1 2024 free cash flow of £0.6bn Cash generated from operations of £2.8bn £m £m H1 2023 H1 2024 Key drivers of cash flow Core operating profit 4,262 4,956 H1 2024 Decrease/(Increase) in working capital (1,237) (955) £0.9bn increase in cash generated from operations, mainly driven by: Contingent cons
Slide 26: Capital deployment supports business growth and shareholder returns
Capital deployment supports business growth and shareholder returns -£1.1bn 0.2 1.2 15.0 2.3 £bn 1.2 1.6 14.0 0.5 31 Dec 2023 FCF ex-Capex 1 Capex - PP&E Business 2 Dividends to Other 3 Haleon stake 30 Jun 2024 Net debt development shareholders monetisation Net debt Invest for growth Shareholder dis
Slide 27: 2024 guidance at CER and excl. COVID-19 solutions
2024 guidance at CER and excl. COVID-19 solutions Upgraded guidance1 Sales1 Core operating profit1 7-9% (Previously 5-7%, towards upper part of the range) 11-13% (Previously 9-11%) Product group sales growth guidance1 Vaccines: + low to mid single digit % Core earnings per share1 10-12% Specialty Me
Slide 28: IR Roadmap 2024 to 2025
IR Roadmap 2024 to 2025 H1 2024 H2 2024 2025 Execution • Full-year 2023 results • Half-year 2024 results • Full-year 2024 results and 2025 guidance • Guidance 2024 • Q3 2024 results • Q1 2025 results • Q1 2024 results • Half-year 2025 results • Q3 2025 results Pipeline1 • Ojjaara/Omjjara: MO
Slide 29: Focused on prevention and changing the course of disease
Focused on prevention and changing the course of disease Ahead Together R&D based on science of Leaders in development of Products that improve the Strong momentum and the immune system and new Vaccines and Specialty health of millions of people, improving outlook for use of new platform and Medicin
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Slide 31: Appendix
Appendix 31
Slide 32: 2024 guidance at CER and excl. COVID-19 solutions: product group guidance
2024 guidance at CER and excl. COVID-19 solutions Product group sales guidance Vaccines1 Specialty Medicines1 General Medicines1 Increase low to Increase mid to Increase low to mid-single-digit % high-teens % mid-single-digit % (Previously increase high single-digit (Previously increase low- (Previo
Slide 33: 2024 full year outlook considerations to support modelling
2024 full year outlook considerations to support modelling 2023 growth 2021 – 2026 2021 – 2026 2024 Guidance 2024 Assumptions excl. Covid BIU 2021 BIU 2024 Turnover +14% 7-9% >5% CAGR >7% CAGR - Vaccines +24% LSD – MSD % HSD CAGR LDD CAGR mid to high- - Specialty +15% DD CAGR DD CAGR teens % - HIV +
Slide 34: Q2 Total to Core operating profit reconciliation
Q2 Total to Core operating profit reconciliation Q2 2023 Q2 2024 Key commentary on CER basis Operating profit Operating profit (£m) (£m) Total results 2,141 1,646 -22% at CER Intangible amortisation 184 193 Intangible impairment 4 47 Major restructuring 46 124 Primarily CCL1 movements, primarily Vii
Slide 35: Improved core earnings per share with +13% growth at CER
Improved core earnings per share with +13% growth at CER Q2 2023 Q2 2024 Key commentary on CER basis £m £m Core operating profit (OP) 2,170 2,513 +18% incl. COVID; +21% excl. COVID-19 solutions Net finance expense (152) (148) Share of associates (2) (1) Tax (315) (423) Tax rate 15.6% 17.9% Broadly i
Slide 36: Quarterly summary of core results
Quarterly summary of core results 2023 2024 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Including COVID-19 solutions Sales (£m) 6,951 7,178 8,147 8,052 30,328 7,363 7,884 Operating profit (£m) 2,092 2,170 2,772 1,752 8,786 2,443 2,513 Operating margin 30.1% 30.2% 34.0% 21.8% 29.0% 33.2% 31.9% Earnings per share (
Slide 37: Currency
Currency 2023 currency sales exposure1 2024 core operating profit Currency sensitivity US $ 52% US $: 10 cents movement in the average exchange rate for full year If exchange rates were to hold at the closing rates impacts core operating profit by approx. +/- 9.0% on 30 June 2024 ($1.27/£1, €1.18/£1
Slide 38: Upcoming pipeline catalysts: 2024 and 2025
Infectious diseases Upcoming pipeline catalysts: 2024 and 2025 HIV (ViiV) Respiratory/Immunology Oncology Opportunity driven H2 2024 H1 2025 H2 2025 Regulatory Arexvy: 50-59 YoA1 AIR2 EU, JP gepotidacin: EAGLE-2/3, uUTI7 US gepotidacin: EAGLE-1, GC13 US decision Nucala: CRSwNP3 JP MenABCWY vaccine 1
Slide 39: 70 potential new vaccines and medicines in pipeline: Phase III
Infectious diseases HIV (ViiV) Respiratory/Immunology 70 potential new vaccines and medicines in pipeline Oncology Opportunity driven Phase III / Registration – 18 assets Arexvy (RSV vaccine) Recombinant protein, adjuvanted* RSV adults (50-59 YoA AIR)**^1 gepotidacin (GSK2140944) BTI inhibitor* Unco
Slide 40: 70 potential new vaccines and medicines in pipeline: Phase II
Infectious diseases HIV (ViiV) Respiratory/Immunology 70 potential new vaccines and medicines in pipeline Oncology Opportunity driven Phase II – 32 assets GSK3437949 Recombinant protein, adjuvanted* Malaria fractional dose GSK4406371 Live, attenuated MMRV new strain GSK3536852 GMMA* Shigella GSK3528
Slide 41: 70 potential new vaccines and medicines in pipeline: Phase I
Infectious diseases HIV (ViiV) Respiratory/Immunology 70 potential new vaccines and medicines in pipeline Oncology Opportunity driven Phase I – 20 assets GSK3536867 Bivalent conjugate* Salmonella (typhoid + paratyphoid A) GSK2556286 Mtb cholesterol dependent inhibitor* Tuberculosis GSK3772701 P. fal
Slide 42: Changes since Q1 2024
Infectious diseases HIV (ViiV) Respiratory/Immunology Changes since Q1 2024 Oncology Opportunity driven Changes on pipeline Achieved pipeline catalysts Progressed from Phase II to Phase III Regulatory decisions belrestotug (GSK4428859): Anti-TIGIT antibody, non-small cell lung cancer Arexvy: Adjuvan
Slide 43: Glossary
Glossary ADC Antibody drug conjugate EGPA Eosinophilic granulomatosis with polyangiitis NSCLC Non-small cell lung cancer AE Adverse event FVC Forced vital capacity OMV Outer membrane vesicle AESI Adverse event of special interest GC Urogenital gonorrhea ORR Overall response rate AIR At increased ris
Slide 44: Assumptions and basis of preparation related to 2024 guidance
Assumptions and basis of preparation related to 2024 guidance In outlining the guidance for 2024, the Group has made certain assumptions about the healthcare sector (including regarding possible governmental legislative and regulatory reform), the different markets and competitive landscape in which
Slide 45: Use of GSK conference call, webcast and presentation slides
Use of GSK conference call, webcast and presentation slides The GSK plc webcast, conference call and presentation slides (together the ‘GSK materials’) are for your personal, non-commercial use only. You may not copy, reproduce, republish, post, broadcast, transmit, make available to the public, sel
Slide 46: gsk.com
gsk.com