Gsk Plc · LSE:GSK
Gsk — Q1 2020 Earnings Presentation
29 slides from Gsk's earnings presentation, Apr 29, 2020
Slide 1: Q1 2020 Results
do more feel better live longer Q1 2020 Results 29 April 2020
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 Q1 2020 progress and update Emma Walmsley, on COVID-19 response Chief Executive Officer Business update Luke Miels, President, Global Pharmaceuticals Q1 2020 financial results Iain Mackay, Chief Financial Officer Summary Emma Walmsley, Chief Executive Officer Q&A: Dr Hal Barron, Chief Scienti
Slide 4: Emma Walmsley, CEO
Emma Walmsley, CEO 29 April 2020
Slide 5: Significant mobilisation in response to COVID-19
Significant mobilisation in response to COVID-19 To help people do more, feel better, live longer People Business continuity Solutions - Focus on health and well - Supply chain resilience and - Vaccines: adjuvant being agility collaborations - Support 20,000+ essential - Proactive measures and - The
Slide 6: GSK pursuing solutions based on four principles
GSK pursuing solutions based on four principles Solutions Using our science, technology, portfolio and resources to support development of products for prevention and treatment of COVID-19 and the overall global response Working in Global Commitment Pandemic Partnership approach to access preparedne
Slide 7: GSK vaccines collaborations
GSK vaccines collaborations Strategic approach to support development of vaccines, as fast as possible – 7 collaborations exploring potential of adjuvanted COVID-19 vaccines – Sanofi collaboration: – Ph1 studies expected to start 2H20 – Aim for vaccine to be available 2H21* – Scale to potentially pr
Slide 8: Therapeutic approaches: new collaboration with Vir
Therapeutic approaches: new collaboration with Vir* – Vir’s unique anti-viral platform complements GSK’s immunology focused R&D + approach – VIR-7831 and VIR-7832 with Ph2 studies in COVID-19 expected to begin in next 3-5 months – Equity investment of $250 million, shared development costs *Subject
Slide 9: Strong start to 2020
Strong start to 2020 Including some stock building Pharmaceuticals Respiratory products +38%* Group sales +19%, +6% CER HIV sales +8%; dolutegravir +9% pro forma +10% Benlysta +24% Zejula sales of £81m, +93%** 29.4% Adjusted operating margin; Vaccines 0.9pp pro forma +19% CER Shingrix sales of £647m
Slide 10: Q1 progress made on our priorities
Q1 progress made on our 3 priorities 2020 focus ✔ Regulatory submissions accepted for Zejula 1LM ovarian cancer, belantamab mafodotin, and dostarlimab ✔ CAB+RPV Innovation • Execution of launches in HIV approved in Canada; US resubmission ✔ Fostemsavir filed in Europe for multi-drug resistant HIV in
Slide 11: Business update
Business update Luke Miels, President Global Pharmaceuticals
Slide 12: Pharma commercial performance
Pharma commercial performance Performance highlights COVID-19 impact & ways of working Continued strong underlying performance across new Weekly TRx volume Weekly TRx volume 60,000 350,000 products: 55,000 300,000 250,000 Trelegy +>100%, growth in class and share in all key 50,000 200,000 markets; U
Slide 13: Zejula well positioned for 1LM OC opportunity
Zejula well positioned for 1LM OC opportunity PRIMA data & NCCN guidelines NCCN guidelines Launch readiness – FDA approval expected shortly – Tesaro fully integrated; additional new experienced oncology Only ~25% of leaders in place US patients receive – Fully recruited competitively bevacizumab sca
Slide 14: Shingrix: strong Q1 performance
Shingrix: strong Q1 performance COVID-19 impacting TRx volume trends Underlying demand remains strong – Q1 sales of £647 million, +79% CER benefiting from Shingrix US weekly TRx volume* improved supply and continued strong demand, plus an 300,000 RAR true up 250,000 – Planning underway to accelerate
Slide 15: Q1 2020 financial results
Q1 2020 financial results Iain Mackay, CFO
Slide 16: Headline results
Headline results Q1 2020 Reported growth % Pro forma % £m AER CER CER Turnover 9,090 19 19 10 Total operating profit 2,014 41 42 n/a Total EPS 31.5p 87 89 n/a Adjusted operating profit 2,675 24 24 14 Adjusted EPS 37.7 25 26 n/a Free cash flow 531 >100 n/a n/a 16
Slide 17: Results reconciliation
Results reconciliation Q1 2020 Disposals, Total Intangible Intangible Major Transaction significant Adjusted results amortisation impairment restructuring related legal and other results Turnover 9.1 9.1 (£bn) Operating 2.0 0.2 >0.1 0.5 0.6 (0.6) 2.7 profit (£bn) EPS 31.5 3.1 0.8 7.6 6.9 (12.1) 37.7
Slide 18: Pharmaceuticals
Pharmaceuticals Q1 2020 Sales Operating margin Sales All figures £m +6% CER -310bps CER New launches: Trelegy, Nucala, Juluca, +6% AER -290bps AER Dovato 4,396 29.8% COVID-19 demand in EU and US 4,158 26.9% Continued strong Benlysta performance 631 871 Impact of generic Advair 1,121 1,207 1,238 1,18
Slide 19: Vaccines
Vaccines Q1 2020 Sales Operating margin Sales All figures £m +19% CER +670bps CER +720bps AER Shingrix demand +19% AER 1,805 47.5% Meningitis growth DTPa-containing 1,522 647 Hepatitis inventory and CDC stockpile 357 40.3% Drag from travel vaccines divestment 209 225 858 614 Operating profit 941 912
Slide 20: Consumer Healthcare
Consumer Healthcare Q1 2020 Sales Operating margin Sales All figures £m +11% CER Inclusion of Pfizer portfolio +320bps CER 2,862 COVID-19 customer behaviour 26.8% 2,610 Power brands performance 733 662 23.8% Retailer shutdowns (e.g. China, India) 1,981 611 662 535 21.7% 439 766 351 371 622 306 363 O
Slide 21: Sales and Adjusted operating margins
Sales and Adjusted operating margins Q1 2020 Sales Adjusted operating margin All figures £m Q1 2019 sales at '19 rates 7,661 Q1 2019 operating margin 28.2% Pro forma sales at '19 rates 655 Pro forma impact on margin 0.2% 2019 sales at '19 rates (pro forma) 8,316 Q1 2019 pro forma margin 28.4% Pharma
Slide 22: Adjusted operating profit to net income
Adjusted operating profit to net income Continued delivery of financial efficiency Q1 19 Q1 20 £m £m Operating profit 2,163 2,675 Net finance expense (187) (187) Share of associates 57 9 Tax (400) (342) Tax rate 19.7% 13.7% Minorities (149) (282) Net income 1,484 1,873 22
Slide 23: Free cash flow of £0.5bn
Free cash flow of £0.5bn £m Key Drivers Q119 free cash flow 165 Lower CCL 2 Improved operating cashflow and Higher net operating cash** 289 favourable RAR, offset by working capital Lower net Capex* 64 Cash proceeds related to ofatumumab Lower restructuring payments 6 Other*** 5 Q120 free cash flow
Slide 24: 2020 guidance
2020 guidance Adjusted EPS – decline -1 to -4% CER Strong Q1 2020 performance • Growth driven by key marketed assets and new launches • COVID-19 driving additional demand reflecting customer behaviour and stocking patterns Risks to business performance for the remainder of year • Dynamic and uncerta
Slide 25: Staying focused on long term priorities
Staying focused on long term priorities While navigating COVID-19 crisis 2020 focus Innovation New GSK: a leading • Execution of launches • Continue to strengthen pipeline biopharma company with R&D focused on science of the – Progress immune system, genetics and pipeline advanced technologies Perfo
Slide 26: Appendix
Appendix
Slide 27: Our R&D pipeline
Innovation Our R&D pipeline 37 medicines and 15 vaccines Phase 1 Phase 1 Expansion/Phase 2 Pivotal/Registration 3858279* (CCL17 inhibitor) OA pain 3640254 (maturation inhibitor) HIV Benlysta + Rituxan SLE** Rx Vx 3745417 (STING agonist) cancer 3228836* (HBV ASO) HBV cabotegravir** LA + rilpivirine*
Slide 28: Upcoming milestones that will inform our progress
Innovation Upcoming milestones that will inform our progress 1H2020 2H 2020 1H 2021 2H 2021 1H 2022 Anticipated Nucala HES Nucala NP Benlysta + Rituxan SLE bintrafusp alfa BTC dostarlimab combo with CT 1L EC (RUBY) submission Zejula + dostarlimab 2L+ PROC Benlysta lupus nephritis dostarlimab dMMR
Slide 29: Changes in portfolio since Q4 2019
Innovation Changes in portfolio since Q4 2019 Changes to pipeline New to Phase I expansion/ New to Phase I New to Pivotal New to Registration Phase II Removed from Phase I Removed from Phase I Removed from Pivotal Removed from Registration expansion/ Phase II molibresib (GSK525762, BET inhibitor) ca