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GSK — GlaxoSmithKline — Bernstein Pharmaceutical Emerging Markets Conference 2009

25 slides from GSK's conference presentation, May 6, 2009

  1. Slide 1: Fulfil growth potential of Emerging Markets

    6th May 2009 Bernstein Pharmaceutical Emerging Markets Conference, NYC Fulfil growth potential of Emerging Markets Abbas Hussain President, Emerging Markets, GSK

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  3. Slide 3: Emerging Markets are outwardly diverse…

    Emerging Markets are outwardly diverse… 3

  4. Slide 4: …but have a lot in common

    …but have a lot in common PAY OUT OF VOLATILE POCKET LARGE POPULATIONS BRAND DRIVEN DYNAMIC FAST WORKFORCES GROWING MULTICULTURAL 4

  5. Slide 5: Everything is possible in China. Nothing is easy.

    Everything is possible in China. Nothing is easy. Patience is key to success. The answer ‘yes’ is not necessarily an indication of agreement or confirmation. ‘You don’t understand China’ means disagreement. ‘Provisional regulations’ mean the rules can change at any time – even retroactively. ‘Basica

  6. Slide 6: These pharma markets are big and growing fast

    These pharma markets are big and growing fast Top 10 countries = 85% of Emerging Market sales Rank Market Sales Share of EM Market Region Growth China 1 £10.7bn 25% 27% Mexico 2 £4.9bn 11% 4% Turkey 3 £4.9bn 11% 10% Brazil 4 £4.8bn 11% 13% India 5 £3.7bn 8% 11% Russia 6 £2.7bn 6% 9% Venezuela 7 £1.7

  7. Slide 7: Emerging Markets will outgrow Developed Markets

    Emerging Markets will outgrow Developed Markets “IMS forecasts growth of 12-13% per year in countries including China, India, Brazil, Russia, Mexico, South Korea and Turkey, while mature markets are expected to grow only at single digit rates,” says Murray Aitkin of IMS. “Annual pharmaceutical sales

  8. Slide 8: GSK Emerging Markets Business

    GSK Emerging Markets Business 85 85 countries countries 9,600 9,600 sales sales reps reps CIS CHINA MENA MEXICO INDIA LATIN SSA AMERICA Emerging Markets 2008 sales £2.3bn (+12%) = 11% of GSK Pharma sales 8

  9. Slide 9: GSK Emerging Markets Business

    GSK Emerging Markets Business 85 85 countries countries ~9,600 ~9,600 sales sales reps reps ~11,000 CIS CHINA QuarterMENA 1 Update MEXICO INDIA 1Q09 sales £666m (+18%) LATIN SSA AMERICA Emerging Markets 2008 sales £2.3bn (+12%) = 11% of GSK Pharma sales 9

  10. Slide 10: 2008 Turnover by Region

    2008 Turnover by Region SSA China £145m £309m CIS £189m MENA £722m South Asia £239m £208m £478m Mexico Latina Source: GSK reported sales 10

  11. Slide 11: Key Products in GSK Emerging Markets Portfolio

    Key Products in GSK Emerging Markets Portfolio 250 200 2008 sales £m 150 100 50 0 Seroxat Amoxil Priorix Rotarix Ventolin Augmentin Seretide Zeffix Avandia Source: GSK reported sales Zinnat 11

  12. Slide 12: Pharmaceuticals: Operating Profit Margin

    Pharmaceuticals: Operating Profit Margin Q109 Operating Profit Margin (%) US 65.4 Europe 57.4 Emerging Markets 34.5 Asia Pacific/Japan 54.2 * Note: operating margin as reported in 1Q09 which excludes R&D and other unallocated pharmaceuticals costs 12

  13. Slide 13: 3 Key Components of EM Business

    3 Key Components of EM Business £2,400 £2.3bn £2,000 (1) Scale up our non-patented £1068m (+5%) brand business £1,600 £1,200 (2) Drive our patent-protected £760m brands £800 (+13%) £400 (3) Build and capture £462m the vaccines market (+32%) £0 2008 GSK Emerging Markets sales 13

  14. Slide 14: (1) Scale up our non patented brand business

    (1) Scale up our non patented brand business Bolt on Acquisitions EM/AP Egypt Pakistan Mar 09 Oct 08 Dec 08 Licensing Jul 08 14

  15. Slide 15: (1) Scale up our non patented brand business

    (1) Scale up our non patented brand business 60 additional molecules sources identified 175 product filings and 10 product launches in 2009 Other Respiratory 10% CVS 5% 24% Diabetes 10% AI 13% CNS Oncology 22% 16% 15

  16. Slide 16: Therapy areas growing at or above 18% per annum

    Source : Rapier database MAT 06/08. Total Market Therapy Area Sales in £ M Example: MENA 0 50 100 150 200 250 300 350 400 450 500 C9 Renin-Angioten Sys Agent 21% A10 Drugs Used In Therapy areas growing at or above 18% per annum among the top 20 therapy areas. Diabetes 28% R3 Anti-Asthma & Copd Prod

  17. Slide 17: GSK now in more of top therapy areas

    Example: MENA GSK now in 9 of 10 top TAs 500 21% Total Market Therapy Area Sales in £ M 450 400 28% 25% Acquisitions 350 increase market 300 18% share by estimated 250 38% 18% 23% Growth % in 200 1 share point in CAGR (3yrs) 150 22% 28% 2009 (from 8.3%) 35% 100 50 0 C9 Renin-Angioten L1 Antineoplast

  18. Slide 18: (2) Drive our patent-protected brands

    (2) Drive our patent-protected brands Our current portfolio 18

  19. Slide 19: (2) Drive our patent-protected brands

    (2) Drive our patent-protected brands Increase sales force …and give them more products to sell Recent/Planned Launches Increased salesforce in Launches in next 2-3 years 14 Recent launches China (+25%) and Russia (+12%) in 2008; more in 2009 12 Increases in Brazil, India, Turkey and others in 2009

  20. Slide 20: (3) Build and capture the vaccines market

    (3) Build and capture the vaccines market GSK has more than ¼ of the market …and is growing faster than the market £462m (+32%) GSK vaccines 2008 ~28% GSK £1.6bn (+25%) EM vaccines market 2008 20

  21. Slide 21: (3) Build and capture the vaccines market

    (3) Build and capture the vaccines market Growing government attention to public health agenda Large birth cohorts for paediatric vaccines New products – Rotarix – Cervarix – Synflorix New geographies 21

  22. Slide 22: Improving access to medicines

    Improving access to medicines Harvard speech: Big Pharma as a catalyst for change – More flexible approach to IP in LDCs – Reduce prices for our patented medicines in LDCs – Open up our Tres Cantos research facility – Reinvest 20% of the profit we make in LDCs Recent progress – Price reduction for 1

  23. Slide 23: More medicines of value to more people who need them

    More medicines of value to more people who need them Improve access Cancers to GSK medicines • build public markets Heart disease • optimise pricing • innovative COPD partnerships Diabetes Asthma Diarrhoeal Disease, Malaria 23

  24. Slide 24: More medicines of value to more people who need them

    More medicines of value to more people who need them Cancer HAVE HAVE Salesforce R&D pipeline Coronary heart disease expansion Asthma APJEM R&D HAVE HAVE LESS LESS Acquisitions and in-licensing Enter Diabetes COPD new markets LDC pricing Infectious diseases Public/private Diarrhoea partnerships HAVE

  25. Slide 25: GlaxoSmithKline

    GlaxoSmithKline

GlaxoSmithKline — Bernstein Pharmaceutical Emerging Markets Conference 2009 on 6ix