Gsk Plc · LSE:GSK
Gsk — GlaxoSmithKline — Q1 2007 Earnings Presentation
39 slides from Gsk's earnings presentation, Apr 25, 2007
Slide 1: 1Q Results 2007 - Presentation to Analysts & Investors
PRIVILEGED & STRICTLY CONFIDENTIAL Full Year Results 2006 Presentation to Analysts & Investors 8th February 2007 1Q Results 2007 Presentation to Analysts & Investors 25th April 2007
Slide 2: Continuing strong financial performance
EPS +14% (CER) Continuing strong Effective cost control financial performance £1.8bn cash generated from operations 2 2
Slide 3: Energising sales of key products
Energising Broad Pharma portfolio drives growth despite generics sales of key Accelerating key growth drivers products Strong Consumer performance 3 3
Slide 4: Consumer Healthcare – building momentum
Consumer Healthcare – building momentum 10% 9% 1Q sales £786m +9% 8% Sales Growth for CHC 6% 6% 4% alli launch mid‘07 4% 3% 2% CNS acquisition 2% New launches 0% 2003 2004 2005 2006 1Q07 4 4 CER sales growth, as reported.
Slide 5: Launching next generation growth drivers
Filed Launched Launching 9 9 next generation 9 9 growth drivers 9 PDUFA Apr 29th 9 EU H2’07 9 PDUFA Aug 1st 5 5
Slide 6: Delivering substantial late stage pipeline
Progress on around half of the “31 major product opportunities” Delivering Altabax Arixtra ACS substantial Avandia + statin Cervarix late stage Globorix H5N1 pipeline ofatumumab pazopanib Promacta Requip 24hr Trexima Tykerb Volibris XP13512 Entereg OBD Positive news (study start / data / filing / ap
Slide 7: Maximising sales through lifecycle management
Coreg CR 2 launched in ‘07 Wellbutrin XR (EU) Maximising sales Trexima through 4 currently filed Lamictal XR Requip 14hr lifecycle Requip 24hr management Avandia + statin 2 due to file in ‘07 Avandamet XR Coreg CR +ACEi 2 in Phase III Avodart + α blocker 7 7
Slide 8: GSK: A growing presence in oncology
GSK: A growing presence in oncology Tykerb Oncology Cervarix seminar Promacta announced pazopanib June 18 - London Significant casopitant data at ASCO ofatumumab 5 assets MAGE-A3 >20 abstracts 3 oral presentations Hycamtin Early stage opportunities 8
Slide 9: The GSK Story: Q1 progress on all fronts
The GSK Story: Q1 progress on all fronts Financials strong and continued commitment to delivering solid growth Sales broad and dynamic portfolio with significant growth opportunities significant late stage pipeline R&D with fast reloadability 1
Slide 10: Julian Heslop, Chief Financial Officer
PRIVILEGED & STRICTLY CONFIDENTIAL Full Year Results 2006 Presentation to Analysts & Investors Julian Heslop 8th February 2007 Chief Financial Officer 25th April 2007
Slide 11: Q1 performance summary
Q1 performance summary 1Q 07 1Q 06 % Change £m £m £ CER Turnover 5,592 5,813 (4) 4 (1,234) (1,134) 9 14 Cost of goods 22.1% 19.5% (1,673) (1,823) (8) (1) SG&A 29.9% 31.4% (726) (753) (4) 2 R&D 13.0% 12.9% Other oper. income 207 71 2,166 2,174 - 11 Operating profit 38.7 % 37.4% 11 % in Italics are %
Slide 12: Q1 performance summary
Q1 performance summary 1Q 07 1Q 06 % Change £m £m £ CER Operating profit 2,166 2,174 - 11 Interest (38) (19) Profit before tax 2,143 2,170 (1) 10 Earnings per share 27.0p 26.5p 2 14 Tax rate 28.5% 29.5% 12
Slide 13: US dollar trends
US dollar trends 2006 2007 2.05 2.00 1.95 1.90 $/£ 1.85 1.80 1.75 1.70 1.65 1.60 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 13 Month end closing rates
Slide 14: Cash flow
Cash flow 1Q 07 1Q 06 £m £m Cash generated from operations 1,806 2,062 Taxation paid (256) (280) Capital: Core (312) (231) Product Rights (396) (36) Interest and other items 2 (55) Free cash flow 844 1,460 Dividends (671) (568) Purchase of own shares (575) (200) Employee share option exercises 255 1
Slide 15: Q1 Summary
Q1 Summary Sales Pharmaceutical +3% growth Consumer Healthcare +9% EPS +14% growth Cash returned to Q1 dividend 12p (Q1 ’06 11p) shareholders Share buyback £649 million (Q1 ‘06 £219 million) 15 Sales and EPS are CER % growth
Slide 16: David Stout, President, Pharmaceutical Operations
PRIVILEGED & STRICTLY CONFIDENTIAL Full Year Results 2006 Presentation to Analysts & Investors David Stout 8th February 2007 President, Pharmaceutical Operations 25th April 2007
Slide 17: Pharma Environment
Pharma Environment Challenging legislative environment Reward for innovation still possible Cancer, diabetes, obesity, lung disease and dementia are high priorities for all governments Vaccines/biologicals a good place to be Pharma industry reputation improving 17
Slide 18: Pharma Industry: Improving public perception
Pharma Industry: Improving public perception % 'Good job' 65 61 59 59 59 60 56 55 49 50 44 45 40 2000 2001 2002 2003 2004 2005 2006 Source: Harris US Interactive 2006 Do you think the pharma industry is generally doing a good or bad job of serving their consumers? 18
Slide 19: 1Q07 Sales by Region
1Q07 Sales by Region Total Pharma sales £4.8bn +3% Int’l £1.0bn +7% US £2.4bn Europe +3% £1.4bn +1% 19 Note: CER Growth Rates
Slide 20: 1Q07 Sales by Region
1Q07 Sales by Region Total Pharma sales £4.8bn +3% Int’l £1.0bn Underlying +7% US Business US £2.2bn £2.4bn Europe +3% +16% £1.4bn (excl. Zofran, Wellbutrin XL, Flonase) +1% 20 Note: CER Growth Rates
Slide 21: Key growth drivers
Key growth drivers 1Q07 Sales Advair £835m +11% Avandia £414m +19% Vaccines £368m +6% Lamictal £250m +17% Total Valtrex £224m +22% £2.5bn +15% Coreg* £217m +8% Requip £80m +50% Avodart £63m +47% Boniva** £32m >100 % CER growth rates *Coreg estimated underlying growth in Q1 was +25%. **Total 1Q07 sal
Slide 22: Seretide/Advair
Seretide/Advair 1Q07 sales £835 million +11% Int’l £82m TORCH Survival Study +14% – Published Feb ’07 in NEJM US – FDA Ad Com mtg May 1st Europe £459m £294m – FDA Action date August ’07 +12% +8% 22 Note: CER % growth
Slide 23: Advair US new prescriptions trends
Advair US new prescriptions trends Advair 4-week rolling average US Retail New Rx volume 175,000 2006 150,000 125,000 Seasonal upswing 100,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 23 Verispan VONA – US Asthma/COPD controller weekly NRx
Slide 24: Advair US new prescriptions trends
Advair US new prescriptions trends Advair 4-week rolling average US Retail New Rx volume 175,000 2006 +9% vs prior year 150,000 2007 125,000 Seasonal upswing 100,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 24 Verispan VONA – US Asthma/COPD controller weekly NRx (data through April 13, 2007)
Slide 25: 'Adoair' approved in Japan April 2007
‘Adoair’ approved in Japan April 2007 Japan’s 2006 Asthma and COPD controller market Adoair is only product in Japan targeting both inflammation & bronchoconstriction GSK’s share 17% Asthma deaths - priority for MoH COPD filed in Nov. ‘06 83% Over 11 million asthma and COPD sufferers – ~3.5 million
Slide 26: Avandia products
Avandia products 1Q07 sales £414 million +19% Int’l £63m +37% Europe £57m +12% US £294m +17% Note: CER % growth 26
Slide 27: Avandia products: US total prescriptions trends
Avandia products: US total prescriptions trends 4-week rolling average US retail TRx volume 270,000 +7% vs prior 250,000 year - - - impacted by supply disruption - - - 230,000 ADOPT 210,000 190,000 170,000 150,000 20 06 7 20 07 20 05 20 06 20 05 20 04 5 20 04 4 3 20 03 /2 006 /2 005 /2 004 /2 003 /2
Slide 28: Vaccines
Vaccines 1Q07 sales £368 million +6%* Product Sales – Infanrix/Pediarix £134m +15% Intern’l US – Hepatitis £113m +4% £114m +3% £82m +11% – Rotarix £14m >100% – Boostrix £13m +40% Europe – Other vaccines £94m -11% £172m +6% * Growth impacted by comparator quarter (1Q06 +44%) CER Growth Rates 28
Slide 29: 2007 new product opportunities
2007 new product opportunities H5N1 pandemic - - For POI - - - - New ACS indication - - 29
Slide 30: 2007 new product opportunities
2007 new product opportunities Filed in US -- EU & Int’l launch expected in 2H07 Phase III programme now underway in Japan Publication of ‘008 study expected in 2H07 Cervarix efficacy from ‘007 study over 5½ yrs presented at AACR AACR: American Association for Cancer Research 30
Slide 31: 2007 new product opportunities
2007 new product opportunities Filed in US -- EU & Int’l launch expected in 2H07 Phase III programme now underway in Japan Publication of ‘008 study expected in 2H07 Cervarix efficacy from ‘007 study over 5½ yrs presented at AACR ‘007 - Only HPV vaccine with data over 5 ½ yrs: 100% efficacy against
Slide 32: New hope for cancer patients
New hope for cancer patients Approved March 13th th New clinical data in 2Q07 Filed in Japan April ’07 Adjuvant studies underway “Tykerb is indicated in combination with capecitabine for the treatment of patients with advanced or metastatic breast cancer whose tumors overexpress HER2 and who have re
Slide 33: New hope for cancer patients
New hope for cancer patients Likelihood of Oncologists to Prescribe Tykerb for HER2 positive MBC (n=100) Definitely Probably 71% New clinical data in 2Q07 Filed in Japan April ’07 Might/might not Adjuvant studies underway Probably Would not Over 90% of Oncologists expect to prescribe Tykerb for HER2
Slide 34: Coreg CR off to a strong start
Coreg CR off to a strong start 14% Great response from Cardiologists Coreg CR launched March 22nd Coreg IR 86% £14m of launch stocking in Q1 Coreg New Rxs by Cardiologists week ended April 13th Verispan VONA – weekly TRx data 34
Slide 35: A brand new option for allergy patients
A brand new option for allergy patients FDA FDA Action Action date date April 29th April 29 th Broad efficacy For patients 2 years and older Efficacy against ocular symptoms An outstanding new device 35
Slide 36: Next generation migraine treatment
Next generation migraine treatment February 1 March 22 3Q ’07 Response FDA Accepted Expected submitted Response Launch to FDA 36
Slide 37: 2007: Further new product opportunities
2007: Further new product opportunities FDA approved for impetigo April ’07 Positive CHMP opinion March ’07 First EU approval in 1Q Launches throughout ‘07 - - In Europe - - Pre-pandemic vaccine filed in H5N1 Europe 1Q07; Ph III trials in US Approved in Japan April ‘07 Response to FDA approvable let
Slide 38: 2007 Outlook
2007 Outlook 38
Slide 39: GlaxoSmithKline
GlaxoSmithKline