Gsk Plc · LSE:GSK
Gsk — Investor Presentation (May 2015)
23 slides from Gsk's investor presentation, May 6, 2015
Slide 1: Vaccines business overview
Dr Moncef Slaoui Vaccines business overview 6 May 2015
Slide 2: The value of vaccination
The value of vaccination Widely recognised as one of the very best investments in healthcare Tremendous progress for global health… …but still underserved populations ~3m ~22m deaths infants still prevented missing basic annually vaccines Target populations are growing… …and major diseases remain wi
Slide 3: Vaccines is an attractive business
Vaccines is an attractive business #1 global company 2014 sales • Growing market: ~£17bn in 20141 • Few global players SPMSD • Large capital investment GSK ~27% pro forma • Complex manufacturing Sanofi • Importance of combinations/lifecycle management Novartis Vx (ex. Flu) • Intellectual property •
Slide 4: GSK Vaccines: a snapshot
GSK Vaccines: a snapshot ~£4.2 bn* >16,000 Marburg capex Amsterdam Laval people Rixensart since Dresden Ste-Foy Wavre Godallo 2005 Cambridge Moscow Hamilton Gembloux Philadelphia Siena/Rosia Limping Marietta St Amand Shanghai Rockville ~850m >2,000 14 mfg Nashik doses in Ankleshwar Hyderabad Shenzhe
Slide 5: Strong track record of growth
Strong track record of growth Supply constraints impacted 2014 growth (-1% CER) 4000 3500 CAGR 2006-2014 ~8% CER 3000 (ex Novartis) 2500 2000 1500 1000 500 0 2005 2014 US sales EU sales ROW sales Novartis Portfolio (ex DT) CAGR 2006-2014 uses 2005 as base year. 16
Slide 6: Broadest vaccines portfolio offering worldwide (pre-transaction)
Broadest vaccines portfolio offering worldwide (pre-transaction) Key immunisation segments Pediatric Diphtheria, tetanus, & acellular Pertussis (DTaP) DTaP hexa Inactivated Polio (IPV) Haemophilus influenzae type b (Hib) Meningitis ACWY Meningitis B Pneumococcal Measles,
Slide 7: Broadest vaccines portfolio offering worldwide (pre-transaction)
Broadest vaccines portfolio offering worldwide (pre-transaction) Key immunisation segments US Pediatric Diphtheria, tetanus, & acellular Pertussis (DTaP) DTaP hexa Inactivated Polio (IPV) Haemophilus influenzae type b (Hib) Meningitis ACWY Meningitis B Pneumococcal
Slide 8: Vaccines business
Vaccines business Keys to success GSK well-positioned Supply World class, some volume constraints >90% of portfolio with US/EU universal Recommendations recommendations Portfolio breadth by segment Strong ex-US, improving in US Geographic footprint 177 countries, global Rx benefits Price/Volume Best
Slide 9: Our strategic focus
Our strategic focus Reliable Focus on Bolster sustainable US approvals innovation supply and success pipeline Build broader Flawless talent pool execution 20
Slide 10: Our strategic focus
Our strategic focus Reliable Focus on Bolster sustainable US approvals innovation supply and success pipeline Build broader Flawless talent pool execution Novartis transaction accelerates strategy 21
Slide 11: Strong portfolio synergy post-transaction
Strong portfolio synergy post-transaction Key immunisation segments US Pediatric Diphtheria, tetanus, & acellular Pertussis (DTaP) DTaP hexa Inactivated Polio (IPV) Haemophilus influenzae type b (Hib) Meningitis ACWY Meningitis B Pneumococcal Measles, Mumps, Rub
Slide 12: Key focus areas for 2015-2016: Novartis integration
Key focus areas for 2015-2016 Novartis integration – well underway Commercial R&D: Manufacturing: Delivery of cost operations in accelerated and ongoing above synergies: countries almost portfolio review site, no disruption ~£400m by 2017 complete completed within sites Subject to “hold-separate” re
Slide 13: Vaccines global R&D centre in US
Vaccines global R&D centre in US Rockville, Maryland 24
Slide 14: Proactive upgrading of supply network
Key focus areas for 2015-2016 Proactive upgrading of supply network Designed to meet Some supply and exceed constraints Ensure regulatory impacting HepA sustainability for requirements: and Pa containing the long term quality and vaccines: current GMP 2014-2016 State-of-the-art pertussis mfg site 25
Slide 15: Key growth drivers
Key growth drivers Key near term drivers 2015-2016 Meningitis franchise, Flu QIV, Synflorix, Rotarix 26
Slide 16: Key growth drivers: new products 2017-2018
Key growth drivers New products 2017-2018 Expected launches: Shingrix (HZ/su), malaria, MMR US Late stage development: Group B Strep, RSV, MenABCWY Key near term drivers 2015-2016 Meningitis franchise, Flu QIV, Synflorix, Rotarix 27
Slide 17: Shingrix HZ(su): Significant opportunity to prevent herpes zoster
Shingrix HZ(su): Significant opportunity to prevent herpes zoster • Risk of shingles doubles every decade over age 50 • Non-live, recombinant, 2-dose, adjuvanted vaccine • Excellent efficacy across all age groups, ~97% • Acceptable safety and tolerability • Ongoing trials in 70+ and immuno-compromis
Slide 18: Key growth drivers: new segments 2019-2020 and beyond
Key growth drivers New segments 2019-2020 and beyond Pregnant women New products 2017-2018 Expected launches: Shingrix (HZ/su), malaria, MMR US Late stage development: Group B Strep, RSV, MenABCWY Key near term drivers 2015-2016 Meningitis franchise, Flu QIV, Synflorix, Rotarix 29
Slide 19: Key growth drivers: expected CAGR 2016-20
Key growth drivers Expected CAGR 2016-20* New segments 2019-2020 and beyond Pregnant women Mid-to-high single New products 2017-2018 digit sales Expected launches: Shingrix (HZ/su), malaria, MMR US growth* Late stage development: Group B Strep, RSV, MenABCWY Key near term drivers 2015-2016 Meningiti
Slide 20: Margin improvements
Margin improvements GSK Vx (35.4%) + NVS loss making ~22% OPM 2014 pro forma Improved leverage from sales growth (CoGS, SG&A and disciplined R&D investments) Transaction cost savings ~£400m by 2017 Maintain CapEx investments Overall vaccines margin 30%+ by 2020 All expectations and targets regarding
Slide 21: Positioned to be global leader for a very long time
Positioned to be global leader for a very long time Reliable Focus on Bolster sustainable US approvals innovation supply and success pipeline Build broader Flawless talent pool execution Novartis transaction accelerates strategy Strong prospects for revenue and profit growth 32 All expectations and
Slide 22: 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 23: Unaudited pro forma financial information
Unaudited pro forma financial information The unaudited pro forma financial information in this presentation has been prepared to illustrate the effect of (i) the disposal of the oncology assets, (ii) the Consumer Healthcare joint venture (i.e. the acquisition of the Novartis OTC Business), and (iii