Slide 1: Pharmaceuticals business overview
Abbas Hussain Pharmaceuticals business overview 6 May 2015
Slide 2: Three commercial portfolios to drive revenue growth
Three commercial portfolios to drive revenue growth Pharmaceuticals HIV Vaccines Sales and marketing of our Sales organisation for ViiV* In-country sales, marketing pure pharma business and commercialisation of vaccines portfolio * In all markets excluding the 15 where ViiV has legal entities. 36
Slide 3: Successfully diversified our business to drive growth and manage risk
Successfully diversified our business to drive growth and manage risk Changed the shape of our business Built a natural hedge in our portfolio Total sales of pharmaceuticals & vaccines (% by geography) 2007 2014 25 markets HIV HIV selling 7% 8% US £100m or EM & Others US 31% more 24% 40% EM & 36% Ot
Slide 4: Positioning us to succeed in a tough environment
Positioning us to succeed in a tough environment Challenges Opportunities • Pricing • Demographics • Emerging Markets (EM) slowdown and • Respiratory access and pipeline FX devaluations • ViiV expansion • Broad vaccines portfolio • Sustainable R&D Lack of visibility Advair US generics timing and imp
Slide 5: Pharmaceuticals: Respiratory - Proactively managing the decline of Seretide/Advair
Pharmaceuticals: Respiratory Proactively managing the decline of Seretide/Advair Advair access in US stabilised and back to Implemented multiple strategies to help growth when combined with Breo Seretide compete effectively outside the US NBRx market share in US1 Europe: Seretide pricing initiatives
Slide 6: Pharmaceuticals: Respiratory - Strong US access for Breo and Anoro
Pharmaceuticals: Respiratory Strong US access for Breo and Anoro is driving uptake Significant gains made in access over the Weekly uptake data improving as Breo and last 12 months1 Anoro share gains continue2 8% March March Breo market share in US Access 2014 2015 6% NBRx Commercial 4% TRx 2% Breo
Slide 7: Pharmaceuticals: Respiratory - Ex-US markets have good access, Relvar launching well
Pharmaceuticals: Respiratory Ex-US markets have good access, Relvar launching well Competing well in key major markets... 45% Japan: new patient share ICS/LABA1 3.0% Europe: market share ICS/LABA2 40% 2.5% Relvar 35% 30% 2.0% Relvar Competitor A 25% 1.5% Competitor D 20% 15% Competitor C 1.0% 10% Co
Slide 8: Pharmaceuticals: Respiratory - Portfolio de-risked with balanced growth
Pharmaceuticals: Respiratory Portfolio de-risked with balanced growth as new products gain scale 2020 expect total respiratory sales to be at or above sales in 2015, whether or not there is US generic competition to Advair 90% of 2015 sales 90% of 2020 sales 4 9 products products Seretide/Advair Ava
Slide 9: Pharmaceuticals: Base Brands - Generating volume and cash
Pharmaceuticals: Base Brands* Generating volume and cash to support innovative brands Applying commercial expertise to late-lifecycle management and access Promote to Grow (60%): Drive volume post- Manage for Cash (40%): Rationalise tail patent expiry through low cost promotion products and allocate
Slide 10: HIV: Rapidly growing business, transforming the market
HIV Rapidly growing business, transforming the market 16,000 US TRx 85 weeks post-Tivicay launch2 4% 42% 14,000 Competitor #1 growth in 12,000 Q1 20141 growth in + Q1 20151 10,000 TRx Volume 8,000 5 6,000 Tivicay >90% markets 4,000 Competitor #2 2,000 of total sales1 2 0 Triumeq Wk1 Wk10 Wk19 Wk28 W
Slide 11: Vaccines: Balanced sources expected to drive growth from 2016-2020
Vaccines Balanced sources expected to drive growth from 2016-2020 1 2 3 Marketed Portfolio Meningitis Portfolio Pipeline • Driving uptake in • Driving top-line • Successfully unvaccinated synergies in Menveo launching populations (US & International) Shingrix • Sales synergies from • Accelerating up
Slide 12: Pipeline and productivity
Pipeline and productivity Strong future asset flow while restructuring drives margin Sustainable pipeline flow in existing and new OpEx programmes are delivering improved growth areas overall productivity • Breo (asthma US decision, SUMMIT COPD) Sales productivity (Rx+Vx+ViiV)1 (est. sales per sales
Slide 13: Portfolio approach at market level gives flexibility to deliver revenue growth
Portfolio approach at market level gives flexibility to deliver revenue growth Expected CAGR 2016-20* Vaccines Mid-to -high Long-term growth creation with a strong perpetuity value single digit* HIV Immediate growth driver with untapped potential Pharma (Respiratory) Low Maintain topline and reduce
Slide 14: 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 15: 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