Gsk Plc · LSE:GSK
Gsk — Bernstein Pharmaceuticals Long View Conference 2011
14 slides from Gsk's conference presentation, May 5, 2011
Slide 1: Bernstein Pharmaceuticals Long View Conference
Bernstein Pharmaceuticals Long View Conference 5th May 2011 Ad Rawcliffe, SVP Finance North American Pharmaceuticals (Previously SVP Worldwide Business Development & R&D Finance)
Slide 2: GSK's R&D strategy is based on four linked elements
GSK’s R&D strategy is based on four linked elements Focus on the best Re-personalise R&D science Diversify through Focus on return on externalisation investment 2
Slide 3: Committed to improving returns in R&D
Committed to improving returns in R&D R&D returns over the last decade Our estimates for GSK’s Our goal is to improve this return have been disappointing1 late-stage portfolio2 by 25% via our R&D strategy 15% 15% 15% 10% 10% 10% IRR 5% 5% 5% 0% 0% 0% 1. McKinsey, Nature Reviews, Drug Discovery (Aug
Slide 4: Five levers to improve returns in pharma R&D
Five levers to improve returns in pharma R&D Shift R&D spend Increase Discovery2 Grow biopharm pipeline from early to late1 externalisation 60% 60 25 Option nased deals & external 50 20 Number of biopharm discovery engines % R&D late-stage spend 40 15 projects 50% 30 10 20 10 5 40% 0 0 2002 2010 200
Slide 5: Before you start you need to believe…….
Before you start you need to believe……. That we understand what That there is an went wrong with That we know what levers opportunity to discover pharmaceutical R&D in to pull to fix it valuable new medicines the last 2 decades 5
Slide 6: Before you start you need to believe…….
Before you start you need to believe……. That we understand what That there is an went wrong with That we know what levers opportunity to discover pharmaceutical R&D in to pull to fix it valuable new medicines the last 2 decades Unmet need Scientific growth Value 6
Slide 7: Before you start you need to believe…….
Before you start you need to believe……. That we understand what That there is an went wrong with That we know what levers opportunity to discover pharmaceutical R&D in to pull to fix it valuable new medicines the last 2 decades Unmet need Industrialization Scientific growth Infrastructure Value 7
Slide 8: Before you start you need to believe…….
Before you start you need to believe……. That we understand what That there is an went wrong with That we know what levers opportunity to discover pharmaceutical R&D in to pull to fix it valuable new medicines the last 2 decades Unmet need Industrialization Selection Scientific growth Infrastructure
Slide 9: Rigorous capital allocation drives selection
Rigorous capital allocation drives selection Drug Discovery* Drug Development* Discovery Performance Pharmaceuticals Vaccines Dermatology Units Discovery Investment Portfolio Investment Board Board Progression and Investment Decisions Business Plans & Funding Governance Bodies/Discussion Points Scie
Slide 10: Execution to drive returns
Execution to drive returns Obtained the highest number of FDA approvals (10) over the last 4 years whilst growing a sustainable late stage pipeline (c.30 assets) With a significantly reduced workforce 28% decrease since 2006 .. and major reduction in infrastructure 29% decrease in m2 since 2006 ….re
Slide 11: Late stage pipeline potential will play out over next 24 months
Late stage pipeline potential will play out over next 24 months 10 new NCE / vaccine Ph III starts 2010 / early 2011 ‘212 (MEK) ‘273 (Telethon) ‘436 (Braf) ‘786 (CCX282) ~ 30 in Phase III / ~ 15 assets with Phase III ‘968 (DMD) data by end 2012 registration Integrase / Integrase + Kivexa IPX066 LABA
Slide 12: GSK's R&D strategy is based on four linked elements
GSK’s R&D strategy is based on four linked elements Focus on the best Re-personalise R&D science Diversify through Focus on return on externalisation investment 12
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Slide 14: Methodology to estimate the IRR of GSK R&D's late-stage pipeline
Reference Slide: Methodology to estimate the IRR of GSK R&D’s late-stage pipeline Estimated Sales R&D Costs • Late-stage pipeline includes pharma NCEs and • R&D costs associated with the development of our current late-stage pipeline projects vaccines launched from 2007 onwards plus current are incl
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