2015 full year results 3 February 2016
Sir Andrew Witty CEO 2015 full year results 3 February 2016
Significant progress made in 2015 3 growth New product* Pipeline businesses contribution progressed £682m £591m Cx £446m £269m Rx Vx Q1 Q2 Q3 Q4 *New products defined as: Rx: Breo, Anoro, Incruse, Arnuity, Tanzeum, Nucala, Tivicay, Triumeq. Vx: Menveo, Bexsero, Shingrix (not yet launched) 3
Increasing contribution from new products New Pharma products* now make up 16.5% Now expect £6bn from 11 new products** of overall pharmaceutical sales up to 2 years earlier (2018 v 2020) £1,988m 16.5% 14.0% £624m £27m 2013 2014 2015 Q3 Q4 *New Pharma products defined as: Breo, Anoro, Incruse, Arnuity, Tanzeum, **New products defined as: Rx: Breo, Anoro, Incruse, Arnuity, Tanzeum, Nucala, Tivicay, 4 Nucala, Tivicay, Triumeq Triumeq. Vx: Menveo, Bexsero, Shingrix (not yet launched). 2014 proforma, with Menveo and Bexsero sales from March. 2013 sales do not include Menveo and Bexsero.
New commercial model directly supporting growth Fundamental changes giving us competitive advantage Digital Customer Sales force & HCPs capabilities engagement • Global incentive sales force compensation changes fully • 1.8 million unique visitors • #1 in customer trust* rolled out to GSK HCP portals, +21% in 2015 for both GSK Respiratory and Vaccines in the US • Stopped payments to HCPs • Typical global webinar reaches worldwide to speak on our behalf 4-7,000 HCPs with an average dwell • GSK Consumer Healthcare awarded time of 65-90mins Healthcare Vendor of the Year by CVS • Developing new digital and Pharmacy in the US real-time applications to • 90 global respiratory webinars by GSK improve delivery of Medical Experts already scheduled • Interactions via multi-channel with US information to HCPs for 2016 physicians up >25% in Dec’15 • • HCPs can now ‘click to chat’ with GSK Strengthened • 100% NPI launch on time for all key new medical experts in real time expertise & Rx products across all markets capabilities of GSK • 88% satisfaction scores from 2,300 • Consumer Healthcare supply: service medical organisation virtual detailing sessions in Japan levels of 96% OTIF (on time in full)** *Customer trust rankings as demonstrated in GSK annual customer value survey of over 4,000 customers 5 NPI = New Product Introduction **Legacy GSK brands
Significant momentum in the respiratory portfolio Breo upward trajectory in US market share ICS/LABA US market growth Breo US ICS/LABA market share of ~6% in 2015 8% Breo NRx share 7% Breo TRx share 6% Breo TRx volume now >35k weekly, 5% supported by: 4% • Asthma indication launched mid 2015 3% 2% • Improved formulary coverage: Commercial 79% and Medicare 1% Part D 72% favourable access 0% • Improved commercial execution including sales force support Source: IMS data to 22/01/16 6
Significant momentum in the respiratory portfolio Anoro and Incruse supporting growth Anoro + Incruse LAMA containing US market 35% US LAMA containing market share growth of 4.5% in 2015 Anoro + Incruse 30% NBRx 25% Anoro + Incruse TRx volume now >19k weekly, supported by: 20% Anoro + Incruse • Launch of Incruse in open triple NRx 15% in Q4 (Incruse + Breo) Anoro + 10% Incruse • Improved formulary coverage TRx Anoro Commercial 90% and 5% Medicare Part D 74%; Incruse Commercial 70% and Medicare 0% Part D 44% favourable access Source: IMS data to 22/01/16 7
Significant momentum in the respiratory portfolio Nucala provides opportunity for future growth Nucala First in class treatment for severe eosinophilic asthma - 53% reduction in exacerbations - Significant reduction in daily oral corticosteroid dose while maintaining control seen in trials - Dosing every 4 weeks, no weight adj. required Launched in the US Approved in EU Japan regulatory decision expected H1 2016 COPD filings expected in 2017 8
HIV growth acceleration, with pipeline to be further bolstered by BMS transactions US weekly TRx share since Tivicay launch HIV US market growth of 20% in vs competitors (STR+3 rd agent) 30% 2015 25% DTG TRx volume >19k weekly with 20% nearly 1 in 6 patients on a DTG regimen DTG total 15% The DTG portfolio launches have exceeded all analogues in TRx 10% performance; now rivalling the best HIV 5% launch of all time 0% Source: IMS data to 22/01/16 9 STR = single tablet regimen
Broad Vaccines portfolio driving growth, realising benefits from integration and ongoing investments Bexsero & Menveo Shingrix 90-97% efficacy against Proactive supply global sales +43%* shingles in two Phase III studies network upgrades enabled accelerated 100 delivery schedule of 90 Flu vaccines in Efficacy against shingles % 80 Q315 vs 2014 70 60 50 £275m Established three 40 global R&D centres £195m 30 in Rixensart, 20 Belgium; Siena, 10 Italy and Rockville, Maryland 0 50-59 yrs 60-69 yrs 70+ yrs 2014 2015 *Based on 2015 pro-forma (CER) for newly acquired meningitis portfolio 10
Consumer business on track to deliver 2020 targets 6% net sales growth CER* • Innovation** ~14% of net sales • Supported by share gains in key categories Integration synergies on track • Over 7,000 appointments • 54 site consolidations • Completion of required divestments 180 bps margin improvement CER* *Based on 2015 pro-forma 11 **Product introductions within the last three years on a rolling basis
Focused brand strategy and innovation fuelling growth Wellness Oral health Nutrition Skin health £3.0bn £1.9bn £0.7bn £0.5bn Consumption MAT growth: +13% +39% + >100% +16% +10% +10% +9% Gel delivered share Driven by innovation No. 1 doctor Double digit Double digit Nutrition loved by New branding and gains in 35 markets in US and supply recommended sales growth in growth in all 3 generations, trusted focus on expert where launched recovery allergy brand in 1 st key emerging regions by experts, engagement year of US launch markets delivered all time share high Source: Internally consolidated syndicate data incl. IRI, IMS and ACNielsen consumption MAT Dec 2014 to Nov 2015 12
Pipeline delivery: Focused on long term sustainable innovation Accelerate Discovery output Respiratory HIV/ Infectious Diseases Focus where science is innovative 13 % Immuno- IRR* Inflammation Oncology Balance of internal vs external Rare Diseases Vaccines Reduce fixed cost to drive ROI *Detailed IRR calculation methodology on slide 31 13
Pipeline delivery: 2016/17 key pipeline milestones Expect 4 regulatory decisions in ~40 2016/2017 assets at R&D Up to 10 event significant filings expected in 2016/2017 Up to 10 Ph III programme starts 80% in 2016/2017 have potential to Up to 20 be first in class Ph II programme starts in 2016/2017 14
GSK is well positioned to deliver growth in 2016 2016 core EPS expected to reach double digit growth CER 3 growth businesses Balanced geographies Cx US • Drive new product momentum 26% Int 34% 39% • Leverage new commercial model Rx Vx • Deliver the pipeline 59% 15% EU 27% 15
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