On April 27, 2022 GlaxoSmithKline reported strong Q1 2022 sales of £9.8 billion, +32% AER, +32% CER; Total EPS 35.9p +67% AER, +66% CER and Adjusted EPS 32.8p +43% AER, +43% CER (Presentation, GlaxoSmithKline, APR 27, 2022, View Source [SID1234613080]).
Strong sales growth across Biopharma and Consumer Healthcare
• Biopharma: £7.1 billion +40% AER, +40% CER;+14% AER, +15% CER excluding COVID-19 solutions
– Specialty Medicines £3.1 billion +98% AER, +97% CER; HIV +15% AER, +14% CER;
Oncology +15% AER, +15% CER; Immuno-inflammation, respiratory and other +18% AER, +18% CER;
COVID-19 solutions (Xevudy) sales £1.3 billion
– Vaccines £1.7 billion +36% AER, +36% CER; Shingrix £698 million >100% AER, >100% CER
– General Medicines £2.3 billion +2% AER, +3% CER
• Consumer Healthcare £2.6 billion +14% AER, +14% CER
• Sales growth also benefited from favourable comparison to Q1 2021
Continued R&D delivery and strengthening of pipeline
• US FDA regulatory approvals: Cabenuva treatment of virologically supressed adolescents living with HIV;
Triumeq dispersible single tablet regimen for treatment of children with HIV
• US FDA regulatory submission acceptance of daprodustat for anaemia of chronic kidney disease (PDUFA
action date 1 February 2023)
• Benlysta approved in China for adults with active lupus nephritis
• EU regulatory submission acceptance for Sanofi-GSK COVID-19 vaccine (Vidprevtyn) and Canadian
regulatory approval for Medicago-GSK COVID-19 vaccine (Covifenz)
• Proposed acquisition of Sierra Oncology Inc. strengthens late-stage specialty pipeline. Momelotinib has
potential to address significant unmet medical need of myelofibrosis patients with anaemia
• Multiple pipeline catalysts in next nine months, including phase III data read outs for the RSV Older Adults
and meningitis (MenABCWY) vaccine candidates, Blenrep, Jemperli and otilimab, and phase IIb data for
bepirovirsen
Cost discipline supports delivery of improved operating margin and Adjusted EPS of 32.8p
• Total Group operating margin 28.6%. Total EPS 35.9p +67% AER, +66% CER
• Adjusted Group operating margin 26.7%. Adjusted EPS 32.8p +43% AER, +43% CER. This included a
contribution to growth from COVID-19 solutions of approximately +15% AER, +15% CER for Q1 2022
• Q1 2022 cash generated from operations £2.8 billion. Q1 2022 free cash flow £1.7 billion
On track to demerge and list Haleon, a new global leader in consumer healthcare, in July 2022
• New growth outlooks set out in Q1 2022, for annual organic revenue growth of 4-6% and sustainable
moderate expansion of adjusted operating margin over medium term at CER
Reconfirming 2022 guidance
• GSK expected to deliver growth in 2022 sales of between 5% to 7% at CER and growth in 2022 Adjusted
operating profit of between 12% to 14% at CER
• 2022 guidance excludes any contribution from COVID-19 solutions
• Dividend of 14p declared for Q1 2022
Emma Walmsley, Chief Executive Officer, GSK:
"We have delivered strong first quarter results in this landmark year for GSK, as we separate Consumer
Healthcare and start a new period of sustained growth. Our results reflect further good momentum across
specialty medicines and vaccines, including the return to strong sales growth for Shingrix and continuing
pipeline progress. We also continue to see very good momentum in Consumer Healthcare, demonstrating
strong potential of this business ahead of its proposed demerger in July, to become Haleon."
The Total results are presented in summary on page 2 and under ‘Financial performance’ on page 7 and Adjusted results reconciliations are presented on page 15. Adjusted results are
a non-IFRS measure that may be considered in addition to, but not as a substitute for, or superior to, information presented in accordance with IFRS. Adjusted results are defined on
page 20 and £% or AER% growth, CER% growth, free cash flow and other non-IFRS measures are defined on page 42. GSK provides guidance on an Adjusted results basis only, for
the reasons set out on page 20. All expectations, guidance and targets regarding future performance and dividend payments should be read together with ‘Guidance, assumptions and
cautionary statements’ on page 43.
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 2
Q1 2022 results
Q1 2022
£m
Growth
£%
Growth
CER%
Turnover 9,780 32 32
Total operating profit 2,801 65 65
Total earnings per share 35.9p 67 66
Adjusted operating profit 2,613 39 39
Adjusted earnings per share 32.8p 43 43
Cash generated from operations 2,755 >100
Free cash flow 1,650 >100
2022 guidance
We reconfirm our guidance for new GSK in 2022, as set out below. This guidance is provided at CER and excludes the
commercial benefit of COVID-19 solutions.
In 2022, we expect to continue to deliver on our strategic priorities. We plan to increase targeted investment in R&D, to
build on and invest behind our top-line momentum for key growth drivers and to deliver the demerger of our Consumer
Healthcare business in July 2022. Assuming global economies and healthcare systems approach normality as the year
progresses, we expect sales of Specialty Medicines to grow approximately 10% CER and sales of General Medicines to
show a slight decrease, primarily reflecting increased genericisation of established Respiratory medicines. Vaccines sales
are expected to grow at a low-teens percentage at CER for the year. However, as noted at the time of announcing full-year
2021 results, we anticipated governments’ prioritisation of COVID-19 vaccination programmes and ongoing measures to
contain the pandemic would result in some continued disruption to adult immunisations. In the first-quarter 2022 Shingrix
demonstrated strong demand recovery, particularly in the US, as well as channel inventory build and the benefit of a
favourable comparator to Q1 2021. Despite the potential for short-term pandemic disruption, we continue to expect strong
double-digit growth and record annual sales for Shingrix in 2022 based on strong demand in existing markets and
continued geographical expansion.
Reflecting these factors and our first-quarter 2022 results, we reconfirm our full-year 2022 guidance for new GSK of sales
growth between 5% to 7% CER and Adjusted operating profit growth between 12% to 14% CER compared to 2021. The
guidance includes the future benefit in royalty income from the settlement and license agreement with Gilead Sciences, Inc.
(Gilead) announced on 1 February 2022.
Medium term outlooks were provided for Consumer Healthcare at a Capital Markets Day on 28 February 2022. Until such
time as the formal criteria for treating Consumer Healthcare as a ‘Discontinued operation’ have been satisfied (currently
expected in Q2 2022), GSK will continue to present the Consumer Healthcare business within ‘Continuing operations’ and
will consolidate the business for reporting purposes until the demerger has completed.
Dividend policies and expected pay-out ratios are unchanged for new GSK and new Consumer Healthcare (subject to
new Consumer Healthcare board approval). The future dividend policies and guidance in relation to the expected dividend
pay-out in 2022 across both new GSK and new Consumer Healthcare are provided on page 19.
2022 COVID-19 solutions expectations
In 2022, based on known binding agreements with governments, we expect that COVID-19 solutions will contribute a
similar sales level to 2021, but at a substantially reduced profit contribution due to the increased proportion of lower margin
Xevudy sales. We expect this to reduce the new GSK Adjusted Operating profit growth (including COVID-19 solutions in
both years) by between 5% to 7%. The overwhelming majority of expected COVID-19 solutions sales were achieved in the
first quarter this year. In April 2022, the US FDA updated Xevudy’s authorisation to reflect the increase in COVID-19 cases
caused by the Omicron BA.2 sub-variant and as a result, Xevudy is no longer authorised to treat COVID-19 in any US
region. However, we will continue to discuss future opportunities to support governments, healthcare systems, and patients
whereby our COVID-19 solutions can address the emergence of any new COVID-19 variant of concern.
All expectations, guidance and targets regarding future performance and dividend payments should be read together with
‘Guidance, assumptions and cautionary statements’ on page 43. If exchange rates were to hold at the closing rates on
31 March 2022 ($1.31/£1, €1.18/£1 and Yen 160/£1) for the rest of 2022, the estimated positive impact on 2022 Sterling
turnover growth for new GSK would be 2% and if exchange gains or losses were recognised at the same level as in 2021,
the estimated positive impact on 2022 Sterling Adjusted Operating Profit growth for new GSK would be 3%.
Results presentation
A webcast of the quarterly results presentation hosted by Emma Walmsley, GSK CEO, will be held at 12pm BST on
27 April 2022. Presentation materials will be published on www.gsk.com prior to the webcast and a transcript of the
webcast will be published subsequently.
Information available on GSK’s website does not form part of, and is not incorporated by reference into, this Results
Announcement.
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 3
Operating performance – Q1 2022
Turnover
Q1 2022
£m
Growth
£%
Growth
CER%
Specialty Medicines 3,135 98 97
Vaccines 1,669 36 36
General Medicines 2,343 2 3
Commercial Operations 7,147 40 40
Consumer Healthcare 2,633 14 14
Group turnover 9,780 32 32
Total turnover in the quarter was £9,780 million, up 32% AER, 32% CER, reflecting a strong performance in
Commercial Operations in the three product groups and Consumer Healthcare. Sales of Xevudy were
£1,307 million and contributed 25 percentage points of growth in the quarter to Commercial Operations.
Specialty Medicines included the positive impact of international tender phasing, Vaccines benefited from
Shingrix post-pandemic recovery and retail buy-in in the US and General Medicines reflected growth from
Trelegy and recovery of the antibiotics market.
Specialty Medicines turnover was £3,135 million, up 98% AER, 97% CER, driven by consistent growth in all
therapy areas including sales of Xevudy. Sales growth was up 16% AER, 15% CER excluding Xevudy.
Vaccines turnover grew 36% AER, 36% CER to £1,669 million, driven primarily by Shingrix in the US and
Europe reflecting strong performance and the benefit of a favourable comparator in Q1 2021 when sales were
impacted by COVID-19 related disruptions in several markets and lower Centre for Disease Control (CDC)
purchases.
General Medicines turnover was £2,343 million, up 2% AER, 3% CER, with growth from Trelegy in all regions,
recovery of the antibiotics market and the benefit of a favourable prior period returns and rebates (RAR)
adjustment, offsetting the impact of generic competition in US, Europe and Japan.
Consumer Healthcare grew 14% AER, 14% CER to £2,633 million. Total sales grew 15% AER, 16% CER,
excluding the impact of brands divested, with strong growth across all categories.
Operating profit
Total operating profit was £2,801 million compared with £1,693 million in Q1 2021. This included £924 million
upfront settlement income from Gilead, increased profits on turnover growth of 32% at CER, partly offset by
higher remeasurement charges for contingent consideration liabilities and lower profits on disposals. Adjusted
operating profit was £2,613 million, 39% higher than Q1 2021 at AER and at CER. The Adjusted operating
margin of 26.7% was 1.4 percentage points higher at AER and 1.3 percentage points higher on a CER basis
than in Q1 2021. The benefit from COVID-19 solutions sales (Xevudy) contributed approximately 11% AER,
11% CER to Adjusted Operating profit growth.
Earnings per share
Total EPS was 35.9p compared with 21.5p in Q1 2021. This primarily reflected leverage from significant sales
growth during the quarter, with the upfront income of £924 million from the settlement with Gilead partly offset
by an increase in finance costs.
Adjusted EPS was 32.8p compared with 22.9p in Q1 2021, up 43% at AER, 43% CER, on a 39% CER
increase in Adjusted operating profit primarily reflecting sales of Specialty Medicines and Vaccines, including
COVID-19 solutions sales, tight cost control and a lower effective tax rate. These were partly offset by higher
supply chain costs, increased R&D investment, favourable legal settlements in Q1 2021 and higher interest
costs. The contribution to growth from COVID-19 solutions was approximately 15% at AER, 15% at CER.
Cash flow
The cash generated from operations for the quarter was £2,755 million (Q1 2021: £486 million). The increase
primarily reflected a significant increase in operating profit including the upfront income from the settlement
with Gilead, favourable timing of collections and profit share payments for Xevudy sales and a lower seasonal
increase in inventory.
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 4
Q1 2022 pipeline highlights (since 9 February 2022)
Medicine/vaccine
Trial (indication,
presentation) Event
Regulatory approvals
or other regulatory
action
Cabenuva FLAIR (HIV, optional oral
lead-in)
Regulatory approval (US)
Cabenuva MOCHA (HIV, adolescent) Regulatory approval (US)
Triumeq HIV, paediatric, dispersible
tablet
Regulatory approval (US)
Benlysta BLISS-LN (lupus nephritis,
intravenous)
Regulatory approval (China)
Nucala Severe eosinophilic asthma,
40 mg prefilled syringe for
6-11 year olds
Positive CHMP opinion (EU)
Covifenz (Medicago) COVID-19 Regulatory approval (CA)
Regulatory
submissions or
acceptances
daprodustat ASCEND (anaemia of chronic
kidney disease)
Regulatory filing acceptance
(US, EU)
COVID-19 vaccine candidate
(Sanofi)
COVID-19 Regulatory submission (EU)
Phase III data readouts
or other significant
events
RSV maternal vaccine
candidate
GRACE (RSV, maternal) Stopped enrolment and
vaccination
COVID-19 vaccine candidate
(Sanofi)
COVID-19 Positive phase III data
Anticipated news flow
Timing Medicine/vaccine
Trial (indication,
presentation) Event
H1 2022 bepirovirsen B-Clear (Hepatitis B virus) Phase IIb data readout
RSV older adults vaccine
candidate
RSV, older adults Phase III data readout
COVID-19 vaccine candidate
(Sanofi)
COVID-19 Regulatory submission (US)
COVID-19 vaccine candidate
(SK Bioscience)
COVID-19 Phase III data readout
COVID-19 vaccine candidate
(SK Bioscience)
COVID-19 Regulatory submission (EU)
H2 2022 otilimab contRAst programme
(rheumatoid arthritis)
Phase III data readout
Blenrep DREAMM-3 (3L+ multiple
myeloma)
Phase III data readout
Blenrep DREAMM-3 (3L+ MM) Regulatory submission (US,
EU)
Jemperli RUBY (1L endometrial
cancer)
Phase III data readout
(interim analysis)
gepotidacin EAGLE (uncomplicated
urinary tract infection)
Phase III data readout
(interim analysis)
MenABCWY (gen 1) vaccine
candidate
MenABCWY Phase III data readout
RSV older adults vaccine
candidate
RSV, older adults Regulatory submission (US)
Priorix Measles-mumps-rubella Regulatory decision (US)
Menveo Invasive meningococcal
disease, liquid formulation
Regulatory decision (US)
Rotarix Rotavirus, liquid formulation Regulatory decision (US)
COVID-19 vaccine candidate
(SK Bioscience)
COVID-19 Regulatory decision (EU)
COVID-19 vaccine candidate
(Sanofi)
COVID-19 Regulatory decision (US)
Covifenz (Medicago) COVID-19 Regulatory submission (US)
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 5
Q1 2022 pipeline highlights continued (since 9 February 2022)
Timing Medicine/vaccine
Trial (indication,
presentation) Event
2023 otilimab contRAst programme
(rheumatoid arthritis)
Regulatory submission (US,
EU)
daprodustat ASCEND (anaemia of chronic
kidney disease)
Regulatory decision (US,
EU)
linerixibat GLISTEN (cholestatic pruritus
in primary biliary cholangitis)
Phase III data readout
Blenrep DREAMM-3 (3L+ MM) Regulatory decision (US,
EU)
Blenrep DREAMM-8 (2L+ MM) Phase III data readout
Blenrep DREAMM-8 (2L+ MM) Regulatory submission (US,
EU)
Blenrep DREAMM-7 (2L+ MM) Phase III data readout
Blenrep DREAMM-7 (2L+ MM) Regulatory submission (US,
EU)
Jemperli RUBY (1L endometrial
cancer)
Regulatory submission (US,
EU)
letetresgene-autoleucel IGNYTE-ESO (2L+ synovial
sarcoma)
Phase II data readout
RSV older adults vaccine
candidate
RSV, older adults Regulatory decision (US)
MenABCWY (gen 1) vaccine
candidate
MenABCWY Regulatory submission (US)
Malaria (fractional dose)
vaccine
Malaria Phase II data readout
Covifenz (Medicago) COVID-19 Regulatory decision (US)
Refer to pages 34 to 41 for further details on several key medicines and vaccines in development by therapy area.
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 6
Contents Page
Q1 2022 R&D pipeline highlights 4
Financial performance 7
Commercial Operations turnover – three months ended 31 March 2022 8
Consumer Healthcare turnover – three months ended 31 March 2022 11
Cash generation 18
Returns to shareholders 19
Total and Adjusted results 20
Income statement – three months ended 31 March 2022 22
Statement of comprehensive income 23
Balance sheet 26
Statement of changes in equity 27
Cash flow statement – three months ended 31 March 2022 28
Segment information 29
Legal matters 30
Additional information 31
Reconciliation of cash flow to movements in net debt 33
Net debt analysis 33
Free cash flow reconciliation 33
R&D commentary 34
Reporting definitions 42
Guidance, assumptions and cautionary statements 43
Independent review report 44
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Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 7
Financial performance – Q1 2022
Total results
The Total results for the Group are set out below.
Q1 2022
£m
Q1 2021
£m
Growth
£%
Growth
CER%
Turnover 9,780 7,418 32 32
Cost of sales (3,690) (2,480) 49 49
Gross profit 6,090 4,938 23 24
Selling, general and administration (2,844) (2,427) 17 18
Research and development (1,167) (1,118) 4 4
Royalty income 139 91 53 53
Other operating income 583 209
Operating profit 2,801 1,693 65 65
Finance income 10 10
Finance expense (212) (201)
Share of after tax (losses)/profits of associates
and joint ventures (1) 16
Profit before taxation 2,598 1,518 71 71
Taxation (431) (258)
Tax rate % 16.6% 17.0%
Profit after taxation 2,167 1,260 72 72
Profit attributable to non-controlling interests 365 187
Profit attributable to shareholders 1,802 1,073 68 67
2,167 1,260 72 72
Earnings per share 35.9p 21.5p 67 66
Adjusted results
The Adjusted results for the Group are set out below. Reconciliations between Total results and Adjusted results for
Q1 2022 and Q1 2021 are set out on page 15. Definition of the Adjusted results are set out on page 20.
Q1 2022
£m
% of
turnover
Growth
£%
Growth
CER%
Turnover 9,780 100 32 32
Cost of sales (3,471) (35.5) 55 55
Selling, general and administration (2,681) (27.4) 16 17
Research and development (1,154) (11.8) 7 7
Royalty income 139 1.4 53 53
Adjusted operating profit 2,613 26.7 39 39
Adjusted profit before tax 2,410 41 41
Adjusted profit after tax 1,979 42 43
Adjusted profit attributable to shareholders 1,646 44 44
Adjusted earnings per share 32.8p 43 43
Operating profit by segment
Q1 2022
£m
% of
turnover
Growth
£%
Growth
CER%
Commercial Operations 3,121 43.7 27 27
Research and Development (1,095) 6 6
Consumer Healthcare 650 24.7 21 26
Segment profit 2,676 27.4 37 38
Corporate & other unallocated costs (63)
Adjusted operating profit 2,613 26.7 39 39
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 8
Turnover
Commercial Operations
Q1 2022
£m
Growth
£%
Growth
CER%
HIV 1,181 15 14
Oncology 127 15 15
Immuno-inflammation, respiratory and other 520 18 18
Pandemic 1,307 – –
Specialty Medicines 3,135 98 97
Meningitis 212 12 12
Influenza 18 – –
Shingles 698 >100 >100
Established Vaccines 741 8 8
Pandemic Vaccines – – –
Vaccines 1,669 36 36
Respiratory 1,535 3 3
Other General Medicines 808 – 3
General Medicines 2,343 2 3
Commercial Operations 7,147 40 40
US 3,586 62 57
Europe 1,660 32 36
International 1,901 17 20
Commercial Operations by region 7,147 40 40
Total turnover in the quarter was £7,147 million, up 40% AER, 40% CER, reflecting strong performance in all
three product groups. Specialty Medicines included the positive impact of international tender phasing, sales of
Xevudy were £1,307 million and contributed 25 percentage points of growth in the quarter. Vaccines benefited
from Shingrix post pandemic recovery and retail buy-in in the US. General Medicines reflects recovery of the
antibiotics market as well as the benefit of a favourable prior period RAR adjustment.
Specialty Medicines
Specialty Medicines sales in the quarter were £3,135 million, up 98% AER, 97% CER, driven by consistent
growth in all therapy areas including sales of Xevudy. Sales growth was up 16% AER, 15% CER excluding
Xevudy.
HIV
HIV sales were £1,181 million with growth of 15% AER, 14% CER in the quarter. Growth was driven by new
HIV products Dovato, Cabenuva, Rukobia, Juluca and Apretude and phasing. Phasing contributed
approximately two thirds of the growth, driven by Tivicay International tenders, US customer ordering patterns
and US channel inventory movement.
New HIV products delivered sales of £446 million up 70% AER, 69% CER, representing 38% of the total
HIV portfolio. Sales of the oral two drug regimens Dovato and Juluca were £257 million and £133 million
respectively with combined growth of 54% AER, 53% CER. Cabenuva, the first long acting injectable,
recorded quarterly sales of £38 million. Apretude delivered sales of £2 million.
Oncology
Oncology sales in the quarter were £127 million, up 15% AER, 15% CER. Zejula sales of £98 million, up
11% AER, 11% CER, continue to be adversely impacted by diagnosis rates, particularly in the US. Sales of
Blenrep, grew 19% AER, 19% CER to £25 million in the quarter.
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 9
Immuno-inflammation, Respiratory and Other
Immuno-inflammation, Respiratory and Other sales were £520 million up 18% AER, 18% CER. Benlysta
sales were £215 million, up 21% AER, 18% CER with growth in all regions, including International sales of
£26 million up 53% AER, 53% CER. Nucala sales were £295 million, up 16% AER, 16% CER including US
sales of £177 million up 18% AER, 15% CER on continued strong demand and additional indications approval
and launch. International Nucala sales were £53 million up 26% AER, 31% CER.
Pandemic
Sales of Xevudy were £1,307 million, with no sales in Q1 last year given launch in Q2 2021. Sales were
delivered in all regions, comprising US £770 million, Europe £311 million and International £226 million.
Vaccines
Vaccines turnover grew 36% AER, 36% CER to £1,669 million, driven primarily by Shingrix in the US and
Europe reflecting strong performance and the benefit of a favourable comparator to Q1 2021 when sales were
impacted by COVID-19 related disruptions in several markets and lower CDC purchases.
Meningitis
Meningitis vaccines sales grew 12% AER, 12% CER% to £212 million mainly driven by Bexsero (22% AER,
23% CER to £163 million) reflecting higher CDC purchasing in the US.
Shingles
Shingrix grew >100% AER, >100 CER% to £698 million, primarily due to channel inventory build-up and
demand recovery in the US and higher demand in Germany. Launch markets also contributed to increased
sales reflecting continued geographic expansion.
Established Vaccines
Established Vaccines grew 8% AER, 8% CER to £741 million mainly as a result of higher CDC purchases of
Infanrix/Pediarix and Hepatitis vaccines, US demand and share growth for Boostrix, partially offset by lower
Synflorix, Cervarix and MMRV sales in International.
General Medicines
General Medicines sales in the quarter were £2,343 million, up 2% AER, 3% CER, with growth from Trelegy
in all regions and the benefit of a favourable prior period RAR adjustment, offsetting the impact of generic
competition in US, Europe and Japan.
Respiratory
Respiratory sales were £1,535 million, up 3% AER, 3% CER. Trelegy sales were £340 million, up 37% AER,
35% CER with strong growth in all regions. Advair/Seretide sales of £302 million were down 14% AER,
14% CER on US and Europe generic competition, partially offset by growth in International on targeted
promotion.
Other General Medicines
Other General Medicines sales were £808 million, flat at AER, up 3% CER. Augmentin sales were
£129 million, up 42% AER, 51% CER reflecting rebound of the antibiotic market post pandemic in the
International and Europe regions and in the US, a favourable prior period RAR adjustment was reflected.
This offsets ongoing impact of generic competition and approximately two percentage points impact from the
divestment of GSK’s cephalosporin products in Q4 2021.
By Region
US
In the US, sales were £3,586 million, up 62% AER, 57% CER, including Xevudy sales of £770 million
contributing 34 percentage points of growth. HIV sales of £697 million up 17% AER, 13% CER were driven by
growth of new HIV products, customer ordering patterns and lower channel inventory burn. New HIV products
delivered sales of £285 million up 72% AER, 66% CER, driven by Dovato and Cabenuva. Nucala and Benlysta
both continued to grow double-digits despite some year-end wholesaler destocking, while Oncology growth
continued to be impacted by diagnosis rates.
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 10
Vaccine sales were £892 million, up 77% AER, 71% CER. Growth was driven by Shingrix reflecting demand
recovery and retail buy-in ahead of a price increase. Meningitis, Hepatitis, Infanrix/Pediarix and Boostrix sales
all grew in the quarter reflecting CDC purchasing patterns and demand recovery. General Medicines sales
were £811 million up 7% AER, 4% CER, benefiting from a favourable prior period RAR adjustment. Trelegy
sales continued strong performance on growth of the single inhaler triple therapy market and demand.
Europe
In Europe, sales were £1,660 million, up 32% AER, 36% CER, including Xevudy sales of £311 million
contributing 25 percentage points of growth. HIV sales were £299 million up 4% AER, 8% CER driven by
Dovato. Strong double-digit growth continued in the quarter on Benlysta, Nucala and Oncology assets.
Vaccine sales were £409 million, up 33% AER, 38% CER. Growth was driven by Shingrix sales of
£160 million, up >100% AER, >100% CER on strong demand in Germany post pandemic and channel
re-stocking. General Medicines sales were £503 million down 7% AER, 4% CER, with ongoing generic
competitive pressures on Seretide, partly offset by strong demand for Trelegy and growth of Augmentin on
rebound of the antibiotic market post the pandemic.
International
International sales were £1,901 million, up 17% AER, 20% CER, including Xevudy sales of £226 million
contributing 14 percentage points of growth. HIV sales were £185 million up 26% AER, 30% CER primarily
driven by tender phasing. Combined Tivicay and Triumeq sales were £148 million with growth of 21% AER
and 25% CER. Nucala and Benlysta both continued to grow strongly, due to Japan’s biologicals market
growth and China’s National Reimbursement Drug List approval, respectively.
Vaccine sales were £368 million, down 11% AER, 9% CER primarily reflecting phasing of public tenders.
General Medicines sales were £1,029 million up 2% AER, 6% CER. Respiratory sales of £480 million were up
1% AER, 4% CER. Strong growth of Trelegy in Japan, China and Canada, and growth of Seretide on targeted
promotion, offset impact of generic competition and lower allergy season in Japan. Other General Medicines
sales of £549 million, up 4% AER, 8% CER reflect growth of Augmentin on rebound of the antibiotic market
post the pandemic.
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 11
Consumer Healthcare turnover
Q1 2022
£m
Growth
£%
Growth
CER%
Oral health 740 6 9
Pain relief 639 17 17
Vitamins, minerals and supplements 407 17 15
Respiratory health 370 51 53
Digestive health and other 477 – (1)
Consumer Healthcare 2,633 14 14
US 857 20 17
Europe 627 4 8
International 1,149 15 17
Consumer Healthcare by region 2,633 14 14
In Q1 2022, Consumer Healthcare turnover grew 14% AER, 14% CER to £2,633 million. Sales grew 15% AER,
16% CER, excluding the impact of brands divested, which were entirely in the Digestive health and other category.
Overall, the business delivered strong growth across all categories. Sales benefited from favourable prior year
comparators especially in Respiratory health which saw a strong rebound following the historically low cold and
flu season in Q1 2021, with cold and flu sales contributing approximately five percentage points to total growth.
In addition, advance retailer and wholesaler stock-in, and initial distributor sell-in due to the systems cutover and
distribution business model change ahead of the demerger contributed approximately two percentage points to total
growth. Strong sales growth in Pain relief benefited from increased demand during the Omicron wave and an
improved capacity in Vitamins, minerals and supplements.
Oral health
Oral health sales grew 6% AER, 9% CER to £740 million. Sensodyne delivered high-single digit growth reflecting
underlying brand strength, continued innovation and strong growth across key markets including the US, India,
Japan, Middle East and Africa. Paradontax delivered low double-digit growth. Denture care grew low-teens percent
following the decrease of sales during the pandemic.
Pain relief
Pain relief sales increased 17% AER, 17% CER to £639 million. Panadol grew mid thirties percent due to a
successful campaign aimed at post vaccination use and increased demand during the Omicron wave. Advil grew
low thirties percent benefitting from retail stocking patterns in the US versus a decrease in Q1 2021. Excedrin grew
high-single digits and Voltaren was stable with growth in China offset by a decrease in Germany.
Vitamins, minerals and supplements
Vitamins, minerals and supplements sales increased 17% AER, 15% CER to £407 million. Centrum grew high-teens
percent, with particularly strong growth in China due to consumer focus on immunity as a result of the pandemic.
Emergen-C grew high thirties percent versus a high twenties percent decrease in Q1 2021. Caltrate decreased low
single digits, high single digit growth in China was insufficient to offset a decline in the US and South East Asia.
Respiratory health
Respiratory health sales increased 51% AER, 53% CER to £370 million. The category rebounded strongly from
the historically low demand for cold and flu products in Q1 2021. Cold and flu product sales growth doubled in the
US and was strong in Europe, Middle East and Africa and Latin America, with sales ahead of pre-pandemic levels
in 2019.
Digestive health and other
Digestive health and other brands were flat AER, down 1% CER to £477 million. Sales grew 5% AER, 4% CER
excluding the impact of brands divested. Digestive health increased high-single digits with strong growth in Tums
and Eno partially offset by a low-single digit decrease in Nexium. Smokers health also grew high-single digits and
Skin health grew low single-digits.
By Region
International and US sales grew high-teens percent on a CER basis with broad growth across categories.
European growth was driven by a particularly strong rebound of cold and flu product sales ahead of pre-pandemic
sales in 2019.
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 12
Operating performance
Cost of sales
Total cost of sales as a percentage of turnover was 37.7%, 4.3 percentage points higher at AER and
4.2 percentage points higher in CER terms than Q1 2021. This included lower write-downs on sites from major
restructuring programmes compared to 2021.
Excluding these and other Adjusting items, Adjusted cost of sales as a percentage of turnover was 35.5%,
5.3 percentage points higher at AER and at CER compared with Q1 2021. This primarily reflected higher
pandemic sales (Xevudy) increasing cost of sales margin by seven percentage points as well as the impact of
increased commodity prices and freight costs particularly in Consumer Healthcare. This was partially offset by
a favourable mix primarily from increased sales of Shingrix in the US and Europe as well as a one-time benefit
from inventory adjustments in the quarter.
Selling, general and administration
Total SG&A costs as a percentage of turnover were 29.1%, 3.6 percentage points lower at AER and
3.5 percentage points lower at CER than in Q1 2021 as the growth in sales outweighed SG&A expenditure
growth.
Adjusted SG&A costs as a percentage of turnover were 27.4%, 3.8 percentage points lower at AER than in
Q1 2021 and 3.6 percentage points lower at CER. Adjusted SG&A costs increased 16% AER, 17% CER which
primarily reflected an increased level of launch investment in Specialty Medicines particularly HIV, Vaccines
and increased Consumer Healthcare brand investment to a more normal level compared to challenging
conditions in Q1 2021. The growth in Adjusted SG&A also reflected an unfavourable comparison to a beneficial
legal settlement in 2021, exchange losses on collaboration profit share and impairment provisions relating to
Russia and Ukraine. This growth, however was partly offset by the continuing benefit of restructuring and tight
control of ongoing costs.
Research and development
Group R&D expenditure was £1,167 million (11.9% of turnover), up 4% at both AER and CER. Adjusted R&D
expenditure was £1,154 million (11.8% of turnover), 7% higher than Q1 2021 at both AER and CER.
Adjusted R&D expenditure excluding Consumer Healthcare was £1,088 million (15.2% of turnover),
6% higher at AER, 6% higher at CER, primarily driven by increases in the Vaccines portfolio. Specialty
Medicines investment decreased with reductions in the late-stage Specialty Medicines portfolio partly offset by
increased research investment.
In the Vaccines portfolio there has been increased investment in RSV for older adults and meningitis due to
the ongoing phase III trials which commenced in 2021 and in Shingrix due to the combination trial exploring the
co-administration of Shingrix/Flu/COVID-19 as well as further market expansion. There has also been a
significant increase in the level of mRNA investment.
In Specialty Medicines investment continues in Blenrep, Zejula and otilimab but decreased primarily following
termination of the Oncology assets bintrafusp alpha and feladilimab in 2021 and following the regulatory
submission of daprodustat during Q1 2022. GSK continues to see increased investment in Specialty Medicines
due to several early-stage assets progressing to phase I.
Consumer Healthcare adjusted R&D spend was £66 million in the quarter.
Royalty income
Royalty income was £139 million (Q1 2021: £91 million), up 53% AER, 53% CER, primarily reflecting higher
sales of Gardasil and royalty income from Gilead under the settlement and licensing agreement with Gilead
announced on 1 February 2022 (see page 21).
Other operating income/(expense)
Net other operating income was £583 million (Q1 2021: £209 million) including £924 million upfront income
received from the settlement with Gilead. This was partly offset by accounting charges of £335 million
(Q1 2021: £107 million) arising from the re-measurement of contingent consideration liabilities and the
liabilities for the Pfizer put option and Pfizer and Shionogi preferential dividends in ViiV Healthcare. This
included a re-measurement charge of £256 million (Q1 2021: £134 million) for the contingent consideration
liability due to Shionogi & Co. Limited (Shionogi), including the unwinding of the discount for £101 million and a
charge for £155 million primarily from changes to exchange rates as well as adjustments to sales forecasts.
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 13
Operating profit
Total operating profit was £2,801 million compared with £1,693 million in Q1 2021. This included the
£924 million upfront settlement income from Gilead as well as increased profits on turnover growth of
32% at CER, partly offset by higher remeasurement charges for contingent consideration liabilities and lower
profits on disposals.
Adjusted operating profit was £2,613 million, 39% higher than Q1 2021 at AER and at CER on a turnover
increase of 32% CER. The Adjusted operating margin of 26.7% was 1.4 percentage points higher at AER and
1.3 percentage points higher at CER than in Q1 2021. This primarily reflected sales growth of 32% CER which
was significantly higher than growth in SG&A and R&D with continued tight cost control and restructuring
benefits. The benefit from COVID-19 solutions sales (Xevudy) contributed approximately 11% AER,
11% CER to Adjusted Operating profit growth.
Excluding Consumer Healthcare, Adjusted operating profit was £1,963 million, 46% higher than Q1 2021 at
AER and 44% at CER and the Adjusted operating margin was 27.5% which was 1.1 percentage points higher
at AER and 0.8 percentage points higher at CER than in Q1 2021. This primarily reflected the benefit from
COVID-19 solutions sales (Xevudy), which contributed approximately 16% AER, 15% CER to Adjusted
operating profit growth and reduced the Adjusted operating margin by approximately 2.6 percentage points at
AER and 2.5 percentage points at CER. Adjusted operating profit growth also includes leverage from strong
sales growth with margin improvement from sales mix, primarily Shingrix.
Contingent consideration cash payments made to Shionogi and other companies reduce the balance sheet
liability and hence are not recorded in the income statement. Total contingent consideration cash payments in
Q1 2022 amounted to £211 million (Q1 2021: £221 million). These included cash payments made to Shionogi
of £208 million (Q1 2021: £216 million).
Adjusted operating profit by business
Commercial Operations operating profit was £3,121 million, up 27% AER and CER on a turnover increase of
40% CER. The operating margin of 43.7% was 4.3 percentage points lower at both AER and CER than in
Q1 2021. This primarily reflected strong sales of lower margin Xevudy in the quarter, increased investment
behind launches in Specialty Medicines including HIV and Vaccines plus higher commodity, freight and
distribution costs as well as an adverse comparison to a favourable legal settlement in Q1 2021. This was
partly offset by continued tight control of ongoing costs, benefits from continued restructuring and increased
royalty income from Gardasil sales and, following the settlement with Gilead in February 2022, Biktarvy sales.
R&D segment operating expenses were £1,095 million, up 6% AER, 6% CER, primarily driven by increased
investment in Vaccines including priority investments for RSV Older Adult, MenABCWY and mRNA.
Consumer Healthcare operating profit was £650 million, up 21% AER, 26% CER on a turnover increase of
14% CER. The operating margin of 24.7% was 1.5 percentage points higher at AER and 2.3 percentage points
higher on a CER basis than in Q1 2021. This reflected strong leverage from volume growth and price
increases, supply chain efficiencies and incremental synergy benefits from the Pfizer Joint Venture partially
offset by increased brand investment, increased commodity and freight costs as well as new costs in 2022
associated with starting to run Consumer Healthcare as a standalone company.
Net finance costs
Total net finance costs were £202 million compared with £191 million in Q1 2021. Adjusted net finance costs
were £202 million compared with £190 million in Q1 2021. The increase primarily reflected higher interest
expense on debt due to adverse movements in exchange rates and the newly issued Consumer Healthcare
bond debt.
Share of after tax profits of associates and joint ventures
The share of after tax loss of associates and joint ventures was £1 million (Q1 2021: £16 million profit).
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 14
Taxation
The charge of £431 million represented an effective tax rate on Total results of 16.6% (Q1 2021: 17.0%) and
reflected the different tax effects of the various Adjusting items. Tax on Adjusted profit amounted to £431 million
and represented an effective Adjusted tax rate of 17.9% (Q1 2021: 18.6%).
Issues related to taxation are described in Note 14, ‘Taxation’ in the Annual Report 2021. The Group continues
to believe it has made adequate provision for the liabilities likely to arise from periods that are open and not
yet agreed by relevant tax authorities. The ultimate liability for such matters may vary from the amounts
provided and is dependent upon the outcome of agreements with relevant tax authorities.
Non-controlling interests
The allocation of Total earnings to non-controlling interests amounted to £365 million (Q1 2021: £187 million).
The increase was primarily due to an increased allocation of ViiV Healthcare profits of £227 million
(Q1 2021: £76 million), including the Gilead upfront settlement income partly offset by increased credits for
re-measurement of contingent consideration liabilities.
The allocation of Adjusted earnings to non-controlling interests amounted to £333 million (Q1 2021:
£246 million). The increase in allocation primarily reflected an increase in allocation of Consumer Healthcare
Joint Venture profits of £154 million (Q1 2021: £114 million) and an increase allocation of ViiV Healthcare
profits of £113 million (Q1 2021: £108 million), as well as higher net profits in some of the Group’s other
entities with non-controlling interests.
Earnings per share
Total EPS was 35.9p compared with 21.5p in Q1 2021. This primarily reflected leverage from significant sales
growth during the quarter and income of £924 million from the settlement with Gilead partly offset by an
increase in finance costs.
Adjusted EPS was 32.8p compared with 22.9p in Q1 2021, up 43% AER 43% CER, on a 39% CER increase
in Adjusted operating profit primarily reflecting increased sales of Specialty Medicines and Vaccines including
COVID-19 solutions sales, tight cost control and a lower effective tax rate. These were partly offset by higher
supply chain costs, increased R&D investment, favourable legal settlements in Q1 2021 and higher interest
costs. The contribution to growth from COVID-19 solutions was approximately 15% AER, 15% CER.
Currency impact on Q1 2022 results
The results for Q1 2022 are based on average exchange rates, principally £1/$1.34, £1/€1.19 and £1/Yen 156.
Comparative exchange rates are given on page 31. The period-end exchange rates were £1/$1.31, £1/€1.18
and £1/Yen 160.
In Q1 2022, turnover was up 32% AER and CER. Total EPS was 35.9p compared with 21.5p in Q1 2021.
Adjusted EPS was 32.8p compared with 22.9p in Q1 2021, up 43% at both AER and CER. The currency
impact was largely neutral reflecting the strengthening in Sterling against the Euro and Japanese Yen offset by
the weakening of Sterling against the US Dollar. Exchange gains or losses on the settlement of intercompany
transactions had a one percent favourable impact on the neutral currency impact on Adjusted EPS.
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 15
Adjusting items
The reconciliations between Total results and Adjusted results for Q1 2022 and Q1 2021 are set out below.
Three months ended 31 March 2022
Total
results
£m
Intangible
amortisation
£m
Intangible
impairment
£m
Major
restructuring
£m
Transactionrelated
£m
Divestments,
significant
legal and
other
items
£m
Separation
costs
£m
Adjusted
results
£m
Turnover 9,780 9,780
Cost of sales (3,690) 174 17 16 12 (3,471)
Gross profit 6,090 174 17 16 12 6,309
Selling, general and administration (2,844) 37 9 117 (2,681)
Research and development (1,167) 23 (16) 6 (1,154)
Royalty income 139 139
Other operating income/(expense) 583 335 (940) 22 –
Operating profit 2,801 197 1 59 347 (931) 139 2,613
Net finance cost (202) (202)
Share of after tax losses of
associates and joint ventures (1) (1)
Profit before taxation 2,598 197 1 59 347 (931) 139 2,410
Taxation (431) (40) 1 (14) (53) 132 (26) (431)
Tax rate % 16.6% 17.9%
Profit after taxation 2,167 157 2 45 294 (799) 113 1,979
Profit attributable to non-controlling
interests 365 (32) 333
Profit attributable to shareholders 1,802 157 2 45 326 (799) 113 1,646
Earnings per share 35.9p 3.1p – 0.9p 6.5p (15.9)p 2.3p 32.8p
Weighted average number of shares
(millions) 5,020 5,020
Three months ended 31 March 2021
Total
results
£m
Intangible
amortisation
£m
Intangible
impairment
£m
Major
restructuring
£m
Transactionrelated
£m
Divestments,
significant
legal and
other
items
£m
Separation
costs
£m
Adjusted
results
£m
Turnover 7,418 7,418
Cost of sales (2,480) 175 1 34 7 27 (2,236)
Gross profit 4,938 175 1 34 7 27 5,182
Selling, general and administration (2,427) 75 2 35 (2,315)
Research and development (1,118) 26 13 2 (1,077)
Royalty income 91 91
Other operating income/(expense) 209 (1) 109 (317) –
Operating profit 1,693 201 14 110 116 (288) 35 1,881
Net finance cost (191) 1 (190)
Share of after tax profits of
associates and joint ventures 16 16
Profit before taxation 1,518 201 14 111 116 (288) 35 1,707
Taxation (258) (39) (3) (24) (31) 44 (7) (318)
Tax rate % 17.0% 18.6%
Profit after taxation 1,260 162 11 87 85 (244) 28 1,389
Profit attributable to non-controlling
interests 187 59 246
Profit attributable to shareholders 1,073 162 11 87 26 (244) 28 1,143
Earnings per share 21.5p 3.2p 0.2p 1.7p 0.5p (4.8)p 0.6p 22.9p
Weighted average number of shares
(millions) 4,993 4,993
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 16
Major restructuring and integration
Total Major restructuring charges incurred in Q1 2022 were £59 million (Q1 2021: £110 million), analysed as
follows:
Q1 2022 Q1 2021
Cash
£m
Noncash
£m
Total
£m
Cash
£m
Noncash
£m
Total
£m
Separation Preparation restructuring
programme 13 38 51 79 9 88
Consumer Healthcare Joint Venture
integration programme 2 4 6 40 4 44
Legacy programmes 1 1 2 7 (29) (22)
16 43 59 126 (16) 110
Cash charges of £13 million under the Separation Preparation programme primarily arose from the
restructuring of some administrative functions as well as commercial pharmaceuticals and R&D functions.
The non-cash charges of £38 million primarily reflected the write-down of assets in administrative locations
and R&D sites.
Total cash payments made in Q1 2022 were £171 million (Q1 2021: £211 million), £120 million (Q1 2021:
£100 million) relating to the Separation Preparation restructuring programme, a further £31 million (Q1 2021:
£60 million) relating to the Consumer Healthcare Joint Venture integration programme and £20 million
(Q1 2021: £51 million) relating to other legacy programmes including the settlement of certain charges accrued
in previous quarters.
The analysis of Major restructuring charges by Income statement line was as follows:
Q1 2022
£m
Q1 2021
£m
Cost of sales 16 34
Selling, general and administration 37 75
Research and development 6 2
Other operating income – (1)
Total Major restructuring costs 59 110
The benefit in the quarter from restructuring programmes was £0.1 billion, primarily relating to the Separation
Preparation restructuring programme.
The Group initiated in Q1 2020 a two-year Separation Preparation programme to prepare for the separation of
GSK into two companies: new GSK, a biopharma company with an R&D approach focused on science related
to the immune system, the use of human genetics and new technologies, and a new leader in Consumer
Healthcare. The programme aims to:
• Drive a common approach to R&D with improved capital allocation
• Align and improve the capabilities and efficiency of global support functions to support new GSK
• Further optimise the supply chain and product portfolio, including the divestment of non-core assets
• Prepare Consumer Healthcare to operate as a standalone company
The programme continues to target delivery of £0.8 billion of annual savings by 2022 and £1.0 billion by 2023,
with total costs estimated at £2.4 billion, of which £1.6 billion is expected to be cash costs. The proceeds of
divestments have largely covered the cash costs of the programme.
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 17
The completion of the Consumer Healthcare Joint Venture with Pfizer has realised substantial cost synergies
and largely delivered the expected total annual cost savings of £0.5 billion by 2021. In February 2022, at the
Haleon Capital Markets Day, the projected savings from this programme were announced as increased by
£0.1 billion to £0.6 billion by 2022. The cash costs are expected to be £0.7 billion and non-cash charges are
expected to be £0.1 billion, plus an additional capital expenditure of £0.2 billion. Up to 25% of the cost savings
are intended to be reinvested in the business to support innovation and other growth opportunities.
Transaction-related adjustments
Transaction-related adjustments resulted in a net charge of £347 million (Q1 2021: £116 million). This included
a net £332 million accounting charge for the re-measurement of contingent consideration liabilities and the
liabilities for the Pfizer put option and Pfizer and Shionogi preferential dividends in ViiV Healthcare.
Charge/(credit)
Q1 2022
£m
Q1 2021
£m
Contingent consideration on former Shionogi-ViiV Healthcare joint Venture
(including Shionogi preferential dividends) 256 134
ViiV Healthcare put options and Pfizer preferential dividends 32 (53)
Contingent consideration on former Novartis Vaccines business 44 26
Other adjustments 15 9
Total transaction-related charges 347 116
The £256 million charge relating to the contingent consideration for the former Shionogi-ViiV Healthcare joint
venture represented an increase in the valuation of the contingent consideration due to Shionogi, as a result
of the unwind of the discount for £101 million and a charge of £155 million primarily from exchange rates as
well as adjustments to sales forecasts. The £32 million charge relating to the ViiV Healthcare put option and
Pfizer preferential dividends represented an increase in the valuation of the put option primarily as a result of
updated exchange rates and adjustments to sales forecasts.
The ViiV Healthcare contingent consideration liability is fair valued under IFRS. An explanation of the
accounting for the non-controlling interests in ViiV Healthcare is set out on page 21.
Divestments, significant legal charges, and other items
Divestments, significant legal charges and other items primarily included the £924 million upfront settlement
income received from Gilead, as well as gains from a number of asset disposals, fair value gains on
investments and certain other Adjusting items.
Separation costs
From Q2 2020, the Group started to report additional costs to prepare for establishment of the Consumer
Healthcare business as an independent entity ("Separation costs"). Total separation costs incurred in
Q1 2022 were £139 million (Q1 2021: £35 million). This includes £22 million relating to transaction costs
incurred in connection with the demerger and preparatory admission costs related to the listing of
Consumer Healthcare.
Total separation costs are estimated to be £600-700 million, excluding transaction costs.
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 18
Cash generation
Cash flow
Q1 2022 Q1 2021
Cash generated from operations (£m) 2,755 486
Net cash inflow from operating activities (£m) 2,542 331
Free cash flow* (£m) 1,650 (3)
Free cash flow growth (%) >100% >(100)%
Free cash flow conversion* (%) 92% <-%
Net debt** (£m) 19,351 21,402
* Free cash flow and free cash flow conversion are defined on page 42.
** Net debt is analysed on page 33.
Q1 2022
Cash generated from operating activities for the quarter was £2,755 million (Q1 2021: £486 million). The
increase primarily reflected a significant increase in operating profit including the upfront income from the
settlement with Gilead, favourable timing of collections and profit share payments for Xevudy sales and a lower
seasonal increase in inventory.
Total cash payments to Shionogi in relation to the ViiV Healthcare contingent consideration liability in the
quarter were £208 million (Q1 2021: £216 million), of which £183 million was recognised in cash flows from
operating activities and £25 million was recognised in contingent consideration paid within investing cash
flows. These payments are deductible for tax purposes.
Free cash inflow was £1,650 million for the quarter (Q1 2021: £3 million outflow). The increase primarily
reflected the significant increase in operating profit including the upfront income from the settlement with
Gilead, favourable timing of collections and profit share payments for Xevudy sales and lower seasonal
increase in inventory. This was partially offset by lower proceeds from disposals and higher purchases of
intangible asset, as well as higher tax payments and capital expenditure.
Net debt
At 31 March 2022, net debt was £19.4 billion, compared with £19.8 billion at 31 December 2021, comprising
gross debt of £33.3 billion which increased primarily due to the debt issuance for Consumer Healthcare, cash
and liquid investments of £11.0 billion and cash advances and a short-term loan to a subsidiary of Pfizer Inc.
of £2.9 billion, reflecting an on-lend of a portion of the cash received from the proceeds of the Consumer
Healthcare bond issuance in line with Pfizer’s shareholding of the Consumer Healthcare Joint Venture. Net
debt reduced due to £1.7 billion free cash flow partly offset by the dividends paid to shareholders of
£1.0 billion, £0.2 billion of net adverse exchange impacts from the translation of non-Sterling denominated
debt and exchange on other financing items and additional investments of £0.1 billion.
At 31 March 2022, GSK had short-term borrowings (including overdrafts and lease liabilities) repayable within
12 months of £4.1 billion with loans of £3.9 billion repayable in the subsequent year.
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 19
Returns to shareholders
Quarterly dividends
The Board has declared a first interim dividend for 2022 of 14 pence per share (Q1 2021: 19 pence per share).
As set out at the new GSK Investor Update in June 2021, from 2022 GSK will adopt a progressive dividend policy
targeting a dividend pay-out ratio equivalent to 40 to 60% over the investment cycle. The dividend policy, the total
expected cash distribution, and the respective dividend pay-out ratios for new GSK and new Consumer Healthcare
remain unchanged.
GSK expects to declare a 27p per share dividend payable by the current group for the first half. This comprises
22p per share for new GSK and 5p per share representing Consumer Healthcare during the first half whilst part of
the group. For the second half of 2022, new GSK continues to expect to declare a 22p per share dividend. As
previously communicated, new GSK would expect to declare a dividend of 45p per share for 2023.
Following separation, the dividend policy for the new Consumer Healthcare company will be the responsibility of its
Board of Directors and is expected to be guided by a 30 to 50 per cent pay-out ratio. We expect a second-half
dividend from the new Consumer Healthcare company equivalent to a pay-out of around 3p per share, subject to
its Board’s decisions on the intra-year phasing of dividend payments.
In aggregate, this would represent on the full year 2022 basis the equivalent of a Group dividend of around
52p per share. Dividends payable by Consumer Healthcare will only be receivable by shareholders who remain
invested in Consumer Healthcare post-separation and at the appropriate record dates.
Payment of dividends
The equivalent interim dividend receivable by ADR holders will be calculated based on the exchange rate on
29 June 2022. An annual fee of $0.03 per ADS (or $0.0075 per ADS per quarter) is charged by the Depositary.
The ex-dividend date will be 19 May 2022, with a record date of 20 May 2022 and a payment date of 1 July 2022.
Paid/
payable
Pence per
share £m
2022
First interim 1 July 2022 14 704
2021
First interim 8 July 2021 19 951
Second interim 7 October 2021 19 951
Third interim 13 January 2022 19 952
Fourth interim 7 April 2022 23 1,157
80 4,011
Weighted average number of shares
Q1 2022
millions
Q1 2021
millions
Weighted average number of shares – basic 5,020 4,993
Dilutive effect of share options and share awards 48 44
Weighted average number of shares – diluted 5,068 5,037
At 31 March 2022, 5,030 million shares (Q1 2021: 5,003 million) were in free issue (excluding Treasury shares and
shares held by the ESOP Trusts). GSK made no share repurchases during the period. The company issued
1.8 million shares under employee share schemes in the period for proceeds of £17 million (Q1 2021: £15 million).
At 31 March 2022 , the ESOP Trust held 53.2 million GSK shares against the future exercise of share options and
share awards. The carrying value of £403 million has been deducted from other reserves. The market value of these
shares was £882 million.
At 31 March 2022, the company held 304.9 million Treasury shares at a cost of £4,265 million, which has been
deducted from retained earnings.
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 20
Total and Adjusted results
Total reported results represent the Group’s overall performance.
GSK also uses a number of adjusted, non-IFRS, measures to report the performance of its business. Adjusted
results and other non-IFRS measures may be considered in addition to, but not as a substitute for or superior
to, information presented in accordance with IFRS. Adjusted results are defined below and other non-IFRS
measures are defined on page 42.
GSK believes that Adjusted results, when considered together with Total results, provide investors, analysts
and other stakeholders with helpful complementary information to understand better the financial performance
and position of the Group from period to period, and allow the Group’s performance to be more easily
compared against the majority of its peer companies. These measures are also used by management for
planning and reporting purposes. They may not be directly comparable with similarly described measures used
by other companies.
GSK encourages investors and analysts not to rely on any single financial measure but to review GSK’s
quarterly results announcements, including the financial statements and notes, in their entirety.
GSK is committed to continuously improving its financial reporting, in line with evolving regulatory requirements
and best practice. In line with this practice, GSK expects to continue to review and refine its reporting
framework.
Adjusted results exclude the following items from Total results, together with the tax effects of all of these
items:
• amortisation of intangible assets (excluding computer software and capitalised development costs)
• impairment of intangible assets (excluding computer software) and goodwill
• Major restructuring costs, which include impairments of tangible assets and computer software, (under
specific Board approved programmes that are structural, of a significant scale and where the costs of
individual or related projects exceed £25 million), including integration costs following material acquisitions
• transaction-related accounting or other adjustments related to significant acquisitions
• proceeds and costs of disposal of associates, products and businesses; significant settlement income;
significant legal charges (net of insurance recoveries) and expenses on the settlement of litigation and
government investigations; other operating income other than royalty income, and other items
• separation costs include costs to establish Consumer Healthcare as an independent business, as well
as admission listing and demerger costs
Costs for all other ordinary course smaller scale restructuring and legal charges and expenses are retained
within both Total and Adjusted results.
As Adjusted results include the benefits of Major restructuring programmes but exclude significant costs
(such as significant legal, major restructuring and transaction items) they should not be regarded as a
complete picture of the Group’s financial performance, which is presented in Total results. The exclusion of
other Adjusting items may result in Adjusted earnings being materially higher or lower than Total earnings.
In particular, when significant impairments, restructuring charges and legal costs are excluded, Adjusted
earnings will be higher than Total earnings.
GSK has undertaken a number of Major restructuring programmes in response to significant changes in the
Group’s trading environment or overall strategy, or following material acquisitions. Within the Pharmaceuticals
sector, the highly regulated manufacturing operations and supply chains and long lifecycle of the business
mean that restructuring programmes, particularly those that involve the rationalisation or closure of
manufacturing or R&D sites are likely to take several years to complete. Costs, both cash and non-cash, of
these programmes are provided for as individual elements are approved and meet the accounting recognition
criteria. As a result, charges may be incurred over a number of years following the initiation of a Major
restructuring programme.
Significant legal charges and expenses are those arising from the settlement of litigation or government
investigations that are not in the normal course and materially larger than more regularly occurring individual
matters. They also include certain major legacy matters.
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 21
Reconciliations between Total and Adjusted results, providing further information on the key Adjusting items,
are set out on page 15.
GSK provides earnings guidance to the investor community on the basis of Adjusted results. This is in line with
peer companies and expectations of the investor community, supporting easier comparison of the Group’s
performance with its peers. GSK is not able to give guidance for Total results as it cannot reliably forecast
certain material elements of the Total results, particularly the future fair value movements on contingent
consideration and put options that can and have given rise to significant adjustments driven by external factors
such as currency and other movements in capital markets.
ViiV Healthcare
ViiV Healthcare is a subsidiary of the Group and 100% of its operating results (turnover, operating profit,
profit after tax) are included within the Group income statement.
Earnings are allocated to the three shareholders of ViiV Healthcare on the basis of their respective equity
shareholdings (GSK 78.3%, Pfizer 11.7% and Shionogi 10%) and their entitlement to preferential dividends,
which are determined by the performance of certain products that each shareholder contributed. As the relative
performance of these products changes over time, the proportion of the overall earnings allocated to each
shareholder also changes. In particular, the increasing proportion of sales of dolutegravir and cabotegravircontaining products has a favourable impact on the proportion of the preferential dividends that is allocated to
GSK. Adjusting items are allocated to shareholders based on their equity interests. GSK was entitled to
approximately 86% of the Total earnings and 83% of the Adjusted earnings of ViiV Healthcare for 2021.
As consideration for the acquisition of Shionogi’s interest in the former Shionogi-ViiV Healthcare joint venture
in 2012, Shionogi received the 10% equity stake in ViiV Healthcare and ViiV Healthcare also agreed to pay
additional future cash consideration to Shionogi, contingent on the future sales performance of the products
being developed by that joint venture, dolutegravir and cabotegravir. Under IFRS 3 ‘Business combinations’,
GSK was required to provide for the estimated fair value of this contingent consideration at the time of
acquisition and is required to update the liability to the latest estimate of fair value at each subsequent period
end. The liability for the contingent consideration recognised in the balance sheet at the date of acquisition was
£659 million. Subsequent re-measurements are reflected within other operating income/(expense) and within
Adjusting items in the income statement in each period.
On 1 February 2022, ViiV Healthcare reached agreement with Gilead to settle the global patent infringement
litigation relating to the commercialisation of Gilead’s Biktarvy. Under the terms of the global settlement and
licensing agreement, Gilead made an upfront payment of $1.25 billion to ViiV Healthcare in February 2022.
In addition, Gilead will also pay a 3% royalty on all future US sales of Biktarvy and in respect of the bictegravir
component of any other future bictegravir-containing products sold in the US. These royalties will be payable
by Gilead to ViiV Healthcare from 1 February 2022 until the expiry of ViiV Healthcare’s US Patent No.
8,129,385 on 5 October 2027. Gilead’s obligation to pay royalties does not extend into any period of regulatory
paediatric exclusivity, if awarded.
Cash payments to settle the contingent consideration are made to Shionogi by ViiV Healthcare each quarter,
based on the actual sales performance and other income of the relevant products in the previous quarter.
These payments reduce the balance sheet liability and hence are not recorded in the income statement.
The cash payments made to Shionogi by ViiV Healthcare in Q1 2022 were £208 million.
As the liability is required to be recorded at the fair value of estimated future payments, there is a significant
timing difference between the charges that are recorded in the Total income statement to reflect movements
in the fair value of the liability and the actual cash payments made to settle the liability.
Further explanation of the acquisition-related arrangements with ViiV Healthcare are set out on pages 57
and 58 of the Annual Report 2021.
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 22
Financial information
Income statements
Q1 2022
£m
Q1 2021
£m
TURNOVER 9,780 7,418
Cost of sales (3,690) (2,480)
Gross profit 6,090 4,938
Selling, general and administration (2,844) (2,427)
Research and development (1,167) (1,118)
Royalty income 139 91
Other operating income 583 209
OPERATING PROFIT 2,801 1,693
Finance income 10 10
Finance expense (212) (201)
Share of after tax (losses)/profits of associates and joint ventures (1) 16
PROFIT BEFORE TAXATION 2,598 1,518
Taxation (431) (258)
Tax rate % 16.6% 17.0%
PROFIT AFTER TAXATION 2,167 1,260
Profit attributable to non-controlling interests 365 187
Profit attributable to shareholders 1,802 1,073
2,167 1,260
EARNINGS PER SHARE 35.9p 21.5p
Diluted earnings per share 35.6p 21.3p
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 23
Statement of comprehensive income
Q1 2022
£m
Q1 2021
£m
Profit for the period 2,167 1,260
Items that may be reclassified subsequently to income statement:
Exchange movements on overseas net assets and net investment hedges 267 (267)
Reclassification of exchange movements on liquidation or disposal of
overseas subsidiaries and associates
Fair value movements on cash flow hedges 194 (11)
Reclassification of cash flow hedges to income statement (1) 14
Deferred tax on fair value movements on cash flow hedges (44) –
416 (264)
Items that will not be reclassified to income statement:
Exchange movements on overseas net assets of non-controlling interests 4 (34)
Fair value movements on equity investments (543) 236
Tax on fair value movements on equity investments 47 54
Re-measurement gains on defined benefit plans 313 23
Tax on re-measurement losses on defined benefit plans (73) (12)
(252) 267
Other comprehensive income for the period 164 3
Total comprehensive income for the period 2,331 1,263
Total comprehensive income for the period attributable to:
Shareholders 1,962 1,110
Non-controlling interests 369 153
2,331 1,263
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 24
Specialty Medicines turnover – three months ended 31 March 2022
Total US Europe International
Growth Growth Growth Growth
£m £% CER% £m £% CER% £m £% CER% £m £% CER%
HIV 1,181 15 14 697 17 13 299 4 8 185 26 30
Dolutegravir products 1,102 11 11 641 11 8 287 3 6 174 30 34
Tivicay 320 6 7 160 (2) (5) 65 (13) (11) 95 51 57
Triumeq 392 (10) (11) 245 (4) (7) 94 (22) (20) 53 (10) (8)
Juluca 133 19 18 99 19 16 30 15 23 4 33 33
Dovato 257 82 82 137 85 78 98 69 76 22 >100 >100
Rukobia 16 >100 >100 15 >100 >100 1 >100 >100 – – –
Cabenuva 38 >100 >100 32 >100 >100 6 – – – – –
Apretude 2 – – 2 – – – – – – – –
Other 23 (28) (19) 7 (42) (33) 5 (29) (14) 11 (15) (8)
Oncology 127 15 15 69 6 3 54 26 30 4 >100 >100
Zejula 98 11 11 51 – (4) 43 19 22 4 >100 >100
Blenrep 25 19 19 16 14 14 9 29 29 – – –
Jemperli 4 >100 >100 2 – – 2 >100 >100 – – –
Immunoinflammation,
respiratory and other 520 18 18 347 18 14 84 8 13 89 35 38
Benlysta 215 21 18 170 17 14 19 19 19 26 53 53
Nucala 295 16 16 177 18 15 65 5 10 53 26 31
Pandemic 1,307 – – 770 – – 311 – – 226 – –
Xevudy 1,307 – – 770 – – 311 – – 226 – –
Specialty Medicines 3,135 98 97 1,883 97 91 748 83 88 504 >100 >100
Vaccines turnover – three months ended 31 March 2022
Total US Europe International
Growth Growth Growth Growth
£m £% CER% £m £% CER% £m £% CER% £m £% CER%
Meningitis 212 12 12 99 80 75 83 (8) (6) 30 (33) (29)
Bexsero 163 22 23 66 >100 >100 79 (7) (5) 18 – 11
Menveo 42 8 5 33 37 33 3 (25) (25) 6 (45) (45)
Other 7 (59) (59) – – – 1 – – 6 (63) (63)
Influenza 18 – – 1 >100 >100 – – – 17 (6) (6)
Fluarix, FluLaval 18 – – 1 >100 >100 – – – 17 (6) (6)
Shingles 698 >100 >100 490 82 77 160 >100 >100 48 78 70
Shingrix 698 >100 >100 490 82 77 160 >100 >100 48 78 70
Established
Vaccines 741 8 8 302 67 61 166 (11) (8) 273 (15) (14)
Infanrix, Pediarix 175 29 27 112 75 70 29 (27) (25) 34 6 6
Boostrix 126 34 33 70 63 58 33 (8) (6) 23 53 53
Hepatitis 122 28 27 78 53 47 29 21 25 15 (25) (20)
Rotarix 117 3 5 35 59 55 32 7 10 50 (19) (15)
Synflorix 81 (21) (19) – – – 6 (50) (42) 75 (17) (16)
Priorix, Priorix
Tetra, Varilrix 47 (25) (25) – – – 28 (12) (9) 19 (39) (42)
Cervarix 29 (36) (38) – – – 4 (50) (50) 25 (32) (35)
Other 44 10 13 7 >100 >100 5 25 25 32 (9) (3)
Pandemic vaccines – – – – – – – – – – – –
Pandemic adjuvant – – – – – – – – – – – –
Vaccines 1,669 36 36 892 77 71 409 33 38 368 (11) (9)
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 25
General Medicines turnover – three months ended 31 March 2022
Total US Europe International
Growth Growth Growth Growth
£m £% CER% £m £% CER% £m £% CER% £m £% CER%
Respiratory 1,535 3 3 722 6 3 333 (2) 1 480 1 4
Arnuity Ellipta 13 >100 >100 11 >100 >100 – – – 2 – –
Anoro Ellipta 98 (16) (15) 41 (35) (37) 38 6 8 19 6 11
Avamys/Veramyst 94 (9) (5) – – – 16 – 6 78 (10) (7)
Flixotide/Flovent 127 9 8 85 21 17 18 12 12 24 (23) (16)
Incruse Ellipta 50 (4) (6) 26 (4) (4) 16 (11) (6) 8 14 (14)
Relvar/Breo Ellipta 275 3 3 120 7 4 83 1 5 72 (3) –
Seretide/Advair 302 (14) (14) 84 (28) (30) 73 (23) (21) 145 4 5
Trelegy Ellipta 340 37 35 238 38 34 53 18 20 49 63 70
Ventolin 201 6 6 117 4 1 30 20 24 54 4 10
Other Respiratory 35 (15) (10) – – – 6 – 17 29 (17) (11)
Other General
Medicines 808 – 3 89 14 12 170 (16) (13) 549 4 8
Dermatology 92 (8) (5) – – – 27 (21) (18) 65 (2) 2
Augmentin 129 42 51 – – – 36 57 65 93 37 46
Avodart 81 (2) (1) – – – 27 (10) (10) 54 4 6
Lamictal 120 3 3 59 7 4 26 (7) (4) 35 6 9
Other 386 (8) (5) 30 36 36 54 (39) (36) 302 (3) 1
General Medicines 2,343 2 3 811 7 4 503 (7) (4) 1,029 2 6
Commercial Operations turnover – three months ended 31 March 2022
Total US Europe International
Growth Growth Growth Growth
£m £% CER% £m £% CER% £m £% CER% £m £% CER%
Commercial
Operations 7,147 40 40 3,586 62 57 1,660 32 36 1,901 17 20
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 26
Balance sheet
31 March 2022
£m
31 December 2021
£m
ASSETS
Non-current assets
Property, plant and equipment 9,964 9,932
Right of use assets 740 740
Goodwill 10,705 10,552
Other intangible assets 30,468 30,079
Investments in associates and joint ventures 83 88
Other investments 1,656 2,126
Deferred tax assets 5,263 5,218
Derivative financial instruments 16 18
Other non-current assets 1,806 1,676
Total non-current assets 60,701 60,429
Current assets
Inventories 6,003 5,783
Current tax recoverable 497 486
Trade and other receivables 8,300 7,860
Derivative financial instruments 176 188
Liquid investments and short term loans to third parties 3,010 61
Cash and cash equivalents 10,967 4,274
Assets held for sale 35 22
Total current assets 28,988 18,674
TOTAL ASSETS 89,689 79,103
LIABILITIES
Current liabilities
Short-term borrowings (4,102) (3,601)
Contingent consideration liabilities (971) (958)
Trade and other payables (17,577) (17,554)
Derivative financial instruments (152) (227)
Current tax payable (783) (489)
Short-term provisions (693) (841)
Total current liabilities (24,278) (23,670)
Non-current liabilities
Long-term borrowings (29,226) (20,572)
Corporation tax payable (184) (180)
Deferred tax liabilities (3,668) (3,556)
Pensions and other post-employment benefits (2,940) (3,113)
Other provisions (643) (630)
Derivative financial instruments (23) (1)
Contingent consideration liabilities (5,198) (5,118)
Other non-current liabilities (897) (921)
Total non-current liabilities (42,779) (34,091)
TOTAL LIABILITIES (67,057) (57,761)
NET ASSETS 22,632 21,342
EQUITY
Share capital 1,347 1,347
Share premium account 3,436 3,301
Retained earnings 9,637 7,944
Other reserves 1,761 2,463
Shareholders’ equity 16,181 15,055
Non-controlling interests 6,451 6,287
TOTAL EQUITY 22,632 21,342
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 27
Statement of changes in equity
Share
capital
£m
Share
premium
£m
Retained
earnings
£m
Other
reserves
£m
Shareholder’s
equity
£m
Noncontrolling
interests
£m
Total
equity
£m
At 1 January 2022 1,347 3,301 7,944 2,463 15,055 6,287 21,342
Profit for the period 1,802 1,802 365 2,167
Other comprehensive
income/(expense) for the period 507 (347) 160 4 164
Total comprehensive income/(expense)
for the period 2,309 (347) 1,962 369 2,331
Distributions to non-controlling interests (213) (213)
Contributions from non-controlling
interests 8 8
Dividends to shareholders (952) (952) (952)
Shares issued 17 17 17
Shares acquired by ESOP Trusts 118 704 (822) – –
Realised after tax losses on disposal
of equity investments (10) 10 – –
Write-down on shares held by ESOP
Trusts (457) 457 – –
Share-based incentive plans 99 99 99
At 31 March 2022 1,347 3,436 9,637 1,761 16,181 6,451 22,632
At 1 January 2021 1,346 3,281 6,755 3,205 14,587 6,221 20,808
Profit for the period 1,073 1,073 187 1,260
Other comprehensive (expense)/
income for the period (255) 292 37 (34) 3
Total comprehensive income for the
period 818 292 1,110 153 1,263
Distributions to non-controlling interests (236) (236)
Contributions from non-controlling
interests 7 7
Dividends to shareholders (946) (946) (946)
Shares issued 15 15 15
Realised after tax profits on disposal
of equity investments 29 (29) – –
Write-down on shares held by ESOP
Trusts (55) 55 – –
Share-based incentive plans 99 99 99
At 31 March 2021 1,346 3,296 6,700 3,523 14,865 6,145 21,010
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 28
Cash flow statement
Q1 2022
£m
Q1 2021
£m
Profit after tax 2,167 1,260
Tax on profits 431 258
Share of after tax (losses)/profits of associates and joint ventures 1 (16)
Net finance expense 202 191
Depreciation, amortisation and other adjusting items 704 361
Decrease in working capital (671) (539)
Contingent consideration paid (185) (192)
Increase/(decrease) in other net liabilities (excluding contingent
consideration paid) 106 (837)
Cash generated from operations 2,755 486
Taxation paid (213) (155)
Net cash inflow from operating activities 2,542 331
Cash flow from investing activities
Purchase of property, plant and equipment (222) (201)
Proceeds from sale of property, plant and equipment 6 37
Purchase of intangible assets (379) (153)
Proceeds from sale of intangible assets 9 328
Purchase of equity investments (45) (103)
Proceeds from sale of equity investments – 44
Contingent consideration paid (26) (29)
Disposal of businesses 1 3
Cash advances and loans to third parties (2,947) –
Interest received 10 8
Decrease in liquid investments – 18
Net cash outflow from investing activities (3,593) (48)
Cash flow from financing activities
Issue of share capital 17 15
Shares acquired by ESOP Trusts (5) –
Increase in long-term loans 9,205 –
Repayment of short-term loans (249) (5)
Repayment of lease liabilities (59) (49)
Interest paid (85) (95)
Dividends paid to shareholders (952) (946)
Distributions to non-controlling interests (213) (236)
Contributions from non-controlling interests 8 7
Other financing items 306 (67)
Net cash inflow/(outflow) from financing activities 7,973 (1,376)
Increase/(decrease) in cash and bank overdrafts in the period 6,922 (1,093)
Cash and bank overdrafts at beginning of the period 3,817 5,262
Exchange adjustments 12 (35)
Increase/(decrease) in cash and bank overdrafts 6,922 (1,093)
Cash and bank overdrafts at end of the period 10,751 4,134
Cash and bank overdrafts at end of the period comprise:
Cash and cash equivalents 10,967 4,757
Overdrafts (216) (623)
10,751 4,134
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 29
Segment information
Operating segments are reported based on the financial information provided to the Chief Executive Officer
and the responsibilities of the GSK Leadership Team (GLT). GSK has revised its operating segments from
Q1 2022. Previously, GSK reported results under four segments: Pharmaceuticals; Pharmaceuticals R&D;
Vaccines and Consumer Healthcare. From the first quarter 2022, GSK reports results under three segments:
Commercial Operations; Total R&D and Consumer Healthcare, and members of the GLT are responsible for
each segment. Comparative information in this announcement has been retrospectively restated on a
consistent basis.
R&D investment is essential for the sustainability of the business. However for segment reporting the
Commercial operating profits exclude allocations of globally funded R&D.
The Total R&D segment is the responsibility of the Chief Scientific Officer and President, R&D and is reported as
a separate segment. The operating profit of this segment includes R&D activities across Specialty Medicines,
including HIV and Vaccines. It includes R&D and some SG&A costs relating to regulatory and other functions.
The Group’s management reporting process allocates intra-Group profit on a product sale to the market in
which that sale is recorded, and the profit analyses below have been presented on that basis.
Turnover by segment
Q1 2022
£m
Q1 2021
£m
Growth
£%
Growth
CER%
Commercial Operations 7,147 5,106 40 40
Consumer Healthcare 2,633 2,312 14 14
Total turnover 9,780 7,418 32 32
Operating profit by segment
Q1 2022
£m
Q1 2021
£m
Growth
£%
Growth
CER%
Commercial Operations 3,121 2,451 27 27
Research and Development (1,095) (1,030) 6 6
Consumer Healthcare 650 535 21 26
Segment profit 2,676 1,956 37 38
Corporate and other unallocated costs (63) (75)
Adjusted operating profit 2,613 1,881 39 39
Adjusting items 188 (188)
Total operating profit 2,801 1,693 65 65
Finance income 10 10
Finance costs (212) (201)
Share of after tax (losses)/profits of
associates and joint ventures (1) 16
Profit before taxation 2,598 1,518 71 71
Adjusting items reconciling segment profit and operating profit comprise items not specifically allocated to segment
profit. These include impairment and amortisation of intangible assets; major restructuring costs, which include
impairments of tangible assets and computer software; transaction-related adjustments related to significant
acquisitions; proceeds and costs of disposals of associates, products and businesses, significant legal charges and
expenses on the settlement of litigation and government investigations, other operating income other than royalty
income and other items, and separation costs.
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 30
Legal matters
The Group is involved in significant legal and administrative proceedings, principally product liability,
intellectual property, tax, anti-trust, consumer fraud and governmental investigations, which are more fully
described in the ‘Legal Proceedings’ note in the Annual Report 2021. At 31 March 2022, the Group’s
aggregate provision for legal and other disputes (not including tax matters described on page 14) was
£0.2 billion (31 December 2021: £0.2 billion).
The Group may become involved in significant legal proceedings in respect of which it is not possible to
meaningfully assess whether the outcome will result in a probable outflow, or to quantify or reliably estimate
the liability, if any, that could result from ultimate resolution of the proceedings. In these cases, the Group
would provide appropriate disclosures about such cases, but no provision would be made.
The ultimate liability for legal claims may vary from the amounts provided and is dependent upon the outcome
of litigation proceedings, investigations and possible settlement negotiations. The Group’s position could
change over time, and, therefore, there can be no assurance that any losses that result from the outcome of
any legal proceedings will not exceed by a material amount the amount of the provisions reported in the
Group’s financial accounts.
Significant developments since the date of the Annual Report 2021 are as follows:
Dovato
In September 2019, ViiV Healthcare received a paragraph IV letter from Cipla Ltd. (Cipla) relating to Dovato
and challenging only the crystal form patent. On 4 November 2019, ViiV Healthcare filed suit against Cipla in
the US District Court for the District of Delaware. In March 2022, the parties reached a settlement, thereby
concluding the matter.
Juluca
In January 2020, ViiV Healthcare received a paragraph IV letter from Lupin Ltd. (Lupin) relating to Juluca and
challenging the crystal form patent as well as a patent relating to the combination of dolutegravir and rilpivirine
that expires on 24 January 2031. On 28 February 2020, ViiV Healthcare filed suit against Lupin on both
patents. In March 2022, the parties reached a settlement, thereby concluding the matter.
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 31
Additional information
Accounting policies and basis of preparation
This unaudited Results Announcement contains condensed financial information for the three months ended
31 March 2022, and should be read in conjunction with the Annual Report 2021, which was prepared in
accordance with United Kingdom adopted International Financial Reporting Standards. This Results
Announcement has been prepared applying consistent accounting policies to those applied by the Group in
the Annual Report 2021.
The Group has not identified any changes to its key sources of accounting judgements or estimations of
uncertainty compared with those disclosed in the Annual Report 2021.
This Results Announcement does not constitute statutory accounts of the Group within the meaning of sections
434(3) and 435(3) of the Companies Act 2006. The full Group accounts for 2021 were published in the Annual
Report 2021, which has been delivered to the Registrar of Companies and on which the report of the
independent auditor was unqualified and did not contain a statement under section 498 of the Companies
Act 2006.
COVID-19 pandemic
The potential impact of the COVID-19 pandemic on GSK’s trading performance and all its principal risks have
been assessed, with appropriate mitigation plans put in place. GSK is encouraged by the uptake in demand in
the first quarter for its medicines and vaccines, particularly Shingrix. Overall, the Company remains confident in
the underlying demand for its medicines and vaccines. GSK is encouraged by the rate at which COVID-19
vaccinations and boosters have been administered worldwide, providing support for healthcare systems ahead
of the anticipated return to normal. This continues, however, to be a dynamic situation with the risk of future
variants of concern unknown; these variants of concern could potentially impact GSK’s trading results, clinical
trials, supply continuity, and its employees materially.
Exchange rates
GSK operates in many countries, and earns revenues and incurs costs in many currencies. The results of
the Group, as reported in Sterling, are affected by movements in exchange rates between Sterling and other
currencies. Average exchange rates, as modified by specific transaction rates for large transactions, prevailing
during the period, are used to translate the results and cash flows of overseas subsidiaries, associates and
joint ventures into Sterling. Period-end rates are used to translate the net assets of those entities. The
currencies which most influenced these translations and the relevant exchange rates were:
Q1 2022 Q1 2021 2021
Average rates:
US$/£ 1.34 1.38 1.38
Euro/£ 1.19 1.14 1.16
Yen/£ 156 146 151
Period-end rates:
US$/£ 1.31 1.38 1.35
Euro/£ 1.18 1.17 1.19
Yen/£ 160 152 155
During Q1 2022 average Sterling exchange rates were stronger against the Yen and the Euro but weaker
against the US Dollar compared with the same period in 2021. Period-end Sterling exchange rates were
stronger against the Euro and the Yen and weaker against the US Dollar compared with the 2021 period-end
rates.
Name change
GSK announces that it will change its company name to GSK plc from GlaxoSmithKline plc from a date in
mid-May. A subsequent announcement will be made when the name change becomes effective. The
company’s stock ticker on the LSE and NYSE ("GSK") will not change. No action is required on the part of
any equity holders with respect to their rights as an equity holder.
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 32
Net assets
The book value of net assets increased by £1,290 million from £21,342 million at 31 December 2021 to
£22,632 million at 31 March 2022. This primarily reflected the Total profit for the period, the re-measurement
gains on the defined benefit plans plus an increase in intangible assets, other non-current assets and trade
receivables. These increases were partially offset by the decrease in fair value of equity investments and the
dividends paid during the period. Cash and cash equivalents and long term borrowings increased due to the
Consumer Healthcare bond debt issuance.
The carrying value of investments in associates and joint ventures at 31 March 2022 was £83 million
(31 December 2021: £88 million), with a market value of £83 million (31 December 2021: £88 million).
At 31 March 2022, the net deficit on the Group’s pension plans was £914 million compared with £1,129 million
at 31 December 2021. The decrease in the net deficit primarily relate to increase in the rates used to discount
UK pension liabilities from 2.0% to 2.8%, and US pension liabilities from 2.7% to 3.7%, partly offset by an
increase in the UK inflation rate from 3.2% to 3.5%, increase in the US cash balance credit rate from 2.0%
to 2.4% and lower UK asset values.
The estimated present value of the potential redemption amount of the Pfizer put option related to ViiV
Healthcare, recorded in Other payables in Current liabilities, was £1,040 million (31 December 2021:
£1,008 million).
Contingent consideration amounted to £6,169 million at 31 March 2022 (31 December 2021: £6,076 million),
of which £5,607 million (31 December 2021: £5,559 million) represented the estimated present value of
amounts payable to Shionogi relating to ViiV Healthcare and £529 million (31 December 2021: £479 million)
represented the estimated present value of contingent consideration payable to Novartis related to the
Vaccines acquisition.
Of the contingent consideration payable (on a post-tax basis) to Shionogi at 31 March 2022, £947 million
(31 December 2021: £937 million) is expected to be paid within one year.
Movements in contingent consideration are as follows:
Q1 2022
ViiV
Healthcare
£m
Group
£m
Contingent consideration at beginning of the period 5,559 6,076
Re-measurement through income statement 256 304
Cash payments: operating cash flows (183) (185)
Cash payments: investing activities (25) (26)
Contingent consideration at end of the period 5,607 6,169
Q1 2021
ViiV
Healthcare
£m
Group
£m
Contingent consideration at beginning of the period 5,359 5,869
Re-measurement through income statement 134 160
Cash payments: operating cash flows (189) (192)
Cash payments: investing activities (27) (29)
Contingent consideration at end of the period 5,277 5,808
Contingent liabilities
There were contingent liabilities at 31 March 2022 in respect of guarantees and indemnities entered into as
part of the ordinary course of the Group’s business. No material losses are expected to arise from such
contingent liabilities. Provision is made for the outcome of legal and tax disputes where it is both probable
that the Group will suffer an outflow of funds and it is possible to make a reliable estimate of that outflow.
Descriptions of the significant legal disputes to which the Group is a party are set out on page 30.
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 33
Business acquisitions
On 13 April 2022, GSK announced it had reached agreement to acquire Sierra Oncology, Inc. a Californiabased, late-stage biopharmaceutical company focused on targeted therapies for the treatment of rare forms
of cancer, for $55 per share of common stock in cash representing an approximate total equity value of
$1.9 billion (£1.5 billion). Under the terms of the agreement, the acquisition will be effected through a one-step
merger in which the shares of Sierra Oncology outstanding will be cancelled and converted into the right to
receive $55 per share in cash. Subject to customary conditions, including the approval of the merger by at
least a majority of the issued and outstanding shares of Sierra Oncology, and the expiration or earlier
termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, the
transaction is expected to close in the third quarter of 2022 or before.
Reconciliation of cash flow to movements in net debt
Q1 2022
£m
Q1 2021
£m
Net debt at beginning of the period (19,838) (20,780)
Increase/(decrease) in cash and bank overdrafts 6,922 (1,093)
Decrease in liquid investments – (18)
Net decrease in short-term loans 249 5
Increase in long-term loans (9,205) –
Repayment of lease liabilities 59 49
Cash advances and loans to third parties 2,947 –
Exchange adjustments (427) 466
Other non-cash movements (58) (31)
Decrease in net debt 487 (622)
Net debt at end of the period (19,351) (21,402)
Net debt analysis
31 March
2022
£m
31 December
2021
£m
Liquid investments 63 61
Cash and cash equivalents 10,967 4,274
Cash advances and loans to third parties 2,947 –
Short-term borrowings (4,102) (3,601)
Long-term borrowings (29,226) (20,572)
Net debt at end of the period (19,351) (19,838)
Free cash flow reconciliation
Q1 2022
£m
Q1 2021
£m
Net cash inflow from operating activities 2,542 331
Purchase of property, plant and equipment (222) (201)
Proceeds from sale of property, plant and equipment 6 37
Purchase of intangible assets (379) (153)
Proceeds from disposals of intangible assets 9 328
Net finance costs (75) (87)
Dividends from joint ventures and associates – –
Contingent consideration paid (reported in investing activities) (26) (29)
Distributions to non-controlling interests (213) (236)
Contributions from non-controlling interests 8 7
Free cash flow 1,650 (3)
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 34
R&D commentary
GSK focuses on the science of the immune system, human genetics, and advanced technologies to develop Specialty
Medicines and Vaccines in four core therapeutic areas – Infectious Diseases, HIV, Oncology and Immunology. GSK
remains open to opportunities outside of these core therapy areas, specifically those opportunities that are aligned to
the Company’s focus on the science of the immune system and human genetic validation. The table below highlights
medicines and vaccines in late-stage (phase III) development by therapy area:
Pipeline overview
Medicines and vaccines in phase III
development (including major lifecycle
innovation or under regulatory review)
21 Infectious Diseases (11)
• Bexsero infants (US) vaccine
• COVID-19 (Medicago) vaccine candidate
• COVID-19 (Sanofi) vaccine candidate
• COVID-19 (SK Bioscience) vaccine candidate
• MenABCWY (1st gen) vaccine candidate
• Menveo liquid vaccine
• MMR (US) vaccine
• Rotarix liquid (US) vaccine
• RSV older adults vaccine candidate
• gepotidacin (bacterial topoisomerase inhibitor) uUTI
and GC
• Xevudy (sotrovimab/VIR-7831) COVID-19
Oncology (4)
• Blenrep (anti-BCMA ADC) multiple myeloma
• Jemperli (PD-1 antagonist) 1L endometrial cancer
• Zejula (PARP inhibitor) 1L ovarian, lung and breast cancer
• letetresgene-autoleucel (NY-ESO-1 TCR) synovial
sarcoma/myxoid/round cell liposarcoma
Immunology (4)
• latozinemab (AL001, anti-sortilin) frontotemporal dementia
• depemokimab (LA anti-IL5 antagonist) asthma, eosinophilic
granulomatosis with polyangiitis, chronic rhinosinusitis with
nasal polyps
• Nucala chronic obstructive pulmonary disease
• otilimab (aGM-CSF inhibitor) rheumatoid arthritis
Opportunity driven (2)
• daprodustat (HIF-PHI) anaemia of chronic kidney disease
• linerixibat (IBATi) cholestatic pruritus in primary biliary
cholangitis
Total vaccines and medicines in all
phases of clinical development
64
Total projects in clinical development
(inclusive of all phases and
indications)
79
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 35
Our key growth assets by therapy area
The following outlines several key medicines and vaccines by therapy area that will help drive growth for GSK to meet its
outlooks and ambition for 2021-2026 and beyond.
Infectious Diseases
bepirovirsen (HBV ASO)
GSK is investigating bepirovirsen for the treatment of chronic hepatitis B both as a monotherapy (B-Clear) and in
combination with existing treatments (B-Together) with the aim to explore additional combinations in the future. In April
2022, the Company began the first phase II combination trial of bepirovirsen and a hepatitis B virus targeted
immunotherapy.
Key trials for bepirovirsen:
Trial name (population) Phase Design Timeline Status
B-Clear bepirovirsen
monotherapy (chronic
hepatitis B)
NCT04449029
IIb A multi-centre, randomised, partial-blind
parallel cohort study to assess the efficacy and
safety of treatment with bepirovirsen in
participants with chronic hepatitis B virus
Trial start:
Q3 2020
Active, not
recruiting
B-Together
bepirovirsen
sequential
combination therapy
with Peg-interferon
phase II (chronic
hepatitis B)
NCT04676724
II A multi-centre, randomised, open label study
to assess the efficacy and safety of sequential
treatment with bepirovirsen followed by
Pegylated Interferon Alpha 2a in participants
with chronic hepatitis B virus
Trial start:
Q1 2021
Active, not
recruiting
Bepirovirsen
sequential
combination therapy
with targeted
immunotherapy
(chronic hepatitis B)
NCT05276297
II A study on the safety, efficacy and immune
response following sequential treatment with
an anti-sense oligonucleotide against chronic
hepatitis B (CHB) and chronic hepatitis B
targeted immunotherapy (CHB-TI) in CHB
patients receiving nucleos(t)ide analogue (NA)
therapy
Trial start:
Q2 2022
Active,
recruiting
gepotidacin (bacterial topoisomerase inhibitor)
First in class novel antibiotic for the treatment of uncomplicated urinary tract infections (uUTI) and gonorrhea. Interim
analysis for EAGLE is scheduled in the second half of 2022.
Key phase III trials for gepotidacin:
Trial name (population) Phase Design Timeline Status
EAGLE-1
(uncomplicated
urogenital gonorrhea)
NCT04010539
III A randomised, multi-centre, open-label study
in adolescent and adult participants comparing
the efficacy and safety of gepotidacin to
ceftriaxone plus azithromycin in the treatment
of uncomplicated urogenital gonorrhea caused
by neisseria gonorrhoeae
Trial start:
Q4 2019
Recruiting
EAGLE-2 (females
with uUTI / acute
cystitis)
NCT04020341
III A randomised, multi-centre, parallel-group,
double-blind, double-dummy study in
adolescent and adult female participants
comparing the efficacy and safety of
gepotidacin to nitrofurantoin in the treatment of
uncomplicated urinary tract infection (acute
cystitis)
Trial start:
Q4 2019
Recruiting
EAGLE-3 (females
with uUTI / acute
cystitis)
NCT04187144
III A randomised, multi-centre, parallel-group,
double-blind, double-dummy study in
adolescent and adult female participants
comparing the efficacy and safety of
gepotidacin to nitrofurantoin in the treatment of
uncomplicated urinary tract infection (acute
cystitis)
Trial start:
Q4 2019
Recruiting
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 36
MenABCWY vaccine candidate:
GSK is developing two MenABCWY pentavalent (5-in-1) vaccines, the first generation is in late-stage development, the
second generation in an earlier stage. The goal is to help protect against all five major disease-causing serogroups. Phase
III pivotal results from the first generation MenABCWY vaccine are expected in the second half of this year.
Key phase III trials for MenABCWY vaccine candidate:
Trial name (population) Phase Design Timeline Status
MenABCWY – 019
NCT04707391
IIIb A randomised, controlled, observer-blind study
to evaluate safety and immunogenicity of
GSK’s meningococcal ABCWY vaccine when
administered in healthy adolescents and
adults, previously primed with meningococcal
ACWY vaccine
Trial start:
Q1 2021
Recruiting
MenABCWY – V72 72
NCT04502693
III A randomised, controlled, observer-blind study
to demonstrate effectiveness, immunogenicity
and safety of GSK’s meningococcal Group B
and combined ABCWY vaccines when
administered to healthy adolescents and
young adults
Trial start:
Q3 2020
Active, not
recruiting
RSV vaccine candidates
In February 2022, GSK stopped enrolment and vaccination in trials evaluating its potential respiratory syncytial virus (RSV)
maternal vaccine candidate in pregnant women. This decision does not impact the ongoing phase III trial for RSV older
adults (60 years and above). This trial remains on track with an anticipated data readout in the first half of 2022.
Key phase III trials for RSV older adult and maternal vaccine candidates:
Trial name (population) Phase Design Timeline Status
RSV OA-004
(Adults ≥60 yo)
NCT04732871
III A randomised, open-label, multi-country study
to evaluate the immunogenicity, safety,
reactogenicity and persistence of a single dose
of the RSVPreF3 OA investigational vaccine
and different revaccination schedules in adults
aged 60 years and above
Trial start:
Q1 2021
Active, not
recruiting
RSV OA-006
(Adults ≥60 yo)
NCT04886596
III A randomised, placebo-controlled, observerblind, multi-country study to demonstrate the
efficacy of a single dose of GSK’s RSVPreF3
OA investigational vaccine in adults aged 60
years and above
Trial start:
Q2 2021
Active, not
recruiting
RSV OA-007
(Adults ≥60 yo)
NCT04841577
III An open-label, randomised, controlled, multicountry study to evaluate the immune
response, safety and reactogenicity of
RSVPreF3 OA investigational vaccine when
co-administered with FLU-QIV vaccine in
adults aged 60 years and above
Trial start:
Q2 2021
Complete;
results
anticipated to
be shared
2022+
RSV OA-009
(Adults ≥60 yo)
NCT05059301
III A randomised, double-blind, multi-country
study to evaluate consistency, safety, and
reactogenicity of 3 lots of RSVPreF3 OA
investigational vaccine administrated as a
single dose in adults aged 60 years and above
Trial start:
Q4 2021
Active, not
recruiting
GRACE (pregnant
women aged 14-49
yo)
NCT04605159
III A randomised, double-blind, placebocontrolled multi-country study to demonstrate
efficacy of a single dose of unadjuvanted RSV
maternal vaccine, administered IM to pregnant
women 18 to 49 years of age, for prevention of
RSV associated LRTIs in their infants up to 6
months of age
Trial start:
Q4 2020
Trial stopped
enrolment and
vaccination:
Q1 2022
Stopped
enrolment and
vaccination
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 37
HIV
cabotegravir
In March 2022, the US Food and Drug Administration (FDA) approved an updated label for Cabenuva (cabotegravir,
rilpivirine) that streamlines the initiation process for the first and only complete long-acting HIV treatment by allowing people
to start directly with injections without an optional oral lead-in period. Additionally, the US FDA also approved Cabenuva for
the treatment of HIV-1 in virologically suppressed adolescents (HIV-1 RNA less than 50 copies per millilitre [c/mL]) who are
12 years of age or older and weigh at least 35kg on a stable antiretroviral regimen, with no history of treatment failure, and
with no known or suspected resistance to either cabotegravir or rilpivirine.
At the Conference on Retroviruses and Opportunistic Infections 2022, held virtually on 12-16 February, GSK presented
data demonstrating further evidence for the long-acting regimen of Cabenuva administered every two months. This
included the ATLAS-2M 152-week efficacy and safety findings for the treatment of HIV-1 in virologically suppressed adults,
which builds upon previous 96-week efficacy and safety data. An investigator-sponsored analysis of adolescent
perspectives toward the long-acting regimen was also presented.
Key phase III trials for cabotegravir:
Trial name (population) Phase Design Timeline Status
HPTN 083
(HIV uninfected
cisgender men and
transgender women
who have sex with
men)
NCT02720094
III A double-blind safety and efficacy study of
injectable cabotegravir compared to daily oral
tenofovir disoproxil fumarate/emtricitabine
(TDF/FTC), for Pre-Exposure Prophylaxis in
HIV-uninfected cisgender men and
transgender women who have sex with men
Trial start:
Q4 2016
Active; not
recruiting;
primary
endpoint met
(superiority)
HPTN 084
(HIV uninfected
women who are at
high risk of acquiring
HIV)
NCT03164564
III A double-blind safety and efficacy study of
long-acting injectable cabotegravir compared
to daily oral TDF/FTC for Pre-Exposure
Prophylaxis in HIV-Uninfected women
Trial start:
Q4 2017
Active; not
recruiting;
primary
endpoint met
(superiority)
ATLAS
NCT02951052
III A randomised, multi-centre, parallel-group,
non-inferiority, open-label study evaluating the
efficacy, safety, and tolerability of switching to
long-acting cabotegravir plus long-acting
rilpivirine from current INI- NNRTI-, or PIbased antiretroviral regimen in HIV-1-infected
adults who are virologically suppressed
Trial start:
Q4 2016
Active; not
recruiting;
primary
endpoint met
(non-inferiority)
ATLAS-2M
NCT03299049
IIIb A randomised, multi-centre, parallel-group,
non-inferiority, open-label study evaluating the
efficacy, safety, and tolerability of long-acting
cabotegravir plus long-acting rilpivirine
administered every 8 weeks or every 4 weeks
in HIV-1-infected adults who are virologically
suppressed
Trial start:
Q4 2017
Active; not
recruiting;
primary
endpoint met
(non-inferiority)
FLAIR
NCT02938520
III A randomised, multi-centre, parallel-group,
open-label study evaluating the efficacy,
safety, and tolerability of long-acting
intramuscular cabotegravir and rilpivirine for
maintenance of virologic suppression following
switch from an integrase inhibitor single tablet
regimen in HIV-1 infected antiretroviral therapy
naive adult participants
Trial start:
Q4 2016
Active; not
recruiting;
primary
endpoint met
(non-inferiority)
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 38
Oncology
Blenrep (belantamab mafodotin)
GSK is continuing the DREAMM clinical development programme evaluating the potential of Blenrep in a broader multiple
myeloma (MM) patient population, including as a monotherapy and in combination with standard and novel therapies in
earlier lines of treatment.
Trial name (population) Phase Design Timeline Status
DREAMM-3 (3L/4L+
MM pts who have
failed Len + PI)
NCT04162210
III An open-label, randomised study to evaluate
the efficacy and safety of single agent
belantamab mafodotin compared to
pomalidomide plus low dose dexamethasone
(pom/dex) in participants with
relapsed/refractory multiple myeloma
Trial start:
Q2 2020
Recruiting
DREAMM-7 (2L+ MM
pts)
NCT04246047
III A multi-centre, open-label, randomised study
to evaluate the efficacy and safety of the
combination of belantamab mafodotin,
bortezomib, and dexamethasone (B-Vd)
compared with the combination of
daratumumab, bortezomib and
dexamethasone (D-Vd) in participants with
relapsed/refractory multiple myeloma
Trial start:
Q2 2020
Active, not
recruiting
DREAMM-8 (2L+ MM
pts)
NCT04484623
III A multi-centre, open-label, randomised study
to evaluate the efficacy and safety of
belantamab mafodotin in combination with
pomalidomide and dexamethasone (B-Pd)
versus pomalidomide plus bortezomib and
dexamethasone (P-Vd) in participants with
relapsed/refractory multiple myeloma
Trial start:
Q4 2020
Recruiting
Jemperli (dostarlimab)
New data for Jemperli was presented at the Society of Gynaecologic Oncology (SGO) 2022 Annual Meeting on Women’s
Cancer, held on 18-21 March, in Phoenix, Arizona. A GARNET trial subgroup presentation included a post-hoc analysis
evaluating the antitumour activity and safety of Jemperli in patients with endometrial cancer by age subgroups. Additionally,
a Jemperli indirect treatment comparison compared the clinical effectiveness of Jemperli in combination with doxorubicin, a
chemotherapy medicine, in the treatment of advanced or recurrent endometrial cancer, which may help further
contextualize how Jemperli fits in the recurrent or advanced mismatch repair-deficient (dMMR) endometrial cancer
treatment landscape.
Key phase III trials for Jemperli:
Trial name (population) Phase Design Timeline Status
RUBY
ENGOT-EN6
GOG-3031 (1L Stage
III or IV endometrial
cancer)
NCT03981796
III A randomised, double-blind, multi-centre study
of dostarlimab (TSR-042) plus carboplatinpaclitaxel with and without niraparib
maintenance versus placebo plus carboplatinpaclitaxel in patients with recurrent or primary
advanced endometrial cancer
Trial start:
Q3 2019
Recruiting
Zejula (niraparib)
New data presented at the SGO 2022 Annual Meeting on Women’s Cancer included both the OVARIO and ROYAL trials.
OVARIO featured an updated analysis from this phase II study evaluating Zejula in combination with bevacizumab, an antivascular endothelial growth factor antibody (VEGFA) targeted cancer medicine, as first-line maintenance therapy in
patients with ovarian cancer following platinum-based chemotherapy and bevacizumab. ROYAL was a real-world evidence
study examining the evolution of the ovarian cancer treatment paradigm in the US and Europe from 2017 to 2020. The
findings from this study showed that the use of 1L maintenance PARP inhibitor monotherapy increased over time and the
use of VEGF inhibitor monotherapy decreased over time. These findings also showed that many patients with advanced
ovarian cancer did not receive 1L maintenance therapy and treatment patterns vary by country. In addition, GSK’s alliance
partner Zai Lab Limited presented a late-breaking oral presentation of the PRIME phase III trial, which evaluated Zejula
(independently manufactured by Zai Lab) in Chinese patients with newly diagnosed advanced ovarian cancer using an
individualised starting dose. Zejula demonstrated a statistically significant and clinically meaningful improvement in
progression-free survival (PFS) with a tolerable safety profile in the overall study population, regardless of biomarker
status, when compared to placebo.
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 39
Key phase III trials for Zejula:
Trial name (population) Phase Design Timeline Status
ZEAL-1L
(maintenance for 1L
advanced NSCLC)
NCT04475939
III A randomised, double-blind, placebocontrolled, multi-centre study comparing
niraparib plus pembrolizumab versus placebo
plus pembrolizumab as maintenance therapy
in participants whose disease has remained
stable or responded to first-line platinum-based
chemotherapy with pembrolizumab for Stage
IIIB/IIIC or IV non-small cell lung cancer
Trial start:
Q4 2020
Recruiting
ZEST (Her2- with
BRCA-mutation, or
TNBC)
NCT04915755
III A randomised double-blinded study comparing
the efficacy and safety of niraparib to placebo
in participants with either HER2-negative
BRCA-mutated or triple-negative breast cancer
with molecular disease based on presence of
circulating tumour DNA after definitive therapy
Trial start:
Q2 2021
Recruiting
FIRST (1L ovarian
cancer maintenance)
NCT03602859
III A randomised, double-blind, comparison of
platinum-based therapy with dostarlimab
(TSR-042) and niraparib versus standard of
care platinum-based therapy as first-line
treatment of stage III or IV nonmucinous
epithelial ovarian cancer
Trial start:
Q4 2018
Active, not
recruiting
Immunology
depemokimab (LA anti-IL5 antagonist)
In Q1 2022, GSK began initiating three additional phase III trials for depemokimab in eosinophil diseases, one in
eosinophilic granulomatosis with polyangiitis (EGPA) and two in chronic rhinosinusitis with nasal polyps (CRSwNP).
A fourth study in hypereosinophilic syndrome (HES) will be initiating in Q2 2022.
Key phase III trials for depemokimab:
Trial name (population) Phase Design Timeline Status
SWIFT-1 (severe
eosinophilic asthma)
NCT04719832
III A 52-week, randomised, double-blind,
placebo-controlled, parallel-group, multi-centre
study of the efficacy and safety of
depemokimab adjunctive therapy in adult and
adolescent participants with severe
uncontrolled asthma with an eosinophilic
phenotype
Trial start:
Q1 2021
Recruiting
SWIFT-2 (SEA)
NCT04718103
III A 52-week, randomised, double-blind,
placebo-controlled, parallel-group, multi-centre
study of the efficacy and safety of
depemokimab adjunctive therapy in adult and
adolescent participants with severe
uncontrolled asthma with an eosinophilic
phenotype
Trial start:
Q1 2021
Recruiting
NIMBLE (SEA)
NCT04718389
III A 52-week, randomised, double-blind, doubledummy, parallel group, multi-centre, noninferiority study assessing exacerbation rate,
additional measures of asthma control and
safety in adult and adolescent severe
asthmatic participants with an eosinophilic
phenotype treated with depemokimab
compared with mepolizumab or benralizumab
Trial start:
Q1 2021
Recruiting
ANCHOR-1
(CRSwNP)
NCT05274750
III Efficacy and safety of depemokimab in
participants with CRSwNP
Initiating Initiating
ANCHOR-2
(CRSwNP)
NCT05281523
III Efficacy and safety of depemokimab in
participants with CRSwNP
Initiating Initiating
OCEAN (EGPA)
NCT05263934
III Efficacy and safety of depemokimab compared
with mepolizumab in adults with relapsing or
refractory EGPA
Initiating Initiating
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 40
otilimab (aGM-CSF inhibitor)
GSK is investigating otilimab, an anti-GM-CSF monoclonal antibody, as a potential new treatment for rheumatoid arthritis
(RA). We expect to report results from three phase III studies by the end of 2022.
Key phase III trials for otilimab:
Trial name (population) Phase Design Timeline Status
contRAst-1
(Moderate to severe
RA MTX-IR patients)
NCT03980483
III A 52-week, multi-centre, randomised, double
blind, efficacy and safety study comparing
otilimab with placebo and with tofacitinib, in
combination with methotrexate in participants
with moderately to severely active rheumatoid
arthritis who have an inadequate response to
methotrexate
Trial start:
Q2 2019
Active, not
recruiting
contRAst-2 (Moderate
to severe RA DMARDIR patients)
NCT03970837
III A 52-week, multi-centre, randomised, double
blind, efficacy and safety study, comparing
otilimab with placebo and with tofacitinib in
combination with conventional synthetic
DMARDs, in participants with moderately to
severely active rheumatoid arthritis who have
an inadequate response to conventional
synthetic DMARDs or biologic
Trial start:
Q2 2019
Active, not
recruiting
contRAst-3 (Moderate
to severe RA patients
IR to biologic DMARD
and/or JAKs)
NCT04134728
III A 24-week, multi-centre, randomised, doubleblind, efficacy and safety study, comparing
otilimab with placebo and with sarilumab, in
combination with conventional synthetic
DMARDs, in participants with moderately to
severely active rheumatoid arthritis who have
an inadequate response to biological DMARDs
and/or Janus Kinase inhibitors
Trial start:
Q4 2019
Complete;
results
anticipated to
be shared
H2 2022
Opportunity driven
daprodustat (oral hypoxia-inducible factor prolyl hydroxylase inhibitor)
The European Medicines Agency (EMA) validated the marketing authorisation application (MAA) and the US FDA accepted
the New Drug Application (NDA) for daprodustat based on the positive data from the ASCEND phase III clinical trial
programme. The programme included five pivotal trials assessing the efficacy and safety of daprodustat for the treatment of
anaemia of chronic kidney disease (CKD). The data confirmed the potential of daprodustat as a new oral medicine for
patients with anaemia of CKD in both non-dialysis and dialysis settings. The data were previously presented in November
2021 at the American Society of Nephrology’s Kidney Week 2021 and simultaneously published in the New England
Journal of Medicine.
Trial name (population) Phase Design Timeline Status
ASCEND-D (Dialysis
subjects with anaemia
of CKD)
NCT02879305
III A randomised, open-label (sponsor-blind),
active-controlled, parallel-group, multi-centre,
event driven study in dialysis subjects with
anemia associated with chronic kidney disease
to evaluate the safety and efficacy of
daprodustat compared to recombinant human
erythropoietin, following a switch from
erythropoietin-stimulating agents
Reported Complete;
primary
endpoint met
ASCEND-ID (Incident
Dialysis subjects with
anaemia of CKD)
NCT03029208
III A 52-week open-label (sponsor-blind),
randomised, active-controlled, parallel-group,
multi-centre study to evaluate the efficacy and
safety of daprodustat compared to
recombinant human erythropoietin in subjects
with anaemia of chronic kidney disease who
are initiating dialysis
Reported Complete;
primary
endpoint met
ASCEND-TD (Dialysis
subjects with anaemia
of CKD)
NCT03400033
III A randomised, double-blind, active-controlled,
parallel-group, multi-centre study in
hemodialysis participants with anaemia of
chronic kidney disease to evaluate the
efficacy, safety and pharmacokinetics of threetimes weekly dosing of daprodustat compared
to recombinant human erythropoietin, following
a switch from recombinant human
erythropoietin or its analogs
Reported Complete;
primary
endpoint met
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 41
ASCEND-ND (Nondialysis subjects with
anaemia of CKD)
NCT02876835
III A randomised, open-label (sponsor-blind),
active-controlled, parallel-group, multi-centre,
event driven study in non-dialysis subjects with
anaemia of chronic kidney disease to evaluate
the safety and efficacy of daprodustat
compared to darbepoetin alfa
Reported Complete;
primary
endpoint met
ASCEND-NHQ (Nondialysis subjects with
anaemia of CKD)
NCT03409107
III A 28-week, randomised, double-blind,
placebo-controlled, parallel-group, multicentre, study in recombinant human
erythropoietin (rhEPO) naïve non-dialysis
participants with anemia of chronic kidney
disease to evaluate the efficacy, safety and
effects on quality of life of daprodustat
compared to placebo
Reported Complete;
primary
endpoint met
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 42
Reporting definitions
Total and Adjusted results
Total reported results represent the Group’s overall performance.
GSK also uses a number of adjusted, non-IFRS, measures to report the performance of its business. Adjusted
results and other non-IFRS measures may be considered in addition to, but not as a substitute for or superior to,
information presented in accordance with IFRS. Adjusted results are defined on page 20 and other non-IFRS
measures are defined below.
Free cash flow
Free cash flow is defined as the net cash inflow/outflow from operating activities less capital expenditure on property,
plant and equipment and intangible assets, contingent consideration payments, net finance costs, and dividends
paid to non-controlling interests plus proceeds from the sale of property, plant and equipment and intangible assets,
and dividends received from joint ventures and associates. It is used by management for planning and reporting
purposes and in discussions with and presentations to investment analysts and rating agencies. Free cash flow
growth is calculated on a reported basis. A reconciliation of net cash inflow from operations to free cash flow is set
out on page 33.
Free cash flow conversion
Free cash flow conversion is free cash flow as a percentage of earnings.
Working capital
Working capital represents inventory and trade receivables less trade payables.
CER and AER growth
In order to illustrate underlying performance, it is the Group’s practice to discuss its results in terms of constant
exchange rate (CER) growth. This represents growth calculated as if the exchange rates used to determine the
results of overseas companies in Sterling had remained unchanged from those used in the comparative period.
CER% represents growth at constant exchange rates. £% or AER% represents growth at actual exchange rates.
Net debt
Net debt is defined as total borrowings less cash, cash equivalents, liquid investments, and short-term loans to
third parties that are subject to an insignificant risk of change in value.
COVID-19 solutions
COVID-19 solutions include the sales of pandemic adjuvant and other COVID-19 solutions including vaccine
manufacturing and Xevudy and the associated costs but does not include reinvestment in R&D. This categorisation
is used by management and we believe is helpful to investors through providing clarity on the results of the Group
by showing the contribution to growth from COVID-19 solutions.
New GSK
New GSK refers to the current GSK group excluding the Consumer Healthcare business that is intended to be
(or will have been) demerged.
General Medicines
General Medicines are usually prescribed in the primary care or community settings by general healthcare
practitioners. For GSK, this includes medicines in inhaled respiratory, dermatology, antibiotics and other diseases.
Specialty Medicines
Specialty Medicines are typically prescription medicines used to treat complex or rare chronic conditions. For GSK,
this comprises medicines in infectious diseases, HIV, oncology, immunology and respiratory.
Organic revenue growth
Organic growth represents revenue growth as determined under IFRS excluding the impact of acquisitions,
divestments and closures of brands or businesses, revenue attributable to manufacturing service agreements
relating to divestments and the closure of sites or brands, at CER.
Biopharma
Biopharma refers to sales in Commercial Operations.
Brand names and partner acknowledgements
Brand names appearing in italics throughout this document are trademarks of GSK or associated companies or used under licence by the Group.
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 43
Guidance, assumptions and cautionary statements
2022 guidance
For new GSK we expect sales to grow between 5% to 7% CER and Adjusted operating profit to grow between 12% to
14% CER as compared with 2021. This guidance is provided at CER and excludes the commercial benefit of COVID-19
solutions.
Assumptions related to 2022 guidance
In outlining the guidance for 2022, the Group has made certain assumptions about the healthcare sector, the different
markets in which the Group operates and the delivery of revenues and financial benefits from its current portfolio, pipeline
and restructuring programmes. The Group also assumes that the demerger of our Consumer Healthcare business will be
delivered in July 2022 and this guidance relates only to new GSK.
The Group has made planning assumptions for 2022 that healthcare systems will approach normality as the year
progresses, and we expect sales of Specialty Medicines to grow approximately 10% CER and sales of General Medicines
to show a slight decrease, primarily reflecting increased genericisation of established Respiratory medicines. Vaccines
sales are expected to grow at a low teens percentage at CER for the year. However, as noted at the time of announcing
full-year 2021 results, we anticipated governments’ prioritisation of COVID-19 vaccination programmes and ongoing
measures to contain the pandemic would result in some continued disruption to adult immunisations. In the first-quarter
2022 Shingrix demonstrated strong demand recovery, particularly in the US, as well as channel inventory build and the
benefit of a favourable comparator to Q1 2021. Despite the potential for short-term pandemic disruption, we continue to
expect strong double-digit growth and record annual sales for Shingrix in 2022 based on strong demand in existing markets
and continued geographical expansion. Guidance also includes the future benefit in royalty income from the settlement and
license agreement with Gilead announced on 1 February 2022.
These planning assumptions as well as operating profit guidance and dividend expectations assume no material
interruptions to supply of the Group’s products, no material mergers, acquisitions or disposals, no material litigation or
investigation costs for the company (save for those that are already recognised or for which provisions have been made)
and no change in the Group’s shareholdings in ViiV Healthcare. The assumptions also assume no material changes in the
healthcare environment or unexpected significant changes in pricing as a result of government or competitor action. The
2022 guidance factors in all divestments and product exits announced to date.
The Group’s guidance assumes successful delivery of the Group’s integration and restructuring plans. It also assumes
that the separation programme to deliver the demerger of the Consumer Healthcare business is delivered successfully.
Material costs for investment in new product launches and R&D have been factored into the expectations given. Given
the potential development options in the Group’s pipeline, the outlook may be affected by additional data-driven R&D
investment decisions. The guidance is given on a constant currency basis.
Assumptions and cautionary statement regarding forward-looking statements
The Group’s management believes that the assumptions outlined above are reasonable, and that the guidance, outlooks,
ambitions and expectations described in this report are achievable based on those assumptions. However, given the
forward-looking nature of these guidance, outlooks, ambitions and expectations, they are subject to greater uncertainty,
including potential material impacts if the above assumptions are not realised, and other material impacts related to foreign
exchange fluctuations, macro-economic activity, the impact of outbreaks, epidemics or pandemics, such as the COVID-19
pandemic and ongoing challenges and uncertainties posed by the COVID-19 pandemic for businesses and governments
around the world, changes in legislation, regulation, government actions or intellectual property protection, product
development and approvals, actions by our competitors, and other risks inherent to the industries in which we operate.
This document contains statements that are, or may be deemed to be, "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 to historical or current facts. They use words such as ‘anticipate’, ‘estimate’, ‘expect’,
‘intend’, ‘will’, ‘project’, ‘plan’, ‘believe’, ‘target’ and other words and terms of similar meaning in connection with any
discussion of future operating or financial performance. In particular, these include statements relating to future actions,
prospective products or product approvals, future performance or results of current and anticipated products, sales efforts,
expenses, the outcome of contingencies such as legal proceedings, dividend payments and financial results. Other than in
accordance with its legal or regulatory obligations (including under the Market Abuse Regulation, the UK Listing Rules and
the Disclosure and Transparency Rules of the Financial Conduct Authority), the Group undertakes no obligation to update
any forward-looking statements, whether as a result of new information, future events or otherwise. The reader should,
however, consult any additional disclosures that the Group may make in any documents which it publishes and/or files with
the SEC. All readers, wherever located, should take note of these disclosures. Accordingly, no assurance can be given that
any particular expectation will be met and investors are cautioned not to place undue reliance on the forward-looking
statements.
All outlooks, ambitions considerations should be read together with; for Haleon the section "Assumptions and cautionary
statement and regarding forward-looking statements" on page 163 of the Haleon Capital Markets Day all presentation
slides dated 28 February 2022, and for GSK pages 5-7 of the Stock Exchange announcement relating to an update to
investors dated 23 June 2021 and the Guidance, assumptions and cautionary statements of our Q2 2021 earnings release.
Forward-looking statements are subject to assumptions, inherent risks and uncertainties, many of which relate to factors
that are beyond the Group’s control or precise estimate. The Group cautions investors that a number of important factors,
including those in this document, could cause actual results to differ materially from those expressed or implied in any
forward-looking statement. Such factors include, but are not limited to, those discussed under Item 3.D ‘Risk Factors’ in
the Group’s Annual Report on Form 20-F for 2021 and any impacts of the COVID-19 pandemic. Any forward looking
statements made by or on behalf of the Group speak only as of the date they are made and are based upon the knowledge
and information available to the Directors on the date of this report.
Press release
Q1 Results summary Research and development Quarterly performance Total and Adjusted results Financial information
Issued: Wednesday, 27 April 2022, London, U.K. 44
Independent review report to GlaxoSmithKline plc
We have been engaged by GlaxoSmithKline plc ("the Company") to review the condensed financial information in
the Results Announcement of the Company for the three months ended 31 March 2022.
What we have reviewed
The condensed financial information comprises:
• the income statement and statement of comprehensive income for the three month period ended
31 March 2022 on pages 22 to 23;
• the balance sheet as at 31 March 2022 on page 26;
• the statement of changes in equity for the three month period then ended on page 27;
• the cash flow statement for the three month period then ended on page 28 and;
• the accounting policies and basis of preparation and the explanatory notes to the condensed financial
information on pages 24 to 25 and 29 to 33 that have been prepared applying consistent accounting policies to
those applied by the Group in the Annual Report 2021, which was prepared in accordance with International
Financial Reporting Standards ("IFRS") as adopted by the United Kingdom.
We have read the other information contained in the Results Announcement, including the non-IFRS measures
contained on pages 24 to 25 and 29 to 33, and considered whether it contains any apparent misstatements or
material inconsistencies with the information in the condensed set of financial statements.
This report is made solely to the Company in accordance with International Standard on Review Engagements
(UK and Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity"
issued by the Auditing Practices Board. Our work has been undertaken so that we might state to the Company those
matters we are required to state to it in an independent review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our review work,
for this report, or for the conclusions we have formed.
Directors’ responsibilities
The Results Announcement of GlaxoSmithKline plc, including the condensed financial information, is the
responsibility of, and has been approved by, the directors. The directors are responsible for preparing the Results
Announcement by applying consistent accounting policies to those applied by the Group in the Annual Report 2021,
which are prepared in accordance with IFRS as adopted by the United Kingdom.
Our responsibility
Our responsibility is to express to the Company a conclusion on the interim financial information in the Results
Announcement based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410
"Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial information consists of making inquiries,
primarily of persons responsible for financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in accordance with International
Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed financial
information in the Results Announcement for the three months ended 31 March 2022 are not prepared, in all
material respects in accounting policies set out in the accounting policies and basis of preparation section on
page 31.
Deloitte LLP
Statutory Auditor
London, United Kingdom
27 April 2022

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