On April 1, 2022 GlaxoSmithKline plc ("GSK") reported its financial reporting under regular review to ensure that it remains current and in line with both the latest regulatory requirements and developing best practice within the Pharmaceutical industry (Press release, GlaxoSmithKline, APR 1, 2022, View Source [SID1234611352]).
Revised reporting segments for Pharmaceuticals and Vaccines
GSK announced at the Investor Update on 23 June 2021 that revised reporting segments for new GSK would be presented from the first quarter 2022 results. The new operating segments are reported based on the financial information provided to the Chief Executive Officer and the responsibilities of the GSK Leadership Team (GLT).
Previously, GSK reported results under four segments: Pharmaceuticals; Pharmaceuticals R&D; Vaccines and Consumer Healthcare. From the first quarter 2022 results GSK will report results under three segments on the following basis:
● The Commercial Operations segment includes the results that were previously reported under the Pharmaceuticals segment and the Vaccines segment but now excludes expenditure related to research & development included in the segment below. This change reflects the closer integration and management of the commercial,
manufacturing and other operations of the Pharmaceutical and Vaccines portfolio. The Commercial Operations segment continues to include the ViiV Healthcare commercial operating profit. The research and development managed expenditure related to ViiV Healthcare (previously reported within the Pharmaceuticals segment) and
Vaccines (previously reported within the Vaccines segment) will be reported as part of the Research and Development segment. The Commercial Operations segment will also include the Group’s global health initiatives that were previously separately reported through the Pharmaceuticals R&D and Vaccines segments as well as within
Corporate and other unallocated costs;
● The Research and Development segment includes the costs previously reported under the Pharmaceuticals R&D segment. The segment will also include the research and development managed expenditure related to ViiV Healthcare (previously reported within the Pharmaceuticals segment) and Vaccines (previously reported within the
Vaccines segment). The new segment reflects the changes that have been made to the management of research, development and other related costs (such as regulatory and administration costs) through the "One R&D" organisational changes. The Research and Development segment now excludes costs related to the Group’s global health
initiatives;
● The Consumer Healthcare segment will be reported as a "Continuing operation" operating segment until such time as the formal criteria for treating Consumer Healthcare as a ‘Discontinued operation’ have been satisfied (currently expected in Q2 2022). We will consolidate the business for reporting purposes until the demerger has
completed.
Corporate and other unallocated costs include the costs of corporate functions that are not managed by and are not the responsibility of the operating segments.
The revised segment turnover and operating profit tables below set out the new operating segments that will be used from the first quarter 2022 results, as applied to the 2021 quarterly reported turnover and profits.
Product sales to be reported within three product groups – Specialty Medicines, General Medicines and Vaccines
GSK will report product sales within three product groups from the first quarter 2022 results:
● Specialty Medicines products will include GSK’s marketed products for HIV, oncology, immuno-inflammation, respiratory and other specialty medicines (including Nucala) and the pandemic solution, Xevudy;
● General Medicines products, which include products previously reported as Established Pharmaceuticals and sales of Trelegy Ellipta and Anoro Ellipta (previously reported within the Respiratory category under Specialty products). These products are typically accessed by patients through primary care settings;
● Vaccines products, including sales of GSK’s AS03 adjuvant as part of the pandemic solutions.
Disclosure of Consumer Healthcare category for brands divested and under review to be removed
Following the completion of the Consumer Healthcare brand divestment programme in the first quarter 2021, the sales of the remaining products that were reported under the brands divested and under review category and which have not been divested will be reported under their original category again from the first quarter 2022 results. In addition, the sales of the brands divested in the first quarter 2021 will also not be reported in the separate brands divested category for the comparative periods of 2021.
As a result of these changes, from the first quarter 2022 the presentation of a separate category for brands divested and under review will no longer be required.
The revised turnover tables below set out the revised format for reporting sales that will be used from the first quarter 2022 results, as applied to the 2021 quarterly reported product sales.
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