UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Form 6-K
 
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
 
 
 
For the month of January 2024
 
Commission File Number 001-15170
 
 
GSK plc
(Translation of registrant's name into English)
 
 
980 Great West Road, Brentford, Middlesex, TW8 9GS
(Address of principal executive office)
 
 
 
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
 
Form 20-F . . . .X. . . . Form 40-F . . . . . . . .
 
 
 
 
GSK delivers strong 2023 performance and upgrades growth outlooks
 
 
Broad-based performance drives sales, profits and earnings growth:
Total 2023 sales £30.3 billion +5% and +14% ex COVID
Vaccines sales +25%, +24% ex COVID. Shingrix £3.4 billion +17%, Arexvy £1.2 billion
Specialty Medicines sales -8%, +15% ex COVID with HIV +13%; General Medicines sales +5%
Total operating profit and Total continuing EPS for 2023 reflects strong growth, with lower charges for contingent consideration liabilities remeasurement
Adjusted operating profit +12% (with further positive impact of +4% ex COVID) and Adjusted EPS +16% (with further positive impact of +6% ex COVID). This reflected strong sales ex COVID and higher royalty income, partly offset by increased investment in R&D and new product launches
(Financial Performance – 2023 results unless otherwise stated, growth % and commentary at CER, ex COVID is excluding COVID-19 solutions as defined on page 53).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2023
 
Q4 2023
 
£m
 
% AER
 
% CER
 
£m
 
% AER
 
% CER
Turnover
30,328
 
3
 
5
 
8,052
 
9
 
15
Turnover ex COVID
30,134
 
12
 
14
 
8,032
 
12
 
17
Total operating profit
6,745
 
5
 
10
 
573
 
(69)
 
(60)
Total continuing EPS
121.6p
 
10
 
16
 
8.6p
 
(77)
 
(68)
Adjusted operating profit
8,786
 
8
 
12
 
1,752
 
10
 
21
Adjusted operating margin %
29.0%
 
1.2ppts
 
1.8ppts
 
21.8%
 
0.1ppts
 
1.2ppts
Adjusted EPS
155.1p
 
11
 
16
 
28.9p
 
12
 
25
Cash generated from operations
8,096
 
2
 
 
 
3,681
 
75
 
 
 
 
 
 
Organic R&D delivery and targeted business development supports future growth:
71 Vaccines and Specialty Medicines now in clinical development, including 18 in phase III/registration
Strong pipeline progress, with 4 major product approvals: Arexvy RSV vaccine; Apretude for HIV prevention; Ojjaara for myelofibrosis and Jemperli in 1L endometrial cancer
Targeted business development further strengthens the pipeline including: acquisition of Bellus Health and proposed acquisition of Aiolos Bio (Respiratory), licence agreements with Janssen (Infectious Diseases) and Hansoh Pharma (Oncology)
Significant late-stage R&D milestones expected in 2024, including: approval of Arexvy in 50-59 year-olds; regulatory submission for meningitis (ABCWY) vaccine; phase III data for depemokimab (severe asthma), Nucala (COPD), gepotidacin (UTIs/gonorrhoea), Jemperli (endometrial cancer)
 
 
 
 
2024 guidance and 2023/2024 dividends:
Expect 2024 turnover growth of between 5 to 7%; Adjusted operating growth of between 7 to 10%; Adjusted EPS growth of between 6 to 9%
Increased dividend of 16p declared for Q4 2023; 58p FY 2023; 60p expected for 2024
 
 
 
 
Upgrade to longer-term outlooks:
2021-2026 outlook increased to sales more than +7% CAGR and Adjusted operating profit more than +11%  CAGR
2031 sales outlook increased to more than £38 billion; Adjusted operating margins broadly stable through dolutegravir patent loss of exclusivity
 
 
Guidance all at CER and excluding COVID-19 solutions 
 
 
 
Emma Walmsley, Chief Executive Officer, GSK:
“GSK delivered excellent performance in 2023, with clear highlights being the exceptional launch of Arexvy and continued progress in our pipeline. We are now planning for at least 12 major launches from 2025, with new Vaccines and Specialty Medicines for infectious diseases, HIV, respiratory and oncology. As a result of this progress and momentum, we expect to deliver another year of meaningful sales and earnings growth in 2024, and we are upgrading our growth outlooks for 2026 and 2031. We remain focused on delivering this potential - and more - to prevent and change the course of disease for millions of people.”
 
The Total results are presented in summary above and on page 8 and Adjusted results reconciliations are presented on pages 20, 21, 23 and 24. Adjusted results are a non-IFRS measure excluding discontinued operations and other adjustments 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 18 and £% or AER% growth, CER% growth, turnover excluding COVID-19 solutions and other non-IFRS measures are defined on page 53, COVID-19 solutions are defined on page 53. GSK provides guidance on an Adjusted results basis only, for the reasons set out on page 18. All expectations, guidance and targets regarding future performance and dividend payments should be read together with ‘Guidance and outlooks, assumptions and cautionary statements’ on pages 54 and 55. 2021-2026 CAGR is for 5 years to 2026 with 2021 as the base year.


2024 Guidance
GSK provides its full-year guidance at constant exchange rates (CER). All expectations and full-year growth rates exclude any contributions from COVID-19 solutions.
 
 
 
  Turnover is expected to increase between 5 to 7 per cent
  Adjusted operating profit is expected to increase between 7 to 10 per cent
  Adjusted earnings per share is expected to increase between 6 to 9 per cent
 
 
 
This guidance is supported by the following turnover expectations for full-year 2024 at CER:
 
 
 
 
 
  Vaccines
expected increase of high single-digit to low double-digit per cent in turnover
  Specialty Medicines
expected increase of low double-digit per cent in turnover
  General Medicines
expected decrease of mid-single-digit per cent in turnover
 
 
 
Adjusted Operating profit is expected to grow between 7 to 10 per cent at CER, despite a 6 percentage point impact to Operating Profit growth following the loss of Gardasil royalties effective from the beginning of 2024. GSK expects to deliver leverage at a gross margin level due to improved product mix from Vaccines and Specialty Medicines growth and continued operational efficiencies. In addition, GSK anticipates further leverage in Operating Profit due to a step down in SG&A growth to a low single-digit increase. R&D is expected to increase broadly in line with sales to support growth of the pipeline.
 
Adjusted Earnings per share is now expected to increase between 6 to 9 per cent at CER, reflecting higher operating profit and more favourable net finance costs. Expectations for non-controlling interests remain unchanged relative to 2023, and GSK anticipates, as previously communicated, an increase in the adjusted effective tax rate to around 17% following implementation of a global minimum corporate income tax rate aligned with the Organisation for Economic Co-Operation and Development ‘Pillar 2’ initiative.
 
 
 
Additional commentary
The Dividend policy and the expected pay-out ratio remain unchanged. Consistent with this, and reflecting strong business performance during the year, GSK now expects to declare an increased dividend of 16p for Q4 2023 and 58p per share for the full year 2023. GSK's future dividend policy and guidance regarding the expected dividend pay-out in 2024 are provided on page 39.
 
 
 
COVID-19 solutions
For the full year 2024, GSK does not anticipate any further COVID-19 pandemic-related sales or operating profit. The adverse impact of lower sales of COVID-19 solutions in 2024 is anticipated to be one percentage point of growth in sales and two percentage points in Adjusted operating profit.
 
 
 
2021-26 and 2031 Outlooks
In 2021, GSK set out outlooks and ambitions to shareholders, including for a “step-change” in performance. These followed a significant transformation in GSK’s structure, strategy, capital allocation and culture. Since then, GSK has made significant progress, to deliver consecutive quarters of sales and earnings growth, and invest in new Vaccines and Specialty Medicines, to reshape, strengthen and advance its R&D portfolio, post the demerger of Consumer Healthcare. With this progress made, GSK has today announced upgraded outlooks, from those previously given, for the period 2021-2026 and for 2031. For the period 2021-2026, GSK now expects sales to grow more than 7% on a CAGR basis and adjusted operating profit to increase more than 11%, on the same basis. This compares to previous outlooks of more than 5% and more than 10% respectively. Adjusted operating profit margin in 2026 is now expected to be more than 31%.
 
By 2031, GSK now expects to achieve sales of more than £38 billion on a risk-adjusted basis and at CER. This is an increase of £5 billion compared to the estimate given in 2021 and continues to exclude any contributions from early-stage pipeline assets, further anticipated business development and Blenrep. GSK expects to maintain a continued strong focus on margin improvements, while retaining flexibility to invest in future growth. Recognising that GSK will likely face loss of exclusivity for dolutegravir during 2028 to 2030 in US and EU, with the majority of impact 2029 to 2030, GSK has today stated that it expects operating margins to be broadly stable through this period. GSK expects an effective transition within its HIV portfolio towards new long-acting treatment and prevention therapies, margin mix benefit from growth in higher operating margin Vaccine and Specialty Medicine products, and a continued focus on achievable productivity gains, notably in supply chain and in SG&A.
 
All expectations, guidance and outlooks regarding future performance and dividend payments should be read together with ‘Guidance and outlooks, assumptions and cautionary statements’ on page 54.
 
 
If exchange rates were to hold at the closing rates on 24 January 2024 ($1.27/£1, €1.17/£1 and Yen 188/£1) for the rest of 2024, the estimated impact on 2024 Sterling turnover growth for GSK would be -3% and if exchange gains or losses were recognised at the same level as in 2023, the estimated impact on 2024 Sterling Adjusted Operating Profit growth for GSK would be -5%.
 
 
 
Results presentation
 
A conference call and webcast for investors and analysts of the quarterly results will be hosted by Emma Walmsley, CEO, at 11am GMT (US EST at 6am) on 31 January 2024. Presentation materials will be published on www.gsk.com prior to the webcast and a transcript of the webcast will be published subsequently.
 
Notwithstanding the inclusion of weblinks, information available on the company’s website, or from non GSK sources, is not incorporated by reference into this Results Announcement.
 
 
 
Performance: turnover
 
 
 
 
 
 
 
 
 
 
 
 
 
Turnover
2023
 
Q4 2023
 
 
£m
 
Growth
AER%
 
Growth
CER%
 
£m
 
Growth
AER%
 
Growth
CER%
 
Shingles
3,446
 
16
 
17
 
908
 
18
 
23
 
Meningitis
1,260
 
13
 
14
 
273
 
20
 
26
 
RSV (Arexvy)
1,238
 
 
 
529
 
 
 
Influenza
504
 
(29)
 
(29)
 
95
 
(66)
 
(64)
 
Established Vaccines
3,266
 
6
 
7
 
771
 
4
 
8
 
Vaccines ex COVID
9,714
 
23
 
24
 
2,576
 
28
 
33
 
Pandemic vaccines
150
 
>100
 
>100
 
7
 
(88)
 
(86)
 
Vaccines
9,864
 
24
 
25
 
2,583
 
25
 
29
 
HIV
6,444
 
12
 
13
 
1,773
 
6
 
10
 
Respiratory/Immunology and
  Other
3,025
 
16
 
18
 
863
 
20
 
25
 
Oncology
731
 
21
 
23
 
244
 
55
 
62
 
Specialty Medicines ex COVID
10,200
 
14
 
15
 
2,880
 
13
 
17
 
Xevudy
44
 
(98)
 
(98)
 
13
 
(90)
 
(90)
 
Specialty Medicines
10,244
 
(9)
 
(8)
 
2,893
 
8
 
12
 
Respiratory
6,825
 
4
 
6
 
1,746
 
4
 
9
 
Other General Medicines
3,395
 
(5)
 
2
 
830
 
(12)
 
(2)
 
General Medicines
10,220
 
1
 
5
 
2,576
 
(2)
 
5
 
Total
30,328
 
3
 
5
 
8,052
 
9
 
15
 
Total ex COVID
30,134
 
12
 
14
 
8,032
 
12
 
17
 
By Region:
 
 
 
 
 
 
 
 
 
 
 
 
US
15,820
 
9
 
9
 
4,380
 
21
 
26
 
Europe
6,564
 
3
 
2
 
1,657
 
 
 
International
7,944
 
(6)
 
1
 
2,015
 
(4)
 
6
 
Total
30,328
 
3
 
5
 
8,052
 
9
 
15
 
 
 
Turnover ex COVID is excluding COVID-19 solutions and is a non-IFRS measure defined on page 53 with the reconciliation to the IFRS measure Turnover included in the table above. Financial Performance – Q4 2023 results unless otherwise stated, growth % and commentary at CER.
 
 
 
 
 
 
 
 
 
 
 
 
 
2023
 
Q4 2023
 
 
£m
AER
CER
 
£m
AER
CER
Vaccines
Total
9,864
24%
25%
 
2,583
25%
29%
Excluding COVID
9,714
23%
24%
 
2,576
28%
33%
 
 
Double-digit growth for Vaccines in the full year and quarter was driven by the successful launch of Arexvy in the US and continued strong uptake of Shingrix in International and Europe. Pandemic vaccines sales mostly include GSK’s share of 2023 contracted European volumes related to a COVID-19 booster vaccine co-developed with Sanofi.
 
 
 
 
 
 
 
 
 
Shingles
3,446
16%
17%
 
908
18%
23%
 
 
Shingrix, a vaccine against herpes zoster (shingles), grew 17% full year and 23% in the quarter on increased demand and favourable pricing, with Q4 2023 representing the highest ever quarter of sales. Growth was driven by public funding expansion and strong private uptake in International and Europe. These regions represented 45% of global turnover, compared to a third in 2022, with Shingrix launched in 39 markets outside of the US, most of which have cumulative immunisation rates below 4%. International sales were driven by launch uptake across several markets, strong momentum and channel inventory build in China due to transition between distributors, and a new public programme in Australia. Sales in Europe included deliveries for the UK National Immunisation Programme which began offering Shingrix vaccination in September. In the US, full year retail demand grew 7% while overall sales declined 4% versus a challenging comparator period in which there was a higher non-retail purchasing. In Q4 2023 US turnover growth of 6% benefitted from planned wholesaler inventory reductions in Q4 2022. The US cumulative immunisation penetration at the end of Q3 2023 reached 35% of the more than 120 million US adults(1) who are currently recommended to receive Shingrix, up 7 percentage points since the same time last year.
 
 
 
(1)
United States Census Bureau, International Database, Year 2023.
 
 
 
 
 
 
 
 
 
 
2023
 
Q4 2023
 
£m
AER
CER
 
£m
AER
CER
Meningitis
1,260
13%
14%
 
273
20%
26%
 
Full year double-digit Meningitis vaccine sales growth was largely delivered by Bexsero, a vaccine against meningitis B, primarily driven by inclusion in National Immunisation Programmes in Europe. In Q4 2023, Bexsero sales grew in all regions reflecting increased demand and public funding expansion. Menveo, a vaccine against meningitis ACWY, grew full year and in the quarter due to the favourable impact of a US CDC (Center for Disease Control) stockpile borrow in Q3 2022 and replenishment in Q4 2023. Meningitis growth benefitted from the favourable impact of CDC stockpile movements by 6 percentage points in the full year and 14 percentage points in Q4 2023. 

 
 
 
 
 
 
 
 
 
RSV (Arexvy)
1,238
 
529
 
 
Arexvy, the world’s first approved respiratory syncytial virus (RSV) vaccine for older adults, achieved more than £1.2 billion in sales driven by strong uptake and leading market share, delivering an outstanding launch. Almost all sales were in the US where Arexvy is available in all major retail pharmacies with competitive contracting in place. Retailers administered more than 90% of doses, and Arexvy achieved more than two-thirds of the share of retail vaccinations in both the full year and quarter. Approximately 6 million of the 83 million US adults(1) aged 60 and older at risk have been vaccinated with Arexvy.
 
 
 
 
 
 
 
 
 
 
Influenza
504
(29%)
(29%)
 
95
(66%)
(64%)
 
 
Fluarix/FluLaval sales declined in 2023 in line with expectations driven by competitive pressure and lower market demand primarily in the US, where the Q4 2023 sales decrease was also negatively impacted by quarterly supply phasing and RAR adjustments.
 
 
 
 
 
 
 
 
 
 
Established Vaccines
3,266
6%
7%
 
771
4%
8%
 
 
Full year Established Vaccines growth was driven by Rotarix favourable US CDC stockpile movements, MMR/V vaccines increased supply in International, and Hepatitis vaccine performance related to the travel market recovery. In the quarter, growth was driven by US CDC stockpile replenishment of Infanrix/Pediarix in the US and also MMR/V vaccines increased supply in International. Established Vaccines growth excluding the impact of CDC stockpile movements was 4% in the full year and 6% in Q4 2023.
 
 
 
 
 
 
 
 
 
 
 
Specialty Medicines
Total
10,244
(9%)
(8%)
 
2,893
8%
12%
Excluding COVID
10,200
14%
15%
 
2,880
13%
17%
 
 
Specialty Medicines growth (excluding COVID-19 solutions) of 15% full year and 17% in Q4 2023 reflected continued growth momentum on the HIV portfolio, and growth acceleration in both Oncology and Respiratory/Immunology and Other. COVID-19 solutions negatively impacted growth full year by 23 percentage points and in the quarter by 5 percentage points.
 
 
 
 
 
 
 
 
 
 
HIV
6,444
12%
13%
 
1,773
6%
10%
 
 
The growth of HIV in Q4 2023 and full year was primarily driven by a 2 percentage point increase in market share within a broadly flat global treatment market, attributable to patient demand for the Oral 2DR (Dovato, Juluca) and Long-Acting medicines (Cabenuva, Apretude). Q4 2023 performance benefitted from continued patient demand, driven by the Oral 2DR and Long-Acting medicines which contributed approximately ten percentage points of growth. Full year growth was driven by patient demand of ten percentage points, with the remainder from favourable pricing dynamics and tender growth. Dovato continues to be the highest selling product in the HIV portfolio with sales of £516 million in the quarter.
 
 
 
 
 
 
 
 
 
 
Oral 2DR and Long Acting
3,337
40%
40%
 
968
24%
28%
 
 
Oral 2DR (Dovato, Juluca) and Long-Acting medicine (Cabenuva, Apretude) sales growth continues and now represents 55% of the total HIV portfolio compared to 46% for Q4 2022, driven by market share growth of 4 percentage points versus Q4 2022. Long-Acting medicine sales in the quarter were £275 million, growing £133 million versus Q4 2022 and representing 16% of total HIV portfolio. Cabenuva sales in Q4 2023 were £223 million, reflecting strong patient demand, high levels of market access, and reimbursement in the  US and EU.
 
 
 
 
 
 
 
 
 
 
Respiratory/Immunology and Other
3,025
16%
18%
 
863
20%
25%
 
 
This therapy area includes sales of Nucala and Benlysta, and Jesduvroq in the US and Duvroq in Japan for patients with anaemia due to chronic kidney disease. There was consistent and sustained double-digit growth in the full year in both Benlysta and Nucala, with growth acceleration in Q4 2023.
 
(1)
United States Census Bureau, International Database, Year 2023.
 
 
 
 
 
 
 
 
 
 
 
2023
 
Q4 2023
 
£m
AER
CER
 
£m
AER
CER
Nucala
1,655
16%
18%
 
471
19%
25%
 
 
Nucala, is an IL-5 antagonist monoclonal antibody treatment for severe asthma, with additional indications including chronic rhinosinusitis with nasal polyps, eosinophilic granulomatosis with polyangiitis (EGPA) and hypereosinophilic syndrome (HES). Continued strong growth in all regions in the full year and in the quarter reflected high patient demand in severe eosinophilic asthma, and additionally from increasing sales and growth contributions from the new indications. Growth in Q4 2023 accelerated due to stronger US performance resulting from increasing new patient starts coupled with channel inventory build.
 
 
 
 
 
 
 
 
 
 
Benlysta
1,349
18%
19%
 
389
19%
25%
 
 
Benlysta, a monoclonal antibody treatment for Lupus, continues to show consistent growth representing strong demand in US and Europe, with bio penetration and volume uptake in certain International markets, particularly in Japan and China. Q4 2023 growth acceleration to 25% driven by US performance coupled with the impacts of channel inventory build, uplifted the full year growth to 19%.
 
 
 
 
 
 
 
 
 
 
Oncology
731
21%
23%
 
244
55%
62%
 
 
Oncology demonstrated strong growth in the full year and in Q4 2023 driven by Jemperli and Zejula performance, and uptake of Ojjaara post US launch in Q3 2023, partially offset by the impact of Blenrep withdrawal from the US market in November 2022. Growth of Jemperli continued to accelerate in Q4 2023, particularly in the US post approval in Q3 2023 for frontline treatment in combination with chemotherapy for patients with dMMR/MSI-H primary advanced or recurrent endometrial cancer.
 
 
 
 
 
 
 
 
 
 
Zejula
523
13%
15%
 
152
22%
28%
 
 
Zejula, a PARP inhibitor treatment for ovarian cancer, grew 15% in the full year with strong growth from all regions, with US growth in the first line indication more than offsetting the reduction in use in second line following the update to US prescribing information agreed with the FDA in Q4 2022. Zejula demonstrated strong growth of 28% in Q4 2023, driven by continued US performance and growth following the launch of the tablet formulation, positively impacted by RAR movements, as well as continued positive momentum in Europe and International.
 
 
 
 
 
 
 
 
 
 
General Medicines
10,220
1%
5%
 
2,576
(2%)
5%
 
 
Growth in the full year was driven by both Respiratory and Other General Medicines, with ongoing strong demand for Trelegy in all regions, Anoro in Europe and International, and a continued post pandemic recovery of the antibiotic market in Europe and International regions.
 
 
 
 
 
 
 
 
 
 
Respiratory
6,825
4%
6%
 
1,746
4%
9%
 
 
Performance in the full year and in Q4 2023 reflected growth of Trelegy and the single inhaled triple therapy class across all regions, and of Anoro in Europe and International.
 
 
 
 
 
 
 
 
 
 
Trelegy
2,202
27%
29%
 
589
29%
35%
 
 
Trelegy, is the most prescribed single inhaler triple therapy (SITT) treatment worldwide for COPD and asthma. Strong growth in the full year and in Q4 2023 was delivered across all regions, reflecting increased patient demand, growth of the SITT market and penetration of the class. Growth momentum continues, supported by the outputs of recently updated primary care guidelines from the Global Initiative for Chronic Obstructive Lung Disease. Growth in Q4 2023 was positively impacted by favourable RAR adjustments, accounting for 5 percentage points of growth.
 
 
 
 
 
 
 
 
 
 
Seretide/Advair
1,139
(2%)
1%
 
276
(16%)
(12%)
 
 
Seretide/Advair is an ICS/LABA treatment for asthma and COPD. In the full year 2023, Seretide/Advair sales growth increased 1% primarily reflecting favourable US pricing. However this was offset by generic erosion impacts in Europe and certain International markets. In Q4 2023, sales decreased 12% and reflected continued generic erosion from competitor products in Europe and International.  In the US, growth was impacted by unfavourable RAR adjustments and the impact of US of channel inventory reduction ahead of 2024 price changes.
 
 
 
 
 
 
 
 
 
 
Other General Medicines
3,395
(5%)
2%
 
830
(12%)
(2%)
 
 
Low single digit growth of 2% full year reflected ongoing post pandemic demand for anti-infectives in Europe and International, and certain third party manufacturing arrangements. The decline of 2% in Q4 2023 is adversely impacted by unfavourable RAR adjustments, accounting for 2 percentage points of decline. Overall growth in this product group continues to be impacted by ongoing generic competition.
 
By Region
 
 
 
 
 
 
 
 
 
 
 
2023
 
Q4 2023
 
£m
AER
CER
 
£m
AER
CER
US
Total
15,820
9%
9%
 
4,380
21%
26%
 
Excluding COVID
15,810
15%
16%
 
4,369
21%
26%
 
In the full year 2023, sales growth was adversely impacted by 7 percentage points due to decreased sales of Xevudy, however the decrease in sales had no impact in Q4 2023, as Xevudy sales in 2022 were predominantly realised in the first quarter.
 
Vaccines grew strongly in the full year and in Q4 2023 driven by Arexvy launch uptake and leading market share, partly offset by competition and lower market demand for Influenza vaccines. Growth benefitted from favourable US CDC stockpile movements by 4 percentage points in the full year and in the quarter.
 
Specialty Medicines grew in the full year and in Q4 2023 driven by a strong HIV performance, Benlysta and Nucala continued growth, and strong Oncology growth despite partial offset from the impact of the withdrawal of Blenrep in November 2022.
 
General Medicines growth in Q4 2023 was largely driven by Trelegy from increased patient demand and growth of the SITT market, partially offset by Established Respiratory and Other General Medicines.
 
 
 
 
 
 
 
 
 
 
 
Europe
Total
6,564
3%
2%
 
1,657
 
Excluding COVID
6,431
10%
8%
 
1,648
4%
4%
 
 
 
COVID-19 solutions impacted growth in the full year by 6 percentage points and in the quarter by 4 percentage  points. Excluding the impact of COVID-19 solutions, Europe delivered strong growth of 8% in the full year and continued to grow in Q4 2023 by 4%.
 
Vaccines growth reflected Shingrix national immunisation programme initiation in the UK and launch uptake across several markets, together with Bexsero national immunisation campaigns in France and Spain, and ongoing travel vaccine recovery.
 
Specialty Medicines double digit growth in the full year and in the quarter was driven by growth in HIV, Oncology, Benlysta and Nucala including the impact of new indication launches.
 
General Medicines low single digit growth was maintained in the full year, with a low single digit percentage decline in the quarter driven by Established Respiratory performance.
 
 

 
 
 
 
 
 
 
 
International
Total
7,944
(6%)
1%
 
2,015
(4%)
6%
 
Excluding COVID
7,893
7%
15%
 
2,015
1%
12%
 
 
COVID-19 solutions impacted growth in the full year by 14 percentage points and in the quarter by 6 percentage points. Excluding the impact of COVID-19 solutions, International continued to grow in Q4 2023 by 12% and in the full year by 15%, with strong growth across all product groups.
 
The growth in the quarter at AER of 1% compared to growth at CER of 12% was driven by year on year exchange movements Q4 2023 vs Q4 2022 in a number of emerging market countries.
 
Vaccines double digit growth was driven by Shingrix launch uptake across several markets, strong momentum and channel inventory build in China, and a new public programme in Australia. Established and Meningitis vaccines also contributed to the growth.
 
Specialty Medicines grew in HIV, Nucala, Benlysta and Zejula.
 
General Medicines growth was driven by Trelegy and growth across Established Respiratory. Other General Medicines growth was driven by Augmentin on strong post pandemic antibiotic demand.
 
 
 
Financial performance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Results
2023
 
Q4 2023
 
£m
 
% AER
 
% CER
 
£m
 
% AER
 
% CER
 
 
 
 
 
 
 
 
 
 
 
 
Turnover
30,328
 
3
 
5
 
8,052
 
9
 
15
Cost of sales
(8,565)
 
(10)
 
(10)
 
(2,418)
 
8
 
10
Selling, general and administration
(9,385)
 
12
 
14
 
(2,678)
 
10
 
16
Research and development
(6,223)
 
13
 
14
 
(2,047)
 
14
 
16
Royalty income
953
 
26
 
26
 
235
 
14
 
14
Other operating income/(expense)
(363)
 
 
 
 
 
(571)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating profit
6,745
 
5
 
10
 
573
 
(69)
 
(60)
Net finance expense
(677)
 
(16)
 
(15)
 
(193)
 
(21)
 
(18)
Share of after tax profit/(loss) of associates
  and joint ventures
(5)
 
 
 
 
 
(1)
 
 
 
 
Profit/(loss) on disposal of interest in
  associates
1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Profit before taxation
6,064
 
8
 
14
 
379
 
(77)
 
(67)
 
 
 
 
 
 
 
 
 
 
 
 
Taxation
(756)
 
 
 
 
 
19
 
 
 
 
Tax rate %
12.5%
 
 
 
 
 
(5.0%)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Profit after taxation
5,308
 
8
 
14
 
398
 
(76)
 
(67)
Profit attributable to non-controlling
  interests
380
 
 
 
 
 
48
 
 
 
 
Profit attributable to shareholders
4,928
 
 
 
 
 
350
 
 
 
 
 
5,308
 
8
 
14
 
398
 
(76)
 
(67)
 
 
 
 
 
 
 
 
 
 
 
 
Earnings per share
121.6p
 
10
 
16
 
8.6p
 
(77)
 
(68)
 
Financial Performance – Q4 2023 results unless otherwise stated, growth % and commentary at CER.
 
 
 
Adjusted results
Reconciliations between Total results and Adjusted results for Q4 2023, Q4 2022, Full Year 2023 and Full Year 2022 are set out on pages 20, 21, 23 and 24.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2023
 
Q4 2023
 
£m
 
% AER
 
% CER
 
£m
 
% AER
 
% CER
Turnover
30,328
 
3
 
5
 
8,052
 
9
 
15
Cost of sales
(7,716)
 
(12)
 
(11)
 
(2,163)
 
7
 
8
Selling, general and administration
(9,029)
 
11
 
13
 
(2,588)
 
6
 
12
Research and development
(5,750)
 
14
 
14
 
(1,784)
 
17
 
20
Royalty income
953
 
26
 
26
 
235
 
14
 
14
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating profit
8,786
 
8
 
12
 
1,752
 
10
 
21
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted profit before taxation
8,112
 
10
 
15
 
1,560
 
15
 
27
Taxation
(1,257)
 
10
 
15
 
(235)
 
37
 
52
Adjusted profit after taxation
6,855
 
10
 
15
 
1,325
 
11
 
23
Adjusted profit attributable to non-controlling interests
572
 
 
 
 
 
152
 
 
 
 
Adjusted profit attributable to shareholders
6,283
 
 
 
 
 
1,173
 
 
 
 
 
6,855
 
10
 
15
 
1,325
 
11
 
23
Earnings per share
155.1p
 
11
 
16
 
28.9p
 
12
 
25
 
 
 
 
 
 
 
 
 
 
 
 
2023
 
Q4 2023
 
 
£m
AER
CER
 
£m
AER
CER
Cost of sales
Total
8,565
(10%)
(10%)
 
2,418
8%
10%
% of sales
28.2%
(4.3%)
(4.6%)
 
30.0%
(0.3%)
(1.2%)
Adjusted
7,716
(12%)
(11%)
 
2,163
7%
8%
% of sales
25.4%
(4.4%)
(4.6%)
 
26.9%
(0.7%)
(1.5%)
 
Total and Adjusted cost of sales as a percentage of sales decreased in the full year and Q4 2023 primarily reflecting lower sales of lower margin Xevudy compared to 2022. Excluding Xevudy, the full year and the quarter benefitted from an increasing margin contribution from Vaccines sales, particularly the launch of Arexvy in Q3 2023 in the US and Shingrix outside the US. In addition, Specialty Medicines, particularly HIV, contributed to the improved margin, as well as continued operational efficiencies. This was partly offset by adverse inventory provision adjustments in the year as well as inflationary impact on input costs.

 
 
 
 
 
 
 
 
 
 
 
2023
 
Q4 2023
 
 
£m
AER
CER
 
£m
AER
CER
Selling, general & administration
Total
9,385
12%
14%
 
2,678
10%
16%
% of sales
30.9%
2.4%
2.3%
 
33.3%
0.2%
0.4%
Adjusted
9,029
11%
13%
 
2,588
6%
12%
% of sales
29.8%
2.1%
1.9%
 
32.1%
(0.9%)
(0.7%)
 
 
Growth in Total and Adjusted SG&A in 2023 primarily reflected increased investment for growth in Vaccines, including disease awareness, launch and global market expansion for Arexvy, and investment behind global market expansion and disease awareness for Shingrix. In Specialty Medicines, increased investment was targeted behind long-acting injectables in HIV and the launch of Ojjaara for myelofibrosis in Oncology. This was partly offset by the continuing benefit of restructuring and tight control of ongoing costs. 2023 also reflected the Zejula royalty dispute in Q1 2023. Total SG&A also included an increase in significant legal costs (see details on page 22).
 
 
 
 
 
 
 
 
 
 
 
 
2023
 
Q4 2023
 
 
£m
AER
CER
 
£m
AER
CER
Research &
development
Total
6,223
13%
14%
 
2,047
14%
16%
% of sales
20.5%
1.8%
1.5%
 
25.4%
1.1%
0.3%
Adjusted
5,750
14%
14%
 
1,784
17%
20%
% of sales
19.0%
1.7%
1.4%
 
22.2%
1.5%
0.9%
 
R&D operating expense growth in 2023 was driven by investment across the portfolio.

In the late stage, increased investment in Vaccines was driven by continued acceleration and progression of the pipeline including RSV, pneumococcal, mRNA and therapeutic HSV vaccines.
 
Respiratory/Immunology investment continued in depemokimab in the Phase III programmes in asthma and nasal polyps together with camlipixant a new asset for refractory chronic cough, Nucala in COPD, paediatric Benlysta and CCL 17 in osteo arthritic pain. This was offset by decreased expense in the completion of the clinical programme for otilimab.
 
Infectious Diseases investment in bepirovirsen for treatment of chronic hepatitis B increased to support both monotherapy and combination programmes. Investment in key assets in oncology continued such as Jemperli and Ojjaara but were offset by reduction in the terminated Cell and Gene Therapy programme.
 
In the early-stage, investment increased in IL18 for atopic dermatitis and in the HIV portfolio, focused on next generation long-acting treatments and preventative medicines.
 
In addition to the key drivers for the full year, Q4 2023 also reflected investments for continued acceleration of the portfolio and the newly acquired camlipixant asset, together with the cost of reorganisation of the Research unit.
 
Total R&D included higher impairment charges compared with 2022 and Q4 2022.
 
 
 
 
 
 
 
 
 
 
 
 
 
2023
 
Q4 2023
 
 
£m
AER
CER
 
£m
AER
CER
Royalty income
Total
953
26%
26%
 
235
14%
14%
 
Adjusted
953
26%
26%
 
235
14%
14%
 
Growth in Total and Adjusted royalty income in the full year and Q4 2023 primarily related to Gardasil royalties, which were £472 million in 2023 and £80 million in the quarter, as well as Kesimpta and Biktarvy royalties. The overwhelming majority of the income from Gardasil royalties ceased at the end of 2023.
 
 
 
 
 
 
 
 
 
 
 
 
2023
 
Q4 2023
 
 
£m
AER
CER
 
£m
AER
CER
Other operating
income/(expense)
Total
(363)
(54%)
(54%)
 
(571)
>(100%)
>(100%)
 
 
The full year other operating expense reflected a charge of £546 million (2022: £1,726 million) arising from the remeasurement of contingent consideration liabilities and the liabilities for the Pfizer put option, and a fair value loss of £17 million (2022: £229 million gain) on the retained stake in Haleon plc (Haleon), partly offset by £200 million (2022: £306 million) of other net income primarily related to equity investments and milestone income (including £49 million dividends received from the retained investment in Haleon). In Q1 2022 upfront income of £0.9 billion was received from the settlement with Gilead Sciences, Inc. (Gilead).
 
In Q4 2023 other operating expense reflected a charge of £430 million (Q4 2022: £3 million gain) arising from the remeasurement of contingent consideration liabilities and the liabilities for the Pfizer, Inc. (Pfizer) put option, and a fair value loss of £172 million (Q4 2022: £606 million gain) on the retained stake in Haleon, partly offset by net income of £31 million (Q4 2022: £135 million) primarily received from equity investments and milestone income.
 
 
 
 
 
 
 
 
 
 
 
 
 
2023
 
Q4 2023
 
 
£m
AER
CER
 
£m
AER
CER
Operating profit
Total
6,745
5%
10%
 
573
(69%)
(60%)
 
% of sales
22.2%
0.3%
1.0%
 
7.1%
(18.2%)
(16.6%)
 
Adjusted
8,786
8%
12%
 
1,752
10%
21%
 
% of sales
29.0%
1.2%
1.8%
 
21.8%
0.1%
1.2%
 
 
Total operating profit margin was higher in 2023 due to profitable growth across the portfolio as well as favourable movements in contingent consideration liabilities, partly offset by an unfavourable comparison due to the £0.9 billion upfront income received from the settlement with Gilead in Q1 2022. The quarter is impacted by unfavourable movements in contingent consideration liabilities and fair value losses on the retained stake in Haleon (Q4 2022 fair value gains).
 
2023 and Q4 2023 Adjusted operating profit benefitted from strong sales, favourable product mix and increased royalty income partly offset by increased investment behind product launches and in R&D. The full year also included increased legal charges primarily relating to the Zejula royalty dispute.
 
In 2023 the adverse impact of lower sales of COVID-19 solutions was 4 percentage points of Adjusted operating profit growth, with a reduction in Adjusted operating profit margin of 0.4 percentage points. In the quarter the adverse impact of lower sales of COVID-19 solutions was 5 percentage points of operating profit growth, with minimal impact on Adjusted operating profit margin.
 
 
 
 
 
 
 
 
 
 
 
 
 
2023
 
Q4 2023
 
 
£m
AER
CER
 
£m
AER
CER
Adjusted operating
profit by segment
Commercial Operations
14,656
8%
10%
 
3,612
12%
20%
% of sales
48.3%
2.0%
2.1%
 
44.9%
1.2%
2.1%
R&D
(5,607)
11%
11%
 
(1,731)
14%
17%
 
 
Commercial Operations Adjusted operating profit in full year and quarter benefitted from strong sales and favourable product mix (with minimal Xevudy sales) and increased royalty income, partly offset by increased investment in growth and launch assets as well as an increase in legal provisions in 2023.
 
The R&D segment operating expenses growth in the full year was driven by progression of the late stage in Vaccines, Respiratory/Immunology and Infectious Diseases. This included pneumococcal and mRNA programmes together with the newly acquired camlipixant and ongoing investment in key programmes such as depemokimab and bepirovirsen. Q4 2023 also reflected investments for continued acceleration of the portfolio, together with the cost of reorganisation of the Research unit.
 
 
 
 
 
 
 
 
 
 
 
 
 
2023
 
Q4 2023
 
 
£m
AER
CER
 
£m
AER
CER
Net finance costs
Total
677
(16%)
(15%)
 
193
(21%)
(18%)
 
Adjusted
669
(15%)
(15%)
 
191
(19%)
(16%)
 
 
The decrease in net finance costs in the full year and Q4 2023 was mainly driven by the net savings from maturing bonds including the Sterling Notes repurchase in Q4 2022 and higher interest income on cash, partly offset by higher interest on short-term financing.
 
 
 
 
 
 
 
 
 
 
 
 
2023
 
Q4 2023
 
 
£m
AER
CER
 
£m
AER
CER
Taxation
Total
756
7%
14%
 
(19)
>(100%)
(7%)
 
Tax rate %
12.5%
 
 
 
(5.0%)
 
 
 
Adjusted
1,257
10%
15%
 
235
37%
52%
 
Tax rate %
15.5%
 
 
 
15.1%
 
 
 
 
The full year charge of £756 million represented an effective tax rate on Total results of 12.5% and reflected the different tax effects of the various Adjusting items.
 
 
 
 
 
 
 
 
 
 
 
 
 
2023
 
Q4 2023
 
 
£m
AER
CER
 
£m
AER
CER
Non-controlling
interests ("NCIs")
Total
380
(17%)
(17%)
 
48
(62%)
(55%)
Adjusted
572
(4%)
(4%)
 
152
2%
9%
 
 
The decrease in Total profit from continuing operations allocated to NCIs in the full year was primarily driven by lower ViiV Healthcare profits with an allocation of £374 million (2022: £416 million), as well as lower net profits in some of the Group's other entities. Q4 2023 was impacted primarily by lower ViiV Healthcare profits with an allocation of £50 million (Q4 2022: £124 million).
 
In the full year, the decrease in Adjusted profit from continuing operations allocated to NCIs reflected lower net profits in some of the Group's other entities with NCIs, partly offset by higher profits in ViiV Healthcare with an allocation of £566 million (2022: £551 million). The increase in Q4 2023 primarily reflected higher profit allocations from ViiV Healthcare of £154 million (Q4 2022: £148 million), partly offset by lower net profits in some of the Group’s other entities with NCIs.
 
 
 
 
 
 
 
 
 
 
 
 
 
2023
 
Q4 2023
 
 
£p
AER
CER
 
£p
AER
CER
Earnings per share
Total continuing
121.6p
10%
16%
 
8.6p
(77%)
(68%)
Adjusted
155.1p
11%
16%
 
28.9p
12%
25%
 
 
Adjusted EPS in the full year and quarter reflected the growth in Adjusted Operating profit as well as lower finance costs. 2023 growth also reflected a favourable benefit from lower non-controlling interests.
 
In 2023 and Q4 2023, lower sales from lower margin COVID-19 solutions reduced Adjusted EPS by six and seven percentage points respectively.
 
In 2023, the increase in Total continuing EPS primarily reflected lower charges related to the remeasurement of contingent consideration liabilities, partly offset by a fair value loss on the retained stake in Haleon compared to a fair value gain in the same period last year. In addition, there is an unfavourable comparison due to upfront income received from the settlement with Gilead in Q1 2022. In Q4 2023, the decrease in Total continuing EPS is driven by higher charges related to the remeasurement of contingent consideration liabilities and a fair value loss on the retained stake in Haleon (Q4 2022 gain).
 
 
Currency impact on results
The results for the 2023 are based on average exchange rates, principally £1/$1.24, £1/€1.15 and £1/Yen 175. The results for Q4 2023 are based on average exchange rates, principally £1/$1.25, £1/€1.15 and £1/Yen 183. The period-end exchange rates were £1/$1.27, £1/€1.15 and £1/Yen 180. Comparative exchange rates are given on page 41.                  
 
 
 
 
 
 
 
 
 
 
 
 
Year to Date
 
Q4 2023
 
 
£m/£p
AER
CER
 
£m/£p
AER
CER
Turnover
 
30,328
3%
5%
 
8,052
9%
15%
Earnings per share
Total
121.6p
10%
16%
 
8.6p
(77%)
(68%)
Adjusted
155.1p
11%
16%
 
28.9p
12%
25%
 
 
In 2023 the adverse currency impact primarily reflected weakening of emerging market currencies and the Yen against Sterling and strengthening of Sterling against the US Dollar, partly offset by weakening of Sterling against the Euro. Exchange gains or losses on the settlement of intercompany transactions had a minimal impact on Adjusted EPS.
 
In Q4 2023, the adverse currency impact primarily reflected the strengthening of Sterling against the US Dollar as well as the weakening of emerging market currencies against Sterling. Exchange gains or losses on the settlement of intercompany transactions had a one percentage point favourable impact on Adjusted EPS.
 
Cash generation  
 
Cash flow
 
2023
£m
 
2022
£m
 
Q4 2023
£m
 
Q4 2022
£m
 
 
 
 
 
 
 
 
Cash generated from operations attributable to continuing
  operations (£m)
8,096
 
7,944
 
3,681
 
2,101
Cash generated from operations attributable to discontinued
  operations (£m)
 
932
 
 
4
 
 
 
 
 
 
 
 
Total cash generated from operations (£m)
8,096
 
8,876
 
3,681
 
2,105
 
 
 
 
 
 
 
 
Total net cash generated from operating activities (£m)
6,768
 
7,403
 
3,196
 
1,905
 
 
 
 
 
 
 
 
Free cash inflow/(outflow) from continuing operations* (£m)
3,409
 
3,348
 
2,095
 
895
Free cash flow from continuing operations growth (%)
2%
 
1%
 
>100%
 
(62%)
Free cash flow conversion from continuing operations* (%)
69%
 
75%
 
>100%
 
60%
Total net debt** (£m)
15,040
 
17,197
 
15,040
 
17,197
 
*
Free cash flow from continuing operations and free cash flow conversion are defined on page 53. Free cash flow from continuing operations is analysed on page 44.
**
Net debt is analysed on page 44.
 
2023
 
Cash generated from operating activities from continuing operations was £8,096 million (2022: £7,944 million). The increase primarily reflected higher adjusted operating profit, a favourable comparison on the timing of net Xevudy related receipts and payments, and lower pension contributions, partly offset by an unfavourable comparison due to the upfront income from the settlement with Gilead received in Q1 2022, increase in trade receivables due to higher sales including the launch of Arexvy, lower payable balances reflecting increased investment in 2022 and higher inventory.
 
Total contingent consideration cash payments in 2023 were £1,145 million (2022: £1,137 million), including cash payments made to Shionogi & Co. Ltd (Shionogi) of £1,106 million (2022: £1,100 million). £1,134 million (2022: £1,058 million) of these were recognised in cash flows from operating activities.
 
Free cash inflow was £3,409 million for 2023 (2022: £3,348 million inflow). In addition to the increase in cash generated from operating activities from continuing operations, the increase in free cash inflow in the full year was driven by lower net interest paid and lower dividends paid to non-controlling interests, partly offset by lower proceeds from the sale of intangible assets.
 
Q4 2023
 
Cash generated from operating activities from continuing operations for the quarter was £3,681 million (Q4 2022: £2,101 million). The increase primarily reflected higher receivables' collections, driven by the launch of Arexvy in Q3 2023, partly offset by timing of returns and rebates.
 
Total contingent consideration cash payments in the quarter were £285 million (Q4 2022: £273 million), including cash payments made to Shionogi of £272 million (Q4 2022: £257 million). £281 million (Q4 2022: £269 million) of these were recognised in cash flows from operating activities.
 
Free cash inflow was £2,095 million for the quarter (Q4 2022: £895 million inflow). In addition to the increase in cash generated from operating activities from continuing operations, the increase in free cash inflow in the quarter was driven by lower net interest paid and lower dividends paid to non-controlling interests, partly offset by higher tax payments and lower proceeds from the sale of intangible assets.
 
Total Net debt
 
At 31 December 2023, net debt was £15,040 million, compared with £17,197 million at 31 December 2022, comprising gross debt of £18,018 million and cash and liquid investments of £2,978 million.  See net debt information on page 43.
 
Net debt decreased by £2.2 billion primarily due to £3.4 billion free cash inflow, £1.9 billion proceeds from the disposal of investments, including the partial sale of the retained stake in Haleon, and net favourable exchange impacts of £0.6 billion from the translation of non-Sterling denominated debt. These were partly offset by dividends paid to shareholders of £2.2 billion and the net acquisition cost of BELLUS Health Inc. (Bellus) for £1.5 billion.
 
At 31 December 2023, GSK had short-term borrowings (including overdrafts and lease liabilities) repayable within 12 months of £2,813 million with loans of £1,433 million repayable in the subsequent year.
 
On 17 January 2024, GSK completed the sale of 300 million shares in Haleon raising gross proceeds of £978 million. See post balance sheet event note on page 44.
 
 
 
Contents
Page
Q4 2023 pipeline highlights
14
ESG
16
Total and Adjusted results
18
Income statement
26
Statement of comprehensive income
27
Balance sheet
28
Statement of changes in equity
29
Cash flow statement
30
Sales tables
32
Segment information
36
Legal matters
38
Returns to shareholders
39
Additional information
40
Net debt information
43
Post balance sheet event note
44
Related party transactions
44
R&D commentary
45
Reporting definitions
53
Guidance, assumptions and cautionary statements
54
 
 
 
Contacts
 
GSK plc (LSE/NYSE:GSK) is a global biopharma company with a purpose to unite science, technology, and talent to get ahead of disease together. Find out more at www.gsk.com.
 
 
 
 
 
 
GSK enquiries:
 
 
 
Media
Tim Foley
+44 (0) 20 8047 5502
(London)
 
Kathleen Quinn
+1 202 603 5003
(Washington)
 
 
 
 
Investor Relations
Nick Stone
+44 (0) 7717 618834
(London)
 
James Dodwell
+44 (0) 7881 269066
(London)
 
Mick Readey
+44 (0) 7990 339653
(London)
 
Joshua Williams
+44 (0) 7385 415719
(London)
 
Jeff McLaughlin
+1 215 589 3774
(Philadelphia)
 
Frances De Franco
+1 215 751 4855
(Philadelphia)
 
 
 
 
 
 
 
 
Registered in England & Wales:
No. 3888792
 
Registered Office:
980 Great West Road
Brentford, Middlesex
TW8 9GS
 
 
Q4 2023 pipeline highlights (since 1 November 2023)
 
 
 
 
 
 
 
 
Medicine/vaccine
Trial (indication, presentation)
Event
Regulatory approvals or other regulatory action
Jemperli
RUBY (1L mismatch repair deficient/microsatellite instability-high (dMMR/MSI-H) endometrial cancer)
Regulatory approval (EU)
Omjjara (momelotinib)
MOMENTUM (myelofibrosis with anaemia)
Regulatory approval (EU)
Nucala
Severe eosinophilic asthma
Regulatory approval (CN)
Regulatory submissions or acceptances
Arexvy
RSV, adults aged 50-59 years
Regulatory acceptance (EU)
Arexvy
RSV, adults aged 50-59 years
Regulatory acceptance (JP)
Phase III data readouts or other significant events
Blenrep
DREAMM-7 (2L + multiple myeloma)
Positive phase III data readout
Jemperli/Zejula
RUBY part 2 (1L endometrial cancer)
Positive phase III data readout
 
 
Anticipated news flow
 
 
 
 
 
Timing
Medicine/vaccine
Trial (indication, presentation)
Event
H1 2024
Arexvy
RSV, older adults aged 50-59 years
Regulatory submission (US)
gepotidacin
EAGLE-1 (urogenital gonorrhoea)
Phase III data readout
MenABCWY (gen 1)
vaccine candidate
Meningococcal ABCWY
Regulatory submission (US)
depemokimab
SWIFT-1/2 (severe asthma)
Phase III data readout
Nucala
Chronic rhinosinusitis with nasal polyps
Regulatory submission (CN)
Jemperli
RUBY part 1 (OS overall population, 1L endometrial cancer)
Regulatory submission (US)
momelotinib
MOMENTUM (myelofibrosis with anaemia)
Regulatory decision (JP)
Zejula
FIRST (1L maintenance ovarian cancer)
Phase III data readout
H2 2024
Arexvy
RSV, older adults aged
50-59 years
Regulatory decision
(US, EU, JP)
gepotidacin
EAGLE-2/3 (uncomplicated urinary tract infection)
Regulatory submission (US)
MenABCWY (gen 1)
vaccine candidate
Meningococcal ABCWY
Regulatory submission (EU)
depemokimab
ANCHOR-1/2 (chronic rhinosinusitis with nasal polyps)
Phase III data readout
depemokimab
ANCHOR-1/2 (chronic rhinosinusitis with nasal polyps)
Regulatory submission (US)
depemokimab
SWIFT-1/2 (severe asthma)
Regulatory submission (US)
Nucala
Chronic rhinosinusitis with nasal polyps
Regulatory decision (JP)
Nucala
MATINEE (chronic obstructive pulmonary disease)
Phase III data readout
Nucala
MATINEE (chronic obstructive pulmonary disease)
Regulatory submission (US)
Blenrep
DREAMM-8 (2L + multiple myeloma)
Phase III data readout
cobolimab
COSTAR (non-small cell lung cancer)
Phase III data readout
Zejula
ZEAL (1L maintenance non-small cell lung cancer)
Phase III data readout
linerixibat
GLISTEN (cholestatic pruritus in primary biliary cholangitis)
Phase III data readout
 
Anticipated news flow continued
 
 
 
 
 
Timing
Medicine/vaccine
Trial (indication, presentation)
Event
2025
gepotidacin
EAGLE-2/3 (uncomplicated urinary tract infection)
Regulatory decision (US)
gepotidacin
EAGLE-1 (urogenital gonorrhoea)
Regulatory submission (US)
gepotidacin
EAGLE-1 (urogenital gonorrhoea)
Regulatory decision (US)
MenABCWY (gen 1) vaccine candidate
Meningitis ABCWY
Regulatory decision (US, EU)
tebipenem pivoxil
PIVOT-PO (complicated urinary tract infection)
Phase III data readout
tebipenem pivoxil
PIVOT-PO (complicated urinary tract infection)
Regulatory submission (US)
camlipixant
CALM-1/2 (refractory chronic cough)
Phase III data readout
camlipixant
CALM-1/2 (refractory chronic cough)
Regulatory submission
(US, EU)
depemokimab
SWIFT-1/2 (severe asthma)
Regulatory decision (US)
depemokimab
ANCHOR-1/2 (chronic rhinosinusitis with nasal polyps)
Regulatory decision (US)
depemokimab
OCEAN (eosinophilic granulomatosis with polyangiitis)
Phase III data readout
Nucala 
Chronic rhinosinusitis with nasal polyps
Regulatory decision (CN)
Nucala
MATINEE (chronic obstructive pulmonary disease)
Regulatory decision (US)
Nucala
MATINEE (chronic obstructive pulmonary disease)
Regulatory submission
(CN, EU)
Blenrep 
DREAMM-7/8 (2L+ multiple myeloma)
Regulatory submission
(US, EU, CN, JP)
Blenrep
DREAMM-7/8 (2L+ multiple myeloma)
Regulatory decision
(US, EU, CN, JP)
cobolimab
COSTAR, (2L non-small cell lung cancer)
Regulatory submission
(US, EU)
Jemperli
RUBY part 1 (1L endometrial cancer)
Regulatory decision (US)
 
linerixibat
GLISTEN (cholestatic pruritus in primary biliary cholangitis)
Regulatory submission
(US, EU, CN, JP)
 
linerixibat
GLISTEN (cholestatic pruritus in primary biliary cholangitis)
Regulatory decision (US)
 
Refer to pages 45 to 52 for further details on several key medicines and vaccines in development by therapy area.
 
Trust: progress on our six priority areas for responsible business
 
Building Trust by operating responsibly is integral to GSK’s strategy and culture. This will support growth and returns to shareholders, reduce risk, and help GSK’s people thrive while delivering sustainable health impact at scale. The company has identified six Environmental, Social, and Governance (ESG) focus areas that address what is most material to GSK’s business and the issues that matter the most to its stakeholders. Highlights below include activity since Q3 2023 results. For more details on annual updates, please see GSK’S ESG Performance Report 2022 here: https://gsk.to/2022ESGPerf. GSK’s 2023 ESG Performance Report will be published in Q1 2024.
 
Access
Commitment: to make GSK’s vaccines and medicines available at value-based prices that are sustainable for the business and implement access strategies that increase the use of GSK’s vaccines and medicines to treat and protect underserved people.
 
Progress since Q3 2023: 
 
In November, GSK shipped the first doses of the malaria vaccine, Mosquirix (RTS,S) to Cameroon, as part of the Unicef tender to supply 18 million doses over 3 years, potentially saving thousands of lives every year. Cameroon is the first country outside of those involved in the Malaria Vaccine Implementation Programme to receive doses, marking an important moment as we commence the broader roll-out of this vaccine. A further 1.7 million doses of the vaccine are expected to arrive in Burkina Faso, Liberia, Niger and Sierra Leone in early 2024.
In December, GSK, in collaboration with the Global Coalition on Aging, announced a new report from the IQVIA Institute for Human Data Science. The report, funded by GSK, explores the role of social and structural determinants of health in adult vaccine access and uptake across five global cities with strong data about their ageing populations. The data demonstrated vaccine use varies substantially even within a single city and suggest that policies, such as improved access to pharmacies or other points of vaccination, should be implemented to drive equitable access to adult immunisation. More information can be found here: https://gsk.to/3HeGFpZ
In December, GSK announced recipients of the inaugural grant programme of the COiMMUNITY Initiative, a multipronged effort to support the design of a more systematic, collaborative and equitable approach to helping increase adult immunisation rates in the US. Each grant-funded project is receiving between $50,000 and $175,000 out of a total $1 million in funding to help address long-standing barriers to adult immunisation in the US. More information can be found here: https://gsk.to/47CdBDo
Performance metrics related to access are updated annually with related details in GSK’s ESG Performance Report 2022 on page 9.
 
 
Global health and health security
Commitment: develop novel products and technologies to treat and prevent priority diseases, including pandemic threats.
 
Progress since Q3 2023: 
 
Infectious diseases (IDs) such as malaria, tuberculosis and enteric diseases are among the leading causes of death globally, killing almost 9 million people each year. These diseases, which are often preventable and treatable, disproportionately affect sub-Sahara African populations. Research is critical for the development and implementation of effective measures to meet the global health challenges of eliminating IDs. GSK opened its call for research proposals focussed on funding high-quality infectious disease research that has the potential to deliver significant health impact and develop future research leaders, with up to £100,000 available per award. More information can be found here: https://gsk.to/3RUpL4M 
GSK has partnered with Amref since 1988, making a positive impact on malaria, TB, HIV, water/sanitation, health worker training, and health system strengthening. Collaborations like these are vital, especially now, to strengthen health systems in lower income countries. Together, GSK and Amref are dedicated to bringing lasting, sustainable change to countries across Africa. In January, two new programmes launched on anti-microbial resistance (AMR) and malaria. First, a three-year malaria programme to strengthen public healthcare systems for improved diagnosis, treatment, prevention, and surveillance of malaria cases in Kenya and Zambia. Second, a 12-month AMR programme which will conduct a review of AMR across the Africa Region to inform interventions to strengthen AMR programming.
Performance metrics related to global health and health security are updated annually with related details in GSK’s ESG Performance Report 2022 on page 13.
 
Environment
Commitment: committed to a net zero, nature-positive, healthier planet with ambitious goals set for 2030 and 2045.
 
Progress since Q3 2023:
 
 
 
In November, GSK announced it will start phase III trials of a low carbon version of its metered dose inhaler, Ventolin (salbutamol), using a next generation propellant, in 2024. If successful, it has the potential to reduce greenhouse gas emissions from use of the inhaler by approximately 90%, significantly contributing to GSK’s ambitious net-zero climate targets as the current propellant accounts for 49% of GSK’s carbon footprint. GSK is investing £1 billion between 2020 and 2030 to achieve sustainability targets, including a significant financial commitment towards this programme. More information can be found here: https://gsk.to/3SeCLDA
 
Environment continued
 
GSK’s net zero targets were approved by the Science Based Target Initiative’s (SBTi) Corporate Net-Zero Standard, the world’s only framework for corporate net-zero target setting in line with climate science. The targets include an 80% reduction in greenhouse gas emissions by 2030 and a 90% reduction by 2045 target. GSK aims to address the remaining emissions through high quality offsets.
Performance metrics related to environment are updated annually with related details in GSK’s ESG Performance Report 2022 on page 16.
 
Diversity, equity and inclusion
Commitment: create a diverse, equitable and inclusive workplace; enhance recruitment of diverse patient populations in GSK clinical trials; and support diverse communities.  
 
Progress since Q3 2023:
 
In November, GSK announced the 20 non-profit IMPACT Award winners for their outstanding contributions to improving health in the Triangle (North Carolina) and Greater Philadelphia regions. The winners receive $50,000 each to build their capacity and support their organisations’ missions to improve the health and welfare of individuals in their local communities who are often vulnerable or marginalised. More information can be found here: https://gsk.to/3vy0bem
Performance metrics related to diversity, equity and inclusion are updated annually with related details in GSK’s ESG Performance Report 2022 on page 23.
 
Ethical standards
Commitment: promote ethical behaviour across GSK’s business by supporting its employees to do the right thing and working with suppliers that share GSK’s standards and operate responsibly.
 
 
 
Performance metrics related to ethical standards are updated annually with related details in GSK’s ESG Performance Report 2022 on page 26.
 
Product governance
Commitment: maintain robust quality and safety processes and responsibly use data and new technologies.
 
Performance metrics related to product governance are updated annually with related details in GSK’s ESG Performance Report 2022 on page 30.
 
ESG rating performance
Detailed below is how GSK performs in key ESG ratings.
 
 
External benchmark
Current
score/ranking
Previous
score/ranking
 
Comments
S&P Global’s Corporate Sustainability Assessment
84
86
1st in the pharmaceutical industry group; Assessment conducted annually, current score updated Nov 2023
Access to Medicines Index
4.06
4.23
Led the bi-annual index since its inception in 2008; Updated bi-annually, current results from Nov 2022
Antimicrobial resistance benchmark
84%
86%
Led the bi-annual benchmark since its inception in 2018; Current ranking updated Nov 2021
CDP Climate Change
A-
A-
Updated annually, current scores updated Dec 2022 (for supplier engagement, March 2023)
CDP Water Security
B
B
CDP Forests (palm oil)
A-
B
CDP Forests (timber)
B
B
CDP supplier engagement rating
Leader
Leader
Sustainalytics
16.7
18.6
1st percentile in pharma subindustry group; Lower score represents lower risk. Current ranking updated Sept 2023
MSCI
AA
AA
Last rating action date: Sept 2023
Moody’s ESG solutions
62
61
Current score updated Aug 2023
ISS Corporate Rating
B+
B+
Current score updated June 2023
FTSE4Good
Member
Member
Member since 2004, latest review in June 2023
ShareAction’s Workforce Disclosure Initiative
79%
77%
Current score updated Jan 2024
 
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 53.
 
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 profits from discontinued operations from the Consumer Healthcare business and the following items in relation to our continuing operations 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
 
Costs for all other ordinary course smaller scale restructuring and legal charges and expenses from continuing operations 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.
 
Reconciliations between Total and Adjusted results, providing further information on the key Adjusting items, are set out on pages 20, 21, 23 and 24.
 
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 cabotegravir-containing 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 84% of the Total earnings and 83% of the Adjusted earnings of ViiV Healthcare for 2023.
 
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 remeasurements are reflected within other operating income/(expense) and within Adjusting items in the income statement in each period.
 
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 year ended 31 December 2023 were £1,106 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 71 and 72 of the Annual Report 2022.
 
 
Adjusting items
 
 
The reconciliations between Total results and Adjusted results for 2023 and 2022 are set out below.
 
Year ended 31 December 2023
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
results
£m
 
Intangible
amort-
isation
£m
 
Intangible
impair-
ment
£m
 
Major
restruct-
uring
£m
 
Trans-
action-
related
£m
 
Divest-
ments,
significant
legal and
other
items
£m
 
Adjusted
results
£m
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Turnover
30,328
 
 
 
 
 
 
 
 
 
 
 
30,328
Cost of sales
(8,565)
 
647
 
 
 
164
 
13
 
25
 
(7,716)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross profit
21,763
 
647
 
 
 
164
 
13
 
25
 
22,612
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selling, general and administration
(9,385)
 
 
 
 
 
216
 
13
 
127
 
(9,029)
Research and development
(6,223)
 
72
 
398
 
2
 
 
 
1
 
(5,750)
Royalty income
953
 
 
 
 
 
 
 
 
 
 
 
953
Other operating income/(expense)
(363)
 
 
 
 
 
 
 
546
 
(183)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating profit
6,745
 
719
 
398
 
382
 
572
 
(30)
 
8,786
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net finance cost
(677)
 
 
 
 
 
1
 
 
 
7
 
(669)
Share of after tax profit/(loss) of associates
  and joint venture
(5)
 
 
 
 
 
 
 
 
 
 
 
(5)
Profit/(loss) on disposal of interest in
  associates
1
 
 
 
 
 
 
 
 
 
(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Profit before taxation
6,064
 
719
 
398
 
383
 
572
 
(24)
 
8,112
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Taxation
(756)
 
(154)
 
(94)
 
(83)
 
(100)
 
(70)
 
(1,257)
Tax rate %
12.5%
 
 
 
 
 
 
 
 
 
 
 
15.5%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Profit after taxation from continuing
  operations
5,308
 
565
 
304
 
300
 
472
 
(94)
 
6,855
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Profit attributable to non-controlling
  interests from continuing operations
380
 
 
 
 
 
 
 
192
 
 
 
572
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Profit attributable to shareholders from
  continuing operations
4,928
 
565
 
304
 
300
 
280
 
(94)
 
6,283
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5,308
 
565
 
304
 
300
 
472
 
(94)
 
6,855
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings per share from continuing
  operations
121.6p
 
13.9p
 
7.5p
 
7.4p
 
6.9p
 
(2.2)p
 
155.1p
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average number of shares (millions)
4,052
 
 
 
 
 
 
 
 
 
 
 
4,052
 
 
Year ended 31 December 2022
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
results
£m
 
Profit from
discon-
tinued
operations
£m
 
Intangible
amort-
isation
£m
 
Intangible
impair-
ment
£m
 
Major
restruct-
uring
£m
 
Trans-
action-
related
£m
 
Divest-
ments,
significant
legal and
other
items
£m
 
Adjusted
results
£m
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Turnover
29,324
 
 
 
 
 
 
 
 
 
 
 
 
 
29,324
Cost of sales
(9,554)
 
 
 
648
 
 
 
102
 
45
 
18
 
(8,741)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross profit
19,770
 
 
 
648
 
 
 
102
 
45
 
18
 
20,583
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selling, general and administration
(8,372)
 
 
 
 
 
 
 
180
 
13
 
51
 
(8,128)
Research and development
(5,488)
 
 
 
91
 
296
 
39
 
 
 
 
 
(5,062)
Royalty income
758
 
 
 
 
 
 
 
 
 
 
 
 
 
758
Other operating income/(expense)
(235)
 
 
 
 
 
 
 
 
 
1,692
 
(1,457)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating profit
6,433
 
 
 
739
 
296
 
321
 
1,750
 
(1,388)
 
8,151
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net finance cost
(803)
 
 
 
 
 
 
 
2
 
 
 
10
 
(791)
Share of after tax profit/(loss) of
  associates and joint ventures
(2)
 
 
 
 
 
 
 
 
 
 
 
 
 
(2)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Profit before taxation
5,628
 
 
 
739
 
296
 
323
 
1,750
 
(1,378)
 
7,358
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Taxation
(707)
 
 
 
(150)
 
(64)
 
(87)
 
(242)
 
112
 
(1,138)
Tax rate %
12.6%
 
 
 
 
 
 
 
 
 
 
 
 
 
15.5%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Profit after taxation from
  continuing operations
4,921
 
 
 
589
 
232
 
236
 
1,508
 
(1,266)
 
6,220
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Profit after taxation from
  discontinued operations and
  other gains/(losses) from the
  demerger
3,049
 
(3,049)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Remeasurement of discontinued
  operations distributed to
  shareholders on demerger
7,651
 
(7,651)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Profit after taxation from
  discontinued operations
10,700
 
(10,700)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total profit after taxation
  for the period
15,621
 
(10,700)
 
589
 
232
 
236
 
1,508
 
(1,266)
 
6,220
Profit attributable to non-
  controlling interest from
  continuing operations
460
 
 
 
 
 
 
 
 
 
135
 
 
 
595
Profit attributable to shareholders
  from continuing operations
4,461
 
 
 
589
 
232
 
236
 
1,373
 
(1,266)
 
5,625
Profit attributable to non-
  controlling interest from
  discontinued operations
205
 
(205)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Profit attributable to shareholders
  from discontinued operations
10,495
 
(10,495)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
15,621
 
(10,700)
 
589
 
232
 
236
 
1,508
 
(1,266)
 
6,220
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total profit attributable to
  non-controlling interests
665
 
(205)
 
 
 
 
 
 
 
135
 
 
 
595
Total profit attributable to
  shareholders
14,956
 
(10,495)
 
589
 
232
 
236
 
1,373
 
(1,266)
 
5,625
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
15,621
 
(10,700)
 
589
 
232
 
236
 
1,508
 
(1,266)
 
6,220
Earnings per share from
  continuing operations
110.8p
 
 
 
14.6p
 
5.8p
 
5.9p
 
34.1p
 
(31.5p)
 
139.7p
Earnings per share from
  discontinued operations
260.6p
 
(260.6)p
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total earnings per share
371.4p
 
(260.6)p
 
14.6p
 
5.8p
 
5.9p
 
34.1p
 
(31.5)p
 
139.7p
Weighted average number of
  shares (millions)
4,026
 
 
 
 
 
 
 
 
 
 
 
 
 
4,026
 
 
 
Major restructuring and integration
 
Total Major restructuring charges from continuing operations incurred in 2023 were £382 million (2022: £321 million), analysed as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2023
 
2022
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash
£m
 
Non-
cash
£m
 
Total
£m
 
Cash
£m
 
Non-
cash
£m
 
Total
£m
 
 
 
 
 
 
 
 
 
 
 
 
Separation Preparation restructuring
  programme
199
 
117
 
316
 
177
 
110
 
287
Significant acquisitions
65
 
1
 
66
 
20
 
 
20
Legacy programmes
(1)
 
1
 
 
9
 
5
 
14
 
263
 
119
 
382
 
206
 
115
 
321
 
The Separation Preparation programme incurred cash charges of £199 million primarily from the restructuring of some commercial and administrative functions as well as Global Supply Chain. The non-cash charges of £117 million primarily reflected the write-down of assets in administrative as well as manufacturing locations.
 
The benefit in the year 2023 from restructuring programmes was £0.2 billion, primarily relating to the Separation Preparation restructuring programme. The programme is now largely complete and has delivered its target of £1.1 billion of annual savings, with total costs still expected at £2.4 billion, with slightly higher cash charges of £1.7 billion but lower non-cash charges of £0.7 billion.
 
Costs of significant acquisitions relate to integration costs of Sierra Oncology Inc (Sierra) and Affinivax Inc. (Affinivax) which were acquired in Q3 2022 and Bellus acquired in Q2 2023.
 
 
Transaction-related adjustments
Transaction-related adjustments from continuing operations resulted in a net charge of £572 million (2022: £1,750 million), the majority of which related to charges/(credits) for the remeasurement of contingent consideration liabilities, the liabilities for the Pfizer put option, and Pfizer and Shionogi preferential dividends in ViiV Healthcare.
 
Charge/(credit)
2023
£m
 
2022
£m
 
 
 
 
Contingent consideration on former Shionogi-ViiV Healthcare joint Venture
  (including Shionogi preferential dividends)
934
 
1,431
ViiV Healthcare put options and Pfizer preferential dividends
(245)
 
85
Contingent consideration on former Novartis Vaccines business
(187)
 
193
Contingent consideration on acquisition of Affinivax
44
 
17
Other adjustments
26
 
24
 
 
 
 
Total transaction-related charges
572
 
1,750
 
The £934 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, driven by £534 million from updated future sales forecasts and exchange rates, and the unwind of the discount for £400 million. The £245 million credit relating to the ViiV Healthcare put option and Pfizer preferential dividends represented a reduction in the valuation of the put option as a result of updated exchange rates, sales forecasts and cash balances.
 
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 19.
 
The £187 million credit relating to the contingent consideration on the former Novartis Vaccines business primarily relates to changes to future sales forecasts.
 
The £44 million charge relating to the contingent consideration on the acquisition of Affinivax primarily relates to the unwind of the discount.
 
 
Divestments, significant legal charges, and other items
Divestments, significant legal charges, and other items primarily included £200 million of net income from dividends and milestones related to investments, including a £49 million dividend received from the retained investment in Haleon, partly offset by a £17 million fair value loss on the investment in Haleon. Legal charges provide for all significant legal matters, including Zantac, and are not broken out separately by litigation or investigation. Significant legal charges in the year primarily reflected increased legal charges for Zantac of which the vast majority relate to the prospective legal costs for the defence of the litigation.
 
The reconciliations between Total results and Adjusted results for Q4 2023 and Q4 2022 are set out below.
 
Three months ended 31 December 2023 
 
 
Total
results
£m
 
Intangible
amort-
isation
£m
 
Intangible
impair-
ment
£m
 
Major
restruct-
uring
£m
 
Trans-
action-
related
£m
 
Divest-
ments,
significant
legal and
other
items
£m
 
Adjusted
results
£m
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Turnover
8,052
 
 
 
 
 
 
 
 
 
 
 
8,052
Cost of sales
(2,418)
 
170
 
 
 
67
 
13
 
5
 
(2,163)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross profit
5,634
 
170
 
 
 
67
 
13
 
5
 
5,889
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selling, general and administration
(2,678)
 
 
 
 
 
53
 
12
 
25
 
(2,588)
Research and development
(2,047)
 
14
 
249
 
(2)
 
 
 
2
 
(1,784)
Royalty income
235
 
 
 
 
 
 
 
 
 
 
 
235
Other operating income/(expense)
(571)
 
 
 
 
 
 
 
430
 
141