GSK - Earnings call transcript Q3 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, ladies and gentlemen, and welcome to the analyst call on the GSK Third Quarter 2020 Results. I will now hand over to Sarah Elton-Farr, Head of Investor Relations, who will introduce today's session. Please go ahead Sarah.

Sarah Elton-Farr

Thank you. Good morning and good afternoon. us today. QX joining were results, for earlier issued you for XXXX our which Thank

have our should on You received GSK's the can website. presentation view press release and

accompany view For able the website. the the today's of call webcast Investors those section are to slides not on located that

Before please slide refer X for our presentation we cautionary statements. begin, our to of

for that and Our hand Emma. and to Brian Redfern ask Luke Miels, Roger will maximum questions, speakers Connor David of today request I to over are has so Emma Walmsley, And Q&A. join a only that will us Hal with call that, you a Mackay, Barron We participate. Iain two the McNamara. chance everyone

Emma Walmsley

all keeping XXXX be and GSK shown strategic extraordinary maintaining to SEF, has on well. year. everybody remain an our on you while and goals, the call. challenges, welcome which tackling are firmly agility I focus in resilience today's continues Thank you to hope that track.

and In candidate Nucala. are potential to to positive first for on for impact vaccines approval the have major significant care in asthma for continue B. quarter and in had HIV. also both data advance Rukobia new We indications in opportunities multiple we've BLENREP the And hep be and growth for represent and progress our delivered mentioned in strengthen July, underway at and we RSV approval GSK'XXX pipeline. programs Trelegy drivers. We've Plans these for to future this received QX, myeloma as launches health

going Vir very vaccine with pivotal on initiated multiple three meningitis antibody exciting to myeloma COVID-XX, later. more our major also in We hear a second-line program you're in and studies

commercial we're vaccines more quarter as will also this on of been our especially cost consumer our very update the in integration a some drive our growth company programs. we're confident of execution detail, And across portfolio in is you setting driving building pipeline years vaccines progress for new control, made And but continue has will short-term in come. growth quarter products, been our separation the While early substantial result and both performance. to to the momentum pandemic, course future a strengthen. for Brian we've fundamentals encouraging there our as and have disciplined pressures the performance in strong

in and Vaccines We and milestone and achieve network, deliver on continued scientific in simplify one organization cost to well site efficiency our agility improve development functions, support will an decision-making as our important collaboration base. our for building R&D further Pharma that as

COVID as solutions to and them. remain we stakeholder Our several building pipeline trust committed includes we deliver

We have have place global access. to vaccine partnered in and governments COVID-XX pledged multiple supply with focus on safety adjuvanted our our maintain and for agreements

up XX%. been The down sales was XX% were detail decrease offset delivered to greatest in the in on business, a of Established has strong very basis. in X% earnings deliver we're This the expect go more Pharma that We've constant our by minute. quarter. a within referenced pandemic will to drivers our with impact our sales and quarter. in on and Turning combined Iain with cost future ongoing specialty by the new impact. this guidance performance of encouraged offset In focus our growth XXXX. margin currency All pandemic into are products range performance where in Pharma, growth has Vaccines a numbers of Strong a from and in the and the earnings quarter

we're than realization down by gaining XX% are by offset of in and XX% the tight In launches. reshape portfolios control vitamins vaccines towards the with margin with basis earnings and to share while to was Year-to-date immunization total XX% power driven was ongoing SG&A our pre-COVID the level our operating and up recovery benefits up and quarter our over quarter Shingrix our Group performing our of just cost portfolio per adjusted restructuring quarter. making of in Overall, XX.Xp. – share Consumer, COVID encouraged solutions. and remind X% adjusted for great pro X%. strong we're I of by as the continued the earnings were you I'd a we've pipeline to sales progressed growth On we're before new year-to-date the impact strongly. hand product up more share up performance in in of to invest However, forma, accelerated business were like are Iain, per XX.X% XXp and flu sorry, we brands health. forma to pro the and continued oral X% the And the progress on

Our different to COVID-XX collaborations could the aim pivotal develop vaccines is and we studies have vaccine now multiple clinic of adjuvanted to the by in move three year. the that end

later; our to We speak our antibody collaboration with Vir, Luke also have will through two which otilimab. studies in approaches therapeutic aGM-CSF and exciting clinical

so now with on quarter. Iain And more detail to the

Iain Mackay

basis operating summarizes up and X% total of in X% headwind the constant up Adjusted X% was adjusted billion results X% EPS CER Total in In was sales the EPS a CER. X% billion, cabotegravir results the year. forecast On increase specify and was clinical All shared here very Total our an was operating QX constant onwards the adjusted are In the Emma. free a PrEP data our reflects XX.Xp which except from progress adjusted up X% EPS flow down continued on strong for the total and We for and integration in currency profit adjusted £X.X adjusted XXp will to quarter the Comments in there EPS charge from following today year-to-date. turnover make of turnover XXXp, and results. was up X%. in delivered reconciliation component to QX, major that reported currency the activities. are relating this was The with And down I'd £X.X within re-measurement we adjusted separation restructuring relating billion, items was which the the the on-track Thanks, £XX.X the otherwise, pro on business otherwise. down CER. within main results. Consumer group's comments was up adjusting on summarizes earlier and and down year-to-date. slide was transformation is XX.Xp, year-to-date was line overall basis and X and Adjusted I down currency X% revenues in and contributor forma. Healthcare on summary unless were quarter; ViiV where £X.X XX Slide year-to-date Pharmaceuticals the I'll main transaction X% stated movements. in be a Slide I'll in highlight billion a the the expectations, down X%. contingent was XX% profit cover the X%. The of a X% to QX and XX cash where EPS both consideration Healthcare. related in main in

by in of the the remain Oncology, quarter than We Excluding XX% excited Established execution. nine Zejula were Relvar/Breo, was and strong prospects million on Respiratory up the Pharma, strong and very commercial was was our growth excellent up sales in Nucala. revenue quarter. reflecting from In market. the its Zejula in growth more XX% up reflecting the quarter up delivery. Trelegy, XX% the Benlysta which after year-to-date both extending XX% launched double-digit and grew £XX in with years commercial XX% continued BLENREP

Flovent XX%. Our with Respiratory in was generic declined for reflecting from Ventolin continued rest HIV the Pharma erosion the Established with The with portfolio performance, particularly comment down impacting and portfolio of new was COVID-XX flat and Within Advair/Seretide Pharma The products strongly to accelerated XX% very of in brand X% competition down momentarily. performance will Established antibiotics. on XX% franchise revenues U.S. Luke Dovato. perform plus these up were dolutegravir strong this

in Additionally, seen markets. increased we've government-mandated generics certain

mid-teens. the to total current expect Portfolio year, down the Established For we be

of nonrecurring settlements quarter tight revert -- support and Next norm of year of a product in and portfolio. by approval QX inventory and sales its R&D. Portfolio reflecting with of you restructuring comparison historical write-down from would total priority in driven costs targeted Shingrix XXXX X% points and decline pandemic. to August. the impact single-digit Established pertaining wellness continue was down expect increased legal we in down by U.S. operating benefit favorable recognition review QX. manufacturing actions. within increase divestments benefit an a to and through R&D new through for and XX%, sales benefits investment to gives These focused Pharma -- BLENREP was in this of high the adverse visits Favorable margin mid particularly and XX% product basis in were control the lower the opportunities XXX performance XXXX to adult we and of Vaccines margin to mix to programs. the in and XX.X%. prelaunch reflected July in overview were oncology markets offset and Slide XX of Year-to-date, on mainly

and However, the end similar has through well support Shingrix to X% grown year-to-date prescriptions with measures on time weekly the in to levels we've QX, further execution demonstrate Recent to this vaccines supply make for expanding strong we on performed trends strong primarily and continued sales. underlying revenue and U.S. and revenue of by QX place XX%, reached encouraging Shingrix capacity. last year. same are progress vaccine demand supply the growth and put beyond. Flu reflecting up

The the as to in support XXX meningitis was brands the Bexsero season recovery expect margin down the and operating flu leverage declined the We particularly Vaccines affecting further revenues U.S. from X% in sales primarily X% portfolio particularly decline to And due operating Shingrix. operating expected. such demand environment, adults in in Shingrix the points reflecting investment of Established was amongst Vaccines grew XX% The key older lower reflecting adjusted with pandemic margin the behind and were increase disrupted hepatitis negative back-to-school performance. immunizations, XX.X%. lower, as performance. In COVID-XX-related year-to-date, XX.X% basis

pro positive consumer personal percentage X% XX% and execution. Horlicks health QX cutover Sensodyne growth supplements Turning of by those Consumer turnover by minerals, benefit which declined basis increased a brands strong driven vitamins, grew forma overall X% to either sustained XX, up points. Including revenues with Reversal review. as X% two QX at stocking grew health. on such under commercial impact by in or up around excluding Healthcare pandemic pro X% on were focus Oral a driven brands The divested had on slide impacted the CER global systems forma.

forma and review impact X%, weaker was margins. cold were and brands benefits divested increased impact no divested tight the control points brand previous is and to U.S. the mainly year-on-year, XX, the for of Pfizer partially costs. integration we from adjusted Consumer strongly. margin the the update was Brian by XX operating down basis for quarter provide excluding On on in margin change offset investment, our performing growth and synergy QX. in shortly. Advil flat There brands. this the However, of Operating very slide market Consumer the or is pro operating and offset The the will under switch revenues performance more informed principally performance guidance business reflecting partially margin an with of and year-to-date by detail for share. XX.X%. a Rx-to-OTC lower on health Healthcare and up Consumer summarized in by Pro adjusted sales cough season far relief And so respiratory was forma of Voltaren pain

which Across basis was to margin Vaccines. group operating year. a Lower group restructuring from Our earlier the up cost pro offset leverage, across on this we're announced forma XXX beginning realize benefits basis. programs company, sales reduced mainly the in points operating was

We such T&E. savings tightly categories very costs and in significant realized continued manage to as operating have

one-time and highly we a of SG&A, a legal from realized a in XXXX. high non-recurrence QX costs -- benefits benefit of QX from post-retirement During of restructuring

and in slightly and year-to-date mid offset to appendix. increase by spend We've such approval on of two and realization COVID-XX-related exception progress The year-to-date. We quarter information being noted arthritis; the synergies a at transformation Pharma continued inventory assets new X%. This our of otilimab COVID and for ICOS; down was launches, on savings, BLENREP, the the group product in transformation from All the benefit as realization comparably track the the Vaccines the efficiencies. to rheumatoid for synergies our programs the now the now plus dostarlimab, of for R&D end in recover R&D Vir expect savings, antibody. in we year. year-to-date programs otilimab to in the lower spend recognition initially for and COVID the remains the upon firmly spend And are the Consumer increased invest delays up The result pre-launch with R&D of the pipeline filings of key included track. with of key with was covering investments high-single-digits experienced, of BLENREP; of and progression in XXXX, following and pivotal analysis their related to the partly gepotidacin. niraparib R&D lower

half bottom highlight reflected The debt. that improved expense XX.X% from The delivered around And flow of intangible profits. JV. lower finally, impact, still to reduction year timing the seasonal rebates, and reflecting of in of of lower to with Healthcare the September. rate Moving of I'd full operating partly non-controlling of XX%. trade mainly We primarily offset non-controlling effective beneficial payments interest and billion and was by receivables, in dividends was the interest of returns line for higher P&L, reflected assets effective adverse million, proceeds increase £XXX rate a cash interest £X.X profits expectations higher expect and tax disposals year of share to tax Pfizer's we exchange in Consumer

at we expect XXXX. a facilities. the step-down half working EPS cash of to with balances, As lower of flow extensive in range X% expect from to for this CER to we an second year maintain cash committed cash and February and minus free we the effective closed guidance to first capital quarter early be indicated flow approach still half, access X% than QX, adjusted be the in We management set year. to minus our the undrawn strong XXXX We

particularly with that that and Health. power in fair Consumer group it then, to our happened albeit we're within we and by with lot at has deliver The quite Consumer, still on We're with be line would the the has since the with age older generics slightly of responded pleased it a is the performance this slower end. September, recovery far think this in this to does far products where Shingrix. year for increasing demand. by I'm of In so disruption. continued adult new Pharma and specialty year, mostly say our immunization in pediatrics in but complete and rates informed through Vaccines the strong to adults, track be return-to-schools lower in agility has business expect commercial delivery in so in and adolescents our encouraging In depend guidance Achieving underlying compared performance this good is categories, the recovery across guidance I to stronger a quarter, ago. immunization is and range, demonstrates a uptake sustaining brands October, recovery Pharma encouraged which while on rates, in on the Vaccines

no update make on improving progress and priorities. for behind our our capacity new next online supply details There capital QX this coming continued We in to ahead Shingrix facility in year. we'll to you good are change of the allocation

of the by all in We our aspects the and GSK, continued integration pipeline preparations progress across and with Emma advancing great to confident the for advance of noted separation. the We're as Pfizer earlier. consumer business, the transformation making are

declared release, quarterly pence that, our And out to line set a in Luke. with in with year. noted XX earlier earnings dividend expectations this hand I'll we've As over

Luke Miels

everyone. Hi, Iain. Thanks,

and driving responsibly key to compete respiratory, areas £X.X effectively made XX% were billion. markets to us in working made engagement As markets. HIV, to starting our you know, pay been and policies and quarter competitively more updated changes incentives we've a of to focus on where on And allow force that in growth. hard up off. commercial Sales new immuno-inflammation we've with ensure oncology, HCP our been the are key we've we're product particular Changes sales resourced and our launches now the we're execution include this to growth

with our to to as COPD growth application later for well. early parallel GSK the Pharma this triple continued Nucala. We've seeing for a continue very see ongoing. not successfully. And we've Trelegy, also our our once-daily of from market of in remain our derived the we further great way COPD Staying the month in great we Nucala's month remains leader we're see increased IL-X acceleration world winning as patients with impacted efficacy only voice chart. digital share and built a by eligible biologic. intervals to leadership market. to its and recently position as digital approaches which as around have expected, precision on quarter, the its IL-X EGPA on strong that Nucala. biologics performance proven are of competitive total new we have to class. And in XX% lead strong normal momentum markets in expand polyps. grow Established the indications reduce right other targeting therapy portfolio, other outlook ways new submitted inhaler with growth nasal in engagement in its eosinophil we face-to-face the is Respiratory we our measures significant and and single the investment, can DMA capabilities where now are from first especially portfolio, of taken rapidly opportunity traditional in great three opportunities working This pipeline of or expect some the possible. from in in this U.S. market to as leading unfortunately have U.S. receiving submitted patients to only Now more And presented to restrictions though moving key we across We of other studies leading our as you but the when complementing now a we're approval HES well to presence, lockdown share with Starting amplify and with our the it with to on the these levels, both U.S., condition. our we're the differentiating maintaining delivering this of IL-X product and to the In And coming assets the using another we bring related quarters had new into benefit build in had and also and

a it leader, the is and triple share we The of than other scope We triple in continue major XX% remains we've U.S. growth. area, of but COPD is therapy voice substantial Europe see who maintained market in share U.S. a the or on markets are leading competitive increasingly patients around less where with opportunity are the the as need growth. well world. Japan growing there to in and need strong our This in the as U.S., significant for in today so -- an

we Additionally, therapy. XX% of U.S. asthma. the ICS/LABA triple And in could showing About allergist we've with first that doubling for remain weeks days. that a received is from approval patients of NBRx in the unmet U.S. the there recognized. for is three an it or asthma But seen U.S. adult on they patients uncontrolled, so -- early is benefit prescribers to market in an need

life the potential launch we're with data uptake works indications. new through driving to -- on please. than success great market after It lupus world. product China. around -- the and the Next targeted cycle considerable patients to growth of slide In again more Benlysta switching this continues QX and and nine for a upside IV market Lupus double-digit years our saw is by for us sub-cut in the Benlysta. we the formulation management, for and building be supported through of a

England in we've to This to New say the review FDA. received data for LN BLISS we're and priority pleased quarter our the published submission trial positive the very from

first lupus to only have become and by SLE on the both to We and the year are track indicated to and drug the nephritis. expect of end approval

and clinical number Rituxan base and could patient, Benlysta lupus also there's help successful recognized profile. is for of with long-term more further by broad nephritis What investment end this with hopeful combination safety the With of patients than will XX% important The outcomes the increase U.S. established around in potentially well-positioned competition a to interesting patients. in-house remaining course so real study data even is world. will potential with long-term year We indication lupus data and remain that treated plenty to efficacy are we're untreated generating a remission. of and world ongoing the lead the we and opportunity the versus more our with of if have growth of combo in the eligible these

the Zejula of undergoing by the treatment been Through impacted of oncology. the have fewer to drive the able with cancer first and although patients pandemic our has Now ovarian half in ovarian market. execute with to the the been first-line year, market we share commercially

chemo. best-in-class and Our supported that penetration setting not PARP for BRCA-mutant driving only who all-comers only market NCCN maintenance by is to first-line inhibitor been guidelines And key patient the but the for the in has population the now both in all types. across label, responded patients ASCO to

repeat XX% In almost all half in getting we patients weekly market on over now As in now from and by line. a inhibitor were in XX% new XX% the Zejula our writers PARP to of are front the a increase Zejula. new three one the share August. doubled starting average And patients April August, QX, of are or the on in we've in saw overall U.S. in

maintenance continue watch in non-squamous setting In on a And We women beyond first-line with lung of there's non-small a with ovarian opportunity pembro than improved and in in to significant setting. XX% of ZEAL the market with finally the unfortunately in also the set in opportunities on accelerating the QX, U.S. cell we're both investigate to the we for squamous study initiated used cancer being broader still and know outcomes patients wait penetrate Zejula combination patients. maintenance of more to focused impact

Zejula the to believe the the cross with differentiated blood-brain PARP be barrier, best-in-class properties has opportunity a tumor in outcomes lung. and to So improve penetration superior these and the and ability we

There's board in over unmet XXX at our multiple in and patients need enrolled multiple the are myeloma over And launched XXX early program. and REMS though we HCPs please. days and pretreated is We had slide force end in myeloma studying medicine high important already across Next improve physicians, experienced operationalized fully August the have profile the of from doses response have groups. a BLENREP sales heavily we it's advocacy seeing a U.S. access for the patients patients and focused by safety continued HCPs alternative and amongst development program We're set. place highly highly in-person this the robust a have and also force a on a experienced We've the highest to to sales of scheduling. in -- competitive our positive

have to also profile. on SpringWork's inhibits sharing inhibitor, Shifting potential improved other of in data continued Blenrep we on which and with Importantly, combinations saw rates the these anticipate investigating lower some wellness the substantially although impact in cleaving have adult effects; in and vaccination visits the combinations September. secretase pembro, U.S., next slide. synergistic quarter from XXXX. We in studies a drugs pandemic can effect And driving of the the like novel with potentially appropriately we in Vaccines with enabling superior and momentum a side clearer gamma BCMA, combination an target which improved efficacy

that great million in well. in increase progress driving in our with inventory saw pandemic we phased considered U.S., a season. flu launch now which our in conjunction by levels the And time X.X to is volumes we And quarter. channel. about recovery very seen year. the Outside We've similar U.S. to DTC with campaign Germany of in successful and Shingrix, prescription before normal in end been going they've saw China For last the are demand a this level strong doses from steady wholesale comparable through quarter the through and last same reached the

please. just takes anticipating slide the developing I'd highlight XDR upcoming take that before our that over for through like to to David, HIV, Vir. the we're you wanted we're through momentum hand with Next readout before in But you collaboration David antibody I I -- COVID to in

will adjuvant in for develop and might see pandemic effective own are to of XXXX be COVID, others, level And to that the if Although, successful, a for and be everyone. still a high believe beyond. we'll is uncertainty how necessary. collaboration Sanofi vaccine will a many offering even distribute on there seems to including we of but approaches with our likely lot time in There's about vaccines XXX% development unlikely it it a infections continue is and take therapeutic

So was SARS-Cov-X from found The say a I an a spike to It has with antibody that taken be neutralizing high similar asset. developed think, patient Vir affected ASXX extremely from have features, has antibody that been will an basis, potent antibody SARS-CoV-X. it's The fair need -- there to assays. lead clear with and for SARS-Cov-X on live therapeutics. antibody the a that is virus to affinity we highly have protein best-in-class which potentially in believe us in three for

first The into binding receptor a required entry site is unique conserved In highly barrier other has identified it viruses that high and is conserved antibodies Furthermore, viral clinical and the that over we host. is for which a tests mutants for of to against XX,XXX resistance. attenuated show no or therefore, infectivity. strains, across have escape expect highly circulating epitope is viral this similar sequences

recruitment and is as important patients effective time. risk hospitalization to high of finally, extend antibody by manufacturing include COMET-ICE treatment therapeutics and end high anticipate ongoing patients us. for is of some have been half-life use early collaboration Pivotal expand and number we scale up we the having to in allows and engineered the function in year. demand On studies has has initial significant the Secondly, in top which And viability of that lower large potential the dose, the potent potentially hospitalized to antibody fact data with outweigh given of of available were lung. us potentially for cells. single potential this study will likely be kill to is the supply the infected has global and the to patients the off of prophylaxis. to will exciting for planning allowing in potency to we, the This immune cells This very a vitro enhance

Let over to you through take David to hand HIV. me now

David Redfern

everyone. Thank Hello, Luke. you,

our also the business, is As competitive strong from in of benefiting rest HIV execution.

in two regimens voice HIV of and in across the the our both delivering We we U.S. leading the the is the are benefit in and momentum, share drug clear and Europe have business.

on seeing outstrip share dolutegravir now traction key very the from scripts about achieved other are regimens, see share. data TRx market. switch We Dovato TANGO U.S. which regimens We Dovato saw U.S. now Difficulty] accelerate of X% its in is the dolutegravir particular, now from competitor one-third the one-third come U.S. inflection of strongly. of share [Technical the point helped have has This demonstrates therefore of a in U.S. from the which of only and over switch one-third performing A Difficulty]. our the inclusion Dovato [Technical NBRx two-drug share we patients, NBRx that regimens. the have new We

are regimens helping all the we all countries. share gaining share share As Europe, across growing out market our market switch such, roll are the voice measures been pandemic launch In markets ahead all seeing to market of net as of leading Dovato. to able overall, to in increase we overall positive is Europe of in the We've has in continue early Dovato to U.S. now the we a despite and dolutegravir dolutegravir and

FDA are setting. already U.S. XX%with has seen discussions on coverage also We CAB Rukobia, our good therapy. over of we insurance the making XXX progress in PrEP which a start in with And have patients positive for the on

of Dovato building now CABENUVA we with revenue about talk and We expect flat the approval. Brian still are have hand next will U.S. PrEP overall XXXX Zejula to XXXX. return in growth for a and broadly year the the Consumer. to first half momentum established of launch growth in to expected first on XXXX XXXX, U.S. the quarter anticipate over on for and a approval track but HIV to of to I for anticipate be We in file

Brian McNamara

a progress Thanks, is is update quick provide to and David. integration, progressing on I'd like which our on well with track. firmly

Our continued despite positive momentum challenges related pandemic. has to the the

At track. the delivered to since our and of XXXX Pfizer unchanged. are the XX all transition are the markets provided made production guidance significant XX% closure revenue XX XX% time milestones co-locations of are of warehouses closed. employee this financial the having XX remain Healthcare complete transaction, we've and systems site with integrations the of of remains identified and and for Importantly, we've synergy market the on now this pandemic. on for cutovers, now date. Consumer start transfers future Furthermore,

We into growth. business XX% back continue with synergies to to to of annual million drive £XXX up reinvested XXXX the expect by

have in We target our delivered £X Through signed. brands, divested commitment than our our we strengthening process, XX with growth-dilutive on divestment billion of have meeting transactions also portfolio. more existing already proceeds this

on system with Our the and organizational separation well track also underway. program around future work separation is structure

wellness. growth year-to-date under E-commerce result, strong sales and over market. about the and to year-to-date points such on focus category a with focused bring in forma China, excited to at portfolio X% by growing and the fantastic performance, and was to needs XXX% a continue Coming year separation. the some together in health. Now of as with sharing and to U.K. across I grew business high end And a supported systems on all this of X.X this it's forma Germany divested strong created, consumer across results year. on goal and addressing be review at we to all years than sales, benefit a volatility to categories, today's behind integration focus the Caltrate. ever. share three take pantry relevant all like a great behind about Consumer better overall consumer results. drivers this remember supplements and continue in of to the and you Key is out sector that grew percentage up XX% a a pro Centrum, have year-to-date potential run-up will healthy the ahead the over performance footprint is last leader from and work On geographic times markets revenue everyday with a positioned teens strong global minerals Pro look brands share now more few U.S., loading brand Vitamins, back brands level. representing basis, in the I and of detail what of quarters now Emergen-C category-leading I'd on and the important growth. are driving growth I X% increased this to as which we Healthcare, cutover. health saw growth more by to excluding forward over the coming

share. the market we are significantly gaining and ahead Importantly, grew of

of our the exciting priority or deliver gaining of year. launches double-digit eight this we our single-digit to of share. sales we Across five brands. nine nine power so innovation, brands, Turning a saw with far On high growth them or number holding had

category market early last doing. six give growth the we couple me topical combination Rx brand. to fourth and back the We delivering U.S. May, also category, or the pain and years. number pain U.S. U.S. it switch to world. Rx the in the ibuprofen of and hand launch The the in the and Let is the overall over topical reliever launched one globally, the a the on XX the over what is in years Voltaren brand Voltaren encouraging. OTC launched a been since despite OTC is one quarter, off In having our we're start, just is With in HCP-recommended to in on some Advil not over pain growing acetaminophen I'll you XXX% which Action, details number the category share switch first-ever pain in color results some great that first are Emma. of topical Dual just

Emma Walmsley

four of pleased range. we've drivers adjusted to We're This, rates, to track also disciplined control So execution immunization delivered in our have in remain growth for we strong quarter delivery in vaccine summary, of with with costs. within performance deliver underpinned progress improvement year maintained a new this portfolio promising able of two had and COVID-XX development pipeline we've and In for five assets we've including advance quarter of possible generated antibody priorities to the approvals therapies our to of three into performance adjuvanted vaccines. data solutions in innovation, vaccines. support and importantly, collaborations been very development, also clinical major an commercial long-term against trust. together on by very R&D, our resilient And EPS guided the our RSV

will world-leading of consumer with creation now Consumer continues and growth a and company focused milestones two for company and on believe achieved program Roger Health in integration separation health the our two We're to science returns of shareholders. the companies: prepare R&D. to We some and and new we dedicated the deliver the into at group joined and genetics a rest biopharma team. pace significant new system health. to important Hal the companies the sustainable new for have Beyond of for new everyday immune options in these Q&A by

we're ready And take questions. so your with operator, to that

Operator

Thank you, Emma.

question from first Keyur Your comes Parekh.

live are go You in Keyur. the Please call, ahead.

Keyur Parekh

you all recognition Thank on question. taking achievement. congratulations Dave, my for your of Emma, first of your

that, management just who senior with the so team [Indiscernible] your linked best So, far. curtsy technique among on has that,

Emma Walmsley

I on recognition but of you hands company technical up house anymore, my nobody the going can going for A the in lot to Keyur tails anyway, question. takes it’s assure floor that, your on their off

Keyur Parekh

Well.

haven't still the so at questions. there's some two about you out and answered that bintrafusp your You of on put confusion One, Hal, update the amount alfa. question, partners Merck the

kind you enrollment you Clearly, on, proposed your if perspective the just isn't happening. what of kind of of share made kind the I continues, the of the So of update. wondering expansion could but was trial out

be you if or end Shingrix as perspectives for what of level of you. Shingrix kind to was the I you irrespective kind to And back the of of comfortable the much the how secondly, that reiteration feel of quarter? fourth Shingrix the on might just to, that. fourth guidance into So, could does, And quarter? relates then coming share year, full required do during of to what range it bottom the enough get of some the wondering there, on get revenues relies Thank

Emma Walmsley

Thanks Keyur.

specifics on the more then to Iain contributions. guidance first. to So let's over Shingrix come And Hal for on, a bit

Hal Barron

up, the much robust patients Keyur. we to and on I KGaA, very response the you thank question, that, a Well, data demonstrating XXX some well-tolerated data did activity it's backing important I of very collaboration over a we Merck encouraging Maybe with and note Okay. for profile Phase really set when safety think in lung. very it large initiated and

appropriate trials compared real, when times, we we've that obtain to important study is do whether As randomized to these data. it's think to many are controlled And effects initiated this observed to XXX really controls. said so-called the what see, randomized

set you ensure that your trial. to with say to last I And OS. more it's the of any PFS As the we'll updated XXX-patient I really the expanding. is data answer not need results on questions be of of we size. while full specifically. have including I to we discuss to we until and week the integrity can't await study know, say final important And continuing data And that wait study, a the sample will data, you any

comment that's leaves So this point. I some realize with to that questions. I really you the But which can extent at

Emma Walmsley

Hal. Iain? Thanks

Iain Mackay

Yeah.

in an to grow scarf progress guy for opinion that We And just wears year. Keyur been So be that, more on a happily formed Anyway important how curtsy moving that to full need in anyway. point my I we necessarily the by has recovery -- from September. in best this a the adult in do Shingrix, don't through need are. this group, by the absolutely guidance we terms But we've in it's way immunization place only into the clear, the recovery the That to look, older do that being really to important that seen. encouraged rates, long we've extremely long, October. continued where seen beyond we adult sustain that's immensely of we the

Now September a great was month.

take by the sustain range. to recovery far Shingrix, September, through but also see days I lower we month that through below the data think us obviously in probably was that number the should the of Shingrix. prescription we've Overall encouraged to guided the had that seen we we and October, we weekly X%, certainly immunization so guidance for that month our that it that we're very year-to-date the then can of best provided end single had growth

Emma Walmsley

this is to of segment, prospects a just fundamentally in driver that, year be that Vaccines Shingrix growth ever the to definitely if And great will we to And be absolutely growth and for Thanks. opportunities think convinced want reinforce years to that. we're the the reminded for complement come. the company, I

So please? next question

Operator

you. Thank

question next of Graham America. Your comes from Parry from Bank

ahead. You call in the are go live Please Graham.

Graham Parry

taking Thanks questions. my Great. for

So quarter? the consensus And margins in now And increase. without single-digit would your sort BLENREP firstly, the guide have quantify inventory? level, to So, mid- the secondly, benefits there? those on adjusted still of operating to restructuring be would you R&D coming possible in it in then high income and pension around been assumes

similar about were flagging at I from of And BLENREP So the you have both, XX% obviously this XXXX. growth year a been benefited for write-back. of some would inventory and increase think to XXXX the That R&D. XXXX start in it's

continue benefit sharp us inflection help expecting pipeline? be XXXX, a as R&D and upward just we in the Thank one-off to away you you could go should invest in the understand, So you. in

Emma Walmsley

our So one I strengthening to think to number the priority to reiterate both of But just is still pipeline. keep Iain. those

expect do around see perhaps to next that. perhaps but could a But we Iain shape year. increase, some, So put strong you

Iain Mackay

of into £XX capitalization all the still on what continued We'd R&D pre-approval prioritize to TESARO across much how savings is, more here slight and delays of pipeline to the factor. bit expenditure just recovered. regard. Yeah. to progress in through fully the and and got expected back in programs efficiencies but Absolutely, programs deliver to and year those inventory on We've so think that do from again. are within the and synergies Hal in to next can expect our the have those we we spend a the have double-digit and benefits year continue and consistent. priority track made to to we'd Graham reiterating When back main very for that our experienced we've on any just of your extent the more to question. detail expense, BLENREP you year that thanks gepotidacin on I largely turn on of point north go R&D was million earlier little the kept Those track pandemic. the been would that. R&D terms the next R&D in And manage growth in much the Hal in see is, continue absolutely we acquisition very as guidance remain do realize team Reflecting that invest broadly

Emma Walmsley

of in to and to would overall be that of I whether the and Consumer – would I we're note Graham But you could you some R&D around Healthcare and Hal terms the sort you down it and Vaccines more of integration of in governance cost with wonder spend. like both don't color the through have thing add pipeline slightly add aspects sort seen the Hal control. of other progress because anything perhaps governance

Hal Barron

in But it be I'm we'll that the making to the genomics human research, tightening functional well. for to progress focus on of that We're and high even and using in removed encouraged into of as We're adding started thanks progress trials that trials assets neck very study. I we're to head pharma particular new including nice Emma highlighting to last added the pipeline. doing We've on lot RSV three sort And also BLENREP moving Graham. vaccine III. we progress very overall, further. on making using of a the to Pharma they're her up The making are we're continuing vaccine think high the move reduced a that to importantly, bar highlighted a We're things. XX little of molecules great three a second our pipeline we data. COVID the strengthen side in that two great aggressively areas ICOS as but a advance Phase But Well on bit based Yes the progress the genetics last promising, lot in area. on Phase bar pivotal research in going by slide. have actually we're studies the And comments and well on making in a -- really very eight assets have spend think side II interpreting research and highlighted been most

Emma Walmsley

Thanks Hal, next question please.

Operator

Thank you.

Your next from Anderson Research. comes Wolfe from question Tim

ahead. You live call go in are the Please Tim.

Tim Anderson

one to is upsizing you that, a it's showed bintrafusp interim that, need enough you is the didn't other Hal feel go signal. equal which to update survival; can agree of trial there's hit only that interim to the you would different because to on would the that I want signal interpretations for and Hal. recent that worth very I two if a the saw be trial opposite you weak to upsize the not back the

milestone the partner? question another up is your Just then be first will it's on coming pipeline clarify to in and a data XXXX. to agonist paid question ICOS there second And half

a randomized second-line have alone. plus versus trial docetaxel ICOS You lung docetaxel

on trial. with Just that odds thinking success your updated the of

Emma Walmsley

Okay.

one paid been there's any date. please? to to you be also just on no further the Doesn't ICOS in milestone basis there mean do the So on comments of date and confirm But couldn't bintrafusp on future. the to want to data Hal make that

Hal Barron

Yes. Tim thanks for your question.

Merck to the when of work Our outstanding have be on how this. them and KGaA really discussing we interpret with partner goal partner is the and be all choice to another to to company we've an committed lead be

the you, I I and data from with typically frustration So sense that but the think comments. should comment be it's would making any before trial honest more I the to best said we await

So that. being sorry about for not more transparent

you the about end your lung the XXX-patient And at of expect. design Phase all terms points it of where study. looking described. sort might the II a be ENTRÉE study From study ICOS is question that's the about classic as we'll In you memory

there. us incremental ICOS the think engender a really that that that activity I will be the be first important it gives sense because will randomized data of could

about it designs the and molecule certainly where in program that, to activity And subsequent the fits so probably and huge be boost would the I am and promotional cautiously a medicine. that drive optimistic study thinking

Emma Walmsley

Hal. Thanks

Next question, please.

Operator

you. Thank

comes Your JPMorgan. Gordon next from of James the line question from

go call Please live You in James. are ahead. the

James Gordon

James back taking please. coming If Two It's Gordon question. Hello. point. questions same for from JPMorgan. the Thanks to

which a giving an you about you pipeline there cancer broader, be hasn't to as paid. in say into other started you're as investing much how the the entered is flow still not saw specifically that Just thinking you bet trials? go as to dostarlimab. more few see news more just to a comment on go area mechanism specifics could noted first partnership? over any we're increased -- the this would next or So TGF-beta one can frontline much I been first is going this generally on But more in just milestone about confidence what this this interim see you the broader, or And going at would the question. GSK investment be So question where do when be years second then, and

III So deal it with know going we're dostarlimab, dapro, XXXX. have the NCEs And in again recently renegotiated based agents to on on the dostarlimab and data the partner than so slides, other other to I non-COVID-XX allows Phase dosta. you PDx you Zejula

something this the much have? Should other excited for we more dosta readouts be or assets just about there a focus? that So, that dostarlimab? how of key this is XXXX, one does think much you're is potential big will Is than

Emma Walmsley

to both Hal, you.

Hal Barron

Okay.

maybe go ever. having -- class so It medicine with me oncology excited dostarlimab will a as class, of dostarlimab. about has probably me and Let first. which is the obviously the PD-X/PD-LX biggest transformed let the course We're be greatest part of

We attractive one. PD-Xs, an X-week It's to think q have excited could it's dosed that we're at a than be other So, dosing. attribute. higher actually level

the think particularly to opportunity with is it dostarlimab with greatest to I combine for reagents. us able our pipeline be

with study inhibitor. bela the have maf PD-X We with DREAMM-X a

that lung PD-X pipeline STING We combine opportunity trial. have to with We on are certainly the other whether or and have opportunities first inhibition be reagents combine and like the earlier CDXX course to ICOS aparib of with ovarian and in dostarlimab that agents. in with

very to we're So activity. excited our about and it nice its pipeline a is complement

line we've cancer, it's in in course, and active the Of frontline got also both endometrial second the study going.

a endometrial some colon have et point hoping approval at we with data can the We beyond that cetera. are tumor-agnostic with

of niraparib that's as give flexibility we why So, well. it and think part you as lot described on a and us lot a of in we has potential renegotiated

I didn't the question -- down. Sorry, other it write was

Emma Walmsley

Bintrafusp, in broader studies.

Hal Barron

Yes.

more a got seem protein bifunctional the decisions we on about So, and I data, I we'll excited data as activity large for the target us attractive. invest about data-driven well-tolerated we comment very in that very to and than really the the and I for to PD-LX data, can't inhibiting to of subsequently. that since the will as rationale where profile. to sharing leads more that. where have tumor bintrafusp, of was protein The say we and incremental to But robust make sharing we and preclinical get Phase signals were be is And TGF-beta hit invest. nature

Emma Walmsley

Thank you.

Next question please.

Operator

you. Thank

the Cowen. next comes of Steve line from Your from Scala question

are call, go in You Please live the Steve.. ahead.

Steve Scala

Thank you.

to two-drug First, Dovato inflection the speak that is to yet or do the So that in you reflected already the come? you think first in numbers, question. that's regimens is

I would like ask I of this thinking the to Board is XX% XX% about CFOs are companies. Board former dividend. know call the But a question Second is drug the it's of decision. recent on and on another

So, that building dividend majority the I that free find appealing in Board of interest the best policy would Board good paying the the you company? likely think of of cash a change would that thinks you. be would half Emma, portion dividend. can't Thank in disagree the flow the a to cover out

Emma Walmsley

Thank you.

the prospects HIV moment the in growth business a also upcoming including our come David pipeline. for to we'll So, XDRs and on

towards a the afraid I'm clear views Steve, for working And is to terms dividend at David, absolutely Obviously, Board the I'm Board's the on stage. and on in been the over group. we'll closer we're allocation contract On with on update be confirming dividend policy. HIV. no what for this but the you we We've in to position with separation going distribution business Healthcare that to further of that, separation full to for Pfizer. no Consumer the the reconfirm capital of get going that, dividend to there's or change as comment on

David Redfern

data said rapid the summer. I pleased strong clear the in in particularly pickup. the label we world, in very the included a and I where performance everywhere U.S., mean switch and the the we're my in in and the Dovato, since Yes. in NBRx very with Thanks it's as And rolled remarks, regimens true. two-drug in particularly of got the seen we've inflection TANGO we're is Europe, now It across seeing Steve. out

at running X%. over So, X%. XDR NBRx just around is running about TRx is

symptomatic more it's but U.S. still there's then gap course in particular. reasonable So the NBRx time physicians data, of of there, all I in a think But have. into coming trend I is experience the through data numbers the it's whether the clinical it always some obviously And that data, TRx. just gap lot the the to the in come a think of real-world in the quite now

the strongly momentum come We and TRx more I numbers. and very through more think in are that in seeing will good

Emma Walmsley

David. Thanks,

please? question Next

Operator

Thank you.

from Andrew Your Baum next Citi. question comes from

Please live are call, You the Andrew. go in ahead.

Andrew Baum

but Thank longer really you. a I've it's got one slightly one. question,

AbbVie Emma the the ArQule; could just that compared the So the you bolt-on within any to Pharma you priority. and the policy that given recently I'm peers late-stage products and help, is the in I number that to doesn't signed still Genmab; Daiichi; surprised making Astra that synergies last XX business sheet with meaningful its for with late-stage pipeline but investment When haven't the hematology acquisitions Lilly obvious you're GSK restated assets. strongest area. that look monthsMerck has in taken for have the one space the before we seen be GSK your firepower Loxo. building do balance activity at doesn't have dividend from particularly that

So strategy? late-stage make it Is this am determine the gating for are the internal is, concerns still of I U.S. in What immediately. Is here? of looking could am order hematology assets missing question to the BD about what reimbursement? you're sense for accretive There valuation right for I missing? Is some which be future it does the you? it

Emma Walmsley

it's number be to our development. continue because at one of sales priority are one sure around recognizing CureVac business last up for our could ones and successful important that anything a demand. announced in platforms review technology it's we an biopharma that with Well for having -- we potential. look the I'm to Vir, terms observations strategy you're we certainly built We line it's alluded that's bar missing market and we've make continues for or as we they're keep has this deal Hal data allocation if clearly with and evidenced fueling number But We be a as it's pipeline kind for discipline strengthening really we as later in to including the by and right external also and around why significant year priority quarter of we high. capital this vaccines next year your in the internal in the that for we significant returns. that see exactly see deal priority to whether a with the out keep have we've global absolutely year assets it But want something with which clear as struck obviously multiple topic sure laid options development. not And

area this team to be energy. we prioritizing and an So and continue continue this to for space focus watch as

So last we to to now one have I question. think move time

Operator

Yes.

Your comes last from question Holford Berenberg. Kerry from

are Kerry, You go please call. the ahead. live in

Kerry Holford

Two you. please. questions Thank

comments life. us example? Firstly, on Are season whole detail could you for talking if the a one cover seen for there antibody shot more provide Do haven't here. potential we data be talked do guess half And full did know COVID we you being months? we And when on but you think is slow? we would quarter around winter much could and expect with first-line you helpful. the wonder -- Zejula, a any weeks, feeling I an your contribute I extended you ovarian setting? any spoke that about that Thank be market. about But indication to in significant should continuing expect in progress think more made ramp when the the you. in to in can then sales I sales the

Emma Walmsley

Kerry. Thanks,

possibilities up Luke, on So antibody. to come the prospects the please you we'll the then Vir finish Hal but and like to on back to to first come to But comments for Luke Zejula. with Zejula, I'd on

Luke Miels

surgeries interesting. Sure. it's when U.S. it's not -- thing the context Thanks, I bulking one Emma in the in and just thanks, Kerry. mean I you put really at look interesting I

June April I below levels and and about around recovered in of XX% May But the steadily think and dropped through they're They XX% it's they've February. by fair. still July.

look effect between we the we yes in in sales maintenance. well a because at for But line. and first spread when label and them an in Europe. X/X about patients But have quarter patients U.S. are around now it's treatment the are So and you patient on the line X/X flows. first of look really about X/X treatment from of we of don't U.S. that's of the in having X/X our in -- we maintenance If look of obviously didn't coming about split on Zejula now; first of line if

is our that your and look share at you If accurate. point -- growth is

see COVID Hopefully, overall and start at watch Our some move come number the environment now class point from of people first away class. through be line in in begin within we growth can and from to it the olaparib wait growth we as has some the and see on stabilization reduced. to the taking

Emma Walmsley

that opportunity here is the And really as in Zejula expanding ovarian. on as wait watch and XX% we beyond hope due course well

antibody. back Hal Vir So to the you

Hal Barron

of actually very number is a unique The special antibody Kerry. Thanks Yes. reasons. Vir very very, for

to resulted Luke that approach antibodies As such is to mutating from over this chances if was for mentioned in epitope and infectivity rationale therefore patients SARS-CoV-X. exploration COVID-XX both that. for in with And that SARS I time neutralizing through that important was period that think likely around the of an reduce highlight antibody's significantly has of important the it's this choosing argument and its the found virus presentation, binding the antibody the a of very tube the

resistance many the mutation resistant monoclonal. and DXXXG that's to clones So single through the important think a fitness somewhere be between of even it where drift that's had as going emerging many, particularly becoming think patients advantage. XDR And clones data the of we than to was important genetic regions are the the to and the due X% Lilly probably and some think that X% a we I are incredibly why more very there's given limited

an receptor probably only sure that Fc has that, your be, actually it modified than because that it not somewhere a typical neutralizing, have not will extended longer this the substantially between clinic. expect modification, antibody, other months to a which long you'd highly that from to has in duration done three which four considerably exactly be addition we're how it two, antibodies point, we half-life even been think it likely being will been but In gives maybe on more most of of what

But reasonably destroy virus, to able confident That's antibody increased be the with unique. it neutralizing modification that there's that very function, effector addition infected antibodies effector of the the and should cells and being that's you would the think. don't addition, a to in are will so So function we half-life. through bind other with this not in we're extend see something

allowing maybe use efficacy to greater us et give lower us cetera. doses, could even this so And

but we effector not modification extends the function may So Fc half-life, the think very only be important.

combined antibody that's compared the does preferentially the And that's single lung the and attributes is it ability into also which monoclonal isn't dose But being the give clear. lower to again to modifications neutralize the in with we accumulation of we to some or other Whether the go that distribution-wise another monoclonal antibody. Fc other advantage. effectively these a lung, think So likely of mention strains due unique. will most do I'll nature that antibodies lastly, to the explored see just resistant seem

a think that. really COVID. for soon data this So solution have it and hopefully, very about we're And excited to program offer we'll support could significant

Emma Walmsley

which for So I'd optimism, a reason concluding add.

to the which on we've firmly by drivers to on for So and very long-term or we're circumstances, separation recovery our of vaccines. the exciting in progress returns be that our range, and track strategic despite whether the challenging resilient the multiple for shareholders indeed the particularly much preparation, in prospects options guidance and that both delivered we particularly performance execution fact we're strong COVID optimistic commercial and on in near-term terms gives within We're growth across seeing think coming imperatives, pipeline years. that is be track solutions including for encouraged

speaking much thank and us that, joining to soon. you all and very you with So, forward seeing look we for

Operator

Emma, concludes and And thank you to for Thank conference speakers. everyone. all That today. you your thank you call your

and enjoy the You may you joining for rest Thank disconnect. of your now day.

GSK (GSK) 28 Oct 202020 Q3 Earnings call transcript