GSK.L - Earnings call transcript Q3 2022

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Operator

Good afternoon, ladies and gentlemen, and welcome to the Analyst Call for the GSK Third Quarter 2022 Results. I will now hand you over to Nick Stone, Head of Global Investor Relations, who will introduce today's session. Nick, please go ahead.

Nick Stone

Thank you, operator. Hello, everyone. mentioned. just as Nick, It's Welcome to webcast conference and QX year-to-date investors and and for XXXX analysts. call our Earlier today, the presentation was posted to gsk.com. And to our sent by also it distribution was list. e-mail turn Please X. Slide to usual constant exchange or be the This and stated rates, harbor our using on CER, we'll is performance making safe otherwise. comments unless statement,

presenting Healthcare was Haleon. result, a And on reminder, continuing for XXth the today GSK. operations a As business of the as we Consumer demerged July form are to

portion we last plan This our XX X. to minutes, where speakers aspects XXXX by the today's [Operator Turning Miels, Iain with Deborah Redfern. Today, cover our Tony Q&A will is of to Walmsley, and phone, agenda, the year-to-date results. Slide be all The approximately around also are of QX and questions. for David call presentation joined Luke minutes on will Wood Waterhouse XX Instructions]. The Emma Mackay.

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Emma Walmsley

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Tony Wood

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Luke Miels

XX. Tony. Please Slide to turn Thanks,

performance operations, growth X So in quarter of from excluding sales pandemic double Specialty growth of good our with total commercial growth Xevudy. of QX, demand we saw so momentum, guidance full the sales all product Xevudy, across overall Based we've increasing from ongoing and X%. groups. Medicines ex on our digits, the percentage came strong execution X% points this increased year and in low sales to

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performance to on Turning our Vaccines' Slide XX.

movements. In year strong U.S. new performance fourth lower with demand this was of sales we the of Vaccines' in year. Shingrix's retail in where growth be growth Shingrix plan impact year the XX% excluding is with higher XX% expected by of drawdown turnover. quarter and We earlier representing U.S., reflecting continued offset continue in unfavorable deliver quarter And QX, In prior sales are expect nearly of nearly the and we performance expect to footprint. the in Our Shingrix pandemic and outside sales channels, now growing XXXX, XX international, was was the X%, in vaccines This QX launches quarter strong burn markets build by countries, growth available record from of both we countries driven vaccine XX very nonretail Europe market. delivered expand and U.S., on X we of channel strong, the seeing with which during coming year. double-digit Outside we in another due be impact geographic wholesale benefited with record sales. growth to launches in remain of new execution from partly commercial the global the to from recovery now of inventory this to to the our now inventory previous Shingrix expected to than U.S., inventory sales track Shingrix,

the For up expect contributions increased versus to Vaccines the mid-teens pandemic and year execution strong overall, expectation our higher commercial in excluding solutions, market CDC increased to for growth and in full across Pfizer. portfolio mid- the U.S. high low the reflects This due from QX. share teens, from Bexsero sales to in we purchases

hand to on now Deborah Slide me over Let XX.

Deborah Waterhouse

in up patient excellent quarter in X%, drug XX% each our Thanks, Apretude, Strong of commercial which billion, accounts X behind and portfolio, from our and of of innovation Dovato particular. result was with the now Europe and Rukobia Juluca, of our the execution growth X%. regimens HIV GBP strong demand of and for to for comprises U.S. sales. taking Luke. Cabenuva, growth XX% another good Dovato, year-to-date We sales X.X benefited delivered Performance

Dovato For time a the our Tivicay, for of business. XX% exceeded in quarter, Dovato sales first of total HIV accounting those with almost

also injectable the At Vocabria/Rekambys of this compelling, Turning Cabenuva, as first-in-class across reimbursement to AIDS supported Vocabria/Rekambys and Europe. million, treatment. access market were XXXX, is long-acting portfolio. data settings. known the patient treatment demonstrating study reflecting GBP XX% XXX innovative high from new health U.S. CARISEL was our regimen Sales successful our were recognition demand. European study, of to of quarter less for in implementation the regimen for and Europe, HIV. pleased present medicine strong care daily of outlook is across [indiscernible] a long-acting the than oral More stigmatizing brand that complete for the than levels range with strong The we and

the of Moving XX addresses current prevention superior issues prevention broadly our hand of delivering with NXLS, PrEP ID proof-of-concept these our continued months. our our than to and earlier, now data important on and as the associated unmet decade. efficacy GBP X outlook expanded investigational, options offering will results U.S. conclusion, options in people to mentioned QX for congresses from to week, adherence Iain. has XXXX are product is were in step study towards medical successfully long-acting mix Europe. sales oral Glasgow. Week present is available the first of In to every million neutralizing evolving to across the Tony scientific world's Launched quarter. an recent end more area HIV would is was I for positive and January, in our the prevention. the over HIV positive prevention. over Apretude Apretude tablets. of Apretude momentum who In of benefit the we dosed HIV bNAb delivered injectable in the antibody. need And as in the This application demonstrate Apretude XX finally, and the issues. daily stigma last accepted from pleased demonstrated highlight, HIV forward The make has abstracts huge an for

Next slide, please.

Iain Mackay

Thanks, Deborah.

references exchange to As at constant unless otherwise. the stated I financials, cover rates are growth

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Emma Walmsley

lastly Thanks, to Iain. XX. And turning Slide

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Operator

with [Operator Instructions]. And that, Gordon JPM. first question from from James our comes

James Gordon

JPMorgan. from Gordon James

on RSV was vaccine. adult question older First

market I So the and same share? we the say still can could the in What efficacy Or with we data products taking and you got one Pfizer you've the proxy? public these on up ramp Are similar ACIP now tolerability? GSK seeing the this product if the And being a dominant on a have because comparative end so more pipeline. maybe squeeze domain. general GSK what better the recommendation the Shingrix but -- like like? might could which a good tolerability? could question, just efficacy what also on And follow-up not look is Is in a

about some thinking targets set pipeline? you It before. are were how like the quite be, would seems before. there of focus oncology potential which than bit Tony, for plenty for a peak sales question a less And is a So

So Blenrep outside review? other areas where oncology products peak there sales higher might potential? they're And Zejula, those under you Jemperli, maybe forecast? see multibillion are [indiscernible] Or dollar be

Emma Walmsley

Tony question strength on is overall your And reiterate, X-year we back year and the we compared were both I with pick our and when ago I are you and presented X I development on across the for and stronger X you come to pipeline position think, then comments, questions growth a early And and well. in Obviously, my in away. about perhaps question. on better as the you Well, as outlooks in and a on net efficacy maturing periods moment where Luke, way But quite things we and basis. can look a snapshot said Tony, of things added risk-adjusted James. RSV there. material Other business when pipeline, can we the horizon a go chunky what both those talk which time Thanks, just know, let's want pipeline up fairly I'll of to the ramp. we'll just first, a have to and some in we've that matured. data, come James, tolerability, deal on then prospects.

RSV you expect we'll of presentation on always comment and that would on to some But the RSV your we back. first Tony, with -- round, But So then adjusting. come if on keep want in let's of deal assets. all, to pipeline building please. the first,

Tony Wood

Yes. the for Thank you, Emma. thank you And James, question.

that disease best-in-class on to which know consistent lower in comorbid has efficacy, And XX% no we also XX with across with again, disease consistent really on tract populations. vaccine vaccine thing that both remind a efficacy of we to serves we're the vaccine, stress those we efficacy And fact population an overall the XX% vaccine XX high against to of is there, our is high anchored in efficacy I RSV either And highlight XX.X%. in show from of hospitalized efficacy adults have have population. particularly A that respiratory flu and the And the in that profile. strains, the impact data CDC the you, that important we with a comorbidities. coadmin, are those B confident against and RSV board. first just would I'd that The have vaccine with vaccine that

efficacy confident So we're our in profile. best-in-class

of of a As we far the is for as mild it with leave RSV entirely is Emma, shows moderate. is to X that I'll answer. in concerned, terms seen resolves of data the tolerability within the there have vaccines. reactogenicity It And reactogenicity adult that level consistent it's majority days. then

Luke Miels

from, how We've with and that presented position, companies, point would I relatively And the And by evidence more mean position of get done conservative expect that companies. think see [indiscernible] next more at they reflection, this we evolves. June on as take that let's ACIP exchange would have year. benefit until market both I obviously, point, Sure. occurred a just early build both but Tony's I research to

us see , only of So is you interesting that in do terms actually of patients to their depth XX-plus terms enabled What's some tracking. in has is actually X in healthy. of X

doctors. that to of said emerge X you when at scientifically are be guess, X/X efficacy. are perception Tony which you consistency, that and has these I They population again, each look of individuals. see I terms in the they and critically, it's hospital But So They of start year. understand that difference also understand the the see for to these products actually practicing understand They're their And perceived confidence unhealthy. think intervals. fluent reasons patients go to in

debate. we're forward looking that we that's and build So think certainly scientific to something I can on,

there's In obviously, But low potential vaccinated. subjects terms again, amongst ramp, of of with change that. levels awareness the to that vigorously companies, explaining will be X

obviously I of think good some indication beyond of antibodies the that no solution is been press that. coverage around kids. there's are a Physicians aware results the in

will But consistent will the time. steady understanding this ramp expect we over more and So grow. be

Inflation terms I think vaccinated. will in of help Act terms terms in co-pay reduction, the effect, Reduction also of a in to willingness of get single-digit

year-on-year So there's of I the can a grow is a over to globally. going years And I vaccine over consistently exciting. but think next that's build this time, it's imagine class XX

Emma Walmsley

Tony, because we've and of a long And I would don't in Luke. very you the sort second a -- know the And there? if James' the want of to questions. then shift portfolio your then on give Great. we'll part priorities view on Thanks, question to move of queue quick just

Tony Wood

Yes.

course, data potential of for been really of the is of contribution to that focus would disease on see I meaningfully of have standard different our acquisition. of and, about in profile is coming RSV Affinivax allocation this emerging And on we portfolio. the exciting pneumococcal capital the where point why care. from based for X/X infectious me within that just vaccines. the now to the part the have opportunity look, So discussing, vaccine momentum mean, portfolio continue I the a I for we results And expect driving we and bepi see we've opportunity that's to you development

Operator

Our Redburn. second Simon question Baker from from comes

Simon Baker

On may, COVID please. in two parts, if I

for the terms third Luke, space. therapeutic diagnosis in give areas in endemic And an are then Deborah the was and for a stage very update contrast on in this Xevudy, other in quarter in the rates across just the to on it us at one and performance treatment phase. key antibodies we number where of if strong Firstly, a you could of

wonder, were you orders that just to nothing. QX be could came explain if to So I sales what was, appear for that there into the I set And latest you indicating you have QX close circulating the the for that that, update Xevudy just against wondered data variant us Tony, of essentially could you variant. QX. Omicron for on whether if of efficacy on

of very bit that would little a Just color be on helpful.

Emma Walmsley

this you. sentence the at that Debbie, Maybe come asking anything Luke know to expect what give and becomes if add, variant business, But we what's shape context happening to hit what's ahead. switches and add in you HIV. look, to we have we end. you further give a you And can might commentary from also. you areas. Well, Luke, then on Simon, on of happened in for a as Xevudy I'll the that market should I were overall Sure. COVID, don't few first And Tony, a Deborah there's And the that's think more to first to Luke, of that, endemic. the Then

Luke Miels

vitro mean our activity. in Tony them. the about will activity. I I'll using physicians feedback debate actually the Sure, cover see is But vivo from infusion they in take versus still

still and, we so are actually markets, seeing employed volumes in some And [indiscernible].

have Now X not any of to we're governments working in is shelf it in The QX extra to terms extend years. life orders, We're X expecting because stockpiles. years.

a the point it this market see variant. we essentially evolution of So as there's at saturated unless

primary It's I by and impact the suppression remains area still terms on of down surgery cancer about treatment. other X%. the ovarian of In mean, diagnosis, areas,

encouraging still but outlook. China, are recovery exception of markets, confidence rest which starting and The terms to signs us gives with mean, suppressed. the essentially of is the the the of of some revert And to in

Emma Walmsley

any... Deborah, Luke. Thanks,

Deborah Waterhouse

Yes.

to around market, between to we the in much the is X,XXX levels the prepandemic terms that about it of We're X% HIV and at part part dynamic returned overall. of settled both TRx in see so at was overall seem Europe U.S., X,XXX growing to prepandemic. the where weekly. is NBRx If X% Europe, now X,XXX look the the and and So you They market, market have back week. the dynamic of per the pre-COVID. can in to pretty In market is

but the versus where suppressed this do COVID think they've probably I pandemic, where is So were we settled. before

and So a our dynamism market. medicines, you see, are hard in create can to work a as and portfolio dynamic very we of slightly rapid less U.S. the accepted well which, in new have uptake, with that Europe very obviously, both And being

Emma Walmsley

anything Great. Thanks. to on Tony, variants? add, just

Tony Wood

Yes.

independent which demonstrates dominant an we quick have to through a latest be one. global effectiveness the the all I to from subvariant. clinical is believe which extrapolated can add. currently real-world BA.X, wave, evidence That's Xevudy group Just BA.X The of

Emma Walmsley

think I think very knows, that guidance COVID Well, mean, everyone X-year that everybody outlook. potentially We've including has We've this but and contribute care our completely in still I -- our just health year world the been but I remind watching mainly primarily is the -- impact pandemic. We're to COVID in proud endemically. billions plenty got Okay. see through for platform of no excluded -- and from the to what vaccines. solutions happens in through to mRNA, there, our

core forward. the going development of plans our this So is at not

Operator

Parkes question from Exane. Richard BNP comes Paribas Our next from

Richard Parkes

Got for Tony. a question

GSK's correctly. and I in in that GSK capabilities, technology discuss maybe rather know interpreting deinvesting. you'd thoughts going R&D Glaxo over presence in recent effectively of to whether bit fully needs terms just sounds -- that than wondered what investment is allocation more he discuss it selective be going time be his don't focus forward. whether on think over forward. could a I'm R&D years. But in going oncology order it capital like you could or But There's a compete rebuilding been oncology, Just quite to if lot achieve there how just on of you

Emma Walmsley

our just as through Vaccines has to maybe, consistently priority grow been And add and Thanks. then come a GSK Tony, But we'll to Specialty innovation reminder, want might to something you and commercially. Medicines. Great. in Luke,

X/X what will As as bring add of want might HIV, I'll part commercial, at more specifically know let then the I pipeline see in of you next we're but of oncology terms growth momelotinib say, decade, him year. the but within diseases and we Luke, are comment Tony of And as did drive about the on in to what end excited oncology. might that in infectious

to Tony, you. So first

Tony Wood

Thanks, Emma.

committed really, oncology emerging And therapeutic of us area. is oncology because to persisting we're in and need scientific opportunity. for So medical

an Sierra So you and a portfolio opportunity exemplified in approach mentioned pragmatic a can to as care. to Oncology as be deal, terms for of allocation careful the in where by see standard assets our I expect we the one, through business capital a development, on such focus of meaningful earlier, contribution

dostarlimab, the that blockade in immuno-oncology and data our example, access. emerge, in on and where where CDXXX for full the we other opportunity focus access TIGIT to sets of case number starting to have of For a of interesting members us CDXX, PVRIG, axis, gives an

the our -- could suggest then in continue by capital data, which to clinical different driven we that expect deploy will we set So driven contributions. into oncology, see to data meaningfully

line later-stage to continuing evaluate be to XXXX. pause I'll to the make patients report to pass myeloma. and Blenrep's Luke DREAMM-X difference any we're far mentioned, to as we of concerned, expect able in year potential second is in with treatment in the Perhaps As D-X end there DREAMM-X to the data comments. a multiple And and over of in from the pipeline before make and as I additional

Luke Miels

competitive of spend that Sure. profile this of on. Thanks, terms lot a we think, something Tony. theme I time in of I mean, discipline is

build I-O end to would of ESMO PERLA you this all dostarlimab I Tony's the to on for I publication direct think at year. the point, the

intriguing momelotinib, very there awareness dostarlimab the where enthusiasm the this product. There's arm. read study, got, it's a and very that high. then And chemo got of is a we've at research clearly look lot you across market it's around if COSTAR think I a early

product that the excited we're uptake. filing about so and And with involved the potential

Operator

Scala following Cowen. from Stephen comes The question from

Stephen Scala

have programs when and different since to been This I positive other the steps, otilimab been still compared tried quarterly your accountability, none frequent. call. as than far But XX this made such successful infuse HIV, some to but and first is has big creativity. is too particularly a in Vaccines energy, Tony many Hal have over outcomes But leading competitors. structures past GSK for picture years, believe R&D question

has So the Without very you GSK? the think do fix. seem been why case this to at it identifying difficult cause, root would

Emma Walmsley

pleased growth haven't well have we Obviously, industry, that as that the the to picture we XX. great let at you we ahead. current number in much in a -- your Well, in got quarters overall, to Tony, assets. reflections I'm years we I'll ago. on terms model, on terms is approvals, of think core, go late-stage be because the that. better questions basis, we don't the remind are call doubled on that, straight our we momentum I what were than of bring big for Steve. prospects can just number would of did Tony, and X I differentiation. our Thanks, of growth, our stronger. really our have to conversation -- we looked we of But operating as when meaningful net failures I'm again, a on it of at outlook would will your we're we and on everybody, perhaps, And position We nature think -- this continue stage We look sure

Tony Wood

Thank Yes. Emma. you,

strategy was momentum the of strategy and that that term our context, business with portfolio. the So our mentioned, science I regards on to performance. that in terms particularly with of that transforming Emma late-stage co-architect together in co-architect of -- let me with Hal, as our focuses technology performance we has have culture and by I just substantial start the focuses reiterating together was a reiterating Hal, a And

year our better Our past our with the than in performance it's of is and line past, peers.

you and culture to that see I from pick, the in And with particular, particular, meaningful greater focus. decision-making, of late-stage associated on that that than priorities an development today in with focus disease. a I've to opportunity standard our assets change And aspect to on what is which see portfolio. assets the you can our us, focus on XX% capital infectious can now of and it will to evolving me expect going and have into of vaccines way might the a shape you is there, . So delineated that that care, continuing and of improving see investing late-stage continue

and focus a to powerful platform technologies. that priorities I again, platform My we continue substantial capabilities will would we terms So then, building remind in vaccines. in you additional technology suite already have of of in them. technologies

MAPS. in underscored, example technology bringing growth Xevudy IL-X the for other the growing medicines build-in that portfolio. effectiveness exemplified example, in that focus adjuvant bepirovirsen monoclonal by biologics, added on and a through the monoclonal for And quickly Our in recently capability technology for the to a build-out the is now and and in and of Nucala class. our of in portfolio, demonstrated market. -- oligonucleotides, an And cases performance our leading a we

and continue accelerate. you momentum So technology continue on culture platform technology in that the see I'm data our confident in and science, based on a and built focus both technologies, Hal that build-out and technology, was under should to

Emma Walmsley

move to and try We're to questions, going Tony. next speed the Thanks, through as we can. Great. we'll many and as

Operator

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

Graham Parry

that Zantac cases. some us gave of Just you the the details number on interesting and litigation

essentially confusion might be just I have So a out think over you there now. I to XXX,XXX that wanted because there bit clarify of claimants

in exactly the those on what secondly, which something data, post daprodustat invested MDL, you can to those that the outside doesn't in the give do be an unfiled And proportion that have claims. the X filed of economic is you then so XX,XXX return feel deal? given And is cardiorenal are in are are launching worth the and think GSK on Or through the only? is And cancers those the is are it as XX,XXX, for something that able us a a MDL? that the that dialysis-dependent And R&D out-licensing consider would you an really which you would claims, out-licensing make candidate on an franchise?

Emma Walmsley

Graham. Thanks, Great.

So on disclosure I'm of a who, a point counsel, the is our Iain, governance to for going ask point from alongside Zantac and work. view, both general

fundamentals from patient that, our focusing prioritize very always Iain comment on that. will with plans clear. and comment is consensus on Luke. AdCom, much reiterate, and keeping Scientific pleased We're Luke, you we were updated. this point, ask on we're for on feedback the But then defending vigorously we to will And delivering but Iain? safety. latest we'll Just whilst

Iain Mackay

Yes. Graham, thanks for the question.

developed the we cases Southern are and over got the have that look Florida. just you a across So are The weeks the state data point claims if XX,XXX where X,XXX level, cases course federal in state of in couple And of at those over the filed last federal. things. a time. presently, we on the consolidated this is litigation state District the few overall, claims One, been about what within of majority seen vast of filed have we've vetted Delaware. in available, at multi-district of At not based

claimants. if or on the So what significant the else quite those, whether to circumstances, claimants' are amount, the be anything majority plaintiffs' clear MDL is the of as cancers. X actions it's about from transfers really actually pursue don't the that case Rx, lawyers we the know not to XX opposed seems much OTC a to about But of

inform the certainly proceeds case level, -- state majority at hearings at terms in which most I the a hearing of federal December. then notably of And are the how October, litigation degree, of certainly where place informing hopeful September quite to also, decision of happen the is beginning the end filed. or either but Rosenberg's within quite this would Now of of which important what took state of cases this in case might month level, or some what terms is Delaware, state where the and that's important MDL of multi-district the are later the in think now into clearly, to Judge month Daubert we

multiple later. sitting will be of hear a on In case. other hopefully Daubert that the MDL, in terms hearings Judge defendants, terms of the informed the including that that address GSK, decision little within cases are within claimants we'll And within of the again, bit again, by class, those there that numbers Rosenberg's XX,XXX codefendants

on underpinning single is we still this, a this. in I think the trial Graham, haven't had

exactly of decision, claimant's kicking of to we how will which we'll out addresses hopefully and to first The a middle kick middle expect Judge And by informed off the shortly. be hear expect -- a February. case. trial plays in the would MDL year That significant to single degree, will, California off we in be then Rosenberg's that around the reasonably

clear the of consistency grounded and absolutely or in defend So of continue rather in around evidence gives scientific consensus look, case ranitidine vigorously. confidence where of the connectivity And us to terms we are, change form the in causality in of we'll of that, the the sort no that opinion no strength cancer. and each

is to and numbers transparent I evolve think other in all as I matters of add this would disclosure, and developments. provide timely case, terms that both continue here in we'll the

quarterly keep disclosures peeled your eyes in annual we report might issue that's helpful. any RNSs hopefully, certainly, that and obviously, for accounts. But So and, our Graham,

Emma Walmsley

Great. Thanks. Luke?

Luke Miels

short Graham, Emma. answer Thanks, yes. so the is yes and

think and financially do So attractive. that if we a partner We make ourselves, work. can with it's do it it I also

and are the the onerous synergies going we REMS various have U.S., the other do product dialysis, it program, evolve do and I get I ourselves X mean Benlysta if see to I in to think preference phases. think because is an with of don't our and we -- assuming we you're in [indiscernible].

The bundle. on embedded Then and first think much which essentially for in will X is don't which with I course, years, see the the you're months cost, is of the CMS of from is run phase, at which you'll the TDAPA based bundle. X medicine about because about are where point is competing removed period EPOs, cycles, that the volume pre-TDAPA. that

in allowance the will EPO of large have deliberately the drug change. for incentive course, which about bundle dialysis for removed be market strong the The a by created to there's the because, not the CMS they they bundle. dominate the that from amount so will of And utilize XX% this U.S., receive organizations, for

into when heavy game volume with volume EPO. to EPO, it direct very XX, contracting October After for in incentive a will -- goes So XXXX. XXXX to from timelines, run there's September period biosimilar bundle, the a become much back competition it's them. on going that, based our That X,

a game. tougher So

count Now I maybe This dialysis take probably all field on of with people forces. group of these going off. a require be X large elements my could hands, don't to that is concentrated very one shoes of

net-net quite So there, involved a very small P&L point is a what of attractive from infrastructure view, asset. an for

growing For towards share. get not of to X Europe, captured with non-dialysis direct we classical just market Benlysta profile. you launch, I'd there's course, and And Japan, expect the the XX% we HIPs. performance label. And has can broader that's more build But team. in embed dapro the a where to of but first was that of It the again,

got profile competitive think versus So Europe. we we've very a in roxadustat

Operator

Baum question next Citi. Andrew from Our comes from

Andrew Baum

address to Legal liability significant That's cases in the the the Chief knowledge, MDL MDL and exclude closed in the from and about first the witnesses, to spoken resulted have experts background have your you entirety Tony. all into if of, First being MDL the that for significant its question previously including the aware expert Iain, litigation the question been second which including Counsel are where the plaintiffs leading to courts. potential has drug us tell to any I up the settlements, prior you sure I'm shut multiple down Iain. you Could state And question. excluded. is

expansion were. of the taken therefore per expansion You've you those the us development hurdles is referenced what on take And criteria just you to is not protocol. or prespecified criteria III their analysis, just this per and TIM-X for your when patients the this being able relation Could basis protocol advancing tax cubotumab tell into Phase drugs? to

Emma Walmsley

can Thanks. that then... take Iain, you and

Iain Mackay

of in But Look, is sit try Andrew. will all wise opinion. it decision. range we her to Rosenberg's low Rather is excluded frankly, guess. on Judge there this as possible Judge being evidence Thanks, of probably talked and outcomes likelihood the recently the -- to and being topic, I us Yes. a stopped, and think, think Rosenberg MDL inform that probably very effectively to more And very, actually await X of unwise we've probability. much

product scope liability precedent, of hearings In lawyers. can by narrowed other possible the are prosecution interestingly that and hearings of in like and Sargon there be of defendants California, the instances cases hearings, forms and terms and the where submitted evidence both Daubert other clearly plaintiffs

evidence So range expectation have be in practice the think I suppressed. that will a this. MDL MDL there excluded don't when all is any of the we

I await our counsel save Rosenberg. unlikely. are to would going and But think Judge be hear we that from to

think I best approach that's the here.

Emma Walmsley

Thanks, Tony on [indiscernible]. Iain.

Tony Wood

Yes.

you, thank So Andrew.

all, the with of Phase the what to is. III clinical disclose on the our basis recommendation. looking I progression forward I the trial, IDMC I'm data happy COSTAR see say I'm First and to into details don't wait would of want of of

Operator

from Keyur Sachs. Goldman The following from question comes Parekh

Keyur Parekh

may, if I please. Two,

the on RSV you to U.S. due just of one, vaccine the first anticipate ex supply U.S. launching ramp of But the The we With and Shingrix, a kind staggered constraints. kind and for of launch for kind of are you. for we should it expect what molecule? how of for to of perspective? to XX wondering the the R&D would of of kind see -- kind culture you before how prior kind do trajectory for it regards picture kind organization. And kind then be we as you length Tony, and success your see GSK picture separately, might get from when just sales this of XX of the anticipating things an of management launch? you you some what what's of be to your time should takes coming the to months? Again, and saw big And What peak over outlook kind And back R&D from you define GSK different R&D have how that to next broader done

Emma Walmsley

Right.

competitive [indiscernible]. So you RSV look, Over a you recognized, situation. first what to on it's

Iain Mackay

Sure. Thanks, Keyur.

within supply have no constraints We reason.

go years going -- should markets of to will across it's a expect Globally, course, direct life markets, steady. years. the of X building of view. the would we see is a It's It to grows I where be delivery I Shingrix, U.S. from in closer this XX we after its gating, as full launch. to be made unlike The for just building There market. and is would just the to globe. earlier said, cycle. U.S. point quite resource expect building impair in I the supply was just ramp, the because for decision So continue But product to peak some a launch launches that global as to throughout penetration

Emma Walmsley

course, on the the and point duration last long the of efficacy Tony. frequency And is Yes. prove of re-protection. out this is, the one how we of see will data still

Tony Wood

Yes. Thank you.

one. on So X points that

would on First on a all, of standard a development. acceleration to focus to point material profile continued the should contribution those decision-making. and of data again of business to and decisiveness expect with whose continue I particular, on assets you focus consistent portfolio assets an early-stage to is see In care, based

impact characteristics broader And how be to then in it's or technology down should culture far is on of particular of the you overall on concerned, against see performance technology R&D. R&D that as to it platform doubling data, the As expect within the drive examples improving deployment, portfolio. is

Emma Walmsley

measures And profitable generates. growth pipeline prospects Tony. the it Thanks, the for -- growth of let's strength are success, of the clear, be the and

way, that's anyone the proposal the please. next to get is through our so the can minutes By question, right, we So everybody. not we extend questions about by worried call XX getting all extra will an for that

please. one, next So

Operator

Jo question Walton Our from from comes Credit Suisse. next

Jo Walton

ask end third believe X.X markets. the the on inventory rule respect was Thank about doses little I in the of bit the us if million us Could And you. in give an can it quarter U.S.? in I'll bit and you penetration one-question idea the a second more other quarter. level a little tell at Shingrix. of here you the the of

in X talked and You've as XX. about than Germany markets, being more the but Canada past you're the main in

you've of these to What might good got in about So talk of where some getting cohort be non-U.S. can level annual expect of able you penetration? to markets? to sort other be you

Emma Walmsley

you, to Over Luke. Great.

Luke Miels

Sure, Jo.

So mean, to in X.X yes, QX XXX,XXX compares But we just have year. hit which as seen latest X you QX, last in I would week. the TRx last

actual sold. in about So dose million demand. in-market X.X In QX is good

So the flu to consistent concentrated smooth demand which have is season. around and the wanted process over it the year deliberate. very aggressively not We

you X.X, QX X.X, look, I QX think X.X. Because we're was was to proving do QX that. was if

And globally, outside, price terms that this you critical European at In variance slide it's X% from around presented U.S. that to of point I make a if growing average. presence. the international here, and on got you've look the saw on you

the able life in preserve so cycle. been point far we've So power this to pricing at this

European Italy. one to remains So key German a are major We're in markets. the reimbursement. contract announce starting now We're about strong. Spain, demand in very There full of

very completely And And course to launching. positive of have so, else aim yes, see and close before treated with a this market evolving XX-year efficacy signs. the plus gets we continue to anyone to is

the next penetration have see the Brazil. of down flexibility markets may over who well. to levels end Now, at couple price of in also catch seeking we in days in in I vaccination but life this what out-of-pocket years, adjust reach U.S. of emerging cycle we markets, emerging It's don't in those the as the to be in to we early that patients back markets not quite encouraging that point the we with spent time the expect may August. see Obviously,

terms structure we're and of vaccine plenty positioning how growth. multiple this So there's the year flexibility of for in

Operator

Tim is from Wolfe Next Research. Anderson

Timothy Anderson

flows question of business is development. kind My cash and

form limited that in out of cutting development weak take the the it's was one some have point, around That past at could So after that again, pulled to hold dividend. business flow, activity. Because challenges reserves wondering improved of given is put cash not faced and I'm consumer development Glaxo spinning your Zantac. business get seeing the But financial on the acquisitions specifically uncertainty off you market. inconceivable drug if the

the to can the usual, look question deal to bracket you at. as you'll there's end maybe if upper it's business change, So no is my of answer continue sizes

Emma Walmsley

be first clear. all, I categorically to of want Well, Right. absolutely

continued we financial our a continue There articulated a will, and and agility, We point capital cash flow improving of through of always to sheet to exactly with Tony, discipline structural intentions reset our And understood is operating distribution but the pursue helped decade. with also is, and of from currencies. as intent the you acknowledged, mainly anything development also plan aggression rightly We'll business absolutely continually view confident if planned, growth why and pay by view. pipeline to outlook. is as of are that of debt. as development from in end very focused stay change don't by very BD support also as from of appropriate of allocation to there, balance is ambition prioritizing keep forward. due as point we to our it. in the disciplined clear that this for the significant well in of absolutely part add. you important the the no competitive really are But Iain, This course, as some we brackets, profitable it's point of Iain. I'd went generation as know down I performance We're there's on want of And But GSK. that

Iain Mackay

I'd around last generation, flow. few that actually there's and M&A, focus sheet. dividend [indiscernible] onwards. I'm the not with reset business cover across bolt-on the there And years. course focus management is of Strong of done business. on of Emma's point We around cash 'XX sure dividend, add. the over we've a cash got continued to We've from on strong much acquisitions balance got good We've a the that cash stronger did development

Zantac we're defend to change. our for very stage believe we're that very at evidence in our scientific going front. And strong there vigorously going And not reason no a we consensus is this -- absolutely obvious that the overlay of to position. a there's claims supporting So

So absolutely None. capital priorities. allocation no change in

Operator

Peter to Welford Moving Jefferies. from

Peter Welford

how the is given which the decision made Zantac, with of you MDL on proceeds. inform commentary clarification will really regards Just a just how Daubert to and point it

data on bell any is on Obviously, curious, you will competitive event important or Or vaccine. that? wait be auditors could back that that the with of Pfizer positioning and that seen RSV, given in the with I provision? U.S., is an the And that the how that weather? in their think consider time then meningococcal that was now view vaccine. I also guess, we've then prior X addressed just the potentially segment in And positioning. U.S. ask guess impact I obviously the consider the said retail has particularly just that coming from for potentially now on regards Iain, in could if very likely a the to to which could Just populations I saying what Luke to product your call, curious

Emma Walmsley

the add And vaccines, Zantac, may to prospects about commercial people's talk might on Luke then [indiscernible] to suspect but there. Iain other want that. press but release to on I the on want be

Iain Mackay

of and defendants' what doesn't informs definitive. Yes. On year. place take can definitive. anything as inform [indiscernible] evidence possibly the in the it both next that Daubert, by will in and Peter, it It that therefore, viewing And middle of submitted scope else. MDL absolutely isn't plaintiffs test Or be counsel the

whether regard We try it, matter. think have case consider be no, inflection that to the in not court or at point of vigorously appropriate then that to in I we'll at the all. an ourselves don't on we'll is may Daubert outcome to go provisioning defend that But and time. Depending any

Luke Miels

Yes.

the think X I numbers million each XX-plus the versus group's birth efficacy who quite illustrative, either the going going be to XX-plus are to of think people U.S. about these it's risk. populations in at or most the were Again, X back it's million And to are XX who cohort year. I come are about separated. co-morbid in the

course. that it's approved, think quite it's that's I and manageable, So assuming of

Operator

question next from from Berenberg. Kerry Our comes Holford

Kerry Holford

franchise. on vaccine My your meningitis question is

of vaccine the positive aims Pfizer the III competitive to bivalent year. your before headlines Phase So announced file and has end for its

has market by how file? You're to III in positive, is confirming is If have today to to that this Phase can more more Obviously, you data gain. Pfizer move lose and due year-end. your quickly that you

Bexsero remind your pipeline related between question, position candidates can you And you your slightly indeed but in difference how beyond and of that and can me the protect Menveo. different So grow comfortable perhaps Generation are you and also Cervarix. X X

Emma Walmsley

and will Luke come timing to and can prospects to comment on, Tony, ambitions and X X. very you Well, And you strong file know, Gen there. I on perhaps then

Tony Wood

Yes.

we're file confident the Look, we're earlier, and preparing program quickly Emma. I mentioned that post to move you, on to possible. thank So to as as regard as with the data, is track

Luke Miels

component built, see college-age I just And in being protection. very Europe, the the it's first in setting. asset, generation largely published -- Yes. is, The of see and better we terms coverage XXX much is I really days. Bexsero population don't pentavalent U.S.-targeted an mono -- still in X because is Bexsero provide a generation we the a is important We and of targeting terms is preserved of is this, U.S. vaccine. in infant in early And we on penetration which The kids. strain strongly believe the the adolescents, used relatively there think

opportunity. to will the the the shift pentavalent we very be So there a better embedded think and competitive be

genital the U.S. cannibalistic. more we to Generation direct final to utilized aggregate activity the Cervarix Merck's around when at ultimately College-age U.S. And a be a the for pathway new not of I opportunity is Then million, of X by around think with and there's year. of excellent the point in kids, gonorrhea. I again, you million broadly. gonorrhea, which it's the And in analogue the So it's work cases an thing course, label, the excellent then think grow XX with for build you And lifestyle find I XX the risk. this It's an business to, would there look the age every nature warts. about HPV at has high need and to evidence potential

And are these very we compelling. that gonorrhea, around accessible think we to combined elements So Pfizer meningitis last believe activity the is don't vaccine.

Emma Walmsley

Luke. Thanks, Great.

Operator

question from Leuchten following Michael The from UBS. comes

Michael Leuchten

stocking going Just a to the and levels. follow-up, just Shingrix back quick

QX, quite a into high. in forward? with as like pointing think but go flu It you out to were that are, work I were levels you're expect sounds the Or should down we be season? they inventory there we that going running comfortable still

Luke Miels

they kept the utilization, strong we've is order are ordering. visible as true, I've that and certainly this it the you seen to they past, a it confident which mean, guys. in non-retail pointing they're jump I not way. because it and And using in remains trends script And comfortable. Michael, Yes, actually, said in

growth very volume the are encouraging. So

So QX with the not concerned level. inventory

Emma Walmsley

questions. more We've got two

Operator

Papadakis from Our Emmanuel next from comes Deutsche Bank. question

Emmanuel Papadakis

on Perhaps mRNA. a question

you on through the I I that profile modified to seeing investment missed your follow-up sets the that call both [indiscernible] seen to it platform. royalties, a relative expecting priority Phase Is right up we've this the several if into confidence any highlighted be be kind XX if data I about may. thinking as over benefit the can I that's degree kind the are of earlier. assume going external Apologies technology with we step COVID And would by the mRNA. both for principally didn't and is in partner that reactogenicity in And in confidence assets to out times we year? then data your quick still last partnership XX, perhaps the rate that months, partnership improved unmodified what's and You run forward? flu release very QX quarter. should that this Big but of particularly and And regards got otherwise. you've of And the for -- competitive run seem one-off, end of an if risk correct

Emma Walmsley

can then Tony, Well, And just the mRNA. one. royalties Right. you come up we'll Iain, on to pick you

Iain Mackay

combination the are The And settlement. the settlement Biktarvy X Those effect in Gardasil Royalties of is year. the and February this obviously, principal elements. Biktarvy took key of

hitting of So appropriate an rate, informed sales run by but we're Biktarvy. probably it's

Tony Wood

Emma. you, Thank Yes.

that aimed at is suite would remain track. I studies our as well flu, COVID a at flu So optimization which you incorporation in of assessing and internal both an of the have and pace. continuing we of build, sequence in context clinical of basis remind studies context of on the as the in modified

how multivalent a certainly We'll year. vaccine. to able half confident be put that an clear the I'm stands, you first that to end to for placed by solve next the of flu the we equation together, associated know versus half X So all the proposition with of are appropriate next reactogenicity of -- year efficacy the second getting those end when of well sorry, of

Emma Walmsley

Tony. Thanks,

please. question, Last Okay.

Operator

comes Barclays. Emily final Our from from question Field

Emily Field

Daubert. Hopefully, clarification first, it's quick impact and very a the of on Zantac

like from impact i.e., state such to Delaware. jurisdictions plaintiffs reduced via impact And to of whatever I recent actually Delaware wondering anti-TIGIT any the will on that as have Daubert, a the wanted move state on decision courts? if I recent these cancer to You mentioned then of in like the cases out is just where on looks cases? question II. Daubert, that comes then a other was ask MDL that asset in would Phase -- moving any jurisdiction have number just MDL into these any the

could data, design all also of it of you have the like just in pembro sort that [indiscernible] you the the and does there of interesting look on of that given If study. a [indiscernible] context sort comment updated an awaiting the behind in as thinking trial PERLA arm we're sort

that any be just commentary around or color helpful. So would

Emma Walmsley

Thanks. Right.

on again. Tony Daubert swiftly please. So Iain, then to And up, finish

Iain Mackay

At level, District Daubert bound of a Sure. informing district Emily, the by they're is in Florida. thanks Southern state federal for the And [indiscernible] the scope question. not litigation at decisions level.

-- So can on federal based Delaware take by different federal is to precedents What a the states history set is follow has by that tended interesting view. courts.

filed, multi-district Daubert would have the a state that possible currently court. litigation we Florida the have majority cases District yet is specifically [indiscernible] state to notably to at claims could federal in level, of also the in is of Delaware, across Southern which vast hearings related unvetted. possible it XX,XXX the have It output and is Daubert probably read about in of where So that

to them fact know plaintiffs they than the to we the in about MDL So probably that pursue. that X little other relate decided the cancers [indiscernible] not

the that's Hopefully, I all helpful. probably point all that add on that's most, -- at that's can Emily. So

Emma Walmsley

So Tony, TIGIT.

Tony Wood

is a other in that assets combination, indications, development. it's going likely positions out movement are going pace change want competitive Yes. Thanks, see. don't It's than with incredibly compete. for to TIGIT where certain we XX only since But able platform to access, in given move the also for is to consistent to may And mentioned that the that. I evaluate reason, assets but about in more an earlier, alternatives partners building be disclose you certain dominant you have others. doublet Emily. be and to not really as Phase to TIGIT and like capability class II [indiscernible]. Obviously, combination the in And that us see important I PD-X with at that CDXX

Emma Walmsley

I big in you a most everybody. Well, certainly days. hope thank you following Right. coming got people's questions, will we be up to to

our are the quarter We including delivering guidance of performance, on this pipeline. another great strong momentum, landmark year with upgraded and

for much meet the So of on you X-year year, days and decade ahead. our soon. we're this very very you everyone. Thank track the Speak much, to ambitions our to outlook for board

Operator

That Thank joining, your for concludes everyone. you conference.

rest your You of may enjoy Goodbye. day. the disconnect. Please now

GSK (GSK) 2 Nov 222022 Q3 Earnings call transcript