GSK(GSK)2025-03-03 16:03Financial Performance - GSK's group sales reached £31.4 billion in 2024, reflecting a 3% increase AER and 7% increase CER, with a 4% growth AER and 8% CER excluding COVID-19 sales[69] - The company reported a corporate income tax payment of £1.3 billion, alongside other taxes, demonstrating its economic contribution[41] - GSK plans to buy back £2 billion of shares over the next 18 months, aiming to enhance shareholder returns[78] - A full year dividend of 61p was declared for 2024, with an expected increase to 64p in 2025[77] Research and Development - The company reported a £6.4 billion investment in R&D for 2024, focusing on innovative medicines and vaccines[35] - R&D expenditure exceeded £6 billion in 2024, with £2.3 billion allocated to targeted business development[80] - GSK achieved 13 positive phase III clinical trial readouts in 2024, marking a record for GSK[74] - GSK has 71 assets in development, with 13 positive phase III readouts and 23 approvals or regulatory filings in the past year[111][117] - GSK's phase III development cycle times are now in the top quartile for the industry, reflecting increased productivity in R&D[117] - The company is leveraging advanced technologies, including AI, to enhance the R&D process and improve the effectiveness of drug discovery[37] Specialty Medicines and Oncology - GSK achieved strong growth across its Specialty Medicines business, with sales growth in Respiratory/Immunology, Oncology, and HIV franchises at AER and CER[45] - Specialty Medicines now account for nearly 40% of GSK's total sales, driven by strong growth in Respiratory/Immunology, which saw a 9% increase AER and 13% increase CER[70] - Oncology sales nearly doubled to over £1.4 billion, with significant contributions from new treatments for ovarian and endometrial cancers[72] - Projected global spending on oncology medicines is expected to reach $440 billion by 2028, indicating a growing market for novel cancer treatments[100] Vaccines and Preventative Healthcare - GSK's vaccines portfolio targets infectious diseases at every stage of life, contributing to its broad market presence[35] - GSK's RSV vaccine, Arexvy, received expanded approvals in adults aged 50-59, demonstrating sustained efficacy over three RSV seasons[125] - The company is focusing on preventative healthcare, with adult immunization potentially returning up to 19 times its initial investment through health and socio-economic benefits[104] - Shingrix, the shingles vaccine, demonstrated 82% efficacy within the 11th year post-vaccination, with over 73% cumulative efficacy from year 6 to 11 for individuals over 70[208] - The MenABCWY vaccine candidate for meningitis has been accepted for regulatory review by the US FDA, aiming to simplify immunization and increase vaccination rates[210] Corporate Strategy and Impact - GSK aims to positively impact the health of 2.5 billion people by the end of the decade, having reached an estimated 2 billion patients from 2021 to 2024[44] - The company emphasizes the importance of its purpose to get ahead of disease, aligning with changing population demographics and disease patterns[48] - GSK's commitment to responsible business practices is reflected in its leadership position in the Access to Medicine Index, maintaining a top ranking since 2008[83] Product Development and Approvals - Five new product approvals are expected in 2025, including treatments for multiple myeloma and severe asthma[75] - The company executed 12 acquisitions and discovery collaborations in 2024, including the acquisition of Elsie Biotechnologies to enhance its oligonucleotide pipeline[120] - Nucala (mepolizumab) is the only treatment in the US and Europe with indications in four IL5 mediated diseases, with new approvals in Japan and China for chronic rhinosinusitis with nasal polyps (CRSwNP) and severe asthma[143][144] - The FDA expanded approval for Jemperli to include all patients with primary advanced or recurrent endometrial cancer, covering approximately 75% of diagnosed patients[168] - A phase II study of dostarlimab in locally advanced dMMR rectal cancer showed all 42 patients had no evidence of disease after treatment[170] Market Trends and Industry Insights - The biopharma industry completed approximately 60 AI/ML focused deals in 2024, with a total deal value of £9.9 billion[95][96] - China's share of global biopharma companies increased to 16% in 2024, while the US holds the largest share at 39%[95] - GSK anticipates a series of major product launches from 2025 onwards, with peak year sales projected to exceed £2 billion[118]