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Annual Report 2019

This page provides a summary of the significant progress we have made in 2019 against our long-term priorities of Innovation, Performance and Trust, underpinned by a continuing shift in culture. The full Annual Report or individual sections can be downloaded below.

GSK at a glance

About us

We have three global businesses that discover, develop and manufacture innovative pharmaceutical medicines, vaccines and consumer healthcare products. Every day, we help improve the health of millions of people around the world.

Our operations span the value chain from identifying, researching, developing and testing ground-breaking discoveries, to regulatory approval, manufacturing and commercialisation.

We have over 99,000 employees across 95 countries with outstanding scientific and technical know-how and deep expertise in regulation, intellectual property and commercialisation. We also work with world-leading experts and form strategic partnerships to complement our existing capabilities.

Innovation is critical to how we improve health and create financial value. As a research-based healthcare company we rely on intellectual property protection to help ensure a reasonable return on our investments so we can continue to research and develop new and innovative medicines. In 2019 we invested £4.6 billion in R&D. In Pharmaceuticals and Vaccines we focus on science related to the immune system, human genetics and advanced technology. In Consumer Healthcare we leverage our scientific expertise and deep consumer insights to create healthcare products that meet consumer demands.

Our ability to launch new products successfully and grow sales from our existing portfolio is key to our commercial success. For patients and consumers we deliver transformational medicines, vaccines and consumer healthcare products. In 2019 that included 2.3 billion packs of medicines, 701 million vaccine doses and 4.2 billion consumer healthcare products.

As part of our capital allocation framework we invest in our three businesses and provide returns to shareholders in the form of dividends and share value growth. In 2019 we paid a dividend of 80p per share and delivered £5.1 billion of free cash flow.

We make a positive contribution to the communities in which we operate by creating employment, working with suppliers and paying tax. We offer a broad range of employee benefits, including preventative healthcare services, so that we are able to attract and retain the best people. By delivering on our purpose the greatest contribution we make is to improve the health of people around the world with our medicines, vaccines and consumer healthcare products.

Financial performance

2019 £m Growth £% Growth CER%
Turnover 33,754 10 8
Total operating profit 6,961 27 23
Adjusted operating profit 8,972 3 -
Total margin 20.60%    
Adjusted margin 26.60%    
Total earnings per share 93.9p 27 23
Adjusted earnings per share 123.9p 4 1
Free cash flow 5,073 (11)  

£% represents growth at actual exchange rates. CER% represents growth at constant exchange rates.


Our Pharmaceuticals business has a broad portfolio of innovative and established medicines in respiratory, HIV, immuno-inflammation and oncology. We are strengthening our R&D pipeline through a focus on immunology, human genetics and advanced technologies to help us identify transformational new medicines for patients.

2019 £m Growth £% Growth CER%
Respiratory 3,081 18  15
HIV 4,854 3 1
Immuno-inflammation 613 30 25
Oncology 230 - -
Established Pharmaceuticals 8,776 (7) (8)
Total 17,554 -

£% represents growth at actual exchange rates. CER% represents growth at constant exchange rates.


We are the world’s largest vaccines company by revenue, delivering vaccines that protect people at all stages of life. Our R&D focuses on developing vaccines against infectious diseases that combine high medical need and strong market potential.

2019 £m Growth £% Growth CER%
Meningitis 1,018 16 15
Shingles 1,810 >100 >100
Influenza 541 3 1
Established Vaccines 3,788 2 1
Total 7,157 21 19

£% represents growth at actual exchange rates. CER% represents growth at constant exchange rates.


Consumer Healthcare

Our world-leading Consumer Healthcare business combines science and consumer insights to create innovative everyday healthcare brands that consumers trust and experts recommend. In 2019, we finalised an agreement with Pfizer to combine our two consumer healthcare businesses.

2019 £m Growth £% Growth CER%
Wellness 4,526 15 14
Oral health 2,673 7 7
Nutrition 1,176 83 81
Skin health 620 7 7
Total 8,995 17 17

£% represents growth at actual exchange rates. CER% represents growth at constant exchange rates.

Our long-term priorities underpinned by our culture

Our long-term priorities are designed to create lasting value for patients, consumers and shareholders and are underpinned by our ambition to build a culture with a greater performance focus, aligned to our values and expectations. 2019 was an important year of execution and we made good progress in delivering on our objectives.


We invest in scientific and technical excellence to develop and launch a pipeline of new products that meet the needs of patients, payers and consumers.

2019 objectives

  • Deliver continued strong sales of Trelegy Ellipta, Nucala, HIV two-drug regimen and Shingrix

  • Continue to strengthen pipeline through execution of new R&D approach, accelerating priority assets and optimising recent strategic business development transactions

2019 progress

  • Delivered strong sales of all key launches, notably Shingrix with sales of £1.8 billion
  • Strengthened pipeline with eight filings, six positive pivotal trial results, and four priority assets accelerating to phase II/III
  • Accelerated oncology pipeline with regulatory submissions for Zejula in first-line ovarian cancer, belantamab mafodotin in relapsed/refractory multiple myeloma, and dostarlimab in endometrial cancer
  • Developed advanced technology capability with significant hires and partnerships with world-leading scientists


2020 priority objectives

  • Deliver Innovation sales with excellent commercial, R&D and supply chain execution
  • Further accelerate and strengthen pipeline with six potential approvals expected


We deliver growth by investing effectively in our business, developing our people and executing competitively.

2019 objectives

  • Continue to drive sales growth and operational performance
  • Successful integration of Tesaro
  • Deliver restructuring benefits
  • Develop plan for integration of Pfizer’s consumer healthcare business
  • Accelerate capability building in priority areas including digital, data and analytics

2019 progress

  • Group sales £33.8 billion, up 10% AER, 8% CER, proforma +4%
  • Free cash flow £5.1 billion
  • Total earnings per share 93.9p (up 27% AER, 23% CER), Adjusted earnings per share 123.9p (up 4% AER, 1% CER)
  • Successful integration of Tesaro and built capability in priority areas, notably specialty therapies, including oncology
  • Continued delivery on restructuring benefits to support investment in innovation and new launches
  • Completed Consumer Healthcare JV with Pfizer and on track to deliver synergies
  • Invested in new talent to build capability

2020 priority objectives

  • Prioritise spending to deliver growth and return on investment
  • Successful Consumer Healthcare JV integration, including driving growth and delivering synergies
  • Deliver further capability building in specialty Pharmaceuticals
  • Deliver two-year programme to prepare GSK for separation into two new companies


We are a responsible company and commit to use our science and technology to address health needs, make our products affordable and available and to be a modern employer.

2019 objectives

  • Focus on supply service levels, execute portfolio and network simplification
  • Deliver progress on Trust commitments
  • Progress global health research in TB and HIV
  • Deliver modern employer programmes to empower employees to be themselves, feel good and keep growing at GSK

2019 progress

  • Filed FDA and EU regulatory submissions for paediatric dolutegravir
  • Released positive final phase II results for our candidate TB vaccine and built a collaboration with the Bill & Melinda Gates Medical Research Institute for the continued development of the asset for developing countries which was finalised and announced in January 2020
  • Continued to embed modern employer programmes with progress in engagement, diversity and inclusion, employee health and wellbeing, and development
  • Ranked top in Dow Jones Sustainability Index for the pharmaceuticals industry

2020 priority objectives

  • Continue to deliver on-time in-full supply of our products
  • Build reputation with a focus on Innovation
  • Deliver progress on Trust commitments


Please read our cautionary statement regarding forward-looking statements in our 2019 Annual Report.

Non-IFRS measures 
We use a number of adjusted, non-IFRS, measures to report the performance of our business. Total reported results represent the Group's overall performance under IFRS. Adjusted results and other non-IFRS measures may be considered in addition to, but not as a substitute for or superior to, information presented in accordance with IFRS. Adjusted results and other non-IFRS measures are defined on pages 50 and 52 of the Annual Report and reconciliations to the nearest IFRS measures are on pages 62 and 65 of the Annual Report.

We believe that Adjusted results, when considered together with Total results, provide investors, analysts and other stakeholders with helpful complementary information to understand better the financial performance and position of the Group from period to period, and allow the Group's performance to be more easily compared against the majority of its peer companies. These measures are also used by management for planning and reporting purposes. They may not be directly comparable with similarly described measures used by other companies.

The information contained on this Annual Report 2019 summary page of is a summary of and contains extracts from the GSK Annual Report and Accounts 2019. The summary or extracts alone do not contain sufficient information to allow a full understanding of the results and state of affairs of GlaxoSmithKline PLC or the GSK Group. For further information the GSK Annual Report and Accounts 2019 should be consulted, including the cautionary statement on forward looking statements.

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