Why invest in GSK?

Because we unite science, technology and talent to get ahead of disease together - prioritising Innovation, Performance and Trust to deliver strong and sustainable shareholder returns as a company where our people can thrive.

Image showing science and technology, our talent and environment

Our step-change in growth

  • Expected sales growth of more than 5%* and adjusted operating profit growth of more than 10%* on a compound basis 2021-26

  • R&D focused on the science of the immune system, human genetics and advanced technologies

  • Positively impacting the health of 2.5 billion people by the end of 2030

  • Leading ESG performance to be maintained

 

     *View our cautionary statement regarding forward-looking statements

 

ANNUAL REPORT 2022

2022 was a landmark year for GSK. Following the demerger of our consumer healthcare business to form Haleon in July, we are now a fully focused biopharma company.

Business model


We improve the health of hundreds of millions of people around the world by discovering, developing and manufacturing innovative vaccines, specialty and general medicines at scale.

We invest in outstanding people

Central to our success are our people. We also collaborate with world-leading experts and form strategic partnerships to complement our existing capabilities.

The value we create: now and in the future

  • The greatest contribution we make is to improve the health of people around the world. In 2022 that included delivering 2.3 billion packs of medicines and doses of vaccines.
  • Looking ahead, GSK has a clear ambition to positively impact the health of 2.5 billion people by the end of 2030.
  • We also create value for shareholders by investing in our business to provide shareholder returns, and in 2022 we paid a dividend of 61.25 pence per share.
  • We have made commitments to a step-change in growth and performance over the period to 2026.

In recent years, we have transformed GSK to improve performance, strengthen capabilities and prepare for a new future. We have done this by prioritising Innovation, Performance and Trust across the entire company – driving a multi-year programme to improve R&D productivity, commercial execution, group structure and capital allocation.

Innovation Performance Trust
Innovation is critical to how we improve health and create financial value. In 2022, our total R&D expenditure was £5.5 billion, up by 9% AER on 2021. We continue to believe the rapid convergence of science and technology in biopharmaceuticals provides significant opportunity, which is why our R&D will continue to focus on the science of the immune system, human genetics and use of advanced technologies. Performance is delivered by investing effectively in our business and our people and executing competitively. Over the next five years, with 2021 as a base year, we expect GSK to deliver highly attractive growth - with sales and adjusted operating profit of more than 5% and more than 10% respectively on a compound basis. Being a responsible business is an integral part of our strategy. We apply our strengths and take action in the areas that can most positively impact patients, society and our people over the long-term. This includes pricing and access, sustainability, global health and health security, diversity, equity and inclusion, product governance and operating standards.

 

 

Growth across business:

  • £29.3 billion Group turnover +19% AER, +13% CER
  • Specialty Medicines £11.3 billion +37% AER, +29% CER
  • Vaccines £7.9 billion +17% AER, +11% CER
  • General Medicines £10.1 billion +5% AER, +1% CER
  • COVID-19 solutions sales £2.3 billion

 

Cost discipline supports delivery of adjusted EPS growth:

  • Total EPS 110.8p +34% AER, +18% CER
  • Adjusted EPS 139.7p +27% AER, +15% CER
  • Total operating profit £6.4 billion +48% AER, +31% CER
  • Adjusted operating profit £8.2 billion +26% AER, +14% CER
  • Dividend of 61.25p

 

Continued momentum in R&D delivery and strengthening of pipeline:

  • More than 20 new approvals since 2017
  • Innovative pipeline of 69 vaccines and specialty medicines based on the science of the immune system; 18 in phase III/registration
  • Seven new collaborations and acquisitions including with Affinivax, Sierra Oncology and Spero Therapeutics

 

Leading ESG performance:

  • 1st in the Access to Medicine Index for the eighth consecutive time
  • 2nd in the pharmaceuticals industry for the S&P Global Corporate Sustainability Assessment, with a score of 86 (as at 17 February 2023)
  • 13% reduction in indirect scope 3 carbon emissions, based on latest available data for scope 3 emissions between 2020-2021

View our ESG ratings

Our long-term priorities

We prioritise Innovation, Performance and Trust to be ambitious for patients, shareholders and our people.

Innovation
Lady in the lab
  • New approvals since 2017

    >20
  • Vaccines and medicines in phase III/registration

    18
  • Vaccines and specialty medicines in our pipeline

    68
Performance
Scientist in Smart Lab
  • Packs of medicines and doses of vaccines delivered in 2022

    2.3bn
  • Dividend we paid per share in 2022

    61.25p
Trust
Lab worker smiling

3:35

New GSK

Our CEO Emma Walmsley discusses our strategy for New GSK

23 June 2021
0:44

New GSK

New GSK: A growth company

15 July 2021
17:31

New GSK

Sustainable growth, competitive returns

06 August 2021
3:30

Working together

Meet Mark and Giuseppe: working to reduce our carbon footprint

18 July 2022
3:30

Innovating Together

Meet Pal: combining the power of genetics and genomics

18 July 2022

Business sustainability

ESG performance

ESG is an integral part of our strategy and our investment case. It is a key driver in our goal to deliver health impact and shareholder returns as well as being core to the motivation of our people. We will pursue a focused approach to ESG, driven by our strengths, informing our strategy and addressing the key challenges of our industry over the long-term.

Child smiling

Access

Access

We are making our products affordable and available to more people around the world through responsible pricing, strategic access programmes and partnerships.

Find out more

Lab worker examining a blue vial

Global health and health security

Global health and health security

We are committed to using our science, our partnerships, and the knowledge we’ve gained from addressing the world’s biggest health challenges to improve health globally.

Find out more

Person smiling while entering their home

Environment

Environment

We are committed to work towards a net zero, nature positive, healthier planet, with ambitious goals set for 2030 and 2045.

Find out more

Lab worker smiling

Diversity, equity and inclusion

Diversity, equity and inclusion

Our work supports the health of all kinds of people. To meet our diverse patient’s needs better, we need diversity in our clinical trials and to support our own people to thrive as part of an inclusive team.

Find out more

Five lab workers carrying out tasks

Ethical standards

Ethical standards

Our culture guides our people to do the right thing and act on any concerns they have.

Find out more

Lab workers in a discussion

Product governance

Product governance

Ensuring the quality, safety and reliable supply of our products is critical to our purpose of uniting science, talent and technology to get ahead of disease together.

Find out more

  

ESG ratings performance 

We have maintained our acknowledged leadership in ESG, and this continues to be a key driver in our goal to deliver health impact and shareholder returns. Detailed below is how we perform in key ESG ratings that we are frequently asked about by investors.

External benchmarking Current rating
Previous rating
Comments
S&P Global's Corporate Sustainability Assessment  86  88 2nd in the pharmaceutical industry group; Assessment conducted annually, current score based on 2022 submission
Access to Medicines Index 4.06 4.23 Led the bi-annual index since its inception in 2008; Updated bi-annually, current results from Nov 2022
Antimicrobial Resistance Benchmark 84% 86% Led the bi-annual benchmark since its inception in 2018; Current ranking updated Nov 2021
CDP Climate change A- A- Updated annually, current score updated Dec 2022 
CDP Water security B B Updated annually, current score updated Dec 2022 
CDP Forests (palm oil) A- B Updated annually, current score updated Dec 2022 
CDP Forests (timber) B B Updated annually, current score updated Dec 2022 
CDP Supplier engagement rating Leader Leader Updated annually, current score updated Mar 2023
Sustainalytics 18.6 18.8 2nd percentile in pharma subindustry group; Lower score represents lower risk. Current ranking updated Apr 2022
MSCI AA AA Last rating action date: Nov 2022
Moody's ESG solutions 61 61 2nd in the pharmaceutical sector; Current score updated Sept 2021
ISS Corporate Rating B+ B+ Current score updated June 2023
FTSE4Good Member  Member  Member since 2004, latest review in June 2023
ShareAction’s Workforce Disclosure Initiative  77% 75% Current score updated Feb 2023

Scores as at July 2023

Sir Jonathan Symonds

Governance

We are committed to operating at the highest standards of corporate governance. We believe our governance structure underpins our ability to deliver the Group's strategy to create long-term value and benefit for our shareholders and stakeholders.

View information on how GSK is governed, including details on our Board Committees and Management Committees, global compliance and Policies, codes and standards on our Governance section.

Go to Governance

Risk management

Identifying, evaluating and managing risks
Our risk management and internal control framework is well embedded and provides the ability for the Board to evaluate and oversee how the company manages principal and emerging risks in line with our long-term objectives. We have a company-wide policy that sets out the requirements, roles and responsibilities for the management and governance of risks, controls and supporting guidance on the essential elements of our internal control framework. We routinely evaluate our framework for improvements.

Governance
The Board oversees our risk management system and establishes our risk appetite, supported by the Audit & Risk Committee (ARC). The Corporate Responsibility Committee (CRC) and Science Committee further assess the effectiveness of risk management strategies pertinent to their defined remits. Our Risk Oversight & Compliance Council (ROCC) helps the ARC and CRC to oversee the risks, and the strategies used to address them. Risk management and compliance boards across the Group promote the ‘tone from the top’. They also establish our risk culture and oversee the effectiveness of risk management activities, as well as communicating information about internal controls.

Our business is accountable for delivering on its objectives in line with its established risk appetite. An Enterprise Risk Owner is responsible for each principal risk, with oversight by a GLT member. Risk owners report risk and mitigation to ROCC, the GLT and the appropriate Board committee. Legal and Compliance support these efforts by advising on our business strategies, activities, risks and controls, and Audit & Assurance provides assessments of the adequacy and effectiveness of our framework.

Considering current and emerging risks.
We continuously evaluate our risks. Our risk assessment process considers the likelihood and impact of risks, and the timescale over which a risk could occur. We consider both current and emerging risks that could affect our ability to achieve our long-term objectives. Emerging risks are those on the three-year horizon, in line with our viability statement. We also define risks in this way if we need to know more about how likely they are to materialise, or what impact they’d have if they did. We will evaluate if additional investigation is required before classifying them as principal risks.

Risk management and compliance boards at all levels of the organisation identify emerging risks on an ongoing basis, and ROCC discusses emerging risks at each meeting. We also scan the risk horizon throughout the year to identify external trends that may be opportunities and/or emerging risks and monitor our business activities and internal environment for new, emerging and changing risks.

ROCC conducts an annual risk review to assess principal and emerging risks for the company. This review is supported by extensive analysis of external trends and insights, senior level interviews and recommendations from risk management and compliance boards and risk owners. ROCC shares this annual review with the ARC and Board for assessment and this forms the basis for the following year’s risk management focus.

2023 principal risks summary
We outline below the principal risks and uncertainties relevant to GSK’s business, financial condition and operations that may affect our performance and ability to achieve our objectives. These are the risks that we believe could cause our actual results to differ materially from expected and historical results. Operating in the pharmaceutical sector carries various inherent risks and uncertainties that may affect our business.

Patient safety

The risk that GSK, including our third parties, fails to appropriately collect, assess, follow up, or report human safety information, including adverse events, from all potential sources or that GSK potentially fails to appropriately act on any relevant findings that may affect the benefit-risk profile of a medicine or vaccine in a timely manner.

Product quality

The risk that GSK or our third parties potentially fail to ensure appropriate controls and governance of quality for development and commercial products are in place; compliance with industry practices and regulations in manufacturing and distribution activities; and terms of GSK product licenses and supporting regulatory activities are met.

Financial controls and reporting

The risk that GSK fails to comply with current tax laws; fails to report accurate financial information in compliance with accounting standards and applicable legislation; or incurs significant losses due to treasury activities.

Legal matters

The risk that GSK or our third parties potentially fail to comply with certain legal requirements for the development, supply and commercialisation of our products and operation of business, and specifically in relation to requirements for competition law, anti-bribery and corruption, and sanctions. Any failure to meet compliance and legal standards for these particular areas could lead to increasing scrutiny and enforcement from government agencies.

Commercial practices

Scientific and patient engagement

The risk that GSK or our third parties potentially fail to engage externally to gain insights, educate and communicate on the science of our medicines and associated disease areas, and provide grants and donations in a legitimate and transparent manner compliant with laws, regulations, industry codes and internal controls and requirements.

Data ethics and privacy

The risk that GSK or our third parties potentially fail to ethically collect; use; re-use through artificial intelligence, data analytics or automation; secure; share and destroy personal information in accordance with laws, regulations, and internal controls and requirements.

Research practices

Environment, health and safety (EHS)

The risk that GSK or our third parties potentially fail to ensure appropriate controls and governance of the organization's assets, facilities, infrastructure, and business activities, including execution of hazardous activities, handling of hazardous materials, or release of substances harmful to the environment that disrupts supply or harms employees, third parties or the environment.

 

Information and cyber security

The risk that GSK or our third parties potentially fail to ensure appropriate controls and governance to identify, protect, detect, respond, and recover from cyber incidents through unauthorised access, disclosure, theft, unavailability or corruption of GSK's information, key systems, or technology infrastructure in accordance with applicable laws, regulations, industry standards, internal controls and requirements.

Supply continuity

The risk that GSK or our third parties potentially fail to deliver a continuous supply of compliant finished product or respond effectively to a crisis incident in a timely manner to recover and sustain critical supply operations.

 

Risks

Find more information in our annual report in the sections on Risk management (page 51) and Principal risks and uncertainties (page 285). You can also explore our Code and all our policies:

Financial highlights 2022

Turnover
£29.3bn
Adjusted operating profit
£8.2bn
Vaccines*
£7.9bn
Specialty Medicines
£11.3bn
General medicines
£10.1bn
Adjusted EPS
139.7p

*Numbers might not add-up due to rounding. Please read the cautionary statement regarding forward-looking statements and the definitions and reconciliations for non-IFRS measures on pages 67 to 69 of the full year results.