A British biopharmaceutical company that makes vaccines and medicines used around the world, including the shingles shot Shingrix and the RSV vaccine Arexvy. It was formed in 2000 when Glaxo Wellcome merged with SmithKline Beecham, two giants whose roots reach back to a London pharmacy opened in 1715. The name "Glaxo" comes from "lactose" — a New Zealand firm making dried milk for babies coined it for its fortified infant food.
20-F · Fiscal year ended Dec 31, 2022 · SEC filing ↗
GSK's 2022 net income more than doubled to $18.8B, driven by a Gilead patent settlement and Specialty Medicines growth.
GSK's pivot to a pure-play biopharma company delivered a year of sharp profit growth. rose 5.9% to $35.3B and more than tripled to $4.40, driven by a $922 million Gilead patent settlement and a 60% increase in Shingrix sales. The company enters 2023 without its Consumer Healthcare unit and expects a sharp drop in COVID-19 solution sales.
Key takeaways
rose 173.5% to $18.8B, primarily due to a $922 million upfront payment from a Gilead patent settlement and a gain on the separation of the Consumer Healthcare business into Haleon.
Total increased 5.9% to $35.3B, with Specialty Medicines growth driven by $2.3B in Xevudy (COVID-19 treatment) sales and double-digit increases in HIV, oncology, and immunology.
Shingrix sales rose 60% at constant exchange rates to £3.0B, fueled by a post-pandemic rebound and new market launches, pushing the Vaccines up 11%.
What to watch
2023 growth trajectory without Xevudy sales, which management expects to create a roughly 9% to turnover growth.
Shingrix sales momentum and its ability to sustain growth after a 60% post-pandemic rebound year.
Adjusted growth, projected to face a 6-7% reduction from the loss of COVID-19 solution sales.
Capital allocation strategy following the Haleon separation, including how the company deploys the proceeds and manages its reduced equity base.
Section summaries
Quantitative and Qualitative Disclosures About Market Risk
The information set forth under the heading “Treasury policies” in Item 5.A of this annual report on Form 20-F is incorporated herein by reference. The information set forth under the heading “Note 44 – Financial instruments and related disclosures” on pages 245 to 261 of the GS…
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The information set forth under the heading “Treasury policies” in Item 5.A of this annual report on Form 20-F is incorporated herein by reference.
The information set forth under the heading “Note 44 – Financial instruments and related disclosures” on pages 245 to 261 of the GSK Annual Report 2022 is incorporated herein by reference.
GSK faces risks from patient safety, product quality, compliance, supply continuity, and the separation of its Consumer Healthcare business.
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widened 4.6 percentage points to 19.2%, as and higher royalty income offset increased launch investments and supply chain costs.
fell 16.9% to $8.9B, as higher was offset by profit share payments on Xevudy and increased pension contributions.
Total assets contracted 32.2% to $72.3B and fell 57.8% to $12.1B, reflecting the demerger of the Consumer Healthcare business into Haleon.
Failure in or product quality could lead to patient harm, regulatory sanctions, and loss of product marketing authorization.
Non-compliance with financial controls, anti-bribery, or commercial practice laws may result in significant penalties, litigation, and reputational damage.
Sophisticated cyber threats and data privacy law violations risk business disruption, regulatory fines, and loss of stakeholder trust.
Supply continuity is threatened by external factors like geopolitical conflict, pandemic aftershocks, and industrial relations, potentially causing product shortages.
Climate-related regulations and physical risks, particularly for metered dose inhalers using high-GWP propellants, could increase costs and disrupt manufacturing.
The separation of the Consumer Healthcare business into Haleon concentrates GSK's exposure to pharma/vaccines markets and introduces uncertainty around realizing anticipated benefits.
GSK's 2022 turnover rose 13% CER to £29.3bn, driven by Specialty Medicines and Shingrix, with Adjusted operating profit up 14% CER.
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Total turnover grew 13% at CER to £29.3bn, with Specialty Medicines up 29% CER driven by £2.3bn in Xevudy sales and double-digit growth in HIV, oncology, and immunology.
Vaccines turnover increased 11% CER to £7.9bn, led by Shingrix sales surging 60% CER to £3.0bn due to post-pandemic rebound and new market launches.
rose 14% CER to £8.2bn, with margin up 0.3ppts CER, as and higher royalty income offset increased launch investments and supply chain costs.
Total included a £922m upfront payment from a Gilead patent settlement, partly offset by £1.7bn in charges for remeasurements.
was £3.3bn, broadly flat year-on-year, as higher was offset by profit share payments on Xevudy and increased pension contributions.
GSK expects no significant COVID-19 solution sales in 2023, projecting a roughly 9% to turnover growth and a 6-7% reduction in growth.