We are a global science-led healthcare company. Our three world-leading businesses research and deliver innovative medicines, vaccines and consumer healthcare products.
- £27.9bn Group turnover (up 17% AER, 6% CER; 5% pro‑forma CER)a
- £4.5bn New Pharmaceutical and Vaccines salesb(up >100% AER; >100% CER)a
- 4 filings Filings with regulators, including Shingrix candidate vaccine and Closed Triple
1st In the Access to Medicine Index since launch in 2008
Our Pharmaceuticals business discovers, develops and commercialises medicines to treat a range of acute and chronic diseases. We have a broad portfolio of innovative and established medicines in respiratory and HIV, in which we are global leaders. We focus our research across respiratory, HIV and infectious diseases, immuno-inflammation, oncology and rare diseases.Pharmaceuticals section PDF 430Kb
- £16.1bn Turnover Sales up 14% AER, 3% CER, 4% pro‑forma CER.a
- 58% of Group turnover
Our Vaccines business has the broadest portfolio of any company, with vaccines for people of all ages – from babies and adolescents to adults and older people. We deliver over two million vaccine doses per day to people living in over 160 countries.Vaccines section PDF 437Kb
- £4.6bn Turnover Sales up 26% AER, 14% CER, 12% pro‑forma CER.a
- 16% of Group turnover
Our Consumer Healthcare business develops and markets products in Wellness, Oral health, Nutrition and Skin health categories. Our seven global power brands – Otrivin, Panadol, parodontax, Poligrip, Sensodyne, Theraflu and Voltaren, include some of the most trusted and best-selling brands in the world.Consumer Healthcare section PDF 383Kb
- £7.2bn Turnover Sales up 19% AER, 9% CER, 5% pro‑forma CER.a
- 26% of Group turnover
Research & Development
In 2016, we invested £3.6 billion in R&D expenditure across our three businesses. External partnerships and collaborations enable us to develop and access knowledge, and increase our understanding in new areas of science.
We focus our research across six core areas and are using next generation technology to develop new approaches to disease management and control.
- Respiratory diseases
- HIV and infectious diseases
- Rare diseases
Chairman and CEO statements
“GSK made further good progress during 2016. Operating performance significantly improved in our three businesses and there was continued progress in the late and early stage R&D pipeline.”Chairman’s statement PDF 60Kb
“GSK performed strongly in 2016, with good sales growth across all three businesses, excellent new product momentum and further pipeline progress.”CEO’s statement PDF 60Kb
- £27.9bn Group turnover(up 17% AER; 6% CER; 5% pro-forma CER) a
- £4.5bn New Pharmaceutical and Vaccines salesb(up >100% AER; >100% CER) a
- £2.6bn Total operating profit(down 75% AER; 86% CER) a,c
- £7.8bn Core operating profit(up 36% AER; 14% CER; 17% pro-forma CER) a
- 18.8p Total earnings per share (down 89% AER; 99% CER) a,c
- 102.4p Core earnings per share(up 35% AER; 12% CER) a
- £6.5bn Net cash inflow from operating activities
- £3.1bn Free cash flowa
- £3.9bn Dividends declared for 2016
- 20-30 Assets with data expected by end of 2018
1st In the Access to Medicine Index since launch in 2008
3rd In the pharmaceutical sector for Dow Jones Sustainability Index
- AER growth rates represent growth at actual exchange rates. We use a number of adjusted, non-IFRS, measures to report the performance of our business, as described on page 57 of the Annual Report, including core results, free cash flow and CER and pro-forma growth rates. These measures are used by management for planning and reporting purposes and may not be directly comparable with similarly described measures used by other companies. Core results exclude a number of items and are presented as management believes that core results allow the key trends and factors driving that performance to be more easily and clearly identified by shareholders. Non-IFRS measures may be considered in addition to, but not as a substitute for or superior to, information presented in accordance with IFRS. A reconciliation of total results to core results is set out on page 66 of the Annual Report.
- New products defined as: Pharmaceuticals: Relvar/Breo Ellipta, Incruse Ellipta, Anoro Ellipta, Arnuity Ellipta, Eperzan/Tanzeum, Nucala, Tivicay, Triumeq. Vaccines: Menveo, Bexsero, Shringrix (not yet approved)
- Primarily reflecting impact of £9.2 billion profit in 2015 from disposal of Oncology business.
Being a responsible business, as how we deliver success is as important as the results we achieve. We detail progress against our commitments in Health for all, Our behaviour, Our people and Our planet in the Responsible Business Supplement, which can be downloaded below.
- We pledged to offer essential vaccines at our lowest price for organisations supporting refugees where governments are unable to assist.
- The WHO confirmed that funding has been committed to enable pilot implementation of our RTS,S malaria vaccine in three settings in sub-Saharan Africa.
- 75 countries Our Partnership for Prevention programme offers access to preventive healthcare for almost 100,000 employees and their family members in 75 countries.
- The European Medicines Agency endorsed chlorhexidine, our antiseptic gel for newborn umbilical cord infections in developing countries.
- We demonstrated our continuing commitment to tackling antimicrobial resistance by signing up to a landmark industry roadmap.
- 18% We have cut our operational carbon emissions (Scope 1 and 2) by 18% since our 2010 baseline.
We expanded our existing approach to filing and enforcing patents to ensure we balance the need to protect our intellectual property with a country’s economic maturity. We will no longer file patents for medicines in least-developed countries (LDCs) and low-income countries. In lower middle income countries (LMICs), we will apply for patents when we believe it is appropriate, but we will also offer licences that allow supplies of generic versions of medicines to these countries (other than G20 countries) for 10 years.
Our integrated approach
By understanding our operating environment and having a clear strategy, against which we measure performance and manage risks, we deliver long-term value for shareholders and society.
The market in which we operate
We operate in a growing marketplace and our strategy is designed to respond to the challenges and opportunities in our sector.
Number of markets
Number of employees
Our business model
R&D underpins our three businesses and we prioritise our investments to where we see the most potential to develop innovative products for unmet medical needs.
A clear strategy for growth
Our strategic priorities provide a framework to create long-term value for shareholders and society.
Grow a balanced business and product portfolio, centred on our three global businesses.
Deliver more products of value to offer improved treatment for patients, consumers and healthcare providers.
Simplify the way we operate to reduce complexity, increase efficiency and free up resources to reinvest in the business or return to shareholders, wherever we see the most attractive returns.
Being a responsible business, as how we deliver success is as important as the results we achieve.
We measure success
We assess our performance against both financial and non-financial metrics, some of which form the basis of our executive remuneration.
We manage risks
We manage current and emerging risks that may impact our strategic priorities through rigorous and consistent risk management processes.
The information contained on this microsite is a summary of the GSK Annual Report and Accounts 2016. It does 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 2016 should be consulted.
Cautionary statement regarding forward-looking statements
The Group’s reports filed with or furnished to the US Securities and Exchange Commission (SEC), including the 2016 Annual Report and written information released, or oral statements made, to the public in the future by or on behalf of the Group, may contain forward-looking statements. Forward-looking statements give the Group’s current expectations or forecasts of future events. An investor can identify these statements by the fact that they do not relate strictly to historical or current facts. They use words such as ‘anticipate’, ‘estimate’, ‘expect’, ‘intend’, ‘will’, ‘project’, ‘plan’, ‘believe’ and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. In particular, these include statements relating to future actions, prospective products or product approvals, future performance or results of current and anticipated products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, and financial results. Other than in accordance with its legal or regulatory obligations (including under the UK Listing Rules and the Disclosure and Transparency Rules of the Financial Conduct Authority), the Group undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
The reader should, however, consult any additional disclosures that the Group may make in any documents which it publishes and/or files with the SEC. All readers, wherever located, should take note of these disclosures. Accordingly, no assurance can be given that any particular expectation will be met and shareholders and investors are cautioned not to place undue reliance on the forward-looking statements.
Forward-looking statements are subject to assumptions, inherent risks and uncertainties, many of which relate to factors that are beyond the Group’s control or precise estimate. The Group cautions investors that a number of important factors, including those in this microsite, could cause actual results to differ materially from those expressed or implied in any forward-looking statement. Such factors include, but are not limited to, those discussed under ‘Risk factors’ on pages 253-262 of the 2016 Annual Report. Any forward-looking statements made by or on behalf of the Group speak only as of the date they are made and are based upon the knowledge of and information available to the Directors on the date of the 2016 Annual Report.
The information in this microsite does not constitute an off to sell or an invitation to buy shares in GlaxoSmithKline plc or an invitation or inducement to engage in any other investment activities. Past performance cannot be relied upon as a guide to future performance.
Nothing in the 2016 Annual Report should be constructed as a profit forecast. All expectations and targets regarding future performance should also be read together with ‘Assumptions related to 2016-2020 outlook’ which can be found on the final page of the 2016 Annual Report.
A number of adjusted measures are used to report the performance of our business. These measures are defined on page 57 of the 2016 Annual Report and a reconciliation of core results to total results is set out on page 66 of the 2016 Annual Report.