About us

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 businesses

Pharmaceuticals

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

Vaccines

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

Consumer Healthcare

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
  • Vaccines
  • Immuno-inflammation
  • Oncology
  • Rare diseases
Research & Development pipeline PDF 154Kb
20-30 assets with data expected by the end of 2018
14 Candidate vaccines in early, mid and late stage development against a range of diseases
1,500 Our range of partners includes academic institutions, biotechs, public-private partnerships and pharmaceutical companies

Chairman and CEO statements

Phillip Hampton Chairman
“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
Sir Andrew Witty Chief Executive Officer
“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

Performance summary

  • £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

Footnotes

  1. 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.
  2. 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)
  3. Primarily reflecting impact of £9.2 billion profit in 2015 from disposal of Oncology business.

Responsible 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.
  • mosquito 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.
Responsible Business Supplement PDF 3.6MB

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.

Demographic change
Changing political landscape
Increasing payer emphasis on cost, value and access
Increased expectations of business
Technological and scientific advances
150+

Number of markets

99,300

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.

R&D, Pharmaceuticals, Vaccines, Consumer Healthcare

A clear strategy for growth

Our strategic priorities provide a framework to create long-term value for shareholders and society.

Grow

Grow a balanced business and product portfolio, centred on our three global businesses.

Deliver

Deliver more products of value to offer improved treatment for patients, consumers and healthcare providers.

Simplify

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.

Responsible business

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.