GSK (GSK) BofA 2024 Global Healthcare Conference summary

Strategic transformation and focus areas

• Transitioned to a pure-play biopharma company post-demerger, focusing on medicines and vaccines.

• Four key priorities: execution, pipeline development, capital allocation, and investor engagement.

• Specialty care and vaccines are central to growth, with strong recent performance in specialty care.

• Margin improvement targeted at 500 basis points between 2021 and 2026.

• Investor engagement and data transparency have increased, supporting market confidence.

Financial guidance and performance

• Midterm guidance: >7% sales growth and >11% operating income growth (2021–2026), with consensus now higher.

• 2023 guidance upgraded twice, now at 7–9% top-line and 11–13% profit growth, despite loss of Gardasil royalties.

• Long-term revenue target of >£38 billion by 2031, with consensus moving closer but still below internal projections.

• Margin stability through dolutegravir patent expiry expected via pipeline-driven sales, not cost-cutting.

• Productivity gains in SG&A through generative AI and real-time marketing analytics.

Pipeline and product updates

• Pipeline strength lies in specialty care, especially oncology and respiratory immunology.

• Key assets: Blenrep (potential >£3 billion), Jemperli (expanding indications), Ojjaara (strong launch), and Nucala/depemokimab (recent readouts).

• HIV franchise shifting to long-acting therapies, with 40% of business expected in long-acting by 2028.

• Ongoing innovation in HIV with plans for four- and six-monthly dosing regimens.