1
Inside this report
Strategic report
1
Ahead Together
2
Business model
4
2024 performance and
key performance indicators
6
Chair’s statement
8
CEO’s statement
10
Our external environment
12
Research and development
32
Commercial operations
46
Responsible business
58
Our culture and people
62
Risk management and
disclosure statements
82
Group financial review
Corporate governance
113
The Board and
GSK Leadership Team
119
Chair’s governance statement
122
Corporate governance architecture
125
Board activities
134
Board committee reports
146
Remuneration report
176
Remuneration policy
185
Directors’ report
Financial statements
188
Directors’ statement of responsibilities
190
Independent auditor’s report
204 Financial statements
208 Notes to the financial statements
291
Financial statements of GSK plc
prepared under UK GAAP
Investor information
297
Financial record
301
Product development pipeline
307
Principal risks and uncertainties
319
Share capital and control
321
Dividends
322
Financial calendar 2025
322
Annual General Meeting 2025
323
Tax information for shareholders
325
Shareholder services and contacts
US law and regulation
330
Group companies
339
Glossary of terms
How to navigate this report
Page reference for more
information within this
Annual Report
Visit gsk.com for more
information
Our supplements
Our Responsible Business
Performance Report is
available on gsk.com
Front cover image: Lungs
As well as supplying vaccines to
help protect people from respiratory
infections, we are developing
treatments that could transform the
standard of care for people affected
by conditions including asthma and
chronic obstructive pulmonary
disease (COPD). Our pipeline also
includes potential new approaches
for unmet lung cancer needs.
Cautionary statement
See the inside back cover of this document for the cautionary statement
regarding forward-looking statements.
Non-IFRS measures
We use a number of adjusted, non-International Financial Reporting Standards
(IFRS) measures to report the performance of our business. Total reported results
represent the Group’s overall performance under IFRS. Core results and other non-
IFRS measures may be considered in addition to, but not as a substitute for
or superior to, information presented in accordance with IFRS. Core results and other
non-IFRS measures are defined on pages 87 and 88 and reconciliations to the nearest
IFRS measures are on pages 98 to 100.
for health impact
+ shareholder returns
+ thriving people
Our strategy
We prevent and treat disease with
specialty medicines, vaccines and general medicines.
We focus on the science of the immune
system and advanced technologies, investing
in four core therapeutic areas – respiratory,
immunology and inflammation; oncology; HIV;
and infectious diseases – to impact health at scale.
We operate responsibly for all our stakeholders
by prioritising Innovation, Performance and Trust.
Read about how our business model delivers our strategy on page 2
Our culture
We are ambitious for patients, accountable
for impact and we do the right thing.
Read about our culture and people on page 58
GSK Annual Report 2024
1
Our purpose
We unite science,
technology and
talent to get ahead
of disease together
As a focused biopharma company, we discover, develop and deliver medicines
and vaccines. We aim to positively impact the health of 2.5 billion people by the
end of the decade.
Central to our success
are our people: experts
in science, technology,
manufacturing and
commercialisation...
68,600
GSK people across
75 countries worldwide
37
manufacturing sites
£6.4bn
R&D investment in 2024
18,000
suppliers working directly
with GSK
...who are identifying,
researching, developing
and delivering...
Specialty Medicines
Our specialty medicines prevent
and treat diseases, from HIV, cancer
and asthma to immune-inflammation
diseases like lupus. Many are first or
best-in-class.
Read more on page 34
General Medicines
Our broad portfolio of general
medicines, from inhalers for asthma
and COPD to antibiotics, improve life
for millions of people around the world.
Many are market leaders.
Read more on page 40
Vaccines
We have one of the broadest
portfolios of vaccines in the industry,
targeting infectious diseases at every
stage of life, helping to protect people
from RSV, meningitis, shingles,
hepatitis and many more.
Read more on page 37
...products that prevent
and change the course
of disease in our four core
therapeutic areas...
Respiratory, immunology
and inflammation
We’re harnessing our deep knowledge
of inflammatory mechanisms and the
science of the immune system to
redefine the future of respiratory
medicine and target lung, liver and
kidney disease.
Read more on page 15
HIV
We’re leaders in HIV, focused
on ending the global epidemic.
We have an industry-leading
pipeline, driven by patient insights.
Read more on page 22
Oncology
Our ambition is to help increase
overall quality of life, maximise survival
and change the course of disease,
expanding from our current focus on
blood and women’s cancers into lung
and gastrointestinal cancers, as well
as other solid tumours.
Read more on page 18
Infectious diseases
Our infectious diseases pipeline and
portfolio, including HIV, is the broadest
in the industry.
Read more on page 24
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Business model
2
…using advanced
technologies…
Pipeline
At every step of the R&D
process, we are using data
tech, including AI, and
platform technologies to
be faster, more effective
and more predictive in
discovering and developing
innovative medicines and
vaccines.
Read how technology
enables our R&D on page 28
Performance
We use technology to
reach people and patients
better and faster through
smart manufacturing;
helping patients and their
carers to manage their
conditions; and
empowering our people to
do their best work.
Partnership
We collaborate in new ways
across the technology and
biotech industries and
academia, so that we
can work with the latest
advances in expertise and
technology to get ahead
of disease together.
...steered by our
long-term priorities...
Innovation
We develop and launch
new medicines and
vaccines where they
are needed, with better,
faster and smarter R&D.
Read more about our
R&D on page 12
Performance
Driven by our innovation,
we have delivered
consistent sales and profit
growth and improved our
long-term outlooks.
Read about our commercial
operations on page 32
Trust
We focus on issues that
matter most to our business,
our stakeholders, and
society, and where we can
have the greatest impact.
Read more in Responsible
Business on page 46
…creating
value for...
Patients
>2bn
estimated patients reached
between 2021 and 20241
Shareholders
61p
per share dividend
Society and the economy
£1.3bn
corporate income tax paid; in addition
we pay duties, levies, transactional and
employment taxes
People
85%
of GSK people surveyed agree that their
job gives them the opportunity to do
challenging and interesting work
...and enabling
reinvestment to
get ahead of disease
The returns we make set us up to reinvest in discovering and
developing new medicines and vaccines to prevent and change
the course of disease. Helping people to live healthier lives eases
pressure on health systems and supports economic prosperity.
Being a responsible business is an integral part of
our strategy and culture. Read more on page 46
Our strategy is supported by a robust
framework for monitoring and managing risk,
described on pages 62
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Business model continued
3
(1) We believe that we are on track to achieve our ambition of reaching 2.5 billion people by the end of the decade. Our estimated patient reach figure from
2021 to the end of 2024 is at least 2 billion people, excluding patient reach for albendazole donations in 2024 as this data is not yet available. For more
detail see Access on page 48 and for more detail on our methodology see our Responsible Business Performance Report.
Financial
We delivered another year of excellent performance in 2024, with strong sales and core operating
profit growth driven by accelerating momentum of our specialty medicines portfolio.
Group turnover (£bn)
Turnover by product groups (£bn)
£31.4bn
AER 3% CER 7%
Total operating profit (£bn)
Core operating profit (£bn)
£4.0bn
AER -40% CER -33%
£9.1bn
AER 4% CER 11%1
2024: Total operating profit was lower primarily due to a charge
of £1.8 billion for the Zantac settlement.
2024 growth excluding COVID-19 solutions 6% AER 13% CER
Total earnings per share (p)
Core earnings per share (p)
63.2p
AER -48% CER -40%
159.3p
AER 3% CER 10%2
2024: Total EPS was lower primarily due to a charge of £1.8 billion
for the Zantac settlement.
2024 growth excluding COVID-19 solutions 5% AER 12% CER
Cash generated from operations (£bn)
Free cash flow (£bn)
£7.9bn
£2.9bn
We use a number of adjusted, non-IFRS, measures to report the performance of our business. Core results and other non-IFRS measures may be considered in
addition to, but not as a substitute for or superior to, information presented in accordance with IFRS. Core results and other non-IFRS measures are defined on
pages 87 and 88. AER – actual exchange rate; CER – constant exchange rate. Excluding COVID-19 solutions as defined on page 90.
(1) Core operating profit +11% (with further positive impact of +2% excluding COVID-19 solutions) at CER.
(2) Core EPS +10% (with further positive impact of +2% excluding COVID-19 solutions) at CER.
Key performance indicator
Linked to executive remuneration. See pages 156 to 165 for more details
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
2024 performance and KPIs
4
29.3
30.3
31.4
2022
2023
2024
l Specialty Medicines
£11.8bn AER 15% CER 19%
l Vaccines
£9.1bn AER -7% CER -4%
l General Medicines
£10.4bn AER 2% CER 6%
6.4
6.7
4.0
2022
2023
2024
8.2
8.8
9.1
2022
2023
2024
110.8p
121.6p
63.2p
2022
2023
2024
139.7p
155.1p
159.3p
2022
2023
2024
7.9
8.1
7.9
2022
2023
2024
3.3
3.4
2.9
2022
2023
2024
Research and development
We continued to strengthen our late-stage pipeline with organic R&D delivery and targeted business
development, supporting future growth.
£12bn
71
19
innovation sales of products
launched, or with major lifecycle
innovation expansion, in the last
five years
assets in the pipeline
assets in phase III/registration
13
5
12
positive phase III readouts
major product approvals
expected in 20251
new collaborations and acquisitions,
including with Elsie Technologies and
Flagship Pioneering
The pipeline value and progress are not reported externally because of their commercial sensitivity.
Read more about our R&D on pages 12 to 31
Responsible business
We are committed to getting ahead of issues that matter for society and for the long-term
performance of our company. Our Responsible Business Performance Rating tracks progress
across our six focus areas: access; global health and health security; environment ; inclusion
and diversity ; ethical standards; and product governance.
91%
2nd
12%
of our Responsible Business
Performance Rating metrics ‘met’ or
‘exceeded’ in 2024
in the Access to Medicine Index
(ATMI) among 20 of the world’s
largest pharmaceutical companies
reduction in operational
carbon emissions since 2023
(Scope 1 & 2)
Read more about our performance across our six
focus areas on pages 46 to 56
Culture
We measure progress on embedding our culture through our employee surveys.
Our employee engagement score remained high at 81% in 2024.
Read more about our culture and people on page 58
(1) Penmenvy, our 5-in-1 meningococcal vaccine, was approved in the US in February 2025
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
2024 performance continued
5
Another year of strong performance
and meaningful R&D progress
2024 provided further evidence that
Emma and her executive team have
seized the opportunity of the demerger
to make fundamental improvements to
GSK’s operational performance,
competitiveness and pipeline.
Our long-term conviction remains that
changing population demographics
and disease patterns mean that GSK’s
purpose to get ahead of disease
matters more than ever. By delivering
innovative new medicines and
vaccines to prevent and change the
course of disease, GSK is creating
sustained value for patients,
healthcare systems and society at
large. Over time, we are determined
that this will also translate into
sustained increased value for
shareholders.
Strategic progress
GSK continues to perform to a new
standard. 2024 marked the third
consecutive year of strong sales and
core operating profit and earnings per
share growth.
We have built a much stronger
platform for GSK to deliver consistent
and dependable performance,
underpinned by a new resilience and
sales mix across the portfolio.
This was demonstrated in 2024, with
strong performance delivered despite
some challenges in Vaccines.
These were outweighed by strong
growth across our Specialty Medicines
business, with our Respiratory/
Immunology, Oncology and HIV
franchises all registering double-digit
sales growth.
The first phase of GSK’s
transformation, since the demerger,
has built a foundation of consistent
execution and delivery. Our medium-
and longer-term outlooks also
continue to strengthen, with total sales
in 2031 on a risk adjusted basis now
expected to be more than £40 billion.1
The priority now is to build on this
foundation as GSK moves into the
second phase of its transformation,
focused on executing pipeline delivery,
realising our ambitious 2031 revenue
targets and preparing for the next
wave of innovation.
Shareholder returns
Equally, the Board recognises that the
value of GSK shares does not currently
reflect our confidence in these outlooks.
The Board is extremely mindful of this
and the need to deliver better
shareholder value over the short-,
medium- and long-term timeframes.
The Board has thought deeply about
this gap between the market’s view of
valuation and our own. While investing
in the business will always be the first
priority for use of capital, the Board
believes that the balance sheet is
now strong enough to support a
share buyback.
This should be seen as a clear
demonstration in the Board’s belief in
the medium- and long-term growth
prospects for GSK.
R&D progress
The company’s core focus remains
progressing and strengthening the
pipeline and R&D performance. This is
the number one priority for the Board
as a whole and the Science
Committee specifically. We continue to
constructively challenge the executive
team on their scientific and
commercial assumptions and the
financial returns expected from
proposed R&D investments.
The Board was encouraged to see
good progress made during the year,
both organically and through business
development, with 13 positive phase III
readouts. This pipeline progress
supports the Board’s confidence in the
delivery of the increased outlook to
2031. As a result, the Board is
increasingly turning its attention to
pipeline opportunities beyond 2031
based on the company’s deep
understanding of the immune system
and leading capabilities in platform
and data technologies.
Disciplined deployment of capital
towards R&D remains central to this.
We have chosen to both progress and
decline business development
opportunities over the course of this
year, not least as we now see
opportunities to accelerate certain
assets in Respiratory, Immunology &
Inflammation and Oncology.
Remuneration
We continue to evolve our
Remuneration Policy to support
delivery against the company’s goals
and seek to further increase alignment
of shareholder and management
experiences.
In the Remuneration Report we set out
proposed changes which seek to both
anchor our remuneration against the
peer group we compete with and to
ensure we are even more focused on
incentivising financial over-
performance and pipeline over-
delivery in the near, mid and long term.
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Chair’s statement
6
(1) See assumptions and basis of preparation
related to 2025 Guidance, 2021-26 and 2031
Outlooks on the inside back cover
We have consulted extensively with
shareholders in developing the new
proposals, which will be voted on in the
usual way at our 2025 AGM.
Resolving Zantac litigation
Beyond the company’s strategic and
R&D priorities, the Board has focused
on reducing unnecessary exposures for
the company and shareholders. The
retirement of the Zantac risk, through
the settling of the vast majority of
cases in the US, was clear
demonstration of this.
We strongly believe this action is in the
best long-term interests of
shareholders, helping draw a line
under the litigation and providing
closure without any admission of
liability.
This was a good example of the Board
and leadership team working closely
together, along with independent
experts, to act in shareholder interests.
Culture and responsibility
As I have said before, I believe that
one of the strongest drivers of GSK’s
long-term performance is the culture
shift which Emma and her team are
driving. This is seen in a focus on
behaviours such as accountability and
smart decision-making; and continued
very high engagement scores among
GSK people.
The Board continues to support the
long-standing proactive approach
taken by the company to build trust
and operate responsibility. Through
the relevant Board committees, we
examined progress in priority areas
such as access to medicines, where
the company again ranked strongly in
external benchmarks in 2024,
antimicrobial resistance (AMR), and
our climate and nature sustainability
commitments.
Board evolution
As I’ve noted previously, we continue to
evolve the Board to ensure we provide
robust oversight and scrutiny of
management. We have now built deep
industry skills and experience across all
parts of the biopharma value chain,
including strategically important areas
to GSK such as genetics, immunology
and AI.
In 2024, we were delighted to welcome
Dr Jeannie Lee to the Board. Jeannie is
Vice Chair of the Department of
Genetics at Harvard Medical School.
Her deep expertise in scientific and
medical innovation, including in the field
of RNA biology and epigenetics, which
are key parts of GSK’s R&D approach,
together with her experience in public
health, bring a strong additional
perspective to Board discussions.
We will also bid farewell to Dr Jesse
Goodman, who will step down from
the Board at the 2025 AGM having
served nine years as a Non-Executive
Director. The Board as a whole, and
the Science Committee in particular,
have benefitted hugely from Jesse’s
wealth of expertise in infectious
diseases, regulation and public health.
He has made a fantastic contribution
to GSK and we wish him all the very
best for the future. As Jesse steps
down, we are delighted that Dr Gavin
Screaton will join the Board as a Non-
Executive Director from 1 May 2025.
His deep expertise in immunology and
infectious diseases, together with his
considerable experience in public
health, will help to replace Jesse’s
skillset and experience; and bring a
valuable perspective to the Board.
Conclusion
We believe the company continues to
strengthen across all parts of the
business. That we have not
demonstrated this more in shareholder
value is a source of determination to
do so. The Board is strongly focused
on this and helping the executive
achieve the outlooks set, which will
ultimately drive investor confidence
and in parallel, shareholder value.
There are many things that are
precious about GSK but one that sits
above all is our people – and the
purpose that drives them to improve
health and the lives of patients
worldwide. I would like to thank all our
people, as well as our partners,
customers and shareholders, for their
continued commitment through the
past year. Together, we look forward
to another year of success in 2025.
Sir Jonathan Symonds
Chair
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Chair’s statement continued
7
2025 will mark three years since the
demerger and the creation of GSK as
a new dedicated biopharma
company, for patients and for
shareholders.
The demerger enabled a fundamental
restructure of GSK and its balance
sheet, bringing new capacity to invest
in growth and to deliver returns to
shareholders.
Three years on, we have established a
strong track record of performance
delivery.
We have developed an attractive,
reshaped portfolio and pipeline of
Specialty Medicines and Vaccines,
with Specialty now representing close
to 40% of GSK’s sales and expected to
be well over 50% by 2031.
We have delivered sustained year-on-
year sharper operational performance,
profitability and cash improvements.
And our long-term outlooks have
consistently improved, alongside the
quality of our R&D innovation.
Significantly, we now expect sales on a
risk adjusted basis to be more than
£40 billion1 by 2031. This is £7 billion
ahead of the target we set only four
years ago and would represent an
increase of £17 billion to GSK’s sales
since the start of the decade, positively
impacting the health of billions
worldwide.
Strong 2024 performance
GSK’s excellent performance in 2024
demonstrates the transformation of
the business.
Group sales were £31.4 billion, up 8%,2
core operating profit grew 13%3, core
EPS by 12%4 and free cash flow was
just over £2.9 billion.
This was driven by strong growth and
increasing contribution from Specialty
Medicines, with double-digit growth in
all areas, more than offsetting
headwinds in Vaccines.
In Respiratory/Immunology, sales were
up 13%, driven by Nucala, our anti-IL5
biologic medicine and Benlysta, our
treatment for auto-immune disease
lupus.
Oncology sales almost doubled to
more than £1.4 billion. Specialty
medicines for ovarian and endometrial
cancers, together with Ojjaara, our
new treatment for myelofibrosis
patients with anaemia, all grew
rapidly, driven by increased uptake
and recognition of their benefit by
oncologists.
HIV sales grew 13%, with 20% of total
HIV sales now coming from new long-
acting injectables for treatment and
prevention (PrEP).
Vaccine sales were down 3%,
reflecting challenges we have seen
from external pressures, in the US and
China, for Arexvy and Shingrix. While
we expect these to continue in 2025,
we are confident that these vaccines,
together with the pipeline opportunities
we have in this part of our portfolio, will
deliver meaningful contributions to
medium- and long-term growth.
General Medicines also delivered
another strong year of performance,
with sales up 6% and Trelegy
strengthening its position even further
as the top-selling medicine worldwide
for COPD and asthma.
Pipeline momentum
In R&D, execution in the late-stage
pipeline was exceptional, with 13
positive phase III clinical trial readouts
in 2024 across Respiratory,
Immunology & Inflammation (RI&I),
Oncology, HIV and Infectious Diseases
– a record for the company.
We are now focused on the clinical
development of 14 scale innovation
opportunities – the majority in Specialty
medicines – each with peak year sales
potential of more than £2 billion and
expected to launch before 2031.
These include five new product
approvals expected in 20255, at the
forefront of which are potential step-
changes in treatment for multiple
myeloma, with Blenrep our novel ADC
treatment; and depemokimab – our
new ultra-long-acting medicine for the
treatment of severe asthma.
I was also pleased to see further
strengthening of our mid- and early-
stage pipeline, with progress and
addition of several new assets
including two high-potential oncology
medicines – targeting B7-H3 and B7-
H4 antigens; novel IL33 and TSLIP
respiratory treatments; and successful
steps forward in our development
programmes for ultra-long-acting HIV
medicines.
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
CEO’s statement
8
(1) See assumptions and basis of preparation related
to 2025 Guidance, 2021-26 and 2031 Outlooks on
the inside back cover
(2) On a CER basis and excluding COVID-19 solutions
(3) Core operating profit +11% (with further positive
impact of +2% excluding COVID-19 solutions) at
CER
(4) Core EPS +10% (with further positive impact of
+2% excluding COVID-19 solutions) at CER
(5) Penmenvy, our 5-in-1 meningococcal vaccine, was
approved in the US in February 2025
Targeted business development (BD)
also remains a key priority. In 2024, we
completed transactions to acquire
assets in oncology and RI&I;
strengthened platform capabilities in
mRNA and oligonucleotides; and
entered into several new research
alliances, including a collaboration
with Flagship Pioneering – providing
us with access to a portfolio of more
than 40 bioplatform companies. Our
recent agreement to acquire IDRx, Inc
is a good example of what we expect
to do going forward.
Upgraded long-term outlooks1
In 2025, we expect another year of
profitable growth and, as referenced
above, we have increased our long-
term outlook.
Our new expectation – for 2031 sales
to be more than £40 billion – is
calculated on a risk adjusted basis and
reflects the inclusion of Blenrep, our
significant phase III progress since last
year and multiple launch opportunities
in the 2026 to 2031 period.
With almost 90% of our 2031 sales
ambition coming from products
already approved, or planned for
launch in the next three years, we are
confident that our portfolio will deliver
against this upgraded outlook.
Capital allocation and shareholder
returns
We remain extremely focused on
disciplined allocation of capital.
Our first priority for capital remains to
invest in growth and in R&D – both
organically and in targeted business
development – at scale and pace.
R&D expenditure was over £6 billion in
2024, and we invested £2.3 billion of
capital in targeted BD.
With the pipeline opportunities we now
have, we are deliberately prioritising
investment to accelerate development
of key assets in RI&I and Oncology –
alongside long-acting HIV medicines
and existing core Vaccines
opportunities.
In addition to investing in growth, we
remain focused on improving returns
for shareholders.
Our primary mechanism for this
remains our progressive dividend. For
2024 we declared a full year dividend
of 61p, and we expect to pay 64p in
2025.
We also look to deliver further returns,
when circumstances and opportunities
allow, and have announced our
intention to buy back £2 billion of
shares over the next 18 months. We
believe this offers a very attractive
return for shareholders at current share
price levels.
Very importantly, our outperformance
and stronger balance sheet support all
our plans to invest competitively for
growth – in pipeline and in BD – as
well as deliver enhanced returns to
shareholders.
Operating as a Responsible Business
GSK is committed to operating
responsibly. This is core to who we are
as a company and to delivering our
ambition for patients, our people and
long-term business success.
We maintained good progress in our
six priority areas to build Trust in 2024,
with an overall performance rating of
“on track” for the third consecutive
year.
Importantly, we retained a leadership
position in the Access to Medicine
Index where we have been placed first
or second since its inception in 2008.
We are also making great progress
against the ambition we set ourselves
in 2021 to positively impact the health
of 2.5 billion people over ten years,
with latest estimates indicating that
we have reached at least two billion
people.
Being responsive to the environment in
which we operate and the changing
expectations of our key stakeholders, is
critical to building trust. With that in
mind, we continue to review and
evolve the actions we are taking in all
of our six areas.
Culture
At GSK, our culture is centred around
being ambitious for patients,
accountable for our impact and doing
the right thing and we continue to
make meaningful progress.
Our culture lays the foundation for
how, together, we deliver our strategy,
our business performance and positive
health impact at scale. It also drives
our strong commitment to creating an
environment where talented people
can thrive, feel valued, included, are
able to focus on what matters and
pursue exciting career development
opportunities.
We continue to see highly positive
engagement of our people – with
scores of more than 80% again last
year in our internal survey. Increased
confidence in the delivery of our
strategy was also reflected in the
survey, and we were delighted to see
positive feedback on the effectiveness
of our managers – with 79% rated as
highly effective by their teams.
Clear momentum as we look ahead
As we look ahead, I am very optimistic
for the future at GSK and our ability to
deliver our outlooks and develop the
next wave of meaningful R&D
innovation.
Our portfolio is demonstrating growth
and resilience in key areas of
therapeutic strength; we expect
another year of profitable growth in
2025; and we have further improved
our long-term outlooks, particularly in
RI&I and Oncology.
This comes on the back of a strong
track record of operational delivery
and accelerating progress in
innovation and pipeline development.
As ever, it is our wonderful teams and
partners who fuel this progress, and I
want to thank them for all they have
achieved during 2024, for the
momentum they are bringing into
2025, and for the inspiration they bring
to us all.
All of this underscores GSK’s clear
opportunity to deliver scale health
impact to patients, and attractive
returns to shareholders, through the
decade and beyond. Combining
science, technology, and the talent of
our people, to get ahead of disease
together.
Emma Walmsley
Chief Executive Officer
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CEO’s statement continued
9
(1) See assumptions and basis of preparation
related to 2025 Guidance, 2021-26 and 2031
Outlooks on the inside back cover
Our Ahead Together strategy and long-term priorities of Innovation, Performance
and Trust respond to major trends influencing the healthcare landscape.
Innovation
Convergence of science and technology continues
to shape research and development opportunities
A deeper insight into human biology, combined with the
potential to access and compute vast amounts of data,
continues to shape discovery and development of new
therapies. Advances in understanding of human genetics
and functional genomics, in tandem with artificial
intelligence and machine learning (AI/ML), are enabling
scientists to decode the mechanisms of disease. A better
understanding of biological processes, such as
inflammation and ageing of the immune system, is paving
the way for earlier, more precise intervention to change the
course of disease.
In 2024, the biopharma industry continued to look to new
mechanisms, technologies and opportunities. Oncology,
respiratory and infectious diseases are forecast to be
among the top ten therapy areas by 2028, based on global
spend. Around a quarter of oncology trials now focus on
novel mechanisms, especially antibody drug conjugates,
multi-specific antibodies, and cell and gene therapies. While
obesity drug trials are increasing, there is also more
attention on obesity medications in the context of studies
into other diseases; and the longer-term health needs that
could emerge due to obesity being effectively controlled.
The transformative potential of scientific and technological
advances continues to prompt innovative partnerships and
collaborations across sectors. The biopharma industry
completed around 60 AI/ML focused deals in 2024.
Countries also continue to look to innovation generated by
strategic industries, including biopharma, to support growth.
China has taken steps to bolster its R&D environment, with
its share of global biopharma companies rising to 16% in
2024. The US retains the greatest share, with 39%.
Our response
The convergence of science and technology is
changing discovery and development. At all stages of
our R&D, we’re harnessing the opportunity to be more
precise in our research targets, to identify the right
patients, and to increase the chances of successfully
developing medicines and vaccines that make a
difference to them.
We continue to invest for growth in new, best-in-class
medicines and vaccines. Our R&D approach
combines our scientific focus on the immune system,
including human genetics, functional genomics and
single-cell profiling, with the use of advanced
technologies. Our innovation is driven through both
in-house R&D as well as partnering with leading
institutions to access cutting-edge research and
technology.
We work with our peers and governments to make
sure that the policy and regulatory environment
stimulates and protects innovative research and
development within a culture that builds trust with
transparency. This includes policies at a national level
to invest in and recognise the value of innovation, as
well as global frameworks to enable responsible and
appropriate access to, and deployment of, data and
new technologies.
Read more about our R&D to prevent and change the
course of disease on pages 12 to 31
£9.9bn
Total deal value of AI/ML transactions
completed by the biopharma sector in 2024.
$440bn
Projected global spending on oncology medicines
by 2028, according to IQVIA, making it the leading
therapy area as novel cancer treatments continue
to be launched.
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Our external environment
10
Performance
Changing demographics and health system pressures
pave the way for a shift to preventative healthcare
Life expectancy is rising once again, following a dip during
the COVID-19 pandemic. By 2030, the share of the world’s
population aged 60 and over will have risen to 1.4 billion.
But a longer life does not always equate to a healthier life.
In the US and Europe, rates of chronic disease, obesity and
disability have increased over successive generations.
Changing demographics, and more complex health needs,
put economies and health systems under increasing strain.
Although medicines comprise a relatively small proportion
of overall health budgets, containing drug costs remains
a priority including for countries across Europe and the
US as they look to manage health spending. Under the US
Inflation Reduction Act, Medicare reduced prices for ten
medicines. But as population dynamics change, there is
increasing recognition of the value of preventative, pre-
emptive healthcare to support future health system
sustainability and economic growth. Adult immunisation
alone can return up to 19 times its initial investment through
health and wider socio-economic benefits.
Our response
Preventing and mitigating the effects of disease,
and helping people to live well, is an important lever
to improve health and strengthen productivity and
economic growth. We are investing in innovation to
help prevent illness in the first place and prevent
progression of disease. Realising the full potential of
this innovation needs the right systems in place to
value the full health, social and economic benefits of
preventative healthcare. It also needs the appropriate
infrastructure to help people access care at the right
time and in the right place. We are engaging with
stakeholders to identify constructive policy solutions
that would shift health systems from spending on
sickness to investing in health.
Read more about our commercial operations and
performance on pages 32 to 45
Trust
Building trust and transparency is key to implementing innovation
People’s understanding of, and familiarity with, the
biopharma industry remains relatively low. This contributes
to a lack of trust in the sector and levels of trust vary
significantly across geographies. The industry faces
continued scrutiny across a range of issues. Questions span
from how the industry delivers a consistent, safe and reliable
supply of products that address unmet needs, through to
sourcing and using health data. Despite significant strides
to widen access to medicines and vaccines, inequities
remain both within and between countries. As a result, the
industry’s business model continues to come into question.
The role of the sector in responding to sustainability and
health security challenges, including pandemics and the
rising tide of antimicrobial resistance (AMR), was also in the
spotlight again during 2024. Governments around the world
agreed a new political declaration on AMR, calling for
concerted investment in new medicines and vaccines and
improved access to antibiotics, vaccines and diagnostics.
Our response
Building trust and transparency remains central to
sustaining innovation and bringing medicines and
vaccines to patients; it is also core to delivering on
our ambitions for shareholders and society at large.
We recognise that challenge and it’s why we have
embedded six areas of responsible business – access;
global health and health security; environment;
inclusion and diversity; ethical standards; and product
governance. These are areas where we can have the
greatest impact. This ranges from delivering medicines
and vaccines to the right patient, at the right time,
to responding to risks posed by new pandemics,
increasing resistance to antimicrobials and the
consequences of climate change and nature loss.
Read more in the Responsible Business section on
pages 46 to 57
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Our external environment continued
11
Research and development
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12
A scientist based at our Upper
Providence site in the US, working in
our Research Technologies group.
This group is the foundation of our
medicine discovery, bringing together
platform and data groups to advance
development across our therapy
areas including oncology and
respiratory.
We focus on the science of the immune system and advanced technologies
to drive innovation – preventing and treating the most challenging diseases,
better and faster.
Highlights
71
assets in the pipeline
19
assets in phase III/registration 13
positive phase III readouts
–Positive phase III data and regulatory filing
for Nucala in COPD
–Positive phase III data and regulatory
filings for depemokimab, ultra-long-acting
anti-IL5 biologic including for severe
eosinophilic asthma
– Positive phase III data for Blenrep, including
overall survival, and filings in 2L+ relapsed/
refractory multiple myeloma
–Ojjaara/Omjjara approval for myelofibrosis
patients with anaemia in Japan following
approvals in the US, EU and UK
– Jemperli approval expanded to all adult
patients with primary advanced or recurrent
endometrial cancer in the US and EU
–Breakthrough Therapy (US) and Priority
Medicine (EU) designations for B7-H3-
targeted ADC, GSK’227, in relapsed/
refractory osteosarcoma
–Fast-Track designation for bepirovirsen
in chronic hepatitis B in the US and Japan
–Gepotidacin filed in the US as potential
first new antibiotic for uUTI in 20 years
– Arexvy approval in adults aged 50-59 in
the US, EU and Japan) and data indicating
protection over three full RSV seasons
–Targeted business development including
deals with Elsie Biotechnologies and
acquisition of IDRx1
Our R&D approach
By combining our understanding of the science of the
immune system with cutting-edge technology, we can
discover and develop new medicines and vaccines with
the potential to transform people’s lives.
In 2024, we invested £6.4 billion in R&D across our portfolio,
up 3% AER and 5% CER on 2023. We have 71 assets in
development, most of which have the potential to be the
first or best of their kind.
We focus our research and development on four therapy
areas: respiratory, immunology and inflammation; oncology;
HIV; and infectious diseases. These are areas where
significant patient need remains and where we have the
strongest expertise and ability to deliver differentiated and
needed medicines and vaccines at scale. Patients are at the
heart of everything we do – we engage with them and their
healthcare providers to deeply understand the impact of
disease and deliver innovation where it matters most.
Rapid advances in science and technology are unlocking
new opportunities to prevent and treat disease. Being able
to better predict and pre-empt the course of disease means
we can prevent it occurring in the first place and intervene
earlier to slow its progress and limit further complications.
This can result in better outcomes, not only for patients, but
for health systems and societies too.
Focusing on execution, technology and culture
Three priorities guide our research and development:
– Execution – accelerating delivery of our pipeline of
innovative medicines and vaccines for patients who need
them. Find out more about the latest developments
across our four therapy areas:
See page 14
– Technology – acting as a catalyst for R&D at all stages,
from how we choose research targets to making clinical
trials as effective as possible. Discover how we deploy
advanced data and platform technologies to develop
medicines and vaccines that make a meaningful
difference to people’s health:
See page 28
– Culture – focusing on delivering what matters most – for
patients, stakeholders and our people – better and faster.
See how we foster an environment where our people can
thrive, make the right decisions, take smart risks and work
effectively with each other and our partners:
See page 60
(1) Closed in February 2025
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Research and development
13
Execution
Accelerating delivery of our pipeline of innovative
medicines and vaccines for patients who need them
Our pipeline continues to grow and strengthen and we now
have 54 medicines and 17 vaccines in development.
Over the past year we began nine phase I development
programmes, moved six assets into phase II and two into
phase III. We had 13 positive phase III data readouts and 23
approvals or regulatory filings.
Our focus and investment in R&D are driving increased
productivity with end-to-end success rates more than
doubling from 2018-2023. Our phase III development cycle
times are now in the top quartile for the industry1.
Our rate of progress gives us confidence in our medium-
and long-term growth outlook. From 2025 onwards we
expect a series of major launches with peak year sales of
over £2 billion, with five approvals in 20252 alone. We’re also
looking ahead to the next wave of R&D innovation based on
an even deeper understanding of the science of the immune
system with investment in scientific partnerships and
advanced platform and data technologies, to identify the
right target, the right intervention and the right patient. This
will drive longer-term growth and value for patients,
shareholders and our people.
In respiratory, we reported positive pivotal results for Nucala
in COPD and depemokimab, the world’s first six-monthly
injectable for severe asthma and chronic rhinosinusitis with
nasal polyps (CRSwNP). This reinforced our ambition to
redefine the future of respiratory medicine.
We also continued to see significant momentum in our
expanding oncology portfolio. This included approvals for
Jemperli in endometrial cancer and Ojjara in myelofibrosis.
We saw positive phase III data for Blenrep in multiple
myeloma, including significantly improved overall survival
rates versus standard of care. This data highlighted its
potential to materially redefine clinical practice.
We made progress towards introducing innovative long-
acting injectable regimens for HIV treatment and
prevention, with positive real-world data for Apretude and
promising phase I data for our ultra-long-acting formulation
of cabotegravir.
We continued to strengthen our leadership in infectious
diseases. Our market-leading RSV vaccine, Arexvy, gained
expanded approvals in adults aged 50-59 and
demonstrated sustained efficacy over three RSV seasons.
We submitted gepotidacin for regulatory review. This is
potentially the first in a new class of oral antibiotics in 20
years for uncomplicated urinary tract infections, which
recurrently affects around one third of women. Our
oligonucleotide, bepirovirsen, was granted Fast-Track status
in the US and Japan. This takes us a step closer towards a
functional cure for chronic hepatitis B, which affects around
300 million people worldwide.
Strengthening innovation through collaboration
and business development
To complement our in-house R&D, we partner with the
world’s best minds and leading institutions to enable access
to novel science and technology. This allows us to add to
our pipeline, bring in unique data insights and integrate
platform technologies to find new ways of addressing
disease.
Targeted business development in 2024 resulted in 12
acquisitions and discovery collaborations across biotech. In
June 2024 we acquired Elsie Biotechnologies whose
platform technology will expand our oligonucleotide
pipeline. We supplemented our pipeline with acquisitions
such as the T-cell engager CMG1A46 from Chimagen for
development in lupus, and a TSLP inhibitor from Aiolos Bio
for asthma and other respiratory conditions.
We also partnered with Flagship Pioneering and its portfolio
of 40+ bioplatform companies, aiming to discover and
develop new potential medicines and vaccines. Our
presence in gastrointestinal oncology was strengthened
with our acquisition of IDRx Inc. which includes IDRx-42, a
highly selective KIT tyrosine kinase inhibitor3. In addition, we
have the option to acquire DB-1324, an antibody drug
conjugate (ADC), from Duality Biologics.
Collaboration with academia is at the heart of scientific
progress and a fundamental part of our R&D approach to
better understand disease processes. In October 2024, we
announced a five-year collaboration with Cambridge
University focusing on kidney and respiratory disease.
We’re also working with Boston University’s Center for
Regenerative Medicine to develop a better understanding
of respiratory diseases such as pulmonary fibrosis and with
Oxford University to advance novel cancer research,
focused on the potential of cancer prevention through
vaccination.
Read more about our technology collaborations on page 30
Focusing on our four core therapeutic areas
Respiratory, immunology and inflammation, see page 15
Oncology, see page 18
HIV, see page 22
Infectious diseases, see page 24
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Research and development continued
14
(1) Source: Centre for Medicines Research
(2) Penmenvy, our 5-in-1 meningococcal vaccine, was approved in the
US in February 2025
(3) Acquisition completed in February 2025
Respiratory, immunology and inflammation
For over five decades, we have been at the forefront of the
most complex respiratory health challenges. We have a
deep understanding of the underlying drivers of disease in
different groups of patients with conditions like asthma and
chronic obstructive pulmonary disease (COPD). Our
ambition is to redefine the future of respiratory medicine
with a broad portfolio of next-generation long-acting
treatments that work in distinct ways to help as many
patients as possible. We continue to pursue the most
ambitious treatment goals, aiming for early interventions
that prevent, treat and stop disease, limiting future
complications for patients.
Our deep understanding of the immune system is also
leading to advances in our growing immunology pipeline.
Here, we’re building on our decades of knowledge in
inflammatory mechanisms to target fibrotic lung, liver and
kidney disease with innovative treatments that aim to
modify underlying disease dysfunction and prevent disease
progression.
In this section:
Asset
Potential indication/
label expansion1
Nucala1 (mepolizumab)
Anti-IL5 monoclonal antibody
for five respiratory conditions
Depemokimab
Anti-IL5 monoclonal antibody
for four respiratory conditions
Camlipixant
P2X3 inhibitor for refractory
chronic cough
Benlysta1 (belimumab)
Anti-BLyS monoclonal
antibody for systemic lupus
erythematosus and lupus
nephritis
CMG1A46
Dual CD19 and CD20-targeted
T-cell engager for lupus and
related auto-immune conditions
GSK’990
Antisense oligonucleotide
for metabolic dysfunction-
associated steatohepatitis
and alcoholic liver disease
Linerixibat
IBAT inhibitor for cholestatic
pruritus in primary biliary
cholangitis
See a more detailed pipeline listing on pages 31 and 301
Respiratory
Respiratory diseases can create a significant physical, social
and emotional burden for those affected, along with
financial impact on people and healthcare systems. Older
treatments that are typically used to manage them are not
always adequate. This is why we’re focusing our research on
medicines that can potentially better control symptoms and
slow disease progression by targeting underlying drivers of
disease, like inflammation. For some patients, it may even be
possible to achieve clinical remission, where they no longer
experience symptoms and exacerbations, don’t need to use
oral steroids, and have stabilised lung function.
Next-generation treatments for patients
with IL5 mediated conditions
For some patients with respiratory conditions like severe
asthma, COPD and chronic rhinosinusitis with nasal polyps
(CRSwNP), their disease is driven by ‘type 2’ inflammation.
A cytokine (protein), known as interleukin-5 (IL5), plays a key
role in driving this inflammation, making it a proven
treatment target for these patients.
Type 2 inflammation is the underlying driver of
unpredictable exacerbations and is seen in more than 80%
of people with severe asthma and up to 40% of people with
COPD. Rarer diseases including eosinophilic granulomatosis
with polyangiitis (EGPA) and hypereosinophilic syndrome
(HES) are also driven by IL5.
We now have two anti-IL5 biologic treatments in our
pipeline. Our aim is to achieve more than simply controlling
the symptoms of these inflammatory diseases. Instead, we
strive to identify and target the underlying disease process
to slow, or even stop, disease progression. This may help
reduce the risk of organ damage and achieve clinical
remission, where possible.
We pioneered the research that established the role of IL5
in respiratory diseases and continue to apply our knowledge
as we explore other inflammatory pathways which may be
future targets.
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Research and development continued
15
– Half of the top six causes of death globally are
lung diseases, which claim around seven million
lives each year.
– Alongside lung cancer, COPD and lower respiratory
tract infections are critical healthcare challenges
with COPD affecting more than 300 million
people globally.
(1) Assets with existing approval or in development for label expansion
are italicised
Extending the impact of Nucala to more patients
Despite the availability of inhaled therapies, around half
of respiratory patients continue to experience debilitating
attacks (exacerbations) of their disease each year.
Preventing these exacerbations, including the most severe
events that lead to emergency hospital visits or
hospitalisation, is a key treatment goal to reduce the
impact on patients and on healthcare resources.
Nucala (mepolizumab), our anti-IL5 biologic (monoclonal
antibody), is the only treatment in the US and Europe with
indications in four IL5 mediated diseases.
In 2024, we gained new approvals for Nucala. In Japan,
it was approved for CRSwNP in cases where standard
treatments aren’t controlling disease. An estimated two
million people suffer from chronic rhinosinusitis in Japan,
with 200,000 needing surgery for nasal polyps.
Nucala was also approved for use in two additional
indications in China. Alongside its indication in EGPA,
Nucala is now approved as a treatment for severe asthma
with an eosinophilic phenotype and in CRSwNP, making it
the first targeted IL5 treatment in both conditions.
In China, asthma affects 46 million adults, 6% of whom
experience severe asthma, and CRSwNP affects
approximately 35 million people.
In September 2024, we presented positive pivotal results
from our phase III MATINEE trial of mepolizumab in patients
with COPD. The study met its primary endpoint, with data
showing a statistically significant and clinically meaningful
reduction in the annualised rate of moderate or severe
exacerbations compared to placebo.
Based on these data, in December 2024, the US FDA
accepted a regulatory submission seeking a new indication
for the use of mepolizumab in patients with COPD.
Improving outcomes for patients with ultra-long-acting
treatments
Long-acting therapies that target the underlying drivers of
disease to provide sustained suppression of inflammation
could further advance treatment of severe asthma and
other respiratory or immune mediated disease.
Depemokimab has the potential to be the first approved
ultra-long-acting anti-IL5 biologic with six-month dosing.
This could offer millions of patients with respiratory diseases
sustained efficacy benefits including a reduction in
exacerbations and hospitalisations, as well as limiting
cumulative lung damage and disease progression with just
two injections per year. Extended dosing intervals could also
help tackle other barriers to patients achieving optimal
outcomes, such as adherence challenges or the
inconvenience of frequent healthcare appointments.
In 2024, we announced positive results from the SWIFT-1
and SWIFT-2 phase III trials of depemokimab in patients
with severe asthma with type 2 inflammation. Both trials
met their primary endpoints with statistically significant
reductions in the annualised rate of clinically significant
exacerbations (asthma attacks) over 52 weeks versus
placebo. Importantly, there was also a 72% reduction in
exacerbations leading to hospitalisation.
In October 2024, we also announced positive phase III
data from our ANCHOR-1 and ANCHOR-2 trials for
depemokimab in patients with CRSwNP. Data from the
ANCHOR and SWIFT programmes have been used to
support filing acceptances in China, Japan and Europe,
and regulatory submission in the US, for the use of
depemokimab for two indications; in asthma with type 2
inflammation and CRSwNP. Additional submissions will
occur through 2025.
We continue to explore other potential long-acting
respiratory treatments in our early pipeline that could
benefit a broader range of patients. These include our
long-acting anti-thymic stromal lymphopoietin (TSLP)
monoclonal antibody, currently in phase II for patients
whose asthma is not driven by type 2 inflammation;
and our anti-IL33 asset in phase I for COPD.
Addressing the unmet need in refractory chronic cough
with camlipixant
Camlipixant, our potential treatment for patients with
refractory chronic cough (RCC), became part of our pipeline
through the acquisition of Bellus Health in 2023. It is in
phase III development.
Clinical data has shown that by selectively inhibiting P2X3
receptors, camlipixant may reduce cough frequency for
RCC patients with a relatively low incidence of dysgeusia.
Chronic cough affects around 28 million people, and around
10 million suffer from RCC for over a year. RCC is a cough
that lasts for more than eight weeks, doesn’t respond to
treatment for an underlying condition and is otherwise
unexplained. There’s currently no effective treatment, with
patients often cycling through other therapies and seeing
specialists with no resolution. They can also suffer from
depression, incontinence and sleep loss.
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16
Immunology
Our deep understanding of the immune system is opening up
new opportunities to help patients with a range of immune-
mediated conditions beyond respiratory. Data and platform
technology collaborations are enabling us to understand
underlying disease processes, reach previously inaccessible
targets and better identify patients for treatment. Our work in
human genetics and phenotyping is generating insights that
are informing moves into other areas, including liver disease.
Broadening use of Benlysta for immune-mediated
conditions
We continue to develop Benlysta, our anti-B lymphocyte
stimulator monoclonal antibody, for a range of immune-
mediated conditions, as well as systemic lupus
erythematosus (SLE) and lupus nephritis (LN).
Benlysta has been approved to treat adults and children
with SLE and LN in more than 60 countries, including
the US, Japan, Europe and the UK.
Benlysta’s robust and expansive evidence includes nine
randomised controlled trials (RCT), including six placebo-
controlled phase III trials in adult SLE, including LN.
These data underpin Benlysta’s potential in the short-
and long-term treatment of SLE and LN, including reduction
of flares, tapering of oral corticosteroids (OCS) and helping
to prevent damage to vital organs via a disease modifying
action.
Reinforcing our portfolio for lupus
In October 2024, we acquired CMG1A46 from Chimagen
Biosciences to reinforce our portfolio for the treatment of
lupus and underlying drivers of autoimmune disease.
CMG1A46, a clinical-stage dual CD19 and CD20-targeted
T cell-engager, has the potential to deplete uncontrolled B
cells present in autoimmune diseases, such as lupus.
Phase I trials in lupus are likely to begin in 2025.
Building on our early pipeline to address liver disorders
GSK’990
GSK’990 is our investigational RNA interference therapeutic
for steatotic liver disease (SLD), an area of substantial unmet
need. Around 26 million patients globally have advanced
alcoholic liver disease (ALD) and it accounts for half of liver-
related deaths in developed countries. There are currently no
pharmacological treatments available. Around 265 million
patients globally have metabolic dysfunction-associated
steatohepatitis (MASH), which causes a build-up of fat in the
liver that can eventually lead to scarring and, in some cases,
severe liver damage, liver failure and even death.
Genetic analysis has shown a strong association between
the HSD17B13 gene and advanced ALD and MASH.
GSK’990 targets HSD17B13 resulting in highly specific
binding to receptors that are only expressed on liver cells.
It is now in early development to address the liver fibrosis
associated with ALD and MASH and prevent disease
progression with an improved dosing schedule versus
current treatment options.
Linerixibat
Linerixibat is our investigational product for the treatment
of cholestatic pruritus in patients with primary biliary
cholangitis (PBC).
Cholestatic pruritus causes an internal itch that cannot be
relieved by scratching. Linerixibat has the potential to be
the first global therapy to treat this itch. It is a minimally
absorbed small molecule inhibitor of an ileal bile acid
transporter (IBAT), administered as an oral tablet.
In November 2024, positive phase III results demonstrated
a statistically significant improvement in itch versus placebo,
potentially supporting patients whose quality of life is
significantly affected by persistent itching.
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Research and development continued
17
CASE STUDY
Patients complete the picture: living with severe asthma
We’re researching treatments to
redefine the standard of care for
patients with severe asthma. Ryan
(pictured right), who has had
severe asthma since the age of
three, explains the impact of the
illness on his day-to-day life.
As a child, Ryan was diagnosed
with severe asthma and sarcoidosis
of the lungs. “You just can’t
breathe. Not it’s hard. You can’t,”
explains Ryan. “I spend my free
time chasing clean air, trying to go
and walk slowly, but in clean air.”
Living with severe asthma means
that Ryan, now 44, goes back and
forth to hospital frequently: “I can’t
go too far away because I need to
rely on somebody to be able to take
me to hospital.”
His symptoms mean he hasn’t been
able to do the type of jobs he would
like to do. “Everything physical is just
harder. It’s tiring. It’s exhausting,” he
says. Allergies are a challenge too.
“Technically, I’m allergic to
everything,” adds Ryan. “I couldn’t
carry on as a cabinet maker and
joiner because of the dust.”
“I spend a lot of time thinking about
the bad bits. One of the worst things
is the uncertainty,” says Ryan. But
innovation in care and treatment
gives him hope: “When you have
little glimmers of help from the
specialists, it’s amazing.”
Oncology
Cancer is one of the world’s leading causes of death, and
treatment options are still limited for many patients. Our
ambition is to help increase overall quality of life, maximise
survival and change the course of disease, expanding from
our current focus on blood and gynaecologic cancers into
lung and gastrointestinal cancers, as well as other solid
tumours with our antibody drug conjugates. Our research
uses precision medicine-based technology to match the
right treatment to the right patient.
Cancer is complex with multiple, connected biological
processes contributing to the development and progression
of disease. Our oncology portfolio includes a range of
medicines that target different aspects of cancer biology,
including uncontrolled cell division (Blenrep; Ojjaara),
immune system evasion (Jemperli) and DNA mutation
(Zejula, B7-H3 ADC; B7-H4 ADC). As our understanding of
these disease processes deepens, we’re exploring the
potential of our medicines, alone and in combination, across
multiple cancer types with the aim of offering
transformational solutions for as many patients as possible.
In this section:
Asset
Potential indication/label
expansion1
Blenrep (belantamab
mafodotin)
BCMA-targeted antibody drug
conjugate (ADC) for multiple
myeloma
Ojjaara/Omjjara
(momelotinib)
JAK1, JAK2 and ACVR1 inhibitor
for myelofibrosis with anaemia
Jemperli (dostarlimab) Anti-PD1 monoclonal antibody
for endometrial, colorectal, head
and neck, and lung cancers
Zejula (niraparib)
PARP inhibitor for ovarian, brain
and lung cancer
GSK’227
B7-H3-targeted ADC for lung
cancer and other solid tumours
GSK’584
B7-H4-targeted ADC for
gynaecological cancers
See a more detailed pipeline listing on pages 31 and 301
Targeting uncontrolled cell division
Blenrep – potential to redefine multiple myeloma
treatment
Blenrep (belantamab mafodotin) is our antibody-drug
conjugate treatment for relapsed/refractory multiple
myeloma, which we’re evaluating in early lines of treatment
in combination with novel therapies and current standard of
care treatments.
In 2024, we announced pivotal data from our DREAMM
development programme showing the potential for
belantamab mafodotin to become a new standard of care
at first relapse or later for patients with multiple myeloma.
The DREAMM-7 phase III trial showed patients receiving
Blenrep, combined with bortezomib and dexamethasone
(BVd), lived a median of almost three times longer without
their disease progressing than those receiving a
daratumumab-based combination. A subsequent planned
analysis, presented at ASH in December 2024, showed that
patients receiving the Blenrep combination had a
statistically significant and clinically meaningful 42%
reduction in the risk of death versus standard of care which
may translate to giving patients a median additional three
years of life, based on projections. The DREAMM-8 phase III
study showed a nearly 50% lower risk of disease progression
or death, as well as a positive overall survival trend, for
Blenrep, in combination with pomalidomide plus
dexamethasone (BPd), compared to standard of care.
Both studies also reinforced the well-characterised side-
effect profile of Blenrep, with patient quality of life that is
comparable to standards of care. Eye-related side effects
were shown to be managed effectively through dose
modifications without compromising efficacy. Ease of
administration in a community setting is likely to be an
additional advantage for patients and their healthcare
professionals.
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18
– Multiple myeloma is the third most common blood
cancer globally, with around 180,000 cases
diagnosed every year.
– The five-year survival rate is under 60%, and the
disease is considered treatable but not curable.
– Multiple myeloma often becomes resistant to existing
treatments, which may require inpatient care,
underlining the need for new therapies with novel
mechanisms of action that can be easily
administered in the clinic.
(1) Assets with existing approval or in development for label expansion
are italicised
In 2024, the Blenrep combinations were accepted for
regulatory review in the US, Europe, Japan, UK, Canada and
China under priority review. Blenrep was also granted
orphan drug designation in Japan and, in combination with
BorDex, received Breakthrough Therapy Designation in
China, reflecting the high unmet need and potential for
improvement in patient outcomes over available treatment
options in relapsed/refractory multiple myeloma.
In December 2024, we started a phase III trial, DREAMM-10,
with belantamab mafodotin as a first-line multiple myeloma
treatment.
Ojjaara/Omjjara – improving outcomes for patients
with myelofibrosis with anaemia
Ojjaara, known as Omjjara in several countries, is the only
medicine indicated for newly diagnosed and previously
treated MF patients with anaemia. It is a new standard of
care, as more established MF treatments can exacerbate
anaemia. Taken orally once a day it is the only therapy
demonstrating durable clinical benefit on spleen response,
symptoms and anaemia for patients with MF.
In 2024, Ojjaara was approved under the brand name
Omjjara in the EU and UK, as well as in Japan, where 70%
of patients with primary MF and 50% with secondary MF
have moderate to severe anaemia when they’re diagnosed.
These approvals followed US approval in 2023.
Targeting immune system evasion
Jemperli – treating more patients with endometrial cancer
Jemperli (dostarlimab) is the foundation of our ongoing
immuno-oncology-based research and development
programme. Our targeted research approach has identified
opportunities to address a specific biomarker, known as
dMMR/MSI-H, that is present in some gynaecologic and
other cancer types, such as colorectal cancer.
In combination with chemotherapy, Jemperli was the
first new medicine to be approved for patients with dMMR/
MSI-H primary advanced or recurrent endometrial cancer in
decades. It is the only immuno-oncology-based treatment
to show a statistically significant improvement in overall
survival for all patients with this type of endometrial cancer.
Our phase III RUBY trial showed that patients treated with
Jemperli and chemotherapy had a 31% lower risk of death
than those treated only with chemotherapy.
In 2024, the US FDA expanded approval for Jemperli plus
chemotherapy to include all patients with primary advanced
or recurrent endometrial cancer. In January 2025, the
European Commission also expanded approval to the same
group in the EU. This broadens the previous indication to
include mismatch repair proficient (MMRp)/microsatellite
stable (MSS) tumours. These represent approximately 75%
of patients diagnosed with this type of endometrial cancer,
who have limited treatment options.
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– Myelofibrosis (MF) is a rare blood cancer that affects
around 1 in 500,000 people around the world.
– About 40% of MF patients are anaemic at diagnosis,
and nearly all eventually develop anaemia and
become dependent on regular blood transfusions.
– This leads to around 30% stopping treatment with
established therapies.
– Endometrial, or uterine, cancer is the most common
gynaecologic cancer in developed countries.
– Globally around 1.6 million people live with active
disease, with 417,000 new cases reported each year.
– Around 15-20% of patients have advanced disease
when they’re diagnosed.
Unprecedented results in locally advanced dMMR
rectal cancer
The dMMR/MSI-H biomarker is also present in colorectal
cancers, so we’re using this, along with our advanced AI and
ML technologies, to inform our development programme for
dostarlimab beyond endometrial cancer.
In 2024, we announced updated results from a phase II
study of dostarlimab in locally advanced, dMMR rectal
cancer, with all 42 patients showing no evidence of disease
after treatment. This is a collaborative study with Memorial
Sloan Kettering Cancer Center evaluating dostarlimab as a
first-line treatment and alternative to life-altering surgery.
Our AZUR-1 trial is an ongoing global phase II registrational
clinical trial that aims to confirm these promising findings.
Based on these data, the FDA granted Breakthrough
Therapy Designation for dostarlimab reflecting its potential
in this patient population.
We are also advancing studies evaluating dostarlimab in
patients with advanced/metastatic stages of dMMR/MSI-H
colon cancer. AZUR-2 is our ongoing phase III trial for
dMMR/MSI-H advanced colon cancer to replace
chemotherapy as the current standard of care after surgery.
Differentiated clinical trial design in unresected
head and neck cancer
In 2024, we started our JADE phase III study evaluating
dostarlimab in locally advanced head and neck cancer,
where long-term survival remains poor and significant
unmet need exists. Building on learnings from previous
studies, JADE has key design characteristics that
differentiate from other approaches and increase our
confidence that dostarlimab has the potential to benefit
patients where other immunotherapies have failed.
Exploring the impact of dostarlimab combinations
We’re studying dostarlimab in combination with several
potential therapeutic options for non-small cell lung cancer
(NSCLC).
The GALAXIES-Lung 301 phase III trial is investigating our
anti-TIGIT antibody, belrestotug, in combination with
dostarlimab in first-line PDL1-high NSCLC. We started this
trial in 2024 based on promising interim results from the
GALAXIES-Lung 201 phase II trial.
Our phase III COSTAR-Lung trial in second-line advanced
NSCLC continues to evaluate a triplet combination of
cobolimab, our anti-TIM-3 antibody, plus dostarlimab plus
chemotherapy, compared to a doublet combination of
dostarlimab plus chemotherapy, compared to standard of
care chemotherapy alone. We expect the trial to read out in
2025.
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– Colorectal cancer is the third most diagnosed cancer
in the world.
– It accounts for around a tenth of all cancer cases,
and is the second leading cause of cancer-related
death.
– Head and neck cancer accounts for approximately
5% of all cancer cases and deaths, globally, with
the incidence increasing across many countries.
– Nine in 10 patients with head and neck cancer have
squamous cell carcinoma, and the majority are
diagnosed with locally advanced disease.
Targeting mutation and repair of DNA
Niraparib – our PARP inhibitor for ovarian cancer
and beyond
We continue to assess the potential of niraparib, currently
approved as Zejula for ovarian cancer, across multiple
tumour types and in combination with other agents.In June
2024, the GLIOFOCUS phase III trial began, evaluating
niraparib in newly diagnosed MGMT unmethylated
glioblastoma (brain cancer). This is sponsored by the Ivy
Brain Tumor Center and supported by GSK. The decision to
progress to phase III was prompted by positive results in an
earlier clinical trial, conducted by the Ivy Brain Tumor
Center, where niraparib showed significant results in
reaching the tumour and changing how the cancer grew.
The broader development programme for niraparib
includes the ZEAL-1L phase III trial evaluating niraparib in
combination with standard of care for the maintenance
treatment of first-line advanced NSCLC, and the FIRST
phase III trial assessing its potential in combination with
dostarlimab in first-line ovarian cancer which met its
primary endpoint.
GSK’227 B7-H3 targeted ADC – promising preliminary
data in extensive stage small-cell lung cancer
GSK’227 is our investigational B7-H3-targeted antibody-
drug conjugate (ADC). B7-H3 is over-expressed in a wide
range of solid tumour types, including lung.
In 2024, the US FDA granted Breakthrough Therapy
Designation for GSK’227 for patients with extensive-stage
small-cell lung cancer (ES-SCLC) with disease progression
on or after platinum-based chemotherapy (relapsed or
refractory). GSK’227 also received Priority Medicines
(PRIME) Designation from the EMA. These designations
reflect the significant unmet need in ES-SCLC and are
based on promising early data from the ARTEMIS-001
phase I study which were presented at the 2024 World
Conference on Lung Cancer.
We expect to conduct a broad development programme for
GSK’227 and, in 2024, started a phase I platform study for
advanced solid tumours, which includes a cohort for
patients with relapsed or refractory ES-SCLC. In December
2024, the US FDA granted Breakthrough Therapy
Designation for GSK’227 in late-line relapsed or refractory
osteosarcoma.
We’re also exploring two other ADCs. GSK’584, our B7-H4-
targeted ADC, is being evaluated for gynaecologic cancers,
such as endometrial and ovarian cancer. And we have an
exclusive option to acquire ADC, DB-1324 from Duality
Biologics for gastrointestinal tumours.
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21
CASE STUDY
Patients complete the picture: living with endometrial cancer
We’re aiming to treat more patients
living with endometrial, or uterine,
cancer – which currently affects
around 1.6 million women
worldwide. Here, Grace (pictured
right) shares her experience of the
disease and why the search for new
treatments is so critical.
Grace was 30 when diagnosed with
endometrial cancer. She then went
through surgery, immunotherapy,
radiotherapy and brachytherapy.
“With immunotherapy, fatigue is a
very different experience to say
fatigue when I was on
chemotherapy,” Grace explained.
“It was an incredibly dark time.
Things felt quite hopeless. And if
you’ve got the uncertainty about
what to expect from treatment on
top of that, it can be so frightening.”
“The medical data only tells one
part of the story,” said Grace, who
acts as a patient advocate to help
others living with endometrial
cancer.
“The data can only really be truly
understood by the people that are
living with it, who are having the
medications and the side effects on
a daily basis. Because actually, we
live this every day.
“There are so many dimensions to
being well. I want a life that’s
meaningful and full. The hope for us
lies in the medicines that are
coming.”
– Lung cancer is the leading cause of cancer-related
deaths worldwide, accounting for the highest
mortality rates among both men and women.
– Most lung cancers are non-small-cell lung cancer
(NSCLC) which is often diagnosed at advanced
stages where treatment options are limited.
HIV
For nearly four decades, we’ve worked to improve the lives
of people living with HIV or those who could benefit from
HIV prevention. Having launched the first long-acting
injectable options for HIV treatment and prevention,
patients now only need to take medication a few times a
year instead of every day. We are focused on even longer-
acting options for treatment and prevention, including the
option to treat at home as well as ultimately finding a cure.
Our work in HIV is led by ViiV Healthcare, which we
majority-own, with Pfizer and Shionogi as shareholders. ViiV
Healthcare is the only company exclusively dedicated to
treating and preventing HIV with an ambition to end the
HIV epidemic.
ViiV Healthcare’s integrase strand transfer inhibitors
(INSTIs), the core of our current long-acting and daily
therapies, are trusted by healthcare professionals worldwide
for their potency, durability, long-term tolerability and high
barrier to resistance. The foundation was set with our first
INSTI-based medicine, dolutegravir, which established a
gold-standard for daily oral therapy. The follow up, long-
acting cabotegravir injectables, increased dosing intervals
to every two months. And now, our aim is to increase the
treatment and prevention dosing interval to every four to six
months. This could mean fewer visits to the clinic for people,
as well as more choices for treatment and prevention, and
the assurance of long-term efficacy.
Working towards a clear mission to leave no person living
with HIV behind, and grounded in our deep understanding
of patient insights, we took more steps in 2024 towards
developing a new generation of longer-acting medicines to
treat or prevent HIV.
In this section:
Asset
Potential indication/label
expansion1
Cabenuva (cabotegravir/
rilpivirine)
Long-acting 2DR for HIV
treatment
Dovato (dolutegravir/
lamivudine)
2DR for HIV treatment
Apretude (cabotegravir)
Long-acting PrEP for HIV
prevention
GSK’744 (cabotegravir/
CAB-ULA)
Ultra-long-acting HIV
treatment and prevention
VH’184
Third-generation INSTI for HIV
treatment
VH’310
Ultra-long-acting HIV
See a more detailed pipeline listing on pages 31 and 301
Cabenuva – underlining the efficacy
of our long-acting treatment
Cabenuva (cabotegravir; rilpivirine) is the world’s first and
only complete, long-acting injectable treatment for HIV,
launched in 32 markets around the world. Administered in a
clinic, only six times a year, it provides people living with HIV
with an alternative to daily pills. The result is that people
living with HIV may have a better quality of life by improving
their treatment adherence and reducing stigma or fear of
disclosure.
In 2024, interim data from the LATITUDE phase III trial
showed Cabenuva was more effective than daily oral
therapy at maintaining viral load suppression in people
living with HIV with a history of antiretroviral treatment
adherence challenges. There are many reasons why it is
difficult for people to stick to daily treatment including pill
fatigue, the daily reminder of HIV or the fear of having their
HIV status disclosed. CROWN, a follow-up study to
LATITUDE, is a clinical trial evaluating the use of Cabenuva
in people living with HIV who are experienced with daily oral
treatment, but have not successfully suppressed the virus
and have detectable levels of HIV.
Dovato – showing the effectiveness
of our oral daily treatment option
Dovato is our oral two-drug daily treatment regimen, based
on dolutegravir, and approved in the US, Europe, Japan,
Australia and other countries.
In 2024, the phase IV PASO DOBLE study comparing
Dovato to the three-drug regimen Biktarvy showed Dovato
had non-inferior efficacy, while participants also showed
statistically significantly lower weight gain when taking
Dovato over the course of 48 weeks.
We know that people living with HIV are concerned about
taking more medicines as they age, as well as being
interested in their metabolic health.
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– 40 million people live with HIV globally, with
1.3 million new cases diagnosed in 2023. In the US,
around one third of people living with HIV struggle
to maintain viral suppression.
– HIV incidence continues to grow despite progress in
care, highlighting that an urgent need still exists for
new options to prevent and treat HIV.
(1) Assets with existing approval or in development for label expansion
are italicised
Apretude – UK approval and real-world studies
reinforcing more than 99% effectiveness for
Apretude
Prevention is a vital part of ending the HIV epidemic, but
globally only about 15% of people who could benefit from
pre-exposure prophylaxis (PrEP) are taking it to reduce the
risk of sexually transmitted HIV. Apretude (long-acting
cabotegravir) is the world’s first long-acting injectable PrEP.
It is administered by a healthcare physician six times a year.
Since the pioneering US launch of Apretude in 2022, it has
also been approved in the EU, Australia, South Africa and
several other countries. In 2024, Apretude received
marketing authorisation in the UK from the Medicines and
Health products Regulatory Agency (MHRA). Additional
regulatory submissions are underway.
In July 2024, we announced positive data for Apretude use
during pregnancy. Women of childbearing age in sub-
Saharan Africa experience disproportionately high rates of
HIV. These data showed that Apretude was generally well
tolerated among women who became pregnant and that
pregnancy outcomes were similar to those with no
cabotegravir exposure. These data add to the evidence for
Apretude as a prevention option for women.
We also saw high effectiveness, 99%, of Apretude in studies
that spanned gender diverse populations in the US and
participants from Black and Hispanic communities.
Ultra-long-acting pipeline – positive data
supports continued progression to extended
dosing intervals
We are focused on enabling even longer treatment and
prevention intervals of up to four months and longer,
building our leadership in long-acting therapies. This would
see people making just three clinic visits a year, doubling the
current dosing interval available today for Cabenuva and
Apretude.
Data from the phase I trial of GSK’744, our investigational
ultra-long-acting formulation of cabotegravir (CAB-ULA),
showed a dosing interval of at least four months was
possible. This supports a move to the next stage of clinical
development.
The trial demonstrated that intramuscular (IM) dosing of
CAB-ULA slows drug absorption compared to the current
CAB-LA formulation, producing a more desirable
pharmacokinetic profile that supports less frequent dosing.
Also, the safety and tolerability of the new formulation was
comparable to our current profile for IM dosing with the
approved CAB-LA formulation.
Additionally, we selected rilpivirine as the partner for CAB-
ULA for our every four-month treatment option. This
regimen selection is based on progress in formulation
studies for rilpivirine and builds on existing positive patient
and physician experience with these medicines in our
current portfolio.
A registrational study is also in progress to evaluate using
CAB-ULA to prevent HIV in adults.
Extending dosing and delivery options
Our goal is to offer treatment and prevention options that
allow for every-six-monthly dosing as well as self-
administered medicines by the end of the decade. As part
of our development work, we are exploring the next
generation of integrase inhibitors and partner agents to
reach six months and beyond.
In 2024, we announced data for VH’184, our third-
generation investigational INSTI. Early phase I data showed
positive findings to support the development of VH’184, as a
potential for ultra-long-acting dosing and coverage of
INSTI-resistant viruses. As well as a unique resistance profile,
further analysis also showed a good safety and tolerability
profile for VH184. Building on our legacy of developing new
integrase inhibitors, these positive findings reinforce that
integrase inhibitors will remain the gold standard in HIV,
trusted for their efficacy, long-term tolerability and high
barrier to resistance. As such, VH184 is an excellent
candidate for further development for ultra-long-acting and
self-administered therapy.
Another compound, VH’310, is an inactive compound
(known as a prodrug) that converts to active cabotegravir
when administered into the body. Preclinical studies showed
that VH310 delivered long-duration cabotegravir for more
than 50 weeks. A first-time-in-human study that will look at
the pharmacokinetic and safety profile is planned for 2025.
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23
Infectious diseases
Infectious diseases cause around one in six deaths
worldwide. They also put significant strain on healthcare
systems and societies.
We intend to have a positive impact on the lives of more
than 2.5 billion people by the end of the decade and a
significant proportion of this will be through our work in
infectious diseases. Our portfolio here is the broadest in
our industry.
Our priorities include seasonal infections, like respiratory
syncytial virus (RSV) and influenza; chronic infections, like
hepatitis B, shingles and HIV; common childhood diseases,
including measles; and rarer but critical conditions like
meningitis. We also focus on bacterial infections, where
antimicrobial resistance is creating an urgent need for new
treatments.
In this section:
Asset
Potential indication/label
expansion1
Arexvy
Vaccine for respiratory
syncytial virus
Shingrix
Vaccine for shingles
MenABCWY vaccine
candidate
Vaccine candidate for
meningitis
Bepirovirsen
Antisense oligonucleotide for
chronic hepatitis B
Pneumococcal vaccine
candidates
Vaccine for pneumococcal
diseases in adults and infants
mRNA vaccine
candidates
mRNA vaccines for seasonal
influenza, H5N1 pre-pandemic
influenza, and SARS-CoV-2
Gepotidacin
Antibiotic for uncomplicated
urinary tract infections and
uncomplicated urogenital
gonorrhoea
Tebipenem
Antibiotic for complicated
urinary tract infections
See a more detailed pipeline listing on pages 31 and 301
Arexvy – expanding protection against RSV
with our market-leading vaccine
In 2024, Arexvy, our RSV vaccine, gained expanded
approvals in the US, Europe and Japan for the prevention of
lower respiratory tract infection disease (LRTD) in adults
aged 50 to 59 at increased risk. Arexvy was originally
approved for adults 60 and over in a number of markets in
2023. It is now available for that group in over 50 countries.
Further adding to the body of evidence supporting Arexvy,
we shared new data from the AReSVi-006 phase III trial.
This showed that one dose of the vaccine is efficacious
against RSV-LRTD and severe LRTD in adults aged 60 and
older over three full RSV seasons. These results included
efficacy against different RSV subtypes, in adults with
advanced age (70-79 years of age) and those with certain
underlying medical conditions. Safety and reactogenicity
data were consistent with initial observations from the
phase III programme.
Positive data were also reported showing the vaccine’s
efficacy and safety in adults aged 18 and above at
increased risk from RSV, including immunocompromised
patients. We continue to provide data on longer-term
follow-up to help recommending bodies determine future
RSV revaccination schedules.
To ease access to important adult vaccines, we generate
data to show our vaccines can be co-administered.
Following data on co-administration with seasonal flu
vaccines in 2023, in 2024 we presented data confirming
that Arexvy can also be administered together with our
shingles vaccine, Shingrix. Further co-administration trials,
including with pneumococcal vaccines, are ongoing.
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24
– RSV affects around 64 million people of all ages
every year, causing approximately 470,000
hospitalisations and 33,000 deaths annually in
people 60 and over in industrialised countries.
– Over 33 million people in the US and Europe aged
50-59 have a medical condition that increases their
risk of severe RSV outcomes.
– People with certain underlying medical conditions,
like COPD, asthma, heart failure and diabetes, are
at increased risk from RSV, which can worsen these
conditions and lead to pneumonia or death.
(1) Assets with existing approval or in development for label expansion
are italicised
Shingrix – showing our vaccine’s long-lasting
duration of protection against shingles
Shingrix, our shingles vaccine, is available in 52 countries for
people over 50. In most of these countries it is also available
for people over 18 who are at increased risk of shingles. The
vaccine combines one of our adjuvants with an antigen
chosen to enhance a protective immune response. This
formulation may help to address the natural age-related
decline in immune response that can make it more difficult
to protect older people from disease.
In 2024, the China National Medical Products
Administration (NMPA) accepted our regulatory application
for Shingrix to prevent shingles in people of 18 years and
over at increased risk. The vaccine is already approved in
China for people of 50 and over.
In 2024, we published data showing that Shingrix gives a
high level of protection for more than a decade in people
aged 50 and over. The ZOSTER-049 long-term follow-up
phase III trial showed 82% efficacy within the 11th year
following vaccination. The study, covering 7,000 people in
18 countries, also showed over 73% cumulative efficacy from
year 6 to 11 for Shingrix in people over 70.
A separate retrospective observational study sponsored by
GSK, ZOSTER-122, evaluated a potential association
between Shingrix vaccination and reduced dementia risk,
compared to the risk in those who received one or more of
two other elective adult vaccines recommended for similar
age groups. These earlier initial results were encouraging
and were consistent with the growing body of evidence. The
ZOSTER-122 results were presented at the Alzheimer's
Association's 2024 International Conference. We continue
to investigate this area.
Reducing the burden of meningitis with
our meningococcal vaccines
Our meningitis ACWY vaccine Menveo and meningitis B
vaccine Bexsero protect against most forms of IMD. Our 5-
in-1 MenABCWY vaccine candidate combines them, aiming
to protect against the five most common types of
meningococcus with one vaccine. In 2024, the US FDA
accepted the file for this vaccine candidate for regulatory
review1.
The vaccine could simplify immunisation by reducing the
number of injections required. In turn, this could increase
immunisation rates. Although meningitis B is the most
common group of IMD-causing bacteria in US adolescents
and young adults, just under 12% of them have had the two
doses of vaccine needed to provide protection.
Our phase III trial to assess the safety and effectiveness of
the MenABCWY vaccine candidate found the breadth of
immune response to be consistent with Bexsero and
Menveo.
Fast-track designations for our investigational
medicine for chronic hepatitis B (CHB)
The WHO has highlighted hepatitis B as a global public
health threat, setting targets for its elimination by 2030
through improved diagnosis and treatment, and
preventative vaccination programmes.
Bepirovirsen, our triple-action antisense oligonucleotide, is a
potential new treatment option for people with CHB when
combined with oral antiviral therapies, called nucleoside/
nucleotide analogues (NAs).
Data from the B-Clear and B-Sure phase IIb trials show
bepirovirsen is the only single agent in phase III
development to provide evidence of clinically meaningful
functional cure response when combined with oral NAs.
Current treatments (pegylated interferon) provide less than
8% functional cure rate, with less than 1% for oral
treatments.
(1) This vaccine was approved in the US in February 2025, as Penmenvy
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Research and development continued
25
– Up to one in three people develop shingles in their
lifetime, sometimes with serious consequences,
including loss of vision and nerve pain, which affects
up to 30% of people.
– By the age of 50, most adults already have the virus
that causes shingles inside their body, even though
not everyone will develop it.
– As people age, and their immune response to
infection wanes, the risk of developing shingles
increases.
– There are approximately 1.2 million cases of invasive
meningococcal disease (IMD) worldwide each year.
– Up to one in 10 people diagnosed with IMD will die,
despite treatment.
– 257 million people worldwide are living with CHB,
though only around 10% are diagnosed.
– Nearly one million people die each year from
hepatitis B and related complications, such as
liver cancer.
In 2024, bepirovirsen was granted Fast Track designation
for the treatment of CHB by the US FDA, as well as SENKU
designation by the Japanese Ministry of Health, Labour and
Welfare, reflecting its potential to address an unmet
medical need for a serious and life-threatening condition.
The B-Well phase III clinical trial programme is now
underway with both pivotal trials achieving full recruitment
ahead of schedule.
Other infectious diseases
Influenza and respiratory combinations
We’re developing mRNA-based vaccines for influenza and
COVID-19, including combinations. In 2024, we achieved
several important milestones across our mRNA development
programme.
We reported positive data from a phase II study for a
COVID-19 vaccine candidate. This showed single booster
doses for both monovalent and bivalent modified vaccine
candidates produced meaningful immune responses with
acceptable reactogenicity profiles across all tested dose
levels.
For seasonal influenza, we announced positive results from
our phase II trial. This studied a range of mRNA formulations
in older and younger adults to evaluate vaccine candidates
that could improve on standard immune responses against
influenza A and B strains. Data confirmed that the mRNA
vaccine candidates elicited strong overall antibody titres
with an acceptable safety profile. These results supported
progression of our seasonal influenza vaccine programme
into late-stage development. Positive data from both
programmes enabled the start of a combined phase I/II
study for a seasonal influenza and COVID-19 combination
vaccine candidate in 2024.
As part of our commitment to helping governments around
the world with pandemic preparedness, we started a phase
I/II study of an investigational influenza A (H5N1) pre-
pandemic vaccine candidate. The investigational vaccine
has received Fast Track designation from the US FDA.
In 2024, we restructured our collaboration with CureVac into
a new licensing agreement. Under the new terms, we
assumed full control of developing and manufacturing
candidate vaccines for influenza and COVID-19, including
combinations, together with worldwide rights to
commercialise them.
Pneumococcal disease
We are using the innovative MAPS vaccine platform
technology to progress development of new vaccine
candidates with best-in-class potential for pneumococcal
diseases. MAPS technology potentially enables higher
antibody responses against more disease-causing serotypes
for broader and stronger protection.
We have programmes to develop multivalent vaccines for
both infants and adults that provide the broadest possible
coverage and high immunogenicity. We are prioritising 30
plus-valent pneumococcal vaccine candidates for adults
and infants currently in pre-clinical development with first
subject, first visit expected in 2025. Our 24-valent vaccine
candidate for infants is currently in phase II development.
Herpes simplex virus
Following a combined phase I/II proof-of-concept study to
assess our early-stage therapeutic herpes simplex virus
(HSV) vaccine candidate, we decided not to progress it to
phase III. We will continue to generate follow-up data that
could offer valuable insights into recurrent genital herpes.
Given the unmet medical need, we’ll review all our relevant
data and studies to progress further research.
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Research and development continued
26
– Influenza is an enduring public health challenge.
There are around one billion seasonal influenza cases
each year worldwide, with up to five million leading
to severe illness and up to 650,000 proving fatal.
– Globally, over 772 million cases of COVID-19 have
been confirmed and nearly seven million deaths
have been reported.
– Worldwide, around one million children lose their lives
to pneumococcal disease each year.
– In the US, pneumococcal pneumonia causes around
150,000 hospitalisations annually.
– Pneumococcal resistance to antimicrobials is a
serious and growing global problem.
Antibiotics and antimicrobial resistance
Gepotidacin – progress towards a new treatment for
uncomplicated urinary tract infections (uUTIs) and
gonorrhoea
Gepotidacin is our investigational, first-in-class oral
antibiotic, with a novel mechanism of action for the
treatment of female adults and adolescents with uUTIs.
New treatments are needed, as the number of uUTIs caused
by drug-resistant bacteria is increasing. This can result in
higher treatment failure rates.
Following positive results from our phase III EAGLE-2 and
EAGLE-3 trials, gepotidacin was accepted for priority review
by the US FDA in 2024. In these studies, gepotidacin
demonstrated non-inferiority to the current standard of care
for uUTIs. If approved, gepotidacin will offer a much-
needed additional oral treatment option for patients at risk
of treatment failure associated with resistance or recurrence
of uUTI.
Gepotidacin is also in development for uncomplicated
urogenital gonorrhoea in adolescents and adults. In 2024,
we announced positive data from our phase III EAGLE-1
trial. Gepotidacin performed as well as intramuscular
ceftriaxone plus oral azithromycin, a leading combination
treatment for gonorrhoea. The results show gepotidacin has
the potential to be a novel treatment option amid rising
resistance to other treatments, and for patients who have
allergies and intolerances to other treatments.
We had also been investigating a potential vaccine for
gonorrhoea. Following results from the phase I/II study, we
decided not to progress to phase III.
Tebipenem – treating complicated urinary tract infections
Through our partnership with Spero Therapeutics, Inc., we
have an exclusive licence agreement for tebipenem HBr, a
late-stage oral carbapenem antibiotic with the potential to
treat complicated urinary tract infections (cUTIs). If
approved, tebipenem HBr will address an unmet medical
need for a novel oral antibiotic as an alternative to
intravenous hospital therapy for drug-resistant cUTIs.
PIVOT-PO, the pivotal phase III trial for tebipenem, is
ongoing.
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Research and development continued
27
CASE STUDY
Patients complete the picture: living with urinary tract infections
Recurrent uUTIs can cause
severe discomfort, anxiety
and potentially lead to other
complications. Listening to the
insights of women living with these
infections is key to our search for
potential new treatments.
Several women shared their
experience of uUTIs with Live
UTI Free, a patient advocacy
organisation that we have worked
with to shine a light on the realities
of living with these infections.
The limitations on everyday life
are clear, one woman explained:
“It can get you really down, get
you depressed, because ultimately
you can’t leave the house, you’re
bed bound, you’re in pain, you’re
scared to go out because there’s
no toilet there.”
Infections can make you tired and
withdrawn, and no longer want to
socialise with family and friends.
“I started to feel helpless and
increasingly sad,” another said.
The search for different ways to
prevent and manage infections
motivates and gives hope to
patients.
“I was not going to give up – I knew
one day I would be rid of it. I swore
I would not suffer from recurrent
UTIs for the rest of my life like my
Nanna did.”
Quotes from liveutifree.com
– Over half of all women are affected by uUTIs in their
lifetime, with around 30% suffering from recurrent
disease which can cause significant discomfort,
impact daily activities, and lead to other
complications.
– There are around 82 million new cases of gonorrhoea
globally each year and neisseria gonorrhoeae, the
bacteria causing gonorrhoea, is recognised by the
World Health Organization as a priority pathogen.
Over half of all women are
affected by uUTIs in their lifetime.
Technology
Technology is helping us to understand the human immune
system and the underlying biology of disease like never
before. This gives us the opportunity to transform every part
of R&D, from how we choose research targets and identify
patients, to how we design medicines and vaccines, and
make clinical trials as effective as possible.
Increasingly, technology is enabling a more dynamic
approach to R&D. For example, we’re using machine
learning algorithms to identify potential drug targets and
advanced data analytics to predict patient responses.
We’re also implementing digital twins, which will help us
realise our ambition of accelerating our clinical trials and
getting medicines and vaccines to patients faster. In 2024,
we continued to advance our pipeline by harnessing both
data and platform technologies.
Data technology – deep understanding of
disease
Data tech, including data itself, digital capabilities, artificial
intelligence (AI) and machine learning (ML), gives us an
unprecedented depth of understanding of patients, human
biology, and disease mechanisms. Our world-leading data
sources allow us to push the boundaries of what’s possible
and enable our teams to work faster and with greater
precision. For example, applying AI and ML to our work in
human genetics and functional genomics has significantly
enhanced our understanding of disease processes. This
means we can more accurately target the molecular
pathways responsible for diseases such as cancer or chronic
disorders, helping to prevent disease progression and alter
its course more effectively.
Platform technology – finding the right match
Platform technologies enable us to design and develop new
medicines and vaccines for diseases that are hard to treat
with traditional small molecules or biologics. Across our four
therapy areas, these new platforms enable us to evaluate
the best possible clinical effect for patients and could lead
to solutions for diseases previously thought untreatable.
Our novel platform technologies include:
Advanced monoclonal antibodies
These modulate a patient’s immune system and are
produced by a single clone of cells or cell lines, consisting of
identical molecules. We have the platforms to create best-
in-class monoclonal antibodies (eg IL5) with favourable
tolerability profiles, as well as bi-specific and tri-specific
antibodies, These advancements aim to provide more
effective and durable treatment options, addressing both
the treatment and prevention of disease, and helping
improve long-term health outcomes for patients.
Antibody-drug conjugates
Antibody-drug conjugates (ADCs) consist of monoclonal
antibodies linked to potent cytotoxic drugs. They are
designed to target malignant cells more precisely, sparing
healthy tissue and addressing a key challenge in treating
cancer. Our portfolio includes Blenrep as a potential
treatment for relapsed/refractory multiple myeloma, and
two investigational ADCs targeting B7-H3 and B7-H4,
proteins that are highly expressed across a range of
different cancer types. We also have an exclusive option
agreement to license ADC, DB-1324 from Duality Biologic
for gastrointestinal tumours.
Small molecule design
This is the process of creating tiny chemical compounds
that can precisely target and interact with specific proteins
or enzymes in the body to treat diseases. We’re building a
digital chemistry platform to transform the discovery of
small molecule medicines by using AI/ML and automation.
This will help create chemical compounds at an industry-
leading scale, quickly and efficiently, through a unique
generative design platform that we have developed. This
platform should enable us to deliver small molecules,
covalent medicines, and innovative treatments like
antibody-drug conjugates (ADCs) to patients with
increased success and speed.
Oligonucleotides
These address hard-to-treat diseases with high unmet need
by modulating gene expression and transcription. About
half of therapeutic targets are difficult to solve with
traditional small molecules or biologics. Oligonucleotides
could address RNA-based diseases which were previously
thought to be untreatable with traditional drugs.
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Research and development continued
28
Our oligonucleotides include bepirovirsen for chronic
hepatitis B (see page 25), and GSK’990 (see page 17) which
we’re developing as a potential treatment for steatotic liver
disease. Our acquisition of Elsie Biotechnologies in 2024
brings together Elsie’s expertise and our internal capabilities
in AI/ML to accelerate a next-generation oligonucleotide
platform. This will further enable us to create predictive
models for designing oligonucleotides aimed at difficult-to-
treat diseases that affect large numbers of patients.
MAPS technology
This technology targets complex infections through
multivalent vaccines which generate multiple different
immune responses to both disease-specific polysaccharides
and protein antigens. We’re using MAPS technology to
develop a portfolio of vaccines against pneumococcal
disease. MAPS technology has the potential to expand the
coverage of vaccines against current and future pathogens.
mRNA technology
This technology helps the human immune system to prevent
or fight disease with vaccines that enable the body’s own
cells to produce specific proteins and antigens. This
technology has the potential for rapid deployment with new
vaccine targets. We have influenza and COVID-19 mRNA
vaccine programmes.
Advanced adjuvants
These enhance the body’s immune response to increase the
efficacy of vaccines and open up new vaccine targets. We
design combinations of adjuvant/antigens specific to the
need of the patient groups we want to help protect.
Adjuvants are a key part of our Arexvy and Shingrix vaccines
and may help overcome the natural age-related decline in
immunity that contributes to the challenge of protecting
older adults.
Accelerating innovation in our pipeline
Data and platform technologies help us in four main ways:
Choosing the right targets
Data tech helps us to choose and prioritise genetic targets
most likely to have a positive impact on patients’ health and
change the course of disease. This accelerates development
and increases probability of success, so we can bring new
medicines to patients who need them, faster.
For depemokimab, predictive modelling, alongside our work
to understand disease processes, has enabled us to
progress straight to phase III from phase I for four
respiratory indications.
For our oligonucleotide GSK’990, computational analysis of
genetic data, including gene expression profiles and genetic
variations associated with metabolic dysfunction-associated
steatohepatitis (MASH) across several genetic datasets,
enabled us to identify and validate targets for MASH, giving
us confidence to in-license the asset. The analysis also
found a link to alcohol-related liver disease (ALD), opening
up another potential indication and increasing the asset’s
potential value.
Identifying the right patients
Our technologies help us understand which patients may
respond best to our treatments at specific points in their
disease.
In the case of our oligonucleotide bepirovirsen, AI and ML
are helping us to achieve functional cure in more patients
with chronic hepatitis B. Modelling retrospective data from
our phase II trial showed us how different patients might
respond to treatment.
We’re using the dMMR/MSI-H biomarker, present in some
endometrial and colorectal cancer tumours, to inform
clinical development of our treatment Jemperli. And we’re
using advanced technologies like organoids (3D tumour
models grown in the lab), deep-tissue profiling and digital
pathology to match it to the right patients.
These predictive approaches improve our development
success rates, so we’re more likely to observe a substantial
clinical effect. They also help us see which patients are most
likely to respond. This enables doctors to make more
informed and tailored decisions about which treatments are
right for an individual patient’s cancer. This is particularly
important for tumours with dMMR/MSI-H, which don’t
respond as well to chemotherapy.
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Research and development continued
29
Designing and manufacturing the right treatment
Technology gives us more options to reach our genetically
validated targets by choosing the treatment method
(modality) most likely to succeed and make a meaningful
difference. It also allows us to sustain and control quality
and consistency throughout development and
manufacturing.
In oncology, we’re evaluating targeted ADCs in certain
types of small-cell lung cancer, ovarian cancer and
endometrial cancer. ADCs combine an antibody that
targets a specific characteristic of a tumour cell with a
payload carrying an anti-cancer agent, such as
chemotherapy. The targeted antibody acts like a ‘lock-and-
key,’ so that the payload can deliver the cancer-killing
medicine inside the tumour.
In HIV, we’re using platform technologies to develop ultra-
long-acting treatment and prevention medicines, based on
cabotegravir. We’re improving drug delivery with an enzyme
to safely open up more space under the skin to inject more
drug subcutaneously. We can also extend the drug’s dosing
interval by slowing down its absorption and deliver a longer-
lasting option using other biopharmaceutical approaches to
modify formulation.
Making clinical trials more effective
Technology is also a tool for accelerating our clinical studies
and improving their outcomes, from the early stages of
design to recruiting patients, collecting samples and making
regulatory submissions.
To reach more patients faster, we’re saving time and cost by
automating clinical and regulatory submission documents
with AI, for instance in certain phase III trials of Jemperli and
depemokimab. In 2024, we continued our year-on-year
reduction in submission times with median submission time
being 24% less than in 2023. This has enabled us to file key
assets, such as depemokimab, faster. We’re also
implementing digital twins across 10 studies in 2025,
alongside other cutting-edge technology, to help realise our
ambition of reducing the number of patients needed by an
average of 15%, in clinical trials where these methods are
applicable.
Technology also helps with clarifying complex decisions. For
example, when planning the phase III study for Arexvy, our
RSV vaccine, we used predictive modelling algorithms to
identify where in the world the first RSV cases would occur,
clarifying decisions such as when to start, where to recruit
and how many people to enrol. This ultimately made
development faster and more precise for what is now the
market leading RSV vaccine for older adults.
Getting ahead together with our network
of collaborations across tech
We work with current and potential collaborators on the
most impactful data sources, platform technologies, and
translational tools to foster transformational innovation and
accelerate our pipeline.
Collaborations with UK Biobank, Alliance for Genomic
Discovery (new in 2024) and FinnGen give us access to
large genetic datasets to deepen our understanding of
disease. We integrate them with other datasets, including
our own, and use AI and ML to generate insights that
enable us to significantly improve and accelerate drug
discovery and development.
We work with Tempus, a precision medicine biotech, and
King’s College London as part of our work to match the right
patient to the right treatment and the right point of disease.
For instance, we’re replicating clinical conditions using
tumour models from patient-derived organoids alongside
digital pathology and AI to increase our speed and
probability of success in development at our Digital
Biological Twin Lab in Stevenage.
In 2024, we announced new collaborations that
complement our existing rich data sources and help us get a
deeper understanding of disease mechanisms and human
biology. They include:
– Ochre Bio, to explore drivers of liver disease by using
pathology-derived human in vitro models.
– Relation, to identify and validate new therapeutic targets
for fibrotic disease.
– University of Cambridge and Cambridge Hospitals to
establish the Cambridge-GSK Translational Immunology
Collaboration (CG-TIC) focused on kidney and respiratory
diseases.
– Center for Regenerative Medicine of Boston University
and Boston Medical Center to focus on pulmonary
fibrosis.
– Oxford University to advance novel cancer research,
focused on the potential of cancer prevention through
vaccination.
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Research and development continued
30
Pipeline overview
We have 71 assets in development, of which 19 are late-stage.
Phase III/Registration
camlipixant (P2X3 receptor antagonist) Refractory chronic cough
depemokimab (Long-acting anti-IL5 antibody)1 Asthma2,3
latozinemab (Anti-sortilin antibody)1 Frontotemporal dementia4
linerixibat (IBAT inhibitor) Cholestatic pruritus in primary biliary
cholangitis
Low carbon version of MDI5, Ventolin (Beta 2 adrenergic receptor
agonist) Asthma
Nucala (Anti-IL5 antibody) COPD3
belrestotug (Anti-TIGIT antibody)1 Non-small cell lung cancer2
Blenrep (Anti-BCMA ADC)1 Multiple myeloma
cobolimab (Anti-TIM-3 antibody)1 Non-small cell lung cancer
Jemperli (Anti-PD-1 antibody)1 dMMR/MSI-H colon cancer2
Zejula (PARP inhibitor)1 Ovarian cancer2
Arexvy (Recombinant protein, adjuvanted)1 RSV adults (18-49 YoA
AIR)2
bepirovirsen (Antisense oligonucleotide)1 Chronic HBV infection2
Bexsero (Recombinant protein, OMV) Meningitis B (infants US)
gepotidacin (BTI inhibitor)1 Uncomplicated UTI2,3
ibrexafungerp (Antifungal glucan synthase inhibitor)1 Invasive
candidiasis
MenABCWY vaccine (Recombinant protein, OMV, conjugated vaccine)
MenABCWY, 1st Gen3, 10
tebipenem pivoxil (Antibacterial carbapenem)1 Complicated UTI
GSK4178116 (Live, attenuated) Varicella new strain
Phase II
Benlysta (Anti-BLys antibody) Systemic sclerosis associated ILD2,6
GSK1070806 (Anti-IL18 antibody) Atopic dermatitis
GSK3915393 (TG2 inhibitor)1 Pulmonary fibrosis
GSK4527226 (Anti-sortilin antibody)1 Alzheimer’s disease
GSK4532990 (HSD17B13 RNA interference)1 NASH/MASH2
GSK5784283 (TSLP monoclonal antibody)1 Asthma7
GSK4381562 (Anti-PVRIG antibody)1 Cancer
nelistotug (Anti-CD96 antibody)1 Cancer
cabotegravir (Integrase inhibitor) HIV
VH3810109 (Broadly neutralizing antibody)1 HIV
VH3739937 (Maturation inhibitor) HIV
VH4011499 (Capsid protein inhibitor) HIV
VH4524184 (Integrase inhibitor)1 HIV
alpibectir (Ethionamide booster)1 Tuberculosis
ganfeborole (Leucyl t-RNA synthetase inhibitor)1 Tuberculosis
GSK3437949 (Recombinant protein, adjuvanted)1 Malaria fractional
dose
GSK3536852 (GMMA)1 Shigella
GSK3993129 (Recombinant subunit, adjuvanted) Cytomegalovirus8
GSK4023393 (Recombinant protein, OMV, conjugated vaccine)
MenABCWY, 2nd Gen8
GSK4077164 (Bivalent GMMA)1 Invasive non-typhoidal salmonella2
GSK4382276 (mRNA)1 Seasonal flu
GSK4396687 (mRNA)1 COVID-19
GSK4406371 (Live, attenuated) MMRV new strain
GSK5101955 (MAPS Pneumococcal 24-valent paed)1 Paediatric
pneumococcal disease
GSK5536522 (mRNA)1 Flu H5N1 pre-pandemic8
GSK5637608 (Hepatitis B virus-targeted siRNA)1 Chronic HBV infection
sanfetrinem cilexetil (Serine beta lactamase inhibitor)1 Tuberculosis
Phase I
GSK3862995 (Anti-IL33 antibody) COPD
GSK3888130 (Anti-IL7 antibody)1 Autoimmune disease
GSK4172239 (DNMT1 inhibitor)1 Sickle cell disease
GSK4347859 (Interferon pathway modulator) Systemic lupus
erythematosus
GSK4527363 (B-cell modulator) Systemic lupus erythematosus
GSK4528287 (Anti-IL23-IL18 bispecific antibody) Inflammatory bowel
disease
GSK4771261 (Monoclonal antibody against novel kidney target)
Autosomal dominant PKD
GSK5462688 (RNA-editing oligonucleotide)1 Alpha-1 antitrypsin
deficiency
GSK5926371 (Anti-CD19-CD20-CD3 trispecific antibody)1 Autoimmune
disease
belantamab (Anti-BCMA antibody) Multiple myeloma2
GSK4418959 (Werner helicase inhibitor)1 dMMR/MSI-H solid tumours8
GSK4524101 (DNA polymerase theta inhibitor)1 Cancer8
GSK5733584 (ADC targeting B7-H4)1 Gynaecologic malignancies
GSK5764227 (ADC targeting B7-H3)1 Solid tumours
XMT-20569 (STING agonist ADC)1 Cancer
VH4527079 (HIV entry inhibitor) HIV
GSK3536867 (Bivalent conjugate)1 Salmonella (typhoid + paratyphoid)
GSK3772701 (P. falciparum whole cell inhibitor)1 Malaria
GSK3882347 (FimH antagonist)1 Uncomplicated UTI
GSK3923868 (PI4K beta inhibitor) Rhinovirus disease
GSK3965193 (PAPD5/PAPD7 inhibitor) Chronic HBV infection8
GSK4024484 (P. falciparum whole cell inhibitor)1 Malaria
GSK5251738 (TLR8 agonist)1 Chronic HBV infection
GSK5102188 (Recombinant subunit, adjuvanted) UTI
GSK5475152 (mRNA)1 Seasonal flu/COVID-19
Assets are ordered by therapy area within each phase: respiratory,
immunology and inflammation; oncology; HIV; and infectious diseases.
Only the most advanced indications are shown for each asset.
(1) In-licence or other alliance relationship with third party
(2) Additional indications or candidates also under investigation
(3) In registration
(4) Phase III trial in patients with progranulin gene mutation
(5) Metered dose inhaler
(6) In phase II/III study
(7) Phase II study start expected in 2025
(8) In phase I/II study
(9) GSK has an exclusive global license option to co-develop and
commercialise the candidate
(10) Approved in February 2025 in the US as Penmenvy
ADC: antibody drug conjugate; AIR: at increased risk;
COPD: chronic obstructive pulmonary disease; GMMA: generalised modules
for membrane antigens; HBV: hepatitis B virus; ILD: interstitial lung disease;
MMRV: measles, mumps, rubella & varicella; NASH/MASH: non-alcoholic
steatohepatitis/metabolic dysfunction-associated steatohepatitis;
OMV: outer membrane vesicle; PKD: polycystic kidney disease;
RSV: respiratory syncytial virus; siRNA: small interfering RNA;
UTI: urinary tract infection; YoA: years of age.
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Research and development continued
31
Commercial operations
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32
Technicians working at our Jurong
facility in Singapore – one of our sites
where we bring together R&D and
manufacturing to streamline the
journey from development to delivery.
We delivered another year of excellent commercial performance in 2024.
Sales grew to over £31 billion – with strong growth and accelerating
momentum in Specialty Medicines offsetting lower vaccine sales.
Total sales
£31.4bn +3%
+7%
+8%
AER
CER
CER excluding COVID
Sales contribution by product groups1
Sales contribution by region1
Specialty
Medicines
Vaccines
General
Medicines
£0bn
£10bn
£20bn
n 2023
n 2024
US
Europe
International
£0bn
£10bn
£20bn
n 2023
n 2024
Turnover by product groups
Specialty Medicines
£11.8bn
15% AER, 19% CER
HIV
£7.1bn
Respiratory/
immunology and
other
£3.3bn
Oncology
£1.4bn
Read more on page 34
Vaccines
£9.1bn
-7% AER, -4% CER
Shingles
£3.4bn
Established
£3.3bn
Meningitis
£1.4bn
RSV
£0.6bn
Influenza
£0.4bn
Read more on page 37
General Medicines
£10.4bn
2% AER, 6% CER
Respiratory
£7.2bn
Other general
medicines
£3.2bn
Read more on page 40
Commercial operations is presented with Specialty Medicines first to reflect that this is our largest business by value.
See Group financial review on page 82 for more detail
(1) Bar charts: excluding COVID-19 solutions
Absolute values at AER; changes at CER, unless stated otherwise
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Commercial operations
33
-4%
12%
6%
6%
6%
19%
Our specialty medicines prevent
and treat diseases, from HIV and
respiratory diseases, to immune-
inflammation diseases like lupus,
to cancer. Many are first or best-
in-class.
Accelerating momentum and strong
performance across all therapy areas
Specialty Medicines contributed more than
80% of Group revenue growth
Double-digit growth in HIV, respiratory/
immunology and oncology
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Specialty
Medicines
34
Image: Endometrial cancer
Jemperli, our treatment for endometrial cancer, is a PD-1-
blocking antibody available in 33 countries that we are
continuing to investigate for future monotherapy and
combination regimens in multiple tumour types.
Key marketed products
Product
Disease
Total revenue
AER
CER
Key information
Dovato
HIV treatment
£2.2bn
23%
27%
Dolutegravir-based two-drug regimen. Now
launched in 54 markets
Tivicay
HIV treatment
£1.4bn
-3%
1%
Dolutegravir tablet for use in combination with other
antiretroviral agents. Marketed in 69 countries
Triumeq
HIV treatment
£1.3bn
-14%
-11%
Dolutegravir-based fixed-dose combination tablets.
Marketed in 64 countries
Cabenuva
(Vocabria + Rekambys
in Europe and Japan)
HIV treatment
£1.0bn
43%
47%
First complete long-acting injectable regimen
(cabotegravir, rilpivirine). Launched in 32 markets
Juluca
HIV treatment
£685m
4%
7%
Dolutegravir-based two-drug regimen. Marketed in
30 countries
Apretude
HIV prevention
£279m
87%
93%
First long-acting injectable (cabotegravir) for HIV
prevention. Approved in 25 markets
Rukobia
HIV treatment
£161m
38%
41%
Extended-release tablets for people living with multi-
drug resistant HIV-1 for use in combination with other
antiretrovirals. Launched in 17 markets
Nucala
Respiratory eosinophil-
driven diseases
£1.8bn
8%
12%
The first treatment to be indicated in the US and
Europe for use across four IL-5 mediated diseases
(see page 16 in R&D)
Benlysta
Lupus and lupus
nephritis
£1.5bn
10%
14%
Only biologic approved to treat both SLE and LN, in
adults and paediatrics, in the US, Europe and
elsewhere
Zejula
Ovarian cancer
£593m
13%
17%
PARP inhibitor commercially available in over 40
markets
Jemperli
Endometrial cancer
£467m
>100
>100
PD-1-blocking antibody available in 33 countries that
we are continuing to investigate for future
monotherapy and combination regimens in multiple
tumour types
Ojjaara/Omjjara
Myelofibrosis
£353m
>100
>100
Approved in 13 markets as the only treatment
specifically indicated for myelofibrosis patients with
anaemia
Specialty medicines, along with vaccines, now dominate our
reshaped portfolio and pipeline. Specialty Medicines sales
were £11.8 billion, up 15% AER, 19% CER, reflecting continued
growth across disease areas, with strong performances in
respiratory/immunology, oncology and HIV.
By 2031, we expect Specialty Medicines to contribute more
than 50% of sales, with this area being the key growth driver
over the next few years.
We drive growth by accelerating our pipeline as well as
prioritising business development, targeting acquisitions
and partnerships to strengthen and complement our core
therapy areas.
Respiratory/immunology
In respiratory/immunology, sales growth for our market-
leading medicines Nucala and Benlysta continued, driven
by patient demand across US, European and International
markets.
Nucala, our IL5 antagonist monoclonal antibody with
indications across four IL5 mediated diseases (eosinophil
disease), continues to drive growth. Strong performance
across all regions reflects the higher patient demand for
treatments addressing eosinophilic-led disease.
Benlysta, our monoclonal antibody treatment for lupus,
continues to grow as the only biologic approved for both
systemic lupus erythematosus and lupus nephritis. We’re
focused on helping to identify and treat patients earlier,
before lupus progresses and organ damage occurs.
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Performance: Specialty Medicines continued
35
Oncology
Oncology sales growth was driven by strong performance
across the portfolio for Jemperli, Ojjaara/Omjjara and
Zejula. With pivotal trial data and regulatory filings in place,
we are also preparing for a new launch of Blenrep.
Jemperli, a PD-1-blocking antibody, is the backbone of our
ongoing immuno-oncology-based research and
development programme. Strong sales at the end of 2024
followed FDA approval expanding the indication to include
all adults with primary advanced or recurrent endometrial
cancer. A robust clinical trial programme includes studies of
Jemperli alone and in combination with other therapies in
gynaecologic, colorectal and lung cancers, as well as where
there are opportunities for transformational outcomes.
Omjjara, a JAK-1, JAK-2 and ACVR1 inhibitor, has grown
strongly largely driven by continued uptake in the US since
its launch in 2023. This was followed by successful 2024
launches in the UK, Germany and Japan. The robust market
response reflects the significant unmet need that Omjjara
can help address. It’s a myelofibrosis therapy that treats
enlarged spleen and constitutional symptoms, like bone
pain and night sweats, but is also specifically indicated for
patients with anaemia, which can be exacerbated by more
established treatments.
In ovarian cancer, Zejula delivered continued double-digit
growth driven by increased patient demand and volume
across all regions, as well as geographical expansion. In
2024 more than 16,000 patients every month were treated
worldwide with Zejula as a maintenance therapy for
advanced ovarian cancer.
HIV
HIV sales were driven by strong demand for long-acting
injectable medicines (Cabenuva, Apretude) and Dovato.
Our long-acting medicines continue to see increased
momentum and are critical to our long-term growth. By the
end of 2024 they represented 20% of total HIV sales
compared to 16% for 2023 and contributed over 50% of the
total HIV growth.
Cabenuva, the world’s first and only complete long-acting
regimen for HIV treatment, is available in the US, Europe,
Japan, China and Australia and continues to be supported
by strong label evolution and data.
Apretude, the world’s first long-acting medicine for HIV
prevention, is approved in 25 countries including the US, UK,
EU, Australia and South Africa, and is critical to ending the
global epidemic.
Sales of oral two-drug regimen (Dovato, Juluca) now
represent 42% of the total HIV portfolio. and Dovato
continues to be the largest product. It is a dolutegravir-
based oral two-drug regimen, approved in the US, Europe,
Japan, Australia, and other countries worldwide. Sales of
Tivicay and Triumeq fell during the year.
Our strategy for growth is centred on our innovative
portfolio of medicines that are transforming HIV treatment
and prevention while delivering on individual needs.
See Group financial review on page 82 for more detail
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Performance: Specialty Medicines continued
36
Our vaccines portfolio targets
infectious diseases at every stage
of life, helping to protect people
from RSV, meningitis, shingles,
hepatitis and many more.
Sales impacted by short-term headwinds,
strong growth outside the US
Established vaccines continued to grow
across International and the US
Meningitis vaccines had their strongest year
of sales to date with double-digit growth
across all regions
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Vaccines
37
Image: Meningococcal serogroups (ABCWY) meningitis bacteria
Our Menveo vaccine helps protect against invasive
meningococcal disease caused by Neisseria meningitis
serogroups A, C, Y and W and is available in over 60 countries.
Key products
Product
Disease
Total revenue
AER
CER
Key information
Shingrix
Herpes zoster (shingles)
£3.4bn
-2%
1%
Market-leading recombinant, adjuvanted vaccine
indicated for the prevention of shingles in adults.
Launched in 52 markets
Bexsero
Meningitis
group B
£1.0bn
19%
23%
Approved in 55 countries for the prevention of
invasive meningococcal disease (IMD) caused by
Neisseria meningitis serogroup B
Menveo
Meningitis
group A, C, W and Y
£387m
2%
5%
Menveo helps protect against IMD caused by
Neisseria meningitidis serogroups A, C, Y and W and
is available in more than 60 countries
Arexvy
RSV
£590m
-52%
-51%
Market-leading RSV vaccine in the US for older
adults, approved in more than 50 countries
Fluarix, FluLaval
Seasonal influenza
£408m
-19%
-16%
Trivalent vaccine available in the US, with other
markets transitioning from quadrivalent to trivalent
by 2027
Engerix, Twinrix, Havrix
Hepatitis
£692m
13%
17%
Growing hepatitis portfolio leadership through
increased coverage and strengthened
recommendations. Engerix adult is available in 91
countries, Twinrix adult in 51 countries, and Havrix
adult in 86 countries
Boostrix
Diphtheria, tetanus,
acellular pertussis
booster
£681m
11%
14%
Available in 77 countries and market leader in the US
Rotarix
Rotavirus
£587m
-4%
-1%
Paediatric vaccine available in over 100 countries
and on 96 national immunisation programmes
Infanrix, Pediarix
Diphtheria,
tetanus, pertussis, polio,
hepatitis B, haemophilus
influenza type B
£512m
-8%
-5%
Infanrix is available in 170 countries. Pediarix is
available in the US
Synflorix
Invasive disease,
pneumonia, acute otitis
media
£226m
-18%
-15%
Synflorix, available in 91 countries, including WHO
pre-qualification
Priorix, Priorix
Tetra, Varilrix
Measles, mumps, rubella
and chickenpox
£323m
22%
26%
Priorix continues to gain share in the US. Priorix is
available in 70 countries, Varilrix in 54 countries, and
Priorix Tetra in 5 countries
Cervarix
Human papilloma virus
£72m
-40%
-38%
An important option against HPV. Cervarix two-dose
schedule for girls aged 9-14 launched in China in
2023
Our portfolio of more than 20 marketed vaccines is one of
the broadest in the industry. Vaccines sales were £9.1 billion,
down 7% AER and 4% CER. This reflected the challenges
we’ve seen from external pressures in the US and China for
Arexvy and Shingrix. We expect these to continue in 2025,
but remain confident that Arexvy, Shingrix and our vaccines
pipeline will contribute meaningfully in the medium and long
term.
Our focus is on strong execution in key markets with our
existing portfolio, and on delivering the value of our pipeline
with new launches so we can bring our vaccines to as many
people as possible. Preventing seasonal viral and high-risk
bacterial diseases remains a key focus for us. This is
becoming even more important as populations age. From
the age of around 50, our immune system starts to decline,
leading to increased risk from infectious diseases. Our adult
vaccination portfolio is critical to helping older adults
remain active, healthy participants in society.
Our discovery, development and supply of vaccines at scale
are built on a long-term commitment to building trust
through transparency; and ensuring the quality and safety
of our products.
Vaccines are complex and highly technical to develop and
manufacture. Our established platform technologies,
adjuvanted vaccines and the new platforms we're building,
including mRNA technologies and MAPS technology, are
core to our continued growth in vaccines. They enable us to
tackle the most challenging diseases at every stage of life
including influenza and pneumococcal disease.
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Performance: Vaccines continued
38
Drivers of growth across the portfolio
Arexvy
Sales of Arexvy declined in 2024. US sales decreased due to
lower demand partly related to a more limited
recommendation from the Advisory Committee on
Immunization Practices (ACIP) for individuals aged 60 to 74.
Despite lower sales in the US, Arexvy maintained a market-
leading position. More than ten million of the 83 million US
adults aged 60 and older at risk have been vaccinated with
Arexvy. Data on safety, immunogenicity and duration of
protection reinforce the strong and durable defence this
uniquely adjuvanted vaccine offers against RSV. Through
expanded indications in the US, EU, and other countries and
geographic expansion, Arexvy continues to support our
market leadership ambition with multi-billion-pound sales
potential and we believe we’re well positioned for growth
over the medium and longer term. This is a result of Arexvy’s
differentiated profile, our partnering retailers, established
expertise in the older adult population and ability to co-
administer Arexvy with other important adult vaccines such
as Shingrix and seasonal flu.
Arexvy is approved in over 50 markets globally, 17 countries
have national RSV vaccination recommendations for older
adults and six, including the US, have reimbursement
programmes. With further approvals expected in 2025-26,
as well as appropriate recommendations from public health
authorities, Arexvy has the potential to relieve pressure on
healthcare systems and help prevent the severe
consequences of RSV globally.
Shingrix
Shingrix grew significantly in International in the year, driven
by a national immunisation programme in Australia and
supply to our co-promotion partner in China, but declined in
the final quarter reflecting lower sales in China.
Nearly 87 million people are already protected with at least
one dose of Shingrix and our ambition is to vaccinate more
than 100 million people by 2026. In the US, 40% of the 120
million adults recommended to receive Shingrix have been
vaccinated. Shingrix is now available in 52 countries.
A number of factors drove growth outside the US, including
the launch of the national immunisation programme in
Australia and expanded European public funding. We
supply China through our exclusive agreement with
Chongqing Zhifei Biological Products, Ltd. to distribute and
promote Shingrix through its network of over 30,000
vaccination points. In 2024, we revised and extended our
strategic collaboration with Zhifei, to bring innovative
vaccines to more than 500 million people in China. We
continue to see large opportunities for growth across the
top 10 markets outside the US where the average
immunisation rate is around 7%.
Bexsero and Menveo
Meningitis vaccines achieved double-digit growth with
Bexsero (meningitis B) achieving sales of over £1 billion for
the first time. Bexsero continues to grow strongly due to
factors including a recommendation in Germany and
increased demand from Australian immunisation
programmes. Menveo (meningitis ACWY) grew due to
favourable delivery timing in International markets and US
CDC purchasing patterns. We’re now planning for our
pentavalent MenABCWY vaccine candidate that combines
these established vaccines. To improve our competitiveness,
we’ll look to drive future growth with multiple lifecycle
innovations in the coming years, including launching
Menveo in a convenient liquid formulation in additional
countries.
Established vaccines
Our established vaccines portfolio remains key. This
portfolio includes vaccines that protect against hepatitis,
rotavirus and measles – it represents a third of our total
vaccines business. Established vaccines continued to grow
as we sought to maximise uptake among those who need
them. This is achieved through prioritising specific segments
for growth, such as strengthened recommendations for
hepatitis in adults, and increasing awareness of the
importance of vaccination.
See Group financial review on page 82 for more detail
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Performance: Vaccines continued
39
Our broad portfolio of general
medicines, from inhalers for asthma
and COPD to antibiotics, improve
life for millions of people around the
world. Many are market leaders.
General medicines contributed one third of
Group turnover
Strong performance driven by both
respiratory and other general medicines
Trelegy remains number one brand in COPD
and asthma globally
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General
Medicines
40
Image: Streptococcus pneumonia bacteria
Since launching more than 40 years ago, Augmentin is a
global leader in oral antibiotics by sales value, helping to
treat common infections including pneumonia.
Key marketed products
Product
Disease
Total revenue
AER
CER
Key information
Trelegy Ellipta
Asthma, COPD
£2.7bn
23%
27%
Top-selling brand in asthma and COPD globally and
most prescribed single inhaler triple therapy (SITT)
worldwide. Available in 60 countries for COPD, with
dual indications for asthma and COPD in 22
countries
Relvar/Breo Ellipta
Asthma, COPD
£1.1bn
-3%
1%
One of the leading ICS/LABA1 treatments worldwide
by sales value, available in 69 countries
Seretide/Advair
Asthma, COPD
£1.1bn
-7%
-3%
One of the leading ICS/LABA1 treatments worldwide
by sales value, available in over 100 countries
Ventolin
Asthma, COPD
£702m
-6%
-3%
Global market-leading SABA2 reliever by sales value,
available in over 100 countries
Anoro Ellipta
COPD
£572m
3%
6%
Global market leader in the LAMA/LABA3 class by
value and volume (unit sales), approved in over 70
countries
Augmentin
Common bacterial
infections
£635m
1%
7%
Global leader in oral antibiotics by sales value,
available in over 100 countries
Avodart & Duodart
Benign prostatic
hyperplasia (BPH)
£336m
-3%
3%
Market leaders by sales value and volume in the
global dutasteride and dutasteride+tamsulosin FDC4
market respectively, and approved in over 85 and 80
countries respectively
Avamys
Allergic rhinitis
£252m
-16%
-11%
Global leader in the intranasal corticosteroids
prescription class by sales value and volume,
available in over 80 countries
Dermovate, Betnovate,
Cutivate, Eumovate
Inflammatory skin
conditions
£207m
6%
11%
Dermovate is the global leader in the topical
corticosteroids market by value and volume sales
and available across around 75 markets globally,
excluding the US
(1) ICS/LABA: inhaled corticosteroid/long-acting beta agonists
(2) SABA: short-acting beta agonist
(3) LABA/LAMA: long-acting beta agonists/long-acting muscarinic antagonists
(4) FDC: fixed-dose combination
Key information source IQVIA
Every day, our broad portfolio of General Medicines
products, many of them market leaders, make life better for
millions of people all over the world. Over the next decade,
our ambition is for these products to have a positive impact
on the lives of hundreds of millions of patients.
General Medicines sales were £10.4 billion, up 2% AER, 6%
CER. Sales growth was primarily driven by Trelegy. For other
general medicines, growth in antibiotics and dermatology in
International markets was offset by global declines from
continued generic competition across the portfolio.
The portfolio includes medicines typically prescribed in
primary care. We supply them in more than 100 countries,
and they represent over 92% of our total medicines and
vaccines supply volume. In 2024, General Medicines
contributed one third of our sales, helping to fund growth
and investment in R&D and returns to shareholders.
Respiratory and infectious diseases therapeutics make up
77% of our General Medicines revenue, and we expect our
asthma and COPD medicines Trelegy and Anoro to grow
further, alongside continued growth for select established
products in emerging markets.
To maximise returns, we prioritise investment in brands that
are growing strongly, while managing the expected decline
of other products in mature markets as they lose their patent
exclusivity. We use our deep expertise in respiratory and
infectious diseases to support the launch of new medicines.
Those currently in development include our low-carbon
Ventolin inhaler (see below) and novel infectious disease
medicines (gepotidacin and tebipenem).
Read more in R&D on page 27
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Performance: General Medicines continued
41
Drivers of growth
Our main growth drivers in General Medicines in 2024 were
Trelegy, Anoro and Augmentin.
Trelegy
In 2024, Trelegy, our single inhaler triple therapy (SITT) for
asthma and COPD, continued to grow globally. It’s licensed
in 60 countries for COPD, with dual indications for asthma
and COPD in 22 countries, including the US and Japan. We
received new approvals in 2024, extending Trelegy’s
availability to asthma patients in Saudi Arabia and
Indonesia.
Trelegy is the number one SITT globally, selling over 37
million packs – more than twice the volume of the nearest
competitor. In 2024, Trelegy reinforced its position as the
top-selling brand in asthma and COPD globally, supported
by its leading position in the two largest markets, the US and
Japan, and by the SITT class’s positive positioning in COPD
scientific evidence and global guidelines.
The 2023 Global Initiative for Chronic Obstructive Lung
Disease (GOLD) guidelines recommended triple therapy
over ICS/LABA for exacerbating patients. This has helped to
continue the strengthening of the SITT market which, seven
years after first launch, is still growing at over 30% year on
year.
Increasing scientific evidence and new biological
therapeutic options in COPD are now reinforcing the
opportunity for more ambitious goals for COPD
management for HCPs and patients. We expect a market
shift towards optimising treatments, favouring growth for
the SITT class, as the combination of ICS, LABA and LAMA
is the backbone for add-on biologic treatments.
We expect Trelegy to be a key driver of growth in General
Medicines in the coming years.
Anoro
Anoro is approved in approximately 70 countries to treat
symptomatic COPD. It remains the global market leader in
the LAMA/LABA class by volume (unit sales), with global
sales (excluding US) continuing to grow. Anoro’s strong
clinical data profile includes head-to-head data in the
LAMA/LABA class and versus other common initial
maintenance therapy options, such as LAMA.
Ventolin
Ventolin remains an important medicine for approximately
35 million patients in more than 100 countries, some 55
years after it launched. Our Ventolin metered dose inhalers
(MDIs) represent a significant proportion of our carbon
emissions. In 2024, we began phase III clinical trials of our
R&D programme to redevelop Ventolin MDIs by
transitioning to a lower-carbon propellant; this could reduce
greenhouse gas emissions from our Ventolin inhalers by
approximately 90%.
Augmentin
Since launching more than 40 years ago, Augmentin – a
global leader in oral antibiotics – has reached over 2.73
billion people and demand continues to be strong across all
regions. Augmentin, which is available in over 100 countries,
is categorised by the World Health Organization as an
AWaRE Access antibiotic. Access antibiotics are
recommended as first or second choice treatments for
common infections because of factors like their lower
potential for antimicrobial resistance.
See Group financial review on page 82 for more detail
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Performance: General Medicines continued
42
Our global supply chain is critical
to manufacturing and supplying
reliable, high-quality medicines
and vaccines to meet patients’
needs and drive our performance.
In 2024 we saw the first full year of our integrated
network of medicines and vaccines manufacturing
sites. This is part of our strategy to build an ever-
more competitive and resilient global supply chain.
By bringing together our teams and expertise in
medicines and vaccines, we’ve increased efficiency
and helped make sure we have the capacity and
capabilities, especially in areas like digital and
technology, to deliver our new products.
This network of 37 medicines and vaccines
manufacturing sites delivered 1.7 billion packs of
medicines and 409 million vaccine doses in 2024
to help make a positive impact on the health of
millions of people.
Our focus on productivity and efficiency contributed
to an improvement in gross profit margin in 2024.
Accelerating innovation
Our global supply chain is not just core to our
operations; it’s vital for innovation too.
Our global supply chain teams are part of how we
prevent and change the course of disease, bringing
our innovations to patients as quickly, efficiently and
effectively as possible. They’re involved early in product
and process development, working with R&D to make
sure that what works in clinical trials can be scaled up
to commercial production.
These teams support the lifecycle management of
recently launched assets to secure supply and enable
growth. In 2024, this included, for example, increasing
capacity to meet demand and future growth for
Ojjaara/Omjjara, our medicine for myelofibrosis in
patients with anaemia, following expanded approval
in the EU, the UK and Japan.
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Manufacturing
and supply
43
Image: HIV virus
Smart manufacturing, including use of digital twins,
is helping us to scale up manufacturing and launch
plans – including for our HIV pipeline.
They also support the development of second-generation
products. For example, we’re bringing on additional
capacity to deliver Menveo liquid to more patients around
the world following regulatory approvals in Argentina and
the European Union. Menveo liquid is a new single-vial, fully
liquid presentation of our Menveo meningococcal vaccine.
We’ve also started to prepare for the production of Shingrix
fully liquid, a new presentation of our shingles vaccine that,
if approved, would offer a convenient option for
pharmacists, physicians and other healthcare professionals
who administer vaccinations.
Also, the supply chain teams are preparing for the new
assets that we’re expecting to register and launch in the
coming years, for example Blenrep (multiple myeloma),
gepotidacin (uncomplicated urinary tract infections),
camlipixant (refractory chronic cough) and bepirovirsen
(chronic hepatitis B).
To advance the discovery and development of best-in-class
medicines and vaccines, we’re investing and partnering in
a range of platform technologies, including antibody drug
conjugates (ADCs), oligonucleotides, mRNA and MAPS
technology. As manufacturing platform technologies
become more complex, the need for collaboration between
R&D and manufacturing increases. Bringing R&D and
manufacturing together at the same locations helps us
make a seamless transition from process development to
clinical trials production to commercial production. This co-
location is already happening at our sites in Upper Merion in
the US, Ware in the UK, Wavre in Belgium and Jurong in
Singapore.
Investing for the future
We continue to invest in reshaping, simplifying and
strengthening our network.
As part of an investment of up to $800 million at our
Marietta site in Pennsylvania, our largest US manufacturing
investment to date, we’re bringing R&D and manufacturing
together in one location. The new R&D and commercial
facilities will double the size and capacity of the site.
The new multi-purpose facility will be capable of
manufacturing sterile liquid medicines and vaccines for
which there is ever-increasing demand. This facility will also
house a state-of-the-art R&D pilot plant to manufacture
medicines for clinical trials. Also, we’ll establish a new
vaccines drug substance facility at the site, dedicated to
manufacturing products based on our novel MAPS
technology, subsequent to future regulatory submissions
and approvals.
The new multi-purpose facility at the Marietta site will
incorporate the latest technologies for solar panels, electric
heat generation, and water and energy reclamation. Both
facilities will feature smart utility and electrical system
monitoring and controls, digital twins for continuous process
optimisation, robotics for material handling, and predictive
maintenance and digital scheduling enabled by artificial
intelligence.
These investments in innovative technologies and platforms
demonstrate our commitment to advancing science,
technology and sustainability.
To support the delivery of our innovative portfolio and
pipeline, we’re also investing up to £128 million to expand
sterile manufacturing capacity at our Barnard Castle facility
in the UK. This investment will expand manufacturing of our
newest, next-generation specialty medicines at the site,
underpinning our commitment to cutting-edge
pharmaceutical manufacturing in the UK. As part of the
modernisation of our Barnard Castle site, we are also
proposing to transfer production of some older products
from the dermatology portfolio to external manufacturing
partners.
In the UK, we also confirmed that in 2025 we will close our
cephalosporin antibiotics manufacturing operations – our
site at Ulverston and a facility in Barnard Castle. This follows
our 2021 announcement, when we said that, in the absence
of alternatives, we would close these operations following
the completion of our contract manufacturing agreement
with Sandoz.
Harnessing technology
Technology is transforming how we manufacture medicines
and vaccines, enabling us to increase the speed, quality and
scale of product supply.
Technology helps us optimise efficiency and effectiveness
across our operations. We’re reducing cycle time and cost in
the Chemistry, Manufacturing and Controls (CMC)
development process, the manufacturing and quality
processes as well as the end-to-end supply chain and
distribution processes.
We’re using data to help us monitor production in real time,
spot ways to increase yields and predict when equipment
needs maintenance.
We’re using smart manufacturing technologies for greater
efficiency, productivity, sustainability and cost savings.
Smart manufacturing is not about replacing people with
technology, it’s about enabling us to work smarter and more
efficiently. We can augment our human creativity, expertise
and problem solving with data and AI, increasing our
impact and delivering better and faster for patients.
For example, we have introduced an AI tool to quickly
determine the best transportation route to deliver our
medicines and vaccines to patients. The tool does this by
analysing vast amounts of data, including stock availability,
cost, carbon emissions and batch details such as readiness
to ship at a given time. As a result, we can save costs,
reduce carbon emissions and make sure stock reaches its
destination on time for patients.
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Operations: Manufacturing and supply continued
44
Across our supply chain we’re using 54 digital twin models
on 12 products to digitally simulate the process, anticipate
failures and accelerate manufacturing. For Shingrix, using a
digital twin helped us optimise the lyophilisation (freeze-
drying) step and unlock capacity to produce an extra 1
million doses to protect more people from shingles. Digital
twins are also helping us deliver right first-time technology
transfer to scale up manufacturing and launch plans for our
HIV pipeline, including cabotegravir.
Automation and robotics also help to improve ergonomics,
increase efficiency and deliver more medicines and
vaccines around the world, on time every time. At Upper
Merion in the US, a digitised scheduling system alone has
created 10% extra capacity by removing bottlenecks in
operations, while other technology has improved safety,
reduced deviations and human error, and improved yields.
We’ve also gained external recognition. Our Wavre vaccine
formulation unit in Belgium received the ‘Factory of the
Future’ label from a group of Belgian and European
agencies dedicated to digital and pharmaceutical
industries. This label recognised our continuous investment
in digitisation, talent development, smart processes,
sustainable products and world-class production.
Building sustainability
In 2024 we activated a 56-acre solar farm and two wind
turbines at our antibiotics manufacturing site at Irvine in the
UK. The new infrastructure will generate over half of the
facility’s electricity, effectively tripling its on-site renewable
electricity generation.
We also opened a €50 million vaccines logistics hub at
Gembloux in Belgium, which will run on 100% renewable
power and be self-sufficient by 2025, thanks to solar panels
covering its roof. The 40,000 square-metre facility, our
largest warehouse worldwide, exports 1 million doses of
vaccines a day and stores millions more destined for more
than 160 countries.
Our low-carbon Ventolin inhaler for asthma and COPD,
currently in phase III trials, has the potential to cut the
product’s carbon emissions by approximately 90%, through
new propellant technology. We confirmed plans to invest in
our site at Evreux in France to manufacture the inhaler, so
that we’re ready to start supply, should clinical trials and
regulatory processes be successful. The first of three filling
lines is already installed and operational.
For more on our approach to sustainability and progress made
at our sites, see our Responsible Business Performance Report
Promoting responsible manufacturing
We’re also committed to responsible manufacturing. Our
Worthing antibiotics site became the first in the UK to
achieve BSI AMR Kitemark certification. This gives
independent assurance that the antibiotics manufacturing
process at Worthing meets rigorous international standards
and is part of our broader efforts to address antimicrobial
resistance (AMR) and support global health.
Our goal is for all our global antibiotics manufacturing sites
to be certified in the coming years, demonstrating our
commitment to responsible manufacturing and getting
ahead of AMR.
Delivering quality, safety and reliability
To meet patients’ needs and keep ourselves competitive,
quality, safety and reliable supply are essential.
Our reliability remains strong, with an on-time, in-full (OTIF)
measure of 99%, putting us in the top quartile against the
industry benchmark1.
In 2024, we had 104 regulatory inspections at our
manufacturing sites and local operating companies,
compared with 114 in 2023. We received zero warning letters
from the US FDA, one critical finding from the MHRA and no
critical findings from the European Medicines Agency (EMA)
in 2024.
Read more about product governance on page 56
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(1) Analysis for GSK conducted by McKinsey & Company’s POBOS benchmark
Responsible business
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46
A scientist working in the tuberculosis
biology lab at our global health
research and development site in
Tres Cantos, Spain.
Our approach
Being a responsible business is an integral part of our
strategy and culture. Our Trust priority supports our business
performance and long-term growth. It helps us build trust
with our stakeholders, reduce risk, supports our people to
thrive and to deliver health impact at scale.
Six focus areas help us to address what is most material to
our business and most important to our stakeholders.
They are:
– Access to healthcare
– Global health and health security
– Environment
– Inclusion and diversity
– Ethical standards
– Product governance
These focus areas are core to our strategy, help support
long-term business success and are where we can have the
greatest positive impact on some of society’s most urgent
challenges.
Being responsive to the environment in which we operate and
the changing expectations of our key stakeholders is critical
to building trust. With that in mind, we continue to review and
evolve the actions we are taking in all of our six areas.
Specifically for inclusion and diversity, we are presently
working to understand and evaluate the impact of the legal
environment. We are progressing this work and reviewing
activities, with the following principles in mind:
– Firstly, as ever, we will always comply with the law and be
respectful of the environment in which we operate.
– Secondly, we remain fully committed to equal
employment opportunity, non-discrimination, and merit-
based decision-making in the way we recruit, manage
and develop our people.
– And thirdly, we continue to believe that an inclusive
culture, with different perspectives and experiences, helps
drive superior business performance and deliver better
health outcomes for patients.
We periodically undertake materiality assessments to assess
key issues (see our 2022 assessment on gsk.com). In 2024, we
undertook a double materiality assessment in preparation for
the new reporting requirements under the EU's Corporate
Sustainability Reporting Directive, which will inform our
reporting for the financial year 2025, published in 2026.
Our Responsible Business Performance Rating
Our Responsible Business Performance Rating measures the
progress we are making on delivering against our Trust
priority. The rating is one of our corporate KPIs and tracks
progress against key metrics aligned to each of our six focus
areas. We continue to evolve our Performance Rating to
ensure it measures what matters most and meets the
expectations of our stakeholders. We review our metrics
each year, so that they are stretching and achievable and
guide progress towards our long-term goals. The executive
leadership team and the Board, via the Corporate
Responsibility Committee (CRC), review the metrics that
make up this rating each year.
In this report, we set out progress made against inclusion
and diversity (I&D) commitments previously set for 2024,
and which are reflected in our overall Responsible Business
Performance Rating for the year. In 2024, we measured
progress towards our previously stated 2025 aspirations (set
out on page 54). In 2024, we largely met1 the leadership
aspirations. Going forward, we will make changes in several
areas related to inclusion and diversity to ensure continued
compliance with the law and being respectful of our
operating environment, including no longer setting
aspirational targets for our leadership and supplier
programmes.
How we assess performance
The GSK Leadership Team (GLT) is accountable for
delivering progress against the metrics and regularly reviews
performance along with the CRC.
See page 137
Each individual metric is assessed as either: on track (the
metric has been met or exceeded); on track with work to do
(at least 80% of the metric has been achieved); or off track
(metric has been missed by more than 20%). To calculate
the overall Performance Rating, we aggregate performance
across all metrics into a single score. This score shows
whether we are on track, on track with work to do, or off
track. This rating is defined below:
On track: 70% or more of all metrics are on track
On track with work to do: more than 50% of all metrics
are either on track, or on track with work to do
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47
(1) We have met our previously set overarching ethnicity and gender
aspirations but not all individual components
(2) The 2024 data which underlies the Responsible Business Performance
Rating has been subject to limited assurance by Deloitte. This
assurance scope excludes the overall Performance Rating score and
the targets that contribute to it. For full details of progress against our
six focus areas, our Responsible Business Performance Rating and 22
metrics and independent limited assurance reports, see our
Responsible Business Performance Report
2024 Responsible Business
Performance Rating2
Our 2024 Responsible Business Performance Rating is
on track, based on 91% of all performance metrics
being met or exceeded.
Since we introduced the metric in 2022, we’ve
maintained on-track performance against our
performance rating each year. Where we have work to
do, we have plans in place and monitor our progress.
External benchmarking (as at February 2025)
Investors frequently ask us about our performance in key
ratings including:
–Access to Medicines: 2nd in the Access to Medicines
Index, among 20 of the world’s largest pharmaceutical
companies
–S&P Corporate Sustainability Assessment: 78 and
included in the DJSI World and Europe indices
–FTSE4Good: Member of FTSE4Good Index since 2004
– CDP: A in Climate change, A in Water security,
B in Forests
– Sustainalytics: Low risk rating
– MSCI: AA rating
– Moody's Analytics: ESG Overall Score of 62
(out of 100, sector average 38)
– ISS Corporate Rating: B+ rating
Access
Our aim is to positively impact the health of 2.5 billion
people by the end of 2030 by making our medicines and
vaccines available as widely as possible. We will do this
through responsible pricing, strategic access programmes
and partnerships.
Our commitment
Make our products available at value-based prices that
are sustainable for our business and implement access
strategies that increase the use of our medicines and
vaccines to treat and protect underserved people.
Our Responsible Business Performance Rating metric 2024
– Progress towards our 2030 goal of reaching 1.3 billion
people in lower income countries with our products
Progress in 2024
By making our medicines and vaccines available at prices
that are both accessible to our patients and sustainable for
our business, we are able to grow our business and secure a
return to invest in future R&D. As well as through responsible
pricing, we expand our reach through strategic access and
partnerships to make our medicines and vaccines more
widely available in lower income countries.
Measuring our progress on access and impact on
health at scale
In 2021, we set the ambition to positively impact the health
of 2.5 billion people over ten years. This includes 1.2 billion
people in high and upper-middle countries and 1.3 billion in
low and lower-middle income countries. We believe that we
are on track to achieve our ambition. Our estimated patient
reach figure from 2021 to the end of 20241 is at least two
billion people, of which 1.5 billion are in low and lower-
middle income countries.
Although we have exceeded our original estimate in low
and lower-middle income countries, we don’t expect
progress towards our ambition to be linear. Reaching
individuals becomes increasingly challenging the nearer we
are to our goal as we don’t recount those we’ve already
reached, and those not yet reached may be harder to
access. We are also working with our partners to help
eradicate diseases like lymphatic filariasis so expect the
number of patients reached by this programme to naturally
decline. Estimating patient reach and measuring health
impact is a complex and emerging area and we recognise
the importance of transparency and industry collaboration
to advance in this area. We report more detail on our
methodology in our Responsible Business Performance
Report.
Evidence-based pricing that recognises benefits
We set responsible prices in line with the benefits we bring
to patients and health systems, measured by clinical,
economic and social outcomes. We compare our offer to
what is already available for patients and we generate
evidence from clinical trials to establish the added value
provided by our medicines and vaccines.
We aim to create stability and predictability for payers and
our business while focusing on access to our medicines to
improve patient outcomes, engaging proactively on
upcoming product launches for budget planning, and
adjusting prices to account for inflation. In the US in 2024,
our combined average net price (after discounts, rebates or
other allowances) for our pharmaceutical and vaccines
portfolio increased by 5.2%, due to product mix and gross to
net pricing favourability, while the average list price
increased by 1.5%, compared with 2.3% (list) for the industry.
Over the past five years, the average net price for our
products increased 2.3% annually, while the average list
price rose by 3.1%, compared with 4.2% (list) for the industry.
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(1) Excluding patient reach for albendazole donations in 2024 as the
data is not yet available
Access strategies focused on lower income countries
Vaccines
We reserve our lowest vaccine prices for Gavi, the Vaccine
Alliance, and similar organisations. These commitments
enable us to deliver manufacturing efficiencies, which help
us to maintain lower prices for lower-income countries. We
have partnered with Gavi, which is a public-private
partnership, since its foundation in 2000 and have supplied
more than one billion vaccine doses to date.
Through our partnership with Gavi, in 2024 we delivered
around 6 million doses of Cervarix, supplied around 45
million doses of our pneumococcal vaccine, Synflorix, and 43
million doses of Rotarix.
We are a long-standing supplier of oral polio vaccines
through UNICEF. In 2024, we supplied around 131 million
doses to help eradicate the disease.
Malaria
Following the end of the WHO-coordinated Malaria
Vaccine Implementation Programme, we continue to
support the onward roll-out of RTS,S/AS01 in endemic
countries. From 2019 to 2023, over two million children in
Ghana, Kenya and Malawi received at least one dose of the
vaccine, which was developed by GSK and our partners.
WHO evaluations of the pilot showed high public health
impact due to reduction in mortality and hospitalisation
rates.
We’re also rolling out doses of RTS,S/AS01 to nine African
countries, as part of our commitment to supply 18 million
doses to Gavi-eligible countries between 2023 and 2025.
We plan to produce 15 million doses of RTS,S/AS01 annually
from 2026-2028.
In 2024, Brazil and Thailand became the first malaria-
endemic countries to introduce new single-dose radical cure
medicines to prevent the relapse of Plasmodium vivax (P.
vivax) malaria. Tafenoquine targets the liver-stage of P.
vivax malaria and, when used in combination with
chloroquine for the blood-stage infection, is effective in
preventing malaria relapses. Approvals for tafenoquine have
been granted in 11 countries, including the US, and the drug
is undergoing marketing authorisation evaluation in a
number of other countries where P. vivax is endemic.
In December, the 150mg tablet formulation of tafenoquine
received WHO Pre-qualification. We anticipate that up to
ten additional countries could introduce tafenoquine in
2025-28.
Lymphatic filariasis (LF)
In 2024, we donated 442 million albendazole tablets to help
end these NTDs. This brings the total we have donated to
over 12 billion tablets. The number of tablets we are
donating is declining each year, given the gradual
eradication of the NTDs that the medicine is targeting. The
programme has benefited over 935 million people since it
began, according to WHO data. We remain committed to
supplying albendazole to endemic countries until LF is
eliminated everywhere.
HIV
By the end of 2024, CAB LA for PrEP had been supplied at a
non-profit price in a total of 11 low and middle income
countries. We have also committed to tripling our annual
supply of CAB LA for PrEP for programmatic use, making at
least two million doses available in 2025-26 to meet
growing demand where HIV burden and unmet need are
greatest. In addition, ViiV has prioritised countries for
registration of CAB LA for PrEP based on high HIV burden
and PrEP readiness.
Following the signing of voluntary licences for CAB LA for
PrEP with three generic manufacturers, via the Medicines
Patent Pool (MPP), ViiV is engaging with these companies
to expedite generic development and access. ViiV also has
voluntary licensing agreements with 15 generic
manufacturers to produce and sell low-cost single or fixed-
dose combination products containing our HIV medicine
dolutegravir for adults, with one direct licence and the
others via the Medicines Patent Pool (MPP).
There are similar agreements with 14 generic manufacturers
for paediatric dolutegravir, as well as separate agreements
to drive access to dolutegravir in certain upper-middle
income countries.
Over the 10 years of partnership between ViiV, the MPP, and
generic manufacturers, more than one billion packs of
generic dolutegravir-based medicines have been supplied.
By the end of 2024, more than 23 million people across 129
countries had access to a generic dolutegravir-containing
product.
Generic paediatric formulations of dolutegravir are now
available in more than 100 countries, increasing access to
age-appropriate treatment options for children living with
HIV where the burden of need is highest. This was
accelerated by a public-private partnership between ViiV,
the Clinton Health Access Initiative, Unitaid and generic
manufacturers with sublicences from the MPP.
For full details of our progress in our six focus areas, please see our
Responsible Business Performance Report
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Global health and health security
We are helping to address the biggest health challenges
faced by people around the world.
Our commitment
To develop novel products and technologies to treat and
prevent priority diseases, including pandemic threats.
Our Responsible Business Performance Rating
metrics 2024
– Progress six Global Health pipeline assets to address
priority WHO diseases
– Progress eight active R&D projects that address
pathogens prioritised by WHO and CDC as posing
the highest level of concern due to drug resistance
(critical and/or urgent threats)
Progress in 2024
We have a unique and important role to play in improving
health for patients around the world and helping the world
prepare for future health security challenges. We do this by
developing products and technologies to treat and prevent
priority diseases. We have the largest priority pipeline
among 20 of the world’s largest pharmaceutical
companies1, addressing high-burden diseases identified as
priorities by external global health stakeholders, including
the WHO. This supports our long-term growth by driving
product innovation and helps us attract and retain
outstanding people.
R&D for high-burden diseases in lower income countries
We’re committed to changing the trajectory of high burden
diseases in lower income countries with a focus on
prevention and treatment of infectious diseases, including
those with AMR potential.
In 2022, we announced an investment of £1 billion over 10
years to accelerate global health R&D (together with ViiV
Healthcare). By the end of 2024, we had invested 33% of
this and progressed six Global Health pipeline assets to
address priority WHO diseases. The current Global Health
R&D pipeline consists of more than 25 medicines and
vaccines in development, of which more than one third are
in clinical development.
We are committed to tackling TB, one of the world’s
deadliest infectious diseases. We have developed a
promising candidate vaccine, M72/AS01E, up to proof of
concept (phase IIb).
We have partnered with the Bill and Melinda Gates Medical
Research Institute (Gates MRI). Gates MRI has begun a
phase III trial in seven countries (funded by the Gates
Foundation and the Wellcome Trust), with the first doses
given in South Africa in March 2024. If proven effective, M72
could potentially become the first new TB vaccine that
meets the WHO target product profile for over 100 years.
To date, together with our partners, we’ve brought two
products for the prevention and treatment of malaria to
market – the world’s first vaccine against malaria (see
Access, page 48), and a single-dose, radical cure for P.
vivax malaria, which are both WHO pre-qualified.
Strengthening health security
Getting ahead of antimicrobial resistance
with our innovation
AMR is an urgent threat to public health. We’re developing
new antimicrobials and vaccines to prevent and treat
infectious diseases. Our investment in innovation to respond
to AMR has resulted in one of the largest AMR relevant R&D
pipelines in the industry. We have more than 30 R&D projects
across medicines and vaccines that are relevant to AMR, of
which 12 target pathogens deemed ‘critical’ by WHO and/or
‘urgent’ by the Centers for Disease Control and Prevention,
excluding TB which was added by WHO earlier in 2024.
In 2024, gepotidacin, our investigational, first-in-class oral
antibiotic, with a novel mechanism of action for the
treatment of female adults and adolescents with
uncomplicated urinary tract infections (uUTI), was accepted
for priority review by the US FDA. Gepotidacin is also in
development for uncomplicated urogenital gonorrhoea in
adolescents and adults. We announced positive data from
our phase III EAGLE-1 trial.
We continue to progress candidate vaccines against several
enteric diseases which contribute to the burden of AMR in
lower income countries, including invasive non-typhoidal
salmonella, klebsiella, shigella, typhoid and paratyphoid
fever.
Ensuring sustainable, appropriate use and manufacture
of antibiotics
We continue to run several initiatives to support appropriate
use of antibiotics. We provide education for healthcare
professionals around the world about using and prescribing
antibiotics appropriately, and the importance of surveillance
studies. We’ve maintained our long-running multinational
Survey of Antibiotic Resistance programme and are running
antibiotic surveillance studies to support antimicrobial
assets in late-stage development.
Investing in innovation and partnership to find
and scale solutions to AMR
In 2024, we announced a £45 million pledge to support the
Fleming Initiative, a new global network combining
scientific, technology, clinical, policy and public
engagement expertise to develop new AMR interventions.
The initiative will bring together our infectious disease
expertise with Imperial College London and Imperial
College Healthcare NHS Trust’s clinical and research
capabilities and a global network of experts to find, test,
and scale solutions to AMR.
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(1) 2024 Access to Medicine Index
We have also committed €4.5 million to the Global
Antibiotic Research & Development Partnership (GARDP) to
support sustainable access to antibiotics in lower income
countries. GARDP focuses on developing and providing
access to much-needed antibiotics that are effective
against WHO-priority pathogens, particularly in low and
middle income countries.
Partnering for pandemic preparedness
With outbreaks of Mpox, bird flu and the Marburg virus,
health security remained high on the global agenda during
2024. To help prevent and respond to future health security
emergency, we are working with governments and other
stakeholders to strengthen global preparedness.
In April 2024, we initiated a combined phase I/II study of an
investigational influenza A (H5N1) pre-pandemic vaccine
candidate, evaluating safety, reactogenicity and
immunogenicity in healthy younger and older adults. The
vaccine candidate has been granted Fast Track
designation by the US FDA. This programme reflects GSK’s
commitment to helping authorities with pandemic
preparedness.
For full details of our progress in our six focus areas, please see our
Responsible Business Performance Report
Environment
Climate change and nature loss threaten human health
and pose risks to business resilience. To get ahead of
disease and to help ensure long-term business success,
we need to take action on climate and nature.
Our commitment
Commit to a net zero, nature positive, healthier planet
with ambitious goals set for 2030 and 2045.
Our Responsible Business Performance Rating
metrics 20241
Climate
– Operational emissions reduction (Scope 1 & 2 market-
based emissions)
– Industrialisation of low-carbon Ventolin initiated, and
clinical and non-clinical data available to support
regulatory submissions; in 2024, to complete clinical
studies to enable filing of low carbon Ventolin
– Percentage of carbon credit volume in project pipeline
Freshwater
– Average of the percentage of GSK sites and suppliers
compliant with wastewater active pharmaceutical
ingredient (API) limits and the percentage of sites and
suppliers that are compliant with the AMR Industry
Alliance Common Antibiotic Manufacturing Framework
and discharge limits
Land
– Percentage of paper packaging and palm oil certified
Waste
– Operational waste reduction at our sites
Progress in 2024
Climate change and nature loss are changing the spread
and burden of disease and are an urgent threat to human
health. That’s why we have set ambitious environmental
goals for 2030 and 2045. These goals address our impacts
across our entire value chain, from drug discovery to
disposal of our products. Meeting them will help support our
long-term performance by protecting our supply chains,
help us adapt ahead of anticipated regulation change and
providing potential growth opportunities as demand
increases for medicines and vaccines with a lower
environmental impact.
Climate
We have a clear pathway to a net zero impact on climate
with ambitious targets for 2030 and 2045. These targets are
approved by the Science Based Targets initiative (SBTi) Net
Zero Standard.
Our value chain carbon footprint1 is made up of Scope 1 & 2
emissions from our own operations (7%) and Scope 3
emissions from our supply chain (37%), logistics (3%), from
people using our products (mostly metered-dose inhalers)
(53%) and from the disposal of our products (<1%).
Long-term targets
– 80% absolute reduction in greenhouse gas emissions
from a 2020 baseline, across all scopes, and investment in
nature-based solutions for the remaining 20% of our
footprint by 2030
– Net zero greenhouse gas emissions across our full value
chain by 2045: 90% absolute reduction in emissions from
a 2020 baseline, across all scopes, and all residual
emissions neutralised
– 100% imported renewable electricity by 2025 and 100%
renewable electricity (imported and generated) by 2030
(Scope 2)
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(1) These metrics are related to the Responsible Business Performance Rating
2024. The 2024 information underlying the Responsible Business
Performance Rating is subject to independent limited assurance by
Deloitte. See Responsible Business Performance Report 2024 for more
information. We also measure and report performance against our wider
set of long-term environmental sustainability targets, which we publish on
gsk.com
Progress to date on carbon reduction pathway
– In 2024, we reduced our Scope 1 & 2 carbon emissions by
12% compared with 2023, and by 36% compared with our
2020 baseline.
– Our overall Scope 3 emissions are 10% lower than our
baseline year of 2020, falling by 0.14% in 2023 (our latest
available data) compared with 20221.
Progress in 2024
The reduction in our Scope 1 & 2 carbon emissions in 2024
was primarily driven by energy efficiency measures in our
manufacturing processes, our ongoing transition to
renewable energy and reducing propellant emissions during
the manufacturing of inhalers.
In 2024, we reached 90% imported renewable electricity, 7
percentage points higher than the 83% we used in 2023.
We also have a longer-term target to have 100% of all
electricity imported and from self-generated from
renewable sources by 2030, and in 2024 we achieved 90%.
The goods and services we buy to make our medicines and
vaccines account for approximately 31% of our total carbon
emissions footprint. In 2023 (our latest available data), the
emissions from our supply chain increased by 6%, primarily
driven by an increase in purchased goods and services. As
our supply chain initiatives mature, and we move to activity
based rather than spend based emissions, we expect to see
the effects in reduced upstream Scope 3 emissions. As part
of our Sustainable Procurement Programme, we have
engaged with the top 30 carbon emitting suppliers involved
in the production of our medicines and vaccines. At the end
of 2024, 22 of these suppliers had shared their action plans
with us to achieve carbon reductions by 2030 in line with our
Scope 3 targets. We actively support our highest emitting
suppliers, engage with service providers and continue to
embed sustainability into procurement processes. We’re
also collaborating with our peers to address the shared
challenge posed by supply chain emissions.
The use of our medicines and vaccines makes up 53% of our
total footprint. Most of this is from the propellant used in
metered-dose inhalers for asthma and chronic obstructive
pulmonary disease (COPD).
Millions of people with respiratory conditions worldwide use
our rescue metered dose inhaler (MDI) medication, Ventolin
(salbutamol). We completed the 2024 planned clinical
studies and began phase III trials in 2024 of a low carbon
version containing a next generation propellant which has
the potential to reduce emissions of the inhaler by
approximately 90%. If successful, regulatory submissions will
begin in 2025. This is in addition to dry powder inhaler
alternatives which already exist, are propellant-free, and
have a lower carbon footprint.
Investing in carbon credits
– Target: We plan to secure carbon credits for the 20%
emissions we estimate to have as residual in 2030, and for
a maximum of 10% residual emissions by 2045 (from a
2020 baseline).
At the end of 2024, we had secured 33% of carbon credit
volume we need by 2030 in the project pipeline. We invest in
nature across our value chain and are also prioritising long-
term nature projects for carbon credits. We are currently
contributing to the protection and restoration of over 2
million hectares of land.
Nature
Human health relies on the fundamentals of nature like
clean air and fresh water, and nature loss has a range of
negative impacts on health. Protecting nature helps make
our business more resilient and helps to ensure the ongoing
supply of raw materials needed to manufacture our
medicines and vaccines.
We are part of the first group of companies to be working
with the Science Based Target Network (SBTN) in a pilot to
set validated science-based targets for nature, starting with
freshwater.
We are closely following the evolving policy landscape on
access and benefit sharing related to Digital Sequence
Information from genetic resources. We publish our latest
position on Access and Benefit Sharing of Genetic
Resources and Related Information on gsk.com.
Freshwater
We use water across our operations and supply chain for
the production of our medicines and vaccines.
– Target: Achieve good water stewardship at 100% of our
sites by 2025
In 2024, 100% of our sites continued to achieve good water
stewardship status, in line with the Alliance for Water
Stewardship’s definition.
– Target: Reduce overall water use in our operations by
20% by 2030
We met our overall water reduction target across our
network in 2022. In 2024, we reduced overall water use in
our operations by an additional 5% compared with 2023
This is a decrease of 28% for overall water use from our
2020 baseline.
– Target: Be water neutral in our own operations and at key
suppliers in water-stressed regions by 2030
We used water risk data from the World Resources Institute
(WRI) and the World Wildlife Fund (WWF) to understand
which of our sites are located in water-stressed basins and
therefore face increasing water availability, quality and
access risks. We define water neutrality at these sites using
three criteria: achieving the Alliance for Water Stewardship
Standard certification, reducing water use by 20% and by
replenishing water quantity in the basin equivalent to the
site’s 2030 footprint. We’ve identified five sites in three water-
stressed basins where we have operations across Algeria,
India and Pakistan. We have projects underway to achieve
water neutrality in one of these, the Godavari basin in India.
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(1) Our Scope 3 data is currently based on the latest available 2023
data, however, from 2025 we are aiming to report in-year data
across all scopes
– Target: Achieve zero active API levels1 for all sites and key
suppliers by 2030
In 2024, >99% of all sites and key suppliers had API
discharges below predicted no-effect concentration levels
as defined by the AMR Industry Alliance and API
Wastewater discharge limits compared with 87% in 2023.
This improvement has been driven by successful
engagement with suppliers. 100% of our own sites remained
within AMR Alliance and API Wastewater discharge limits.
Land
Land degradation and conversion can have a range of
negative health impacts. We’ve identified six priority sites in
Belgium, France, Spain, the US and UK based on proximity
to Protected Areas and Key Biodiversity Areas.
– Target: Positive impact on biodiversity2 at all GSK owned
sites by 2030
66% of GSK sites are under biodiversity management plans,
an increase of 45% from 2023. In 2024, we delivered
projects to remove non-native species and restore native
fauna at our Ware, Wavre, Zebulon and Evreux
manufacturing sites, with the aim of achieving a biodiversity
uplift.
– Target: 100% of key3 naturally-derived materials
sustainably sourced and deforestation free by 2030
58% of our total spend on the 12 highest priority materials4 is
covered by an action plan to achieve sustainable sourcing
by 2030. We are committed to 100% paper packaging and
palm oil certified by 2025. In 2024, 93% of our paper
packaging was derived from certified sources or from
recycled raw materials, up from 86% in 2023. 93% of our
core palm oil materials were credible third-party certified5, a
decrease from 98% from 2023. We're also looking at
opportunities to reduce or avoid the use of some natural
materials. For example, an extract from the soapbark tree is
an essential ingredient in vaccine adjuvants. We are
working on a process improvement to deliver a significant
yield increase, reducing our nature impact and improving
supply resilience.
Oceans
Degradation of the world’s oceans, caused by factors such
as climate change, marine pollution and over-fishing,
impacts human health and business resilience.
Target
– 100% of key marine-derived materials to be sustainably
sourced by 2030
The long-term focus for these specific materials is
avoidance of use, through moving to horseshoe crab blood
free alternatives. A horseshoe crab blood-derived material,
Limulus amebocyte lysate (LAL) is required by some
regulators to be used in pharmaceutical quality control
processes to ensure the quality and safety of medicines and
vaccines. We continue to make progress on LAL volume
reductions and transitioning to LAL-free alternatives for new
products, where applicable, and water testing, which
accounts for the majority of our use.
We are engaging with regulators to seek further guidance
on requirements to switch to LAL-free alternative,
particularly for legacy products. In 2024, we became co-
lead of an industry group through the Pharmaceutical
Supply Chain Initiative to accelerate the transition to LAL-
free testing.
Squalene is used as an ingredient in one of our pandemic
vaccine adjuvants. In 2024, we identified and are currently
evaluating potential non-animal alternatives.
Waste
The overuse of natural resources and the generation of
waste and pollution are key drivers of climate change and
nature loss. Using fewer natural resources can reduce the
business risk of material scarcity, while also reducing costs.
– Target: 25% environmental impact reduction for our
products and packaging by 2030
From 2024, all newly developed or acquired medicines will
now have Sustainable Design Plans applied. These use
industry-leading product sustainability methodologies to
include environmental considerations at every step of the
product decision-making process, from product design to
disposal.
– Target: Zero operational waste6 by 2030
In 2024, we reduced operational waste by 5% compared
with 2023, a total of 25% since 2020. The amount of
materials recovered by circular routes increased by 1% from
2023 to 54%. This was driven by a revision to our definition
of circularity to exclude waste streams subject to regulatory
requirements which prevent them from entering circular
routes. We have maintained zero operational waste to
landfill.
– Target: 10% waste reduction from our supply chain by
2030
For our supply chain, we’re working on a waste footprint
assessment to help with supplier engagement on waste
reduction.
For full details of our progress in our six focus areas, please see our
Responsible Business Performance Report
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(1) Below the predicted no-effect concentration level, as defined by the
AMR Alliance and API Wastewater discharge limits
(2) Using the Natural England Biodiversity Net Gain methodology
(3) Definition clarified in 2024 to reflect priority materials
(4) Aluminium, Cellulose (HPMC & MCC), Eggs, Horseshoe Crab Blood,
Lactose, Palm Oil, Paper packaging, Rapeseed Oil, Soap Bark Extract
(QS-21), Soy, Squalene, Sugar (Glucose, Mannitol, Sorbitol, Sucrose)
(5) We consider the principles and criteria determined by the Forest
Stewardship Council (FSC) and the Programme for the Endorsement
of Forest Certification (PEFC) as an appropriate standard for
sustainable forest management
(6) Including a 20% reduction in routine hazardous and non-hazardous
waste. Target updated in 2024 to remove specific reference to the
elimination of operational single-use plastics. This work has been
integrated into the overall operational waste target
Inclusion and diversity
To be a successful business and deliver positive health
impact at scale, we must meet patients’ needs with
research that includes those impacted by the disease under
study, attract and retain the best talent regardless of
background, and support all GSK people to thrive.
In this report, we set out progress made against I&D
commitments previously set for 2024, and which are
reflected in our overall Responsible Business Performance
Rating for the year.
Our Responsible Business Performance Rating
metrics 2024
Representative clinical studies
– 50% of phase III trials completing enrolment in 2024 that
have met our required threshold1 of trial participants,
consistent with disease epidemiology
In 2024, we measured progress towards our previously
stated 2025 aspirations (set out below). In 2024, we largely
met2 the leadership aspirations. Going forward, we will make
changes in several areas related to inclusion and diversity to
ensure continued compliance with the law and being
respectful of our operating environment, including no longer
setting aspirational targets for our leadership and supplier
programmes.
Previous leadership aspirations through fair and equitable
opportunities
– aspire to have women hold at least 45% of VP-and-
above roles globally
– aspire to have at least 30% ethnically diverse leaders in
our roles at VP-and-above in the US, and increase the
percentage of Black or African American, and Hispanic or
Latino(a) VP-and-above leaders year on year
– aspire to have at least 18% ethnically diverse leaders in
our roles at VP-and-above in the UK, and increase the
percentage of Black VP-and-above leaders year on year
Previous supplier programme aspirational targets
– Improve year-on-year spend with US-based certified
diverse-owned suppliers
Progress in 2024
Representative clinical studies
Diseases and medicines can affect people differently
depending on their ethnicity, sex, race and age so we need
to make sure that our clinical trials include those affected by
the disease under study. This supports our business
performance by providing healthcare providers and the
individuals who are prescribed our medicines and vaccines
confidence in the safety and effectiveness of our products.
Since 2022, all our phase III clinical trials have
representation plans in place before commencing
enrolment to reflect the people most impacted by a
particular disease. For example, our respiratory syncytial
virus (RSV) clinical development programme has been
recognised by external experts for the robustness of the
data reflecting the population at risk, hence informing
prescribers and people of the vaccine's potential impact.
Our phase III RSV clinical trials were designed to ensure the
broadest geographic footprint and the broadest population
representing people with underlying health conditions.
Now our focus is on actual enrolment of participants
impacted by the disease under study. 88% of phase III trials
completing enrolment in 2024 met our enrolment thresholds
needed so that trial participants represent the disease
epidemiology under study. This exceeds our 2024 target of
50%.
Building a high-performing, inclusive organisation
Over recent years, we’ve delivered a step-change in
performance and we believe in the power of an inclusive
culture and differing perspectives and experiences to unlock
the full potential of the company. This helps attract and
retain outstanding talent, develop innovative solutions, and
drive better decision-making, supporting long-term
performance and better health outcomes for patients.
We want GSK to be a workplace where our employees can
feel a sense of belonging, be themselves, and have their
different perspectives and characteristics valued, because
this helps everyone perform at their best. We measure
employee sentiment on inclusion as part of our employee
survey, which includes questions on employees feeling
welcome and included, feeling able to be themselves,
valuing different perspectives, and agreeing on ways of
working that enable them to perform at their best. In 2024,
our employee engagement was strong at 81% favourable.
Our ERGs, employee-led communities that are open to all
employees, are key partners to help us build an inclusive
culture. For example, in 2024, we worked in partnership with
our Disability Confidence Network to launch our new Global
Accessibility Inclusion Standard that sets out minimum
expectations to help address accessibility for people living
with disabilities and long-term health conditions.
We are committed to equal employment opportunity, non-
discrimination and merit-based decision-making in the way
we recruit, manage and develop our people. We previously
set leadership aspirations for race and ethnicity in senior
positions in the US and UK and gender aspirations for senior
positions globally. At the end of 2024, we had largely met2
these aspirations.
At the end of 2024, women held 48% of VP-and-above
roles globally, and made up 48% of all employees in 2024,
and 51% of all management roles.
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(1) Defined by meeting ≥70% of each demographic objective described
in the plan based on disease epidemiology.
(2) We have met our previously set overarching ethnicity and gender
aspirations but not all individual components.
In the UK at the end of 2024, 21.8% of our leaders at VP-
and-above were ethnically diverse and we had 3.1% Black
leaders at VP-and-above. In the US, 38.3% of our leaders at
VP-and-above were ethnically diverse. We had 8.4% Black
or African American leaders at VP-and-above and 5.9%
Hispanic or Latino(a) leaders at VP-and-above.
We remain committed to abiding by the laws in all
jurisdictions in which we operate, including anti-
discrimination laws. We make changes as necessary as law
and policy evolves. Going forward, we will make changes in
several areas related to inclusion and diversity to ensure
continued compliance with the law and being respectful of
our operating environment, including no longer setting
aspirational targets for our leadership and supplier
programmes.
Fair and equal pay practices are crucial to create an
environment where people feel welcome, valued, included
and supported to thrive.
We conduct country-based reviews and ensure all markets
have clear guidance, tools and support to ensure pay fairness.
If unexplained differences are detected, we address them
through our compensation processes. Our UK pay gap
reporting is available on gsk.com.
Supplier programme
Over the last year, we have increased our spending with
suppliers owned by people in under-represented groups in
the US and we expanded this programme to the UK.
In 2025, we will no longer set aspirational targets and will
review this programme to ensure continued compliance with
the law and being respectful of our operating environment,
with the aim of continued outreach to a broad range of
suppliers and delivery of business value.
For full details of our progress in our six focus areas, please see our
Responsible Business Performance Report
Ethical standards
We expect all of our people to behave ethically, do the right
thing and Speak Up about any concerns they have. We
expect the same behaviour from our suppliers.
Our commitment
Promote ethical behaviour across our business by
supporting our employees to do the right thing and working
with suppliers that share our standards and operate in a
responsible way.
Our Responsible Business Performance Rating
metrics 2024
– Percentage of employees and complementary workers
complete GSK’s 2024 mandatory training
– Percentage of employees who believe they ‘can and do
Speak Up if things don’t feel right’ is above the general
industry benchmark1
– 80% of direct high-risk suppliers achieve GSK’s minimum
EcoVadis score or have an improvement plan in place
Progress in 2024
How we do things is as important as what we do. This means
that it is important that all our people, and everyone who
works on our behalf, conducts themselves in the right way.
This builds trust in what we do, protects our business and
helps create a workplace where we all thrive. Getting this
wrong is costly to our business in terms of legal and financial
risk as well as undermining trust with key stakeholders. Our
Code of Conduct (The Code) guides our people to do the
right thing and act on any concerns they have.
The Code is supported by specific global policies and
standards and an accompanying global learning
curriculum, which all our people are required to complete. In
2024, 100% of our employees and 99% of complementary
workers completed this training.
We have additional ABAC training for our people in certain
high-risk roles or geographic regions. This helps them
identify and mitigate any potential ABAC risk – especially in
third-party relationships – and recognise, report and
manage conflicts of interest. In 2024, 100% of this subset of
employees and 98% of complementary workers completed
this training. Our approach to managing ABAC risk, and
other risks relating to ethical standards, forms part of our
well-embedded risk management framework, which is
described on page 62.
Reporting and investigating concerns
Anyone inside or outside GSK can raise concerns or speak to
our integrity lines, confidentially and anonymously, without
fear of retaliation. We take every concern seriously and
review every report to see whether we need to investigate
formally. If our investigations show an employee has
breached our policies, we take action in line with our
policies, procedures and local requirements. In 2024, we
continued our focus on enhancing our controls, monitoring
activities and timely case closure. The number of employees
disciplined for policy violations increased from the prior year
primarily due to localised incidents in a few countries with
large workforces. These incidents mainly involved individual
breaches of internal policy and procedures.
Our commitment to human rights
We are committed to respecting internationally recognised
human rights wherever we do business. We are signatories
to the UN Global Compact and our Human Rights Position
Statement lays out our commitment to the UN Guiding
Principles on Business and Human Rights.
In 2024, we updated our salient issues – those areas where
GSK’s potential to impact on human rights is greatest – to
reflect how and where we influence human rights.
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(1) The general industry benchmark is 67% according to research by
KornFerry
Our refreshed salient issues are healthcare access and
affordability, safety of patients and trial participants, working
conditions, environmental health impacts, and artificial
intelligence and data protection. We continue to make
progress in integrating the management of these issues
within our operations and how we conduct our business.
Working with third parties
We expect our third parties to comply with applicable laws
and regulations and to adopt, at minimum, our ABAC and
labour rights principles and, where relevant, to comply with
our standards on quality, patient safety, health and safety,
data and cyber security, and the environment.
In 2024, we assessed our high-risk third parties, totalling
over 12,500 assessments across 17 risk areas. We also use
tools to assess how suppliers manage risks, including
EcoVadis desktop assessments.
We also conducted 41 supplier audits in 2024 following
industry standard Pharmaceutical Supply Chain Initiative
guidelines. We trained almost 1,400 supplier employees on
EHS this year, strengthened EHS contractual obligations
and worked with suppliers to help them improve their
EcoVadis scores. If a third party has a significant EHS
incident, we have a process in place to pause supply, with
the decision on whether to restart or discontinue work with
the third party depending on completion of an improvement
plan and trajectory.
In 2024, we deployed a contractor safety programme
across all GSK operations. This is a management system
using best-known methods to reduce risks associated with
services performed by contractors.
Using data and AI responsibly
We take our responsibility for data ethics and privacy
seriously and we exercise high standards of integrity in
dealing with the personal information of our employees,
patients, clinical research participants, healthcare providers
and other stakeholders.
Our Digital and Privacy Governance Board oversees our
overall data ethics and privacy operating model, supported
by digital and privacy legal experts and compliance
professionals. The board monitors fast-evolving legislation,
regulations, guidance and requirements being published by
global regulators.
Cyber security threats have become more sophisticated and
are increasing with our expanding digital footprint. We deploy
cyber security controls, monitor and mitigate new and
emerging cyber threats to protect GSK from cyber security risks.
In 2024, we continued to embed our cross-functional AI
Governance Council (AIGC) to oversee our AI strategy and to
ensure responsible adoption of AI/ML. We also introduced a
new responsible AI Standard Operating Procedure, which
defines the requirements for all development and/or
procurement of AI systems across GSK, and established a
framework for business functions to integrate AI risk review
and management within existing risk management
compliance boards. Our public policy position on responsible
AI sets out our views, commitments and asks of policymakers.
Political engagement
We are committed to the highest ethical standards and
legislative requirements in all of our political engagements.
We do not make corporate political contributions, nor do we
sponsor party political meetings anywhere around the world.
For full details of our progress in our six focus areas, please see our
Responsible Business Performance Report
Product governance
Our commitment
We commit to maintaining robust quality and safety
processes, and using data and new technologies
responsibly.
Our Responsible Business Performance Rating
metrics 2024
– Average number of critical and major findings per
inspection by FDA/MHRA/EMA regulators1
– Percentage of inspections from all regulators with no
critical findings or official action indicated
– Number of FDA warning letters
– Total number of Class I/II external product recalls across
all markets
– Register and disclose all interventional clinical trials of
GSK products. Specifically, register protocol summaries for
studies initiated in 2024; and disclose results summaries
for studies with results due in 2024
Progress in 2024
To be ambitious for patients, we’re focused on delivering a
high-quality, safe and reliable supply of our products
around the world. This supports our long-term growth. To
ensure we meet the high standards we set ourselves, and
that are expected of us externally, we have rigorous quality
systems in place across the company. These systems make
sure the medicines and vaccines we deliver are safe and
reliable.
When issues arise, our quality systems, in line with our
values-driven culture, help us respond swiftly and
transparently. In these instances, we prioritise patient safety
and work collaboratively to investigate the cause of issues,
focused on science. By way of example, we initiated a
voluntary recall of Zantac products and suspended the
release, distribution and supply of all dose forms of Zantac
in 2019. GSK and the scientific community have undertaken
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(1) We consider any observations from the US FDA as major
extensive tests and investigations into the safety of the
product. The scientific consensus remains that there is no
consistent or reliable evidence that ranitidine increases the
risk of any cancer. For information on the recent Zantac
settlements, see Legal proceedings on page 288.
A focus on quality
Our detailed and specific quality framework describes how
we comply with regulatory requirements and other
standards across our markets.
Our Quality Management System provides the standards
that must be followed by GSK people to support good
distribution and manufacturing practice. It helps us
maintain a standardised and compliant approach to all our
quality activities, aligned to the regulatory expectations of
the markets that we supply to.
Regulatory inspections and recalls
In 2024, we had 104 regulatory inspections at our
manufacturing sites and local operating companies,
compared with 114 in 2023. We received zero warning letters
from the US FDA, one critical finding from the MHRA and no
critical findings from the European Medicines Agency (EMA)
in 2024. We respond to and learn from all inspection
findings, taking the necessary actions to address them.
During 2024, we had two Class I and two Class II product
recalls. We engaged with regulators and responded quickly
to prioritise patient safety. We will not hesitate to recall
products voluntarily if necessary to protect patients.
Clinical data transparency
We are committed to transparency of data from clinical
studies that evaluate our medicines and vaccines, because
we want to enable access to information about our research
to study participants, patients, healthcare providers and the
wider public. It also allows us to acknowledge the invaluable
contribution of the people who take part in our clinical
research.
Clinical trial transparency is an area that is becoming
increasingly regulated globally. Our policy regarding the
disclosure of human subject research enables us to comply
with international regulations and balances our
commitment to transparency with the increasing need to
ensure that our data assets are appropriately protected.
In the past two years, we have broadened our policy to
encompass the dissemination of plain language summaries
of our trial results to both trial participants and the general
public. This applies to trials starting after 1 January 2023.
Since the GSK trial register was set up in 2004, we have
made 8,036 protocol summaries and 7,029 summaries of
results available. We have also listed 2,721 clinical trials for
data sharing via www.vivli.org.
For full details of our progress in our six focus areas, please see our
Responsible Business Performance Report
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Our purpose – to unite science,
technology and talent to get ahead
of disease together – puts our
people at the heart of our success
and we have defined a single
culture for GSK globally.
Our culture
Ambitious for patients to deliver what
matters better and faster
Accountable for impact with clear ownership
and support to succeed
Do the right thing with integrity and care
because people count on us
People and patients around the world count on the
medicines and vaccines we make – so we’re committed
to creating an environment where our people can thrive
and focus on what matters most.
Our culture of being ambitious for patients, accountable
for impact and doing the right thing is the foundation for
how, together, we deliver for patients, shareholders and
our people.
This means we support our people to focus, doing
things better and faster. It means setting clear
objectives, creating accountability for results and giving
everyone the support and space they need to succeed.
It also means doing everything responsibly with integrity
and care.
Our culture is embedded in everything we do, from our
recruitment and onboarding, training and development, to
our assessments of performance and promotion. The Board
regularly monitors and assesses how we've embedded our
culture.
Each year, everyone signs up to the Code – which sets out
our culture as well as the commitments GSK and our people
make so we can deliver on our ambition in the right way.
And each year, we measure our progress in making this
culture the way we work together every day.
See The Code on gsk.com
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Our culture
and people
58
An intern who joined us
in 2024 in the UK. We are
committed to giving
outstanding people the
chance to build their
skills and capabilities.
Developing outstanding people
To develop and deliver transformative medicines and
vaccines, we recruit and develop outstanding people and
give them opportunities to build their skills and capabilities.
From the moment people join GSK, we deliver an engaging
onboarding approach to accelerate the growth of our new
joiners with support from their manager and team.
We expect all our people to have an agreed development
plan and we invest in learning and development initiatives
which everyone can access.
Technology remains key to our purpose and to delivering
our ambitions. Building digital fluency and behaviours
across the organisation is a priority, with a focus on AI,
data & analytics, experimentation and fostering curiosity.
We have built our people's skills with training, as well as
global events such as DataCon, where our people can learn
how to apply digital, data and technology tools to become
more digitally fluent. This year, more than 13,000 of our
people took part.
Our managers play a crucial role in helping their teams
to perform and thrive. We expect them to motivate, focus,
care for and develop their teams and we deliver training
anchored in these four areas. In 2024, approximately 700
senior directors attended our three-day in-person event
called Leading Leaders across 24 global sessions. We also
continue to invest in growing the next generation of senior
leaders. In 2024 over 1,300 people attended our refreshed
First Line Leader programme to support our foundational
expectations of leadership at GSK.
To measure the effectiveness of our managers, their teams
provide feedback through an annual One80 survey, and
managers receive anonymised aggregate feedback. In
2024, 79% of our managers were rated as highly effective
by their teams.
Recognising and rewarding people
Sharing our success and recognising and rewarding our
people fairly, not just on the progress we have made but
how we have made it, continues to be an important part of
our culture. Our bonus scheme rewards performance across
the company, and we also award 10% of our people each
year with ‘Ahead Together’ awards for delivering
exceptional performance and being ambitious for patients,
accountable for their impact, and doing the right thing. We
also identify 5% of people as having missed performance
for not delivering on their objectives or living the culture.
Helping people thrive
People thrive in different ways, but there are common
themes that matter to everyone. We strive to be a place
where people feel welcome and valued, in an environment
(including our policies, workplaces and ways of working)
that enables and supports them to deliver at their best. This
includes our approach to hybrid working for those in office-
based roles, which allows the right balance of on-site and
remote working.
Health, wellbeing and volunteering
Preventing disease and keeping people well are at the heart
of what we do. We provide a range of health and wellbeing
benefits to support people to manage their physical,
emotional, mental and financial wellbeing through different
life stages in ways that work for them. These include:
– Thrive Global, a science-led digital platform which
supports mental resilience and overall wellbeing with
personalised, AI-driven micro steps towards individual
goals. We have so far launched this in eight countries,
reaching 56% of our people with positive uptake and
engagement.
– Our global Partnership for Prevention programme, which
provides our people and their families with access to
preventive healthcare services in line with the
recommendations of the World Health Organization
(WHO).
– Our Global Employee Assistance Programme, which offers
free, confidential help and support for our people and
their families 24/7.
– Financial wellbeing support for our people, which includes
access to ‘Nudge’, a financial education platform in over
60 countries, helping people manage their finances and
achieve their financial goals.
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To enable our managers to better care for their teams by
identifying and responding to their people's challenges,
88% of managers have undertaken mental health training
since the end of 2019.
We encourage our people to volunteer so we can make an
even bigger impact on our communities. We match
volunteering opportunities to our ambition, strategy and
charitable investment themes: Health for people, Health for
the planet, Innovators for the future. This year our people
have donated over 47,000 hours of volunteering time.
How people experience GSK
We are committed to listening to our people. We regularly
measure their experience of GSK as a place to work,
including through an annual survey for all our people
featuring questions on engagement, confidence, inclusivity,
our culture focus areas and trust priorities. In 2024 we
continued to see a high engagement score of 81% and
increased confidence in the delivery of our strategy. We also
continued to see high scores in our culture focus areas –
ambitious for patients, accountability for impact and doing
the right thing – as well as measures of inclusion, with
improvements in many areas.
Our culture in action – driving R&D
Our culture pillars – ambitious for patients,
accountable for impact, and doing the right thing –
are fundamental to our success in researching and
developing innovative medicines and vaccines.
Alongside execution and technology, culture is one of
our three R&D priorities – as culture is what unites us
to deliver better and faster for patients.
In 2024, we’ve continued to encourage behaviours
across our R&D organisation that embed our culture.
Our employee engagement survey in R&D showed an
increased score in all three culture pillars.
We aim to give everyone – scientists, researchers,
data experts, trial specialists, technologists and more
– the chance to thrive and make smart choices so we
can get ahead of disease together. To enable people
to succeed today and tomorrow, people have focused
annual objectives, with a stretch goal to support their
future development.
Being ambitious for patients means an absolute focus
on our key assets and four therapy areas, where we
have the strongest expertise and the greatest chance
of making an impact for patients, and driving growth,
on a large scale. We put the patient at the centre of
everything we do. Through interviews, focus groups
and regular collaboration with patient councils, we’ve
integrated insights from patients, including those living
with cancer and respiratory diseases, across the
product lifecycle, helping us to deliver improved
outcomes for those living with and at risk of disease.
Our R&D teams and leaders are dedicated to making
informed decisions at pace. Accountability for smart
decision-making is enhanced by streamlined
governance structures and an environment of robust
scientific debate. This approach is supporting
enhanced productivity in R&D, including an
improvement in end-to-end success rates and an
accelerated development strategy for key assets
including depemokimab.
Patients are counting on us, so it’s critical that we act
with integrity and care. Our ambition for patients
drives us to do the right thing, making sure that we
focus our efforts on accelerating significant assets
that meet their needs and have the highest probability
of success.
Read more about our innovation in R&D on pages 12 to 31
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Risk management
and disclosure
statements
In this section
Risk management
62
2024 principal risks summary
64
Climate-related financial disclosures
67
Nature-related financial disclosures
76
Non-financial and sustainability information
statement
80
Employees by gender
80
Section 172(1) statement
78
Viability statement
81
GSK Annual Report 2024
61
Our strategy for growth is underpinned by a well-embedded risk management
and internal control framework, overseen and evaluated by our Board.
Managing risk effectively through controls and
guidance
Our risk management and internal control framework
enables our Board to evaluate and oversee how we
manage principal and emerging risks in line with our
strategy and long-term priorities.
Our policy sets out the requirements, roles and
responsibilities for the management and governance of
risks and controls and provides guidance on the essential
elements of our internal control framework. We routinely
evaluate our risk management and internal control
framework for improvements.
Board oversight and clear accountability
The Board oversees our system of risk management and
internal control and establishes our risk appetite, supported
by the Audit & Risk Committee (ARC). The Corporate
Responsibility Committee (CRC) and Science Committee
assess the effectiveness of risk management strategies
that fall within their remits. Cyber security risks are overseen
by both the ARC and the Board. We describe the
responsibilities and remits of the Board and its committees
on page 122.
Our Risk Oversight and Compliance Council (ROCC), co-
chaired by our Group General Counsel and our Chief
Compliance Officer, helps the ARC, CRC and Science
Committee to oversee risks, and the strategies used to
address them. At the same time, risk management and
compliance boards (RMCBs) across the Group promote the
‘tone from the top,’ establish our risk culture, oversee the
effectiveness of risk management activities, and
communicate information about internal controls.
Management is accountable for delivering on its objectives
in line with the established risk appetite that applies to
principal risks. The Disclosure Committee is responsible for
considering the materiality of information and determining
the disclosure of this information in a timely way.
An enterprise risk owner is responsible for each principal risk,
overseen by a GSK Leadership Team (GLT) member, and
reports risk and mitigation to ROCC and the appropriate
Board committee each quarter. Significant risks or issues
can also be escalated to the GLT, RMCB, or appropriate risk
governance forum (eg Global Safety Board) throughout the
year as needed. Legal & Compliance support these efforts
by advising on our business strategies, activities, risks and
controls. Audit & Assurance assesses the adequacy and
effectiveness of our framework.
Assessing current, evolving and emerging risks
We use our enterprise risk assessment methodology to
assess all risk, including our principal risks. Our enterprise risk
assessment methodology considers the likelihood and
impact of risks, and the timescale over which a risk could
occur based on the most probable scenario and in the
context of our existing internal controls. Our impact
assessments include considerations across patient safety,
quality and supply; environment, health and safety; legal
matters; people; regulatory; reputation; strategic objectives;
and finance, incorporating materiality thresholds.
As well as considering current and evolving risks, we
evaluate emerging risks that could affect our ability to
achieve our long-term priorities over a three-year horizon,
in line with our Viability statement. We also define risks as
‘emerging’ if we need to know more about how likely they
are to materialise, or what impact they would have if they
did. We keep emerging risks and their impact on the
company under evaluation to assess whether they should
be elevated to principal risks.
Our risk management and compliance boards at all levels
scan for emerging risks year-round, and ROCC discusses
evolving and 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.
ROCC conducts an annual risk review to assess principal
and emerging risks for the company, supported by extensive
analysis of external trends and insights, senior-level
interviews and recommendations from risk management
and compliance boards and risk owners. This annual review
is shared with the ARC and Board for assessment and
agreement and forms the basis for the following year’s risk
management focus.
Our business strategy, results of operations and financial
condition have not, as far as we are aware, been materially
affected by risks from cyber security threats, including as a
result of previous cyber security incidents, but we cannot
provide assurance that they will not be materially affected
in the future by such risks and any future material incidents.
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Risk management
62
Our risk management and internal control
framework
Our risk management and internal control framework is
in line with industry standards and legal and regulatory
requirements, and we regularly monitor for proposed or
new requirements. The framework defines the essential
elements we expect and helps us to identify, assess,
manage, report and oversee risk relevant to our business
activities. This framework helps make sure we manage
our risks proportionately, in line with our risk appetite,
throughout the year in a timely and transparent way to
support our strategic objectives. We’re assessing the
revised UK Corporate Governance Code and implementing
the new requirements.
For our principal risks, which include information and cyber
security, we define enterprise risk plans that include a
description of the risk, its context, our assessment, risk
appetite, how we will treat the risk and the actions
businesses will take to mitigate the risk in line with our
internal control framework. These plans enable our Board
committees to assess the effectiveness of our risk
management strategies. We report on our principal risks
and emerging risks to ROCC and the respective Board
committees every quarter, to drive more dynamic, data-
driven discussions, agile risk management strategies and
oversight. We report on existing control measures,
implementation, emerging risks, external insights and key
risk indicators with risk reporting thresholds aligned to risk
appetite. We include risks and mitigations associated with
relevant events around us, such as geopolitical tensions.
Our Code sets out the overarching expectations for our
employees and complementary workers. We aim to do the
right thing with integrity and care as part of our culture. Our
risk management framework complements our culture and
Speak Up processes in making sure that we identify and
mitigate risks effectively. We monitor our most important
risks and take action to address issues. Our annual
confirmation exercise with General Managers, Site Directors,
senior leaders and GLT, checks that key risks are well
managed, and that actions are in place to address gaps.
Our principal risks include controls for responding to
problems within their risk plans. We also have business
continuity planning embedded in our framework and our
critical processes, so we can continue business operations in
the event of a crisis.
How we report our risks
The table beginning on page 64 shows our principal risks
and respective trends, assessments and mitigation activities
for the year. These risks are not in order of significance. For
full risk definitions, potential impact, context and mitigating
activities, see Principal risks and uncertainties on page 307.
Other risks related to ESG that are not assessed as principal
risks, including environmental sustainability and climate
change, are managed through our six focus areas, as
described in our Responsible Business Performance Report.
See page 67 for more about climate-related risk management
Changes to our risks for 2025
In our December 2024 annual risk review, the ARC agreed
to ROCC’s recommendation of our principal and emerging
risks for 2025. Our principal risks will remain largely the
same, with consistent ROCC member ownership and minor
risk definition updates. We will also include a pipeline
delivery principal risk (the risk that we fail or have delays in
the delivery of our pipeline). This risk will continue to be
overseen by our well established R&D governance and the
Chief Scientific Officer. This addition reflects the evolving
external reporting regulations and paramount importance
of discovering and developing new medicines and vaccines
to the company.
Additionally for 2025, the following emerging risk themes will
be assessed throughout the year:
– Skills and capability planning (the risk that we fail to
ensure adequate skills and capability planning to enable
delivery of our strategic priorities);
– Regulatory environment (the risk that GSK fails to adapt
to changes in the regulatory environment, new or
amended legislation in relation to the pharmaceutical
and healthcare industry); and
– Geopolitical developments (the risk that geopolitical and
social tensions give rise to restrictive measures that may
negatively impact GSK’s operations).
Our prior data management emerging risk is now
embedded in our business operations and principal risks
and will be removed as an emerging risk for 2025. We will
continue to monitor the external landscape and ensure that
any new emerging risks are adequately addressed within
our existing risk management governance.
Environment – see page 51
Climate-related financial disclosures – see page 67
Viability statement – see page 81
ARC report – see page 139
Internal control framework – see page 142
Legal proceedings – see page 287
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Risk management continued
63
Risk
Trend versus
prior year
Risk assessment and mitigation
Patient
safety
→
External
The external risk environment remains stable. We continue to contend with a complex legal and
regulatory environment and despite having an optimised, best-in-class pharmacovigilance
system, we cannot predict all circumstances impacting safety and efficacy that could potentially
result in harm to patients, regulatory action or litigation. External reviews of GSK products or
publications not based on robust scientific evidence of the ongoing benefit/risk assessment could
also lead to potential harm to patients.
→
GSK
Our internal risk environment remains stable in 2024. We continue to focus on ensuring an
optimised benefit-to-risk profile for all medicines and vaccines through appropriate safety
expertise and oversight. Throughout 2024 we have further embedded a simplified third-party
support model for global pharmacovigilance operational activities.
Product
quality
→
External
The external risk environment remains stable. It continues to be challenging, as regulators are
introducing new or revised guidelines and initiatives and pharmaceutical, chemical and
environmental legislation at a rapid pace. This is combined with a significantly increased focus on
inspections, ongoing nationalism, and the impact of geopolitical tensions across our supply chain,
with the result that our global sites and functions are delivering a much broader spectrum of
advocacy and implementation activity to support product quality. A strong focus from regulators
on preventing drug shortages adds to the importance of limiting quality issues. Attracting and
retaining key specialised skills to deliver quality innovation in manufacturing and development is
potentially challenging in a highly competitive environment and remains a focus for our innovative
new platforms such as oligonucleotides, mRNA and antibody drug conjugates (ADC) and for the
adoption of AI solutions.
→
GSK
Our internal risk environment remains stable. We are embedding a single quality organisation and
managing the integration of quality systems, functions and ways of working to support product
quality. We are focused on driving quality improvement, standardisation and mitigating risk. We
continue to work on enhancing our quality mindset and behaviours to drive proactive quality
improvements and maintain compliance and our licence to operate. We also continue to enhance
our quality management system framework to improve functional interfaces and standardise end-
to-end Good Manufacturing Practice (GMP) and Good Distribution Practice (GDP) processes
across the business.
Financial
controls
and reporting
→
External
The external risk environment remains stable. It continues to be challenging due to geopolitical
uncertainty, proposed increases in the obligations of directors and auditors, increasing threats of
cyber attacks and fraud, and increasing disclosure requirements including non-financial
information.
→
GSK
Our internal risk exposure remains stable due to our ongoing focus on the resilience of personnel
and the testing of our internal control framework. We implement optimal risk mitigation through
transformational programmes, technology, centralised processes, and risk and control
assessments, and maintain effective tax and treasury strategies. We continually strengthen our
control frameworks and collaborate with external bodies on setting standards.
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2024 principal risks summary
64
Risk
Trend versus
prior year
Assessment and mitigation activities
Legal
matters
↑
External
The external risk environment is increasing. The pharmaceutical industry is highly regulated and
subject to significant scrutiny by government agencies globally. We must comply with various and
diverse global laws and regulations, including those on anti-bribery, corruption, competitive
practices and export controls. The applicable laws are often uncertain, unstable or evolving and
can conflict across different markets, making it challenging to determine exact requirements of
local laws in every market. We are subject to extensive scrutiny from government agencies across
multiple countries. Competition law is increasingly being used to tackle perceived issues impacting
access to medicine, pricing and acquisitions.
Rigorous anti-bribery and corruption internal controls are expected. US and UK, among many
countries, prioritise enforcement of anti-corruption laws and regulations, with continued focus on
investigating the use of third parties to bribe foreign public officials.
→
GSK
Our internal risk exposure remains stable. We conduct our business in a heavily regulated industry
and across many culturally diverse countries, including some which present high risks relating to
corruption, sanctions, and competition law risk. The global external environment is volatile and
impacts upon our ability to manage legal risks arising from our business activities, but this is
managed by us being proactive, monitoring the external environment and quickly responding to
any changes by adapting our internal controls designed to meet changing risks.
Commercial
practices
↑
External
The external environment is challenging. Governments have increased their focus on initiatives to
drive down medicine and vaccine costs for consumers.
Macroeconomic factors such as inflationary pressure and major geopolitical events also
contribute to a challenging environment for all stakeholders. Competitive pressure remains intense
across therapy areas and market segments. Expectations for more patient and disease centric
marketing strategies are high.
→
GSK
Our internal risk exposure remains stable. We’ve adjusted to new technologies including AI/ML
and new digital channels for promotional and non-promotional activities. We have mature and
robust internal control systems, processes and monitoring that continue to evolve to match
competitive enhancements to our commercial and digital practices, and we continue to place a
focus on rapidly emerging risks.
Scientific
and patient
engagement
→
External
The external risk environment is stable. We engage externally through multiple channels and
platforms, while digital health and generative AI tools advance. The environment continues to be
characterised by complex and dynamic disease areas and treatments, requiring patient
engagement throughout the development and lifecycles of products.
→
GSK
Our internal risk environment remains stable. We continue to build capability and improve our
engagement practices and internal controls to mitigate risk while exploring and piloting AI tools.
We use data and systems to monitor for emerging risks associated with scientific and patient
engagement activities and embedded existing controls in the newly created Chief Patient Officer
organisation.
Data ethics
and privacy
↑
External
The external risk environment is increasing. Data protection, privacy, cyber security, and AI/ML
laws continue to evolve, increasing the complexity and risk in our environment. The rapid pace of
technological innovation is expected to persist, and companies must remain alert to potential new
legislation and regulatory changes. The growing trend toward data sovereignty could impact
healthcare organisations, affecting their ability to innovate and conduct international operations.
→
GSK
Our internal risk exposure is stable due to the strength and maturity of our data ethics and privacy
framework. We continue to evaluate and evolve where necessary to address new privacy laws in
the countries where we operate and regulatory restrictions on international data transfers.
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2024 principal risks summary continued
65
Risk
Trend versus
prior year
Assessment and mitigation activities
Research
practices
↑
External
The external risk environment is increasing. Advances in technology, the expanded use of data
and digital footprints, more sophisticated cyber security threats, the rising trend of data
sovereignty and the developing global landscape of quality standards, data protection, privacy
and cyber laws continue to influence the environment, as do new entrants in the sector.
Companies should consider the relevant emerging legislation and regulations and impact on their
ability to drive innovation and operate internationally.
→
GSK
Our risk exposure is stable as we adopt new technologies and scale our adoption of artificial
intelligence in the discovery and development of medicines and vaccines. We continue to adapt
our internal business processes to enable innovation and to meet ethical, societal and regulatory
expectations.
Environment,
health and
safety (EHS)
→
External
The external risk environment remains stable. There are currently no external EHS risk factors that
reduce our ability to discover and manufacture our medicines and vaccines safely. We are
monitoring developing legislation around PFAS (Per- and polyfluoroalkyl substances) in different
regulatory frameworks.
→
GSK
Our internal risk environment remains stable. We are focusing on assessing and controlling SIF
(significant injuries and fatalities) risks throughout our operations and in particular where
contractors are involved. Driver safety programme improvements and Safety Leadership
Experience training is delivering continued improvement.
Information
and cyber
security
↑
External
The external risk environment is increasing. The external cyber security threat landscape has never
been more complex due to the weaponization of AI by cyber threat actors, geopolitical tensions,
and increased ‘hacktivism’. New cyber regulations and privacy laws, along with the anonymity
provided by cryptocurrencies and the dark web, are complicating the environment. The financial
impact of cyber crime continues to rise significantly each year.
→
GSK
Our internal risk environment is stable. We continue to operate in a digital healthcare ecosystem,
while adopting new technologies to accelerate our mission to unite science and technology. Our
Cyber Maturity Programme (CMP) continues to improve our controls and governance to prevent,
detect, respond and recover from cyber security incidents. Failure to protect our information and
systems against cyber threats may cause harm to patients, workforce, and customers, disrupt our
business, and damage our reputation.
Supply
continuity
→
External
The external risk environment remains stable. Threats to supply continuity include geopolitical
instability, natural disasters and cyber attacks. The risk applies to our internal manufacturing and
supply organisation and our network of third-party suppliers (including contract manufacturers,
active pharmaceutical ingredients (API) and raw material suppliers, and third-party logistics
providers).
→
GSK
Our risk exposure remains stable, mitigated through a combination of well-defined supply chain
management processes, clear escalation pathways to ensure supply continuity and clear
succession plans for critical supply chain roles. Our Supply Chain 2030 initiative and the
integration of the Medicines and Vaccines supply chains into one organisation demonstrate our
commitment to evolving our technology platforms and product portfolio without impacting supply
continuity, which remains consistently high.
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2024 principal risks summary continued
66
Our climate-related financial disclosures are consistent with
the recommendations and recommended disclosures of the
Task Force on Climate-related Financial Disclosures (TCFD),
including the TCFD all-sector guidance, and in compliance
with the requirements of UKLR 6.6.6(8)R (UK Listing Rules).
The disclosures are in compliance with the Companies
(Strategic Report) (Climate-related Financial Disclosure)
Regulations 2022 of the Companies Act 2006. We update
our climate risk and impact assessments annually.
Governance
The Board’s oversight of climate-related risks
and opportunities
Board
The Board considers climate-related matters throughout the
year. This includes assessing risk management processes,
challenging and endorsing the business plan and budgets,
including overseeing major capital expenditures,
acquisitions and divestments.
The Corporate Responsibility Committee (CRC) exercises
oversight, provides guidance and reviews our responsible
business performance, including climate-related risks and
opportunities, and environmental performance against our
climate and nature targets.
The CRC receives quarterly updates on environmental
sustainability, including climate. Regular attendees
include the CEO and the President Global Supply Chain.
See page 122 for further details of the Board architecture
In 2024, the CRC met five times and discussed climate-
related issues on three separate occasions with
management. The CRC:
– assessed mid-point performance towards our 2030 and
2045 nature positive and net zero ambitions
– discussed the health impacts of climate change
– reviewed mid-year performance of the metrics used in the
Responsible Business Performance Rating for 2024
– approved our climate disclosure statement and final
Responsible Business Performance Rating for 2023 and
other public environmental reporting and disclosures
Management’s role in assessing and managing climate-
related risks and opportunities
GSK Leadership Team (GLT)
The GLT meets regularly, giving members an opportunity
to discuss strategic, financial and reputational matters.
The President, Global Supply Chain, a GLT member, has
management responsibility for environmental sustainability,
which includes our climate targets. The President is
responsible for governance and oversight of risks and
opportunities and makes sure there is an effective
framework to manage the risks and opportunities across
each of our business units. The framework also enables us
to deliver on our commitments to a net zero, nature positive,
healthier planet, with ambitious goals set for 2030 and 2045
across our entire value chain.
The GLT reviewed and discussed the mid-year and year-
end performance for key climate and nature metrics (see
page 51) as part of reviewing our Responsible Business
Performance Rating.
GSK Sustainability Council
The Sustainability Council, held quarterly, is attended by
senior leaders from across the business. Members include
leaders from Procurement, Finance, HR, Compliance, R&D,
Manufacturing and Corporate Affairs. The Council is co-
chaired by the President Global Supply Chain and the Vice
President Sustainability (VP Sustainability) and supported by
the global Sustainability team and external third parties,
who provide specialist expertise and advice to the business.
In 2024, the Council:
– approved the annual targets for the climate and nature
key performance indicators (KPIs) of the sustainability
programme
– reviewed monthly performance and escalations of any
potential concerns or issues
– approved the annual climate risk review and approach
for risk disclosure
– reviewed how we are preparing for the new EU reporting
regulations
– reviewed the sustainability data strategy and
implementation plan to create a robust data foundation
for ESG reporting and compliance
– reviewed R&D’s approach to use Sustainable Design
Plans for new products in development
Other business support
The Sustainability Council is supported in assessing and
managing climate-related risks and opportunities by:
– the sustainability programme steering team, chaired by
the VP Sustainability, which meets monthly and co-
ordinates the sustainability programme. This team
monitors programme performance and the progress of
the enablers required to deliver the sustainability
programme.
– the Sustainability Risk and Opportunity Committee, which
was established in 2024 and is a cross-functional team
from the Sustainability, EHS, Finance, Supply Chain and
Procurement. The Committee meets quarterly and reports
to the Sustainability Council.
– the results of climate scenario modelling are shared with
the Sustainability Council and business unit Risk
Management Control Boards (RMCB).
– business sustainability councils which meet quarterly to
review their business unit performance and delivery
against our sustainability ambition. These are chaired by
senior leaders who also attend the Sustainability Council.
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Climate-related financial disclosures
67
– the Metered Dose Inhaler steering team, which is
attended by senior leaders from across the commercial,
supply chain, regulatory and R&D teams aligned to our
respiratory business. This team is chaired by the President
Global Supply Chain, who also chairs the Sustainability
Council, and is the decision-making body for the
programme to reduce the climate impact of metered
dose inhalers which make up to approximately 50% of our
total GHG emissions.
– the Capital Allocations Board (CAB), which is chaired
by the CFO and includes the Group Financial Controller,
reviews climate-related capital expenditure as part of its
annual planning and capital allocation process.
– a reporting hub, which was established in 2023, provides
oversight and assurance of data, including on carbon
emissions.
– the carbon credit programme steering committee, which
includes the Group Financial Controller and the VP
Sustainability, who also attends Sustainability Council,
reviews the due diligence outcomes of potential carbon
credit projects and the performance of established
investments, and makes new investment decisions.
Strategy
The climate-related risks and opportunities we have
identified over the short, medium and long term
We consider climate-related risks and opportunities in
three different time horizons:
1. short term (up to three years) aligning with financial
planning timeframes.
2. medium term (four to ten years) aligning with long-term
business forecasting timeframes.
3. long term (more than ten years) to enable us to explore
the uncertainties in changes to weather, disease patterns
and societal responses to climate change across the
globe.
We have identified and prioritised these climate-related
risks and opportunities:
Risks:
– changes to regulations governing the supply of high
global warming potential (GWP) substances by the EU,
UK and US governments could restrict our ability to
manufacture metered dose inhalers.
– future regulatory policy responses to address climate
change could lead to the imposition of carbon taxes by
countries where we manufacture and source goods from
third parties.
– increasing levels of water stress could lead to interruptions
to supply of water to our and third-party supply sites.
– increasing frequency and impact of extreme weather
events could disrupt GSK and third-party supplier sites.
– nature-based projects might not deliver enough carbon
credits to offset 2 million tonnes CO2e per year from 2030,
meaning that we have to buy more credits at higher cost.
Opportunities:
– At COP28 in 2023, more than 70 countries committed to
provide low-carbon healthcare systems. This could lead to
increasing demand for low-carbon medicines and
vaccines.
We set out the processes for identifying and assessing
climate-related risks and opportunities in the Risk
Management section. The Sustainability Risk and
Opportunity Committee monitors for emerging risks and
new data to include in future assessments.
The impact of climate-related risks and opportunities
on our business, strategy and financial planning
Our commitment to work towards a net zero, nature positive,
healthier planet with ambitious goals set for 2030 and 2045
is embedded in our strategic long-term priorities, always
considering the social, environmental and governance
impacts of everything we do from laboratory to patient.
Our overall target to reach net zero greenhouse gas
emissions across the value chain by 2045 from a 2020 base
year was approved by the Science Based Targets initiative
(SBTi) in 2023. Underpinning this headline target are our
SBTi-approved near-term and long-term carbon reduction
targets aligned to the 1.5°C pathway.
– Our near-term carbon reduction target is an 80%
reduction in Scope 1 & 2 and Scope 3 carbon emissions by
2030.
– Our long-term carbon reduction target is a 90% reduction
in Scope 1 & 2 and Scope 3 carbon emissions by 2045.
Both targets are measured against a 2020 baseline.
Transition plan
We’re taking action to reduce emissions across our full value
chain, prioritising the highest-impact areas. We'll invest
around £1 billion from 2020-30 to deliver emissions
reductions and removals to achieve our targets through the
activities outlined below.
Beyond 2030 we expect we will be left with the harder-
to-tackle emissions from across our supply chain, our
own operations, logistics, and disposal. In many cases,
addressing these residual emissions is likely to depend
on technologies, infrastructure and regulatory frameworks
that require broad public/private collaboration. So our
decarbonisation plan is interdependent with the broader
economic transition and follows a similar timeframe.
See page 51 for further details of our progress in reducing carbon
emissions
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68
Direct operations
To continue reducing Scope 1 & 2 emissions across our
operations by 2030, we’re focusing on:
– maximising energy efficiency in our sites through our
long-standing energy efficiency programme
– transitioning to 100% imported renewable electricity
by 2025 and to 100% imported and generated renewable
electricity by 2030
– exploring opportunities to use biogas to replace natural
gas for energy and heat production
– increasing the use of electric vehicles by our sales fleet
Risks and uncertainties
In some markets where we operate, accessing renewable
electricity will be challenging because of the limited
generation capacity and the market boundary rules
governing imported electricity. In 2024, we’ve taken action
to mitigate this risk by signing a 10-year deal from 2025 to
supply our manufacturing sites in Singapore with 100%
renewable electricity purchased through renewable energy
certificates from solar projects.
There are uncertainties in the transition to renewable heat.
High-temperature heat produced by electricity is not
generally commercially available today. Biogas can replace
natural gas without introducing major changes to facilities,
but is not widely available in the locations where we
operate. The use of biomass as fuel could introduce issues
of land use change and impacts on local air quality.
The transition to 100% electric vehicles by 2030 could be
restricted by vehicle availability, lack of charging
infrastructure and sourcing of key materials for battery
production.
Supply chain
Our Sustainable Procurement Programme requires our
suppliers to disclose emissions and set carbon reduction
targets aligned with a 1.5°C reduction pathway. We also
work with suppliers, particularly those with the largest
footprint, to encourage them to adopt new sustainability
measures. We’re exploring the sourcing of low-carbon
materials for use in our products and packaging.
Supply chain emissions are a shared challenge across our
sector, and we’re working with our peers on collaborative
initiatives such as:
– the Activate programme to help active pharmaceutical
ingredients (API) suppliers accelerate decarbonisation
initiatives
– the Energize programme to encourage the use of
renewable energy throughout the pharmaceutical sector’s
supply chain
– the Manufacture 2030 initiative to encourage suppliers
to measure, manage and reduce their emissions
Risks and uncertainties
Pharmaceutical manufacturing processes are highly
regulated by different agencies across the world, which may
slow down the implementation of some decarbonisation
initiatives.
Our supply chains are complex and can involve several
intermediate stages of production that are highly product-
specific. Our volume demand on specific materials is quite
low, which can reduce our ability to influence where we only
purchase a small share of a supplier’s production.
Many suppliers are based in regions where renewable
electricity and heat are less available than elsewhere.
Measuring Scope 3 emissions is complex and challenging
and there's a lack of primary data from suppliers.
Methodologies involve using spend-based estimates mixed
in with activity-based data, industry average data and
extrapolations based on subjective choices and judgements.
As data systems, processes and controls mature and more
primary data becomes available, there may be the need to
restate reported emissions data in the future.
Product impact
The use of our products makes up 53% of our carbon
footprint. Patient use of our rescue metered dose inhaler
(MDI) medication, Ventolin (salbutamol), accounts for 45%
of our carbon footprint. In 2024, we began phase III clinical
trials for our low-carbon Ventolin programme to redevelop
this inhaler by transitioning to a next-generation propellant,
which has the potential to reduce emissions from the inhaler
by approximately 90%. If trials are successful, regulatory
submissions will begin in 2025 and work is underway to
establish manufacturing capability for this inhaler at our site
in Evreux, France, and at strategic contract manufacturing
partners.
We are playing a leading role in developing a new standard
to measure and report the environmental footprints of
pharmaceutical products. This work is co-sponsored with
the UK NHS and the Office of Life Sciences and the Pharma
LCA consortium of 11 global pharmaceutical companies,
with support from the Pharmaceutical Environment Group
and the Sustainable Markets Initiative.
Risks and uncertainties
Metered dose inhalers are complex devices, and any new
medical propellant must meet a specific range of technical
performance characteristics to be safe and efficacious for
patients.
We’re engaging with medical regulators such as the US
Food and Drug Administration (FDA), European Medicines
Agency (EMA) and the UK Medicines and Healthcare
Products Regulatory Agency (MHRA) on how advances
in pharmaceutical product design can reduce the
environmental impact of medicines.
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Carbon credits
While we’re focused on emissions reductions to meet our
carbon targets, we’re also investing in high-quality nature
protection and restoration projects. These support our net
zero and nature positive goals and deliver co-benefits to
human health to generate carbon credits to offset annually
the 20% of our baseline value chain carbon footprint from
2030. The volume of credits required will taper down to 10%
as we continue to reduce our emissions, aiming to achieve
net zero emissions across our full value chain by 2045.
Our criteria for high-quality projects include avoidance of
harm, transparency, additionality, permanence, mitigation
of leakage, project monitoring, reporting and verification
of claims and avoidance of double counting.
For our 2030 target, we’re prioritising carbon removal
credits, but we’ll also secure a proportion of carbon
avoidance and reductions credits in recognition of their
critical role in conserving existing carbon stocks and
protecting nature. For our 2045 net zero target, we’ll
aim to secure only carbon removal credits.
Risks and uncertainties
We recognise that this is a fast-moving field, and that
methodologies and guidelines will likely evolve as we
implement our plans. We commit to remaining flexible
and transparent about our progress and learning.
There’s a risk that the nature-based projects don’t deliver
enough carbon credits to meet our needs in a given year
and that we may need to buy more credits at higher cost.
Climate scenarios
We use climate scenarios to inform management about
climate risks, reporting the results to Risk Management
Control Boards (RMCB) in the business, as well as to the
Sustainability Council.
We’ve developed modelling tools with the support of third
parties that enable us to model the impacts of physical and
transition risks where our sites and supply chains are
located. For example, we have modelled the probability of
an interruption from an extreme weather event at our key
sites and supplier sites and the subsequent financial impact
of that interruption, assuming the inventory levels carried
under existing business continuity plans. We’ve modelled the
impact of future carbon taxes, such as direct taxes on
energy-related emissions, emissions trading schemes
and taxes from carbon border adjustment mechanisms
assuming we deliver our carbon reduction glidepath to
2030 and beyond.
We intend to review the climate scenarios we use again in
2025 to make sure they’ll stay up to date.
Net zero scenario (SSP 1 – RCP 1.9)
This scenario sets out a narrow but achievable pathway for
the global energy sector to achieve net zero CO2 emissions
by 20501. It doesn’t rely on emissions reduction from outside
the energy sector to achieve its goal. The scenario is
consistent with limiting the global temperature rise to 1.5°C
without a temperature overshoot. Net zero means huge
declines in the use of coal, oil and gas and a shift to
renewable energy sources.
Low-carbon scenario (SSP 1 – RCP 2.6)
In this scenario, all current net zero pledges are achieved in
full and there are extensive efforts to realise near-term
emissions reductions; advanced economies reach net zero
emissions by 2050, China around 2060, and all other
countries by 2070 at the latest2. The scenario is consistent
with limiting the global temperature rise to below 2°C. With
some level of net negative emissions after 2070, the
temperature rise could be reduced to 1.5°C in 2100.
Current trajectory scenario (SSP 2 – RCP 4.5)
This scenario sets out to show to what extent announced
ambitions and targets are on the path to deliver the
emissions reductions required to achieve net zero emissions
by 20503. The temperature rise will exceed 2°C by 2100,
with a more noticeable shift to happen in the latter half of
the century. A net zero pledge for emissions within the
scenario does not necessarily mean that CO2 emissions from
the energy sector need to reach net zero, but there’s an
allocation for carbon offsetting within the pledges.
Breach of planetary boundaries scenarios (SSP 5 – RCP 8.5)
This scenario is not aligned to any of the pledges laid out in
the Paris Agreement and is one where countries are unable
to meet the United Nations Sustainable Development Goals.
This scenario will have the most severe physical
consequences for the planet. The temperature rise will
exceed 4°C by 2100, leading to high loss of biodiversity and
species extinction.
Risk management
Our processes for identifying and assessing climate-related
risks
The nature of the risks and opportunities from climate
change depends not only on the physical aspects of climate
change, but also regulatory and commercial changes in the
markets in which we operate, including pressures to reduce
the climate impact of our metered dose inhaler medicines.
Our risk management policies are designed to address all
types of risks, including the Group principal risks and
uncertainties. Climate risk management follows the same
policy and framework. Risks from climate change at Group
level fall under the governance of the CRC with the support
of the Sustainability Council. Individual risks from climate
change are raised with appropriate business unit or
functional Risk Management Control Boards to integrate
these risks into business risk management processes.
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(1) IEA Net Zero emissions scenario, https://www.iea.org/reports/global-
energy-and-climate-model/net-zero-emissions-by-2050-scenario-nze
last accessed 17 November 2022
(2) IEA World Energy Outlook 2021, Chapter 2, p94, download report from
https://www.iea.org/reports/world-energy-outlook-2021/overview, last
accessed 17 November 2022
(3) IEA Announced Pledges, https://www.iea.org/reports/global-energy-
and-climate-model/announced-pledges-scenario-aps last accessed
17 November 2022
The Sustainability Risk and Opportunity Committee meets
quarterly to review and assess business intelligence,
regulatory monitoring reports, and escalations from across
GSK. The outcomes of impact assessments are reported to
the Sustainability Council.
Our processes for managing climate-related risk
For the purposes of this disclosure, we differentiate between
‘physical’ and ‘transition’ climate-related risks.
Physical risks are typically identified at the asset or project
level and are managed depending on the level of risk
assessed. We use climate scenario analysis to model the
potential impacts of our prioritised physical risks, which
helps us understand the resilience of our supply chains
against climate change.
Transition risks are typically risks associated with changes to
regulations or societal expectations during the transition to
a lower-carbon economy. They’re identified at enterprise
level and at market level. We manage transition risks
through our investment decisions, our sustainability
transformation programme and our procedures. For
example, we manage risks which may arise from product
claims based on environmental performance by using
external accreditation processes and organisations to
review the evidence used to support these claims. We use a
shadow carbon price of $100 per tonne CO2e to inform
decision-making on investments in major capital
expenditure to understand the implications on potential
carbon offset costs for the carbon emissions from our value
chain in 2030. This value is based on the recommendation
by the Carbon Pricing Leadership Coalition that concluded
in 2017 that the explicit carbon price level required to drive
change to restrict temperature increases to below 1.5°C is at
least US$50–100/tCO2 by 2030. We monitor the value used
for internal carbon pricing against estimates for the future
costs of carbon credits.
Our Communications and Government Affairs team
manages corporate reputation by identifying and
monitoring climate-related issues and undertaking
both proactive and reactive engagement with relevant
stakeholder groups.
Details of how we manage our prioritised risks are in
the Risk Table below.
How we integrate our processes for identifying, assessing
and managing climate-related risks into overall risk
management
Once a year, a cross-functional team from Sustainability,
Finance, Supply Chain and Procurement functions reviews
climate risks. It considers climate-related risks from a
strategic and operational perspective to make sure we
maintain a comprehensive view of the different types of
climate risks we face and the different time horizons in
which they may affect us. The team reviews previously
identified climate risks, plus new or emerging risks and
opportunities, and makes recommendations in a paper to
the Sustainability Council. Risk assessment papers are
prepared for the prioritised risks, considering the likelihood
and financial impact on us of each risk under different
climate scenarios.
We analyse each risk and opportunity to understand how
we’re managing them, the metrics and targets being used
and the potential impact on our total profit using a low
(<£100 million), medium (£100 million–£250 million) or high
(>£250 million) threshold.
The impact assessments are approved by the VP
Sustainability and a Finance VP from our Global Supply
Chain business unit. The results are shared with the
Sustainability Council, Business Unit Risk Management and
Compliance Boards (RMCB) and the Finance RMCB to
make sure risks are both contextualised with other business
risks and managed appropriately. This allows management
to take a holistic view and optimise risk mitigation
responses, to make sure that responses to climate-related
risks are properly integrated into the relevant business unit
and function activities.
The resilience of our strategy, considering different climate-
related scenarios, including a 2°C or lower scenario
We used the climate scenarios described above to stress
test the resilience of the business by considering the impacts
of potential physical and transition risks and opportunities
on the locations where we operate as described in the table
below. The modelling didn’t identify any material impact to
our business resilience.
The transition to supplying renewable energy to our own
operations and our supply chain through power purchase
agreements and continuing our long-standing energy and
water efficiency programmes increases the resilience of our
business.
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Physical risks
The risk from increasing levels
of water stress leading to
interruptions to supply of water
to our sites and third-party
supply sites.
Current trajectory
scenario
õ p
ò p
We’ve identified three water basins in water-
stressed areas in Algeria, India and Pakistan
where we have manufacturing sites, and where
we aim to be water neutral.
At our manufacturing facility in Nashik, India
we’ve built plants for rainwater harvesting.
The climate scenario analysis has identified
a number of sites and supplier sites located in
water basins that could become water-
stressed by 2050, and which have been added
to a watch list. We’ll monitor changes to the
risk levels and update our site water risk
assessments appropriately.
The financial impact is
based on a three-month
supply chain interruption as
a worst case.
We and our third-party
suppliers use freshwater as
the main source of water to
manufacture medicines and
vaccines. If water availability
was restricted at a factory,
operations would be
interrupted.
Breach of
planetary
boundaries
scenario
õ p
ò p
Increasing frequency of
extreme weather events
causing disruption to our and
third-party supplier sites.
Current trajectory
scenario
õ £
ò £
The climate scenario modelling indicated that,
of the seven physical perils, flood from rainfall
presents the highest likelihood of an acute
interruption. However, the risk of flooding from
rainfall and from the other extreme weather
events is expected to remain very low.
We’ve performed risk assessments for our
manufacturing and other operations and have
business continuity plans which we review
annually to respond to the impacts of extreme
weather events, including adopting
appropriate mitigation plans.
We have a well-established loss prevention
and risk engineering programme to identify a
range of risks that could affect our sites and,
where flood risks exist, we’ve taken action to
mitigate them.
The financial impact is
based on a three-month
supply chain interruption as
a worst case.
Extreme weather events from
any one of precipitation
(rainfall), flood from
precipitation, riverine flood,
extreme wind, wildfire, and
extreme heat can result in
short-term interruptions to
manufacturing at
our or supplier sites.
Breach of
planetary
boundaries
scenario
õ £
ò £
Nature-based projects fail to
deliver the anticipated volumes
of carbon credits from lower-
than-expected growth or the
result of a natural catastrophe.
Lower-than-
anticipated
growth scenario
õ £
We established a governance framework
to manage each project with our external
partners.
Any issues are escalated to the Carbon Credit
Programme Steering Committee.
We assume a future cost of
$100 per tonne CO2e by
2030.
For the lower-than-
anticipated growth scenario
we assume a 25% under-
delivery in a single year as
the issues will have been
identified early enough to
take other preventative
actions.
For a natural catastrophe
scenario, we assume 25% of
the projects will be affected
and the impact will last
This could lead to buying more
carbon credits at higher cost to
make up the shortfall.
Natural
catastrophe
scenario
õ p
Risk description
Potential impact
Our response
Assumptions
Key
Å
Short term
£
Low financial impact <£100m
õ
Medium term
§
Medium financial impact £100m–£250m
ò
Long term
¢
High financial impact >£250m
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Transition risks
Risk description
Potential impact
Our response
Assumptions
Regulations governing the use
of high GWP substances have
been updated in the EU and
US.
This could lead to increasing
costs and restrict the ability
to manufacture our metered
dose inhaler (MDI) products
that use a high GWP
propellant (HFA134a).
Current trajectory
scenario
õ ¢
We are investing in a R&D programme to
redevelop our Ventolin (salbutamol) inhaler by
transitioning to a lower-carbon propellant that
could potentially reduce its carbon emissions
by approximately 90%, if clinical trials are
successful. Work is underway to establish
manufacturing capability for this inhaler at our
site in Evreux, France, and at strategic contract
manufacturing partners.
We already have a portfolio of dry powder
inhaler products that don’t use propellants and
that are not affected by this risk.
The financial impact
assumes the reformulated
product is approved by
regulators and launched
according to plan.
Future regulatory policy
responses to address climate
change could lead to the
imposition of carbon taxes
by countries where we
manufacture and source
goods from third parties.
Net zero scenario
õ p
ò p
Low-carbon
scenario
õ p
ò £
Current trajectory
scenario
õ £
ò £
We are managing this risk by reducing our
value chain carbon emissions in line with our
transition plan described above. We’ll review
our carbon tax modelling in 2025 to account
for changes to announced commitments to
introduce carbon taxes since 2022.
The financial impact
assumes we deliver an
80% reduction in carbon
emissions by 2030 and
assumes carbon tax values
are as per IEA scenarios,
supplemented by data from
policy pledges for a small
number of countries.
Key
Å
Short term
£
Low financial impact <£100m
õ
Medium term
§
Medium financial impact £100m–£250m
ò
Long term
¢
High financial impact >£250m
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Opportunity
Risk description
Potential impact
Our response
Assumptions
At COP28 in November 2023,
more than 70 countries
committed to provide low-
carbon healthcare systems.
This could lead to increasing
demand for low-carbon
medicines and vaccines.
No financial
impact available
We’re reducing our own Scope 1 & 2 carbon
emissions, which in turn reduces the Scope 3
footprint of our customers and suppliers.
We’re investing in a R&D programme to
redevelop our Ventolin (salbutamol) inhaler by
transitioning to a lower-carbon propellant that
could potentially reduce its carbon emissions
by approximately 90%, if clinical trials are
successful.
From 2024, all newly developed or acquired
medicines will have Sustainable Design Plans
applied.
We are a founding member of the Circularity
in Primary Pharmaceutical Packaging
Accelerator (CiPPPA), which brings together
partners from across the sector to address the
sustainable packaging of medicines and
vaccines.
We are playing a leading role in developing
a new standard to measure and report the
environmental footprints of pharmaceutical
products as part of the Pharma LCA
consortium.
We’re developing methodologies to calculate
the environmental impact of products and
vaccines from a patient care pathway
perspective.
.
Key
Å
Short term
£
Low financial impact <£100m
õ
Medium term
§
Medium financial impact £100m<£250m
ò
Long term
¢
High financial impact >£250m
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Metrics and targets
The metrics we use to assess climate-related risks and opportunities in line with our strategy and risk management process.
a. Disclose the metrics used by
the organisation to assess climate
risks and opportunities in line
with its strategy and risk
management process
We have considered the key metrics following the TCFD guidance of Tables A1.1 and A1.2 as well as the
metrics consistent with cross-industry, climate-related metrics. Based on that, our strategic metrics are:
– Scope 1 & 2 emissions (market-based and location-based approach), described in the table below
– Scope 3 emissions, described in the table below
– % renewably sourced electricity, described in the table below
– Total supplied water, described in the table below
– Total waste and materials, described in the table below
– Responsible Business Performance Rating, as part of our senior leaders’ remuneration policy - see
on page 146
– Sites that have achieved water stewardship, described in the table below
Our Responsible Business Performance Report includes more metrics used to support the strategic
metrics listed above.
b. Disclose Scope 1, 2 and if
applicable Scope 3 GHG
emissions and related risks
In energy and carbon emissions, see table below:
– Scope 1 emissions from energy
– Scope 1 emissions from other sources
– Scope 2 emissions (market-based)
– Scope 2 emissions (location-based)
– Scope 3 emissions metrics
– Scope 1 & 2 emissions intensity metrics
Prioritised physical and transition risks are included in the Risk Table above.
c. Describe the targets used by
the organisation to manage
climate-related risks and
opportunities and performance
against targets
Our targets (measured against a 2020 baseline where applicable) are:
– 80% absolute reduction in greenhouse gas emissions from a 2020 baseline, across all scopes,
and investment in nature-based solutions for the remaining 20% of our footprint by 2030
– Net zero greenhouse gas emissions across our full value chain by 2045: 90% absolute reduction
in emissions from a 2020 baseline, across all scopes, and all residual emissions neutralised
– 100% renewable electricity by 2025 (Scope 2)
– Achieve good water stewardship at 100% of our sites by 2025
– Reduce overall water use in our operations by 20% in 2030
– Zero operational waste1 by 2030
– Be water neutral in our own operations and at key suppliers in water-stressed regions by 2030
The performance against our targets is on page 51.2
(1) Including a 20% reduction in routine hazardous and non-hazardous waste. Target updated in 2024 to remove specific reference to the elimination of
operational single-use plastics. This work has been integrated into the overall operational waste target
(2) See Basis of Reporting 2024 in the ESG resources section of gsk.com (https://www.gsk.com/en-gb/responsibility/esg-resources/) for detailed
methodologies for measuring and reporting all GSK environmental KPIs
We commit to a net zero, nature positive, healthier planet, with ambitious goals set for 2030 and 2045 across our entire
value chain. We report progress in reducing Scope 1 & 2 carbon emissions, Scope 3 carbon emissions, energy use, %
renewable energy, water and waste annually towards these targets in the Environment section on page 51 and in our public
responses to the CDP Climate, Water and Forest questionnaires.
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Metrics data
Carbon emissions1
Carbon emissions ‘000 tonnes CO2e
2024
2023
2022
Scope 1 emissions (from energy)
289
301
320
Scope 1 emissions (other2)
232
279
306
Scope 2 emissions (market-based)
444
64
88
Scope 2 emissions (location-based)
2344
240
265
Scope 3 emissions3
–
8,983
8,995
UK Scope 1 & 2 emissions
92
102
111
Other metrics
2024
2023
2022
Scope 1 & 2 emissions from energy/sales revenue (tonnes CO2e/£m)
10.6
12.0
13.9
Scope 1 & 2 emissions from energy/FTE (tonnes CO2e/FTE)
4.9
5.2
5.9
Total energy used (GWh)
2,5774
2,636
2,759
UK energy used (GWh)
658
711
735
% renewably sourced electricity
90%
83%
73%
Total supplied water million m3
7.04
7.4
7.5
Total supplied water in areas of high water stress million m3
0.34
0.3
0.3
Total waste ‘000 metric tonnes
47.3
49.7
50.2
% sites that have achieved water stewardship
100%
100%
100%
(1) Carbon emissions are calculated according to the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (revised edition). We use
market-based Scope 2 emissions for reporting purposes and report Scope 3 emissions across all 15 categories in our Responsible Business Performance
Report.
(2) ‘Other’ refers to emissions from sales force vehicles, propellant emissions released during manufacture of inhalers (the majority of propellant emissions,
released during patient use, are included in Scope 3 carbon emissions), on-site waste, or wastewater treatment and refrigerant gas losses
(3) We collect and publish Scope 3 data across 15 categories. The most recent Scope 3 data available is for 2023 as the process of compiling the 2024 data is
not yet complete, except for 2024 Scope 3 emissions from patient use of inhalers, which are disclosed in the Responsible Business Performance Report. We
will publish this data once it becomes available and it will be included in the 2025 Responsible Business Performance Report
(4) We ask external assurance provider, Deloitte, to provide limited assurance in accordance with ISAE3000 and ISAE3410 on GHG statements. Scope 1 assured
as a total of 521 thousand tonnes CO2e. Methodologies for reporting and measurements are provided in the Basis of Reporting 2024 in the ESG resources
section of gsk.com (https://www.gsk.com/en-gb/responsibility/esg-resources/)
Nature-related financial disclosures
We’re committed to contributing to a nature positive world
by avoiding and reducing nature impacts, as well as
protecting and restoring nature.
Human health relies on the fundamentals of nature: clean
air and fresh water. Nature loss has a range of negative
impacts on health, for example, reduced air quality
increases the incidence and severity of respiratory diseases
and habitat degradation and deforestation are increasing
the risk of new human pathogens and pandemics.
To protect human health and get ahead of disease,
we need to protect nature.
We’re members of several working groups of the Taskforce
on Nature-related Financial Disclosures (TNFD) and were
involved in developing the TNFD Additional sector guidance
– Biotechnology and pharmaceuticals publication. We’ve
committed to make a full disclosure against the TNFD
framework in early 2026 and we’re now piloting the
framework for a second year.
Governance
The Board’s oversight of nature-related dependencies,
impacts, risks and opportunities
As described on page 67.
Management’s role in assessing and managing nature-
related dependencies, impacts, risks and opportunities
As well as the disclosure on page 67, the Sustainability
Council reviewed the results of the pilot process to set
Science Based Targets for Nature (SBTN).
A new Nature Working Group chaired by the Nature Lead
was established to support the Sustainability Council and
Steering Committee. It’s attended by representatives of
Procurement, Manufacturing, Communications and
Government Affairs, and subject matter experts.
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Our human rights policies, engagement activities and
oversight with respect to indigenous peoples, local
communities, and other affected stakeholders
We publish our position on human rights on gsk.com. We
have a responsibility to respect human rights through our
engagements with patients, our employees, our suppliers
and the communities in which we live and operate.
We’ll continue to develop policies and procedures related to
stakeholders’ engagement and human rights specifically in
relation to our assessment of impacts and our action on
nature.
– As nature investments are always context-dependant, it is
key for us to work with expert partners and NGOs to make
sure project implementation includes local experts and
local communities
– Before we make decisions on protection and restoration
projects, we run a human rights assessment as part of
our broader due diligence. This allows us to understand
the local context and history, the process that partners
use or plan to use to engage and involve local
communities (including Free, Prior and Informed Consent
(FPIC) and grievance mechanisms) and how benefits will
be shared
– We’ve developed a toolkit to support project developers,
investors and buyers to understand and enable health
outcomes from protecting and restoring nature
Strategy
The nature-related dependencies, impacts, risks and
opportunities we’ve identified over the short, medium and
long term
Freshwater
Freshwater is essential for the production of our medicines
and vaccines.
Our primary operational impact on water availability is
through our own manufacturing sites and key suppliers
located in areas of water stress.
Releases of Active Pharmaceutical Ingredients are a priority
focus for us regarding water quality.1 Pharmaceutical
residues may sometimes pass into the environment as
part of the normal biological process following patient use.
To a lesser extent, pharmaceuticals can also enter the
environment from unused medical products or factory
discharges.
There are concerns that long-term exposure to
pharmaceuticals in the environment can pose a risk to
environmental species, including aquatic life. The presence
of antibiotics in the environment, and its potential impact
on driving antibiotic resistance as well as reducing microbial
biodiversity, is a growing concern for many stakeholders2.
Land
Our primary dependency and impact on land is due to the
natural materials we source, some of which derive from
land-based commodities, a key driver of deforestation and
land use change, globally.
Oceans
Our impacts and dependencies on oceans come primarily
from two marine-derived materials that are part of
manufacturing medicines and vaccines, specifically
horseshoe crab blood and squalene.
Atmosphere
Our primary impact on air quality is from combustion of
fossil fuels in our operations and supply chain.
The effect nature-related dependencies, impacts, risks and
opportunities have on our business model, value chain,
strategy and financial planning, as well as any transition
plans or analysis in place
We’re committed to contributing to a nature-positive world
in line with the Global Biodiversity Framework to halt and
reverse biodiversity loss by 2030. Our approach is through
four focus areas, which are aligned to the ‘realms’ of nature
as defined by TNFD and SBTN – freshwater, land, oceans
and atmosphere – including the biodiversity of living species
in them.
We’re taking action across the four realms of nature in these
ways:
– Avoiding and reducing our impacts on nature across our
full value chain
– Investing in the protection and restoration of nature
– Helping to drive collective action for nature
We set targets in 2020 with a focus on the realms of nature,
as well as supportive targets on waste and materials. We
report progress against our nature plan and targets on
page 51.
The resilience of our strategy to nature-related risks and
opportunities, taking into consideration different scenarios
We manage organisational resilience to nature related risks
through the implementation of our sustainability
programme. We’re working to develop nature scenarios in
line with emerging guidance.
The locations of our direct operations that meet the criteria
for priority locations
Freshwater
We’ve identified five of our sites located in three water-
stressed basins in Algeria, India and Pakistan, which we’ve
prioritised for investment in water neutrality.
Land
We’ve identified six priority sites in Belgium, France, Spain,
the US and UK based on proximity to Protected Areas and
Key Biodiversity Areas.
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(1) For more information see our public policy: https://www.gsk.com/
media/8867/gsk-position-on-pharmaceuticals-in-the-environment-
march-2022.pdf
(2) Read more about our position on antimicrobial resistance in our public
policy
Risk and impact management
Our processes for identifying, assessing and prioritising
nature-related dependencies, impacts, risks and
opportunities in our direct operations and value chain
We’re following the TNFD LEAP (Locate, Evaluate, Assess
and Prepare) methodology to better understand our
nature-related risks and opportunities. We’re part of the first
group of companies to be working with the Science Based
Target Network (SBTN) in a pilot to set validated science-
based targets for nature, starting with freshwater.
Our processes for managing nature-related dependencies,
impacts, risks and opportunities
We manage nature-related dependencies, impacts, risks
and opportunities by implementing our sustainability
programme. We set targets in 2020 with a focus on the
realms of nature, as well as supportive targets on waste and
materials.
Water
All our sites complete a GSK water stewardship assessment
and implement action plans to comply with our standard.
For our sites located in water-stressed areas, we aim to
secure certification under the Alliance for Water
Stewardship standard.
Our sites located in water-stressed areas are prioritised for
catchment-level projects of water replenishment,
restoration, and regeneration activities that aim to deliver
measurable environmental and social outcomes.
We’re committed to making sure discharges from the
manufacturing of active pharmaceutical ingredients (API),
including antibiotics, don’t adversely affect people or the
environment.
Land
We’re implementing land management action plans across
our estate which aim to deliver a biodiversity improvement
with a focus on our highest-priority sites.
We have an Eco-design programme to reduce the impacts
of all our products and packaging and all newly developed
or acquired medicines now have Sustainable Design Plans
applied. These use industry-leading product sustainability
methodologies to make sure we consider environmental
impact at every step of the product decision-making
process, from product design to disposal.
We’ve set ambitious standards for suppliers who provide us
with materials that are highly dependent on nature.
We have roadmaps with an aim to achieve 100% certified
paper and palm oil by 2025. We’ve engaged with
associated suppliers to map the full supply chains involved,
understand existing sustainability standards, identify gaps
and establish action plans.
We’re a founding member of the Circularity in Primary
Pharmaceutical Packaging Accelerator (CiPPPA), a
collaborative initiative across the pharmaceutical supply
chain to develop and deploy solutions for the recycling of
primary pharmaceutical packaging.
Oceans
We’re working to reduce the volume of marine-derived
materials, for example through process efficiencies, and are
looking to transition to alternative materials.
In the meantime, we’re working to implement our Marine
Sustainable Sourcing Standard, which outlines the specific
requirements that we ask our suppliers of marine-derived
materials to follow.
Atmosphere
In 2024, we completed an in-depth air quality assessment
with the Stockholm Environment Institute (SEI) and the
University of York, using the methodology outlined in the
Practical Guide for Business written by the Climate & Clean
Air Coalition and SEI.
We’re managing our impacts on air pollution by
transitioning to renewable electricity and an electric fleet,
and increasing the volumes of waste sent to circular routes
of disposal.
We’re members of the Alliance for Clean Air through the
Clean Air Fund (CAF) and the World Economic Forum,
which aims to drive corporate action on clean air to
accelerate climate action and create healthy communities
around the world.
How our processes for identifying, assessing, prioritising
and monitoring nature-related risks are integrated into
and inform our overall risk management processes
We manage any identified impacts, dependencies and
nature-related risks through our sustainability governance
structures. We’re working to develop nature scenarios in line
with emerging guidance.
Metrics and targets
We report performance against three nature metrics which
are part of our Responsible Business performance metric.
Our targets for managing our nature commitments are in
the table below.
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Realm
Key performance indicator
Freshwater
Average of the percentage of GSK sites and suppliers compliant with wastewater active pharmaceutical
ingredient (API) limits and the percentage of sites and suppliers that are compliant with the AMR Industry
Alliance Common Antibiotic Manufacturing Framework and discharge limits
Land
Percentage of paper packaging and palm oil certified
Waste and materials
Operational waste reduction at our sites
We set these targets for managing our nature commitments:
Focus area
Target
Freshwater
– 100% of our sites to achieve good water stewardship by 2025 and reduce overall water use by 20% by 2030
– Be water neutral in own operations and at key suppliers in water-stressed regions by 2030
– Achieve zero impact API levels1 for all sites and key suppliers by 20302
Land
– Positive impact on biodiversity3 at all GSK owned sites by 2030
– 100% of key4 naturally-derived materials sustainably sourced and deforestation free by 20302,
Oceans
– 100% of marine-derived materials sustainably sourced by 2030
Atmosphere
– 100% renewable electricity by 2025 (Scope 2)2
– 80% reduction in carbon emissions across our full value chain by 20302
– Net zero carbon emissions across our full value chain by 20452
Waste and materials
– Zero operational waste5 by 20302,6
– 10% waste reduction from supply chain by 2030
– 25% environmental impact reduction for our products and packaging by 2030
(1) Below the Predicted No-Effect Concentration level, as defined by the AMR Alliance and API Wastewater discharge limits
(2) Linked with the remuneration of our senior leaders
(3) Using the Natural England Biodiversity Net Gain methodology
(4) Definition clarified in 2024 to reflect priority materials
(5) Including a 20% reduction in routine hazardous and non-hazardous waste
(6) Target updated in 2024 to remove specific reference to the elimination of operational single-use plastics. This work has been integrated into the overall
operational waste target
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Nature-related financial disclosures continued
79
The following aligns to the non-financial reporting requirements contained in sections 414CA and 414CB of the Companies
Act 2006.
Description of the business model
Business model
2
Social matters
Access
48
Global health and health security
50
Employees
Inclusion and diversity
54
Ethical standards
55
Our culture and people
58
Employee engagement
58
Wellbeing and development
58
Human rights
Our commitment to human rights
55
Working with third parties
56
Using data and AI responsibly
56
Anti-bribery and corruption
Ethical standards
55
Reporting and investigating
concerns
55
Environmental matters
Environment
51
Climate-related financial
disclosures
67
Nature-related financial disclosures 76
Policy, due diligence and outcomes
Risk management
62
Viability statement
81
Audit & Risk Committee report
139
Principal risks and uncertainties
307
Non-financial key performance
indicators
2024 performance and key
performance indicators
4
Our policies
All of our public policies, codes and
standards are available on gsk.com
Employees by gender
Male
Female
Total
Board1
6
6
12
Management1,2
8,735
9,046
17,781
All employees3
35,413
33,216
68,629
(1) Headcounts as of 31 December 2024
(2) Senior managers as defined in the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013
(3) ‘Total’ calculated as full-time equivalent employees (FTEs) as of 31 December 2024. ‘Male’ and ‘female’ calculated by applying ‘all employees’ gender
diversity percentages to ‘total’ FTE number
Our section 172(1) statement
Company directors are required by law to promote the success of their organisation for the benefit of both shareholders
and their wider stakeholders, including employees, suppliers and the community. Information on the issues, factors and
stakeholders that the Board considers relevant to complying with Section 172 (a) to (f) of the Companies Act 2006 can
be found on page 128.
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Non-financial and sustainability information statement
80
In accordance with provision 31 of the 2018 revision of the
Code, GSK has assessed the prospects of the Group over
a longer period than the 12 months required by the ‘Going
Concern’ provision. The Directors confirm that they have
a reasonable expectation that GSK will continue to operate
and meet its liabilities, as they fall due, over the next three
years. The Directors’ assessment has been made with
reference to GSK’s current position and prospects, our
strategy, the Board’s risk appetite and GSK’s principal risks
and how these are managed, as detailed on pages 62 to 66
in the Strategic report.
The Board reviews our internal controls and risk
management policies and approves our governance
structure and code of conduct. It also appraises and
approves major financing, investment and licensing
decisions, and evaluates and monitors the performance
and prospects of GSK as a whole. The focus is largely on
improving our long-term financial performance through
delivery of our company’s business strategies and aligned
priorities.
The Board reviews GSK’s strategy and makes significant
capital investment decisions over a long-term time horizon,
based on a multi-year assessment of return on capital, the
performance of the company, and the market opportunities
in medicines and vaccines. This approach is aligned to
GSK’s model of achieving balanced growth by investing in
high-quality, innovative products for patients and
healthcare providers. However, since many internal and
external parameters become increasingly unpredictable
over longer time horizons, GSK focuses its detailed, bottom-
up Plan on a three-year cycle. The Plan is reviewed at least
annually by the Directors, who approve business forecasts
showing expected financial impact. The Directors believe
that a three-year assessment period for the Viability
statement is most appropriate as it aligns with the Group’s
well established business planning processes that balance
the long-term nature of investments in medicines and
vaccines with an assessment of the period over which
analysis of near-term business performance is realistically
visible.
The Plan has been stress tested in a series of robust
operational and principal risk downside scenarios as part
of the Board’s review on risk. The Plan assumes the next
several years to be challenging for the healthcare industry
with continued pressure on pricing of pharmaceuticals and
uncertain economic conditions prevailing across many
markets in which GSK operates. GSK assumes no premature
loss of exclusivity for key products over the period and for
all anticipated launches to proceed as planned.
The downside scenarios consider GSK’s cash flows,
sustainability of dividends, funding strategy, insurance
provision and recovery as well as other key financial ratios
over the period. These metrics have been subject to
sensitivity analysis, which involves flexing a number of the
main assumptions underlying the forecasts both individually
and in combination, along with mitigating actions that
could realistically be taken to avoid or reduce the impact
or occurrence of the underlying risk.
The following hypothetical downside scenarios have been
evaluated:
Scenario 1: Business performance risks. These include key
performance risks, including lower sales from uptake of new
and existing medicines and vaccines, including regulatory
risks, greater adverse impact from generic competition and
other competitive launches to other GSK products, as well as
possible supply and manufacturing challenges.
Scenario 2: External and macroeconomic risks. This scenario
reflects incremental risks to the business driven by outside
factors, such as more intense competition, increased pricing
pressure in both the US and Europe and the potential
impact of material negative changes in the macro
economic and healthcare environment.
Scenario 3: Principal risks. This scenario includes a severe
assessment of the potential loss impact from the principal
risks related to patient safety, product quality, supply chain
continuity, information and cyber security and
environmental harm as well as anti-bribery and corruption
and any consequent regulatory actions, fines or significant
litigation, all of which could fundamentally threaten our
operations. These risks are managed through mitigating
activities described on pages 307 to 318.
Scenario 4: Put option exercise. This scenario evaluates
the additional funding requirements assuming the earliest
potential exercise of the outstanding put option held by
Pfizer Inc.
The three-year review also makes certain assumptions
about the normal level of capital recycling likely to occur
and considers whether additional financing facilities will
be required and the respective level of funding flexibility
and headroom.
The results of this stress testing show that certain
combinations of these hypothetical scenarios could increase
funding demands on GSK and require mitigating changes
to the Group’s funding strategy. However, in light of the
liquidity available to the Group and based on this analysis,
the Directors have a reasonable expectation that, even
under these most severe stress tests, the Group will be able
to continue in operation and meet its liabilities as they fall
due over the three-year period of assessment.
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Viability statement
81
Group financial
review
In this section
Summary full year results
83
Financial performance summary
86
Reporting framework
87
Financial performance
91
Adjusting items
98
Cash generation and conversion
102
Financial position and resources
103
Approach to tax
108
Treasury policies
109
Critical accounting policies
110
GSK Annual Report 2024
82
Summary full year results
Full year
2024
£m
Growth
AER
%
Growth
CER
%
Full year
2023
£m
Full year
2022
£m
Results summary
Turnover
31,376
3
7
30,328
29,324
Turnover excluding COVID-19 solutions
31,364
4
8
30,134
26,951
Total operating profit
4,021
(40)
(33)
6,745
6,433
Total operating margin
12.8%
(9.4ppts)
(8.3ppts)
22.2%
21.9%
Total EPS
63.2p
(48)
(40)
121.6p
110.8p
Core operating profit
9,148
4
11
8,786
8,151
Core operating margin
29.2%
0.2ppts
0.9ppts
29.0%
27.8%
Core EPS
159.3p
3
10
155.1p
139.7p
Cash flow
Cash generated from operations
7,861
(3)
8,096
7,944
Free cash flow
2,863
(16%)
3,409
3,348
(2024 Financial results unless otherwise stated, growth % and commentary at CER. Ex COVID is excluding COVID-19 solutions as defined on page 90).
Continued strong momentum in 2024
In 2024, our sales were £31,376 million, an increase of 7%. This
reflected a significant growth contribution from Specialty
Medicines representing more than 80% of the growth this year
with building scale and momentum in our Respiratory,
Immunology and Oncology therapy areas, as well as ongoing
growth in our HIV portfolio. This was offset by the decline in
Vaccines sales largely due to lower demand for Arexvy. Total
operating profit decreased materially year on year to £4,021
million. The reduction primarily reflected a charge of £1.8 billion
relating to the resolution of the Zantac litigation and a higher
contingent consideration liabilities (CCL) charge driven by
improved long-term outlook of our HIV business. Core operating
profit increased 11% (with further positive impact of +2%
excluding COVID-19 solutions) to £9,148 million driven by strong
Specialty Medicines sales performance, with favourable
product and regional mix, partly offset by increased investment
in R&D and growth assets, and lower royalty income. The
reconciliation of Total to Core results is included on page 98.
Total and core cost of sales as a percentage of sales decreased
in the full year reflecting price and channel mix benefits as well
as ongoing mix benefits in higher margin Specialty Medicines
products and supply chain efficiencies.
Total and core SG&A growth was driven by continued
disciplined investment to support global market expansion and
disease awareness for key assets including Arexvy, Nucala,
Shingrix, Jemperli and long-acting HIV medicines. Total SG&A
also reflected the increase in Significant legal costs of £1.8
billion in relation to Zantac litigation costs.
The decrease in the full year Total EPS was primarily due to the
Zantac settlement and higher CCL charges. Core EPS grew 10%
overall (with further positive impact of +2% excluding COVID-19
solutions) driven by growth in core operating profit as well as
lower finance costs, partly offset by a higher effective taxation
rate and higher non-controlling interests. The effective adjusted
tax rate was 15.5% in line with 2023 and our guidance.
2024 operating margins
Total operating profit margin was 12.8%. This was lower in 2024
due to the charge of £1.8 billion for the Zantac settlement and
higher CCL charges. Core operating profit margin was 29.2%
benefiting from strong Specialty Medicines sales performance,
with favourable product and regional mix, partly offset by
increased investment in R&D and growth assets, and lower
royalty income. It also included a favourable impact from the
reversal of the legal provision for the Zejula royalty dispute,
following a successful appeal in Q1 2023.
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Group financial review
83
Our 2024 performance demonstrates the transformation of the business.
Sales grew 7% at CER to over £31 billion, up 8% at CER excluding
COVID-19 solutions – with strong growth and increasing contribution
from Specialty Medicines, more than offsetting headwinds in Vaccines.
Core operating profit grew 11% with core EPS growing 10% both at CER
and with further positive impact of +2% excluding COVID-19 solutions.
The 2024 core operating margin improved to 29.2%, up 130 basis points
year on year on a CER basis excluding COVID-19 solutions. This level of
performance delivered two upgrades to our guidance in 2024 and
supported the increased dividend of 61p per share for the full year. We
resolved the vast majority of the Zantac litigation in 2024 and have now
commenced our £2 billion share buyback programme, which will be
completed over the next 18 months.
2024 cash flow performance
Our total full year Cash Generated From Operations (CGFO)
was £7,861 million including £672 million settlement payments
relating to the resolution of Zantac. Excluding this impact we
continued our track record of improving cash every year with
CGFO increasing by £0.4 billion, totalling £8,533 million before
the impact of the Zantac settlement. This improvement
primarily reflected the increase in core operating profit,
together with favourable working capital, largely due to lower
receivables and lower pension contributions, partly offset by
lower other payables due to reduced rebates and returns.
Net Debt improvement
Our net debt position further decreased to £13 billion by the end
of 2024. We look to deploy funds to enhance growth and
deliver attractive shareholder returns. We started the year with
net debt of £15 billion, with strong free cash generation and the
monetisation of our stake in Haleon plc, which supported £3.6
billion of investment in targeted business development and
capital expenditure, plus £2.4 billion returned to shareholders
via the dividend.
Capital deployment supports business growth and shareholder returns
(1) Free Cash Flow (FCF) is £2.9bn, including the capital expenditure net of disposal proceeds for plant, property & equipment (£1.3bn) and intangibles (£1.5bn),
included in business development above and the Zantac settlement payment of £0.7bn
(2) Business development in the above chart includes net intangible capex, net equity investments and investments in associates
(3) Other includes dividend and distribution income, exchange on net debt and other financing items
(4) Settlement payments relating to the Zantac litigation are still expected to total £1.9bn with £0.7bn paid to date and £1.2bn expected to be paid in Q2 2025
Capital allocation framework to support
investment and returns
Priority is to invest for growth, coupled with attractive
shareholder returns
(1) £2bn share buyback programme to be completed over 18 months
Our capital allocation framework to support
investment and returns
Our capital allocation framework means our first priority
remains to invest in the business, with capital allocated towards
development of the pipeline, both organic and targeted
business development.
We also remain committed to delivering attractive returns to
shareholders and pursuing a progressive dividend policy,
guided by a 40 to 60 percent pay-out ratio through the
investment cycle. In setting its dividend policy, GSK considers
the priorities of the Group and its investment strategy for
growth, alongside the sustainability of the dividend.
Consistent with this, and reflecting strong business performance
during the year, GSK declared an increased dividend of 61p per
share for the full year 2024. The expected dividend for 2025 is
64p.
In the event of surplus cash, the excess would be considered for
further returns to shareholders. We remain committed to
maintaining a balance sheet with a strong investment grade
credit rating.
Given the significant transformation since the demerger, we
now have a strong balance sheet, which gives us a high level of
flexibility for the acceleration of organic investments and further
business development, whilst also enabling a step up in
shareholder returns. We expect to augment our dividend with a
£2 billion share buyback programme to be completed over the
next 18 months.
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Group financial review continued
Summary full year results continued
84
2025 guidance
For 2025, we expect another year of meaningful growth for GSK,
our guidance is provided at CER. Turnover is expected to
increase between 3 to 5 per cent and Core operating profit is
expected to increase between 6 to 8 per cent. Core earnings
per share is expected to increase between 6 to 8 per cent.
This guidance is supported by the following turnover
expectations for full year 2025:
– For Specialty Medicines, we expect a low double-digit per
cent growth
– For Vaccines, we expect sales will decrease by a low single-
digit per cent
– For General Medicines, we expect sales will be broadly stable
GSK expects to deliver leverage at a gross margin level due to
improved product mix from Specialty Medicines growth and
continued operational efficiencies. In addition, GSK anticipates
further leverage in Operating profit as we continue to take a
returns-based approach to SG&A investments. R&D is expected
to increase broadly in line with sales as we invest for future
growth.
Core earnings per share is expected to increase between 6 to 8
per cent at CER, in line with Core operating profit growth,
reflecting higher interest charges and the tax rate which is
expected to rise to around 17.5%, offset by the expected benefit
of up to 1% from the share buyback programme. Expectations
for non-controlling interests remain unchanged relative to 2024.
2021-26 and 2031 Outlooks at CER
By 2031, GSK now expects to achieve sales of more than £40
billion (previously >£38 billion) on a risk-adjusted basis and at
CER. This further increase reflects the inclusion of Blenrep, the
significant phase III progress since last year and multiple launch
opportunities in the 2025 to 2031 period.
As before, we have further upside potential from our early-stage
pipeline and prospective business development.
There is no change to our outlooks for 2021-2026. GSK
continues to expect sales to grow more than 7% on a CAGR
basis and Core operating profit to increase more than 11%, on
the same basis. Core operating profit margin in 2026 continues
to be expected to be more than 31%.
All expectations, guidance and outlooks regarding future
performance and dividend payments should be read together
with ‘Guidance and outlooks, assumptions and cautionary
statements’ on inside back cover. These outlooks are provided
at CER and exclude any contribution from COVID-19 related
solutions.
Currency impact
If exchange rates were to hold at the closing rates on 29
January 2025 ($1.24/£1, €1.19/£1 and Yen 193/£1) for the rest of
2025, the estimated impact on 2025 Sterling turnover growth
for GSK would be +1% and if exchange gains or losses were
recognised at the same level as in 2024, the estimated impact
on 2025 Sterling Core Operating Profit growth for GSK would be
+2%.
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Group financial review continued
Summary full year results continued
85
Financial performance summary
The Total results of the Group are set out below.
2024
2023
Growth
£m
% of
turnover
£m
% of
turnover
£%
CER%
Turnover
31,376
100
30,328
100
3
7
Cost of sales
(9,048)
(28.8)
(8,565)
(28.2)
6
8
Gross profit
22,328
71.2
21,763
71.8
3
7
Selling, general and administration
(11,015)
(35.1)
(9,385)
(30.9)
17
20
Research and development
(6,401)
(20.4)
(6,223)
(20.5)
3
5
Royalty income
639
2.0
953
3.1
(33)
(33)
Other operating income/(expense)
(1,530)
(4.9)
(363)
(1.3)
>(100)
>(100)
Operating profit
4,021
12.8
6,745
22.2
(40)
(33)
Net finance costs
(547)
(677)
Share of after tax profits/(losses) of associates and joint ventures
(3)
(5)
Profit/(loss) on disposal of interest in associates and joint ventures
6
1
Profit before taxation
3,477
6,064
(43)
(34)
Taxation
(526)
(756)
Profit after taxation
2,951
5,308
(44)
(36)
Total profit attributable to non-controlling interests
376
380
Total profit attributable to shareholders
2,575
4,928
2,951
5,308
(44)
(36)
Total earnings per share (pence)
63.2p
121.6p
(48)
(40)
Total earnings per ADS (US$)
1.62
3.02
The Core results for the Group are set out below. Reconciliations between Total results and Core results for 2024 and 2023 are set
out on pages 98 to 99.
2024
2023
Growth
£m
% of
turnover
£m
% of
turnover
£%
CER%
Turnover
31,376
100
30,328
100
3
7
Cost of sales
(7,870)
(25.1)
(7,716)
(25.4)
2
4
Selling, general and administration
(8,974)
(28.6)
(9,029)
(29.8)
(1)
2
Research and development
(6,023)
(19.2)
(5,750)
(19.0)
5
7
Royalty income
639
2.0
953
3.2
(33)
(33)
Core operating profit
9,148
29.2
8,786
29.0
4
11
Core profit before taxation
8,613
8,112
6
13
Taxation
(1,462)
(1,257)
16
24
Core profit after taxation
7,151
6,855
4
11
Core profit attributable to non-controlling interest
654
572
Core profit attributable to shareholders
6,497
6,283
Core profit after taxation
7,151
6,855
4
11
Core earnings per share (p)
159.3p
155.1p
3
10
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Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Group financial review continued
86
Reporting framework
Total and Core results
The Group financial review discusses the operating and
financial performance of the Group, its cash flows and financial
position and our resources. The results for each year are
compared primarily with the results of the preceding year.
Total results
Total reported results represent the Group’s overall
performance.
GSK made one update to its reporting framework in Q1 2024
which was to change the description of Adjusted results to Core
to align with European peers in the pharmaceutical industry but
with no change to the basis or figures. In Q2 2024 an update
was made to the definition of Core results to exclude amounts
greater than £25 million from the foreign currency translation
reserve which are reclassified to the income statement upon the
liquidation of a subsidiary. There is no change to Total Results.
GSK also uses a number of adjusted, non-IFRS, measures to
report the performance of its business. Core results and other
non-IFRS measures may be considered in addition to, but not
as a substitute for or superior to, information presented in
accordance with IFRS. Core results are defined below and other
non-IFRS measures are defined on page 88.
GSK believes that Core results, when considered together with
Total results, provide investors, analysts and other stakeholders
with helpful complementary information to understand better
the financial performance and position of the Group from
period to period, and allow the Group’s performance to be
more easily compared against the majority of its peer
companies. These measures are also used by management for
planning and reporting purposes and when determining
compensation. They may not be directly comparable with
similarly described measures used by other companies.
GSK encourages investors and analysts not to rely on any
single financial measure but to review GSK’s Annual Reports,
including the financial statements and notes, in their entirety.
GSK is committed to continuously improving its financial
reporting, in line with evolving regulatory requirements and best
practice. In line with this practice, GSK expects to continue to
review and refine its reporting framework.
Core results
Core results exclude the following items in relation to our
operations from Total results, together with the tax effects of all
of these items:
– amortisation of intangible assets (excluding computer
software and capitalised development costs)
– impairment of intangible assets (excluding computer
software) and goodwill
– Major restructuring costs, which include impairments of
tangible assets and computer software, (under specific
Board approved programmes that are structural, of a
significant scale and where the costs of individual or related
projects exceed £25 million) including integration costs
following material acquisitions
– transaction-related accounting or other adjustments related
to significant acquisitions
– proceeds and costs of disposals of associates, products
and businesses; significant settlement income; significant
legal charges (net of insurance recoveries) and expenses on
the settlement of litigation and government investigations;
other operating income other than royalty income, and other
items including amounts reclassified from the foreign
currency translation reserve to the income statement upon
the liquidation of a subsidiary where the amount exceeds £25
million
Costs for all other ordinary course smaller scale restructuring
and legal charges and expenses are retained within both Total
and Core results.
As Core results include the benefits of Major restructuring
programmes but exclude significant costs (such as
amortisation of intangible assets except for computer software
and capitalised development costs, significant legal, major
restructuring and transaction items), they should not be
regarded as a complete picture of the Group’s financial
performance, which is presented in its Total results. The
exclusion of other Adjusting items may result in Core earnings
being materially higher or lower than Total earnings. In
particular, when significant impairments, restructuring charges
and legal costs are excluded, Core earnings will be higher than
Total earnings.
GSK has undertaken a number of Major restructuring
programmes in response to significant changes in the Group’s
trading environment or overall strategy or following material
acquisitions. Within the Pharmaceuticals sector, the highly
regulated manufacturing operations and supply chains and
long lifecycle of the business mean that restructuring
programmes, particularly those that involve the rationalisation
or closure of manufacturing or R&D sites, are likely to take
several years to complete. Costs, both cash and non-cash, of
these programmes are provided for as individual elements are
approved and meet the accounting recognition criteria. As a
result, charges may be incurred over a number of years
following the initiation of a Major restructuring programme.
Significant legal charges and expenses are those arising from
the settlement of litigation or government investigations that
are not in the normal course and are materially larger than
more regularly occurring individual matters. They also include
certain major legacy matters.
Reconciliations between Total and Core results, providing
further information on the key Adjusting items for 2024, 2023
and 2022, are set out on pages 98 to 100.
GSK provides earnings guidance to the investor community on
the basis of Core results. This practice is in line with peer
companies and expectations of the investor community,
supporting easier comparison of the Group’s performance with
its peers. GSK is not able to give guidance for Total results as it
cannot reliably forecast certain material elements of the Total
results, particularly the future fair value movements on
contingent consideration and put options that can and have
given rise to significant adjustments driven by external factors
such as currency and other movements in capital markets.
Strategic report
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Financial statements
Investor information
GSK Annual Report 2024
Group financial review continued
87
Historical record of Adjusting items
The reconciliations between Total and Core operating profit from continuing operations over the last three years can be
summarised as follows:
2024
£m
2023
£m
2022
£m
Total operating profit from continuing operations
4,021
6,745
6,433
Intangible amortisation
1,002
719
739
Intangible impairment
314
398
296
Major restructuring
353
382
321
Transaction-related items
1,881
572
1,750
Significant legal, divestments and other items
1,577
(30)
(1,388)
Core results
9,148
8,786
8,151
The analysis of the impact of transaction-related items on operating profit for each of the last three years is as follows:
2024
£m
2023
£m
2022
£m
Contingent consideration on former Shionogi-ViiV Healthcare JV (including Shionogi preferential dividends)
1,533
934
1,431
ViiV Healthcare put options and Pfizer preferential dividends
67
(245)
85
Contingent consideration on former Novartis Vaccines business
206
(187)
193
Contingent consideration on acquisition of Affinivax
(22)
44
17
Other adjustments
97
26
24
Transaction-related items
1,881
572
1,750
Full reconciliations between Total and Core results for 2022–2024 including continuing and discontinued operations are set out on
pages 98 to 100. Further explanations on the Adjusting items for 2024, including the Zantac settlement, are reported on page 101.
Other non-IFRS measures
CER and AER growth
In order to illustrate underlying performance, it is the Group’s
practice to discuss its results in terms of constant exchange
rate (CER) growth. This represents growth calculated as if the
exchange rates used to determine the results of overseas
companies in Sterling had remained unchanged from those
used in the comparative period. CER% represents growth at
constant exchange rates. £% or AER% represents growth at
actual exchange rates. For those countries which qualify as
hyperinflationary as defined by the criteria set out in IAS 29
‘Financial Reporting in Hyperinflationary Economies’ (Argentina
and Turkey) CER growth is adjusted using a more appropriate
exchange rate reflecting depreciation of their respective
currencies in order to provide comparability and not to distort
CER growth rates.
Compound Annual Growth Rate (CAGR)
CAGR is defined as the compound annual growth rate and
shows the annualised average rate for growth in sales and core
operating profit between 2021 to 2026 assuming growth takes
place at an exponentially compounded rate during those years.
Free cash flow
Free cash flow is defined as the net cash inflow/outflow from
continuing operating activities less capital expenditure on
property, plant and equipment and intangible assets,
contingent consideration payments, net finance costs, and
dividends paid to non-controlling interests, contributions from
non-controlling interests plus proceeds from the sale of
property, plant and equipment and intangible assets, and
dividends received from joint ventures and associates. It is used
by management for planning and reporting purposes and in
discussions with and presentations to investment analysts and
rating agencies. Free cash flow growth is calculated on a
reported basis. A reconciliation of net cash inflow to free cash
flow is set out on page 102.
Return on capital employed
Return on capital employed is calculated as total profit before
taxation as a percentage of average net assets over the year.
Total net debt
Net debt is defined as total borrowings less cash, cash
equivalents, liquid investments, and short-term loans to third
parties that are subject to an insignificant risk of change in
value. Please see Note 30 ‘Net Debt’ for the calculation of net
debt.
Total net debt/Core EBITDA ratio
Core EBITDA is defined as Total operating profit excluding
adjusting items and core depreciation and amortisation (as
described on page 106) and includes the share of after tax
losses on associates. Core depreciation is total depreciation less
depreciation arising as part of major restructuring and is
disclosed as part of adjusting items. Core amortisation arises
from computer software and internally capitalised R&D
development costs. Total Net debt is defined above. The ratio is
Total Net debt expressed as a multiple of Core EBITDA which
demonstrates a key leverage metric which assesses the strength
of the balance sheet. A reconciliation of Total operating profit
to Core EBITDA is provided on page 106.
Working capital
Working capital represents inventory and trade receivables
less trade payables.
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88
Non-controlling interests in ViiV Healthcare
Trading profit allocations
As ViiV Healthcare is a subsidiary of the Group, 100%
of its operating results (turnover, operating profit, profit after
tax) are included within the Group income statement and then
a portion of the earnings is allocated to the non-controlling
interests owned by the other shareholders, in line with their
respective equity shareholdings (Pfizer, Inc. (Pfizer) 11.7% and
Shionogi & Co. Ltd (Shionogi) 10%). Each of the shareholders,
including GSK, is also entitled to preferential dividends
determined by the performance of certain products that each
shareholder contributed. As the relative performance of these
products changes over time, the proportion of the overall
earnings allocated to each shareholder also changes. In
particular, the increasing proportion of sales of dolutegravir-
and cabotegravir-containing products has a favourable
impact on the proportion of the preferential dividends that is
allocated to GSK. Adjusting items are allocated to
shareholders based on their equity interests. GSK was entitled
to approximately 85% of the Total earnings and 83% of the
Core earnings of ViiV Healthcare for 2024.
Remeasurements of the liabilities for the preferential dividends
allocated to Pfizer and Shionogi are included within other
operating income/(expenses).
Acquisition-related arrangements
As consideration for the acquisition of Shionogi’s interest in the
former Shionogi-ViiV Healthcare joint venture in 2012, Shionogi
received the 10% equity stake in ViiV Healthcare and ViiV
Healthcare also agreed to pay additional future cash
consideration to Shionogi, contingent on the future sales
performance of the products being developed by that joint
venture, dolutegravir and cabotegravir. Under IFRS 3 ’Business
combinations’, GSK was required to provide for the estimated
fair value of this contingent consideration at the time of
acquisition and is required to update the liability to the latest
estimate of fair value at each subsequent period end. The
liability for the contingent consideration recognised in the
balance sheet at the date of acquisition was £659 million.
Subsequent re-measurements are reflected within other
operating income/(expenses) and within Adjusting items in the
income statement in each period.
Cash payments to settle the contingent consideration are
made to Shionogi by ViiV Healthcare each quarter, based on
the actual sales performance and other income of the relevant
products in the previous quarter. These payments reduce the
balance sheet liability and hence are not recorded in the
income statement, but are included in the cash flow. The cash
payments made to Shionogi by ViiV Healthcare in 2024 were
£1,190 million.
As the liability is required to be recorded at the fair value of
estimated future payments, there is a significant timing
difference between the charges that are recorded in the
Total income statement to reflect movements in the fair value of
the liability and the actual cash payments made to settle
the liability.
The cash payments are reflected in the cash flow statement
partly in operating cash flows and partly within investing
activities. All cash payments are now reflected in operating
activities. The tax relief on these payments is reflected in the
Group’s Adjusting items as part of the tax charge. The part of
each payment relating to the original estimate of the fair value
of the contingent consideration on the acquisition of the
Shionogi-ViiV Healthcare joint venture in 2012 of £659 million is
reported within investing activities in the cash flow statement
and the part of each payment relating to the increase in the
liability since the acquisition is reported within operating cash
flows.
Movements in contingent consideration payable to Shionogi
were as follows:
2024
£m
2023
£m
Contingent consideration at beginning
of the year
5,718
5,890
Remeasurement through income statement
and other movements
1,533
934
Cash payments: operating cash flows
(1,190)
(1,106)
Cash payments: investing activities
–
–
Contingent consideration at end of the year
6,061
5,718
Of the contingent consideration payable (on a post-tax basis)
to Shionogi at 31 December 2024, £1,127 million (31 December
2023: £1,017 million) is expected to be paid within one year.
Exit rights
Pfizer may request an IPO of ViiV Healthcare at any time and if
either GSK does not consent to such IPO or an offering is not
completed within nine months, Pfizer could require GSK to
acquire its shareholding. Under the original agreements, GSK
had the unconditional right, so long as it made no subsequent
distribution to its shareholders, to withhold its consent to the
exercise of the Pfizer put option and, as a result, in accordance
with IFRS, GSK did not recognise a liability for the put option on
its balance sheet. However, during Q1 2016, GSK notified Pfizer
that it had irrevocably given up this right and accordingly
recognised the liability for the put option on the Group’s
balance sheet during Q1 2016 at an initial value of £1,070
million. Consistent with this revised treatment, at the end of Q1
2016 GSK also recognised liabilities for the future preferential
dividends anticipated to become payable to Pfizer and
Shionogi on the Group’s balance sheet.
Pfizer has the right to require GSK to acquire its shareholding in
ViiV Healthcare in certain circumstances at any time. A put
option liability is therefore recorded on the Group’s balance
sheet as a current liability. It is measured on the gross
redemption basis derived from an internal valuation of the ViiV
Healthcare business.
The closing balances of the liabilities related to Pfizer’s
shareholding are as follows:
2024
£m
2023
£m
Pfizer put option
915
848
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89
Under the original agreements, Shionogi could also have
requested GSK to acquire its shareholding in ViiV Healthcare in
six-month windows commencing in 2017, 2020 and 2022. GSK
had the unconditional right, so long as it made no subsequent
distribution to its shareholders, to withhold its consent to the
exercise of the Shionogi put option and, as a result, GSK did not
recognise a liability for the put option on its balance sheet.
However, during Q1 2016, GSK notified Shionogi that it had
irrevocably given up this right and accordingly recognised the
liability for the put option on the Group’s balance sheet during
Q1 2016 at an initial value of £926 million. In Q4 2016, Shionogi
irrevocably agreed to waive its put option and, as a result, GSK
de-recognised the liability for this put option on the Group’s
balance sheet directly to equity. The value of the liability was
£1,244 million when it was de-recognised.
GSK also has a call option over Shionogi’s shareholding in ViiV
Healthcare, which under the original agreements was
exercisable in six-month windows commencing in 2027, 2030
and 2032. GSK has now irrevocably agreed to waive the first
two exercise windows, but the last six-month window in 2032
remains. As this call option is at fair value, it has no value for
accounting purposes.
Reporting definitions
Brand names and partner acknowledgements
Brand names appearing in italics throughout this document are
trademarks of GSK or associated companies or used under
licence by the Group.
Core Operating Margin
Core operating margin is Core operating profit divided by
turnover.
COVID-19 solutions
COVID-19 solutions include the sales of pandemic adjuvant
and other COVID-19 solutions principally during the year 2020 -
2023 and including vaccine manufacturing and Xevudy and the
associated costs but does not include reinvestment in R&D. This
categorisation is used by management and we believe is
helpful to investors through providing clarity on the results of the
Group by showing the contribution to growth from COVID-19
solutions during this period.
Core earnings per share excluding COVID-19
solutions
Core earnings per share excludes the impact of Commercial
Operations COVID-19 solutions for Xevudy and pandemic
adjuvant.
Core operating profit excluding COVID-19
solutions
Core operating profit excludes the impact of Commercial
Operations COVID-19 solutions for Xevudy and pandemic
adjuvant.
Discontinued operations
Consumer Healthcare was presented as a discontinued
operations from Q2 2022. The demerger of Consumer
Healthcare was completed on 18 July 2022. The Group Income
Statement and Group Cash Flow Statement distinguish
discontinuing operations from continuing operations for 2022.
General Medicines
General medicines are usually prescribed in the primary
care or community settings by general healthcare practitioners.
For GSK, this includes medicines in inhaled respiratory,
dermatology, antibiotics and other diseases.
Non-controlling interest
Non-controlling interest is the equity in a subsidiary not
attributable, directly or indirectly, to a parent.
Percentage points
Percentage points of growth which is abbreviated to ppts.
RAR (Returns and Rebates)
GSK sells to customers, both commercial and government
mandated contracts, with reimbursement arrangements that
include rebates, chargebacks and a right of return for certain
pharmaceutical products principally in the US. Revenue
recognition reflects gross-to-net sales adjustments as a result.
These adjustments are known as the RAR accruals and are a
source of significant estimation, uncertainty and fluctuation
which can have a material impact on reported revenue from
one accounting period to the next.
Risk adjusted sales
Risk adjusted sales includes sales for potential planned
launches which are risk-adjusted based on the latest internal
estimate of the probability of technical and regulatory success
for each asset in development.
Specialty Medicines
Specialty Medicines are typically prescription medicines used to
treat complex or rare chronic conditions. For GSK, this
comprises medicines in infectious diseases, HIV, Oncology,
Respiratory/Immunology and Other.
Turnover excluding COVID-19 solutions
Turnover excluding COVID-19 solutions excludes the impact of
sales of pandemic adjuvant within Vaccines and Xevudy within
Specialty Medicines related to the COVID-19 pandemic.
Management believes that the exclusion of the impact of these
COVID-19 solutions sales aids comparability in the reporting
periods and understanding of GSK’s growth including by region
versus prior periods.
Total Operating Margin
Total Operating margin is Total operating profit divided by
turnover.
Total Earnings per share
Unless otherwise stated, Total earnings per share refers to Total
basic earnings per share.
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90
Financial performance
Group turnover
Group turnover was £31,376 million in the year, up 3% at
AER, 7% at CER. Turnover grew 4% at AER, 8% CER
excluding COVID-19 solutions.
Group turnover by business
l Vaccines
£9.1bn
AER decline 7% CER decline 4%
l Specialty Medicines
£11.8bn
AER growth 15% CER growth 19%
l General Medicines
£10.4bn
AER growth 2% CER growth 6%
Group turnover by geographic region
l US
£16.4bn
AER growth 4% CER growth 6%
l Europe
£6.7bn
AER growth 2% CER growth 4%
l International
£8.3bn
AER growth 5% CER growth 11%
GSK reports results under two segments namely Commercial
Operations and Total R&D. See Note 6, ‘Turnover and segment
information’ to the consolidated financial statements for more
details.
The Commercial Operations segment has three product groups
of Vaccines, Specialty Medicines, and General Medicines.
– Vaccines products, which includes sales of Shingrix and
Arexvy
– Specialty Medicines products which includes GSK’s marketed
products for HIV, oncology, respiratory/immunology and
other specialty medicines (including Nucala)
– General Medicines products, which includes medicines in
inhaled respiratory, dermatology, antibiotics and other
diseases that are typically accessed by patients through
primary care settings
(1) Advisory Committee on Immunization Practices
(2) Centres for Disease Control and Prevention
(3) Based on data from IQVIA up until the end of Q3 2024
(4) Centers for Medicare & Medicaid Services
Vaccines
Turnover (£bn)
£9.1bn
AER decline
CER decline
-7%
-4%
29% of Group turnover
7.9
9.9
9.1
2022
2023
2024
Vaccines sales decreased primarily due to lower demand for
Arexvy related to a more limited ACIP(1) recommendation in the
US and channel inventory consumption compared to launch
year stocking in 2023. Meningitis vaccines had their strongest
year of sales to date with double-digit growth across all regions
and Established vaccines continued to grow across
International and the US. Overall, Vaccines performance was
also adversely impacted due to COVID-19 solution sales and US
CDC(2) stockpile replenishments in 2023, each impacting full
year growth by 1 percentage point.
Shingles
2024
£m
2023
£m
Growth
£%
Growth
CER%
Shingles
3,364
3,446
(2)
1
Sales of Shingrix, a vaccine against shingles, grew with ex-US
sales growth more than offsetting lower sales in the US.
The US cumulative immunisation rate reached 40%, up five
percentage points compared to 12 months earlier.(3) Sales
decreased by 18% reflecting the slowing pace of penetration of
harder-to-reach unvaccinated consumers, partially offset by
favourable pricing. Shingrix sales were also negatively impacted
by changes in retail vaccine prioritisation partly due to a
transition to a new CMS(4) rule that changed how pharmacies
process reimbursements from payers.
Shingrix grew significantly in International, driven by a national
immunisation programme in Australia and supply to our co-
promotion partner in China. In Europe, Shingrix sales growth
was driven by expanded public funding and higher uptake
across multiple countries, partly offset by lower demand in
Germany. Markets outside the US represented 56% of 2024
global sales (2023: 45%), with Shingrix launched in 52 countries.
The overwhelming majority of ex-US Shingrix opportunity is
concentrated in 10 markets where the average immunisation
rate is around 7% with significantly higher uptake in funded
cohorts.
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Meningitis
2024
£m
2023
£m
Growth
£%
Growth
CER%
Meningitis
1,437
1,260
14
18
Meningitis vaccines achieved double-digit growth. Bexsero, a
vaccine against meningitis B, achieved sales of over £1 billion
for the first time. Growth was primarily due to favourable pricing
mix and increased full year purchases from the CDC in the US,
recommendation in Germany and launch in Vietnam.
RSV
2024
£m
2023
£m
Growth
£%
Growth
CER%
RSV (Arexvy)
590
1,238
(52)
(51)
Arexvy, a RSV(1) vaccine for older adults had declining sales in
the year. US sales decreased due to lower demand partly
related to a more limited recommendation from ACIP for
individuals aged 60 to 74. Sales were also adversely impacted
by channel inventory consumption compared to the launch
year stocking in 2023. Arexvy maintained the market leading
position in retail where the overwhelming majority of doses are
administered. More than ten million US adults(2) aged 60 and
older at risk have been protected by Arexvy since the launch in
Q3 2023.
In countries outside the US, sales growth reflected uptake
following a positive recommendation in Germany, initial tender
deliveries in Saudi Arabia and new launch inventory builds in
Australia and Brazil, partly offset in the quarter by lower
demand in Canada. While Arexvy is approved in 59 markets
globally, 17 countries had national RSV vaccination
recommendations for older adults and 6, including the US, had
reimbursement programmes in place at the year end.
Influenza
2024
£m
2023
£m
Growth
£%
Growth
CER%
Influenza
408
504
(19)
(16)
Fluarix/FluLaval sales decreased driven by competitive pressure
and lower market demand primarily in the US.
Established Vaccines
2024
£m
2023
£m
Growth
£%
Growth
CER%
Established Vaccines
3,339
3,266
2
6
Established Vaccines growth reflected increased sales of
Hepatitis vaccines across all regions, higher US market share
and European demand for Boostrix and increased International
supply and US uptake of MMR/V(3) vaccines. This was partly
offset by adverse CDC stockpile movements for Rotarix and
Infanrix/Pediarix. Established Vaccine sales in 2024 included
around £130 million of non-repeating contracted sales including
divested brands which have now ceased.
(1) Respiratory syncytial virus (2) Based on data from IQVIA
(3) Measles, mumps, rubella and varicella
(4) Based on sales data from 2024 and 2023: DoT Volume Market Share -
IQVIA , GERS(France), Czech State Institute for Drug Control (SUKL), DLI
Market Intelligence (Denmark), farmINFORM (Netherlands), Cegedim
Healthcare (Romania)
Specialty Medicines
Turnover (£bn)
£11.8bn
AER growth
CER growth
15%
19%
38% of Group Turnover
11.3
10.2
11.8
2022
2023
2024
Specialty Medicines sales grew by double-digit percentages
reflecting continued growth across disease areas, with strong
performances in HIV, Respiratory/Immunology and Oncology.
HIV
2024
£m
2023
£m
Growth
£%
Growth
CER%
HIV
7,089
6,444
10
13
HIV sales continue to grow double-digits driven by strong
patient demand for long-acting injectable medicines
(Cabenuva, Apretude) and Dovato. This demand primarily
reflected a 2 percentage point(4) increase in market share
compared to the prior period which contributed 10 percentage
points of growth in 2024. The remainder of the growth was
driven by favourable in-year pricing, including the positive
impact from channel mix.
Oral 2DR
2024
£m
2023
£m
Growth
£%
Growth
CER%
Oral 2DR
2,924
2,480
18
21
Sales of Oral 2DR (Dovato, Juluca) now represent 42% of the
total HIV portfolio. Dovato, the first and only once-daily oral
2DR for the treatment of HIV infection in both treatment naive
and virally suppressed adults and adolescents continues to be
the largest product in the HIV portfolio with sales of £2,239
million in 2024 and growing 23% AER, 27% CER versus 2023.
Long-Acting Medicines
2024
£m
2023
£m
Growth
£%
Growth
CER%
Long-Acting Medicines
1,292
857
51
55
Long-Acting Injectable Medicine sales contributed over 50% of
the total HIV growth in 2024. Cabenuva, the only complete
long-acting injectable regimen for HIV treatment, reached sales
of £1,013 million in 2024, growing 47% due to strong patient
demand across US and Europe. Apretude, the first long-acting
injectable option for HIV prevention delivered sales of £279
million in 2024, growing 93% compared to 2023.
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Respiratory/Immunology and other
2024
£m
2023
£m
Growth
£%
Growth
CER%
Respiratory/Immunology
and Other
3,299
3,025
9
13
Sales primarily comprised contributions from Nucala in
respiratory and Benlysta in immunology. Double-digit sales
growth in the full year was delivered for both Nucala and
Benlysta, driven by patient demand globally across US,
European and International markets.
Nucala
2024
£m
2023
£m
Growth
£%
Growth
CER%
Nucala
1,784
1,655
8
12
Nucala, is an IL-5 antagonist monoclonal antibody treatment
for severe asthma, with additional indications including chronic
rhinosinusitis with nasal polyps, eosinophilic granulomatosis with
polyangiitis (EGPA), and hypereosinophilic syndrome (HES).
Double-digit sales growth was driven particularly by strong
performance in Europe and International regions, reflecting
higher patient demand for treatments addressing eosinophilic-
led disease.
Benlysta
2024
£m
2023
£m
Growth
£%
Growth
CER%
Benlysta
1,490
1,349
10
14
Benlysta, a monoclonal antibody treatment for Lupus, continues
to grow by double-digit percentages representing strong
demand and volume growth in US, European and International
regions, with bio-penetration rates having increased across
many markets.
Oncology
2024
£m
2023
£m
Growth
£%
Growth
CER%
Oncology
1,410
731
93
98
Strong Oncology sales growth continued driven by increasing
patient demand for Zejula, a PARP(1) inhibitor, Jemperli, a PD-1(2)
blocking antibody, and Ojjaara/Omjjara, a daily JAK1/JAK2
and ACVR1(3) inhibitor.
Zejula
2024
£m
2023
£m
Growth
£%
Growth
CER%
Zejula
593
523
13
17
Zejula, a PARP inhibitor treatment for ovarian cancer, grew by
double-digit percentages, with strong growth delivered across
all regions with sustained increases in patient demand and
higher volumes, further enhanced by positive price impacts in
the US.
Jemperli
2024
£m
2023
£m
Growth
£%
Growth
CER%
Jemperli
467
–
>100
>100
Jemperli, a medicine for first-line treatment in combination with
chemotherapy for patients with primary advanced or recurrent
endometrial cancer, continued to grow strongly. Strong sales
were driven largely by increased patient uptake in the US,
following Q3 2024 FDA approval expanding the indication to
include all adult patients with primary advanced or recurrent
endometrial cancer.
Ojjaara/Omjjara
2024
£m
2023
£m
Growth
£%
Growth
CER%
Ojjaara/Omjjara
353
–
>100
>100
Ojjaara/Omjjara, a treatment for myelofibrosis patients with
anaemia, grew strongly largely driven by the US with continued
uptake in patients since its product launch in Q3 2023. Sales
included increasing contributions from Europe and International
regions following launches in the UK and Germany in Q1 2024,
and in Japan in Q3 2024.
General Medicines
Turnover (£bn)
£10.4bn
AER growth
CER growth
2%
6%
33% of Group turnover
10.1
10.2
10.4
2022
2023
2024
Sales include contributions from both the Respiratory and Other
General Medicine portfolios. Sales growth was primarily driven
by Trelegy, a COPD(4) and asthma medicine, with strong
demand across all regions. Performance was adversely
impacted by the removal of the AMP(5) cap on Medicaid drug
prices in the US. This removal impacted Advair, Flovent, and
Lamictal due to significant pricing reductions, reduced
commercial contracting, and the decision to discontinue
branded Flovent. However, this has been fully offset by the
increased use of authorised generic versions of Advair and
Flovent while, significantly, continuing to provide access to
patients.
(1) PARP: a Poly ADP ribose polymerase (2) PD-1: a programmed death
receptor-1 blocking antibody (3) JAK1/JAK2 and ACVR1: once a-day, oral
JAK1/JAK2 and activin A receptor type 1 (ACVR1) inhibitor (4) Chronic
obstructive pulmonary disease (5) Average manufacturer price
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Respiratory
2024
£m
2023
£m
Growth
£%
Growth
CER%
Respiratory
7,213
6,825
6
10
Sales growth reflected Trelegy's strong performance in all
regions. In the US adverse impacts from the removal of the AMP
cap were fully offset by the increased use of authorised generic
versions of Advair and Flovent, providing access to medicines
for patients.
Trelegy
2024
£m
2023
£m
Growth
£%
Growth
CER%
Trelegy
2,702
2,202
23
27
Trelegy is the most prescribed SITT(1) treatment worldwide for
COPD and asthma. Sales grew 27% in the year, driven largely
by volume growth, whilst also benefiting from favourable
pricing. Strong volume growth continued across all regions
reflecting patient demand, SITT class growth, and increased
market share. Overall favourable pricing in the year was driven
by US channel mix price adjustments in the first six months of
2024, which moderated in the second half.
Seretide/Advair
2024
£m
2023
£m
Growth
£%
Growth
CER%
Seretide/Advair
1,057
1,139
(7)
(3)
Seretide/Advair is a combination treatment used to treat
asthma and COPD. Sales decreased in Europe and
International reflecting continued generic erosion by competitor
products. This was partially offset by growth in the US driven
largely by favourable impacts from channel mix adjustments.
Other general medicines
2024
£m
2023
£m
Growth
£%
Growth
CER%
Other general medicines
3,215
3,395
(5)
–
Growth was flat, with growth in antibiotics and dermatology in
International markets offset by global declines from continued
generic competition across the portfolio.
(1) Single inhaler triple therapy
Turnover by regions
US
2024
£m
2023
£m
Growth
£%
Growth
CER%
Total
16,384
15,820
4
6
Excluding COVID
16,374
15,810
4
6
Specialty Medicines double-digit growth in the year was driven
by strong Oncology and HIV performance, and continued
growth in Nucala and Benlysta.
Vaccine sales decreased primarily in Arexvy due to lower
demand related to a more limited ACIP recommendation and
related channel inventory consumption compared to the 2023
launch year stocking. Shingrix also decreased reflecting lower
demand driven by the continued challenge of activating
harder-to-reach consumers.
General Medicine’s growth in the year was primarily driven by
increased demand for Trelegy, with strong volume growth from
higher patient demand and growth of the SITT market as well
as favourable price benefits. Performance continues to be
impacted following the removal of the AMP cap on Medicaid
drug prices, which particularly impacted Advair, Flovent and
Lamictal. This was fully offset by the increased use of authorised
generic versions of Advair and Flovent, providing access to
medicines for patients.
Europe
2024
£m
2023
£m
Growth
£%
Growth
CER%
Total
6,666
6,564
2
4
Excluding COVID
6,665
6,431
4
6
Specialty Medicines sales grew by double-digits in the year due
to continued strong performance in Oncology, Benlysta in
immunology, and Nucala in respiratory including the benefit
from new indication launches. HIV growth continued at a high
single-digit percentage.
Vaccine sales grew in the year excluding the adverse impact of
COVID-19 sales in 2023. Shingrix growth was driven by
expanded public funding across several markets, partly offset
by lower demand in Germany. Bexsero and Arexvy sales
increased following recommendations in Germany.
General Medicines sales were broadly stable. Strong double-
digit growth for Trelegy and Anoro was offset by decreases
across other general medicine products.
International
2024
£m
2023
£m
Growth
£%
Growth
CER%
Total
8,326
7,944
5
11
Excluding COVID
8,325
7,893
5
12
Specialty Medicine’s double-digit growth in the year was driven
by HIV, Nucala in Respiratory, Benlysta in Immunology, and
Oncology.
Vaccine sales grew strongly in the year driven by Shingrix
related to the national immunisation program in Australia and
supply to our co-promotion partner in China together with
strong momentum in Meningitis vaccines and single-digit
growth in Established Vaccines sales.
General Medicines sales grew with strong growth in Trelegy,
Augmentin and dermatology products, partially offset by a
decrease in other general medicine products.
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94
Cost of sales
2024
£m
2023
£m
Growth
£%
Growth
CER%
Total cost of sales
(9,048) (8,565)
6
8
% of sales
28.8%
28.2%
0.6
0.2
Core cost of sales
(7,870)
(7,716)
2
4
% of sales
25.1%
25.4%
(0.4)
(0.7)
Total and Core cost of sales as a percentage of sales benefited
from price and channel mix benefits, as well as ongoing mix
benefits in higher margin Specialty Medicines products, and
supply chain efficiencies. These benefits were offset in the year
by charges of £150 million in Q4 2024 to drive future supply
chain efficiencies. Total cost of sales also increased due to
additional amortisation for Zejula and Jemperli.
Selling, general and administration
2024
£m
2023
£m
Growth
£%
Growth
CER%
Total selling, general and
administration
(11,015) (9,385)
17
20
% of sales
35.1%
30.9%
4.2
3.8
Core selling, general
and administration
(8,974) (9,029)
(1)
2
% of sales
28.6%
29.8%
(1.2)
(1.3)
Total SG&A growth was primarily driven by the increase in
Significant legal costs reflecting the charge of £1.8 billion ($2.3
billion) in Q3 2024 in relation to Zantac for the State Courts
Settlement, the Qui Tam Settlement, and the remaining 7% of
pending state court product liability cases, partially offset by
reduced future legal costs. Since that time, the vast majority of
the remaining state court cases have been resolved or been
dismissed such that less than 1% of the state court cases remain
(see details on page 288).
Core SG&A growth was driven by continued disciplined
investment to support global market expansion and disease
awareness for key assets including Arexvy, Nucala, Shingrix and
Jemperli, and investment behind long-acting HIV medicines.
Growth was partly offset by a 1 percentage point favourable
impact of the reversal of the legal provision taken in Q1 2023 for
the Zejula royalty dispute, following a successful appeal.
Research and development
2024
£m
2023
£m
Growth
£%
Growth
CER%
Total research and
development
(6,401) (6,223)
3
5
% of sales
20.4%
20.5%
(0.1)
(0.4)
Core research and
development
(6,023) (5,750)
5
7
% of sales
19.2%
19.0%
0.2
–
Total R&D growth was driven by an increase in Core R&D
investment, partly offset by lower impairment charges
compared with the full year 2023.
Core R&D investment increased driven by progression across
the portfolio.
In Specialty Medicines, investment increased in Respiratory,
Immunology and Inflammation to support late-stage clinical
development programmes for camlipixant (refractory chronic
cough), the long-acting TSLP asset acquired from the Aiolos
acquisition, bepirovirsen (chronic hepatitis B) and Benlysta
(autoimmune diseases), with ongoing strong investment in
depemokimab (asthma and eosinophilic inflammation).
In Oncology, increased investment reflected acceleration on
antibody-drug-conjugates (ADCs) including those acquired
from Hansoh Pharma at the end of 2023, and studies into
Blenrep (multiple myeloma) and Jemperli (endometrial cancer).
In HIV investment increased on next-generation long-acting
treatment and preventative medicines.
In Vaccines, clinical trial programmes associated with the
pneumococcal Multi Antigen Presenting System (MAPS)
technology and mRNA continued to drive investment.
These increases were partly offset by reductions following the
launches of Arexvy and Ojjaara, and progression to completion
of gepotidacin and Zejula studies.
Royalty income
2024
£m
2023
£m
Growth
£%
Growth
CER%
Total royalty income
639
953
(33)
(33)
Core royalty income
639
953
(33)
(33)
The decrease in Total and Core royalty income primarily
reflected the cessation of the majority of Gardasil royalties at
the end of 2023, with 2024 Gardasil royalties of £42 million
(2023: £472 million).
This was partly offset by increases in Kesimpta and Biktarvy
royalties.
Other operating income/(expense)
2024
£m
2023
£m
Growth
£%
Growth
CER%
Other operating income/
(expense)
(1,530)
(363)
>(100)
>(100)
Other operating expense reflected a charge of £1,839 million
(2023: £546 million) principally arising from the remeasurement
of contingent consideration liabilities (CCL). This primarily
reflected improved longer term HIV prospects as well as smaller
foreign currency movements compared to 2023 and an
increase in liability for the Vaccines CCL. This was partly offset
by higher other net income of £287 million (2023: £200 million)
as well as a fair value gain of £22 million (2023: £17 million loss)
on the retained stake in Haleon plc.
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Group financial review continued
Financial performance continued
95
Operating profit
2024
£m
2023
£m
Growth
£%
Growth
CER%
Total operating profit
4,021
6,745
(40)
(33)
% of sales
12.8%
22.2%
(9.4)
(8.3)
Core operating profit
9,148
8,786
4
11
% of sales
29.2%
29.0%
0.2
0.9
Total operating profit and margin were lower primarily due to
the charge of £1.8 billion ($2.3 billion) for the Zantac settlement,
higher CCL charges driven by improved longer term HIV
prospects and other remeasurements as well as unfavourable
foreign currency movements, additional amortisation for Zejula
and Jemperli, and minimal movements on Haleon plc shares
(2023 fair value loss).
Core operating profit growth benefited from strong Specialty
Medicines sales performance, with favourable product and
regional mix. This was partly offset by increased investment in
R&D and growth assets, and lower royalty income. 2024 also
includes a favourable impact from the reversal of the legal
provision taken in Q1 2023 for the Zejula royalty dispute,
following a successful appeal.
The adverse impact of lower sales of COVID-19 solutions had a
two percentage points impact in the full year on Core operating
profit growth and a 0.4 percentage point impact on Core
operating profit margin.
Core operating profit by business
2024
£m
2023
£m
Growth
£%
Growth
CER%
Commercial operations
15,335
14,656
5
9
% of sales
48.9%
48.3%
0.5
1.0
R&D
(5,845) (5,607)
4
7
Commercial Operations Core operating profit benefited from
strong Specialty Medicines sales performance and favourable
product and regional mix, as well as price and channel mix
benefits and supply chain efficiencies, and a reversal of the
Zejula royalty dispute legal provision in Q1 2024. This was partly
offset by charges to drive future supply chain efficiencies,
continued disciplined investment in growth assets and lower
royalty income.
The R&D segment operating expenses growth was driven by
continued spend across the portfolio, and increased investment
in Specialty Medicines including camlipixant, bepirovirsen and
Benlysta, as well as the long-acting TSLP asset acquired as part
of the Aiolos acquisition. In Oncology, increased investment in
Jemperli and ADC assets was offset by investment decreases
following the launches of Ojjaara and progression to
completion of Zejula studies. In HIV, investment on long-acting
medicines continued, and in Vaccines, pneumococcal (MAPS)
and mRNA continued to drive investment.
Net finance costs
2024
£m
2023
£m
Growth
£%
Growth
CER%
Total net finance cost
(547)
(677)
(19)
(18)
Core net finance cost
(532)
(669)
(20)
(19)
The decrease in net finance costs was mainly driven by lower
interest on short-term financing as a result of cash received
from the disposal of all Haleon plc shares, savings from
maturing bonds, and higher interest income on cash, partly
offset by fair value movements on net investment hedges. The
comparator to 2023 also benefited from the net cost of bond
buybacks completed in Q1 2023.
Share of after tax profits of associates and joint
ventures
The share of after tax loss of associates and joint ventures was
£3 million (2023: £5 million share of loss).
Profit on disposal of interest in associates
In 2024, the Group also reported a profit on disposal of interests
in associates and joint ventures of £6 million (2023: £1 million
profit).
Profit before tax
Taking account of net finance costs, the share of profits or
losses of associates and profit or loss on disposal of interest in
associates,Total profit before taxation was £3,477 million
compared with £6,064 million in 2023.
Taxation
2024
£m
2023
£m
UK current year charge
186
207
Rest of world current year charge
1,458
1,371
Charge/(credit) in respect of prior periods
(92)
43
Total current taxation
1,552
1,621
Total deferred taxation
(1,026)
(865)
Taxation on total profits
526
756
The charge of £526 million represented an effective tax rate on
Total results of 15.1% (2023: 12.5%) and reflected the different
tax effects of the various Adjusting items. Tax on Core profit
amounted to £1,462 million and represented an effective Core
tax rate of 17.0% (2023: 15.5%). Issues related to taxation are
described in Note 14, ‘Taxation’ to the financial statements. The
Group continues to believe it has made adequate provision for
the liabilities likely to arise from periods which are open and not
yet agreed by tax authorities. The ultimate liability for such
matters may vary from the amounts provided and is dependent
upon the outcome of agreements with relevant tax authorities.
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Financial performance continued
96
Non-controlling interests (NCI)
2024
£m
2023
£m
Growth
£%
Growth
CER%
Total
376
380
(1)
8
Core
654
572
14
20
The increase in Total NCIs at CER was driven by higher ViiV
Healthcare Total profits (partly offset by a higher
remeasurement loss on the CCL) as well as higher net profits in
some of the Group's other entities. ViiV Healthcare Total profits
were lower at AER, reflecting adverse currency impacts, with an
allocation of £356 million (2023: £374 million).
The increase in Core NCIs primarily reflected higher core profit
allocations from ViiV Healthcare, with £634 million in 2024
(2023: £566 million), as well as higher net profits in some of the
Group’s other entities with NCIs.
Earnings per share from operations
2024
£m
2023
£p
Growth
£%
Growth
CER%
Total earnings per share
63.2p
121.6p
(48)
(40)
Core earnings per share
159.3p
155.1p
3
10
The decrease in Total EPS was primarily due to a charge of £1.8
billion ($2.3 billion) for the Zantac settlement (see details on
page 288) and higher CCL charges.
The increase in the Core EPS primarily reflected the growth in
Core operating profit as well as lower finance costs, partly offset
by a higher effective taxation rate and higher non-controlling
interests. Lower sales of COVID-19 solutions reduced Core EPS
by two percentage points in the full year.
Currency impact on results
2024
£m/£p
2023
£m/£p
Growth
£%
Growth
CER%
Turnover
31,376 30,328
3
7
Total earnings per share
63.2p
121.6p
(48)
(40)
Core earnings per share
159.3p
155.1p
3
10
The adverse currency impact primarily reflected the
strengthening of Sterling against the US Dollar, Euro, Yen and
emerging market currencies. Exchange gains or losses on the
settlement of intercompany transactions had a negligible
impact on Total and Core EPS.
Dividends
The Board has declared four interim dividends resulting in a
total dividend for the year of 61p per share. The GSK Group
dividend in 2023 was 58p per share. Please refer to Note 16,
'Dividends' to the financial statements.
Dividend policy
Dividends remain an essential component of total shareholder
return and GSK recognises the importance of dividends to
shareholders. On 23 June 2021, at the GSK Investor Update,
GSK set out that from 2022 a progressive dividend policy will be
implemented guided by a 40 to 60 percent pay-out ratio
through the investment cycle. Consistent with this, GSK
declared an increased dividend of 16p for Q4 2024 and 61p per
share for full year 2024. The expected dividend for 2025 is 64p
per share. In setting its dividend policy, GSK considers the
capital allocation priorities of the Group and its investment
strategy for growth alongside the sustainability of the dividend.
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Group financial review continued
Financial performance continued
97
Adjusting items
Core results reconciliation
31 December 2024
Total
results
£m
Intangible
asset
amortisation
£m
Intangible
asset
impairment
£m
Major
restructuring
£m
Transaction-
related
£m
Significant
legal,
Divestments
and other
items
£m
Core
results
£m
Turnover
31,376
31,376
Cost of sales
(9,048)
947
163
40
28
(7,870)
Gross profit
22,328
947
163
40
28
23,506
Selling, general and administration
(11,015)
160
2
1,879
(8,974)
Research and development
(6,401)
55
314
9
(6,023)
Royalty income
639
639
Other operating (expense)/income
(1,530)
21
1,839
(330)
–
Operating profit
4,021
1,002
314
353
1,881
1,577
9,148
Net finance costs
(547)
1
14
(532)
Share of after-tax losses of associates and
joint ventures
(3)
(3)
Profit/(loss) on disposal of interest in associates
6
(6)
–
Profit before taxation
3,477
1,002
314
354
1,881
1,585
8,613
Taxation
(526)
(208)
(63)
(80)
(311)
(274)
(1,462)
Tax rate
15.1%
17.0%
Profit after taxation
2,951
794
251
274
1,570
1,311
7,151
Profit attributable to non-controlling interests
376
278
654
Profit attributable to shareholders
2,575
794
251
274
1,292
1,311
6,497
2,951
794
251
274
1,570
1,311
7,151
Earnings per share
63.2p
19.5p
6.1p
6.7p
31.7p
32.1 p
159.3p
Weighted average number of shares (millions)
4,077
4,077
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GSK Annual Report 2024
Group financial review continued
98
Core results reconciliation
31 December 2023
Total
results
£m
Intangible
asset
amortisation
£m
Intangible
asset
impairment
£m
Major
restructuring
£m
Transaction-
related
£m
Significant
legal,
Divestments
and other
items
£m
Core
results
£m
Turnover
30,328
30,328
Cost of sales
(8,565)
647
164
13
25
(7,716)
Gross profit
21,763
647
164
13
25
22,612
Selling, general and administration
(9,385)
216
13
127
(9,029)
Research and development
(6,223)
72
398
2
1
(5,750)
Royalty income
953
953
Other operating (expense)/income
(363)
546
(183)
–
Operating profit
6,745
719
398
382
572
(30)
8,786
Net finance costs
(677)
1
7
(669)
Share of after-tax profits of associates
and joint ventures
(5)
(5)
Profit/(loss) on disposal of interest in associates
1
(1)
–
Profit before taxation
6,064
719
398
383
572
(24)
8,112
Taxation
(756)
(154)
(94)
(83)
(100)
(70)
(1,257)
Tax rate
12.5%
15.5%
Profit after taxation from continuing operations
5,308
565
304
300
472
(94)
6,855
Profit attributable to non-controlling interests from
continuing operations
380
192
572
Profit attributable to shareholders from continuing
operations
4,928
565
304
300
280
(94)
6,283
5,308
565
304
300
472
(94)
6,855
Earnings per share from continuing operations
121.6p
13.9p
7.5p
7.4p
6.9p
(2.2) p
155.1p
Weighted average number of shares (millions)
4,052
4,052
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GSK Annual Report 2024
Group financial review continued
Adjusting items continued
99
Core results reconciliation
31 December 2022
Total
results
£m
Profit from
discontinued
operations
£m
Intangible
asset
amortisation
£m
Intangible
asset
impairment
£m
Major
restructuring
£m
Transaction-
related
£m
Significant
legal,
Divestments
and other
items
£m
Core
results
£m
Turnover
29,324
29,324
Cost of sales
(9,554)
648
102
45
18
(8,741)
Gross profit
19,770
648
102
45
18
20,583
Selling, general and administration
(8,372)
180
13
51
(8,128)
Research and development
(5,488)
91
296
39
(5,062)
Royalty income
758
758
Other operating (expense)/income
(235)
1,692
(1,457)
–
Operating profit
6,433
739
296
321
1,750
(1,388)
8,151
Net finance costs
(803)
2
10
(791)
Share of after-tax profits of associates
and joint ventures
(2)
(2)
Profit before taxation
5,628
739
296
323
1,750
(1,378)
7,358
Taxation
(707)
(150)
(64)
(87)
(242)
112
(1,138)
Tax rate
12.6 %
15.5 %
Profit after taxation from continuing operations
4,921
589
232
236
1,508
(1,266)
6,220
Profit after taxation from discontinued
operations and other gains/(losses)
from the demerger
3,049
(3,049)
–
Remeasurement of discontinued operations
distributed to shareholders on demerger
7,651
(7,651)
–
Profit after taxation from discontinued
operations
10,700
(10,700)
–
Total profit after taxation for the year
15,621
(10,700)
589
232
236
1,508
(1,266)
6,220
Profit attributable to non-controlling
interests from continuing operations
460
135
595
Profit attributable to shareholders from
continuing operations
4,461
589
232
236
1,373
(1,266)
5,625
Profit attributable to non-controlling
interest from discontinued operations
205
(205)
–
Profit attributable to shareholders from
discontinued operations
10,495
(10,495)
–
15,621
(10,700)
589
232
236
1,508
(1,266)
6,220
Total profit attributable to non-controlling
interests
665
(205)
135
595
Total profit attributable to shareholders
14,956
(10,495)
589
232
236
1,373
(1,266)
5,625
15,621
(10,700)
589
232
236
1,508
(1,266)
6,220
Earnings per share from continuing operations
110.8p
14.6p
5.8p
5.9p
34.1p
(31.5) p
139.7p
Earnings per share from discontinued
operations
260.6p
(260.6) p
Total earnings per share
371.4p
(260.6) p
14.6p
5.8p
5.9p
34.1p
(31.5) p
139.7p
Weighted average number of shares (millions)
4,026
4,026
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Group financial review continued
Adjusting items continued
100
Intangible asset amortisation
See page 233 for description and information on Intangible
asset amortisation.
Intangible asset impairment
See page 233 for description and information on Intangible
asset impairment. No individual intangible asset accounted for
a material impairment.
Major restructuring and integration
Within the Pharmaceuticals sector, the highly regulated
manufacturing operations and supply chains and long lifecycle
of the business mean that restructuring programmes,
particularly those that involve the rationalisation or closure of
manufacturing or R&D sites are likely to take several years to
complete.
Major restructuring costs are those related to specific Board-
approved Major restructuring programmes and are excluded
from Core results. Major restructuring programmes, including
integration costs following material acquisitions, are those that
are structural and are of a significant scale where the costs of
individual or related projects exceed £25 million. Other ordinary
course smaller-scale restructuring costs are retained within
Total and Core results.
Total Major restructuring charges incurred in 2024 were £353
million (2023: £382 million), analysed as follows:
2024
2023
Cash
£m
Non-
cash
£m
Total
£m
Cash
£m
Non-
cash
£m
Total
£m
Separation
restructuring
programme
200
36
236
199
117
316
Significant
acquisitions
59
1
60
65
1
66
Legacy programmes
48
9
57
(1)
1
–
307
46
353
263
119
382
The Separation restructuring programme incurred cash charges
of £200 million primarily from the restructuring of some
commercial and administrative functions as well as Supply
Chain. The non-cash charges of £36 million primarily reflected
the write-down of assets in manufacturing locations.
The programme focussed on the separation of GSK into two
separate companies and is now largely complete. The
programme has delivered its target of £1.1 billion of annual
savings, with total costs expected at £2.4 billion, with cash
charges of £1.7 billion and non-cash charges of £0.7 billion.
Costs of significant acquisitions relate to integration costs of
Sierra Oncology Inc. (Sierra) and Affinivax Inc. (Affinivax) which
were acquired in Q3 2022, BELLUS Health Inc. (Bellus) acquired
in Q2 2023 and Aiolos acquired in Q1 2024.
Cash charges of £48 million under Legacy programmes
primarily arose from the divestment of the cephalosporins
business.
Transaction-related adjustments
Transaction-related adjustments resulted in a net charge of
£1,881 million (2023: £572 million), the majority of which related
to charges/(credits) for the remeasurement of contingent
consideration liabilities, the liabilities for the Pfizer put option,
and Pfizer and Shionogi preferential dividends in ViiV
Healthcare.
Charge/(credit)
2024
£m
2023
£m
Contingent consideration on former
Shionogi-ViiV Healthcare Joint Venture
(including Shionogi preferential dividends)
1,533
934
ViiV Healthcare put options and Pfizer
preferential dividends
67
(245)
Contingent consideration on former Novartis
Vaccines business
206
(187)
Contingent consideration on acquisition of
Affinivax
(22)
44
Other adjustments
97
26
Total transaction-related charges
1,881
572
The £1,533 million charge relating to the contingent
consideration for the former Shionogi-ViiV Healthcare joint
venture represented an increase in the valuation of the
contingent consideration due to Shionogi, driven by £1,107
million from updated future sales forecasts and exchange rates,
and the unwind of the discount for £426 million.
The £67 million charge relating to the ViiV Healthcare put
option and Pfizer preferential dividends represented an
increase in the valuation of the put option primarily as a result
of updated sales forecasts partly offset by higher preference
dividends. The ViiV Healthcare contingent consideration liability
is fair valued under IFRS. An explanation of the accounting for
the non-controlling interests in ViiV Healthcare is set out on
page 89.
The £206 million charge relating to the contingent
consideration on the former Novartis Vaccines business
primarily related to changes to future sales forecasts.
The £22 million credit relating to the contingent consideration
on the acquisition of Affinivax primarily related to updated
milestone payment dates partly offset by the unwind of the
discount.
Significant legal charges, Divestments and
other items
Significant legal charges in the full year primarily reflected the
Q3 2024 charge of £1.8 billion ($2.3 billion) in relation to Zantac
for the State Courts Settlement, the Qui Tam Settlement, and
the remaining 7% of pending state court product liability cases,
partially offset by reduced future legal costs.
Legal charges provide for all significant legal matters and are
not broken out separately by litigation or investigation.
Divestments and other items primarily included other net
income from milestones and dividends related to investments,
as well as amounts reclassified from the foreign currency
translation reserve to the income statement upon the
liquidation of subsidiaries.
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Investor information
GSK Annual Report 2024
Group financial review continued
Adjusting items continued
101
Cash generation and conversion
A summary of the consolidated cash flow statement is set out
below.
2024
£m
2023
£m
Total net cash inflow from operating activities
6,554
6,768
Total net cash (outflow) from investing
activities
(1,229)
(1,595)
Total net cash inflow/(outflow) from financing
activities
(4,726)
(5,641)
Increase /(decrease) in cash and bank
overdrafts
599
(468)
Cash and bank overdrafts at beginning of year
2,858
3,425
Exchange adjustments
(54)
(99)
Increase /(decrease) in cash and bank
overdrafts
599
(468)
Cash and bank overdrafts at end of year
3,403
2,858
Cash and bank overdrafts at end of year
comprise:
Cash and cash equivalents
3,870
2,936
Overdrafts
(467)
(78)
3,403
2,858
Reconciliation of net cash inflow from operating
activities to free cash inflow
A reconciliation of net cash inflow from operating activities,
which is the closest equivalent IFRS measure to free cash flow, is
shown below.
2024
£m
2023
£m
Net cash inflow/(outflow) from operating
activities
6,554
6,768
Purchase of property, plant and equipment
(1,399)
(1,314)
Proceeds from sale of property, plant and
equipment
65
28
Purchase of intangible assets
(1,583)
(1,030)
Proceeds from sale of intangible assets
131
12
Net finance costs
(494)
(651)
Dividends from joint ventures and associates
15
12
Contingent consideration paid (reported in
investing activities)
(19)
(11)
Distributions to non-controlling interests
(416)
(412)
Contribution from non-controlling interests
9
7
Free cash inflow
2,863
3,409
Capital expenditure and financial investment
Cash payments for tangible fixed assets amounted to £1,399
million (2023: £1,314 million) and intangible fixed assets
amounted to £1,583 million (2023: £1,030 million) and
disposals realised £196 million (2023: £40 million). The increase
in intangible assets primarily related to acquisitions during the
year and an upfront payment to CureVac N.V. for £342 million.
Cash payments to acquire equity investments amounted to
£103 million (2023: £123 million ) and sales of equity
investments realised £2,356 million (2023: £1,832 million).
Free cash flow
Free cash flow is the amount of cash generated by the Group
after meeting our obligations for contingent consideration,
interest, tax and dividends paid to non-controlling interests,
and after capital expenditure on property, plant and equipment
and intangible assets.
2024
£m
2023
£m
Free cash inflow
2,863
3,409
Total cash payments to Shionogi in relation to the ViiV
Healthcare contingent consideration liability in the year were
£1,190 million (2023: £1,106 million), all of which was recognised
in cash flows from operating activities. These payments are
deductible for tax purposes.
Future cash flow
Over the long term, we expect that future cash generated from
operations will be sufficient to fund our operating and debt
servicing costs, normal levels of capital expenditure, obligations
under existing licensing agreements, expenditure arising from
restructuring programmes and other routine outflows including
tax, pension contributions and dividends, subject to the
‘Principal risks and uncertainties’ discussed on pages 307 to 317.
We may from time to time have additional demands for
finance, such as for acquisitions and share repurchases. We
have access to multiple sources of liquidity from short and long-
term capital markets and financial institutions for such needs, in
addition to the cash flow from operations.
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GSK Annual Report 2024
Group financial review continued
102
Financial position and resources
2024
£m
2023
£m
Assets
Non-current assets
Property, plant and equipment
9,227
9,020
Right of use assets
846
937
Goodwill
6,982
6,811
Other intangible assets
15,515
14,768
Investments in associates and joint ventures
96
55
Other investments
1,100
1,137
Deferred tax assets
6,757
6,049
Derivative instruments
1
–
Other non-current assets
1,942
1,584
Total non-current assets
42,466
40,361
Current assets
Inventories
5,669
5,498
Current tax recoverable
489
373
Trade and other receivables
6,836
7,385
Derivative financial instruments
109
130
Current equity investments
–
2,204
Liquid investments
21
42
Cash and cash equivalents
3,870
2,936
Assets held for sale
3
76
Total current assets
16,997
18,644
Total assets
59,463
59,005
Liabilities
Current liabilities
Short-term borrowings
(2,349)
(2,813)
Contingent consideration liabilities
(1,172)
(1,053)
Trade and other payables
(15,335)
(15,844)
Derivative financial instruments
(192)
(114)
Current tax payable
(703)
(500)
Short-term provisions
(1,946)
(744)
Total current liabilities
(21,697)
(21,068)
Non-current liabilities
Long-term borrowings
(14,637)
(15,205)
Corporation tax payable
–
(75)
Deferred tax liabilities
(382)
(311)
Pensions and other post-employment benefits
(1,864)
(2,340)
Other provisions
(589)
(495)
Contingent consideration liabilities
(6,108)
(5,609)
Other non-current liabilities
(1,100)
(1,107)
Total non-current liabilities
(24,680)
(25,142)
Total liabilities
(46,377)
(46,210)
Net assets
13,086
12,795
Total equity
13,086
12,795
Property, plant and equipment
Our business is science-based, technology-intensive and highly
regulated by governmental authorities. We allocate significant
financial resources to the renewal and maintenance of our
property, plant, equipment and vehicles to minimise risks of
interruption to production and to ensure compliance with
regulatory standards. A number of our processes use hazardous
materials.
The total cost of our property, plant and equipment at
31 December 2024 was £19,710 million, with a net book value of
£9,227 million. Of this, land and buildings represented £2,766
million, plant, equipment and vehicles £4,147 million and assets
in construction £2,314 million. In 2024, we invested £1,393 million
in new property, plant and equipment. This was mainly related
to a large number of projects for the renewal, improvement and
expansion of facilities at various worldwide sites to support new
product development and launches as well as to improve the
efficiency of existing supply chains. Property is mainly held
freehold. New investment is financed from our liquid resources.
At 31 December 2024, we had contractual commitments for
future capital expenditure of £754 million. We believe that our
property and plant facilities are adequate for our current
requirements.
Right of use assets
Right of use assets amounted to £846 million at 31 December
2024 compared with £937 million at 31 December 2023. The
decrease in the year primarily reflected depreciation of
£211 million, and disposals and impairments amounting to
£102 million, partially offset by additions of £230 million.
Goodwill
Goodwill increased to £6,982 million at 31 December 2024, from
£6,811 million primarily as a result of £210 million from
acquisitions-related transactions, partially offset by exchange
rate losses and other small movements of £39 million.
Other intangible assets
Other intangible assets include the cost of intangibles acquired
from third parties and computer software. The net book value of
other intangible assets as at 31 December 2024 was £15,515
million (2023: £14,768 million). The increase primarily reflected
additions, net of disposals and write-offs, of £2,585 million
partly offset by impairment losses, net of reversals and
amortisation, of £1,771 million and exchange rate losses of £91
million.
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Financial statements
Investor information
GSK Annual Report 2024
Group financial review continued
103
Investments in associates and joint ventures
We held investments in associates and joint ventures with a
carrying value at 31 December 2024 of £96 million (2023:
£55 million). See Note 21, 'Investments in associates and joint
ventures' to the financial statements, for more details.
Current equity investments
Current equity investments amounted to £nil at 31 December
2024 (2023: £2,204 million). Current equity investments
comprise equity investments which the Group holds with the
intention to sell and which it may sell in the short term. Where
acquired with this intention, they are measured at fair value
through the profit and loss (FVTPL). They are initially recorded
at fair value plus transaction costs and then remeasured at
subsequent reporting dates to fair value. Unrealised gains and
losses are recognised in the income statement. During 2024, the
disposal of the remaining Haleon plc shares resulted in gross
proceeds of £2,226 million (2023: £1,863 million).
Other investments
At 31 December 2024 we held other investments with a carrying
value of £1,100 million (2023: £1,137 million). The most significant
investments held at 31 December 2024 were in WAVE Life
Sciences Ltd, SR One Capital Fund I-B, LP and Crispr
Therapeutics AG. These investments had a fair value at
31 December 2024 of £165 million (2023: £55 million), £135
million (2023: £102 million) and £101 million (2023: £158 million)
respectively. The other investments included equity stakes in
companies with which we have research collaborations, and
which provide access to biotechnology developments of
potential interest and interests in companies that arise from
business divestments.
Derivative financial instruments: assets
We held current derivative financial assets at fair value of £109
million (2023: £130 million). The majority of these financial
instruments related to foreign exchange contracts both
designated and not designated as accounting hedges.
Inventories
Inventories amounted to £5,669 million (2023: £5,498 million) at
31 December 2024.
Trade and other receivables
Trade and other receivables amounted to £6,836 million (2023:
£7,385 million) at 31 December 2024. The decrease is mainly
driven by lower Arexvy sales in the US.
Deferred tax assets
Deferred tax assets amounted to £6,757 million (2023: £6,049
million) at 31 December 2024.
Derivative financial instruments: liabilities
We held current derivative financial liabilities at fair value of
£192 million (2023: £114 million). This is primarily related to
foreign exchange contracts both designated and not
designated as accounting hedges.
Trade and other payables
At 31 December 2024, trade and other payables were £15,335
million compared with £15,844 million at 31 December 2023.
The decrease was primarily driven by lower returns and rebates
accruals. See Note 29, 'Trade and other payables' to the
financial statements.
Provisions
We carried deferred tax provisions and other short-term and
non-current provisions of £2,917 million at 31 December 2024
(2023: £1,550 million). Other provisions at the year-end included
£1,446 million (2023: £267 million) related to legal and other
disputes, including the Zantac settlement, and £273 million
(2023: £282 million) related to Major restructuring programmes.
Provision has been made for legal and other disputes,
indemnified disposal liabilities, employee-related liabilities and
the costs of the restructuring programme to the extent that at
the balance sheet date a legal or constructive obligation
existed and could be reliably estimated.
Pensions and other post-employment benefits
We account for pension and other post-employment
arrangements in accordance with IAS 19. The net deficits were
£103 million (2023: £763 million) on pension arrangements and
£863 million (2023: £943 million) on unfunded post-
employment liabilities. See Note 31, 'Pensions and other post-
employment benefits' to the financial statements.
Other non-current liabilities
Other non-current liabilities amounted to £1,100 million at
31 December 2024 (2023: £1,107 million).
Contingent consideration liabilities
Contingent consideration amounted to £7,280 million at
31 December 2024 (2023: £6,662 million), of which £6,061
million (2023: £5,718 million) represented the estimated present
value of amounts payable to Shionogi relating to ViiV
Healthcare, £502 million (2023: £516 million) represented the
estimated present value of contingent consideration payable to
the former shareholders of Affinivax and £575 million (2023:
£424 million) represented the estimated present value of
contingent consideration payable to Novartis related to the
Vaccines acquisition.
The liability due to Shionogi was £289 million in respect of
preferential dividends. An explanation of the accounting for the
non-controlling interests in ViiV Healthcare is set out on page
89.
Of the total contingent consideration payable (on a post-tax
basis) at 31 December 2024, £1,127 million (2023: £1,107 million)
is expected to be paid within one year to Shionogi. The
consideration payable is expected to be paid over a number of
years. As a result, the total estimated liabilities are discounted
to their present values, on a post-tax basis using post-tax
discount rates.
The Shionogi-ViiV Healthcare contingent consideration liability
is discounted at 8%, the Affinivax contingent consideration
liability is discounted at 9.0%, and the Novartis Vaccines
contingent consideration liability is discounted partly at 8.0%
and partly at 9.0%.
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Investor information
GSK Annual Report 2024
Group financial review continued
Financial position and resources continued
104
Maturity profile of bond debt
£m equivalent
2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045
0
500
1000
1500
2000
2500
$ US bonds
€ EUR bonds
£ GBP bonds
¥ JPY bonds
Net debt
2024
£m
2023
£m
Liquid investments
21
42
Cash and cash equivalents
3,870
2,936
Short-term borrowings
(2,349)
(2,813)
Long-term borrowings
(14,637)
(15,205)
Net debt the end of the year
(13,095)
(15,040)
At 31 December 2024, net debt was £13.1 billion, compared with
£15.0 billion at 31 December 2023, comprising gross debt of
£17.0 billion and cash and liquid investments of £3.9 billion.
Net debt decreased by £1.9 billion primarily due to £2.9 billion
net cash inflow, after £0.7 billion of Zantac settlement
payments, and £2.4 billion proceeds from the disposal of
investments, primarily due to sale of the remaining retained
stake in Haleon plc. This was partly offset by the net acquisition
costs of Aiolos and Elsie Biotechnologies of £0.8 billion and
dividends paid to shareholders of £2.4 billion.
At 31 December 2024, GSK had short-term borrowings
(including overdrafts and lease liabilities) repayable within
12 months of £2.3 billion and £1.4 billion repayable in the
subsequent year.
At 31 December 2024, GSK’s cash and liquid investments were
held as follows:
2024
£m
2023
£m
Bank balances and deposits
2,590
1,942
US Treasury and Treasury repo only money
market funds
300
155
Liquidity funds
980
839
Cash and cash equivalents
3,870
2,936
Liquid investments – government securities
21
42
3,891
2,978
Cash and liquid investments of £3.1 billion (2023:£2.2 billion)
were held centrally at 31 December 2024.
The analysis of cash and gross debt after the effects of hedging
is as follows:
2024
£m
2023
£m
Liquid investments
21
42
Cash and cash equivalents
3,870
2,936
Gross debt – fixed
(16,060)
(16,898)
– floating
(924)
(1,120)
– non-interest bearing
(2)
–
Net debt
(13,095)
(15,040)
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Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Group financial review continued
Financial position and resources continued
105
$
$
$
$
$
$
€
€
€
€
€
€
€
£
£
£
£
£
£
¥
£
€
€
Movements in net debt
2024
£m
2023
£m
Total net debt at beginning of year
(15,040)
(17,197)
Increase/(decrease) in cash and bank
overdrafts
599
(468)
Increase/(decrease) in liquid investments
(21)
(72)
Repayment of long-term loans(1)
1,615
2,260
Issue of long-term notes
(1,075)
(223)
Net (increase)/decrease in short-term loans
811
333
Increase in other short-term loans(2)
(266)
–
Repayment of other short-term loans(2)
81
–
Repayment of lease liabilities
226
197
Net investments/(debt) of subsidiary
undertakings acquired
–
50
Exchange adjustments
117
554
Other non-cash movements
(142)
(474)
Decrease/(increase) in net debt
1,945
2,157
Total net debt at end of year
(13,095)
(15,040)
(1)
Repayment of long-term loans for 2024 of £1,615 million (2023: £2,260
million; 2022: £6,668 million) includes the current portion of long-term
borrowings of £1,615 million (2023: £2,116 million; 2022: £5,074 million)
which was classified as short term borrowing on the balance sheet and
previously presented as repayment of short-term loans.
(2)
Other short-term loans include bank loans presented within short-term
borrowings on the balance sheet, with an initial maturity of greater than
three months.
Reconciliation of Total Operating Profit to Core
EBITDA
2024
£m
2023
£m
Total Operating profit
4,021
6,745
Adjusting items
5,127
2,041
Core Operating profit
9,148
8,786
Including:
Share of after tax profit/(loss) of associates
and joint venture
(3)
(5)
Excluding:
Core depreciation
1,096
1,081
Core amortisation
452
493
Core EBITDA
10,693
10,355
Total Net debt to Core EBITDA ratio
Total Net debt
13,095
15,040
Core EBITDA
10,693
10,355
Total Net debt to Core EBITDA ratio
1.2
1.5
Total equity
At 31 December 2024, total equity had increased from
£12,795 million at 31 December 2023 to £13,086 million.
A summary of the movements in equity is set out below:
2024
£m
2023
£m
Total equity at beginning of year
12,795
10,096
Total comprehensive income for the year
2,778
4,991
Deconsolidation of former subsidiaries
(2)
–
Dividends to shareholders
(2,444)
(2,247)
Shares issued
20
10
Changes in non-controlling interests
4
–
Hedging gain/loss transferred to
non-financial assets
(6)
36
Share-based incentive plans
344
307
Tax on share-based incentive plans
4
7
Contributions from non-controlling interests
9
7
Distributions to non-controlling interests
(416)
(412)
Total equity at end of year
13,086
12,795
Share purchases
At 31 December 2024, GSK held 169.2 million shares as Treasury
shares (2023: 197.1 million shares) at a cost of £2,958 million
(2023: £3,447 million), which has been deducted from retained
earnings.
On 5 February, GSK announced an intention to commence a £2
billion share buyback programme, to be implemented over the
next 18 months. The programme commenced on 24 February
2025.
In 2024, 27.8 million Treasury shares were transferred to the
Employee Share Ownership Plan (ESOP) Trusts. Shares are held
by the Trusts to satisfy future exercises of options and awards
under the Group share option and award schemes.
A proportion of the shares held by the Trusts are in respect of
awards where the rules of the scheme require GSK to satisfy
exercises through market purchases rather than the issue of
new shares. The shares held by the Trusts are matched to
options and awards granted.
At 31 December 2024, the ESOP Trusts held 64.3 million
(2023: 58.8 million) GSK shares against the future exercise
of share options and share awards and for the Executive
Supplemental Savings plan. The carrying value of
£397 million (2023: £288 million) has been deducted from other
reserves. The market value of these shares was £866 million
(2023: £853 million).
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Investor information
GSK Annual Report 2024
Group financial review continued
Financial position and resources continued
106
Contractual obligations and commitments
Financial commitments are summarised in Note 36,
'Commitments' and Note 44, ‘Financial instruments and related
disclosures’ to the financial statements. The amounts below
represent the anticipated undiscounted contractual cash flows
for the Group’s key financial commitments.
At 31 December 2024, the Group anticipates gross contractual
cash flows of £16 billion for borrowings (excluding interest) of
which £2 billion is payable within one year and £14 billion is
payable after one year. Total undiscounted interest payable on
these loans amounts to £5.2 billion of which £0.5 billion is
payable within one year and £4.7 billion is payable after more
than one year. Commitments in respect of loans and future
interest payable on loans are disclosed before taking into
account the effect of derivatives. Refer to Note 44. ‘Financial
instruments and related disclosures’ on page 283 for more
details.
At 31 December 2024, the Group has intangible assets capital
commitments of £19 billion. Of these, £1 billion would fall due
within one year and £18 billion would fall due after more than
one year. These commitments include milestone payments,
which are dependent on successful clinical development or on
meeting specified sales targets, and which represent the
maximum that would be paid if all milestones, however unlikely,
were to be achieved. The amounts are not risk-adjusted or
discounted. Refer to Note 36. ‘Commitments’ on page 254 for
more details.
At 31 December 2024, the Group anticipates gross contractual
cash flows of £1.1 billion for lease liabilities (excluding interest) of
which £0.2 billion is payable within one year and £0.9 billion is
payable after one year. Total undiscounted interest payable on
lease liabilities amounts to £0.2 billion, most of which is payable
after more than one year Refer to Note 44. ‘Financial
instruments and related disclosures’ on page 283 for more
details.
At 31 December 2024, the Group had property, plant and
equipment capital commitments of £0.8 billion of which £0.5
billion is payable within one year and £0.3 billion is payable
after one year. Refer to Note 36. ‘Commitments’ on page 254
for more details.
At 31 December 2024, the Group had £0.2 billion of investment
commitments of which £0.1 billion is payable within one year
and £0.1 billion is payable after one year.
Contingent liabilities
Other contingent liabilities are set out in Note 35, 'Contingent
liabilities' to the financial statements.
The following table sets out contingent liabilities, comprising
guarantees and other items arising in the normal course of
business, and when they are expected to expire.
Total
Under
1 yr
1-3 yrs
3-5 yrs
5 yrs+
£m
£m
£m
£m
£m
Guarantees
6
4
1
–
1
Other contingent
liabilities
20
–
3
9
8
Total
26
4
4
9
9
In the normal course of business, we have provided various
indemnification guarantees in respect of business disposals
in which legal and other disputes have subsequently arisen.
A provision is made where an outflow of resources is considered
probable and a reliable estimate can be made of the likely
outcome of the dispute and this is included in Note 32, 'Other
provisions' to the financial statements.
We provide for the outcome of tax, legal and other disputes
when an outflow of resources is considered probable and a
reliable estimate of the outflow may be made. At 31 December
2024, other than for those disputes where provision has been
made, it was not possible to make a reliable estimate of the
potential outflow of funds that might be required to settle
disputes where the possibility of there being an outflow was
more than remote.
The ultimate liability for such matters may vary significantly
from the amounts provided and is dependent upon
negotiations with the relevant tax authorities and the outcome
of litigation proceedings, where relevant. This is discussed
further in ‘Principal risks and uncertainties’ on pages 307 to 317
and Note 47, 'Legal proceedings' to the financial statements.
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Investor information
GSK Annual Report 2024
Group financial review continued
Financial position and resources continued
107
Approach to tax
Business makes a major contribution to the public purse
through its tax contribution. This includes direct taxes (such as
corporate income tax) and indirect taxes (such as VAT,
environmental taxes and customs duties) as well as other taxes
(such as employment taxes and property taxes). It is therefore
important that companies explain their approach to tax. This
helps inform dialogue about tax and tax policy.
We are supportive of efforts to ensure companies are
appropriately transparent about how their tax affairs are
managed. To this end, our Tax Strategy is set out in detail within
the Public policies section of our website and we regularly
engage in discussions with stakeholders who are keen to
understand our tax profile and our approach to tax.
We support the exchange of country-by-country reporting
(CBCR) data between tax authorities as, validated against
existing information held on taxpayers, it will support their ability
to ensure multinational groups pay the right amount of tax in
the right places. Our published Tax Strategy includes a
summary of our country-by-country reporting (CBCR) data.
As a global biopharmaceutical company, we have a substantial
business and employment presence in many countries around
the world and pay a significant amount of tax. This includes
corporate income tax and other business taxes, and tax
associated with our employees. We also collect a significant
amount of tax on behalf of governments, such as income tax
from payments to our employees and VAT along our supply
chain. Further information in relation to GSK’s total tax
contribution, giving a better reflection of our overall fiscal
contribution in a particular country, can be found in our
published Tax Strategy.
We are subject to taxation throughout our supply chain. The
worldwide nature of our operations means that our cross-
border supply routes, necessary to ensure supplies of medicines
into numerous countries, can result in conflicting claims from tax
authorities as to the profits to be taxed in individual countries.
This can lead to double taxation (with profits taxed in more
than one country).
To mitigate the risk of double taxation, profits are recognised in
territories by reference to the activities performed there and the
value they generate. To ensure the profits recognised in
jurisdictions are aligned to the activity undertaken there, and in
line with current OECD guidelines, we base our transfer pricing
policy on the arm’s length principle and support our transfer
prices with economic analysis and reports.
We do not engage in artificial tax arrangements – those
without business or commercial substance. We do not seek to
avoid tax by the use of ‘tax havens’ or transactions we would
not fully disclose to a tax authority. We have a zero-tolerance
approach to tax evasion and the facilitation of tax evasion.
Tax risk in all countries in which we operate is managed through
robust internal policies, processes, training and compliance
programmes. Our Board of Directors, supported by the Audit &
Risk Committee (ARC), are responsible for approving our tax
policies and risk management arrangements as part of our
wider risk management and internal control framework. Our
Risk Oversight and Compliance Council (ROCC) and the Audit
and Assurance function help the ARC oversee tax risks and the
strategies used to address them.
We seek to maintain open and constructive relationships with
tax authorities worldwide, meeting regularly to discuss our tax
affairs and real time business updates wherever possible to
support their work and help manage tax risk in accordance with
our framework.
We monitor government debate on tax policy in our key
jurisdictions so that we can understand and share an informed
point of view regarding any potential future changes in tax law,
in support of a transparent and sustainable tax system. Where
relevant, we provide pragmatic and constructive business input
to tax policy makers either directly or through industry trade
bodies, to help inform reforms that support economic growth
and job creation.
In 2024, the Group corporate tax charge was £526 million
(2023: £756 million) on profits before tax of £3,477 million (2023:
£6,064 million) representing an effective tax rate of 15.1% (2023:
12.5%). We made cash tax payments of £1,307 million in the
year (2023: £1,328 million). In addition to the taxes we pay on
our profits, we pay duties, levies, transactional and employment
taxes.
Our Core tax rate for 2024 was 17% (2023: 15.5%). The rate
continues to benefit from innovation incentives available in key
territories in which we operate, such as the UK and Belgium
Patent Box regimes, albeit at a reduced level following
introduction of global minimum corporate tax rate provisions, in
line with the OECD’s Pillar 2 model rules, with effect from 1
January 2024.
The Group’s Total tax rate for 2024 of 15.1% (2023: 12.5%) was
lower than the Core tax rate reflecting the different tax effects
of various Adjusting items, including the impact of amortisation
and impairments of intangible assets at higher tax rates and
the impact of the Zantac settlement.
Further details about our corporate tax charges for the year are
set out in Note 14 'Taxation' to the financial statements.
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Group financial review continued
108
Treasury policies
We report in Sterling and pay dividends out of Sterling cash
flows. The role of Treasury is to monitor and manage the
Group’s external and internal funding requirements and
financial risks in support of our strategic objectives. GSK
operates on a global basis, primarily through subsidiary
companies, and we manage our capital to ensure that our
subsidiaries are able to operate as going concerns and to
optimise returns to shareholders through an appropriate
balance of debt and equity. Treasury activities are governed by
policies approved annually by the Board of Directors, and most
recently on 10 October 2024. A Treasury Management Group
(TMG) meeting, chaired by our Chief Financial Officer, takes
place on a regular basis to review Treasury activities. Its
members receive management information relating to these
activities.
Treasury operations
The objective of GSK’s Treasury activities is to minimise the
post-tax net cost of financial operations and reduce its volatility
in order to benefit earnings and cash flows. GSK uses a variety
of financial instruments to finance its operations and derivative
financial instruments to manage market risks from these
operations. Derivatives principally comprise foreign exchange
forward contracts and swaps which are used to swap
borrowings and liquid assets into currencies required for Group
purposes, as well as interest rate swaps which are used to
manage exposure to financial risks from changes in interest
rates.
Derivatives are used exclusively for hedging purposes in relation
to underlying business activities and not as trading or
speculative instruments.
Capital management
GSK’s financial strategy, implemented through the Group’s
financial architecture, supports GSK’s strategic priorities and is
regularly reviewed by the Board. We manage the capital
structure of the Group through an appropriate mix of debt and
equity. We continue to manage our financial policies to a credit
profile that particularly targets ratings of at least A2/A
(Moody's/S&P), through the cycle.
GSK’s long-term credit rating with Standard and Poor’s is A
(stable outlook) and with Moody’s Investor Services (‘Moody’s’)
is A2 (stable outlook). Our short-term credit ratings are A-1 and
P-1 with Standard and Poor’s and Moody’s respectively.
Liquidity risk management
GSK’s policy is to borrow centrally in order to meet anticipated
funding requirements. Our cash flow forecasts and funding
requirements are monitored by the TMG on a regular basis. Our
strategy is to diversify liquidity sources using a range of facilities
and to maintain broad access to financial markets.
Each day, we sweep cash to or from a number of global
subsidiaries to central treasury accounts for liquidity
management purposes.
Interest rate risk management
GSK’s objective is to minimise the effective net interest cost and
to balance the mix of debt at fixed and floating interest rates
over time. The policy on interest rate risk management limits the
net amount of floating rate debt to a specific cap, reviewed
and agreed no less than annually by the Board.
Foreign exchange risk management
Our objective is to minimise the exposure of overseas operating
subsidiaries to transaction risk by matching local currency
income with local currency costs where possible. Foreign
currency transaction exposures arising on external and internal
trade flows are selectively hedged. GSK’s internal trading
transactions are matched centrally and we manage inter-
company payment terms to reduce foreign currency risk. Where
possible, we manage the cash surpluses or borrowing
requirements of subsidiary companies centrally using forward
contracts to hedge future repayments back into the originating
currency.
In order to reduce foreign currency translation exposure, we
seek to denominate borrowings in the currencies of our
principal assets and cash flows. These are primarily
denominated in US Dollars, Euros and Sterling.
Borrowings can be swapped into other currencies as required.
Borrowings denominated in, or swapped into, foreign currencies
that match investments in overseas Group assets may be
treated as a hedge against the relevant assets. Forward
contracts in major currencies are also used to reduce exposure
to the Group’s investment in overseas Group assets. The TMG
reviews the ratio of borrowings to assets for major currencies
regularly.
Commodity risk management
Our objective is to minimise income statement volatility arising
from fluctuations in commodity prices, where practical and cost
effective to do so. The TMG is authorised to approve the
execution of certain financial derivatives to hedge commodity
price exposures.
Counterparty risk management
We set global counterparty limits for each of our banking and
investment counterparties based on long-term credit ratings
from Moody’s and Standard & Poor’s. Usage of these limits is
actively monitored and any breach of these limits would be
reported to the Chief Financial Officer immediately.
In addition, relationship banks and their credit ratings are
reviewed regularly so that, when changes in ratings occur,
changes can be made to investment levels or to authority limits
as appropriate. All banking counterparty limits are reviewed at
least annually.
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Group financial review continued
109
Critical accounting policies
The Group consolidated financial statements have been
prepared in accordance with UK-adopted international
accounting standards in conformity with the requirements of
the Companies Act 2006 and the International Financial
Reporting Standards (IFRS) as issued by the International
Accounting Standard Boards (IASB).
We are required to make estimates and assumptions that
affect the amounts of assets, liabilities, revenue and expenses
reported in the financial statements. Actual amounts and results
could differ from those estimates.
The critical accounting policies relate to the following areas:
– Turnover
– Taxation (Note 14)
– Legal and other disputes (Note 47)
– Contingent liabilities (Note 35)
– Pensions and other post-employment benefits (Note 31)
– Impairment of intangible assets (Note 20)
Information on the judgements and estimates made in these
areas is given in Note 3, 'Critical accounting judgements and
key sources of estimation uncertainty' to the financial
statements.
Turnover
In respect of the turnover accounting policy, our largest
business is US Commercial Operations, and the US market has
the most complex arrangements for rebates, discounts and
allowances. The following briefly describes the nature of the
arrangements in existence in our US Commercial Operations:
– We have arrangements with certain indirect customers
whereby the customer is able to buy products from
wholesalers at reduced prices. A chargeback represents the
difference between the invoice price to the wholesaler and
the indirect customer’s contractual discounted price. Accruals
for estimating chargebacks are calculated based on the
terms of each agreement, historical experience and product
growth rates.
– Customer rebates are offered to key managed care and
Group Purchasing Organisations and other direct and
indirect customers. These arrangements require the customer
to achieve certain formulary status, performance targets
relating to the value of product purchased or pre-determined
market shares relative to competitors. The accrual for
customer rebates is estimated based on the specific terms in
each agreement, historical experience and product growth
rates.
– The US Medicaid programme is a state-administered
programme providing assistance to certain poor and
vulnerable patients. In 1990, the Medicaid Drug Rebate
Program was established to reduce state and federal
expenditure on prescription drugs. In 2010, the Patient
Protection and Affordable Care Act became law. We
participate by providing rebates to states. Accruals for
Medicaid rebates are calculated based on the specific terms
of the relevant regulations or the Patient Protection and
Affordable Care Act.
– Cash discounts are offered to customers to encourage
prompt payment. These are accrued for at the time of
invoicing and adjusted subsequently to reflect actual
experience.
– We record an accrual for estimated sales returns by applying
historical experience of customer returns to the amounts
invoiced, together with market-related information such as
stock levels at wholesalers, anticipated price increases and
competitor activity.
A reconciliation of gross turnover to net turnover for US
Commercial Operations is as follows:
2024
2023
2022
£m
Margin
%
£m
Margin
%
£m
Margin
%
Gross turnover
30,484
100 32,359
100 29,814
100
Market-driven
segments
(7,704)
(25) (8,874)
(27) (8,275)
(28)
Government
mandated and
state programmes
(5,394)
(18) (6,385)
(20) (6,218)
(21)
Cash discounts
(502)
(2) (566)
(2) (536)
(2)
Customer returns
(272)
(1) (344)
(1) (255)
(1)
Prior year
adjustments
631
2
591
2
780
3
Other items
(859)
(3)
(961)
(3) (768)
(2)
Total deductions
(14,100)
(47) (16,539)
(51) (15,272)
(51)
Net turnover
16,384
53 15,820
49 14,542
49
Market-driven segments consist primarily of managed care and
Medicare plans with which we negotiate contract pricing that is
honoured via rebates and chargebacks. Mandated segments
consist primarily of Medicaid and federal government
programmes which receive government-mandated pricing via
rebates and chargebacks.
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Group financial review continued
110
Overall sales deduction as a percentage of sales have
decreased year over year in line with our commercial
contracting strategy, movement in product mix and steps taken
to address removal of the Average Manufacturer Price (AMP)
Cap. Deductions within the year were split approximately as
follows: General Medicines 61%, Specialty Medicines 28% and
Vaccines 11%.
At 31 December 2024, the total accrual for discounts, rebates,
allowances and returns for US Commercial Operations
amounted to £5,235 million (2023: £5,951 million).
A monthly process is operated to monitor inventory levels at
wholesalers for any abnormal movements. This process uses
gross sales volumes, prescription volumes based on third-party
data sources and information received from key wholesalers.
The aim of this is to maintain inventories at a consistent level
from year to year based on the pattern of consumption.
On this basis, US Commercial Operations inventory levels at
wholesalers and in other distribution channels at 31 December
2024 were estimated to amount to approximately four weeks of
turnover. This calculation uses third-party information, the
accuracy of which cannot be totally verified, but is believed to
be sufficiently reliable for this purpose.
Legal and other disputes
In respect of the accounting policy for legal and other disputes,
the following briefly describes the process by which we
determine the level of provision that is necessary.
In accordance with the requirements of IAS 37, ‘Provisions,
contingent liabilities and contingent assets’, we provide for
anticipated settlement costs where an outflow of resources is
considered probable and a reliable estimate may be made of
the likely outcome of the dispute and legal and other expenses
arising from claims against the Group.
We may become involved in significant legal proceedings, in
respect of which it is not possible to meaningfully assess
whether the outcome will result in a probable outflow, or to
quantify or reliably estimate the liability, if any, that could result
from ultimate resolution of the proceedings. In these cases,
appropriate disclosure about such cases would be included in
the Annual Report, but no provision would be made.
This position could change over time and, therefore, there can
be no assurance that any losses that result from the outcome of
any legal proceedings will not exceed by a material amount the
amount of the provisions reported in the Group’s financial
statements.
Like many pharmaceutical companies, we are faced with
various complex product liability, anti-trust and patent
litigation, as well as investigations of our operations conducted
by various governmental regulatory agencies. Throughout the
year, the General Counsel of the Group, as head of the Group’s
legal function, supported by the Senior Vice President and
Head of Global Litigation for the Group, who is responsible for
all litigation and government investigations, routinely brief the
Chief Executive Officer, the Chief Financial Officer and the
Board of Directors on the significant litigation pending against
the Group and governmental investigations of the Group.
These meetings, as appropriate, detail the status of significant
litigation and government investigations and review matters
such as the number of claims notified to us, information on
potential claims not yet notified, assessment of the validity of
claims, progress made in settling claims, recent settlement
levels and potential reimbursement by insurers.
The meetings also include an assessment of whether or not
there is sufficient information available for us to be able to
make a reliable estimate of the potential outcomes of the
disputes. Often, external counsel assisting us with various
litigation matters and investigations will also assist in the
briefing of the Board and senior management. Following these
discussions, for those matters where it is possible to make a
reliable estimate of the amount of a provision, if any, that may
be required, the level of provision for legal and other disputes is
reviewed and adjusted as appropriate. These matters are
discussed further in Note 47, 'Legal proceedings' to the financial
statements.
Strategic report
The Strategic report was approved by the Board of Directors on
25 February 2025
Julie Brown
Chief Financial Officer
25 February 2025
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Group financial review continued
Critical accounting policies continued
111
Corporate
governance
In this section
The Board and GSK Leadership Team
113
Chair’s governance statement
119
Corporate governance architecture
122
Board activities
125
Board committee reports
134
Remuneration report
146
Remuneration policy
176
Directors’ report
185
GSK Annual Report 2024
112
Sir Jonathan Symonds, CBE
Non-Executive Chair
Age: 65
Nationality: British
Appointed: 1 September 2019
Skills and experience
Jon has extensive international financial, life sciences and governance experience.
Jon served as an Independent Non-Executive Director of HSBC Holdings plc from April 2014 and
as Chairman of the Group Audit Committee from 1 September 2014 and Deputy Group Chairman
from August 2018, until his retirement from the Board in February 2020. He was previously
Chairman of HSBC Bank plc, Chief Financial Officer of Novartis AG, Partner and Managing
Director of Goldman Sachs, Chief Financial Officer of AstraZeneca plc, and a Partner at KPMG.
Jon was previously a Senior Advisor to Chatham House.
Jon is a Fellow of the Institute of Chartered Accountants in England and Wales, an Honorary
Fellow of the Oxford School of Pharmacology, and an Honorary Member of the Academy of
Medical Sciences.
External appointments
Non-Executive Director, Genomics England Limited having previously served as its Chairman;
Non-Executive Chair, Energy Aspects; Member, European Round Table for Industry; Member,
Investor & Issuer Forum (I&IF) Steering Committee.
Dame Emma Walmsley
Chief Executive Officer
Age: 55
Nationality: British
Appointed: 1 January 2017
Chief Executive Officer from
1 April 2017
Skills and experience
Before being appointed as GSK’s CEO, Emma was the CEO of GSK Consumer Healthcare, a joint
venture between GSK and Novartis, from its creation in March 2015. Emma joined GSK in 2010
from L’Oreal, having worked there for 17 years in a variety of roles in Paris, London, New York and
Shanghai. Emma’s position as an Independent Director of Microsoft, Inc., further supplements the
technology and cyber security experience she brings to the Board.
Emma holds an MA in Classics and Modern Languages from Oxford University.
External appointments
Independent Director, Microsoft, Inc.
Julie Brown
Chief Financial Officer
Age: 62
Nationality: British
Appointed: 1 May 2023
Skills and experience
Julie has an extensive financial and life sciences background, having been the Group CFO of
Smith & Nephew from 2013 to 2017 and serving as a Non-Executive Director and Audit Chair of
Roche Holding AG from 2016 to 2022. Before this, Julie was Interim Group CFO of AstraZeneca
plc, having worked in a wide range of commercial, strategic and financial positions across three
continents over a 25 year period. Julie was also Chief Operating Officer and CFO and Executive
Director of Burberry Group plc from 2017 to 2023, where her responsibilities included Finance,
Transformation, Information Technology and oversight of cyber security, Investor Relations and
Sustainability.
Julie is a Fellow of the Institute of Chartered Accountants and the Institute of Tax.
External appointments
Co-Chair, CFO Leadership Network, Accounting for Sustainability (part of the King Charles III
Charitable Fund Group of Companies); Patron, Oxford University Women in Business; Non-
Executive Director and Chair of the Audit Committee, Diageo plc.
Elizabeth (Liz) McKee Anderson
Independent Non-Executive Director
Age: 67
Nationality: American
Appointed: 1 September 2022
Skills and experience
Liz brings significant experience in commercial biopharmaceuticals and is a seasoned biotech
board member. Her significant experience in commercial biopharmaceuticals, both operationally
and at Board level, as well as her deep understanding of the biotechnology sector and
application of technology, are invaluable to GSK as a pure biopharma company.
Before her current roles, Liz served as Worldwide Vice President and commercial leader in
infectious diseases and vaccines and also for immunology and oncology at Janssen
Pharmaceuticals, and as Vice President and General Manager at Wyeth Vaccines. Liz was also
previously a Board member of Huntsworth Plc and a Board Member and Chair of the Science,
Technology and Investment Committee of Bavarian Nordic A/S. Liz has a degree in Engineering
and Technical Management and an MBA in Finance.
External appointments
Board Member, BioMarin Pharmaceutical, Inc; Board Member, Revolution Medicines, Inc; Board
Member, Insmed, Inc; Trustee, The Wistar Institute; Director, Aro Biotherapeutics Company, a
private company.
Key
Committee Chair
Corporate Responsibility
Science
Nominations & Corporate Governance
Audit & Risk
Remuneration
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
The Board
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Charles Bancroft
Senior Independent Non-Executive Director
Age: 65
Nationality: American
Appointed: 1 May 2020
Senior Independent Non-Executive Director
from 18 July 2022
Skills and experience
Charlie has a wealth of financial and management experience in global biopharma.
Charlie retired from a successful career at Bristol Myers Squibb (BMS) in March 2020 where he
held a number of leadership roles in commercial, strategy and finance. Beginning his career at
BMS in 1984, he held positions of increasing responsibility within the finance organisation and
had commercial operational responsibility for Latin America, Middle East, Africa, Canada, Japan
and several Pacific Rim countries. He was appointed Chief Financial Officer in 2010, Chief
Financial Officer and Executive Vice President, Global Business Operations in 2016 and Executive
Vice President and Head of Integration and Strategy & Business Development in 2019. As Chief
Financial Officer, Charlie had line management responsibility for Information Technology,
including cyber security. Charlie successfully steered BMS through a period of strategic
transformation, including its $74 billion acquisition of Celgene. Charlie also served as a member
of the Board of Colgate-Palmolive Company from 2017 until March 2020.
External appointments
Board Member, Kodiak Sciences Inc; Board Member, BioVector Inc; Advisory Board Member,
Drexel University’s LeBow College of Business; Advisor, Patent Protection Research.
The Board determined that Charlie has recent and relevant financial experience and agreed that
he has the appropriate qualifications and background to be an audit committee financial expert.
Dr Hal Barron
Non-Executive Director
Age: 62
Nationality: American
Appointed: 1 January 2018
Chief Scientific Officer and
President, R&D from 1 April 2018
Transitioned to the role of Non-Executive
Director on 1 August 2022
Skills and experience
Hal has had a distinguished career in biosciences, with a strong track record of research and
development (R&D). He joined the Board of GSK in 2018 as Chief Scientific Officer and President,
R&D, where he brought a new approach to R&D which focused on science related to the immune
system, the use of human genetics and advanced technologies to help identify the next
generation of transformational medicines. In August 2022, he transitioned to a Non-Independent
Non-Executive Director, with additional responsibilities to support R&D.
Before joining GSK, Hal was President, R&D at Calico LLC (California Life Company), an
Alphabet-funded company that uses advanced technologies to increase understanding of
lifespan biology. Hal was previously Executive Vice President, Head of Global Product
Development, and Chief Medical Officer of Roche, responsible for all the products in the
combined portfolio of Roche and Genentech. At Genentech, he was Senior Vice President of
Development and Chief Medical Officer. Hal was a Non-Executive Director and Chair of the
Science & Technology Committee at Juno Therapeutics, Inc until March 2018, when it was
acquired by Celgene Corporation. He previously served as a Non-Executive Board Director of
GRAIL, Inc and an Advisory Board Member of Verily Life Sciences LLC.
External appointments
CEO and Board Co-Chair, Altos Labs Inc; Associate Adjunct Professor, Epidemiology &
Biostatistics, University of California, San Francisco.
Dr Anne Beal
Independent Non-Executive Director
Age: 62
Nationality: American
Appointed: 6 May 2021
Skills and experience
Anne brings extensive healthcare experience to the Board as a physician and entrepreneur
combined with a passion for patient advocacy. She is a recognised health policy expert in the
development of global and national programmes for improving healthcare access for all patient
groups and in ensuring the voice of patients is reflected in research programmes.
Prior to her current roles, Anne spent six years at Harvard Medical School and Massachusetts
General Hospital, where she was an instructor in paediatrics. She has also held leadership roles at
the Commonwealth Fund and the Aetna Foundation. Anne was previously Deputy Executive
Director and Chief Engagement Officer for The Patient-Centered Outcomes Research Institute in
the US and Chief Patient Officer and Global Head of Patient Solutions at Sanofi. In addition,
Anne was previously a member of the Board of Academy Health.
External appointments
Founder and CEO, AbsoluteJOI Skincare; Board Member, Prolacta Bioscience; Board Member,
Omada Health, Inc; Member of Board of Trustees, Brown University.
Key
Committee Chair
Corporate Responsibility
Science
Nominations & Corporate Governance
Audit & Risk
Remuneration
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
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Wendy Becker
Independent Non-Executive Director
Age: 59
Nationality: American
Appointed: 1 October 2023
Skills and experience
Wendy is a highly experienced Non-Executive Director and has held significant leadership
positions in a wide range of global businesses in public, private and non-profit sectors. She
possesses a wealth of strategic and consumer marketing expertise in particular across the
technology and life sciences sectors.
Wendy has strong executive management experience, having been Chief Executive Officer at
Jack Wills Limited, Group Chief Marketing Officer at Vodafone Group plc and Partner at
McKinsey & Company. Wendy’s interest in science, healthcare and medical research dates to her
time at McKinsey, where she worked with a range of healthcare clients in the US and Europe. This
was furthered during the years that she served on the Board of Cancer Research UK. More
recently, Wendy spent time as a Non-Executive Director of NHS England and as Chair of the
British Heart Foundation.
Wendy has held several Non-Executive Director roles, amongst others, as Chair of the
Remuneration Committees of Great Portland Estates plc and Ocado Group plc, a member of the
Remuneration and Audit Committees of Whitbread plc and Senior Independent Director and
Chair of the Remuneration Committee of Oxford Nanopore Technologies plc.
Through her current and prior roles in technology companies, Wendy adds to the Board’s
experience in cyber security.
External appointments
Chair of Logitech International S.A.; Vice Chair of the Board and Chair of the Compensation
Committee, Sony Group Corporation; Member of the governing bodies of the University of
Oxford; Trustee, University of Oxford.
Dr Harry (Hal) C Dietz
Independent Non-Executive Director
and Scientific & Medical Expert
Age: 66
Nationality: American
Appointed: 1 January 2022
Skills and experience
Hal brings extensive experience in the field of human genetics which is central to GSK’s approach
to R&D. He is a former President of the American Society of Human Genetics and is recognised
as the world’s leading authority on the genetic disorder known as Marfan Syndrome. He also
brings experience in developing novel therapies, particularly in relation to disease-modifying
treatments for fibrotic and neurodegenerative diseases. In total, Hal has authored 282 original
publications in peer-reviewed journals during his career.
As a physician scientist, he has dedicated his entire career to the care and study of individuals
with heritable connective tissue disorders with primary perturbations of extracellular matrix
homeostasis and function. His lab has identified the genes for many of these conditions, for which
he uses model systems to explain disease mechanisms.
Hal has received many prestigious awards including the Curt Stern Award from the American
Society of Human Genetics, the Colonel Harland Sanders Lifetime Achievement Award in
Medical Genetics, the Taubman Prize for excellence in translational medical science, the
Harrington Prize from the American Society for Clinical Investigation and the Harrington
Discovery Institute, the Pasarow Award in Cardiovascular Research, the InBev-Baillet Latour
Health Prize from Belgium, and the Research Achievement Award from the American Heart
Association.
He is an inductee of the American Society for Clinical Investigation, the American Association for
the Advancement of Science, the Association of American Physicians, the National Academy of
Medicine, and the National Academy of Sciences. Hal was previously an Investigator at the
Howard Hughes Medical Institute.
External appointments
Victor A. McKusick Professor of Paediatrics, Medicine, and Molecular Biology & Genetics in the
Department of Genetic Medicine, The Johns Hopkins University School of Medicine; Non-
Executive Board Director, Altius Institute for Biomedical Sciences; Independent Chair, GSK’s
Human Genetics Scientific Advisory Board.
Key
Committee Chair
Corporate Responsibility
Science
Nominations & Corporate Governance
Audit & Risk
Remuneration
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
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Dr Jesse Goodman
Independent Non-Executive Director
and Scientific & Medical Expert
Age: 73
Nationality: American
Appointed: 1 January 2016
Skills and experience
Jesse brings scientific and public health expertise to the Board’s deliberations. He has a wealth of
experience spanning science, medicine, vaccines, regulation and public health, and has a proven
record in addressing pressing public health needs in both the academic and federal sectors.
Jesse previously served in senior leadership positions at the US Food and Drug Administration
(FDA), including most recently as the FDA’s Chief Scientist and previously as Deputy
Commissioner for Science and Public Health and as Director of the Center for Biologics
Evaluation and Research (CBER).
Jesse played a leadership role in developing the FDA’s Regulatory Science and Medical
Countermeasures Initiatives and has worked collaboratively with industry, academia, government
and global public health and regulatory partners to prepare for and respond to major public
health threats, including emerging infectious diseases, disasters and terrorism. He led the FDA’s
response to West Nile Virus and to the 2009 H1N1 influenza pandemic and served on the Senior
Leadership Team for the 2010 White House Medical Countermeasure Review. Jesse was
previously a member of both the Scientific Advisory Committee and the Regulatory and Legal
Working Group of the Coalition for Epidemic Preparedness Innovations (CEPI). In addition, Jesse
was a Board Member of the Scientific Counselors for Infectious Diseases, Centers for Disease
Control and Prevention (CDC).
External appointments
Professor of Medicine and Attending Physician, Infectious Diseases, Georgetown University and
directs the Georgetown University Center on Medical Product Access, Safety and Stewardship
(COMPASS); Board Member (formerly President), United States Pharmacopeia (USP); Board
Member, Intellia Therapeutics Inc; Member, US National Academy of Medicine; Board Member,
BiomX Inc; Member of Committee on the Evidence Base for Lyme Infection-Associated Chronic
Illnesses Treatment, National Academies Sciences Engineering Medicine.
Dr Jeannie Lee
Independent Non-Executive Director
and Scientific & Medical Expert
Age: 60
Nationality: American
Appointed: 4 March 2024
Skills and experience
Jeannie is a pioneer in the field of RNA Biology and its application to drug development and
therapeutics. In addition to senior leadership positions held at both Harvard Medical School and
the Massachusetts General Hospital, Jeannie co-founded Translate Bio and Fulcrum
Therapeutics, two biotech companies specialising in RNA and epigenetic therapies.
Jeannie is a Member of the National Academy of Sciences and the National Academy of
Medicine. She is a Harrington Rare Disease Scholar of the Harrington Discovery Institute, a
recipient of the Lurie Prize from the Foundation for the National Institutes of Health, an awardee
of the Centennial Prize from the Genetics Society of America, the 2010 Molecular Biology Prize
and the 2020 Cozzarelli Prize from the National Academy of Sciences, U.S.A, and a Fellow of the
American Association for the Advancement of Science. She has also served on the Board of the
Genetics Society of America.
External appointments
Endowed Chair of Molecular Biology, Vice Chair of Genetics and Professor of Genetics (&
Pathology), Harvard Medical School; Chair of Molecular Biology, Massachusetts General
Hospital; Co-Founder and Consultant, Fulcrum Therapeutics; Scientific Advisory Board member,
Skyhawk Therapeutics Inc.; Manager and Registered Agent, Pink Onion LLC.
Dr Vishal Sikka
Independent Non-Executive Director
Age: 57
Nationality: American
Appointed: 18 July 2022
Skills and experience
Vishal has a distinguished background in technology, particularly in Artificial Intelligence (AI) and
Machine Learning (ML), which are central to GSK’s approach to R&D. He also brings a deep
understanding of cyber security to the Board. He is the founder and CEO of Vianai Systems, Inc, a
Silicon Valley-based company that provides advanced technological software and services in AI
and ML to large enterprises around the world.
Before founding Vianai Systems in 2019, Vishal served as CEO of Infosys Limited, where he led an
innovative strategy to help clients renew existing IT landscapes, using AI/automation, design
thinking and next-generation technologies to transform customer experiences. He also served as
a member of the Executive Board of SAP SE, prior to which he was its Chief Technology Officer,
and also as a Board Member of Oracle Corporation. Vishal has a PhD in AI from Stanford
University and has co-authored several research abstracts related to AI, technology and
database management.
External appointments
Founder and CEO, Vianai Systems, Inc; Member, Supervisory Board, BMW AG; Member of the
Advisory Board of Stanford University's AI Center (Institute for Human-Centered Artificial
Intelligence).
Key
Committee Chair
Corporate Responsibility
Science
Nominations & Corporate Governance
Audit & Risk
Remuneration
Directors departing during 2024
Urs Rohner
1 January 2015 to 8 May 2024
Retired from the company on 8 May 2024
Independence statement
The Board considers all its Non-Executive Directors who are identified above – except Dr Hal Barron – to be independent after
being assessed against Provision 10 of the Financial Reporting Council's UK Corporate Governance Code. Dr Jesse Goodman
reached nine years of service and will step down from the Board at the 2025 AGM as planned. He continues to demonstrate all
the characteristics of independence expected by the Board in carrying out his role as a Director.
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GSK Annual Report 2024
The Board continued
116
S
C
C
S
N
A
C
R
S
C
Skills and experience
Emma Walmsley
Chief Executive Officer
Emma joined GSK in 2010 and the GLT in 2011. See Board biographies on pages 113 to 116.
Julie Brown
Chief Financial Officer
Julie joined GSK and the GLT in 2023. See Board biographies on pages 113 to 116.
Diana Conrad
Chief People Officer
Diana was appointed Chief People Officer and member of the GLT in April 2019. She was
previously Senior Vice President, HR, Pharmaceuticals R&D from 2016 where she played a key
strategic role as leader of the R&D people and culture agenda to support its transformation.
Diana joined GSK Canada’s HR team in 2000 where she held several roles of increasing
responsibility before becoming Senior Vice President, HR for Consumer Healthcare in 2009.
Prior to joining GSK, she held HR roles in companies including GE Capital, Gennum Corporation
and Zenon Environmental Laboratories. Diana has an Honours Bachelor of Arts from McMaster
University in Canada.
James Ford
SVP & Group General Counsel,
Legal and Compliance
James joined the GLT in 2018, when he was appointed Senior Vice President and Group General
Counsel, later taking responsibility for Compliance, Corporate Security and Investigations in 2021.
He joined GSK in 1995 and has served as General Counsel Consumer Healthcare, General
Counsel Global Pharmaceuticals, Vice President of Corporate Legal and was Acting Head of
Global Ethics and Compliance. Prior to GSK, James was a solicitor at Clifford Chance and DLA.
He holds a law degree from the University of East Anglia and a Diploma in Competition Law from
King's College. He is qualified as a solicitor in England and Wales and is an attorney at the New
York State Bar. James is based in London and has practised law and lived in the US, Singapore
and Hong Kong. James was co-chair of the US-based Civil Justice Reform Group 2019-2022, and
is a director of the European General Counsel Association and the Association of Corporate
Counsel.
Sally Jackson
SVP, Global Communications
and CEO Office
Sally joined the GLT in March 2019 as Senior Vice President, Global Communications and CEO
Office. She leads our Communications and Government Affairs function globally and is also the
CEO’s Chief of Staff.
Prior to this, Sally was Senior Vice President, Office of the CEO and CFO and she previously
served as Head of Investor Relations. She joined GSK in 2001.
Sally holds a degree in Natural Sciences from the University of Cambridge.
Luke Miels
Chief Commercial Officer
Luke joined GSK and the GLT in 2017. As Chief Commercial Officer he is responsible for our
commercial portfolio of medicines and vaccines. Luke also co-chairs the Portfolio Investment
Board with Tony Wood and is a member of the ViiV Healthcare Board. Outside of GSK, Luke is a
member of the Singapore Economic Development Board.
He previously worked for AstraZeneca as Executive Vice President of their European business
and, prior to that, was Executive Vice President of Global Product and Portfolio Strategy, Global
Medical Affairs and Corporate Affairs. Before that, he was head of Asia for Roche, based in
Shanghai and then Singapore. Prior to that he held roles of increasing seniority at Roche, Sanofi-
Aventis and AstraZeneca in the US, Europe and Asia.
Luke holds a Bachelor of Science degree in Biology from Flinders University in Adelaide and a
MBA from the Macquarie University, Sydney.
Shobie Ramakrishnan
Chief Digital and Technology Officer
Shobie joined the GLT in 2021. As Chief Digital and Technology Officer, she is responsible for
Technology and Cyber Security at GSK. She joined GSK in 2018 as CDTO for GSK’s Commercial
business and has deep and broad experience in both biotech and hi-tech companies.
Prior to GSK, Shobie held senior technology leadership roles in organisations including
AstraZeneca, Salesforce, Genentech and Roche. She is Board Member Emeritus at
SustainableIT.org and was formerly a member of the board of directors at Remediant.
Outside of GSK, Shobie is a Non-Executive Director at Deliveroo.
Shobie holds a Bachelor’s degree in Electronics Engineering from Vellore Institute of Technology,
University of Madras, India.
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GSK Leadership Team (GLT)
117
Skills and experience
David Redfern
President, Corporate Development
David joined the GLT as Chief Strategy Officer in 2008 and is responsible for corporate
development and strategic planning. Previously, he was Senior Vice President, Northern Europe
with responsibility for GSK’s pharmaceutical businesses in that region and, before that, he was
Senior Vice President for Central and Eastern Europe. He joined GSK in 1994. David was
appointed Chairman of the Board of ViiV Healthcare Limited in 2011 and a Non-Executive
Director of the Aspen Pharmacare Holdings Limited Board in 2015.
He has a Bachelor of Science degree from Bristol University and is a Chartered Accountant.
Regis Simard
President, Global Supply Chain
Regis joined the GLT in 2018, when he became President, Pharmaceuticals Supply Chain.
He is responsible for the manufacturing and supply of GSK’s medicines and vaccines. In addition,
he leads Quality and Environment, Health, Safety and Sustainability at a corporate level. Regis
joined GSK in 2005 as a Site Director in France, rising to become Senior Vice President of Global
Pharmaceuticals Manufacturing before his current role. Previously, he held senior positions at
Sony, Konica Minolta and Tyco Healthcare. He is a member of the Board of ViiV Healthcare.
He is a mechanical engineer and holds an MBA.
Phil Thomson
President, Global Affairs
Phil joined the GLT in 2011. He was appointed President, Global Affairs in 2017, and has
responsibility for the Group’s strategic approach to stakeholder engagement, reputation and
policy development. Previously, Phil was Senior Vice President, Communications and Government
Affairs. He joined Glaxo Wellcome as a commercial trainee in 1996.
Phil holds a degree in English, History and Russian Studies from Durham University.
Deborah Waterhouse
CEO, ViiV Healthcare and President,
GSK Global Health
Deborah was appointed to the GLT in January 2020. She became Chief Executive Officer of ViiV
Healthcare in April 2017. In addition to ViiV, Deborah also leads GSK’s Global Health
organisation.
Deborah joined GSK in 1996 and, prior to ViiV, was the Senior Vice President of Primary Care
within GSK’s US business. She has a strong track record of performance in both specialty and
primary care. Deborah led the HIV business in the UK before heading the HIV Centre of
Excellence for Pharma Europe and held roles as General Manager of Australia and New Zealand
and Senior Vice President for Central and Eastern Europe.
Deborah is a Non-Executive Director of Schroders plc and holds a degree in Economic History
and English Literature from Liverpool University.
Tony Wood
Chief Scientific Officer
Tony was appointed Chief Scientific Officer (CSO), Head of R&D and a member of GLT on 1
August 2022, following his appointment as CSO designate on 19 January 2022. He joined GSK
from Pfizer in 2017 as Senior Vice President, Medicinal Science and Technology, responsible for all
science and technology platforms driving the delivery of new innovation.
Tony has led large-scale global organisations in drug discovery and development in multiple
therapeutic areas, including immunology, oncology and infectious diseases. During his time at
Pfizer, Tony was responsible for the invention of a new antiretroviral medication used to treat HIV
infection. He is a Fellow of the Academy of Medical Sciences, an Honorary Fellow of the Royal
Society of Chemistry (RSC), the highest honour given by the RSC, and a Fellow of the Royal
Society of Biology.
Tony has a BSc in chemistry and PhD in organic synthesis from the University of Newcastle, and
was a postdoctoral fellow at Imperial College, London. He is also currently a visiting professor at
IMCM Oxford.
GLT members departing during 2024
There were no changes to the composition of the GLT during 2024.
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GSK Leadership Team (GLT) continued
118
Board evolution
The Board is now three years into GSK’s transition as a pure
biopharma company. Each of my Board colleagues now brings
unique expertise and experience, contributing to the collective
strength of the Board’s scientific and technological capabilities
to oversee, support and challenge delivery of our strategy and
its underlying value proposition.
We now have the right balance of skills, background and
knowledge to equip us to challenge and support GSK’s
leadership team on performance. Board discussions are richer
and have increased intensity with every Board member
contributing based on their specialist areas of knowledge. Our
discussions focus on delivering our strategy and value creation,
whilst driving sustained value for patients, healthcare systems
and society at large.
Board changes
Given the appointments made in recent years, I am pleased to
report that looking forward we have reached a period of
stability in the Board’s membership. I reported last year that Urs
Rohner would step down at the AGM and be succeeded by
Wendy Becker. I set out in last year’s report the process we
followed for Wendy’s selection and appointment.
Board industry experience
Biopharma
Tech
Finance
0
2
4
6
8
10
12
The Nominations & Corporate Governance Committee has
since undertaken two further search processes in collaboration
with the Science Committee to refresh the Board’s scientific
expertise. These follow the departure of Dr Laurie Glimcher from
the Board in October 2022 and in anticipation of Dr Jesse
Goodman retiring from the Board after nine years’ service in
May 2025.
We were pleased to announce the appointment of Dr Jeannie
Lee in March last year. In addition, Dr Gavin Screaton will join
the Board in May, as Jesse retires. They both bring expertise in
key parts of our R&D approach.
Jeannie is Vice Chair of the Department of Genetics at Harvard
Medical School. She has brought her deep expertise in scientific
and medical innovation, including in the field of RNA biology
and epigenetics.
Gavin is a prominent figure in the field of immunology and
infectious diseases. He is Head of the Medical Sciences Division
at the University of Oxford, one of the world’s leading academic
research centres. Gavin’s work extends to other critical
infectious diseases, including HIV, SARS, and COVID-19, where
his research has influenced treatment and prevention strategies
worldwide.
Non-Executive Director tenure
n Up to 3 years: 40%
n 3-6 years: 40%
n 6-9 years: 10%
n Over 9 years: 10%
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Chair’s governance statement
119
The primary focus of the Board’s work
in 2024 was on building confidence in
the growth outlooks to 2031. In 2025,
the Board will spend significantly more
time on the period beyond 2031 and the
advanced technologies that will shape
the industry
Sir Jonathan Symonds, Chair
Board focus in 2024
The Board, both individually and collectively, has been deeply committed to driving forward GSK's purpose, strategy and
culture to support the creation of long-term shareholder value. During the year, the Board’s priorities and time was broadly
focused as follows:
GSK is continuing to deliver meaningful and consistent
performance improvements. This needs to be sustained through
effective capital allocation and thoughtful strategic choices.
The Board and management’s agendas are completely aligned
with a clear focus on the three time periods that management
communicates on – financial performance to 2026, pipeline
progress and business development to support the growth
ambitions to 2031, and the science and technologies that
support the long-term growth of the business beyond 2031.
The primary focus of the Board’s work in 2024 was on building
confidence in the growth outlooks to 2031. In 2025, the Board
will spend significantly more time on the period beyond 2031
and the advanced technologies that will shape the industry.
The Board remains extremely focused on disciplined allocation
of capital. The Board reviewed all of the strategies and priorities
prior to updates provided to the market. Our first priority for
capital remains to invest in growth in R&D. The revised 2031
Outlook and guidance for 2025, the launch of a share buyback
programme and the increased dividend expectations provided
with the 2024 annual results were reviewed extensively in the
second half of the year, along with GSK’s longer-term strategic
plan. This followed the Board, the Audit & Risk Committee and
management’s significant work in reducing the unnecessary
exposures for the company and shareholders in respect of the
Zantac litigation. The retirement of the Zantac risk, through the
settlement of the vast majority of the cases in the US, was an
important step.
Targeted business development remains a key priority. The
Board and Science Committee worked alongside Emma and
the management team to understand the scientific rationale,
competitiveness of the assets under consideration, and the
potential returns and value creation. This was a significant
activity in 2024.
Board visits are an important element of our Board programme.
In March, the Board had a three-day immersion in our HIV
franchise with a visit to ViiV’s hub in North Carolina, US. This
provided an opportunity to ensure that the Board has a deeper
understanding of the future prospects of the HIV business. The
meetings involved a panel discussion with key external
stakeholders from the HIV community, together with meetings
with the ViiV management team and its key talent. It then
concluded with a poster session with the R&D team in their lab
to review the HIV pipeline and ongoing projects. In March this
year, the Board will hold its meeting in Philadelphia, US, for an
immersion in Oncology.
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Chair’s governance statement continued
120
R&D progress and technology
The longer-term future of the company will come from deep
sustainable productivity of internally and externally sourced
R&D and from our investment in technology. We continue to
focus on the significant opportunities that can come from AI/
ML, which continues to be a theme running through every
Board meeting. Indeed, the path we set out on is rooted in our
commitment to transform our productivity through the use of
technology.Last year’s Board’s R&D updates centred on
Oncology – including ADCs, mRNA and RNA vaccines, immune
ageing and B cell depletion. We also reviewed therapy area
tech and target discovery. These discussions as always are
supported and validated by prior deep dives undertaken by the
Science Committee. The Board was also very pleased to track
R&D’s execution in the late stage pipeline during the year with
an exceptional 13 positive phase III clinical trial readouts across
Respiratory, Immunology & Inflammation, Oncology, HIV and
Infectious Diseases – a record for the company.
The Board continues to embrace the potential of AI/ML in
every part of the business. It is crucial to our medium- and long-
term success. We draw from the Tech expertise of our Board
members, most especially Dr Hal Barron, with his experience at
Verily and Google, and Dr Vishal Sikka’s tech vantage points
and experience.
Our CEO also continues to bring insights from her role at
Microsoft, along with my own experience of the use of
technology in biotechs and the UK’s national genomics
programmes. We hold educational briefings on new
developments in AI/ML and review cyber and tech incidents in
the external environment to seek to ensure GSK’s environment
continues to safely evolve at pace. Our biggest investment has
been in R&D, but every part of GSK now has technology built
into its optimisation. Given the importance of Tech it was a
specific focus of the CEO’s 2024 objectives.
Sir Jonathan Symonds
Chair
25 February 2025
Financial Reporting Council’s UK Corporate Governance Code (FRC Code)
Financial experience
In accordance with the FRC Code, the Board determined that
Charles Bancroft has recent and relevant financial experience.
It also agreed that he has the appropriate qualifications and
background to be an audit committee financial expert as
defined by the Sarbanes-Oxley Act of 2002, and has
determined that he is independent within the meaning of the
Securities Exchange Act of 1934, as amended.
Members of the Audit & Risk Committee also have financial
and industry experience, details of which can be found in their
biographies on pages 113 to 116.
Compliance statement
The Board is pleased to report in 2024 it was in full alignment
with the provisions of the FRC Code. The Board’s explanation
of how the Board considers its workforce engagement
arrangements to be effective is set out on page 126.
The Board is also pleased to report that it has consistently
applied the principles of the Code, as set out on the pages of
this Corporate Governance report. A copy of the FRC Code is
available on the FRC’s website at www.frc.org.uk.
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Chair’s governance statement continued
121
Our corporate governance architecture is a framework designed to improve the Board's effectiveness and to support its oversight of
the GSK Leadership Team (GLT) as it delivers the company's strategy. This framework continues to evolve to support our
infrastructure and priorities as a pure biopharma business. GSK’s internal control and risk management arrangements are integral to
our overall corporate governance framework and are described on pages 62 to 81 and page 142.
To make sure the framework is as effective as it can be, it:
– has a clear division of responsibilities for individual and collective Board roles, as described on page 123
– distributes workload to Board committees that have the requisite skills and focus
– has highly committed Board Directors who are motivated to carry out their roles and responsibilities for the success of the
company
The Nominations & Corporate Governance Committee periodically reviews this architecture and recommends any changes to the
Board. In 2024, the Committee undertook such a review of the structure to ensure the Board was operating effectively. Further
details and the results of this review are set out on page 134.
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Corporate governance architecture
122
Committee roles
Committee
report
on page
Committee
Role and focus
Membership
Nominations
& Corporate
Governance
Reviews the structure, size and composition of the Board, including appointment of
members to Board committees. Makes recommendations to the Board as appropriate.
Plans and assesses orderly succession for Executive and Non-Executive Directors and
reviews management's succession plan to ensure its adequacy
Is responsible for overseeing, monitoring and making recommendations to the Board on
corporate governance arrangements. Reviews Board and GLT conflicts of interest
Sir Jonathan Symonds
(Chair)
Charles Bancroft
Dr Anne Beal
Wendy Becker
Dr Hal Dietz
134-135
Science
Supports the Board in its understanding of business development transactions and the key
strategic themes on which the company's R&D strategy is based, by reviewing underlying
scientific assumptions in detail and giving the Board technical assurance. Supports
oversight of R&D-related risks
Dr Hal Dietz (Chair)
Dr Hal Barron
Dr Jesse Goodman
Dr Jeannie Lee
136-137
Corporate
Responsibility
Considers GSK's Trust priority and has oversight of our Responsible Business approach
and strategy, performance and reporting. This reflects the most important issues for
responsible and sustainable business growth. Has oversight of the views and interests of
our internal and external stakeholders, and reviews issues that could have a serious impact
on GSK’s business and reputation
Dr Anne Beal (Chair)
Wendy Becker
Dr Jesse Goodman
Dr Jeannie Lee
Dr Vishal Sikka
137-138
Audit & Risk
Reviews the financial reporting process, the integrity of the company’s financial statements,
the external and internal audit process, the system of internal control, and the identification
and management of risks such as Information and cyber security, and the company’s
process for monitoring compliance with laws, regulations and ethical codes of practice
Oversees Responsible Business data reporting and assurance. Initiates audit tenders, the
selection and appointment of the external auditor, setting the auditor's remuneration and
overseeing its work
Charles Bancroft (Chair)
Elizabeth McKee
Anderson
Wendy Becker
139-145
Remuneration Sets the company’s Remuneration policy having regard to GSK’s workforce remuneration
so that GSK is able to recruit, retain and motivate its executives
Regularly reviews the Remuneration policy to make sure that it is consistent with the
company’s scale and scope of operations, supports the business strategy and growth
plans, is aligned to the wider workforce and helps drive the creation of shareholder value
(The Chair and the CEO are responsible for evaluating and making recommendations to
the Board about remuneration arrangements and policy for the Non-Executive Directors)
Wendy Becker (Chair)
Elizabeth McKee
Anderson
Charles Bancroft
Dr Anne Beal
146-186
Chairs’
Acts on behalf of the Board between its scheduled meetings to take decisions on urgent
matters in accordance with matters and authority delegated to it by the Board from time
to time
Sir Jonathan Symonds
(company Chair)
Senior Independent
Director
Board committee Chairs
n/a
Each Board committee has written terms of reference that are approved by the Board and reviewed at least annually to make sure they comply
with the latest legal and regulatory requirements and reflect best practice developments. The Terms of reference of each Board committee is
available at gsk.com.
Leadership
Chair
Jonathan Symonds
– leads and manages the business of the Board
– provides direction and focus
– makes sure there is a clear structure for the Board
and its committees to enable them to operate
effectively
– maintains a dialogue with shareholders about the
governance of the company
– sets the Board agenda and ensures sufficient time is
allocated to promote effective debate and sound
decision-making
– makes sure the Board receives accurate, timely and
clear information
– meets regularly with each Non-Executive Director to
discuss individual contributions, performance and
training and development needs
– shares peer feedback as part of the Board evaluation
process
– meets regularly with all the Non-Executive Directors
independently of the Executive Directors
The Chair’s role description is available at gsk.com
Chief Executive Officer
Emma Walmsley
– manages the Group and its business
– develops the Group’s strategic direction for the
Board's consideration and approval
– implements the agreed strategy
– is supported by the GLT
– maintains a continuous dialogue with shareholders
about the company’s performance
The Chief Executive Officer’s role description is available
at gsk.com
Independent oversight and rigorous
challenge
Senior Independent Non-Executive Director
Charles Bancroft
– acts as a sounding board for the Chair and a trusted
intermediary for other Directors
– together with the Non-Executive Directors, leads the
annual review of the Chair’s performance, taking into
account the views of the Executive Directors
– discusses the results of the Chair’s effectiveness
review with the Chair
– leads the search and appointment process and
makes the recommendation to the Board for a new
Chair
– acts as an additional point of contact for
shareholders and maintains an understanding of their
issues and concerns through meetings with
shareholders and briefings from the Company
Secretary and Investor Relations
The Senior Independent Non-Executive Director’s role
description is available at gsk.com
Non-Executive Directors
– provide a strong independent element to the Board
– constructively support and challenge management
and scrutinise its performance in achieving agreed
deliverables
– shape proposals about strategy and offer specialist
advice to management
– each has a letter of appointment setting out the
terms and conditions of their directorship
– devote such time as is necessary to properly carry out
their duties
– are expected to attend all meetings as required
The Non-Executive Directors' role description is available
at gsk.com
Company Secretary
Victoria Whyte
– secretary to the Board and all Board committees
– supports the Board and Committee Chairs to plan agendas and annual programmes
– ensures information is made available to Board members in a timely fashion
– supports the Chair to design and deliver Board inductions
– coordinates continuing business awareness and training for the Non-Executive Directors
– undertakes internal Board and committee evaluations at the Chair's request
– advises the Directors on Board practice and procedures and corporate governance matters
– chairs the Group's Disclosure Committee
– operates a Board-approved appointments policy that reflects the Board and external
appointment requirements of the UK Corporate Governance Code
– is a point of contact for shareholders on all corporate governance matters
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Corporate governance architecture continued
123
2024 Board and committee attendance
Board appointments policy
All our Non-Executive Directors are expected to devote such time as is necessary for the performance of their duties. Each
Director is required to attend a minimum of 75% of scheduled Board and committee meetings. However, we recognise that
there may be rare occasions when this is not possible. Special allowance is also given during the first year of Board membership
while calendars are aligned.
Our Board Directors’ external appointments are governed by a Board-approved policy. External appointments can help Board
and GLT members widen their expertise and knowledge, and perform their roles more effectively. When proposing a new Non-
Executive Director appointment to the Board for approval, the Board considers the other demands on the individual’s time.
Before being appointed to the Board, an individual is required to disclose the significant commitments they may have with an
indication of the time involved.
The Board considers and approves all additional external appointments for serving Directors, noting the nature of the role and
type of organisation, time commitment and any potential conflicts that could arise.
The Company Secretary maintains a register of commitments and potential conflicts. The Board is satisfied that given
Directors’ other interests, each has sufficient time to carry out their GSK role. Our Executive and Non-Executive Directors may
undertake a maximum of one and up to four other listed-company directorships respectively.
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Corporate governance architecture continued
124
Board
Chairs’
Nominations &
Corporate
Governance
Science
Corporate
Responsibility
Audit & Risk
Remuneration
Total number of routine meetings
6
4
5
3
4
6
4
Current members
Attended
Attended
Attended
Attended
Attended
Attended
Attended
Sir Jonathan Symonds
6
4
5
Emma Walmsley
6
Julie Brown
6
Elizabeth McKee Anderson
6
6
4
Charles Bancroft
6
4
4 (5)
6
4
Dr Hal Barron
6
3
Dr Anne Beal
5 (6)
3 (4)
4 (5)
4
4
Wendy Becker
6
3 (3)
3 (3)
4
6
4
Dr Hal Dietz
6
4
3 (3)
3
Dr Jesse Goodman
6
3
4
Dr Jeannie Lee (joined 4 March 2024)
4 (5)
3
3 (4)
Dr Vishal Sikka
6
4
Retired members
Urs Rohner (until 8 May 2024)
3 (3)
1 (1)
2 (2)
3 (3)
1 (1)
Number of additional meetings
7
8
1
3
1
In agreement with the Chair, Charles Bancroft and Dr Anne Beal missed meetings in December and March 2024 respectively due to extenuating
circumstances. Dr Jeannie Lee joined the Board in March 2024. In her first year as a director she was able to attend all meetings, other than the Board’s
meetings in May 2024 which unfortunately clashed with pre existing external commitments.
For those Directors who served for part of the year, the numbers in brackets show the number of meetings they were eligible to attend. Details of committee
members’ skills and experience are included in their biographies on pages 113 to 116.
Engagement
Prioritising continuous engagement
Our stakeholders rightly have high expectations of us, and our
dynamic operating environment presents many challenges and
opportunities. As a Board, we aim to balance our commercial
success with our stakeholders’ expectations, upholding our
reputation, maintaining our licence to operate and building
trust. We engage with, or are briefed about, our stakeholders'
views to make sure we identify and respond to their
expectations effectively and appropriately.
How we engage with our main stakeholder groups – including
patients, shareholders, customers and our people – is covered
in the pages of the Strategic report.
Patients and our people are the heart of our culture. Our people
are accountable for outcomes and committed to doing the
right thing. Our culture is described on pages 58 to 60 of the
Strategic report.
The influence and importance of different stakeholder groups
can vary, depending on the matter being considered. Certain
stakeholders’ interests can be in conflict, meaning that we, as a
Board, need to make balanced judgements.
Continuous stakeholder engagement and feedback helps us
identify emerging issues. It also enables us to make decisions in
the context of what is relevant and important to each of them.
Our principal Board committees, and the GLT, undertake
engagement on the Board’s behalf according to their remit.
This means that they can build a detailed understanding of how
our actions or plans are affecting or might affect stakeholders.
These insights are then shared with the Board.
In particular, the Board receives briefings on stakeholders’
perspectives from the work of the Corporate Responsibility
Committee, which is discussed on pages 137 and 138.
Board members regularly receive:
– the CEO’s Board report
– a specific external stakeholder insights report. This provides
strategic insights based on an analysis of key developments,
achievements and risks affecting our reputation and the
perceptions of all our external stakeholders
– a regular investor relations report which summarises investor
perceptions
– regular corporate governance, litigation and regulatory
updates
The Board also learns of stakeholders’ views through:
Engagement and feedback events: such as quarterly investor
results calls, the Annual General Meeting, employee survey
reports, the Board’s workforce engagement activities, and from
experts presenting at Board or committee meetings. The Chair
also holds regular investor check-in meetings, which the Senior
Independent Non-Executive Director, Charles Bancroft,
sometimes joins, and is available for individual meetings with
investors.
Other opportunities: Board members also receive wider
stakeholder views during the annual strategy meeting with the
GLT, as part of the yearly review of strategy, budget and
planning processes. This also includes a review of specific
aspects of the company’s policies or strategy. In addition, Board
members are encouraged to meet individually with employees,
shareholders and other key stakeholders during their induction,
and then on an ongoing basis. They are expected to report to
the Board on such experiences where relevant and material.
Engaging with our shareholders
As a Board, we aim to directly engage with and be directly
accountable to institutional investors and private retail
shareholders. We do this in several ways, including regular
communications, the Annual Governance Meeting, our Annual
General Meeting, and through the work of our Investor Relations
team, the Chair, Jonathan Symonds, and our Company
Secretary, Victoria Whyte. Our Senior Independent Non-
Executive Director, Charles Bancroft, is another point of contact
for our shareholders.
Each quarter, our CEO, Emma Walmsley, and CFO, Julie Brown,
give results presentations to institutional investors, analysts and
the media by webcast. They are also regularly joined by the
Chief Scientific Officer, the Chief Commercial Officer, and CEO,
ViiV Healthcare and President, Global Health, GSK. They are
able to provide investors with more detailed insights into their
specific areas of responsibility.
Through regular meetings, Emma and Julie each have an
ongoing and active dialogue with institutional shareholders
about the company's performance, plans and objectives. In
2024:
– CEO: 69 engagements, representing 36% of the company's
issued share capital
– CFO: 134 engagements, comprising 41% of the company’s
issued share capital
Our Chair maintains a consistent dialogue with shareholders
too – including fund and portfolio managers – and regularly
engages with governance and sustainability professionals.
During 2024, and up to the date of publication of this Annual
Report, Jon held over 30 individual meetings with a range of
institutional shareholders, and met or corresponded with
shareholders which make up approximately 60% of the
company’s share capital. This enables him to gain a current
understanding of shareholders' views, insights and perspectives
of the company. He also discusses the continual evolution of
the many aspects of Board governance, performance oversight
and succession.
Strategic report
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GSK Annual Report 2024
Board activities
125
Annual Governance Meeting
We held this year’s hybrid meeting in central London at our new
HQ. We invited institutional shareholders (representing
approximately 60% of our share capital), key investment
industry bodies and proxy advisory firms. Approximately 25
representatives of various institutional shareholders and proxy
advisers attended the event, comprising around 30% of GSK’s
share capital.
The meeting is designed to be as interactive as possible. It
began with our Chair sharing the Board's priorities and focus for
2024 and beyond, with our Remuneration Committee Chair
then giving an update on the initial 2025 Remuneration Policy
proposals. Our Chair, Remuneration Committee Chair and our
Non-Executive Directors then held an informal and open
discussion of those issues on shareholders' minds, which helped
foster a richer dialogue.
The key themes covered included the:
– Board’s focus on value creation, governance and oversight of
strategy
– Board focus areas of 2024
– Initial proposals for the 2025 Remuneration Policy
The meeting was well received and shareholder feedback was
shared with the Board.
Annual General Meeting
We were pleased to hold the company's AGM at the Royal
Lancaster Hotel in May 2024 for shareholders to attend in-
person or virtually (a hybrid meeting). We welcomed 125
shareholders in person and 38 shareholders virtually via the
Lumi platform to watch and hear updates from our Chair and
the CEO, ask questions and to vote. Our shareholders approved
all resolutions, with majorities ranging from 92% to 99%.
Our hybrid AGM this year will be held at a new venue, The
Landmark London hotel in Central London, which is located
near our new global headquarters. For more details see page
322.
Engaging with our people
We have well-established and strong engagement mechanisms
with our employees, which the Board monitors regularly. These
engagement mechanisms are described on pages 58 to 60.
Four key governance channels help the Board understand what
our people are thinking:
– regular Board updates from our Chief People Officer and the
CEO on culture and talent (please see pages 58 to 60 for
further details on our culture and people)
– feedback from an annual employee engagement survey,
including questions on engagement, confidence and
inclusivity
– a range of pulse surveys of different-sized employee groups
to help check sentiment on a quicker and more frequent
basis, and to provide valuable insights on the impact of major
initiatives, events or communications and direct engagement
by the Board
Workforce engagement: Before the company's demerger, the
Board reviewed its formal workforce engagement
arrangements. We decided to move from a specific Workforce
Engagement Director model and to apply an ‘alternative
arrangement’ to the three methods set out in the FRC Code.
Given that the GSK Board was refreshed in terms of tenure with
a renewed purpose and focus as a global biopharma company,
we considered at that time the importance of adopting a
collective Board engagement model. The Board continues to
agree this to be the most effective approach to ensure it hears
employees’ views directly.
The model operated effectively in 2024 through:
– in-person receptions with local employees during Board site
visits, including in Durham (North Carolina, US), Boston
(Massachusetts, US) and our new global headquarters in
central London
– the Chair's site visits, including to Upper Providence
(Pennsylvania, US) and Wavre (Belgium)
– the Chair's attendance at management meetings, including
Saudi Arabia and China
– the Chair and Corporate Responsibility Committee Chair
organising and attending ongoing meetings with leaders of
our employee resource groups to talk about how they
experience GSK and to hear their suggestions to further
enhance support and ensure that we meet the needs of all
our employees to enable them to do their best work for GSK
– a variety of bespoke engagements that have enabled a
broad and open dialogue and facilitated first-hand
engagement discussions between the Non-Executive
Directors and our people individually and as part of small
groups, encompassing perspectives on our strategy, purpose
and Ahead Together culture
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126
Meeting programme
To work in the most effective way, the Board's annual meeting programme focuses on delivering our short-, medium- and long-term
strategy. The Board meeting programme is completely aligned with the Board committees’ and management’s agendas with a
clear focus on these three strategic time periods that we communicate on – financial performance to 2026, pipeline progress and
business development to support our growth ambitions to 2031, and the science and technologies that support growth beyond 2031.
During the year, the overriding focus of the Board’s work was on building confidence in our growth outlooks to 2031. In 2025 the
Board will spend increased time on our strategy beyond 2031.
In support of this work, the Board received papers and presentations and discussed progress with management and our people on
the key areas of focus set out below. These materials and discussions help the Board make effective decisions, and contribute to its
oversight of business performance and ensure good governance.
Areas of focus in
2024
Execution of
long-term
strategy
Overseeing GSK as a pure biopharma business and delivery of our 2031 Outlooks and beyond included:
– setting and approving the Board's 2024-2025 priorities
– scrutinising updates on R&D strategy and progress, and progression of our pipeline
– reviewing approach to data technology to accelerate our ambitions
– reviewing the critical role and ambitions for our global supply chain
– discussing our overall commercial strategy
– discussing progress on our AI adoption strategy
Strengthening of
business model
Overseeing the fundamentals of commercial execution, cost-base management, capital allocation, pipeline and culture included:
– receiving regular reports from the CEO, CFO and CSO including the assessment of delivery of performance targets
– assessing the product area strategy reports on Specialty Medicines, General Medicines and Vaccines
– increased outlook for 2031 and set guidance for 2025
– reviewing GSK's capital allocation priorities to ensure investment for growth to deliver improved returns for shareholders
– instigating a £2 billion share buyback programme
– evaluating business development transactions, acquisitions and strategic partnerships with third parties including iDRX,
Chimagen Biosciences, Flagship Pioneering, CureVac and Aiolos Bio
– scrutinising the Group's financial performance, shareholder value creation and development of Investor Relations Roadmap
– reviewing and endorsing approach to concluding Zantac litigation
– approving the monetisation of the retained shares in Haleon
Enhancing
Responsible
Business
leadership
Overseeing culture and embedding Responsible Business included:
– endorsing approach to Double Materiality Assessment reviewed by the Audit & Risk and Corporate Responsibility committees’
joint session
– approving the Responsible Business Performance Report
– reviewing stakeholder perception research
Regular oversight
of corporate
governance
The Board’s programme of governance included:
– reviewing the quarterly financial results, dividend proposals, earnings guidance, investor materials, results announcements and
2023 Annual Report and Form 20F, and receiving related reports from the external auditor
– setting the annual budget and the forward-looking three-year plan and long-range forecast
– conducting an annual review of the enterprise risk responsibility framework and enterprise-wide risks
– undertaking an annual Board evaluation and implementing its agreed outcomes
– receiving reports on Board committee work and reviewing and continuing to evolve the Board’s governance architecture
– evaluating the CEO’s 2024 performance, and setting her 2025 objectives
– reviewing culture, talent and succession plans
– engaging with our stakeholders and people to gather and understand their views about our activities, operations and culture
– reviewing the employee pulse survey results
– receiving reports on wider corporate governance and regulatory developments, and the Company Secretary’s report
– approving the company's modern slavery statement and gender pay gap positioning
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127
Decision-making
Section 172 statement
Board members are required by law to promote the success of their company for the benefit of shareholders whilst having regard
for other Section 172 factors as set out below. This statement meets the requirement, as set out in Section 172 and Section 414CZA of
the Companies Act 2006 (Act). It summarises how, during 2024, our Directors addressed the matters set out in Section 172(1) (a) to
(f) of the Act when performing their duties.
The Board considers that this statement focuses on those risks and opportunities that are strategically important to GSK, consistent
with the Group’s size and complexity. This allows it to properly understand the potential effects of the decisions it makes on all
stakeholders.
The details of our engagement with the main stakeholder groups, including our patients, shareholders, consumers, customers and
employees across the organisation, is summarised generally throughout the pages of our Strategic report. The Board's continuous
engagement with the company's shareholders and people is set out on pages 125 to 132. Our corporate governance architecture
and processes are summarised on pages 122 to 124.
The Board seeks to consider all relevant matters when making decisions, most especially when these are to continue to drive
performance and momentum for GSK into the future.
(a) Long-term results
The likely consequences of any decision in the long term
When making decisions about long-term proposals, the Board
reviews papers and other information and comments on how it:
– fits with, strengthens, or otherwise impacts the business
strategy and budget – and the three-year plan, if relevant
– is aligned with our Ahead Together ambition and outlooks
To make sure the Board can consider all factors when making
their decisions, they are also apprised of:
– success and risk factors
– alternatives considered, if appropriate
– the rationale for the proposed choice
– any relevant stakeholder impacts of the proposal, whether
positive and/or negative
Papers/information relevant to this duty are normally submitted
by the CEO; CFO; Chief Scientific Officer; Chief Commercial
Officer; President, Corporate Development; President, Global
Affairs, or other GLT members and/or their direct reports for
input, challenge and decision or awareness by the Directors
Matters considered by our Directors include:
– Pipeline progression reviews
– Budget planning
– Capital allocation priorities including for R&D, Business
development, our Dividend policy and the instigation of a
share buyback programme
– Commercial reviews (Specialty Medicines, General Medicines
and Vaccines)
– Responsible Business ambitions, including our six focus areas
For more details see our Ahead Together and business model
disclosures on pages 1 to 3
(b) Our workforce
Interests of our people
Our Directors understand that our people are at the core of our
Ahead Together ambition, helping to power our purpose and
delivering on our strategy and seek to create and oversee an
environment at GSK in which outstanding people can thrive.
A positive employee experience is critical to attract, retain and
motivate the best people
Papers/information relevant to this duty are normally submitted
to the Board by the Chief People Officer or Head of Reward for
input, challenge and decision or awareness by our Directors
Matters considered by our Directors include:
– Culture progress
– Talent pipeline
– Gender pay gap data, trends and reporting
– Employee engagement practices and feedback
– Health and safety risks
– Pay fairness and benefits
– Performance with choice and the workplace environment
For more details see our culture and people, inclusion and
diversity, and engaging with our people disclosures on pages 58
to 60, 54 and 55 and 126
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128
(c) Our business relationships
The importance of developing the Group’s business relationships with suppliers, customers and others
Patients are at the heart of our purpose and culture, and we are
all ambitious for patients, accountable for our impact and
doing the right thing
Our suppliers and other key stakeholders – including
governments, NGOs, healthcare authorities, healthcare
professionals, R&D joint venture partners, affiliate companies
and others – help us research, develop, manufacture, regulate,
provide access and distribute the medicines, vaccines and other
products that patients need
One of our Board's key imperatives is to make sure we develop
and monitor these relationships so that they properly serve
patients. In line with our Code of Conduct, our suppliers are
expected to meet our anti-bribery and corruption and labour
rights standards and to comply with our standards on quality,
health and safety, and the environment. In helping to foster
good relations with suppliers we offer preferential payment
terms to designated smaller suppliers in the UK and US
Papers/information relevant to this duty are normally submitted
by the CEO; CFO; President, Global Supply Chain; Chief
Commercial Officer; Chief Scientific Officer; President, Global
Affairs and/or their direct reports for input, challenge and
decision or awareness by our Directors
Matters considered by our Directors include:
– Access to healthcare
– Ethical standards
– Global health, health security and climate impacts
– Human rights
– Modern Slavery Act statement
– Product governance
– Scientific and patient engagement
– Supplier payment policy
– Third-party risk management programme
– Working with third parties policy
For more details see our Responsible Business disclosures on
pages 46 to 57
(d) The community and the environment
The impact of the Group’s operations on the community and our environment
The environment is one of our principal Responsible Business
focus areas. It is embedded in our strategy and fundamental to
our success. To get ahead of disease and achieve long-term
success, we recognise that we need to consider Responsible
Business impacts across everything we do. This extends from
the lab to patients, by taking action on climate and nature
Our manufacturing sites have a key role in our contribution to a
net zero, nature-positive, healthier planet, and environmental
sustainability is a fundamental part of our global supply chain
strategy. Supplier action will in turn help us achieve our
environmental goals on climate and nature. This is embodied in
our Sustainable Procurement Programme which has seen our
suppliers take action on carbon, power, heat, transport, water,
waste, and sustainable, deforestation-free sourcing of materials
in support of our environmental sustainability goals
We believe GSK should be supportive of the local communities
that we serve. We are strengthening education investments to
support long-term talent pools and increasing the positive
impact of volunteering activities within our communities. We are
also investing in plans to improve natural habitats, protect
biodiversity and improve soil and water quality near our
manufacturing sites
Papers/information relevant to this duty are normally submitted
by the President, Global Affairs; President, Global Supply Chain;
Chief People Officer; and CEO, ViiV Healthcare and President,
Global Health, GSK and/or their direct reports for input,
challenge and decision or awareness by our Directors
Matters considered by our Directors include:
– Community investment and donations policy
– Clinical trial diversity planning and enrolment
– Environment, net zero and nature-positive goals
– Environment, health and safety risks
– Emerging climate and environmental legislative/regulatory
reviews
– Global health, health security and climate impacts
For more details see our Responsible Business and climate and
nature-related financial disclosures on pages 46 to 57 and 67 to
79
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(e) Our reputation
Our desire to maintain our reputation for high standards of business conduct
GSK seeks to be a force for good, with ambitious targets for
positive impact on the health of people, society and the planet.
The company manages risks effectively, takes action if things
go wrong and seeks to respect human rights. Our Board
regularly reviews the frameworks underpinning our standards of
business, including our Code of Conduct, a range of policies
and standards, and our corporate governance arrangements
Papers/information relevant to this duty are normally submitted
by the CEO; CFO; General Counsel; Chief Commercial Officer;
President, Global Affairs; Chief People Officer; Chief Digital and
Technology Officer; Chief Compliance Officer; the Company
Secretary; and Head of Audit & Assurance for input, challenge
and decision or awareness by our Directors
Matters considered by our Directors include:
– Audit & Assurance plan
– Code of Conduct
– Corporate and financial statements
– Corporate governance and regulatory updates
– Enterprise risk assessments
– Human rights
– Modern Slavery Act statement
– Responsible Business ambitions, including our six focus areas
– Emerging Responsible Business legislative/regulatory reviews
– Internal control and risk effectiveness reviews
– Speak Up and internal investigations
For more details see our Responsible Business and corporate
governance architecture disclosures on pages 46 to 57 and 122
to 124, and our separate Responsible Business Performance
Report
(f) Fairness between our shareholders
Our aim to act fairly between members of the Group
Our Directors seek to act fairly between the interests of all
shareholders – both major and retail shareholders alike. There is
regular and constructive dialogue with shareholders to
communicate our strategy and performance, to listen to
investor views and perspectives, promote investor confidence,
ensure our continued access to capital and inform our
Directors' decision-making on strategic matters. Our Board
navigates and weighs up a range of shareholder opinion to
make decisions that support the long-term success of GSK
Papers/information relevant to this duty are normally submitted
by the CEO; CFO; President, Global Affairs; Head of Investor
Relations; and the Company Secretary for input, challenge and
decision or awareness by our Directors
Matters considered by our Directors include:
– Annual General Meeting
– Annual Governance Meeting
– Meet the management events
– Group and individual Director shareholder meetings
– Investor and analysts perception surveys
– Investor relations plan
– Remuneration policy proposals
For more details see our shareholder engagement and
shareholder information disclosures on pages 125 and 126, and
319 to 338
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Investor information
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Key decisions
In its decision-making, the Board focuses on GSK's priorities as a pure biopharma company with strong momentum and big
ambitions, whilst balancing the interests of our stakeholders. Examples of some of the key decisions taken by either the Board or its
Committees to drive our purpose, momentum and strategy include:
Decision
How the Board/Committee regarded stakeholder interests
Stakeholder groups and other
section 172 duties considered
Upgraded ambition for
growth
The Board considered
upgrades to the long-term
ambitions for GSK, through
investing for the future and
demonstrating belief in the
short-, medium, and long-
term and delivering attractive
returns to shareholders.
In June 2021, GSK articulated to shareholders outlooks for the periods to 2026 and
2031. These were updated and increased at the beginning of 2024
Given GSK’s continued improved performance and strong momentum as a focused
biopharma company in addition to the settlement of the Zantac litigation, the
Board and Audit & Risk Committee agreed that a further update to investor
expectations was appropriate. The second update was announced with the
company’s 2024 annual results in February 2025
The Board has reviewed with management the product and business forecasts and
the gap between the market’s view of valuation and our own. The Board discussed
with management appropriate presentation of this to the market at a number of
meetings throughout the year
Stakeholders: Governments
and regulators, employees,
healthcare providers, patients
and investors
Other s172 duties:
Our long-term results, business
relationships, the community,
our environment and
reputation
Share buyback
programme
The Board reviewed and
approved plans for a £2
billion share buyback
programme
The Board reviewed and approved plans for a £2 billion share buyback
programme, to be implemented over the next 18 months. The programme
commenced on 24 February 2025 with an initial tranche of up to £0.7 billion
The priority for capital remains to invest in growth and in R&D. Equally, the Board
recognises that the value of GSK shares does not currently reflect its confidence in
our outlooks. The Board was very mindful of this and the need to deliver better
shareholder value over the short-, medium- and long-term timeframes. We thought
deeply about the gap between the market’s view of valuation and our own. Whilst
investing in the business will always be the first priority for the use of capital, the
Board believes that the balance sheet is now strong enough to support a share
buyback. This was intended to be a clear demonstration of the Board’s belief in the
medium- and long-term growth prospects of GSK
Importantly, the company will maintain planned increased levels of investment in
R&D, new launches and targeted business development, alongside the share
buybacks
Stakeholders: Patients,
employees and
investors
Other s172 duties:
Our long-term results,
workforce and business
relationships
Zantac litigation
resolution
The Board approved the
settlement of the vast
majority of Zantac litigation
cases
The Audit & Risk Committee exercised primary oversight for the Zantac litigation,
including the related accounting, disclosure and communication assessments. The
Board approved the terms of the settlement of 93% (approximately 80,000 cases)
of US state court Zantac product liability cases for up to $2.2 billion. It also
approved a separate settlement to pay a total of $70 million to resolve the separate
Zantac qui tam complaint. The settlements were agreed with no admission of
liability
The costs of these settlements were funded through existing resources, with no
changes to GSK’s growth agenda or investment plans for R&D as a result. The latest
status of the Zantac litigation is set out in Note 47 to the Financial statements,
Legal proceedings
Stakeholders: Governments
and regulators, employees,
patients and investors
Other s172 duties:
Our long-term results, business
relationships, the community,
our environment and
reputation
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
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131
Decision
How the Board/Committee regarded stakeholder interests
Stakeholder groups and other
section 172 duties considered
Responsible Business
reporting
The Board endorsed the
recommendations of the
Audit & Risk and Corporate
Responsibility committees to
adopt management's
proposals regarding the
Double Materiality
Assessment (DMA) and
evolution of Responsible
Business reporting
In a joint session, the Audit & Risk and Corporate Responsibility committees
reviewed management's roadmap to compliance with the European Union
Corporate Sustainability Reporting Directive (CSRD), for inclusion in GSK’s 2025
Annual and Responsible Business Performance & Disclosure reports
The DMA, which comprised both financial (risks and opportunities) and impact
(positive and negative) materiality assessments resulted in the identification of
eight subtopics broadly aligned with our six focus areas and our Responsible
Business Performance Rating system
The committees agreed, and the Board endorsed:
– management's assessment of the subtopics identified as being material
– the materiality threshold used, based on the assessment of financial and impact
materiality
– the proposed updates to our Responsible Business reporting strategy, including
– the production of a Responsible Business Performance & Disclosure Report
Stakeholders: Governments
and regulators, employees,
patients and investors
Other s172 duties:
Our long-term results, business
relationships, the community,
our environment and
reputation
Data technology and
accelerating GSK's
ambition
The Board reviewed and
endorsed plans, including
progress made on our AI
adoption strategy
The Board reviewed and provided feedback on the technology priority objectives
and management's approach to integrating technology into the core of GSK. In
particular, AI represented a transformative opportunity for patient and shareholder
impact, with a focus on achieving significant breakthroughs in scientific innovation,
target identification and accelerating the progress of our pipeline
While the opportunities presented by AI are clear and would be progressed at
pace, this would need to be balanced against:
– People and change: enlisting everyone at GSK in this effort and increasing
digital fluency across the company
– Data & Trust: meeting and maintaining the highest standards with regard to
trust and integrity in how we use and manage data
– External healthcare ecosystem: assessing the ecosystem of healthcare providers,
payers and regulators for digital opportunities and risks to manage
The Audit & Risk Committee also undertook a review of the evolution and
operational effectiveness of our AI Governance arrangements
Stakeholders: Patients,
employees, investors,
governments and regulators,
healthcare providers, payers
Other s172 duties:
Our long-term results,
workforce and business
relationships
Business development
The Science Committee
considered the scientific
merits of business
development opportunities
and, where relevant, for late
stage assets commercial
reviews, prior to the Board's
review and approval
The Board, with support from the Science Committee and commercial reviews for
late stage assets, reviewed many business development opportunities during the
year. Those leading to concluded transactions included:
– restructuring of the CureVac collaboration under which GSK has assumed full
control of developing and manufacturing candidates for seasonal influenza and
COVID-19 in phase II and avian influenza in phase I
– acquisition of an investigational T cell-engager from Chimagen Biosciences to
expand the immunology pipeline
– acquisition of iDRX, including the lead molecule being developed as a first-
and-second-line therapy for the treatment of Gastrointestinal Stromal Tumour
(GIST)
– partnership with Flagship Pioneering to discover novel medicines and vaccines
– acquisition of Aiolos Bio, including the phase II-ready long-acting antibody for
the treatment of adult patients with asthma and with potential for additional
indications
These deals were considered in the context of their potential to help us deliver
transformational medicines to patients and drive growth by accelerating our
pipeline
Stakeholders: Patients,
employees and
investors
Other s172 duties:
Our long-term results,
workforce and business
relationships
Remuneration policy
review
The Remuneration
Committee approved a new
2025 Remuneration policy
and performance measures,
which is subject to a binding
shareholder vote at our 2025
Annual General Meeting
Prior to developing the 2025 Remuneration policy, the Remuneration Committee
and Board chairs, on behalf of the Committee:
– undertook an extensive consultation process with our major investors, as well as
proxy advisers, on the proposed changes
– met with the Chief People Officer and HR leads for each area of the business to
hear their views on our remuneration arrangements at GSK and wider workforce
pay alignment opportunities
The Committee then carefully considered the feedback before finalising the Policy.
Further details are on pages 146 to 184
Stakeholders: Our people,
investors, patients,
governments, regulators and
proxy advisers
Other s172 duties:
Our long-term results,
workforce, the community, our
environment and reputation
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
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Evaluation
Board performance
The Board evaluates its performance, and that of its
committees, every year.
The evaluation is normally carried out externally every third
year. The most recent external evaluation was facilitated in
2022 by Jan Hall of No 4, a business advisory company that
does not have any other connection with GSK.
The 2024 Board and committee evaluation was conducted
internally by the Senior Independent Non-Executive Director
(SID), supported by the Company Secretary.
Action points
After due consideration and discussion, the Board noted that
the Board had performed well during the year and was
continuing to deliver to a new standard. The first phase of GSK’s
transformation since the demerger had built a foundation of
consistent execution and delivery. The Board’s priorities,
programme and meetings were well targeted and Board
materials continued to improve and focus on key areas of
discussion. Board discussions were robust and intense.
In terms of evaluating its performance for 2024, the Board’s key
consideration was that the value of GSK shares does not
currently reflect its confidence in GSK’s outlooks. The Non-
Executive Directors were very determined that GSK deliver
better shareholder value over the short-, medium- and long-
term timeframes.
The Board thought deeply about the gap between the market’s
view of GSK’s valuation and its own, during the course of 2024.
Whilst the Board was clear that investing in the business will
always be the first priority for the use of capital, the balance
sheet is now strong enough to support a share buyback. The
Board wanted this to be seen as a clear demonstration of its
belief in the medium- and long-term growth prospects for GSK.
The Board will continue to review performance in this regard
and consider other actions to address the gap if necessary.
In terms of the action points from the 2024 Board evaluation, it
was noted that:
– the Board held a deep dive with the Chief People Officer on
GSK culture and considered the key elements of GSK’s culture
training provided to each employee. The Board would
continue to be briefed on the evolution of GSK’s culture
– Board engagement opportunities with employees were
increased and had evolved to provide more focused
engagements. In addition, from 2025 the Board will begin
engaging more frequently with the participants in GSK’s
Enterprise Leadership Programme
– the Nominations & Corporate Governance Committee
undertook a review of each Board committee’s remit and
scope to ensure that they remained appropriate. They were
then updated to reflect the changes
Board committee evaluations
The review of the Board committees focused on potential
opportunities to further support GSK's momentum in its third
year as a pure biopharma company, to help remove duplication
and support the delivery of the Board's priorities identified for
2025. In addition, each committee reviewed its members'
tenure, knowledge, expertise and composition.
Each committee was considered to have operated effectively
and the following enhancements were agreed:
Corporate Responsibility Committee: was considered to be
performing well despite a challenging external environment.
The focus for 2025 would be to ensure that increased
monitoring was in place so that GSK was able to respond to the
evolving global environment.
Science Committee: would be spending even more time on
considering and identifying new science and technology
platforms that can continue to drive performance beyond 2030.
More time would also be allocated to strategy review
discussions and blue sky thinking.
Nominations & Corporate Governance Committee’s: primary
focus had resulted in the identification of excellent new Board
members. Consideration would be given to creating time to
identify expertise needed for the future to accelerate what
comes next. Consideration would also be given to further map
the potential routes for securing new Board members with
scientific experience in the future. The Committee would
continue to ensure that its succession planning work was
regularly refreshed.
Audit & Risk Committee’s: continued progress had been made
in streamlining Committee materials. It was agreed that this
should continue to be an objective. Opportunities would be
sought to create more time for the consideration and discussion
of risk.
Remuneration Committee: was considered to be performing
well despite a challenging environment. The focus for 2025
would be to finalise the Remuneration Policy for approval at the
company’s AGM. The Committee would continue to balance,
understand and navigate shareholder views and positions on
remuneration across the globe to ensure that GSK’s
remuneration policy could be as competitive as possible to
retain and recruit the talent needed for successful strategy
delivery. The Committee wanted to continue to track the wider
group’s philosophy on remuneration with a view that GSK could
be competitive in protecting and rewarding talent.
Opportunities to further streamline routine papers for the
Committee would also be explored.
Chair's evaluation
The SID carried out the Chair's evaluation. He sought feedback
on the Chair's performance from the Directors individually and
collectively. From this review, the Non-Executive Directors
concluded that the Chair was leading the Board appropriately
and effectively. The Chair and SID then discussed the results of
the review.
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Nominations & Corporate Governance Committee report
I am pleased to present my sixth report as Chair of the
Nominations & Corporate Governance Committee (the
Committee).
Board succession
In my Chair’s Governance statement, I discussed the important
Board appointment processes that have been undertaken
during 2024. A particular focus of the Committee this year has
been succession for the scientific and medical expertise of the
Board. Dr Jeannie Lee was appointed to the Board and
Science Committee in March 2024. The appointment of Dr
Gavin Screaton will also be effective from 1 May 2025. Further
details on the appointment of Dr Screaton are set out in my
Chair’s Governance statement.
The Committee seeks to follow best practice in all the searches
it makes, and appointments it recommends, to the Board,
agreeing the criteria for each role, the interview panel and
considering a comprehensive longlist of candidates. Shortlisted
candidates are interviewed and assessed against the chosen
criteria. Due diligence is then undertaken before the Committee
makes its final recommendation. Executive search firms are
appointed according to the company’s procurement policy and
based on their expertise relative to each role.
The Committee only engages search firms that are signatories
to the Voluntary Code of Conduct of Executive Search Firms.
The Committee worked with Russell Reynolds during 2024. They
also provided executive search services to the company.
The Committee reviewed the potential for conflicts of interest
and judged that there were appropriate safeguards against
such conflicts. With the exception of the planned retirement of
Dr Jesse Goodman, there are no imminent Non-Executive
Director retirements for the Committee to consider.
Corporate governance architecture
As part of its regular reviews of the company’s Corporate
Governance architecture on behalf of the Board, the
Committee monitors the composition of all Board committees
in consultation with each Committee Chair. This is with a view
to ensuring their composition is appropriate and makes the
best use of the Board members’ knowledge, skills and
experience. After the 2024 AGM, the Committee undertook an
in-depth review of the each Board committee’s membership to
ensure their composition was effectively calibrated to support
the Board’s priorities This resulted in:
– updates to the Nominations & Corporate Governance
Committee’s membership to include the Science Committee
Chair
– although no changes to the Remuneration Committee’s
membership were needed, it was agreed that the Science
Committee Chair would be invited to attend meetings where
his expertise would be of assistance in the Remuneration
Committee’s deliberations. This would be particularly helpful
with reviews of R&D performance measures and targets
– the appointment of Wendy Becker to the Corporate
Responsibility Committee (CRC) to create a membership
overlap between the CRC and Audit & Risk Committee, which
was deemed to be helpful to both
In parallel, we have overseen a complementary exercise to
further enhance the company’s Corporate Governance
architecture. This involved an in-depth review of each Board
committee’s Terms of Reference (Terms). This review sought to:
– simplify and improve consistency
– ensure continued alignment internally with current practice at
GSK and externally with laws, regulations and best practice
and
– accurately reflect the Board committees’ continuing remit
and the delegation of respective duties and authorities
continue to complement one another
The agreed updated Terms included the creation of a
‘Common Terms of Reference’ document to eliminate
duplication of administrative and logistical matters common to
all our Board committees. All our Terms are available at
gsk.com.
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During the year, we further strengthened the scientific
and medical expertise of the Board. Each of my Board
colleagues brings a unique skill set to contribute to our
collective purpose
Jonathan Symonds, Nominations & Corporate Governance
Committee
Corporate governance
The Committee regularly reviews, on behalf of the Board, GSK’s
corporate governance positioning, the external rating of GSK’s
corporate governance practices and emerging corporate
governance requirements.
Board and GLT composition
We are committed to ensuring the most appropriate
composition of our Board and its committees. The Board and
management seek to support and encourage an inclusive
culture throughout the company and being respectful of our
operating environment.
An effective Board includes a range and balance of skills,
experience and knowledge, as well as professional and social-
economic background and independence, with individuals who
are prepared to challenge each other collaboratively. This mix is
complemented by a range of personal Board attributes,
including character, intellect, judgement, honesty and courage.
The Committee in collaboration with all our Non Executive
Directors continued to review our talent and succession
pipelines and the development plans for key management roles
and their successors. During the year, we undertook our regular
deep dive of the emerging senior talent that the GLT had
identified. These are employees who were exceeding
expectations or who are exceptionally talented and who have
the potential to take on a GLT role in the future. These
discussions include reviewing our strategic approach to talent
development planning. The Board seeks to meet with these
individuals at employee receptions and through other Board
engagement opportunities. Non Executive Directors now also
meet more informally with participants in our Enterprise
Leadership Programme to get to know them better on a
personal level and support their continued development as
potential successors to our GLT leaders.
In 2024, the work of the Committee also included monitoring
our performance against the policy objectives we set to ensure
that our Board and committee composition and succession
planning promotes diversity, inclusion and equal opportunity,
pursuant to the principles of the FRC Code. These objectives
included gender and ethnicity representation targets for the
Board in accordance with the Financial Conduct Authority
(FCA)’s diversity targets, which we report on below (as required
by the UK Listing Rules). We met or exceeded these objectives
in the reporting period.
The Committee recognises that, going forward, the company
will make changes in several areas related to inclusion and
diversity to ensure continued compliance with the law and
being respectful of our operating environment, including no
longer applying a Board diversity policy.
Board and GLT diversity data collection
In 2024, diversity data has been gathered directly on a self-
identified basis as follows:
– Board members: using a questionnaire
– GLT members: individual election held on GSK's HR database
As required by the UK Listing Rules, all data published in the
following section of the report are as at 31 December 2024 and
the date of publication. We also continue to oversee the
developing pipeline of direct reports to the GLT. The Committee
is reviewing its future position with regards to the collection of
diversity data.
Sir Jonathan Symonds
Nominations & Corporate Governance Committee Chair
25 February 2025
FCA UK Listing Rule 6.6.6R(9) reporting
Number of Board
members
Percentage of the
Board
Number of senior
positions on the Board
(CEO, CFO, SID and
Chair)
Number in Executive
Management
Percentage of
executive
management
Gender identity or sex
Men
6
50%
2
6
50%
Women
6
50%
2
6
50%
Not specified/preferred not to say
—
—
—
—
—
Ethnic background
White British or other White (including
minority white groups)
9
75%
4
10
83.3%
Mixed/Multiple Ethnic Groups
—
—
—
—
—
Asian/Asian British
2
17%
—
1
8.3%
Black/African/Caribbean/Black British
1
8%
—
—
—
Other ethnic group
—
—
—
—
—
Not specified/preferred not to say
—
—
—
1
8.3%
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Science Committee report
I am pleased to present my second report as Chair of the
Science Committee (the Committee) on our activities during
2024.
The Committee’s key activities in 2024 were split into three
important areas:
– pipeline reviews: monitoring of GSK’s pipeline
– business development: undertaking technical reviews and
assessment of the scientific foundation for potential business
development transactions
– scientific deep-dives: discussing and analysing the key
scientific and technology themes which drive the company’s
R&D strategy
Pipeline progress
During 2024, the Committee continued to monitor the strong
progress of R&D. Our CSO, Dr Tony Wood, provided regular
updates on pipeline progress across the company’s four
therapeutic areas: respiratory, immunology and inflammation
(RI&I), oncology, HIV, vaccines and infectious diseases, which
has included 13 positive pivotal data readouts. Particular
highlights noted by the Committee during the year included:
– Positive results for ultra long-acting biologic depemokimab,
supporting dual indication filings for severe asthma and
chronic rhinosinusitis with nasal polyps (CRSwNP)
– Expanded approval for Jemperli to all adult patients with
primary advanced or recurrent endometrial cancer in the US
and EU, including MMRp/MSS tumours which represent
approximately 75% of cases
– Positive phase III data for Blenrep, including progression free
survival and overall survival, and multiple regulatory filings in
2L+ relapsed/refractory multiple myeloma
– Expanded approvals for Arexvy in adults aged 50-59 at
increased risk in the US, EU and Japan, in addition to positive
new data demonstrating protection over three full RSV
seasons
– Gepotidacin filed in the US as a potential first new antibiotic
for uncomplicated UTIs in 20 years
– Regulatory designations, including Breakthrough Therapy
Designations and Priority Reviews, in the US, EU, China and
Japan for several assets including: Blenrep for 2L multiple
myeloma, Jemperli in dMMR/MSI-H locally advanced rectal
cancer, GSK’227 (B7-H3 ADC) in extensive-stage small-cell
lung cancer and osteosarcoma, gepotidacin in uUTI and
bepirovirsen in hepatitis B, recognising their potential in areas
of significant unmet need
Business development transactions
The Committee continued to be actively engaged in evaluating
the scientific principles of business development transactions
during the year, aligned to therapeutic area focus and strategy.
Key transactions reviewed by the Committee during the year
included:
Respiratory, immunology and inflammation (RI&I)
– Aiolos Bio: acquisition of a potentially best-in-class TSLP
antibody (AIO-001) from Aiolos Bio, expanding GSK’s
respiratory biologics and portfolio of mechanisms in COPD.
– Chimagen Biosciences: acquisition of an investigational T
cell-engager from Chimagen Biosciences to expand GSK’s
immunology pipeline in autoimmune diseases such as lupus
– Flagship Pioneering: collaboration with the bioplatform
innovation company Flagship Pioneering, with the goal of
discovering and developing a portfolio of future
transformational medicines and vaccines, starting in
respiratory and immunology
– Relation Therapeutics: agreement with Relation Therapeutics,
using their Lab in the Loop platform to discover novel targets
for osteoarthritis, systemic sclerosis and other fibrotic
mechanisms, supporting our data-tech driven approach in
respiratory, immunology and inflammation
Oncology
– Duality Biologics and IDRx: licence agreement with Duality
Biologics for a CDH17 antibody-drug conjugate with
potential best-in-class treatment options in gastrointestinal
cancers and acquisition of IDRx, including lead molecule
IDRX-41, a highly selective KIT tyrosine kinase inhibitor being
developed as a first- and second-line therapy for the
treatment of GIST. These transactions add to GSK’s growing
portfolio in gastrointestinal cancers
Data and platform technologies
– Ochre Bio: licence agreement with Ochre Bio on a human
liver cell platform and multi-modal data for AI/ML modelling
and discovery to strengthen our data and platform
technology capabilities
– Elsie Biotechnologies: acquisition of Elsie Biotechnologies, an
oligonucleotide discovery and chemistry platform,
strengthening our platform technology capabilities
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The Committee has been impressed with the depth of
scientific talent within GSK, as well as the use of
technology to accelerate scientific research. This has
driven exceptional progress in R&D across each of our
therapeutic areas
Dr Hal Dietz, Science Committee
Deep-dives into innovative science
During the year, the Committee has continued to undertake
deep-dives into some of the scientific principles and highly
innovative technologies that support the execution of our R&D
priorities. These included, but were not limited to, the underlying
scientific rationale for key transactions and the application of
data and platform technologies across target choice, patient
identification, molecule design and clinical trial effectiveness.
The Committee is confident in the strategic approach to
generate pipeline value with competitive advantage.
Collaborating with other Board committees
We also supported the Remuneration Committee during its
review and implementation of the updated 2025 Remuneration
Policy. In particular, we provided specialist guidance to the
Remuneration Committee during the key considerations for the
selection, design, measurement and adoption of:
– a new stretching Pipeline measure for the Annual bonus plan
to reward delivery of shorter-term milestones for GSK's priority
pipeline assets
– the evolution of the Pipeline Sustainability measure for our
Performance Share Plan which now focuses on replenishment
of the pipeline and longer-term performance
The Committee already reviews the Performance Share Plan
Pipeline Progress targets annually prior to their approval by the
Remuneration Committee.
Going forward, we will also assist in assessing and disclosing
performance against both these measures.
Committee changes
We welcomed Dr Jeannie Lee to the Committee following her
appointment to the Board on 4 March 2024. Dr Lee’s expertise
in the field of RNA biology and its application to drug
development and therapeutics has already offered useful
insights into the Committee’s work and I look forward to her
continued contributions.
We also look forward to welcoming Dr Gavin Screaton to the
Committee, who will succeed Dr Jesse Goodman from 1 May
2025. His knowledge of immunology and infectious diseases will
provide invaluable perspective to the Committee’s discussions.
Dr Hal Dietz
Science Committee Chair
25 February 2025
Corporate Responsibility Committee report
I am pleased to present this report, which is my third as Chair of
the Corporate Responsibility Committee (the Committee).
To be successful over the long term, GSK needs to consider its
responsible business impacts and risks. The Committee oversees
the six areas that address what is most material to the business.
These comprise the issues that matter the most to our internal
and external stakeholders, including investors, our people,
healthcare professionals, governments and regulators and
particularly our patients who are the recipients of our portfolio
of products and the ultimate drivers of our business.
As we worked through our programme of activities this year, my
Committee asked management how:
– well the company is performing against, and making an
impact on the six Responsible Business focus areas
embedded in our strategy
– this supports our sustainable performance and long-term
growth
– further improvements can be identified and implemented
– we can best report to our key stakeholders on what we have
done and the level of impact we have made as we continue
to adapt to the reporting requirements of the UK, US and EU
To support this, we built a number of in-depth sessions into our
programme, including a combined session with the Audit & Risk
Committee on interrelated Annual Report and Responsible
Business performance.
External context
At the start of the year, we receive and discuss a comprehensive
update on management’s assessment of and view on the
external trends and outlook relevant to responsible business
issues. This sets the scene on the evolving investor, economic,
political, regulatory and cultural backdrop to our Trust priority,
and provides valuable context for the Committee in advance of
the business we undertake during the course of the year. The
Committee receives further updates if there are any material
changes to these external factors to help inform our approach
going forward.
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As a Committee, we oversee our performance, progress
and future plans across GSK’s six Responsible Business
areas. We view these areas as fundamental to
sustainable growth, positive societal impact and
consequential value for patients
Dr Anne Beal, Corporate Responsibility Committee
Responding to health impacts of climate change
The Committee heard from the Chief Scientific Officer and the
President, Global Affairs on the health impacts of climate
change. This helped us gain a greater understanding of how
GSK might need to evolve its therapy areas due to climate
change and nature loss. It also helped us identify the potential
business risks and opportunities of our products, so they can be
factored into planning our R&D. An independent review was
commissioned by management which assessed GSK’s product
and pipeline portfolio. These results were shared with the
Committee. This analysis suggested that GSK is well positioned
with innovative vaccines and medicines to address some of the
biggest health impacts arising from climate change, especially
in Infectious Diseases, HIV and Respiratory.
The Committee encouraged management to continue this work
to support the company’s long-term value proposition through
effective development of our R&D portfolio, strategic clinical
choices and future investments in the supply chain.
Progress on climate and nature ambition
The Committee received a performance update on our
pathway towards our net zero and nature goals. We discussed
how the company was responding to external trends that could
accelerate or disrupt our progress to achieving these goals and
we were satisfied that these are being properly addressed. We
also considered and endorsed the implementation of a number
of key adjustments to maintain momentum against these
stretching goals.
Health impact
GSK’s President, Global Health and President, Global Affairs,
outlined initial work that management had been undertaking to
explore how we might develop an appropriate approach to
measuring health impact. This includes working with two third
parties to shape and pilot new methodologies for both a
commercial and global health portfolio. The Committee asked
management to keep in mind the importance of scale, access,
reach and health impact as key concepts to help reinforce
GSK’s value proposition to society and shareholders.
Culture
The Committee heard from the Chief People Officer on the
continuing work to build a high-performing organisation with an
inclusive culture. We were pleased with the progress that had
been made across many aspects of talent and inclusion.
Responsible Business Performance Rating
The Responsible Business Performance Rating is one of our
KPIs and helps us measure delivery of progress on the six areas
most material to our business. This is the third year that the
Rating has been used and together with the Audit & Risk
Committee, we jointly continue to oversee its evolution to make
sure it meets the expectations of key stakeholders and remains
relevant in respect of upcoming regulations.
We monitored and evaluated GSK’s progress in 2024 against
the 22 metrics across the six focus areas comprising the Rating
at the half and full year, with a recommendation to the Board to
publish a final 'on track' Responsible Business Performance
Rating. For more details, see page 47 of the Strategic report
and in the Responsible Business Performance Report – both of
which are available at gsk.com.
Collaborating with other Board Committees
We supported the Remuneration Committee during its review
and implementation of the updated 2025 Remuneration Policy.
Together with the Audit & Risk Committee we jointly considered
the EU Corporate Sustainability Reporting Directive compliance
requirements for inclusion in GSK’s 2025 Annual and
Responsible Business Performance reports for publication in Q1
2026. For more details on this review, please see page 139 of
our Audit & Risk Committee Chair’s report.
Dr Anne Beal
Corporate Responsibility Committee Chair
25 February 2025
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Audit & Risk Committee report
I am pleased to present this report, which is my fourth as Chair
of the Audit & Risk Committee (the Committee), and in the
following pages I aim to share insights into the activities
undertaken or overseen by the Committee during the year.
At the beginning of the year, the Committee considered and
agreed the Annual Programme for 2024 (the Programme)
which is designed to complement and underpin the Board’s
priorities. These comprise the approach to financial, legal and
compliance, risk and assurance, internal control framework and
external auditing areas of oversight for the Committee.
Management prepares and submits concise papers on the key
issues for the Committee to review, contribute to and make
decisions on. Crucially, as Committee Chair, I have unfettered
access to the senior leadership, key members of their teams and
the external auditor. These include private Committee sessions
or regular one-on-one meetings outside the Committee cycle.
Based on the work the Committee has done or inspected during
the year, GSK continues to exhibit a strong compliance culture,
with a consistent tone and engagement from the top which
runs throughout the organisation.
We hold a selection of in-depth sessions in the Programme,
including regular reviews of cyber security and AI/ML control
environment, and a combined meeting with the Corporate
Responsibility Committee (the Committees) on our Responsible
Business performance, assurance and reporting, is discussed
below.
Financial
Financial reporting: The integrity of our financial statements,
including the Annual Report and quarterly results, remain at the
core of what the Committee does. This includes the review of
investor materials, our progressive dividend policy, and
payments and results announcements. Significant areas of
judgement related to our financial statements are presented to
the Committee by management and are commented on by the
Auditor, including overlaps and any variances with the Auditor’s
key audit matters. Further details are included on page 143 of
my report and the Auditor’s report on pages 190 to 203. We are
committed to representing GSK’s financial reporting disclosures
in a clear and transparent way and can confirm that the
financial reporting and controls framework remains robust. No
fundamental changes were required during the year.
UK Corporate Governance Code updates: In January 2024, the
Financial Reporting Council published an updated Code, which
includes a provision, effective 1 January 2026, requiring
companies to report on the effectiveness of material financial,
operational, reporting, and compliance controls. As a dual-
listed company, GSK is well-positioned to meet these new
requirements. We reviewed and endorsed management’s
approach to focusing on GSK’s most material controls, which
involved aligning our Internal Control framework with US
Sarbanes-Oxley processes. I look forward to providing further
details of the implementation of this approach in our next
Annual Report, before formally reporting against these new
controls in GSK’s 2026 Annual Report.
Responsible business reporting: The Committees jointly
considered the EU Corporate Sustainability Reporting Directive
(CSRD) compliance requirements for inclusion in GSK’s 2025
Annual and Responsible Business Performance reports for
publication in Q1 2026.
CSRD establishes externally assured, mandatory reporting of
sustainability issues, in relation to financial risks/opportunities
and positive or negative impacts on society and the
environment, against a standardised framework and taxonomy.
The Committees considered the roadmap to CSRD compliance,
then assessed and recommended to the Board the:
– double materiality topics, based around GSK’s six
Responsible Business focus areas, identified by management
as being the correct ones for disclosure and to be embedded
into strategic decision-making
– adoption of an appropriate Responsible Business reporting
strategy for GSK in future years, as outlined by management
Assurance Hub: 2024 saw the Hub complete its first full year of
operation after its successful launch in September 2023. The
Committees scrutinised measures taken by management in
continuing to strengthen the Hub’s governance, processes,
assurance and controls, how the Hub was discharging business
as usual activities and progress being made in the projects the
Hub is undertaking ahead of, and in readiness for, GSK’s
compliance with EU CSRD and SEC Climate reporting and data
requirements from 2025.
The Committees’ joint consideration of, and update on, the
Responsible Business Performance Rating for 2024 are set out
in the Corporate Responsibility Committee (CRC) Chair’s report
on page 137.
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The Committee’s activities during the year have focused
on Financial, Legal and Risk and assurance aspects of
the business. Our work has underscored GSK's
commitment to maintaining robust governance
frameworks and adapting to evolving regulatory
requirements
Charles Bancroft, Audit & Risk Committee
Legal
At each scheduled meeting, the Committee reviews legal
privileged reports given by the General Counsel on material
litigation and investigations. The Chief Compliance Officer
(CCO) also gives us updates. We monitor through to resolution
material and/or privileged investigations across the enterprise
that are either substantiated or unsubstantiated. Where
appropriate any corrective/mitigatory actions and lessons
learned will be discussed.
The Committee continued to exercise primary oversight for
Zantac litigation, including related accounting, disclosure and
communication assessments. This included assessing and
agreeing the details of GSK’s proposed resolution of the Zantac
settlement:
– of 93% (approximately 80,000 cases) of US state court
Zantac product liability cases for up to $2.2 billion and
– a separate settlement of the associated qui tam complaint
for $70 million, prior to the public disclosure of the settlement
The Committee is pleased to see the Zantac risk retired for the
best long-term interests of shareholders, with no admission of
liability. The latest status of the Zantac litigation is set out in
Note 47 to the Financial statements, Legal proceedings.
Risk and assurance
Risk management: GSK has a well-established and mature risk
management and internal control framework which is
described on page 142. The Committee continues to scrutinise
the operation of this framework and reviews refinements
proposed by management to ensure it remains fit for purpose
and is sustainable.
We monitor a dashboard of all GSK’s enterprise risks and the
process by which they are identified and prioritised. Key
enterprise risk topics for consideration by the Committee are
determined dynamically during the year following reviews
undertaken at Risk and Oversight Council (ROCC) meetings.
Following the review of the governance of enterprise risk
management oversight, the CCO and I proposed an enhanced
approach, with the Committee conducting more detailed
reviews of GSK’s Research practices, Patient safety and
Scientific and patient engagement. These reviews were
previously overseen by the Science Committee. The Science
Committee Chair now joins the Committee when we review
these enterprise risks together. The CRC leads on the review of
those enterprise risks relating to its key areas of focus. The
Committee continues to review any significant enterprise risk
escalations or associated investigations.
Following the 2024 review, we agreed to add Pipeline delivery
as a principal risk from 2025. This was agreed given the
evolving external reporting regulations and the paramount
importance of discovering and developing new medicines and
vaccines. All enterprise risk plans were updated in 2024 to
include assessment of data management and technology, in
addition to the existing areas of impact of geopolitics and the
exposure presented by third parties. In recognition of external
changes to the wider workforce ecosystem, going forward we
will oversee the mitigation of the potential risk of GSK failing to
deliver our strategic priorities as a result of inadequate skills or
planning.
Information and cyber security: This is a principal risk for GSK
and a key oversight area for the Committee. The Chief Digital
and Technology Officer (CDTO), Chief Information and Security
Officer (CISO) and CCO present updates regularly on
information and cyber security, as well as assessments of the
status of their associated key risk indicators. We are joined by
my Board colleague, Dr Vishal Sikka, for these discussions.
Dr Sikka and the CDTO’s skills and experience, especially those
related to cyber security, are set out on pages 116 and 117
respectively. The CISO and CCO’s experience and
responsibilities relating to cyber security are set out on page 134
of last year’s Annual Report.
During the year, the Committee discussed a scheduled external
NIST review of ongoing delivery against GSK’s Cyber Security
Plan by a specialist firm of independent cyber experts. This
industry best practice framework is known as the National
Institute of Standards and Technology Cyber Security
Framework (NIST-CSF). We are pleased that GSK’s cyber
maturity rating is currently positioned in the upper quartile of
our peers. This reflects an accelerated rate of execution and
maturity growth since the plan was approved by the Committee
in mid-2022 when the maturity rating baseline was established.
Since then, there has been a significant improvement in control
effectiveness. This continued strengthening of controls will help
to protect against the principal cyber security threats to GSK.
Given the ever-changing environment, we are currently
considering recalibrating GSK's cyber maturity goals to further
challenge GSK management to further enhance the protection
of our systems.
The Committee is pleased with the rate of execution of the plan
and progress made so far. We will continue to be briefed on
how the NIST assessment framework and methodologies
continue to adapt. We are also keen to observe management’s
deployment of other capabilities so that the company’s
defences remain relevant and robust in this rapidly evolving
dynamic threat environment.
Further details of the other measures taken during the year to
mitigate this risk are described on pages 66, 316 and 317.
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AI Governance: Our Responsible AI framework helps us
maintain clear guardrails as we scale adoption of AI across GSK
to drive innovation, growth and productivity and, in doing so, to
accelerate our purpose.
In my report last year, I described the establishment by the
Board of the AI Governance Council (Council), its purpose and
activities that helped to define, establish and oversee these
guardrails. The Council is aligned to the ROCC and
Committee’s reporting arrangements, as well as our other
governance forums, as appropriate. A year after the Council’s
creation, the Committee was keen to examine the:
– structure and evolving operational effectiveness of the
Council
– functioning of the responsible AI governance architecture,
including the complementary roles, duties, ownership and
composition of each of these AI forums
– overall increase in maturity of our AI risk management
arrangements
The Committee was pleased with the significant initiatives that
the Council had pursued and rolled out across the Group to
further enhance GSK’s AI environment. These included:
– approving an AI Policy that embeds new AI principles and
establishes guidelines for use of AI within the company. The
Policy applies to all AI developed, procured, or used by our
people at GSK. Responsible AI training modules continue to
be rolled out
– developing, adopting and publishing an AI Standard
Operating Procedure (AI SOP), defining steps required for all
development and/or procurement of AI systems across GSK
– monitoring an inventory of all AI models developed across
GSK. This is being actively monitored through the Council, as
the number of AI applications in use expands at pace across
the enterprise
The Committee received a briefing from the Head of Audit &
Assurance (A&A) on the results of an initial audit, that primarily
focused on evaluating how the AI Governance framework is
embedding across GSK. This has also helped strengthen
oversight capabilities by increasing the experience of the A&A
team in conducting audits and oversight of new technologies.
In 2025, the Committee is looking forward to monitoring how
the Council progresses its key focus areas. These include:
– supporting business units in further improving and refocusing
their AI systems to align to the AI SOP
– continuing to embed and grow the Responsible AI SOP
adoption throughout the organisation
– continuing to oversee and monitor AI systems, including
developing technical and operational best practices
– refining and maturing the Council’s governance approach for
scaled adoption of AI across GSK
During the formative stage of AI development and adoption,
the Committee is keen to ensure an appropriate balance is
maintained between identifying, mitigating and monitoring key
AI risk areas across the enterprise and with our third parties,
while harnessing the opportunities and capabilities of this
technology.
Assurance: The Head of A&A provides regular updates on
progress against the agreed Assurance Plan. During the year
we reviewed detailed briefings on:
– Third parties: The level of assurance work undertaken by A&A
and other assurance groups within the business, covering
exposure to third party services and suppliers used by GSK
was covered. Given GSK’s increasing reliance on third parties,
particularly in high-risk areas such as R&D, there is a need to
continue to strengthen the application of internal control
management in this area. We reviewed initiatives to drive
sustainable improvements and further enhance oversight in
this regard.
– Business development (BD): The execution of targeted BD
deals is a key Board priority to help drive the future growth of
the company. We reviewed a series of audits that examined
various aspects of BD, including diligence, governance,
decision-making, contracting processes, and subsequent
integration into the business. During future audits, A&A will
focus on the effectiveness of the implemented corrective
actions identified and embedded in such deals post
approval.
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Internal control framework
The Board recognises its obligation to present a fair, balanced
and understandable assessment of GSK’s current position and
prospects. It is accountable for evaluating and approving the
effectiveness of GSK’s internal controls, including financial,
operational and compliance controls, and risk management
processes.
We ensure the reliability of our financial reporting, and
compliance with laws and regulations, through our internal
control framework. This is a comprehensive enterprise-wide risk
management model, which supports the Board to identify,
evaluate and manage the Group’s principal and emerging risks,
as required by the FRC Code. The framework is designed to
manage the risk of GSK not achieving its business objectives.
A fit-for-purpose framework – complemented by our corporate
culture and Speak Up processes – ensures that the risks
associated with our business activities are actively and
effectively controlled in line with our agreed risk appetite. We
believe GSK’s framework provides reasonable, but not absolute,
assurance against material misstatement or loss.
The Board mandates the Group’s Risk Oversight and
Compliance Council (ROCC) of senior leaders to support the
Committee in overseeing risk management and internal control
activities. It also provides the business with a framework for risk
management and escalation of significant risks. Risk
management and compliance boards (RMCBs) across the
Group promote the ‘tone from the top’ and establish our risk
culture, and ensure effective oversight of internal controls and
risk management processes.
Each principal risk has an assigned risk owner, drawn from
senior management, who is accountable for managing the
principal risk with oversight from a GLT member, which includes
setting and implementing risk mitigation plans. Risk owners
report quarterly on their respective risk management approach
and progress at the ROCC and the appropriate Board
committee. Our Compliance function assists the ROCC and
RMCBs. Compliance is responsible for advancing enterprise-
wide risk management and for developing risk-based and
ethically sound working practices. It also actively promotes
ethical behaviours by enabling all employees to operate in line
with our culture and comply with applicable laws and
regulations.
Our Audit & Assurance (A&A) function provides independent
assurance to senior management and the Board on the
effectiveness of risk management Group-wide, in line with an
agreed assurance plan. This helps senior management and the
Board to meet their oversight and advisory responsibilities to
fulfil GSK’s strategic objectives and build trust with patients and
other stakeholders. A&A has a dual reporting line to the CFO
and the Committee.
As a Committee we receive regular reports from principal risk
owners, Compliance and A&A on areas of significant risk to the
Group and on related internal controls. These reports assess the
internal control environment within each principal risk area,
including enhancements to strengthen controls. Once we have
considered these reports, the Committee reports annually to the
Board on the effectiveness of GSK’s internal controls.
In 2024, through the authority delegated to the Committee, the
Board conducted a robust assessment of the Group’s principal
and emerging risks. This assessment in line with the FRC Code
included consideration of the nature and extent of risk the
Board is willing to take to achieve GSK’s strategic objectives.
The Board, via the Committee, also oversaw the effectiveness of
our internal control environment and risk management
processes across the Group for the whole year, up to the
approval date of this Annual Report.
More detail about the review of the Group’s risk management
approach is further discussed in the Risk management section
of the strategic report on pages 62 to 81.
The management of each principal risk is explained in ‘Principal
risks and uncertainties’ on pages 307 to 318. The Group’s
viability is discussed in the Strategic report on page 81.
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Significant issues relating to the financial statements
In considering GSK’s quarterly financial results announcements and the financial results in the 2024 Annual Report, the Committee
reviewed the significant issues and management judgements in determining those results. It reviewed management papers setting
out the key areas of risk, actions taken to quantify the effects of the relevant issues, and judgements made by management on the
appropriate accounting required to address those issues in the financial statements.
The significant issues considered in relation to the financial statements for the year ended 31 December 2024 are set out in the
following table, with a summary of the financial outcomes where appropriate. The Committee and the external auditor have
discussed the significant issues addressed by the Committee during the year and the areas of particular audit focus, as described in
the Independent Auditor’s Report on pages 190 to 203.
Significant issues considered by the Committee
in relation to the financial statements
How the issue was addressed by the Committee
Going concern basis for the preparation
of the financial statements
The Committee considered the outcome of management’s half-yearly and year-end
reviews of current and forecast net debt positions and the various financing facilities
and options available to the Group. The Committee also considered management’s
review of the impacts of both the current economic environment and climate
change. Following consideration of these assessments, which included stress testing
and viability scenarios, sources of liquidity and funding, forecasts and estimates, the
Committee confirmed that the application of the going concern basis for the
preparation of the financial statements continued to be appropriate.
Revenue recognition, including returns
and rebates (RAR) accruals
The Committee reviewed management’s approach to the timing of recognition of
revenue and accruals for customer returns and rebates. The RAR accrual for US
Commercial Operations was £5.2 billion at 31 December 2024 and the Committee
reviewed the basis on which the accrual had been made and concurred with
management’s judgements on the amounts involved. A fuller description of the
process operated in US Commercial Operations in determining the level of accrual
necessary is set out in Note 3 ‘Critical accounting judgements and key sources of
estimation uncertainty’ on pages 110 and 111.
Provisions for legal matters, including
investigations into various aspects of the
Group’s operations
The Committee received detailed reports on actual and potential litigation from both
internal and external legal counsel including the Zantac litigation, together with a
number of detailed updates on investigations into various aspects of the Group’s
operations. See Note 47 to the financial statements ‘Legal Proceedings’ for more
details including the Zantac litigation. Management outlined the levels of provision
and corresponding disclosure considered necessary in respect of potential adverse
litigation outcomes and also those areas where it was not yet possible to determine if
a provision was necessary, or its amount. At 31 December 2024, the provision for
legal matters was £1.4 billion; see Note 32 to the financial statements, ‘Other
provisions’ for more details.
Provisions for uncertain tax positions
The Committee considered current tax disputes and areas of potential risk and
concurred with management’s judgement on the levels of tax contingencies
required. At 31 December 2024, a tax payable liability of £0.7 billion, including
provisions for uncertain tax positions was recognised on the Group’s balance sheet.
Impairments of intangible assets
The Committee reviewed management’s process for reviewing and testing goodwill
and other intangible assets for potential impairment. The Committee accepted
management’s judgements on the intangible assets that required writing down and
the resulting impairment losses of £0.3 billion in 2024. See Note 20 to the financial
statements, ‘Other intangible assets’ for more details.
Valuation of contingent consideration
in relation to ViiV Healthcare
The Committee considered management’s judgement that it was necessary to
increase the liability to pay contingent consideration primarily as a result of
increases in sales forecasts, updated exchange rate assumptions and the unwind of
the discount. After cash payments of nearly £1.2 billion in the year, at 31 December
2024, the Group's balance sheet included a contingent consideration liability of
£6.1 billion in relation to ViiV Healthcare. See Note 33 to the financial statements,
‘Contingent consideration liabilities’ for more details.
ViiV Healthcare put option
The Committee reviewed and agreed the accounting for the Pfizer put option
and concurred with management’s judgement on the valuation of the put option
of £0.9 billion at 31 December 2024.
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Effectiveness and quality of external audit
process
The Committee is committed to making sure that GSK receives
a high-quality and effective external audit. In evaluating
Deloitte’s performance during 2024, prior to making a
recommendation on its reappointment in early 2025, the
Committee reviewed the effectiveness of its performance
against the criteria which it agreed with management at the
beginning of 2024.
The detailed criteria used to judge Deloitte's effectiveness as
external auditor are available at gsk.com. These are based on
the audit approach and strategy, ensuring a high-quality
independent audit, effective relationship and value for money.
The Committee monitors engagements with external
stakeholders relevant to our areas of oversight, including the
FRC and Securities and Exchange Commission.
We sought to ensure that Deloitte would deliver a smooth,
thorough and efficiently executed audit for 2024 and so
considered:
– the overall quality of the audit
– the independence of Deloitte
– whether Deloitte showed an appropriate level of challenge
and scepticism in its work.
Deloitte’s length of tenure was not taken into account when
assessing its independence and objectivity, given it only
commenced its role as auditor in 2018. However, the Committee
did consider how effectively it had assumed its role as auditor.
The Committee also considered the outcomes of an audit
effectiveness review undertaken by a team independent of the
auditor at Deloitte. As part of this process, interviews were
undertaken with key GSK stakeholders including Executive and
Non-Executive Directors and key corporate functions.
The interviews focused on assessment in a number of areas
including:
– alignment to expectations of external auditor
– feedback on Deloitte team members, including on their skills
and experience
– effectiveness of communication and ways of working
– audit approach and quality
– areas of focus for improvement
As Committee Chair, I regularly meet independently with the
audit partner. We also meet with the auditor privately at the
end of each Committee meeting to discuss progress, as
appropriate.
Having reviewed the above feedback, and noted any areas of
improvement to be implemented by the audit team for 2025,
the Committee was satisfied with the:
– effectiveness of the auditor and the external audit process
– auditor’s independence, qualifications, objectivity, expertise
and resources
We agreed to recommend to the Board Deloitte's
reappointment at the next AGM, and did so free from the
influence of any third party.
Auditor’s reappointment
External auditor
External auditor appointment
Last tender
May–December 2016
Transition year
2017
First shareholder approval of current
auditor
May 2018
First audited Annual Report and 20-F Year ending 31 December 2018
New lead audit engagement partner 2023
Next audit tender required by
regulations
2026 (to take effect from 2028)
There were no contractual or similar obligations restricting the
Group’s choice of external auditor.
Audit tender
The Committee considers that, during 2024, the company
complied with the mandatory audit processes and audit
committee responsibility provisions of the Competition and
Markets Authority Statutory Audit Services Order 2014.
As Deloitte continues to maintain its independence and
objectivity, and the Committee remains satisfied with its
performance, GSK does not currently intend to tender the
external auditor contract before the end of the current required
period of 10 years identified above and considers that this is in
the best interests of shareholders.
The Committee was mindful that there were appointments of a
new CFO for GSK and lead audit partner for Deloitte during the
2023 financial year. These changes help further mitigate the
risks of any over-familiarity between the company and the
auditor.
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Non-audit services
Management operates on the presumption that other
accountancy firms will ordinarily provide non-audit services to
GSK. However, where the external auditor’s skills and experience
make it the only suitable supplier of non-audit support – such
as for audit-related matters, tax and other services – it may be
used, in the best interests of the company.
In line with GSK’s non-audit services policy, the Committee
ensures that auditor objectivity and independence are
safeguarded by reviewing and pre-approving the external
auditor’s provision of such services. The company policy
complies with the FRC’s 2024 Revised Ethical Standard and the
Sarbanes-Oxley Act of 2002. It observes the following core
policy features on engaging the external auditor for non-audit
services:
GSK non-audit services policy, key features:
Process:
All non-audit services over £50,000 are put to
competitive tender with other financial services providers,
in line with the Group’s procurement process, unless the
skills and experience of the external auditor make it the
only suitable supplier.
Safeguards:
Adequate safeguards are established so that the
objectivity and independence of the Group audit are not
threatened or compromised.
Fee cap:
The total fee payable for non-audit services should not
exceed 50% of the annual audit fee, except in special
circumstances where there would be a clear advantage
in the auditor undertaking the additional work.
Prohibitions:
GSK’s policy includes a ‘whitelist’ of permitted non-audit
services in line with the relevant regulations. Any service
not on this list is prohibited.
Pre-approval:
All non-audit services require pre-approval as set out in
the table below to ensure services approved are
consistent with GSK’s non-audit policy for permissible
services. This process ensures all services fall within the
scope of services permitted and pre-approved by the
Committee and does not represent a delegation of
authority for pre-approval.
Value
More than £50,000
Between £25,000 and
£50,000
Under £25,000
Pre-approver
Committee Chair and CFO
Group Financial Controller
Designate of the Group
Financial Controller
Audit and other services comparison (£m)
2.2
1.6
6.3
21.1
20.4
20.6
0
10
20
30
2024
2023
2022
l Audit services
l Other Assurance services
Further fees payable to Deloitte for non-audit services relating to the
Consumer Healthcare demerger was £4.4 million in 2022 as set out on
page 128 of the 2022 Annual Report. A fee of £0.2 million was paid to
the auditor in respect of GSK pension schemes in each of 2022, 2023
and 2024.
The fees paid to the company's auditor and its associates are
set out above. Further details are given in Note 8 to the
financial statements, ‘Operating profit’ on page 222.
The Committee considered the level of non-audit services
incurred as part of its annual review of Deloitte’s independence
set out on the previous page and was satisfied that the auditor
continued to be independent and exercised objectivity
throughout 2024.
Fair, balanced and understandable assessment
The need for an annual report to be fair, balanced and
understandable is one of the key compliance requirements for a
company’s financial statements. To ensure that GSK’s Annual
Report meets this requirement, we have a well-established and
documented process governing the coordination and review of
Group-wide contributions to the publication. This runs in parallel
with the process followed by the external auditor. The
Committee received a summary of management’s approach to
GSK’s 2024 Annual Report to ensure it met the requirements of
the FRC Code. This enabled the Committee, and the Board, to
confirm that GSK’s 2024 Annual Report as a whole is fair,
balanced and understandable and provides the necessary
information for shareholders to assess the company’s position
and performance, business model and strategy.
Code of Conduct and reporting lines
We have a number of well-established policies (including a
Code of Conduct), which are available on gsk.com, together
with details of our confidential Speak Up lines for reporting and
investigating unlawful conduct.
Charles Bancroft
Audit & Risk Committee Chair
25 February 2025
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Remuneration Report contents include:
Page reference
Remuneration Committee Chair’s statement
146
2025 Remuneration policy consultation
147
2024 Total remuneration
156
2025 Pay for performance
163
2025 Remuneration policy
176
Dear Shareholder
On behalf of the Remuneration Committee, I am pleased to
present our Remuneration Report for 2024.
This is my first report since I succeeded Urs Rohner as
Committee Chair following our AGM in May 2024. I joined GSK
in October 2023 after many years of UK and multinational
board experience and have enjoyed learning about GSK and
how the Committee can continue to support GSK’s
transformation as a focused global biopharma business.
I will first report on the performance of GSK, the CEO and CFO
last year and the remuneration they have earned as a result. I
will then turn to the Committee’s work in reviewing our
Remuneration Policy for the next three years, ahead of our
Remuneration Policy renewal in May 2025.
Progress and Performance in 2024 and Outlook
GSK delivered another year of strong operational performance in
2024, with strong sales and core operating profit growth driven
by accelerating momentum of our Specialty Medicines portfolio.
This was achieved together with outstanding phase III pipeline
progress. Total 2024 sales were £31.4 billion (up 7% CER). Core
operating profit growth was +11% and Core EPS growth +10%
(both at CER) reflecting strong Specialty Medicines performance
and disciplined increased investment in progressing our R&D
portfolio. We were also pleased to have resolved the vast
majority of the Zantac litigation overhang. We announced the
closure of 93% of state court cases in October 2024 and now
have less than 1% of these state cases outstanding.
In addition, we issued guidance for 20251 to expect sales growth
of between 3% to 5%; Core operating profit growth of between
6% to 8%; and Core EPS growth of between 6% to 8%. This
included the expected benefit from a share buyback
programme of £2 billion that will operate over 18 months. The
programme commenced on 24 February 2025 with an initial
tranche of up to £0.7 billion. We were also pleased to further
increase our 2031 sales outlook1 to more than £40 billion (which
had been raised to >£38 billion less than a year ago), reflecting
late-stage pipeline progress, including Blenrep.
Beyond financial achievements and positive progress behind a
reshaped pipeline, GSK has continued its momentum in
operating as a Responsible Business (RB), as well as
strengthening its culture, with already high people survey results
increasing further, while attracting and building outstanding
capability in areas such as R&D and AI.
2024 Annual bonus
It is against this performance that the Committee reviewed the
annual bonus measures for the CEO and CFO. Annual bonus
targets are set to incentivise yearly progress towards the
delivery of our long-term strategy with a focus on delivering
outperformance.
The bonus is primarily focused on rewarding over-delivery of
financial performance against the targets set at the start of the
year, with those targets generally being ahead of external
consensus forecasts at the time they were set.
In terms of the two financial measures, the company delivered
strong sales growth of 8%, (around 2% above target) and Core
operating profit growth of 13%, (around 3% above target), both
excluding COVID-19 solutions. This demonstrated the resilience
of the business given the challenging environment for our
Vaccines business in the second half of the year.
The Committee also carefully reviewed performance against
the non-financial individual strategic and operational measures
for the CEO and CFO for 2024. We have provided greater
detail on performance against each of their objectives and
achievements on pages 159 and 160.
Before finalising the bonus outcomes, the Committee
considered the broader performance of the company and the
individuals. The Committee was satisfied that the payouts were
appropriate given the strong financial and operational results
for 2024, supporting delivery of our long-term strategy, though
also recognising a less robust share price performance.
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GSK is successfully entering its next stage as a global
biopharma company, delivering strong operational
performance. After active engagement with a range of
stakeholders, we are proposing an updated Policy to enable
delivery of our Ahead Together strategy, outperformance
against our Outlook ambitions and the company’s ability to
attract and retain global high-calibre executives
Wendy Becker, Remuneration Committee
(1) See assumptions and basis of preparation related to 2025 guidance,
2021-26 and 2031 Outlooks on the inside back cover of the 2024
Annual Report.
When all bonus measures are combined, the final payout
against the maximum of 300% was 210% of base salary for the
CEO (of which 110% of base salary was delivered in shares
deferred for 3 years), and 198% of base salary for the CFO (of
which 99% of base salary was delivered in deferred shares), i.e.
70% and 66% of maximum respectively. Both of them over-
achieved on their personal objectives. This compares to 2023
bonuses of 288% for the CEO and 264% for the CFO, with the
2024 step back driven by vaccine challenges in the second half
of the year.
Long-term incentive (LTI) awards
Moving on to the performance of our 2022 Performance Share
Plan (PSP) LTI award. This marks the end of the first grant made
under our 2022 Policy. The Committee was pleased at the
progress being made. Overall 80.75% of the total award under
the 2022 grant vested based on performance over the three-
year period from January 2022 to December 2024.
The grant had five measures, all of which vested to some extent.
Three of the five measures were fully vested, including Total
Sales growth, Core operating profit growth and our Responsible
Business: Environment measure. The Committee was
encouraged that, for the first time in several years, following
repeated strong operational business performance, the
company’s relative TSR positioning has improved. GSK ranked
in fifth position against our current ten global pharma peers
(including GSK) for relative TSR performance, resulting in above
median positioning for GSK and an element of vesting (12% of a
possible 30%) for this component. In terms of our Pipeline
Progress measure (which currently tracks major regulatory
approvals and phase III pivotal trial starts), 18.75% of this
element vested out of a total 20%. We are hopeful that the
progress we are making to develop our portfolio, together with
the continued improvement of our longer-term outlooks, will be
increasingly reflected in GSK’s valuation. Further detail of the
performance against these measures is given on pages 161 and
162.
Before confirming the final total vesting level, the Committee
considered the overall performance measure outcomes of the
award, as well as shareholder experience. We agreed that,
given the progress made, the outcome for the three-year period
was appropriate.
Total Variable Performance Pay for 2024
Overall, 2024 resulted in total variable performance pay at 77%
of maximum opportunity for the CEO. This was considered a fair
reflection of the performance achieved. The CFO was not in
role at the time of the 2022 PSP grant and, therefore, did not
receive this award. Her performance resulted in a 66% bonus
outturn. The formulaic outturns for the CEO and CFO were
approved without the exercise of any discretion.
2025 Remuneration policy
Given that our 2022 Policy is due for renewal at our AGM in May
2025, my first action on becoming Chair of the Committee was
to lead our Policy review. This coincides with the second phase
of GSK’s transformation as a global biopharma business. The
2022 Policy has been a critical ‘carrot and stick’ tool in our
transformation journey. We continue to believe in the
fundamental principle of incentivising out-performance and
penalising under-performance to support our performance
culture and long-term strategy. This remains central to our 2025
Policy proposal. We are looking to retain the majority of its
elements.
By way of reminder, phase one of GSK’s transformation
commenced in July 2022 with the separation of our consumer
healthcare business, now called Haleon plc. GSK then changed
from a global pharma and consumer healthcare company to a
focused global biopharma business. This reset followed
shareholders’ approval of our 2022 Policy in May 2022.
That Policy sought to reinforce the establishment of a strong
performance culture, setting a foundation for consistent
execution and delivery. The business has since demonstrated
consistent operational delivery and financial dependability with
a clear and growing number of pipeline assets developed to
deliver our 2031 revenue and profit ambitions. Our 2031 Outlook1
sales ambition has been increased three times, from more than
£33 billion when issued in June 2021, to more than £38 billion in
January 2024, and again in February this year to reach more
than £40 billion by 2031. This represents an overall increase of
£7 billion (over 20%) in four years. Since 2021, GSK has secured
17 approvals from the FDA and has 19 assets in Phase III trials.
The number of key pipeline scale opportunities with potential
peak year sales2 of £2 billion+ launching between 2025 and
2031 has grown to 14. We believe that the 2022 Policy approved
by shareholders, was instrumental in driving this improvement.
GSK is a very different business to four years ago. Our global
sales have increased from approximately £25 billion in 2021 to
over £31 billion in 2024 with consistent quarter on quarter
delivery. Our operating margin has increased from 25.6%2 to
nearly 29.2% and net debt is down from £20 billion to £13
billion. Our product mix has improved with 67% derived from
Specialty Medicines and Vaccines, up from 58% in 2021. The
progressive dividend policy we set has seen the annual dividend
payout increase too. The total dividend for 2024 is 61p with an
expectation of 64p for 2025. A £2 billion share buy-back
programme was also announced in February 2025.
Before reviewing GSK’s remuneration arrangements, the
Committee reflected on GSK’s position globally today. The US is
our largest commercial market and represents more than 52%
of sales. Only 2% of our sales originate from the UK. The
balance of 46% of sales originate from the rest of the world.
The US is not only our largest market, it is also our largest
employer across the globe. We employ 12,108 people in the US
(16% of our workforce) and the balance across the rest of the
world. Our GLT is also multinational in its composition, including
American, Australian, British, Canadian and French nationals.
We are truly an international business.
Changes for the 2025 Remuneration policy
The purpose of our 2025 Policy is, therefore, to:
– incentivise the delivery of the company’s Ahead Together
strategy and stretching 2031 ambitions
– reinforce the company’s pay for performance, particularly
out-performance, philosophy
– enable the retention and attraction of talent as a global
biopharma company
– create the headroom to deliver market competitive reward
through the organisation
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(1) See assumptions and basis of preparation related to 2025 guidance,
2021-26 and 2031 Outlooks on the inside back cover of the 2024
Annual Report.
(2) Excluding COVID-19 solutions
It was with this in mind that we went on to develop our 2025
Policy proposal. We were driven by the need to be fully aligned
to support successful delivery of our strategy and to ensure that
incumbents are paid appropriately to be retained and
incentivised and that the policy has sufficient flexibility to permit
us to manage succession when required. We sought to be
evidence-based in our approach – but without being slavish to
data. We interrogated numbers but we also looked more deeply
to our talent base today and into the future. We analysed our
current competitors for talent as a global biopharma business.
This work leveraged several internal and external data points to
ensure it was comprehensive. The Committee drew on the
expertise of the Science and the Corporate Responsibility
committees for specialist input too.
The conclusions supported the importance of:
1. Size-adjusted Global Biopharma Peer Group: Evolving and
focusing on one main performance and remuneration
comparator peer group, rather than three. Since the
demerger of Haleon, an assessment of our talent flows reflect
that we are a biopharma company versus a generalist
company and this new peer group is more relevant to those
wins and losses. Within the peer group we are proposing, 11 of
the 13 companies benchmark their performance against GSK
today. Aligning our diverse comparator peer groups enables
us to ensure that pay is better aligned with the shareholder
experience and is appropriate throughout GSK’s global
leadership team, using a robust basis for benchmarking and
consistency in the assessment of our achievements. In
addition to ensuring incumbents are paid appropriately, it
also gives increased confidence that our policies will enable
succession at the appropriate time to ensure that GSK
remains able to attract and retain the best available global
talent.
The new peer group is intended to prove enduring and should
remain relevant for some time as GSK’s growth. continues.
Our methodology for setting the peer group is described on
page 149.
Size-adjusted global biopharma peer group
Amgen
Gilead
Roche Holding
AstraZeneca
Merck KGaA
Sanofi
Bayer
Moderna
Takeda
BMS
Novartis
CSL
Pfizer
2. Competitive Compensation: Having reset our peer group, we
considered the remuneration arrangements for our CEO and
CFO. Our CEO, whom we regard as a high performer, is
currently positioned below the lower quartile of the new size-
adjusted global biopharma peer group across all
compensation metrics, except base salary where she is
positioned below median. This remains true even when
excluding US companies from our new group (see page 149).
In addition, analysis reflects that GSK is facing meaningful
external pay compression, with our CEO’s pay being more
consistent with ‘number 2’ roles in our peer group, making
attracting external talent challenging. GSK has significant
internal pay compression within our peer group, with the
‘headroom gap’ (i.e. the gap from CEO to number 2 role
compensation) being over 40% less than the group average,
which brings with it retention risk (see page 150). We therefore
intend to begin the move towards the median of the new
peer group in 2025, and during the term of the 2025 Policy.
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Remuneration report continued
148
Alignment to Size-adjusted Global Biopharma Peer Group
Expanded set of CEO Benchmarks
Median TDC (£m)
GSK CEO remuneration versus new peer group (2024 data)
3. Strategic Alignment: We assessed the other aspects of our
remuneration to ensure alignment to strategy. Given the
priority now is to further demonstrate our ability to deliver the
2031 ambitions and beyond, we wish to ensure that our
remuneration approach is even more focused on incentivising
execution against pipeline delivery. We will therefore increase
the pipeline focus in our Annual bonus objectives while
retaining and refining the pipeline focus in our LTI plan.
In refreshing our approach, we have noted shareholders’
feedback regarding the importance of rigour in target setting
and assessment, as well as focusing on value creation. We
have worked closely with the Science Committee in this
regard.
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149
External compression: GSK CEO vs. #2 at pharma peers
TDC
(£m)
0
2
4
6
8
10
GSK
Internal compression: headroom between #2 pay and CEO pay
Base salary
Total direct compensation
10
10
34%
24%
0%
50%
100%
Average
of peers
GSK
10
10
57%
40%
0%
50%
100%
Average
of peers
GSK
4. Alignment to Shareholder Experience: Finally, in recognition
of the importance of further aligning shareholder and
management experiences and shareholder input, we propose
to increase the weighting of our relative TSR PSP measure
from 30% to 40%. This will be achieved by reducing the other
PSP elements equally by 2.5%. We recognise that not all
shareholders are supportive of the use of TSR measures in LTI
plans. To further align with shareholders and simplify our
arrangements our Share Ownership Requirement (SOR) will
be updated to track the PSP LTI grant multiple given to
executive directors and to require that level be maintained for
2 years after cessation of employment.
Engagement
The Chair and I met to share our initial proposals with certain of
our major shareholders before refining our thinking and holding
broader discussions in October and November 2024. This
culminated in the presentation of our proposals at our Annual
Governance Meeting in December 2024 and writing to
shareholders representing approximately 60% of our share
capital. We subsequently met again with shareholders to further
refine our proposals.
The full process we followed is set out on page 153. I would like
to thank the many shareholders who engaged with us and for
their time and the thoughtfulness in their responses. The
feedback was greatly valued and carefully considered before
the Committee decided how to proceed.
While it is never possible to reflect all feedback (as some views
were irreconcilable), we carefully considered all feedback and
made a number of changes to reflect suggestions. There was
acknowledgement of GSK as a global biopharma company, the
progress that has been made operationally and the stronger
positioning of the company, We also discussed: (1) the
appropriate level of alignment with shareholder experience, (2)
comparability with our geographically local peers, (3) our
confidence in the long-term pipeline and short-, medium- and
long-term outlooks, and (4) the importance of providing
flexibility in the potential remuneration policy application over
time.
Following these collaborative conversations and engagement,
we refined our Bonus, LTIP and SOR proposals twice – once
after initial discussions with shareholders and then after more
broader engagement.
Though there is recognition of the performance and progress
made by our highly respected CEO, the importance of aligning
our proposals to the shareholder experience meant it was
appropriate to make changes to better align to shareholder
experience with phased share implementation, stronger
shareholding requirements and greater reporting transparency.
Our revised proposals will initially result in our CEO being
remunerated between lower and median quartile of our new
size-adjusted global biopharma peer group. We will have the
flexibility to move towards median remuneration by the end of
the 2025 Policy period in line with shareholder experience.
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150
Journey towards peer group median for Total Direct
Compensation (TDC)
All our analysis has confirmed that material changes are not
currently required to the CFO’s package at this point. It also
confirmed the Committee’s starting point that the CEO’s current
package, which is currently in the lower quartile of the new size-
adjusted global biopharma peer group, is insufficient either to
reward her performance, or to provide the appropriate capacity
for succession. As a result, we will look to target median of the
proposed new peer group’s total direct compensation levels
over time, with a continued strong bias towards performance-
related pay.
This will be achieved for the CEO by:
– Annual bonus: the current 3.00 times base salary maximum
will be held. However, we will increase on-target bonus from
1.00 times to 1.50 times base salary to help reach the new
peer-group median level. The current approach of setting
targets on a challenging basis consistent with our growth
strategy will be maintained.
– LTI: the CEO’s LTI Policy award maximum multiple will be
increased from our current CEO Policy maximum of 6.00
(with current grants at 5.75 times) to a maximum of 8.00
times base salary. The Committee will then increase the
CEO’s PSP LTI grant to 7.25 for 2025.
Thereafter we will only increase the CEO’s PSP LTI award
multiple from 7.25 times salary after GSK shares are re-rated, or
if required for succession purposes.
In addition, for the CEO this increase will be aligned to a more
demanding performance scale with the percentage of base
salary payable at threshold (TSR median) maintained at
approximately the current level of 143.75% of base salary. In this
way any benefit from the increase in quantum will clearly be
linked to out-performance.
Further, the top end of the TSR scale will be linked to upper
quintile (20th percentile) performance, rather than the current
upper quartile (25th percentile). This would then be one of the
most demanding relative TSR measures in our new peer group
and will apply to the executive leadership team.
These combined changes will result in the CEO’s total ‘on target’
remuneration opportunity being £8.76 million, positioned above
the lower quartile of this peer group. Albeit, this remains closer
to the lower quartile than the median. We will have the capacity
to move from here in line with shareholder experience.
The Committee recognises that if GSK operated solely within
the UK, the 2025 Policy proposal could be viewed differently.
That said, we are of the view that these changes are essential
to move towards competitive performance-related pay
opportunity in the context of GSK’s global operations. Hence a
pure FTSE 100 peer group would not be appropriate.
Full details of the proposed 2025 Policy are set out on pages
176 to 184.
Remuneration policy implementation for 2025
During the 2025 Policy consultation process we also shared the
changes we were proposing to the way we implement our
Policy, in particular in terms of our long- and short-term
performance measures.
2025 Annual bonus and LTI performance measures
Given the strategic importance of continued delivery of our
pipeline as explained earlier, we have chosen to add a Pipeline
measure to the Annual bonus. The 2025 Annual bonus
measures for 2025 will therefore be changed as follows:
Current
New for 2025
Sales: 30%
Sales: 25%
Core Operating Profit: 30%
Core Operating Profit: 25%
RB: Inclusion: 10%
Pipeline: 20%
Strategic and operational: 30%
Strategic, operational and RB:
30%
The new short-term Pipeline measure is described in full on page
163. It rewards delivery of shorter-term, large publicly reported
R&D milestones for GSK's priority pipeline assets which together
are expected to deliver the company's 2031 Outlook. The
Science Committee supports the Committee in confirming the
appropriateness and stretch in the Pipeline measure.
Our 2025 PSP LTI measures have been updated too and will be:
Current
New for 2025
Relative TSR: 30%
Relative TSR: 40%
Sales: 20%
Sales: 17.5%
Core Operating Profit: 20%
Core Operating Profit: 17.5%
Pipeline: 20%
Pipeline: 17.5%
RB: Environment: 10%
RB: Composite Score: 7.5%
These measures seek to reinforce over-delivery of our longer-
term outlooks. The Pipeline measure has been updated and
focuses on the value and volume achievement of the overall
pipeline supporting our 2031 Outlook and beyond. This measure
will only vest, either in full or in part, if at the time of vesting the
most recently governed and published 2031 sales outlook (last
updated in February 2025) remains at least £40 billion. Our RB
measure has been simplified to be directly aligned and reward
delivery against the company’s full RB programme. You can
read in detail about our progress in year and our ambitions in
the context of our six RB focus areas set out on pages 47 to 60.
We will continue to have transparency of measures and
performance.
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151
(1) See assumptions and basis of preparation related to 2025 guidance,
2021-26 and 2031 Outlooks on the inside back cover of the 2024
Annual Report.
Path to ensuring competitive compensation
The Committee noted that the UK wider workforce annual
increase was 3.3%. It was agreed that the CFO’s performance
merited a base salary increase of 3.3%, and the CEO an
increase of 5%.
The CEO’s increase was set marginally higher than that of the
general workforce increase given her very strong performance
in 2024 and previous years, and her experience in the role,
whilst noting the benchmark data. This increase also recognises
that the CEO’s base salary was 4-5% behind our new size-
adjusted performance group median based on 12-month old
(i.e. 2024) data. It supports the long-term aim of the Committee
to position CEO TDC at the median of our new size-adjusted
global biopharma peer group over the course of the 2025
Policy. The Committee also noted the compression impact on
other colleagues of the CEO’s remuneration both internally and
against peers. The increase is insufficient to bridge the
differential on TDC but, combined with the proposed increase
in performance pay, will begin to move CEO’s TDC, towards the
median TDC of our new size-adjusted peer group.
Thank you
Once again, I would like to take this opportunity to thank
shareholders for their input and engagement during this
Remuneration Policy review, to help shape the new Policy
presented in this report. During this consultation we were
pleased to be able to engage with the majority of the
company’s shareholder register. I would like to congratulate all
our people for all they have achieved in 2024 and the delivery
of another excellent year of performance, and thank my fellow
Committee colleagues for their wise counsel and support in
developing the new Policy. Last but not least, I would also like to
thank colleagues on the Board from the Science and the
Corporate Responsibility committees for their collaboration and
support in ensuring that these changes are robust and well
validated. I welcome all shareholders’ feedback on this report
ahead of our AGM. We look forward to receiving your support
for our new Remuneration policy and Annual report on
remuneration at our Annual General Meeting on 7 May 2025.
Wendy Becker
Remuneration Committee Chair
25 February 2025
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Remuneration report continued
152
2025 Remuneration policy renewal: Key changes for GSK as a pure biopharma company
1
Refocus on meaningful
competitive peer
benchmark – aligned to
GSK purpose and talent
flows
2
Globally competitive
compensation for GSK and
performance pay potential
for CEO
3
Strategic alignment -
deeper and sharper
pipeline focus across short-
and long-term incentives
4
Alignment to shareholder
experience
GSK consultation process and impact
What we did
Engagement event
Dates
Investor participation
(approx.)
Share capital
represented (approx.)
Review and understanding of existing
policy and strategy
May - July 2024
Consultation with Board and senior
Human Resources Leaders on
employee perspectives
July - October 2024
Initial individual investor consultation
October - December 2024
25 investors
40%
2024 Annual Governance Meeting
December 2024
Invited: 60 investors and proxy
advisors
Attended: 25 investors
60%
30%
Consultation letter - seeking feedback
on proposal
December 2024
60 investors and proxy advisors
60%
Letter - explaining how feedback was
considered and incorporated
February 2025
60 investors and proxy advisors
60%
Meetings held with shareholders up to
publication of Annual Report
December 2024 - February 2025
12 investors and proxy advisors
20%
What we heard
Reinforced:
Emphasised:
Logic of global biopharma group
Better alignment with shareholder experience
Uncompetitive CEO pay
Differentiate GSK’s policy from other geographically local peers of a larger scale
Performance stretch
Request for greater transparency of Pipeline measures
Pipeline focus
Need for global compensation competitiveness, especially for succession
Impact on proposals
Peer group & salary
– Keep peer group and median aim but phase over the life of the plan
Annual bonus
– Reach market practice of 50% of bonus max for target, keeping max at market practice of 3.00 times
base salary
– Retain current Annual bonus deferral requirement, even after shareholding requirement is met, to
enhance disclosure on pipeline and strategic operational measures
LTIP
– Adjust LTIP maximum award to 8.00 times CEO base salary
– Cap the CEO’s award at 7.25 times base salary until a meaningful and sustained re-rating of GSK’s
shares or succession requires it
– Maintain Emma Walmsley’s payout at threshold at approximately the current percentage of base salary
(143.75% of base salary)
– Increase maximum vesting for TSR to be top quintile related performance
– Increase weighting of relative TSR measure from 30 to 40% of the PSP award
– Increase transparency of the pipeline measure and add a vesting underpin to demand 2031 sales
outlook at the time of vesting remains at least £40 billion1
SOR
– Increase to match executives’ PSP level. Increase post-cessation requirement to apply in full for 2 years
post-cessation
1See assumptions and basis of preparation related to 2025 guidance, 2021-26 and 2031 Outlooks on the inside back cover of the 2024 Annual Report
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2025 Remuneration policy consultation
153
Net impact
Our revised proposals will initially result in our CEO being remunerated between lower quartile and median of our new size-
adjusted global biopharma peer group. We will have the flexibility to move towards median remuneration by the end of the 2025
Policy period in line with shareholder experience.
Net impact post consultation on CEO remuneration
2025 Executive Director remuneration
Emma Walmsley
Julie Brown
Fixed remuneration
Salary
£1,430,792
£1,022,697
Pension
Aligned to wider UK workforce
Performance Pay
Annual bonus
(% of salary)
Maximum opportunity: 300%
On-target: 150%
On-target: 100%
LTI(1)
(% of salary)
Maximum: 725%
Maximum: 400%
Threshold: 145%
Threshold: 100%
Share ownership requirement
(% of salary)
725%
400%
(1) CEO LTI of 725% of base salary to be delivered via initial grant of 575% of base salary and a top-up award granted in May 2025 of 150% of base salary
(subject to shareholder approval of the Remuneration Policy at the company's 2025 AGM). The top-up award would vest in May 2028.
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154
2024 Total remuneration
Emma Walmsley, CEO
Julie Brown, CFO
l
Fixed pay – salary, benefits, pensions and other
l
Performance pay – annual bonus and vested LTIs
2024 Pay for performance
2024 Annual bonus outcome: Overall payout 70% and 66% of maximum for CEO and CFO respectively
2024 Annual bonus delivery
52%
48%
l Shares deferred for 3 years
l Cash
50%
50%
l Shares deferred for 3 years
l Cash
2022 PSP outcome: Overall vesting 80.75% of maximum
l Vested
l Lapsed
(1) Excluding COVID-19 solutions. Total sales is referred to as Group Turnover elsewhere within the report
(2) This measure ceased to operate at the end of 2024
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2024 remuneration at a glance
155
Emma Walmsley, CEO
Overall bonus
210% of salary
Julie Brown, CFO
Overall bonus
198% of salary
Fixed pay
Pay for performance
Salary
Total
remuneration
Pension
Annual Bonus
LTI awards
(2022 PSP award vesting)
Benefits
Read more on
page 157
pages 158 to 160
pages 161 and 162
below
2024 Total remuneration (audited)
The following sections from this page to page 175 provide details of each element of 2024 ‘Total remuneration’ and how the
Committee implemented the company’s shareholder-approved 2022 Remuneration policy during the year in terms of fixed and
performance pay.
2024 Total remuneration (audited)
Emma Walmsley, CEO
Julie Brown, CFO
2024
£000
2023
£000
2024
£000
2023
£000
Fixed pay
Salary(1)
1,363
1,310
990
635
Benefits
180
212
64
50
Pension
98
94
69
44
Other(2)
—
—
1,088
2,411
Total fixed pay
1,641
1,616
2,211
3,140
Pay for performance
Annual bonus(3)
2,855
3,774
1,955
1,687
Vesting of PSP LTI awards(4)
6,063
7,328
—
—
Total pay for performance
8,918
11,102
1,955
1,687
Total remuneration
10,559
12,718
4,166
4,827
(1) Salary: Julie Brown joined the company on 3 April 2023. Her 2023 base salary of £915,335 was pro-rated to reflect the time she worked as CFO Designate
until 1 May 2023 and as CFO until 31 December 2023
(2) Other: Represents the sum paid in cash to Julie Brown, the CFO, as part of her buyout arrangements in relation to leaving Burberry, as set out in full on page
149 of the 2022 Annual Report. In setting the Buyout arrangements, which are staged over a two year period, the Committee sought to ensure she was
compensated on a like-for-like basis as far as possible. In fulfilment of these arrangements, the CFO purchased 22,500 shares in June 2023
(3) Deferred Annual Bonus Plan (DABP): The mandatory DABP bonus deferrals for 2023 and 2024 are set out on page 172
(4) 2022 PSP vesting in 2025: For the CEO, the figure has been valued based on the closing price on 18 February 2025 of £14.43. The share price on 15 February
2022, the date of grant, was £15.71. Of the vested amounts for the CEO, nothing was attributable to share price appreciation over the performance period.
The Committee did not exercise any discretion in relation to the vesting of the awards or share price changes
All-employee share plans: The CEO and CFO each contribute the maximum of £250 and £125 a month into the Share Save plan and to buy shares under
the Share Reward plan respectively. Further details of these HM Revenue & Customs (HMRC) approved all-employee plans are set out on page 166
Malus and clawback: The Committee may in specific circumstances, and in line with stated principles, apply malus and clawback, as it determines
appropriate. Following due consideration by the Committee, there has been no recovery of sums paid (clawback) or reduction of outstanding awards or
vesting levels (malus) applied during 2024 in respect of either the CEO or CFO
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Annual report on remuneration
156
=
+
+
Fixed pay 2024 and 2025 (audited)
Salary
The Committee is very aware of the sensitivity amongst stakeholders to levels of pay. Before setting or reviewing salary, it considered
the average increases awarded to employees below Executive Directors and the multiplier effect of increases in base salaries on
total remuneration opportunity. The Committee considered the wider economic context, individual performance and market
positioning of the increases awarded. The table below sets out the base salaries and increases agreed for 2024 and 2025 for the
Executive Directors compared to increases for the UK workforce.
2024 and 2025
effective dates
% change
Salary
£000
2025
2024
2025
2024
2023
UK employees
1 April
3.3
4.0
Emma Walmsley
1 January
5.0
4.0
1,431
1,363
1,310
Julie Brown
1 January
3.3
4.0
1,023
990
952
The CEO’s base salary increase was set marginally higher than that of the general workforce increase given her very strong
performance in 2024 and previous years, and her experience in role. This increase also recognises that the CEO’s base salary was
4-5% behind the median of our new size-adjusted global biopharma performance group (based on previously disclosed peer
company CEO remuneration). Further, the increase supports the long-term aim of the Committee to position CEO total direct
compensation at the median of our size-adjusted global biopharma peer group over the course of the 2025 Policy.
Benefits
This table provides an analysis of total benefits (grossed up
for tax) received by the Executive Directors in 2024 and 2023.
The UK remuneration reporting regulations require the
company to add into each Executive Director’s total benefits
all items which are deemed by tax authorities to be a taxable
benefit for them. These include employee benefits as well as
business-related services provided to employees to assist or
enable them to carry out their role, which a tax authority has
deemed to be a taxable “benefit” to the individual. As these are
business expenses, the company meets the tax which arises on
them and therefore the items are shown grossed up for tax.
Benefits
£000
2024
2023
Emma Walmsley
Benefits available to employees
103
118
Business-related services
77
94
Total benefits
180
212
Julie Brown
Benefits available to employees
39
25
Business-related services
25
25
Total benefits
64
50
Pensions
From 1 January 2023, pension arrangements for Executive Directors were aligned to the wider workforce. They received GSK pension
contributions or cash supplements of 7% of base salary and matching contributions of up to 3% on the first £66,666 of salary for
2024.
The table below shows the breakdown of the pension values included in 2024 Total remuneration on page 156.
Pension remuneration values
Emma Walmsley (£000)
Julie Brown (£000)
2024
2023
2024
2023
UK defined contribution
7
6
—
—
Employer cash contributions
91
88
69
44
Pension
98
94
69
44
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157
2024 Pay for performance (audited)
Annual Bonus
l Financial Measures: 60%
l Operational: 40%
2024 Annual bonus performance
The following table shows the Annual bonuses earned compared to the bonus opportunity for 2024:
2024 Bonus opportunity
2024 Bonus earned
2024 Bonus Paid as
(£000)
Target
(% of salary)
Maximum
(% of salary)
2024 salary
£000
%
of Maximum
Bonus
% of Salary
earned
Total 2024
bonus (£000)
Cash
Shares
(DABP
Award)
Bonus
Emma Walmsley
100
300
1,363
70
210
2,855
1,362.7
1,492.1
Julie Brown
990
66
198
1,955
977.7
977.7
Details of the mandatory deferral by Executive Directors into the Deferred Annual Bonus Plan for the 2024 bonus are set out on
page 172.
2024 Financial measures outcomes
Total sales growth excluding COVID-19 solutions Core operating profit growth excluding COVID-19 solutions
Target setting
These targets were set following consideration of analyst consensus as well as internal budgets. Threshold and maximum
performance was at 1% below and 5% above target growth respectively. The total sales growth and core operating profit growth
targets and outcomes for the purposes of the Annual bonus calculation are based on CER and excluding the commercial benefit
from COVID-19 solutions.
Overview of performance against financial performance measures
– GSK delivered strong performance in 2023 with strong sales, Core operating profit and Core EPS growth driven by accelerating
momentum of the Specialty Medicines portfolio. This was higher than the guidance provided at the start of the year and
strongly supports delivery of GSK’s growth outlooks for the period 2021-26.
– Delivered full-year reported Group sales of £31.4 billion (+3% AER, +7% CER, +8% excluding COVID-19 solutions)
– Specialty Medicines growth was 16% AER, 19% CER (all excluding COVID-19 solutions). Vaccines declined 6% AER, 3% CER (all
excluding COVID-19 solutions). General Medicines grew 2% AER, 6% CER.
– Core Group Operating profit CER growth of 13% excluding COVID-19 solutions, driven by higher sales and improved gross
margin from growth in Specialty Medicines supported by a returns-focused disciplined approach to SG&A launch investment
and increased investment in R&D.
– Core EPS of 159.3p (+3% AER, +10% CER, +12% excluding COVID-19 solutions) was at the upper end of updated guidance.
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Annual report on remuneration continued
158
Total sales
growth
30%
Core
operating profit
growth
30%
Strategic and
operational
measures
30%
RB:
Inclusion
10%
Annual Bonus
+
+
+
=
2024 Strategic and operational measures outcomes
Target setting and review process
At the beginning of the year, after agreeing GSK’s three-year plan for 2024 – 2026 and following review of the company’s long term
outlooks, and the Board and Management’s priorities for the year ahead, the Committee agreed the financial bonus targets for the
CEO and CFO. The Committee agreed their key deliverables for the year ahead as their individual strategic and operational
measures for 2024.
At the end of the year, after the Board’s review of GSK’s performance for 2024, the Committee received and considered specific
performance assessment reports against the deliverables set for each Executive Director. These showed the extent of achievement
against each deliverable. As with the financial bonus measures, the Committee was satisfied with the scale of the Executive
Directors’ achievements. In completing their assessment, the Committee considered shareholder experience and acknowledged in
particular that the market’s view of the valuation of GSK is substantially lower than the company’s own view and that the Board
remains mindful of the need to deliver improving shareholder value over the short-, medium- and long-term timeframes.
Achievement during 2024
Performance assessment
Emma Walmsley
Emma led the executive team and the wider organisation to deliver continued, improved operating performance in 2024, with GSK’s
reshaped product portfolio demonstrating both strength and resilience, notably with an increased contribution from Specialty Medicines.
Pipeline development was also strong, with a record number of positive Ph III readouts in 2024, and the company now focused on
development of 14 scale growth opportunities expected to launch before 2031. This has resulted in further improvement to GSK’s outlooks.
Alongside this, there was meaningful progress in culture, talent development and exemplary leadership as a responsible business
The following table sets out her performance against the Innovation, Performance, Trust and Culture objectives
Innovation
– Delivered pipeline progression above target with 13 positive Ph III read outs
– Delivered innovation sales above plan, accounting for 37% of total sales. Material over-delivery in
Specialty and General Medicines compensated for shortfall in Vaccines
– 2031 Sales outlook increased to more than £40bn, previously >£38bn and up from original target of
>£33bn, reflecting late-stage pipeline progress as well as executional momentum
– R&D now focused on clinical development of 14 potential scale opportunities expected to launch before
2031. These include five product approvals planned in 2025, at the forefront of which are Blenrep and
depemokimab
– Completed transactions to acquire assets in Oncology and Respiratory, Immunology & Inflammation;
strengthened platform capabilities in mRNA and oligonucleotides; several new material research
alliances established
– Good progress across the R&D data/AI technology goals – target choice, patient identification,
molecule design/chemical manufacturing and controls (CMC) and clinical trial effectiveness
– AI enabled acceleration of digital submissions, reducing number of weeks for last patient visit (LPV) first
regulatory submission by over 35%
Exceeded
Performance
– Delivered the financial plan exceeding guidance set for 2024 – with sales of £31.4bn +8% excluding
COVID-19 solutions – driven by strong growth and increasing contribution from Specialty Medicines,
with double-digit growth in all therapy areas, more than offsetting impact of the US and China
environment on Vaccines
– Continued embedding of scale AI capability in global functions, manufacturing and commercial
operations with measurable impact in sales and marketing ROI cost savings, quality and forecast
accuracy
– Significant increase in deployment and upskilling of AI usage with >29K attendees at the group-wide
Data Academy
Met
Trust
– Personal leadership to deliver successful resolution of vast majority of US Zantac litigation – managed
in best interests of shareholders and without any admission of liability
– 2024 Responsible Business Performance Rating ‘on track’ for third consecutive year, demonstrating
sustained momentum in all six priority areas, alongside strong track record of performance delivery
– Ranked second in the latest global Access to Medicine Index, where we have been placed first or
second since its inception in 2008
– Progressed development of six Global Health pipeline assets to address priority World Health
Organisation (WHO) diseases
– Environmental Sustainability – 16 of the 17 GSK KPIs at or above target. Low carbon Ventolin Ph III
ongoing
– 88% of Ph III trials completing enrolment met our thresholds for participants to represent the disease
epidemiology under study – well ahead of our 50% target for 2024
Exceeded
Culture
– Annual employee survey improvement in confidence – up 3% to 83% overall
– Highly positive engagement scores of more than 80% again in internal survey
– Strong champion of leadership and learning, sponsoring a range of leadership programs for first and
second line leaders and successful delivery of our Enterprise Leadership Program with excellent
feedback and engagement
– Strong progress in executive leadership succession planning and quality
– New headquarters (HQ) move successfully completed
Exceeded
The Committee determined that the CEO clearly exceeded her individual objectives and that 78% out of the 90% maximum should be attributed
to her overall bonus
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Annual report on remuneration continued
Pay for performance (audited) continued
159
Achievement during 2024
Performance assessment
Julie Brown
Julie led the Finance Leadership Team and worked alongside the GSK Leadership Team (GLT) to deliver continued, improved operating
performance in 2024. Julie led a deep review of pipeline forecasting to support the upgrading of long-term outlooks, and a strategic
review of R&D investments to support smart resource allocation and ROI. Improved profits were delivered by securing a more competitive
P&L and increased use of SG&A analytics. Julie continues to oversee the cyber security plan for GSK, with improvements in maturity and
control effectiveness. Alongside this, she successfully led progress in culture, talent development and engagement of the Finance
organisation
Demonstrate
financial
leadership
– Deep review of pipeline forecasting to support upgrading of long-term outlooks to sales of >£40bn by
2031
– Strategic review of R&D investments to increase spend and smart resource allocation to improve ROI.
Total R&D investment of £6.4bn in 2024
– Strong focus on further improving momentum with business development, organic performance and
productivity drivers to deliver a competitive P&L
– Delivery of investor engagement programme including Investor Roadmap, 2024 Investor Update and
Meet the Management events for Oncology and Early-Stage Pipeline
– Led detailed shareholder value gap analysis informing the investor communication programme
– Guidance, reporting, financial controls and external audit delivered effectively with no issues, with a step
up in the clarity of the published quarterly reporting to the market
Exceeded
Cost discipline
and cash flow
management
– Organisational delivery of a more competitive P&L, coupled with SG&A analytics, delivering enhanced
core operating profit of £9.1bn, up 11% CER and core operating margin of 29.2% (29.0% in 2023)
– Cash generated from operations of £7.9bn
– Effective, disciplined capital deployment to support business growth and shareholder returns including
£2.3bn allocated to targeted business development
– Significant progress in tech and AI-enabled changes in Finance, including Source to Pay, financial
process improvement, cash and treasury
– Successfully led the SG&A ROI project with the purpose of driving competitive, precision analytics to
drive increased ROI whilst retaining a growth mindset
Exceeded
Demonstrate
strong
culture and
leadership
– Positive progress on engagement and culture scores in the GSK survey driven by a focus on growth,
development and continued wellbeing
– Successful implementation of succession and talent development planning including appointment of
three new Finance Leadership Team members
– Cyber Maturity Plan: All 40 projects planned for 2024 delivery completed
Met
The Committee determined that the CFO clearly met her individual objectives and that 66% out of the 90% maximum should be attributed to her
overall bonus
2024 Responsible Business (RB): inclusion aspirations1
Emma Walmsley
Julie Brown
Payout level
Enterprise targets not met
Directorate targets not met
Nil (0%)
Enterprise targets met, but not all directorate targets
Personal directorate targets met
Target (10%)
Enterprise and all directorate targets met
Maximum (20%)
Outcome achieved
Maximum payout – 20%
Maximum payout – 20%
Overview of performance against previously set leadership inclusion aspirations
We previously set aspirational targets for diversity of senior leadership to be achieved by 2025. The Committee agreed interim,
annual aspirational targets for 2024 as part of this effort, including global gender representation and US and UK race and ethnicity
representation at an enterprise level for the CEO and at a directorate level for the CFO. An internal governance team audited
performance against these aspirations for the Committee. Going forward, we expect to make changes in several areas related to
inclusion, including no longer setting leadership aspirations.
Delivery: The interim aspirations were met in 2024, and resulted in the leadership aspirational targets set for 2025 being largely met.
At the year end, the GSK Enterprise performance was 48%2 gender representation and 38.3% US ethnicity and 21.8% UK ethnicity in
our VP and above employee population.
1This measure ceased to operate at the end of 2024
2Rounded Percentile
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160
Total Sales
Growth
20%
Vesting of 2022 PSP LTI awards
Overview of PSP LTI performance
In line with the Committee’s agreed principles, actual performance against each measure is carefully reviewed and adjustments are
made, as appropriate. This ensures that the vesting outcome reflects genuine underlying business performance and has been
delivered in line with our culture and values. The Committee did not deem it necessary to exercise any discretion in relation to the
vesting of the awards or due to share price changes. Overall, 80.75% of the 2022 PSP awards vested against the targets set out
below.
2022 PSP Outcomes
Outcome and vesting level
Performance measures
and relative weighting
Performance targets
Outcome
% of
maximum
% of
award
Relative TSR
(30%)
TSR ranking within comparator
group (10 companies)
% vesting
Ranked 5th
40
12
Maximum
1st, 2nd, 3rd
100
4th
70
5th
40
Threshold(1)
Median
25
6th to 10th
0
(1) The median vesting threshold falls between two companies. The Relative TSR
comparator group is set out on page 168.
Total sales growth(2)
(20%)
Recognises the importance of the company's commercial ambitions with regard to
operating profit growth. The measure vests in accordance with the same table as
set out below for core operating profit growth, against a target of £76.47bn.
£86.15bn
100
20
Core operating profit
growth(2)
(20%)
Recognises the importance of the company's commercial ambitions with regard to
operating profit growth against a target of £22.49bn.
£24.20bn
100
20
Performance vs Target
% vesting
Maximum
105 %
100
103 %
75
100 %
50
Threshold
99 %
25
<99%
0
Pipeline progress
(20%)
Targets strengthening our pipeline through progression of high quality assets into
pivotal trials and the achievement of regulatory approvals in major markets. The
points are allocated on achievement of these two equally weighted elements of
10%.
Measure
Threshold
25%
50%
75%
Maximum
100%
Pivotal Trial starts
11
13
15
17
17 points
100
18.75
Major regulatory
approval milestones
16
18
20
22
21 points
87.5
RB: Environment
(10%)
Recognises the importance of our Responsible Business priority and ambitions of
having a Nature Net positive and Climate Net Zero impact by 2030. The measure
includes six key performance measures (3x Climate ambitions and 3x Nature
ambitions).
100% vesting Every measure must have been achieved, and at least two
of the six measures, at least one in Climate and one in
Nature, must have exceeded their targets at the end of
2024.
Met
100
10
Total vesting in respect of 2022 PSP awards
80.75
(2) excluding COVID-19 solutions
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161
Relative Total
Shareholder
Return
30%
Core
Operating
Profit Growth
20%
Pipeline
Progress
20%
RB:
Environment
10%
Total Vested LTI
+
+
+
=
+
Pipeline progress - overview of assets contributing to outcome of this measure
Assets contributing to outcome achieved
Pivotal trial starts
(17 points)
depemokimab - CRSwNP, bepirovirsen - HBV, cobolimab + dostarlimab + docetaxel NSCLC, Blenrep - 1L MM,
dostarlimab - colon, camlipixant - RCC, tebipenem pivoxil - cUTI, dostarlimab unresect HNSCC, CD226 GALAXIES
Lung-301, niraparib GBM study, Low Carbon Ventolin and Benlysta - CTD - ILD.
Regulatory approval
milestones
(21 points)
RSV OA PreF3 US, RSV OA PreF3 EU, cabotegravir HIV PrEP EU, dostarlimab (RUBY) US, dostarlimab (RUBY) EU,
momelotinib - myelofibrosis US, momelotinib - myelofibrosis EU, Shingrix - China, and dostarlimib (RUBY - all comers)
2022 PSP vesting
Granted
Vested(1)
Value of vested shares(1)
(£000)
Emma Walmsley
461,059
420,177
£6,063
(1) The number of shares which vested and the value they represented at vesting includes dividend reinvestments during the performance period. These
are based on the vesting price of £14.43 on 18 February 2025
(2) The CFO joined GSK on 3 April 2023 and therefore did not receive the 2022 PSP award.
2024 LTI grants
The 2024 DABP awards, in respect of the deferral of 2023 bonus, and the 2024 PSP awards are set out below.
2024 DABP awards
2024 PSP awards
% of total 2023
bonus deferred
Number of
shares
Face value
of award(1)
£000
Award level as %
of base salary
Face value
of award(2)(3)
£000
Number of
shares
Emma Walmsley
65
147,271
2,463
575
7,835
468,449
Julie Brown
50
56,190
940
400
3,960
236,763
(1) The face values of the DABP and PSP awards has been calculated based on a share price of £16.726, being the closing price on 7 February 2024 (the day
before the grants). DABP awards are nil-cost options for the Executive Directors. No performance conditions are attached to the DABP awards, as they
reflect the mandatory three-year deferrals in respect of the Annual Bonus for 2023
(2) PSP awards are conditional shares, based on the performance measures set out on page 149 of the 2023 Annual Report
(3) The performance period for the 2024 PSP awards is from 1 January 2024 to 31 December 2026. Awards vest at 25% of maximum for threshold performance.
Please see the 2023 Remuneration Report for details of the measures and targets for the 2024 awards
Malus and clawback policy
Our existing policy on malus and clawback is provided in the 2022 Remuneration policy report on page 147 of the 2021 Annual
Report, and amended as set out on page 163 of the 2022 Annual Report, available on gsk.com. For the purposes of the 2025
Remuneration policy, there are no changes to the malus and clawback policy (as set out on pages 178 to 179).
The Committee reviews and discloses whether it, or the Recoupment Committee, has exercised malus or clawback. Disclosure is only
made when the matter has been the subject of public reports of misconduct, where it has been fully resolved, where it is legally
permissible to disclose and where it can be made without unduly prejudicing the company and therefore shareholders. In line with
these disclosure guidelines, there were no matters to report during 2024.
For details of our existing policies on recruitment remuneration, loss of office and termination payments, please refer to the 2022
Remuneration policy report on pages 144 to 152 of the 2021 Annual Report, available on gsk.com
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Pay for performance (audited) continued
162
Core operating
profit growth
25%
Pay for performance in 2025
Target setting
Following careful review of performance towards GSK’s 2031 Outlooks at the end of 2024 and pipeline progression, the three-year
plan for 2025 – 2027 was set. The Board then agreed the guidance for the year ahead and the key priorities for the CEO and the
CFO. The Committee then considered these carefully together with current consensus expectations before setting the Executive
Directors targets for the year ahead.
Inevitably targets linked directly to our financial and strategic plan are commercially sensitive. The Committee does not therefore
consider it appropriate to disclose these targets until the end of the year. To disclose them earlier may result in competitive harm.
Details will be disclosed in the 2025 Annual Report. The targets and outcomes are calculated based on CER.
2025 Annual bonus measures
l Financial Measures: 50%
l
Operational: 50%
Total sales and
Core operating
profit growth
The company’s guidance for 2025 is explained on page 85 of the Annual Report and details of GSK’s medium- and long-range
outlooks up to 2031 are also set out on pages 85 and the ‘Guidance and outlooks, assumptions and cautionary statements’ on
inside back cover.
These targets are set following the Board’s annual planning process and consideration of analysts’ consensus to ensure that the
targets are sufficiently stretching and support the Committee’s aim to incentivise and reward over performance.
Pipeline
performance
This is a new element of the Annual Bonus for 2025. It is focused on ensuring that executives have a direct link to the delivery of
our pipeline milestones. It is designed to incentivise and reward “on-time in full” delivery of near term outcome based milestones
across our priority assets and business development objectives. It also creates alignment across the full Executive team.
Priority assets represent major launches and next wave programmes expected to deliver commercial success both in the near-
and mid-term, and beyond.
For each of the major launches and next wave assets, key inflection points which are expected in 2025 have been set as the
respective thresholds, targets and stretch deliverables, with those priorities weighted and assigned points based on their value
potential (i.e. contribution to Peak Year sales). Points will then be awarded in each case based on the milestones actually
achieved for the relevant assets. 82% of points are available for priority assets and 18% for business development.
The schedule of assets contributing to this measure for 2025, and their prioritisation were reviewed and approved by the
Science Committee before being agreed by the Committee. The 2025 assets are:
– Asthma portfolio: depemokimab & TSLP
– COPD portfolio: mepolizumab, depemokimab, TSLP & IL33
– Camlipixant
– Blenrep
– B7-H3 & B7-H4 ADCs
– Jemperli
– HIV: Cab ULA, N6LS, ‘499, ‘301
– mRNA respiratory
– Pneumococcal franchise
– MenABCWY
– Bepirovirsen
– Gepotidacin
– Tebipenem
The milestones achieved during the year (including business development) will be disclosed by therapeutic area:
– Respiratory, Immunology and Inflammation
– Oncology
– HIV
– Infectious Diseases
in the 2025 Annual Report together with the resulting bonus multiplier and the total points achieved (including for business
development). The progress achieved will be reviewed by the Science Committee before the Committee agrees the
remuneration outcomes.
Strategic,
Operational and
Responsible
Business
The CEO and CFO’s key deliverables are agreed in principle by the Board before being set by the Committee in January each
year. They focus on supporting delivery of our guidance for the year, and towards the ultimate delivery of our medium and
longer term strategic outlooks to 2031 and beyond.
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163
Total sales
growth
25%
Pipeline
performance
20%
Strategic,
Operational and RB
30%
Annual bonus
award
+
+
=
+
Core
operating
profit growth
17.5%
2025 Performance Share Plan measures
l Financial Measures: 35%
l
Operational: 25%
l
Shareholder alignment: 40%
Total sales and
Core operating
profit growth
These targets are set following the Board’s annual planning process and consideration of analysts’ consensus to ensure that the targets
are sufficiently stretching and support the Committee’s aim to incentivise and reward over performance
Details of GSK’s medium- and long-range outlooks up to 2031 are set out on pages 85 and the ‘Guidance and outlooks, assumptions and
cautionary statements’ on inside back cover.
Performance vs Target
Proportion vesting
Below threshold
<99% of Target
Nil
Threshold
99% of Target
20%: CEO | 25%: CFO
Target
100% of Target
50%
103% of Target
75%
Maximum
105% of Target
100%
Pipeline
Sustainability
The Annual Bonus Pipeline Performance Measure focuses on OTIF delivery of near-term milestones for priority assets which are expected
to contribute to the 2031 Sales outlook
The PSP measure focuses on GSK’s replenishment of the pipeline and longer term pipeline performance. For inclusion, a Programme must
be either a New Moleculer Entity (NME), or a new indication which adds £0.5 billion to Peak Year Sales. Programmes approved and
launched during the three-year window will contribute to the total number of assets and to the sales contribution. It is based on a matrixed
assessment of:
– Pipeline sales contribution to GSK’s long range forecast (LRF) outlook. The target and vesting will each be based on 10 year net risk
adjusted sales forecast i.e. the 2025 -2027 target based on the 2034 LRF and vesting based on the 2037 LRF and
– the Number of Programmes in Phase 2 and 3 and Registration and Approval
This element of the PSP will only vest, either in full or in part, if at the time of vesting the most recently governed and published 2031 Sales
outlook remains at least £40 billion(1). At the end of the period a list of the Programmes added or removed during the period will be
disclosed. However, the pipeline sales contributions in the 2034 and 2037 LRFs and the assessment matrix will not be disclosed, as they are
commercially sensitive. For the achievement of Threshold performance for both the Pipeline Sales contribution and the number of
Programmes, the vesting proportions shall be 20% for the CEO, and 25% for the CFO
(1)See assumptions and basis of preparation related to 2025 guidance, 2021-26 and 2031 Outlooks on the inside back cover of the 2024 Annual
Report
RB: Composite
scorecard
The Composite scorecard focuses on all the Responsible Business metrics within the Responsible Business Performance Rating. The rating
is reported on in detail in each year’s Annual Report with the scorecard providing a balanced assessment of performance against all our
Responsible Business priorities. Further details on the Rating and performance in 2024 are given on page 47
Performance will be calculated by aggregating the annual performance across all the individual annual metrics within the rating for the 3
years of the PSP performance period
Performance
Vesting Schedule
70% or more of all metrics are on track
100%
60% of all metrics are on track
75%
50% of all metrics are on track
50%
Less than 50% of all metrics are on track, but progress is being
made because at least 50% are either on track, or on track with
work to do (the ‘threshold’ vesting level)
20%: CEO
25%: CFO
Less than 50% of all metrics are either on track or on track with
work to do, the rest (i.e. more than 50%) are off track
Nil
Relative TSR
Performance against our new size-adjusted global biopharma peer group of 13 companies (set out on page 168) will be assessed using a
percentile vesting approach. This compares GSK’s actual TSR performance with that of our peers, rather than our previous approach
which was to rank where GSK was placed within our previous global pharma peer group
Threshold remains at median performance. Maximum performance has been stretched to require upper quintile performance for 100%
vesting. Vesting levels between median and upper quintile are determined on the basis of a straight line interpolation
TSR Performance
Vesting Schedule
Above upper quintile
100%
Upper quintile
100%
Between median and upper quintile
Straight-line interpolation
Median (threshold vesting)
20%: CEO
25%: CFO
Below median of peer group
Nil
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164
Total sales
growth
17.5%
Pipeline
Sustainability
17.5%
RB:
Composite
scorecard
7.5%
Relative TSR
40%
Performance
Share Plan
award
+
+
+
=
+
2025 Performance pay
2025 Annual Bonus
% of salary
Target
Maximum(1)
Emma Walmsley
150
300
Julie Brown
100
(1) 50% of the equivalent of the first 200% of base salary earned is deferred, and any portion in excess of 200% is deferred in full.
2025 LTI Awards
The table below provides details of:
– the mandatory deferral of the 2024 Annual Bonus earned into the DABP and the associated awards granted. The shares
awarded have no performance conditions, but must be held for three years, regardless of continued employment; and
– 2025 awards granted under the PSP
2025 DABP awards
2025 PSP awards
2024 bonus deferred into
shares (% of salary)
Number of
shares
Face value of
award (£000)
% base salary1
Number of shares
Face value of award
(£000)
Emma Walmsley
110
103,980
1,492
575
573,313
8,227
Julie Brown
99
68,129
978
400
285,072
4,091
1 Subject to shareholder approval of the 2025 Remuneration policy at the company’s AGM in May 2025, it is intended that the CEO’s PSP grant for 2025 be
increased to 7.25 times base salary with an additional PSP grant of 1.5 times base salary.
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165
Directors’ pay in a wider setting
Internal context
Workforce fairness
In setting executive pay it is important that the Committee does so with a good understanding of the Group’s wider workforce
approach to pay, with an emphasis on fairness and equal opportunities. To that end, the Committee Chair on an annual basis,
meets with senior Human Resources Leaders from across the company to understand their perspectives on pay and GSK’s
remuneration arrangements for the wider workforce globally. This year was the sixth such annual meeting held and my first since
becoming Chair of the Committee.
Comparison of remuneration for employees and Executive Directors during 2024
Element
Wider workforce and Executive Director pay
Salary
The market competitiveness of base salaries across the company is assessed at a local market level. The
competitiveness of roles is kept under regular review
Increases may also be made to reflect a change in scope of an individual’s role, responsibilities or experience
For our Executive Directors following a performance review, increases in base salaries are considered in line with
market practice, the average increase for the wider employee population and other comparator tools
In agreeing increases for Executive Directors, the Committee is mindful of the multiplier effect on the individual’s total
remuneration
Benefits and
pensions
The company seeks to provide an appropriate benefits and pensions package that is aligned to competitive
market practices in those countries in which the company operates and where our employees and Executive
Directors are based
Annual
Bonus
With the exception of our sales force, who participate in separate arrangements, our wider workforce participates in
a plan based on performance against four business and financial measures. These are structured to reflect the
priorities of each specific business area
This plan is designed to reward our employees’ collective contribution to business achievement
Separate mechanisms are in place to recognise outstanding individual performance and to address under-
performance
Our Executive Directors participate in the plan as follows. Any bonus up to 200% of salary is paid 50% in cash and
50% in shares deferred for three years. Bonus earned in excess of this (up to a maximum of 300% of salary) would
be delivered fully in shares deferred for three years. Clawback and/or malus provisions apply
LTI plans
Senior Vice President (SVP) and Vice President (VP) employees participate in the same Performance Share Plan as
our Executive Directors. Clawback and/or malus provisions apply
Our SVP and VP employees, together with directors and managers below the GLT, receive annual Share Value Plan
awards of restricted shares
Share
ownership
All UK-based employees can participate in HMRC approved Share Save and Share Reward employee share plans
Dilution limits
All awards are made under plans which incorporate dilution limits consistent with the guidelines published by the Investment
Association. This limit is 10% in any rolling ten-year period for discretionary and all-employee plans. Estimated dilution from existing
awards made over the last ten years up to 31 December 2024 is 0.82%.
All-employee share plans
The Executive Directors may participate in HMRC approved all-employee share plans, namely the company’s Share Save and
Share Reward plans, along with the wider UK workforce. Participants of the Share Save plan may save up to £250 a month for three
years and from which they have the option to buy GSK shares at a discount of up to 20% to the share price at the start of the
savings contract. Participants of the Share Reward plan contribute up to £125 a month to purchase GSK shares which the company
then matches on a one-for-one basis.
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166
CEO and wider employee pay ratio
Financial year
Lower quartile
P25
Median
P50
Upper quartile
P75
2024
168:1
123:1
78:1
2023
207:1
152:1
94:1
2022
144:1
106:1
67:1
2021
154:1
108:1
67:1
2020
130:1
96:1
62:1
2019
160:1
119:1
73:1
GSK continues to use the Option A methodology because it is the most robust and statistically accurate way to calculate the
three ratios from the options available under the Remuneration regulations. The pay ratio is lower than in 2023. This is influenced by
the delivery of a slightly lower bonus for all, which impacts variable pay outcomes more significantly for our CEO who has a larger
proportion of her pay based on performance than individuals at P25, P50 and P75. The CEO’s LTI vest was also lower than in 2023
with nothing attributable to share price appreciation over the performance period. The 2022 award was granted at £15.71 and
vested at £14.43.
The pay ratios above are calculated using actual earnings for the CEO and UK employees. The CEO’s total single figure
remuneration of £10.559 million for 2024 and £12.718 million for 2023 are detailed on page 156.
Total remuneration for all UK full-time equivalent employees on 31 December 2024 has been calculated in line with the single figure
methodology. This reflects their actual earnings received in 2024 (which excludes business expenses), which were used to produce
the percentile calculation under Option A of the Remuneration regulations. Business expenses have been excluded as they are
reimbursed to employees and are not sufficiently substantial in value to significantly impact the ratios.
The table below shows the salary, total pay and benefits for each of the percentiles.
P25 (£)
P50 (£)
P75 (£)
Salary
Total pay and
benefits
Salary
Total pay and
benefits
Salary
Total pay and
benefits
2024
41,845
62,876
57,635
85,924
82,629
136,010
2023
39,903
61,490
55,057
83,783
78,496
135,819
2022
37,776
58,883
52,107
79,428
74,905
126,594
2021
37,251
53,151
51,492
76,234
72,997
122,852
2020
36,924
54,133
50,000
73,340
70,203
113,830
2019
34,510
50,467
47,029
68,200
66,561
110,638
The Committee believes that the median pay ratio is consistent with the company’s pay, reward and progression policies.
The base salaries of all employees, including the Executive Directors, are set with reference to a range of factors including
market practice, experience and performance in role.
Relative importance of spend on pay
The table shows total employee pay and dividends paid to shareholders.
Change
%
2024
£m
2023
£m
Total employee pay
3.4
8,759
8,473
Dividends paid in the year
8.8
2,444
2,247
The figures in this table, reflecting payments made during each year and the impact of movements in exchange rates, are as set out
on pages 223 and 229. However, cash dividends declared in respect of 2024 were £2,489 million (2023: £2,355 million) an increase
of 5.7%. Please see Note 16 to the financial statements for further details.
Total employee pay is based on 69,305 employees, the average number of people employed during 2024 (2023: 70,244). See Note
9 to the financial statements for further details.
The last share repurchase made by the company was in 2014. On 5 February 2025, GSK announced its intention to implement a £2
billion share buyback programme to be completed over an 18-month period. The programme commenced on 24 February 2025
with an initial tranche of up to £0.7 billion.
Provision 40 of the FRC Code
The company’s 2022 Remuneration policy was approved on 4 May 2022 at GSK’s Annual General Meeting (and amended at the
2023 Annual General Meeting) and has operated as intended in terms of company performance and quantum since its approval.
Details of how the 2022 Policy reflects Provision 40 of the FRC Code are set out on page 159 of the 2023 Annual Report.
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Annual report on remuneration continued
Directors’ pay in a wider setting continued
167
External context
2024 target CEO total remuneration positioning
When reviewing the CEO’s remuneration, the Committee’s
primary comparator group is the European cross-industry
comparator group. It also references pay for the Global
pharmaceutical comparator group.
Remuneration includes salary and the expected value of incentives based on
the Committee’s agreed benchmarking methodology
Historic CEO remuneration
Emma Walmsley
£000
2024
2023
2022
2021
2020
2019
2018
2017
Total
remuneration
10,559 12,718 8,449 8,203 7,031 8,084 5,887 4,883
% of maximum
Annual Bonus
award
70%
96% 83% 93% 49% 79%
93%
77%
Vesting of LTI
awards
81%
69% 52% 58% 67% 67%
59%
69%
Sir Andrew Witty
£000
2017
2016
2015
Total remuneration
715 6,830 6,661
% of maximum
Annual Bonus award
0%
97% 100%
Vesting of LTI awards
0%
33%
38%
(1) Emma Walmsley’s total remuneration for 2017 includes her pay for the
period 1 January to 31 March 2017, before she became CEO
(2) Sir Andrew Witty received a pro-rata payment for 2017 in lieu of a
variable bonus opportunity, in accordance with the 2014 Remuneration
policy
(3) PSP and DABP awards for Sir Andrew Witty granted in 2015 did not vest
until April 2018, in accordance with the terms of the Recoupment Policy
Comparator groups
For 2024, the European cross-industry comparator group was
the Committee's primary comparator group for the CEO and
CFO. The Global pharmaceutical comparator group was the
secondary group for the CEO, and was also used to measure
relative TSR performance. Details of the new Size-adjusted
Global Biopharma peer group to apply from 2025 onwards are
also set out below:
2024: European cross-industry comparator group
Roche Holding AG
Novartis
LVMH
Anheuser-Busch InBev
Unilever
SAP
L’Oreal
Novo Nordisk A/S
Airbus
Linde
Sanofi
AstraZeneca
Diageo
Siemens
Christian Dior
Inditex
BAT
Volkswagen
Deutsche Telekom
Kering
Heineken
BASF
Vinci
Adidas
Bayer
Safran
Reckitt Benckiser
2024: Global pharmaceutical comparator group
France
Sanofi
Switzerland
Novartis
Roche Holdings
UK
AstraZeneca
US
AbbVie(1)
Amgen(1)
Bristol-Myers Squibb
Eli Lilly
Johnson & Johnson
Merck & Co
Pfizer
(1) AbbVie and Amgen were included for remuneration benchmarking, but
were not included in the relative TSR performance comparator group
2025: Size-adjusted Global Biopharma peer group
Amgen
AstraZeneca
Bayer
Bristol-Myers Squibb
CSL
Gilead
Merck KGaA
Moderna
Novartis
Pfizer
Roche Holding
Sanofi
Takeda
TSR Performance graph
The following graph sets out the performance of the company
relative to the FTSE 100 Index and to the size-adjusted global
biopharma peer group comparator group for the ten-year
period to 31 December 2024. These indices were selected for
comparison purposes as they reflect both the primary index of
which GSK is a constituent and the industry in which GSK
operates.
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Annual report on remuneration continued
Directors’ pay in a wider setting continued
168
Remuneration governance
Committee role and membership
These details are available on page 122 and are incorporated
by reference into this Report. The Chair, CEO, Chief People
Officer, Head of Reward, Group Financial Controller and the
Company Secretary assisted the Committee during the year.
Adviser to the Committee
Willis Towers Watson plc
(WTW)
FIT Remuneration
Consultants (FIT)
Independent
adviser
Both advisors are members of the Remuneration
Consultants Group and operate under its code of
conduct for executive remuneration consulting in the
UK which can be accessed at:
www.remunerationconsultantsgroup.com
Advice provided The Committee noted that neither WTW nor FIT
engagement partners or teams that provide
remuneration advice to the Committee have
connections with the company or its Directors that
may impair their independence
Appointed
Appointed as the
Committee’s principal
remuneration advisor in
December 2022
Appointed in October
2024 to provide specific
advice on the 2025
Remuneration Policy
development process
Fees
(charged on a
time and
materials basis)
2024: £162,220
(2023: £67,419)
2024: £21,243
Conflicts of
interest
WTW provides market
data and other HR
consulting services to the
company.
The Committee regularly
reviews the arrangements
for potential conflicts and
where appropriate
ensures safeguards are in
place
The Remuneration
Committee Chair
declared a prior business
relationship with FIT from
other companies where
she has worked with the
consultant in her
capacity as a
Remuneration
Committee Chair and/or
member. Appropriate
safeguards are in place
to ensure independence
Statement of consideration of shareholder views
The Committee engages in regular dialogue with shareholders
and holds meetings with GSK’s largest investors to discuss and
take feedback on its Remuneration policy practices and
governance matters.
Details of the additional engagement undertaken in 2024 in
support of the Remuneration policy review are given on pages
150 and 153.
The principal proxy advisory firms are also consulted regularly.
They were also invited to our Annual Governance Meeting and
are sent engagement letters from the Committee and company
Chairs.
AGM voting
Details of voting levels in respect of Remuneration
arrangements are set out below.
Total votes
cast (billion)
Total votes
for (%)
Total votes
against (%)
Votes
withheld
(million)
2024 AGM
Remuneration Report
2.8
92.7
7.3
38.7
2023 AGM
Remuneration Report
2.8
88.8
11.2
70.1
Amendments to 2022
Remuneration Policy
2.9
99.0
1.0
10.7
2022 AGM
Remuneration Report
3.6
91.1
8.9
12.3
Remuneration Policy
3.6
61.8
38.2
13.3
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Annual report on remuneration continued
169
Committee focus during 2024
Items discussed
Remuneration policy
– Reviewed the current remuneration arrangements and developed and proposed 2025 Remuneration
policy in consultation with the other Non-Executive Directors and employee insights
– Consultation with shareholders and consideration of feedback
Fixed Pay
– Considered Executive Director and GLT performance, benchmarking competitiveness against GSK
comparator groups
– Reviewed GLT and Company Secretary salary recommendations for 2024
– Executive Director salary review recommendations for 2025
– Reviewed company Chair’s fees for 2024 and 2025
Pay for Performance
Annual Bonus
– Executive Director and GLT 2023 bonus recommendations and set 2024 Executive Directors’ bonus
objectives
LTI plans
– Considered the LTI performance outcomes and award vesting for the CEO, Executive Directors, GLT
and below
– Confirmed LTI grants for Executive Directors, GLT and below
Governance and other
areas of focus
– Remuneration considerations and Committee programme for 2024 and 2025
– Committee evaluation and Annual Review of its Terms of Reference
– Approved 2023 Remuneration report
– Confirmed 2024 Group Budget for remuneration purposes
– Considered AGM and Remuneration report feedback, the external remuneration environment and
performance target disclosure for incentive plans
– Agreed Committee's key messages for Annual Governance Meeting
– Committee Chair consulted with employee representatives on wider workforce pay practices and pay
generally
Payments (audited):
to past Directors
Iain Mackay stepped down from the Board in May 2023 and left the company on 31 December 2023:
– The vesting of Mr Mackay’s LTI awards, in accordance with the Recoupment policy, resulted in 232,302 shares
vesting (including dividends) in respect of his 2021 PSP award in January 2025. Based on the closing share price
on 21 January 2025 of £13.585 per share, the value of his vested shares was £3,155,823
– In accordance with the Remuneration policy, 141,577 shares vested (including dividends) in respect of the 2022
PSP award. Based on the closing share price on 18 February 2025 of £14.43 per share, the value of his vested
shares was £2,042,956
– These awards remain subject to the following holding periods. The 2021 PSP award holding period expires in
February 2026, and the 2022 PSP award holding period expires in February 2027
– In line with his service contract, Mr Mackay received gross benefits of £160,761
for loss of office
No loss of office payments were made during 2024
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Annual report on remuneration continued
Remuneration governance continued
170
Non-Executive Directors’ fees
The company aims to provide the Chair and other Non-Executive Directors with fees that are competitive with those paid by other
companies of equivalent size and complexity, subject to the limits contained in its Articles of Association.
2024 and 2025 Non-Executive Directors’ fees
The Non-Executive Directors’ fees that applied during 2024, and will apply for 2025, are set out in the table below together with the
fees for 2025:
Per annum
2025
2024
Chair fee
£800,000
£764,400
Standard NED annual fee
£122,258
£118,352
Supplemental fees
Chair of the Audit & Risk Committee
£80,000
£80,000
Senior Independent Director
£50,000
£50,000
Scientific & Medical Experts
£30,000
£30,000
Chairs of the Remuneration, Corporate Responsibility and Science committees and, when appointed,
Workforce Engagement Director
£40,000
£40,000
Science Committee members undertaking significant additional responsibilities on behalf of GSK
Up to £200,000
Up to £200,000
Annual Fee Review
Following the annual review by the Committee at the end of 2024, it was determined that the Chair’s fee should be increased to
£800,000, an increase of 4.7%, marginally above the increase for the wider workforce of 3.3%. This increase reflects the additional
contribution made by the Chair and was supported by external benchmarking. The Chair and CEO reviewed the Non-Executive
Directors’ standard fee at the end of 2024, and agreed that it should be increased by 3.3%, in line with the wider workforce,
increasing it to £122,258.
2024 Total Non-Executive Director fees (audited)
The audited table below sets out the value of fees and benefits received by the Non-Executive Directors. Fees paid in a currency
other than Sterling are converted using an average exchange rate that is reviewed from time to time. The average exchange rates
were updated in 2024. In 2024, fees were converted to US Dollars using an exchange rate of $1.242. Benefits comprise the grossed
up cash value of travel and subsistence costs incurred in the normal course of business, in relation to attendance at Board and
Committee meetings and in fulfilling their role.
Non-Executive Directors’
emoluments (000) (audited)
2024
2023
Fixed fees
Fixed fees
Benefits
Total pay
Cash
Shares/ADS
Benefits
Total pay
Sir Jonathan Symonds
£764
£17
£781
£551
£184
£30
£765
Elizabeth Anderson
$147
$59
$206
$100
$33
$30
$163
Charles Bancroft
$308
$25
$333
—
$295
$28
$323
Dr Hal Barron
$396
$66
$462
$344
$33
$78
$455
Dr Anne Beal
$197
$58
$255
$156
$33
$34
$223
Wendy Becker
£145
£12
£157
£21
£7
£4
£32
Dr Hal Dietz
$234
$41
$275
$191
$33
$40
$264
Dr Jesse Goodman
$185
$43
$228
$144
$33
$44
$221
Dr Jeannie Lee
$152
$14
$166
$—
$—
$—
$—
Dr Vishal Sikka
$147
$25
$172
—
$134
$13
$147
Retired Directors
Urs Rohner
£57
£17
£74
£133
£28
£40
£201
Non-Executive Director section of 2022 Remuneration policy
At the 2023 AGM, shareholders approved an administrative amendment to the Non-Executive Director section of the Remuneration
policy to allow the notional shares or ADS previously allocated under the Non-Executive Director plan to be delivered to the Chair
and Non-Executive Directors at such time as the Committee and Board considered appropriate after any applicable tax
withholding. The Chair and Mr Rohner's notional shares were released to them after the AGM in 2023. It is expected that the other
Non-Executive Directors holdings will be released to them before the company's AGM in May 2025.
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Annual report on remuneration continued
171
Directors’ interests in shares (audited)
Executive Directors’ interests in shares
The interests of the Executive Directors of the company in office during 2024 and their persons closely associated (PCA) are
shown in the table below:
As at 31 December 2024
Unvested share plan interests
Total directors’ interests(1)
Beneficial interests
Not subject to performance
Subject to
performance
20 February
2025
31 December 2024
Shares(2)
Shares(3)
Options(4,6)
Shares(5)
Emma Walmsley
2,391,096
2,011,795
925,267
719,827
366,701
1,533,961
Julie Brown
169,340
100,532
42,655
—
57,877
523,727
None of the Directors hold vested but unexercised options.
(1) Total directors’ interests includes beneficial interests and unvested share plan interests not subject to performance. For Emma Walmsley, the balance as at
20 February 2025 includes shares awarded in 2022, under the PSP and the DABP which vested in February 2025, less those sold to satisfy tax liabilities on
the vested amounts where relevant. Executive Directors’ shareholdings against their SOR are outlined below
(2) Beneficial interests includes shares held by the Executive Directors and their PCAs. For Emma Walmsley and Julie Brown, this includes 2,751 shares and 276
shares respectively purchased through the Share Reward plan
(3) Unvested shares not subject to performance represent PSP shares which have vested but are subject to an additional two-year holding period
(4) Unvested options not subject to performance represent bonus deferrals under the DABP which are awarded as nil-cost options (as described in note 6
below). This figure excludes 790 options and 828 options held by Emma Walmsley and Julie Brown respectively under the Share Save plan
(5) Unvested shares subject to performance represent unvested PSP awards
(6) DABP: The table below shows bonus deferrals and subsequent reinvestment of dividends under the DABP. The amounts represent the gross share balances
prior to the sale of any shares to satisfy tax liabilities on vesting
DABP (Bonus deferrals)
20 February 2025
31 December 2024
1 January 2024
Emma Walmsley
393,053
366,701
258,843
Julie Brown
126,649
57,877
—
The following table sets out details of nil-cost options exercised during 2024 by Executive Directors:
Date of grant
Number of shares
under option
Date of
exercise
Grant price
Market price
at exercise
Gain on exercise
(000)
Emma Walmsley
10.02.2021
52,435
12.02.24
£0.00
£16.52
£866
The nil-cost options awarded in 2021 under the DABP represent the bonus deferred by the Executive Director and recorded as
remuneration (under Annual Bonus) in the 2020 Total remuneration table. The number of shares under option includes the initial
award together with reinvested dividends accrued to the date of exercise.
Executive Directors’ Share ownership requirements (SOR) (audited)
To align the interests of Executive Directors with those of shareholders, they are required to build and maintain significant holdings
of shares in GSK over time. Executive Directors are required to continue to satisfy this SOR by holding 100% of their
SOR for the first 12 months after leaving GSK and not less than 50% of their SOR for months 13-24 thereafter. Shares subject to
performance conditions are excluded from the SOR calculation until the end of the performance period. These vested shares are
then included to the extent that the performance conditions are met. The value of the holdings has been calculated on a post-tax
basis. Iain Mackay exceeded his SOR at the date of his retirement from the Board and continues to maintain his SOR.
Value of holdings as % of salary
SOR
% of salary
20 February
2025
31 December
2024
Emma Walmsley
6.5
17.25
16.01
Julie Brown
3.0
1.48
1.08
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Annual report on remuneration continued
172
Non-Executive Directors’ interests in shares
The interests of the Non-Executive Directors in office during 2024 and their persons closely associated (PCA) are shown in the table
below:
Prior NED share allocation plan
Total directors’ interests as at(2)
Number of shares/ADS
NED SOR
20 February
2025(1)
20 February
2025
31 December
2024 or date of
retirement
Beneficial
interests at
31 December
2024 or date of
retirement(4)
Dividends
reinvested
after
year end
31 December
2024
Elected &
allocated
during
the year(5)
1 January 2024
Shares
Sir Jonathan Symonds
Met
81,757
81,757
81,757
—
—
—
—
Wendy Becker
In progress
2,367
2,367
2,367
—
—
—
—
ADS
Elizabeth Anderson
In progress
2,180
2,159
2,159
—
—
—
—
Charles Bancroft
Met
32,164
31,270
14,757
754
16,513
709
15,804
Dr Hal Barron
Met
640,414(3)
661,080
661,080
—
—
—
—
Dr Anne Beal
In progress
3,899
3,795
1,914
85
1,881
80
1,800
Dr Hal Dietz
In progress
3,673
3,579
1,914
76
1,665
71
1,593
Dr Jesse Goodman
Met
15,714
15,094
1,914
602
13,180
566
12,614
Dr Jeannie Lee
In progress
796
790
790
—
—
—
—
Vishal Sikka
Met
8,337
8,257
8,257
—
—
—
—
Retired Directors
Urs Rohner(6)
—
—
17,769
17,769
—
—
—
—
(1) NED Share Ownership Requirements: Since July 2022, the company has operated a minimum Non-Executive Director share ownership requirement (NED
SOR) of at least one times the standard NED annual fee (or the Chair’s fee) to be maintained until after retirement. from the Board. The Chair and Non-
Executive Directors have transitioned from the previous NED share allocation plan (NED Plan) to purchasing shares and ADSs in the market from their net
fees. The company provides an arrangement so that they can use their net fees to purchase GSK shares or ADSs in the market.
(2) Total directors’ interests include beneficial interests and any notional shares/ADS received as all or part of their fees under the previously operated NED
Plan. Dividends received on notional shares/ADS under the prior NED Plan during the year and in January 2025 were converted into notional shares/ADS as
at 9 February 2025.
(3) The Total interests for Dr Barron have reduced since 31 December 2024 following the vesting of DABP awards granted to him in his former executive
capacity as CSO. The DABP vest relates to the deferral of shares from the 2022 annual bonus. On vesting, shares are sold to meet an executive's tax
liabilities. Details of his transition from CSO to a Non-Executive Director are given on page 135 of the 2022 Annual Report
(4) Beneficial interests includes shares/ADS held by the Non-Executive Directors and their PCAs
(5) Notional shares/ADS allocated during the year under the NED plan relates to dividends reinvested during the year
(6) Urs Rohner retired from the Board on 8 May 2024
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Annual report on remuneration continued
Directors interests in shares (audited) continued
173
Percentage change in remuneration of Directors
2024 percentage change
2023 percentage change
2022 percentage change
2021 percentage change
2020 percentage change
Salary/
fees
%
Benefits
%
Bonus
%
Salary/
fees
%
Benefits
%
Bonus
%
Salary/
fees
%
Benefits
%
Bonus
%
Salary/
fees
%
Benefits
%
Bonus
%
Salary/
fees
%
Benefits
%
Bonus
%
UK employees(1)
4.0
(0.2)
(16.0)
7.1
0.92
34.8
3.0
2.3 44.81
2.0
0.0
4.85
2.5
—
11.0
Executive Directors(2,3)
Emma Walmsley
4.0
(15.1) (24.4)
4.0
61.8
20.1
3.0
(2.2) 38.2
2.0
(5.0) 94.6
8.0
(26.6)
(33.4)
Julie Brown(4)
55.9
28.0
15.9
—
—
—
—
—
—
—
—
—
—
—
—
Non-Executive Directors(2,3)
Jonathan Symonds
3.9
(43.3)
—
5.0
200.0
—
0.0
233.3
—
0.0
50.0
—
201.7
0.0
—
Elizabeth Anderson
10.5
96.7
—
209.3
—
—
—
—
—
—
—
—
—
—
—
Charles Bancroft
4.4
(10.7)
—
2.8
180.0
—
36.7
100.0
—
156.1
—
—
—
—
—
Dr Hal Barron(5)
5.0
(15.4)
—
127.1
609.1
—
—
—
—
—
—
—
—
—
—
Dr Anne Beal
4.2
70.6
—
2.7
126.7
—
121.7
—
—
—
—
—
—
—
—
Wendy Becker
417.9
200.0
—
—
—
—
—
—
—
—
—
—
—
—
—
Dr Hal Dietz
4.5
2.5
—
(3.4) 1900.0
—
—
—
—
—
—
—
—
—
—
Dr Jesse Goodman
4.5
(2.3)
—
(27.2)
41.9
—
11.0
34.8
—
(5.6)
0.0
—
(12.5) (65.2)
—
Dr Jeannie Lee
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Dr Vishal Sikka
9.7
92.3
—
131.0
—
—
—
—
—
—
—
—
—
—
—
Retired Non-Executive Directors
Urs Rohner
(64.6)
(57.5)
—
12.6
73.9
—
5.9
109.1
—
(5.6)
175.0
—
16.3
(69.2)
—
(1) This table is provided in accordance with Schedule 8 of The Companies (Directors’ Remuneration Policy and Directors’ Remuneration Report) Regulations
2020. The UK employee population was considered to be the most relevant comparison as it most closely reflects the economic environment encountered
by the Executive Directors
(2) Percentage changes have been calculated based on the 2024 Total remuneration table on page 156 for Executive Directors and the 2024 Total fees table
on page 172 for Non-Executive Directors
(3) Further information on Executive Directors’ salary and benefits can be found on page 157
(4) Julie Brown joined the company on 3 April 2023. Her 2023 base salary of £915,335 was prorated to reflect the time she worked as CFO Designate until 1
May 2023 and as CFO until 31 December 2023
(5) Dr Hal Barron transitioned to a Non-Executive Director role on 1 August 2022
Directors and Senior Management
Further information is provided on compensation and interests of Directors and Senior Management as a group (the group).
For this purpose, the group is defined as the Executive and Non-Executive Directors, other members of the GLT and the Company
Secretary. For the financial year 2024, the following table sets out aggregate remuneration for the group for the periods during
which they served in that capacity.
Remuneration for 2024
£
Total compensation paid
31,954,832
Aggregate increase in accrued pension benefits (net of inflation)
12,530
Aggregate payments to defined contribution schemes
1,366,412
During 2024, members of the group were awarded shares and ADS under the company’s various LTI plans, as set out in the table
below. To align the interests of Senior Management with those of shareholders, Executive Directors and GLT members are required
to build and maintain significant holdings of shares in GSK over time. GLT members are required to hold shares to an equivalent
multiple of two times their base salary, and must continue to satisfy these share ownership requirements for a minimum of 12 months
after leaving GSK.
Awards
Dividend reinvestment awards
Awarded during 2024
Shares
ADS
Shares
ADS
Performance Share Plan
2,106,865
57,636
269,308
6,409
Deferred Investment Awards(1,2)
—
—
7,490
169
Share Value Plan(2)
10,050
—
—
—
(1) Notional shares and ADS
(2) Executive Directors are not eligible to receive Deferred Investment Awards or participate in the Share Value Plan
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Annual report on remuneration continued
174
At 20 February 2025, the group and their PCAs had the following interests in shares and ADS of the company. Interests awarded
under the various LTI plans are described in Note 45 to the financial statements, ‘Employee share schemes’ on pages 284 to 285.
Interests at 20 February 2025
Shares
ADS
Owned
4,351,616
700,013
Unexercised options
4,810
—
Deferred Annual Bonus Plan
1,414,721
42,027
Performance Share Plan
8,095,450
302,840
Deferred Investment Awards(1,2)
76,815
2,439
Share Value Plan(2)
20,100
—
(1) Notional shares
(2) Executive Directors are not eligible to receive Deferred Investment Awards or participate in the Share Value Plan
Executive Directors’ external appointments
The company recognises that Executive Directors may be invited to become non-executive directors of other companies. Such
appointments can broaden their knowledge and experience to the benefit of the company. Executive Directors are entitled to retain
any fees received from such appointments. Emma Walmsley is an independent non-executive director of Microsoft Corporation.
Julie Brown is an independent non-executive Director of Diageo plc.
Service contracts and letters of appointment
The table below sets out the dates of the Executive Directors’ service contracts, which are available at the company’s registered
office and on gsk.com.
Date of contract
Effective date
Expiry date
Emma Walmsley
29.03.17
01.04.17
30.06.34
Julie Brown
25.09.22
01.05.23
n/a
Non-Executive Directors have letters of appointment, which are also available to view at the company’s registered office. Each Non-
Executive Director is expected to serve on the Board until the end of the AGM following the third anniversary of their appointment,
provided that they are elected and subsequently re-elected annually. Subject to mutual agreement, they may serve a further one or
two, three year terms, depending on the needs of the Board.
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Directors and Senior Management continued
175
2025 Remuneration policy
Remuneration policy renewal
Our current Remuneration policy (policy) was approved by our
shareholders at our Annual General Meeting on 4 May 2022
when it received a 61.76% vote in favour. Shareholders are
being asked to approve a new policy at our Annual General
Meeting on 7 May 2025 which is intended to apply for the next
three years.
During 2024, the Committee considered the policy to define the
biopharma business’ new approach to remuneration. The
decision-making engagement process that the Committee
followed for its determination, review and implementation of the
proposed new policy are set out on pages 147 to 154.
The Committee’s review of the policy sought to:
– incentivise the delivery of the company’s Ahead Together
strategy and stretching 2031 ambitions
– reinforce the company’s pay for performance, particularly in
over delivery
– enable retention and attraction of talent as a global
biopharma company and
– create headroom to deliver market competitive reward
throughout the organisation
In addition, changes to the policy have been made to ensure its
implementation will support the delivery of our business strategy
whilst delivering a clear, understandable and appropriately
globally competitive package to attract, retain and motivate
executive talent.
The Committee developed the new policy for Executive and
Non-Executive Directors in the context of its oversight of wider
workforce pay, not directly with employees. It sought employee
insights from the Chief People Officer and senior Human
Resources Leaders. It consulted with our largest shareholders in
respect of the proposed changes and took shareholders’
feedback into account when finalising the new policy.
The full policy that shareholders are asked to approve is set out
below on this page to page 184.
Subject to shareholder approval on 7 May 2025 at GSK's
Annual General Meeting, the Remuneration policy for each
remuneration element will be as outlined in the table below.
Future policy table
Salary
To provide a core reward for the role. Set at a level appropriate to secure and retain high calibre
individuals needed to deliver the Group’s strategic priorities.
No change
Operation
Individual’s role, experience, performance and independently
sourced data for relevant comparator groups considered when
determining salary levels.
Salary increases typically take effect in the first quarter of each
year.
Salaries are normally paid in the currency of the Executive
Director’s home country.
Opportunity
There is no formal maximum limit and, ordinarily, salary
increases will be broadly in line with the average increases for
the wider GSK workforce.
However, increases may be higher to reflect a change in the
scope of the individual’s role, responsibilities or experience.
Salary adjustments may also reflect wider market conditions in
the geography in which the individual operates and
outperformance.
Details of current salary levels are set out in the Annual report
on remuneration.
Performance measures
The overall performance of the individual is a key consideration
when determining salary increases.
Benefits
Levels are set to recruit and retain high calibre individuals to execute the business strategy
No change
Operation
Executive Directors are eligible to receive benefits in line with
the policy for other employees which may vary by location.
These include, but are not limited to, car allowances,
healthcare, life assurance/death in service (where not provided
as part of the individual’s pension arrangements), personal
financial advice and contractual post-retirement benefits. In
line with the policy for other employees, Executive Directors may
be eligible to receive overseas relocation allowances and
international transfer-related benefits when required. Executive
Directors in the UK are also eligible to participate in all-
employee share schemes (e.g. Share Save and Share Reward
Plan), under which they are subject to the same terms as all
other employees.
To recognise the high business travel requirements of the role,
Executive Directors are also entitled to car travel and
exceptionally may be accompanied by their spouse/partner on
business trips. Other benefits include expenses incurred in the
ordinary course of business, which are deemed to be taxable
benefits on the individual.
Where an Executive Director is based outside the UK, but is
required to travel to the UK to fulfil the responsibilities of their
role and to attend Board Meetings, they may be subject to tax
on their business travel expenses to and from the UK and on the
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176
provision of any accommodation in the UK. Although in reality it
represents a business expense, the tax treatment requires that
their travel and accommodation expenses are then included as
benefits. Because of the business context, the tax liabilities will
be covered by the company on a grossed-up basis.
Benefit provision is tailored to reflect market practice in the
geography in which the Executive Director is based and
different policies may apply if current or future Executive
Directors are based in a different country.
Opportunity
There is no formal maximum limit as benefits costs can
fluctuate depending on changes in provider cost and individual
circumstances.
Details of current benefits and costs are set out in the Annual
report on remuneration.
Performance measure
None
Pension
Pension arrangements provide a competitive level of retirement income.
No change
Operation
Pension arrangements are structured in accordance with the
plans operated in the country in which the individual is likely to
retire.
Where the Executive Director chooses not to become a member
of the pension plan the approach differs depending on the
country in which the individual is located.
Where an individual is a member of a GSK legacy defined
benefit plan, a defined contribution plan or an alternative
pension plan arrangement and is subsequently appointed to
the Board, he or she may remain a member of that plan.
Opportunity
UK:
From the date of appointment, all new UK Executive Directors
receive:
– 7% of base salary contribution to defined contribution plan
and a further 3% in matched contributions subject to any
relevant cap and in line with implementation principles for
other members of the plan; and
– 7% of base salary as a cash payment in lieu of pension
contribution for the portion above the relevant cap;
or
– 7% of base salary as a cash payment in lieu of pension
contribution.
US:
– From the date of appointment, all new US Executive Directors
will participate in the GSK 401(k) plan(1) and the Executive
Supplemental Savings Plan (ESSP)(1) with core contributions of
7% of base salary and bonus(2) and matched contributions of
4% of base salary and bonus(2).
– If the Executive Director chooses not to make a contribution
to the 401(k) and/or ESSP, there is no cash payment in lieu of
pension contribution. GSK will continue to provide the
relevant core contributions.
Global:
– Eligible for appropriate equivalent arrangement not in excess
of the US/UK arrangements.
Performance measures
None.
(1) In the event of any change to the plans operated in the US, a similar
treatment would be provided under any successor arrangements
introduced within the market
(2) Less bonus deferred under the DABP
Annual bonus
To incentivise and recognise execution of the business strategy on an annual basis. Rewards the
achievement of stretching annual financial, pipeline, strategic, operational and trust measures.
Change
Operation
Financial, operational and business targets are set at the start
of the year by the Committee and bonus levels are determined
by the Committee based on performance against those targets.
Strategic, operational and Responsible Business measures are
set at the start of the year by the Committee and performance
against those measures is assessed by the Committee and,
where appropriate, with the Corporate Responsibility
Committee.
Executive Directors are required to defer part of any bonus
earned into shares, or ADS as appropriate, for three years. 50%
of the equivalent of the first 200% of salary is deferred, and any
portion in excess of 200% is deferred in full. Deferred bonus
shares are eligible for dividend equivalents up to the date of
vesting.
The Committee may adjust the formulaic vesting outcome
(either up or down) to ensure that the overall outcome reflects
underlying business performance over the vesting period.
Clawback and/or malus provisions apply as described on
pages 178 to 179.
Opportunity
The maximum bonus opportunity for Executive Directors is
300% of salary. Below 99% of target performance, the bonus
payout on the financial measures will be nil. For target
performance, the bonus payout will be 150% of salary for the
CEO and 100% of salary for the CFO.
Performance measures
Based on a combination of financial, operational and business
targets with at least 50% of the bonus assessed against the
financial measures. The weighting between different measures
will be determined each year according to business priorities.
Further details, including the measures to be used in the
financial year, are provided in the Annual report on
remuneration.
Selection of annual bonus measures
The annual bonus is designed to drive the achievement of GSK’s
annual financial, strategic and operational measures. The
annual bonus opportunity is based on a formal review of
performance against the prevailing targets
The annual bonus financial targets are set by reference to
internal budget and external consensus targets.
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Performance
Share Plan (PSP)
To incentivise and recognise delivery of the longer term business priorities, financial growth and
increases in shareholder value compared to other global biopharma companies. In addition, to
provide alignment with shareholder interests, a retention element, to encourage long-term
shareholding and discourage excessive risk taking.
Change
Operation
Conditional awards are made annually with vesting dependent
on the achievement of performance conditions over three years
and are subject to an additional two-year holding period. PSP
targets are set by reference to internal budget and external
consensus targets.
Awards are eligible for dividend equivalents up to the date of
vesting and release.
The Committee may adjust the formulaic vesting outcome
(either up or down) to ensure that the overall outcome reflects
underlying business performance over the vesting period.
Clawback and/or malus provisions apply as described on
pages 178 to 179.
Opportunity
The normal maximum award limits that may be granted under
the PSP to an individual in any one year are set out in the table
below:
% of salary
CEO
800
CFO
400
Other Executive Director
500
Performance measures
Based on a combination of financial, share price related and
strategic and Responsible Business performance conditions
which are aligned to the company’s strategic plan. For all
measures, 25% of awards will vest at threshold performance,
except for the CEO where awards will vest at 20% for threshold
performance. Further details, including the performance targets
attached to the PSP in respect of each year, and the weightings
of the targets for the 2025 PSP awards are provided in the
Annual report on remuneration.
Selection of long-term incentive measures
The Committee selects performance measures which focus
Executive Directors’ long-term remuneration on the delivery of
GSK’s key strategic priorities over the longer term and which
align to shareholder experience. In addition to setting robust
targets, the Committee has implemented a number of
safeguards to ensure the targets are met in a sustainable way
and performance reflects genuine achievement against targets
and therefore represents the delivery of value for shareholders.
For each performance measure, the impact of any acquisition
or divestment may be quantified and adjusted for after the
event.
Any major adjustment in the calculation of performance
measures will be disclosed to shareholders on vesting.
The Audit & Risk Committee chair and other members, who are
also members of the Committee, provide input on the Audit &
Risk Committee’s review of the Group’s performance and
oversight of any risk factors relevant to remuneration decisions.
Details of the rationale behind the performance measures
selected and how they are calculated are set out in the Annual
report on remuneration.
Share Ownership Requirements
Change
To align the interests of Executive Directors with those of
shareholders, they are required to build and maintain significant
holdings of shares in GSK over time.
As a minimum, Executive Directors are required to maintain
100% of their share ownership requirements for two years after
retirement from the company.
Executive Directors’ Share Ownership Requirements have been
reset to match their current annual PSP award level.
Clawback and malus
No change
The various incentive plans include broad discretion when
assessing the outturn to consider wider factors and reduce
levels accordingly.
In the event of a ‘triggering event’ (i.e. significant misconduct by
way of violation of regulation, law, a significant GSK policy, such
as the Code of Conduct, or a material misstatement or
restatement of results, or serious reputational damage), the
company will have the ability to claw back up to three years’
annual and deferred bonuses as well as vested and unvested
LTIs.
GSK may specify additional ‘triggering events’ and/or different
clawback periods where required to do so by regulatory
requirements, including the rules of any government or
regulatory authority or relevant securities exchange.
In addition, in respect of PSP awards made from 2020, if a
participant is subject to an investigation, then the vesting of
their awards may be delayed until the outcome of that
investigation.
A separate Recoupment Committee has been established to
investigate relevant ‘triggering events’. The Recoupment
Committee exercises this authority for the wider employee base.
It comprises of senior executives with relevant oversight and
appropriate experience, including the Senior Vice President,
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178
Chief Compliance Officer, and the Senior Vice President and
Group General Counsel, Legal and Compliance.
In respect of each financial year, the Committee will disclose
whether it (or the Recoupment Committee) has exercised
clawback or malus. Disclosure will be made as required by law,
regulation or the rules of any relevant securities exchange, and
otherwise only when the matter has been subject to public
reports of misconduct, where it has been fully resolved, where it
is legally permissible to disclose and where it can be made
without unduly prejudicing the company and therefore
shareholders.
Additionally, where there has been continuity of responsibility
between initiation of an adverse event and its emergence as a
problem, the adverse event should be taken into account in
assessing annual bonus awards and LTI vesting levels in the
year the problem is identified and for future periods. The
Committee (or Recoupment Committee) may make
appropriate adjustments to individual annual bonuses as well
as grant and vesting levels of LTI awards to reflect this.
Approach to recruitment remuneration
No change
The Committee determines the remuneration package of new
Executive Directors on a case-by-case basis depending on
the role, the market from which they will operate and their
experience. Total remuneration levels will be set by reference to
a relevant pay comparator group and, where appropriate, will
allow for future development in the role.
It is expected that new Executive Directors will participate in
short and long-term incentive plans on the same basis as
existing directors. However, in exceptional circumstances, the
Committee reserves the flexibility to set the incentive limit for a
new Executive Director at up to an additional 50% of the
existing limits.
The Committee retains this flexibility in recognition of the high
levels of variable pay in GSK’s global pharmaceutical
competitors. However, the Committee will only use this flexibility
when it is considered to be in the best interests of the company
and its investors.
Pension arrangements for any external recruit as an Executive
Director will be as set out in the Remuneration policy table on
page 177.
Other benefits will be provided in line with the policy for existing
Executive Directors.
Where required and deemed appropriate by the Committee,
the costs of financial planning, legal and tax advice may be
reimbursed.
Where required to meet business needs, relocation support will
be provided in line with company policy.
For any internal appointments, entitlements under existing
remuneration elements will continue, including pension
entitlements and any outstanding awards. However, where not
already the case, internal appointments will be required to
move to Executive Director contractual terms, including
termination provisions.
The Committee is mindful of the sensitivity relating to
recruitment packages and, in particular, the ‘buying out’ of
rights relating to previous employment. It will therefore seek to
minimise such arrangements. However, in certain
circumstances, to enable the recruitment of exceptional talent,
the Committee may determine that such arrangements are in
the best interests of the company and its shareholders. Such
arrangements will, where possible, be on a like-for-like basis
with the forfeited remuneration terms. Arrangements will
therefore vary depending on the plans and arrangements put in
place by the previous employer and may be in the form of cash
or shares and may or may not be subject to performance
conditions. Explanations will be provided where payments are
made as compensation for previous remuneration forfeited.
The remuneration arrangements for any newly appointed
Executive Director will be disclosed as soon as practicable after
the appointment.
Loss of office payment policy
No change
The company does not have a policy of fixed term contracts.
Generally, contracts for new appointments will expire in line with
the applicable policy on retirement age, which since 2009 has
been 65.
Contracts for existing Executive Directors will expire as
applicable on the dates shown on page 175.
Notice period on termination by the employing company or the
Executive Director is 12 calendar months. Where required and
deemed appropriate by the Committee when recruiting
externally, an initial notice period of 2 years may be applied,
reducing to 12 calendar months over one year.
The ability to impose a 12-month non-compete period (and a
non-solicitation restriction) on an Executive Director is
considered important by the company to have the ability to
protect the Group’s intellectual property and staff. In light of
this, the Committee believes that it would not be appropriate to
provide for mitigation in the contracts.
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179
Termination of employment
In the event that an Executive Director’s employment with the company terminates, the following policies and payments will apply.
Element of Remuneration
Loss of office payment policy
Termination payment
Termination by notice: 12 months’ annual salary payable on termination by the company (pro-rated where part
of the notice period is worked). No termination payment is made in respect of any part of a notice period that
extends beyond the contract expiry date.
A bonus element is not normally included in the termination payment. However, the terms of the contracts seek
to balance commercial imperatives and best practice.
Redundancy: As above, for termination by notice. In the UK, only statutory redundancy pay will apply. In the US,
the general severance policy does not apply.
Retirement, death and ill-health, injury or disability: No termination payment.
LTI awards
PSP awards are governed by the plan rules as approved by shareholders. The following provisions will normally
apply:
Termination by notice: Unvested awards will lapse.
Redundancy, retirement, death, ill-health, injury, disability or any other reason: Generally, awards will continue to
vest over the original timescales subject to performance and normally pro-rated for time.
In the event of a change of control, PSP awards will vest, taking into account performance to date and normally
taking into account the proportion of the performance period that has elapsed. Alternatively, the awards may be
exchanged for new awards.
Annual bonus
Termination by notice by individual: If an individual serves notice and the termination date falls before 31
December, the bonus is forfeited.
Termination by notice by the company, redundancy, retirement, death, ill-health, injury or disability: If the
termination date falls during the financial year, eligible for pro-rated on-target bonus (if employed on 31
December, bonus payable based on actual results).
Mandatorily deferred bonus
under the DABP
DABP deferred bonus awards in respect of mandatorily deferred bonus amounts are governed by the plan rules
as approved by shareholders. The following provisions will normally apply:
Termination for gross misconduct: Generally, unvested awards will lapse
Any other reason: Generally, awards will vest in full on the original vesting date.
In the event of a change of control, awards will vest or may be exchanged for new awards.
Pensions
Pension scheme contributions by the individual and the company, and any pension scheme benefit accruals,
generally cease at the termination date in accordance with pension scheme rules. Access to pension scheme
benefits is governed by the pension scheme rules and country legislation.
Benefits
Generally, benefits will continue to apply until the termination date. The Committee may make payments in
connection with an existing legal obligation or in respect of any claim related to the cessation of employment.
This may include fees for outplacement assistance, legal and/or professional advice.
Termination by notice by the company and retirement (US executives): In line with the policy applicable to US
senior executives, they may become eligible, at a future date, to receive continuing medical and dental
insurance after termination/retirement.
Termination by mutual agreement
In certain circumstances, it can be in the best interests of the company for the Board to manage proactively succession planning
and the development of the senior talent pipeline. In such circumstances, the Board may therefore agree that an Executive’s
departure will be by mutual agreement. For this to apply, the Committee will need to be satisfied that the Executive has
demonstrated performance in line with expectations and where required they should have contributed to an orderly succession. In
the case of an Executive Director, they would then be treated as a ‘good leaver’ for the purposes of GSK’s long-term incentive plans.
If the termination date falls during the financial year, they would be eligible for a pro-rated on-target bonus and if they are
employed on 31 December, the bonus payable would be based on actual results.
The Committee does not anticipate the exercise of discretion provided by the PSP and DABP plan rules in respect of termination
payments in a manner which would benefit an Executive Director. However, there may be unforeseen circumstances where this is in
the best interests of the company and its shareholders. Where it is necessary to exercise discretion, explanations will be provided.
Where an Executive Director leaves the company, the Committee will carry out an assessment of the individual’s performance and
conduct over the time in role. If it is determined that the individual’s performance or conduct was contrary to the legitimate
expectations of the company, the Committee reserves the right to apply appropriate mechanisms such as clawback or reduction or
lapsing of outstanding incentive awards (malus), to ensure that any termination payments are in the best interests of the company
and its shareholders (see pages 178 to 179).
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Differences between Remuneration policy for Executive Directors and other employees
When setting remuneration for the Executive Directors, the
Committee considers the company’s strategic priorities,
prevailing market conditions for global talent, the competitive
environment (through comparison with the remuneration of
executives at companies of similar size, complexity and
international reach) and the positioning and relativities of pay
and employment conditions across the broader GSK workforce.
In particular, the Committee considers the range of base salary
rises for the workforces of those parts of GSK where the
Executive Directors are employed. This is considered to be the
most relevant comparison as these populations reflect most
closely the economic environments encountered by the
individuals.
The same principles apply to the Remuneration policy for
Executive Directors and other employees although the
remuneration offered to Executive Directors under this policy
has a stronger emphasis on performance-related pay than that
offered to other employees of the Group.
– Salary and benefits (including pension) are tailored to the
local market.
– The annual bonus plan applies to the wider employee
population and is based on business performance.
– A combination of performance-related and restricted share
plans apply to the wider employee population.
– All-employee share plans are available to employees in the
UK, including the HM Revenue & Customs approved UK
Share Save and Share Reward Plans.
While employees are not directly consulted in respect of the
Remuneration policy, Wendy Becker, the Committee Chair,
meets with the Chief People Officer and senior HR
representatives from across the business to review employee
feedback. Board members engage with employees around
during Board meetings where they are encouraged to share
their views on the company, management and remuneration.
In the wider organisation, we have aligned our performance
and reward systems with our strategic priorities and a culture
anchored in purpose and performance. Our performance
system evaluates employees on both ‘what’ they need to do
and ‘how’ they do it. Also, for our most senior people we
disincentivise unethical working practices using a clawback
mechanism that allows us to recover performance-related pay.
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2025 Non-Executive Director remuneration policy
No change
Element
Purpose and link to strategy
Operation
Chair's fees
To provide an inclusive flat rate
fee that is competitive with
those paid by other companies
of equivalent size and
complexity subject to the limits
contained in GSK’s Articles of
Association.
There is no formal maximum. However, fees are reviewed annually and set by reference to a
review of the Chair’s performance and independently sourced market data.
The Committee is responsible for evaluating and making recommendations to the Board
on the fees payable to the Chair. The Chair does not participate in discussions in respect of their
fees.
Basic fees
As above
There is no formal maximum. As with the Chair, fees are reviewed annually and set by reference
to independently sourced data.
The Chair and CEO are responsible for evaluating and making recommendations to the Board
on the fees payable to the company’s Non-Executive Directors.
Fee payment
Alignment with shareholders
Fees are paid in cash. Non-Executive Directors (including the Chair) are required to build an
ownership requirement to hold shares or ADS with an aggregate value at or above one times
their standard annual fee until their retirement from the Board.
Supplemental
fees
To compensate Non-Executive
Directors (other than the Chair)
for taking on additional Board
responsibilities
Additional fees for the Senior Independent Director, Committee Chairs, Science & Medical
Experts and the Workforce Engagement Director role as applicable.
The company has the authority to pay an additional fee, up to the equivalent of the Committee
Chair supplement to a Non-Executive Director, should the company require significant additional
time commitment in exceptional or unforeseen circumstances.
The company has the authority to pay an additional fee of up to £200,000 to Non-Executive
Directors (excluding the Chair) who are members of the Science Committee for undertaking
additional responsibilities on behalf of GSK and to support R&D.
Benefits
To facilitate execution of
responsibilities and duties
required by the role.
Travel and subsistence costs for Non-Executive Directors are incurred in the normal course of
business in relation to meetings on Board and Committee matters and other GSK-hosted events.
For overseas- based Non-Executive Directors, this includes travel to meetings in the UK.
In the event it is necessary for business purposes, whilst not normal practice, Non-Executive
Directors may be accompanied by their spouse or partner to these meetings or events.
The costs associated with the above are all met by the company and, in some instances, they are
deemed to be taxable and therefore treated as benefits for the Non-Executive Director.
Approach to recruitment fees
No change
The following policy and principles apply to the roles of Chair
and Non-Executive Director. It seeks to ensure alignment with
shareholders through the requirement to invest in company
shares and ADS.
Chair
Fees will be set at a level that is competitive with those paid by
other companies of equivalent size and complexity.
Non-Executive Directors
Fee levels for new Non-Executive Directors will be set on the
same basis as for existing Non-Executive Directors of the
company, subject to local laws and regulations.
In the event of a Non-Executive Director with a different role
and responsibilities being appointed, fee levels will be
benchmarked and set by reference to comparable roles in
companies of equivalent size and complexity.
Loss of office
No change
The Chair and other Non-Executive Directors are not entitled to receive any payments in respect of fees for loss of office when they
retire or step down from the Board.
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Scenarios for future total remuneration
The charts opposite provide illustrations of the future total
remuneration for each of the Executive Directors in respect of
the remuneration opportunity to be granted to each of them in
2025 under the proposed 2025 Remuneration policy. A range of
potential outcomes is provided for each Executive Director and
the underlying assumptions are set out below.
All scenarios use:
– 2025 base salary and pension contributions
– 2024 benefits figures
– The amounts shown under value of 2025 PSP award multiples
are based upon the relevant multiples for 2025.
Fixed:
– Includes base salary, pension and benefits. Excludes Pay for
performance, ie. no Annual bonus would be paid and PSP
awards would not vest.
Expected:
– Includes Fixed pay.
– For the Annual bonus, it is assumed that target performance
is achieved.
– For PSP awards, amounts reflect 50% vesting levels.
Maximum:
– It is assumed that the Annual bonus would be payable at the
maximum level (i.e. 300% of salary) and that the awards
under the PSP would vest in full.
Maximum with 50% share price increase:
– All elements are the same as Maximum but assuming a 50%
increase in share price.
Emma Walmsley
Julie Brown
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Operation and scope of Remuneration policy
The Remuneration policy (Policy) is set out on pages 176 to 184
of the 2024 Annual Report and it is intended that the Policy for
GSK’s Executive and Non-Executive Directors will operate for a
period of three years from the date of approval at the
company’s Annual General Meeting on 7 May 2025.
The Committee wrote the Policy principally in relation to the
remuneration arrangements for the Executive Directors, whilst
taking into account the possible recruitment of a replacement
or an additional Executive Director during the operation of the
Policy. The Committee intends the Policy to operate for the
period set out above in its entirety. However, it may after due
consideration seek to change the Policy during this period, but
only if it believes it is appropriate to do so for the long-term
success of the company, after consultation with shareholders
and having sought shareholder approval at a general meeting.
The Committee reserves the right to make any remuneration
payments and/or payments for loss of office (including
exercising any discretions available to it in connection with such
payments) notwithstanding that they are not in line with the
Policy where the terms of the payment were agreed:
(i) before the AGM on 7 May 2014 (the date the company’s
first shareholder-approved Directors’ remuneration policy
came into effect);
(ii) before the Policy came into effect, provided that the terms
of the payment were consistent with the shareholder-
approved Remuneration policy in force at the time they
were agreed; or
(iii) at a time when the relevant individual was not a Director of
the company and, in the opinion of the Committee, the
payment was not in consideration for the individual
becoming a Director of the company. For these purposes
‘payments’ includes the Committee satisfying awards of
variable remuneration and, in relation to an award over
shares or ADS, the terms of the payment are ‘agreed’ at the
time the award is granted.
Performance Share Plan (PSP) awards are subject to the terms
of the PSP plan rules under which the award has been granted.
The Committee may adjust or amend awards only in
accordance with the provisions of the plan rules. This includes
making adjustments to reflect one-off corporate events, such as
a change in the company’s capital structure.
The Committee may also make minor amendments to the
Policy (for regulatory, exchange control, tax or administrative
purposes or to take account of a change in legislation) without
obtaining shareholder approval for such amendments.
Statement of consideration of shareholder views
The Committee engages in regular dialogue with shareholders
and holds annual meetings with GSK’s largest investors to
discuss and take feedback on its Remuneration policy practices
and governance matters.
Basis of preparation
The Annual report on remuneration has been prepared in
accordance with the Companies Act 2006 and The Large and
Medium-sized Companies and Groups (Accounts and Reports)
(Amendment) Regulations 2013 (the Regulations). In
accordance with the Regulations, the following parts of the
Annual report on remuneration are subject to audit: total
remuneration figures for Executive Directors including further
details for each element of remuneration (salary, benefits,
pension, annual bonus and long-term incentive awards);
Non-Executive Directors’ fees and emoluments received in the
year; Directors’ interests in shares, including interests in GSK
share plans; payments to past Directors; payments for loss of
office; and share ownership requirements and holdings, for
which the opinion thereon is expressed on page 200. The
remaining sections of the Annual report on remuneration are
not subject to audit nor are the pages referred to from within
the audited sections.
The Annual report on remuneration has been approved by the
Board of Directors and signed on its behalf by:
Wendy Becker
Remuneration Committee Chair
25 February 2025
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
2025 Remuneration policy report continued
184
Directors' powers
GSK Directors’ powers are determined by UK legislation and our
Articles of Association, which contain rules about their
appointment and replacement. They provide that Directors
may be appointed by an ordinary resolution of the members or
by a resolution of the Board. If appointed by the Board, the
Director must retire at the next Annual General Meeting to be
elected by shareholders.
Our Articles also provide that all Directors are required to seek
re-election annually at our Annual General Meeting in
accordance with the FRC Code.
A Director will then cease to be a Director if he or she:
– becomes bankrupt
– ceases to be a Director by virtue of the Companies Act or the
Articles
– suffers mental or physical ill health and the Board resolves
that he or she shall cease to be a Director
– has missed Directors’ meetings for a continuous period of six
months without permission and the Board resolves that he or
she shall cease to be a Director
– is otherwise prohibited from being a Director by law
– resigns, or offers to resign and the Board accepts that offer
– is required to resign by the Board
Directors’ conflicts of interest
All Directors have a duty under the Companies Act 2006 to
avoid a situation in which they have, or could have, a direct or
indirect conflict of interest or possible conflict with the
company. Our Articles provide a general power for the Board to
authorise such conflicts.
The Board reviews any new potential or actual conflict, which is
recorded by the Company Secretary. Directors are not counted
in the quorum for the authorisation of their own actual or
potential conflicts. The Nominations & Corporate Governance
Committee reviews the Register of Potential Conflicts on an
annual basis which the Board subsequently approves.
On a continuing basis, the Directors are responsible for
informing the Company Secretary of any such new actual or
potential conflicts that may arise or if there are any changes in
circumstances that may affect an authorisation previously
given. Even when provided with authorisation, a Director is not
absolved from his or her statutory duty to promote the success
of the company. If an actual conflict arises post-authorisation,
the Board may choose to exclude the Director from receipt of
the relevant information and participation in the debate, or
suspend the Director from the Board, or, as a last resort, require
the Director to resign.
The Nominations & Corporate Governance Committee
reviewed the Register of Potential Conflict authorisations (the
Register of Potential Conflicts) in January 2024. The Committee
reported to the Board that the conflicts had been appropriately
authorised and that the process for authorisation continued to
operate effectively. The Committee then recommended the
approval of the Register of Potential Conflicts to the Board
which it subsequently approved. Except as described in Note 40
to the financial statements, ‘Related party transactions’, during
or at the end of the financial year no Director or Person Closely
Associated had any material interest in any contract of
significance with a Group company.
Our Articles prohibit a Director from voting on any resolution
concerning his or her appointment or the terms or termination
of his or her appointment.
Independent advice
The company has an agreed procedure for Directors to take
independent legal and/or financial advice at the company’s
expense where they deem it necessary.
Indemnification of Directors
Qualifying third party indemnity provisions (as defined in the
Companies Act 2006) are in force for the benefit of Directors
and former Directors who held office during 2024 and up to the
approval and signature of the Annual Report.
Change of control and essential contracts
We do not have contracts or other arrangements which
individually are fundamental to the ability of the business to
operate effectively. Neither is the company party to any
material agreements that would take effect, be altered, or
terminate upon a change of control following a takeover bid.
We do not have agreements with any Director that would
provide compensation for loss of office or employment resulting
from a takeover, except that provisions of the company’s share
plans may cause options and awards granted under such plans
to vest on a takeover.
Details of the termination provisions in the Executive Directors’
service contracts are given in the full version of the company’s
2022 Remuneration policy which is available on gsk.com in the
Investors section.
Content of the Directors’ report
For the purposes of the UK Companies Act 2006, the Directors’
report of GSK plc for the year ended 31 December 2024
comprises:
Directors’ report
Section
Pages
Corporate governance report
113 to 186
Employee engagement
125
Directors’ statements of responsibilities
188 and 189
Investor information
287 to 338
The Strategic report sets out those matters required to be
disclosed in the Directors’ report which are considered to be of
strategic importance:
Strategic report
Section
Pages
Risk management objectives and policies
62 to 81 and
307 to 318
Likely future developments of the company
1 to 111
Research and development activities
13 to 31
Business relationships
47 to 60
Diversity
54 and 55
Provision of information to and consultations with
employees
54, 55 and
58 to 60
Carbon emissions
51 to 53
Section 172 statement
128 to 132
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Directors’ report
185
The following information is also incorporated into the Directors’
report:
Location in Annual Report
Interest capitalised
Financial statements,
Notes 17 and 20
Particulars of important post-balance
sheet events of the company or its
subsidiaries
Financial statements,
Note 48
Publication of unaudited financial
information
Group financial review
Details of any long-term incentive
schemes
Remuneration report
Waiver of emoluments by a Director
Not applicable
Waiver of future emoluments by a Director
Non pre-emptive issues of equity for cash
Non pre-emptive issues of equity for cash
by any unlisted major subsidiary
undertaking
Parent company participation in a placing
by a listed subsidiary
Provision of services by a controlling
shareholder
Shareholder waiver of dividends
Financial statements,
Notes 16 and 45
Shareholder waiver of future dividends
Financial statements,
Notes 16 and 45
Agreements with controlling shareholders
Not applicable
The Directors’ report
– has been drawn up and presented in accordance with and in
reliance upon English company law and the liabilities of the
Directors in connection with that Report shall be subject to
the limitations and restrictions provided by such law.
– was approved by the Board of Directors on 25 February 2025
and signed on its behalf by:
Sir Jonathan Symonds
Chair
25 February 2025
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Directors’ report continued
186
Financial
statements
In this section
Directors’ statement of responsibilities
188
Independent Auditor’s report
190
Financial statements
204
Notes to the financial statements
208
Financial statements of GSK plc
prepared under UK GAAP
291
GSK Annual Report 2024
187
The Directors are responsible for preparing the Annual Report,
the Remuneration report and the Group and parent company
financial statements in accordance with applicable law and
regulations.
UK company law requires the Directors to prepare financial
statements for each financial year. The Directors are required
to prepare the Group consolidated financial statements in
accordance with UK-adopted international accounting
standards in conformity with the requirements of the
Companies Act 2006 and the International Financial Reporting
Standards (IFRS) as issued by the International Accounting
Standards Board (IASB). The Directors have elected to prepare
the parent company financial statements in accordance with
United Kingdom Accounting Standards and applicable law
(United Kingdom Generally Accepted Accounting Practice)
(Financial Reporting Standard 101 Reduced Disclosure
Framework). Under company law the Directors must not
approve the financial statements unless they are satisfied that
they give a true and fair view of the state of affairs of the Group
and its profit or loss for that period. In preparing the financial
statements, the Directors are required to:
– select suitable accounting policies and then apply them
consistently;
– make judgements and accounting estimates that are
reasonable and prudent;
– state that the Group financial statements comply with IFRS,
as issued by the IASB and in conformity with the
requirements of the Companies Act 2006;
– state with regard to the parent company financial
statements that applicable UK Accounting Standards have
been followed, subject to any material departures disclosed
and explained in the parent company financial statements;
and
– prepare the financial statements on a going concern basis
unless it is inappropriate to presume that the Group and the
parent company will continue in business.
In preparing the Group financial statements, International
Accounting Standard 1 requires that directors properly select
and apply accounting policies; present information, including
accounting policies, in a manner that provides relevant,
reliable, comparable and understandable information; provide
additional disclosures when compliance with the specific
requirements in IFRS Standards are insufficient to enable users
to understand the impact of particular transactions, other
events and conditions on the entity’s financial position and
financial performance; and make an assessment of the
company’s ability to continue as a going concern.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the company’s
transactions and disclose with reasonable accuracy at any
time the financial position of the Group and to enable them to
ensure that the Group financial statements and the
Remuneration report comply with the Companies Act 2006.
They are also responsible for safeguarding the assets of the
Group and hence for taking reasonable steps for the prevention
and detection of fraud and other irregularities.
The Group financial statements for the year ended
31 December 2024, comprising principal statements and
supporting notes, are set out in the ‘Financial statements’ on
pages 204 to 290 of this report. The parent company financial
statements for the year ended 31 December 2024, comprising
the balance sheet and the statement of changes in equity for
the year ended 31 December 2024 and supporting notes, are
set out on pages 291 to 295.
The responsibilities of the auditor in relation to the financial
statements are set out in the Independent Auditor’s report on
pages 190 to 203.
The financial statements for the year ended 31 December 2024
are included in the Annual Report, which is published in printed
form and made available on our website. The Directors are
responsible for the maintenance and integrity of the corporate
and financial information included on the company’s website.
Legislation in the United Kingdom governing the preparation
and dissemination of financial statements may differ from
legislation in other jurisdictions.
Each of the current Directors, whose names and functions are
listed in the Corporate Governance section of the Annual
Report 2024 confirms that, to the best of his or her knowledge:
– the Group financial statements, which have been prepared in
accordance with the applicable set of accounting standards
and in conformity with the requirements of Companies Act
2006, give a true and fair view of the assets, liabilities,
financial position and profit of the Group;
– the strategic report and risk sections of the Annual Report,
which represent the management report, include a fair
review of the development and performance of the business
and the position of the company and the Group taken as a
whole, together with a description of the principal risks and
uncertainties that it faces; and
– the Annual Report and financial statement, taken as a whole,
are fair, balanced and understandable and provide the
information necessary for shareholders to assess the
company’s position and performance, business model and
strategy.
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Directors’ statement of responsibilities
188
Disclosure of information to auditor
The Directors in office at the date of this Annual Report have
each confirmed that:
– so far as he or she is aware, there is no relevant audit
information of which the company’s auditor is unaware; and
– he or she has taken all the steps that he or she ought to have
taken as a Director to make himself or herself aware of any
relevant audit information and to establish that the
company’s auditor is aware of that information.
This confirmation is given and should be interpreted in
accordance with the provisions of section 418 of the Companies
Act 2006.
Going concern basis
Pages 83 to 111 and pages 67 to 75 contain information on the
performance of the Group, its financial position, cash flows, net
debt position, borrowing facilities and climate-related risks.
Further information, including Treasury risk management
policies, exposures to market and credit risk and hedging
activities, is given in Note 44, 'Financial instruments, and related
disclosures' to the financial statements. Having assessed the
principal risks and other matters considered in connection with
the viability statement, the Directors considered it appropriate
to adopt the going concern basis of accounting in preparing
the financial statements.
Internal control
The Board, through the Audit & Risk Committee, has reviewed
the assessment of risks and the internal control framework that
operates in GSK and has considered the effectiveness of the
system of internal control in operation in the Group for the year
covered by this Annual Report and up to the date of its
approval by the Board of Directors. Further detail on the review
of internal controls is set out in the Governance report on page
142.
The 2018 UK Corporate Governance Code
The Board considers that GSK plc applies the principles and
complies with the provisions of the UK Corporate Governance
Code maintained by the Financial Reporting Council, as
described in the Corporate Governance section including
Remuneration on pages 113 to 186. The Board further considers
that the Annual Report, taken as a whole, is fair, balanced and
understandable, and provides the information necessary for
shareholders to assess the Group’s position and performance,
business model and strategy.
As required by the Financial Conduct Authority’s Listing Rules,
the auditor has considered the Directors’ statement of
compliance in relation to those points of the UK Corporate
Governance Code which are specified for their review.
Annual Report
The Annual Report for the year ended 31 December 2024,
comprising the Report of the Directors, the Remuneration
report, the Financial statements and Additional information for
investors, has been approved by the Board of Directors and
signed on its behalf by
Sir Jonathan Symonds
Chair
25 February 2025
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Directors’ statement of responsibilities continued
189
Report on the audit of the financial statements
1. Opinion
In our opinion:
– The financial statements of GSK plc (the ‘Parent company’)
and its subsidiaries (the ‘Group’) give a true and fair view of
the state of the Group’s and of the Parent company’s affairs
as at 31 December 2024 and of the Group’s profit for the year
then ended;
– The Group financial statements have been properly prepared
in accordance with United Kingdom adopted international
accounting standards and IFRS Accounting Standards as
issued by the International Accounting Standards Board
(IASB);
– The Parent company financial statements have been
properly prepared in accordance with United Kingdom
Generally Accepted Accounting Practice including FRS 101
“Reduced Disclosure Framework”; and
– The financial statements have been prepared in accordance
with the requirements of the Companies Act 2006.
We have audited the financial statements which comprise the
Group
– Consolidated income statement;
– Consolidated statement of comprehensive income;
– Consolidated balance sheet;
– Consolidated statement of changes in equity;
– Consolidated cash flow statement; and
– Notes 1 to 48 to the financial statements, which includes
the material accounting policy information.
Parent company
– Company balance sheet;
– Company statement of changes in equity; and
– Notes A to K to the company balance sheet, which
include the company material accounting policy
information.
The financial reporting framework that has been applied in the
preparation of the Group financial statements is applicable law,
United Kingdom adopted international accounting standards
and IFRS Accounting Standards as issued by the IASB. The
financial reporting framework that has been applied in the
preparation of the Parent company financial statements is
applicable law and United Kingdom Accounting Standards,
including FRS 101 “Reduced Disclosure Framework” (United
Kingdom Generally Accepted Accounting Practice).
2. Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our
responsibilities under those standards are further described in
the auditor’s responsibilities for the audit of the financial
statements section of our report.
We are independent of the Group and the Parent company in
accordance with the ethical requirements that are relevant to
our audit of the financial statements in the UK, including the
Financial Reporting Council’s (the ‘FRC’s’) Ethical Standard as
applied to listed public interest entities, and we have fulfilled our
other ethical responsibilities in accordance with these
requirements. The non-audit services provided to the Group
and Parent company for the year are disclosed in the Audit &
Risk Committee report within the Corporate Governance section
of the Annual Report on page 139 and note 8 to the financial
statements. We confirm that we have not provided any non-
audit services prohibited by the FRC’s Ethical Standard to the
Group or the Parent company,
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
3. Summary of our audit approach
Key audit matters
The key audit matters that we identified in the current year
were:
– Valuation of the ViiV Healthcare Shionogi contingent
consideration liability
– Valuation of US Returns and Rebates (RAR) accruals
– Valuation of other intangible assets
– Valuation of uncertain tax positions, including transfer pricing
– Valuation of provisions and contingent liabilities for
significant legal proceedings.
Materiality
– The materiality that we used for the group financial
statement was £300 million (2023: £280 million) which was
determined on the basis of Profit before tax, Core profit
before tax, Revenue and Net cash flows from operations.
Scoping
– The following components were subject to audit procedures
as well as the assessment of the effectiveness of internal
controls over financial reporting: Belgium, Canada, China,
France, Germany, Italy, Japan, Spain, United Kingdom and
the United States.
Our audit scope addressed 80% (2023: 80%) of the Group’s
revenue, 79% (2023: 92%) of the Group’s profit before tax
and 87% (2023: 76%) of the Group’s total assets.
Significant changes in our approach
– There have been no significant changes in our approach.
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Independent Auditor’s report to the members of GSK plc
190
4. Conclusions relating to going concern
In auditing the financial statements, we have concluded that
the directors’ use of the going concern basis of accounting in
the preparation of the financial statements is appropriate.
Our evaluation of the directors’ assessment of the Group’s and
Parent company’s ability to continue to adopt the going
concern basis of accounting included:
– Enquiries of the Group directors and management regarding
the assumptions used in the going concern models, including
the potential impact of climate change;
– Evaluating the Group’s existing access to sources of
financing, including undrawn committed bank facilities, and
the impact of changes in interest rates on profitability;
– Reading analyst reports, industry data and other external
information, including understanding the macroeconomic
environment, to determine if it provided corroborative or
contradictory evidence in relation to assumptions used;
– Comparing forecasted sales to recent historical financial
information;
– Testing the underlying data generated to prepare the
forecast scenarios and determined whether there was
adequate support for the assumptions underlying the
forecast; and
– Evaluating the Group’s disclosures on going concern against
the requirements of IAS 1 Presentation of Financial
Statements.
Based on the work we have performed, we have not identified
any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the
Group’s and Parent company’s ability to continue as a going
concern for a period of at least twelve months from when the
financial statements are authorised for issue.
In relation to the reporting on how the Group has applied the
UK Corporate Governance Code, we have nothing material to
add or draw attention to in relation to the Directors’ statement
in the financial statements about whether the directors
considered it appropriate to adopt the going concern basis of
accounting.
Our responsibilities and the responsibilities of the directors with
respect to going concern are described in the relevant sections
of this report.
5. Key audit matters
Key audit matters are those matters that, in our professional
judgement, were of most significance in our audit of the
financial statements of the current period and include the most
significant assessed risks of material misstatement (whether or
not due to fraud) that we identified. These matters included
those which had the greatest effect on the overall audit
strategy, the allocation of resources in the audit and directing
the efforts of the engagement team.
These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion on
the financial statements as a whole, we do not provide a
separate opinion on these matters.
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Independent Auditor’s report continued
Report on the audit of the financial statements continued
191
Key audit matter description
How the scope of our audit responded to the key audit matter
Valuation of the ViiV Healthcare Shionogi contingent
consideration liability
The Group has completed a number of significant transactions
which resulted in the recognition of material contingent
consideration liabilities, which are a key source of estimation
uncertainty. The most significant of these liabilities was the ViiV
Healthcare Shionogi Contingent Consideration Liability (ViiV
CCL).
The Group completed the acquisition of the remaining 50%
interest in the Shionogi-ViiV Healthcare joint venture in 2012.
Upon completion, the Group recognised a contingent
consideration liability for the fair value of the expected future
payments to be made to Shionogi. As at 31 December 2024 the
liability was valued at £6,061 million .
We identified the ViiV CCL as a key audit matter because of
the significant estimates and assumptions relating to the sales
forecasts used in valuing the ViiV CCL and the sensitivity of the
valuation to these inputs. The most significant of these relate to
sales forecasts in the United States (US) on certain products in
the treatment and prevention portfolio. Such forecasts are
based on an assessment of the expected launch dates for
pipeline assets, the ability to shift market practice and
prescriber behaviour towards long-acting injectable
treatments and 2-drug regimens, the size of long-acting
prevention market and subsequent sales volumes. There is
incremental challenge in forecasting sales associated with
recently launched products due to the lack of historical actual
data. The sales forecasts also required significant audit effort
to perform appropriate audit procedures to challenge and
evaluate the reasonableness of those forecasts.
Contingent consideration liabilities, including the ViiV CCL, are
disclosed as a key source of estimation uncertainty in note 3, of
the Group financial statements with further disclosures
provided in notes 33. The matter is also discussed in the Audit
& Risk Committee report within the Corporate Governance
section of the Annual Report.
Audit procedures performed
We performed the following audit procedures, amongst others,
related primarily to the sales forecasts:
– Tested the controls over the key inputs and assumptions
used in the valuation of the contingent consideration
liability, including review controls over the sales forecasts of
the treatment product portfolio used to value the ViiV CCL;
– Obtained the Group’s assessment of the key inputs and
assumptions used in the sales forecasts and evaluated the
reasonableness of these, including through enquiries of key
individuals from the senior leadership team, commercial
strategy team and key personnel involved in the budgeting
and forecasting process, and inspection of supporting
evidence;
– Evaluated the US volume assumptions made by the Group
to estimate sales forecasts. This involved benchmarking
forecast market share data against external data, such as
total prescription volumes and new patient prescription
volumes, in order to assess for any sources of contradictory
evidence;
– Evaluated the reasonableness of US pricing assumptions by
the Group, by comparing the forecasted Returns and
Rebates rate by product against the current rate, and
assessing the forecasted Returns and Rebates against
comparable products and expected changes in payer
policy;
– Considered the results of clinical studies undertaken in the
year by the Group and key competitors in order to assess
whether these are corroborative or contradictory to
assumptions used in the product portfolio sales forecasts in
the US;
– Benchmarked the Group’s sales forecasts against those
included in reports from 18 analysts and considered sales
forecasts on both a total ViiV basis and an individual
product basis, assessing against identified contradictory
data; and
– Together with our valuations specialists, assessed the
reasonableness of the overall valuation methodology,
including testing the valuation model for mechanical
accuracy.
Key observations communicated to the Audit & Risk
Committee
The sales forecasts used in the valuation are reasonable and in
line with relevant supporting information. We are satisfied that
the sales forecasts appropriately reflect trends in the overall
HIV treatment and prevention markets including the impacts
of competition, healthcare reform and a predicted shift
towards long-acting injectable products.
The approach to valuing the ViiV CCL was consistent with prior
periods and overall we are satisfied that the valuation liability
is reasonable and consistent with IFRS Accounting Standards.
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Independent Auditor’s report continued
Report on the audit of the financial statements continued
192
Key audit matter description
How the scope of our audit responded to the key audit matter
Valuation of US Returns and Rebates (RAR) accruals
In the US, the Group sells to customers under various
commercial and government mandated contracts and
reimbursement arrangements that include rebates,
chargebacks and a right of return for certain pharmaceutical
products. Returns and rebates provided to customers under
these arrangements are accounted for as variable
consideration, and recognised as a reduction to revenue in the
form of gross-to-net sales adjustments. These adjustments are
known as the Returns and Rebates (RAR) accruals and are a
source of significant estimation uncertainty which could have a
material impact on reported revenue.
In the US Commercial business in 2024, £14,100 million of RAR
deductions were made to gross revenue of £30,484 million,
resulting in net revenue of £16,384 million.The balance sheet
accrual at 31 December 2024 for the US Commercial business
amounted to £5,235 million.
The four most significant buying groups to which the RAR
accrual relates are Managed Care, Medicaid, Ryan White and
Medicare Part D.
The two main causes of significant estimation uncertainty are:
– The utilisation rate, which is the portion of total sales that
will be made into each buying group, estimated in
recording the accruals. The utilisation assumption is the
most challenging of the key assumptions used to derive the
accrual given that it is influenced by historical trends,
projected market conditions and other factors outside the
control of the Group; and
– The time lag between the point of sale and the point at
which exact rebate amounts are known to the Group upon
receipt of a claim. Those buying groups with the longest
time lag result in a greater accrued period, and therefore, a
greater level of estimation uncertainty in estimating the
period-end accrual.
The level of estimation uncertainty is also impacted by
significant shifts in channel mix driven by changes in the
competitive landscape, including competitor and generic
product launches, changes in government legislation and other
macroeconomic factors. As such, we focus on the utilisation
assumptions for those products where we deem the level of
estimation uncertainty to be the most significant.
We also focus on the period-end adjustments made to the
RAR accruals. These adjustments reflected updates made to
the initial assumptions included within the forecasted RAR
rates and, in our view, present the greatest opportunity for
fraud in revenue recognition (notwithstanding the existence of
internal controls).
US Commercial Operations returns and rebates are disclosed
as a key source of estimation uncertainty in note 3 of the Group
financial statements with further disclosures provided in note
29. The matter is also discussed in the Audit & Risk Committee
report within the Corporate Governance section of the Annual
Report.
Audit procedures performed
We performed the following audit procedures, amongst others,
related to estimates in the RAR accruals:
– Tested the key controls over the estimation of RAR accruals
including the controls associated with the forecasting of
utilisation rates process and the month-end accrual review
controls;
– Evaluated assumptions for a selection of utilisation rates,
focusing on certain products where we concluded the
accrual is most sensitive to these assumptions. Our
procedures included comparison to historical utilisation
rates, consideration of historical accuracy and assessment
of projected market conditions such as the impact of
competition, new product launches, changes in government
legislation and macroeconomic factors are appropriately
reflected in the RAR accruals;
– Supplemented this with substantive analytical procedures
by developing an independent expectation of the accrual
balance for each of the key segments, based on historical
claims received adjusted to reflect market changes in the
period, third party information on inventory held by
customers, and an assessment of the time lag between the
initial point of sale and the claim receipt. We then
compared this independent expectation to those recorded
to evaluate the appropriateness of the year ending accrual
position;
– Considered the historical accuracy of estimates and
evaluated whether forecast assumptions had been
appropriately updated in a selection of cases where the
actual rebate claims differed to the amount accrued;
– Evaluated the accuracy and completeness of period-end
adjustments to the liability made as part of the Group’s
ongoing review of the estimated accrual; and
– Performed audit procedures over the actual rebate
payments made in the year by agreeing to the relevant
contract to assess whether the rebate payments were in line
with the contractual terms.
Key observations communicated to the Audit & Risk
Committee
We are satisfied that the estimated liability of the RAR accruals
at the year-end is appropriate. We observed a level of
prudence in the estimate when assessing against our own
independent expectations, which is in accordance with the
requirements of IFRS 15 Revenue from contracts with customers
to limit the risk of a significant reversal of revenue.
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Key audit matter description
How the scope of our audit responded to the key audit matter
Valuation of other intangible assets
As at 31 December 2024, the Group held £14,936 million of
other intangible assets (including licenses, patents, trademarks,
and trade names, but excluding goodwill and computer
software). This includes £886 million of intangible assets
acquired as part of the acquisition of Aiolos Bio, Inc (Aiolos)
during the year.
Intangible assets which are in-development and not available
for use should be tested at least annually for impairment
irrespective of whether an indication of impairment exists.
When the carrying amount of an individual intangible asset, or
an cash-generating unit to which an intangible asset belongs,
exceeds its recoverable amount, an impairment is recognised.
Recoverability of an intangible asset is derived from certain
assumptions and estimates of future trading performance
which create significant estimation uncertainty.
The underlying assumptions include forecast sales pricing,
volume, growth rates and probability of technical and
regulatory success of ongoing clinical trials. This includes
assumptions on timing of cash flows determined by
anticipated launch year, peak year sales, subsequent sales
erosion due to generic product competition and profit margin
levels.
During 2024, impairment charges of £314 million were
recorded. These were primarily full impairments due to
cessation of research and development dictated by negative
clinical trial readouts or lack of commercial attractiveness.
We identified the valuation of other intangible assets as a key
audit matter due to the inherent judgements involved in
estimating future cash flows. Auditing such assumptions and
estimates required extensive audit effort to challenge and
evaluate the reasonableness of forecasts and management
judgements.
Other intangible assets are disclosed as a key source of
estimation uncertainty in note 3 of the Group financial
statements with further disclosures provided in note 20 and 41.
The matter is also discussed in the Audit & Risk Committee
report within the Corporate Governance section of the Annual
Report.
.
Audit procedures performed
We performed the following audit procedures, amongst others,
over the forecast sales pricing, volume, growth rates,
probability of technical and regulatory success, and profit
margin levels, used in the assessment of the valuation of other
intangible assets:
– Tested review controls over the key inputs and assumptions
used in the valuation of other intangible assets. The controls
encompass review of the valuation models, which contain a
number of assumptions such as the probability of technical
and regulatory success, launch dates plus other revenue
and cost assumptions;
– Inquired with key individuals from the corporate
development team, commercial forecasting leads, and key
personnel involved in the assets research and development
process. We used the outcome of these inquiries to evaluate
the Group’s evidence to support key assumptions such as
overall sales forecasts, peak year sales (including
anticipated market share, volume and uptake alongside
price points where required), foreseeable competitive
landscape, growth rates, probability of regulatory and
technical success and margins;
– Evaluated the key inputs and assumptions applied in
estimating sales and profit margin forecasts, including
benchmarking of forecasts against external market data.
This included independent market research of therapeutic
area price points, price growth rates, and anticipated
competitor market landscape, currently and at the time of
forecast regulatory approval, plus assessment of any
sources of contradictory evidence;
– Compared the forecast sales and profit margin levels to the
Plan data (asset by asset internal forecasts) approved by
the GSK Leadership Team and the Board of Directors,
where the in-development intangible asset is forecast to
launch within the next 3-year period;
– Assessed the historical accuracy of sales forecasts by
performing retrospective reviews across marketed assets
within the business;
– Engaged our fair valuation specialists to assess the
reasonableness of the discount rates and valuation
methodology applied as well as performing mechanical
accuracy checks; and
– Considered whether events or transactions that occurred
after the balance sheet date, but before the reporting date,
affect the conclusions reached on the carrying values of the
assets and associated disclosures.
Key observations communicated to the Audit & Risk
Committee
For those intangible assets which were acquired during the
period as part of the Aiolos business acquisition we concluded
that the assumptions underpinning the fair value of intangible
assets reflected in the purchase price allocations were
reasonable and in accordance with IFRS Accounting
Standards.
For those intangible assets in-development and subject to
impairment reviews we concluded that the judgements made
by management were reasonable and in accordance with
IFRS Accounting Standards.
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Key audit matter description
How the scope of our audit responded to the key audit matter
Valuation of uncertain tax positions, including transfer pricing
The Group operates in numerous jurisdictions and there are
open tax and transfer pricing matters and exposures with UK,
US and overseas tax authorities that give rise to uncertain tax
positions. There is a wide range of possible outcomes for
provisions and contingencies. Certain judgements in respect of
estimates of tax exposures and contingencies are required in
order to assess the adequacy of tax provisions, which are
sometimes complex as a result of the considerations required
over multiple tax laws and regulations.
At 31 December 2024, the Group has recorded provisions of
£636 million in respect of uncertain tax positions.
Valuation of uncertain tax positions is disclosed as a key source
of estimation uncertainty in note 3 of the Group financial
statements with further disclosures included in note 14. The
matter is also discussed in the Audit & Risk Committee report
within the Corporate Governance section of the Annual Report.
Audit procedures performed
With the support of our tax specialists, we assessed the
appropriateness of the uncertain tax provisions, focused on
those jurisdictions where the Group has the greatest potential
exposure and where the highest level of judgement is required,
by performing the following audit procedures amongst others:
– Tested key controls over preparation, review and reporting
of judgmental tax balances and transactions, which include
provisions for uncertain tax provisions;
– Assessed the assumptions and judgements that are
required to determine the range of possible outcomes for
recognition and measurement of provisions for uncertain
tax positions in compliance with the requirements of IFRIC
23 Uncertainty over Income Tax Treatments;
– Involved our transfer pricing specialists to evaluate the
transfer pricing methodology of the Group and associated
approach to provision recognition and measurement; and
– Considered evidence such as the actual results from the
recent tax authority audits and enquiries, third-party tax
advice obtained by the Group and our tax specialists’ own
knowledge of market practice in relevant jurisdictions.
Key observations communicated to the Audit & Risk
Committee
We are satisfied that the estimates in relation to uncertain tax
positions and the related disclosures are in accordance with
IFRS Accounting Standards. From our work we concluded that
a consistent approach has been applied to estimating
uncertain tax provisions which is appropriate and in
accordance with IFRIC 23.
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Key audit matter description
How the scope of our audit responded to the key audit matter
Valuation of provisions and contingent liabilities for significant
legal proceedings
The Group operates in an environment where it is subject to
significant legal and administrative proceedings, including
product liability, intellectual property, tax, anti-trust, consumer
fraud and governmental regulations.
The Group is exposed to a number of regulatory and litigation
matters. The Group’s provision for these matters is £1,446
million at 31 December 2024 and the income statement charge
for the year is £2,039 million. Other matters are disclosed as
contingent liabilities where the criteria for recognising a
provision under IAS 37 Provisions, Contingent Liabilities and
Contingent Assets are not met.
The most significant charges and provisions recorded in
respect of regulatory and litigation matters in the year relate to
the Zantac product litigation matter, which is classified as a
Significant legal matter by the Group.
Significant judgement is required by the Group in assessing the
following, as required by IAS 37 Provisions, Contingent
Liabilities and Contingent Assets as to:
– Whether a present obligation exists and whether the
outcome will result in a probable outflow, particularly where
the outcome of litigation is uncertain and subject to
additional court proceedings;
– The determination of a reliable estimate of the amounts of
the obligation; and
– The nature and extent of any contingent liabilities and
underlying significant estimation uncertainties disclosed.
Contingent liabilities and significant legal proceedings are
disclosed in Notes 35 and 47, respectively. The key audit matter
is discussed within the Corporate Governance section of the
Annual Report.
Audit procedures performed
We performed the following audit procedures, amongst others,
to address the valuation of provisions and contingent liabilities
for significant legal proceedings:
– Tested the Group’s controls over the valuation of provisions,
the robustness of the provision against the requirements of
IAS 37, the appropriateness of judgements used to
determine a ‘best estimate’ and completeness and
accuracy of data used in the process;
– Evaluated the assessment of the provisions, associated
probabilities, and potential outcomes in accordance with
IAS 37;
– Evaluated whether the methodology, data and significant
judgements and assumptions used in the valuation of the
provisions are appropriate in the context of the applicable
financial reporting framework;
– Inquired with and inspected correspondence from the
Group’s internal and external counsel to assess the litigation
matter and evaluate the Group’s significant judgements
and assumptions;
– Read board minutes and settlement agreements to
evaluate management’s approach in respect of the
litigation, and agreed the terms and conditions of such
arrangements to the payments made to evaluate provisions
already recorded and whether there is a requirement for
additional provisions;
– Evaluated external information, including analyst reports,
subject matter expert analysis and analogous litigation
cases to understand the views and expectations of the
external market; and
– Evaluated whether the disclosures made in the financial
statements appropriately reflect the facts and critical
accounting judgements.
Key observations communicated to the Audit & Risk
Committee
We are satisfied that the estimation of the provisions and
contingent liability disclosures are consistent with the
requirements of IAS 37.
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6. Our application of materiality
We define materiality as the magnitude of misstatement in the
financial statements that makes it probable that the economic
decisions of a reasonably knowledgeable person would be
changed or influenced.
We use materiality both in planning the scope of our audit work
and in evaluating the results of our work. Based on our
professional judgement, we determined materiality for the
financial statements as a whole as follows:
Group financial statements
Parent company financial statements
Materiality
£300 million
(2023: £280 million)
£300 million
(2023: £280 million)
Basis for
determining
materiality
In determining our benchmark for materiality, we
considered the metrics used by investors and other
readers of the financial statements. In particular, we
considered: Profit before tax, Core profit before tax,
Revenue and Net cash flows from operations.
Using professional judgement, we have determined
materiality to be £300 million. See below for how our
materiality compares to our benchmark metrics.
Materiality was determined using the total assets benchmark capped
at 100% (2023: 100%) of Group materiality. Our materiality represents
0.63% (2023: 0.62%) of total assets.
Metric
%
Profit before tax
8.70%
(2023: 4.62%)
Core profit before tax*
3.48%
(2023: 3.45%
Revenue
0.95%
(2023: 0.92%)
Net cash inflow from operating activities
4.58%
(2023: 4.14%)
* A reconciliation between the Profit before tax and Core
profit before tax is detailed in the Adjusting Items section of
the strategic report.
Rationale
for the
benchmark
applied
Given the importance of the above metrics used by
investors and other readers of the financial
statements, we considered Profit before tax, Core
profit before tax, Revenue and Net cash inflow from
operating activities, in determining materiality.
The component performance materiality allocated
to the in-scope components ranged between £63
million and £126 million (2023: between £46 million
and £108 million).
The strength of the balance sheet is the key measure of financial health
that is important to shareholders since the primary concern for the
Parent company is the payment of dividends. Using a benchmark of
total assets is therefore the appropriate metric.
Where account balances are audited for the purposes of the
consolidated financial statements, a lower component materiality is
used.
We set performance materiality at a level lower than materiality
to reduce the probability that, in aggregate, uncorrected and
undetected misstatements exceed the materiality for the
financial statements as a whole. Group and Parent company
performance materiality was set at 70% of Group and Parent
materiality respectively for the 2024 audit (2023: 70%). In
determining performance materiality, we considered factors
including:
– Our risk assessment, including our assessment of the Group’s
overall control environment and that we consider it
appropriate to rely on controls over a number of business
processes; and
– Our past experience, which has indicated a low number of
corrected and uncorrected misstatements identified in prior
periods.
We agreed with the Audit & Risk Committee that we would
report to the Committee all audit differences in excess of £10
million (2023: £10 million) as well as any differences below this
threshold, which in our view, warranted reporting on qualitative
grounds. We also report to the Audit & Risk Committee on
disclosure matters that we identified when assessing the overall
presentation of the financial statements.
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7. Audit scope and execution
Our audit approach was structured in order to reflect the group
structure, and to effectively address risks of material
misstatement.
The central control and common systems throughout the Group
enables us to deploy and utilise technology and data analytics
across the breadth of the Group, providing a more detailed
understanding of the flow of transactions, which allows us to
focus our risk assessment and design targeted audit testing
procedures.
We embed technology throughout our audit to improve quality
and effectiveness, including in the areas of planning and
scoping, project management, risks and controls assessment,
substantive testing and reporting insights to management and
the Audit & Risk Committee. During the current year, we have
extended the use of process analytics technology to perform
substantive testing on revenue by automatically matching key
revenue data points across sales orders, invoices and shipping
documents generated during the revenue process.
Our audit approach can be summarised into the following
areas that enabled us to obtain the evidence required to form
an opinion on the Group and Parent company financial
statements:
– Risk assessment and audit planning at a Group level. Our risk
assessment procedures considered, amongst other factors,
the impact of climate change and the wider macroeconomic
environment on the account balances, disclosures and
company practices. Our data analytical tools allow us to
scrutinise large transactional data sets for unusual trends,
characteristics, outliers or transaction flows to support our
identification of audit risks. For example, we analysed US RAR
data by product and payment channel to identify products
where there are high values of total rebate deductions
recognised, where there are significant differences on rebate
rates offered between payers or where qualitative factors
impacted the brands (see Section 5 - Valuation of US Returns
and Rebates (RAR) accruals). We also used data analytics to
determine products and regions where the valuation of the
ViiV Healthcare Shionogi contingent consideration liability
was most sensitive to the assumptions used (see Section 5 -
Valuation of the ViiV Healthcare Shionogi contingent
consideration liability). We appointed partners from the
Group audit team to lead the global audit of the operating
segments (commercial operations and research &
development), in addition to partners responsible for the
component and legal entity audits in each country. These
segment partners met regularly with senior segment
management to understand the strategy, performance and
other matters which arose throughout the year that could
have impacted the financial reporting. In addition, we held
regular meetings with members of the Internal Audit, the
internal Legal Counsel and the Global Ethics & Compliance
teams to understand their work and to review their reports to
enhance our risk assessment.
– Audit work performed at global shared service centres. A
significant amount of the Group’s operational processes that
cover financial reporting is undertaken in shared service
centres. Our Group audit team included senior individuals
responsible for each of the global processes who coordinated
our audit work at the shared service centres utilising a live
global project management platform. This structure enables
us to develop a good understanding of the end-to-end
processes that supported material account balances, classes
of transactions and disclosures within the Group financial
statements. We then evaluated the effectiveness of internal
controls over financial reporting for these processes and
considered the implications for the remainder of our audit
work. As part of supervising the work of the shared service
centre audits, senior Group audit team members visited
Costa Rica, India and Poland;
– Audit work executed at component level and individual legal
entities. The following components were subject to audit
procedures as well as the assessment of the effectiveness of
internal controls over financial reporting: Belgium, Canada,
China, France, Germany, Italy, Japan, Spain, and United
Kingdom and the United States. The Group audit team was in
active dialogue throughout the audit with the component
audit teams responsible for the audit work under the direction
and supervision of the Group audit team. This included
determining whether the work was planned and performed in
accordance with the overall Group audit strategy and the
requirements of our Group audit instructions to the
components. As part of supervising the work of the
components, senior Group audit team members visited
component teams in Belgium, USA, Japan, UK and China. To
satisfy ourselves that our oversight and supervision was
appropriate we performed reviews of audit working papers,
increased the frequency and length of those reviews
depending on the significance and risk of the component
and continued to attend the component planning and
clearance meetings, joined by local management;
– Audit procedures undertaken at a Group level and on the
parent company. In addition to the above, we also performed
audit work on the Group and Parent company financial
statements, including but not limited to the consolidation of
the Group’s results, the preparation of the financial
statements, certain disclosures within the Directors’
Remuneration report, litigation provisions and exposures in
addition to entity level and oversight controls relevant to
financial reporting. Our scoping has been performed utilising
professional judgement to obtain sufficient coverage over
significant account balances. The component or legal entity
account balances not covered by our audit scope were
subject to analytical procedures confirming that there were
no significant risks of material misstatement in the
aggregated financial information; and
– Internal controls testing approach. We tested the
effectiveness of internal controls over financial reporting
across all in-scope entities and entity level controls at the
Group level. Common systems allowed for relevant IT controls
to be tested centrally across all components and we utilised
an automated controls testing tool to support our testing of
both IT controls and automated business controls. We were
able to place reliance on controls where planned.
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Our audit scope consisting of audit procedures on one or more
classes of transactions, account balances, disclosures, or
specified audit procedures addressed 80% (2023: 80%) of the
Group’s revenue, 79% (2023: 92%) of the Group’s profit before
tax and 87% (2023: 76%) of the Group’s total assets.
The impact of climate change on our audit
Climate change has the potential to impact the Group in a
number of ways as set out in the strategic report on pages 67 -
76 of the Annual Report and Note 17, 19 and 20 on page 230,
232 and 233 of the financial statements. The Group has
committed to net zero greenhouse gas emissions across the
Group’s full value chain by 2045.
In the planning of our audit, we have considered the potential
impact of climate change on the Group’s business and its
financial statements.
We have sought to understand the Group’s identification and
assessment of the potential impacts of climate change, how
these risks influence the Group’s strategy and their implications
on the financial statements.
The Group’s assessment focused on the impacts of more
frequent extreme weather conditions, water scarcity, changes in
the political landscape and media focus which has the
propensity to cause changes in consumer and market
behaviour; volatility in the costs and availability of materials
and resources that could impact future financial performance
and asset valuations.
In consultation with our climate change specialists, we:
– Conducted detailed risk assessment procedures across all in-
scope balances and transactions to determine any risks of
material misstatement in the financial statements by
applying the expected impact of climate change to our
understanding of the business;
– Evaluated the appropriateness of the Group’s assessment of
the potential impact of climate change and the impact of
these on the financial statements, including in the area of
intangible assets; and
– Used our own assessment of the impact of climate change to
challenge the Group’s assessment of going concern,
including considering the potential impact on future
performance and availability of financing.
As part of our audit procedures, we are required to read and
consider these disclosures to consider whether they are
materially inconsistent with the financial statements or
knowledge obtained in the audit. We did not identify any
material inconsistencies as a result of these procedures.
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8. Other information
The other information comprises the information included in the
Annual Report, other than the financial statements and our
auditor’s report thereon. The directors are responsible for the
other information contained within the Annual Report.
Our opinion on the financial statements does not cover the
other information and, except to the extent otherwise explicitly
stated in our report, we do not express any form of assurance
conclusion thereon.
Our responsibility is to read the other information and, in doing
so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge
obtained in course of the audit or otherwise appears to be
materially misstated.
If we identify such material inconsistencies or apparent material
misstatements, we are required to determine whether this gives
rise to a material misstatement in the financial statements
themselves. If, based on the work we have performed, we
conclude that there is a material misstatement of this other
information, we are required to report that fact.
We summarise below our work in relation to areas of the other
information including those areas upon which we are
specifically required to report:
Matters we are specifically required to report
Our responsibility
Our reporting
Principal risks and viability statement
Review the principal risk summary on page 307 and viability statement on
page 81 in the light of the knowledge gathered during the audit, such as
through considering the directors’ processes to support the statements
made, challenging key judgements and estimates, consideration of
historical forecasting accuracy and evaluating macro-economic
assumptions.
Consider if the statements are aligned with the relevant provisions of the
Code.
As set out in the “Corporate governance statement”
section, we have nothing material to report, add or
draw attention to in respect of these matters.
Directors’ Remuneration report
Report whether the part of the Directors’ Remuneration report to be
audited is properly prepared and the disclosures specified by the
Companies Act have been made.
As set out in the ‘Opinions on other matters prescribed
by the Companies Act 2006’ section, in our opinion,
the part of the Directors’ Remuneration report to be
audited has been prepared in accordance with the
Companies Act 2006.
Strategic report and directors’ report
Report whether they are consistent with the audited financial statements
and are prepared in accordance with applicable legal requirements.
Report if we have identified any material misstatements in either report in
the light of the knowledge and understanding of the Group and of the
Parent company and their environment obtained in the course of the audit.
As set out in the “Opinions on other matters prescribed
by the Companies Act 2006” section, in our opinion,
based on the work undertaken in the course of the
audit, the information in these reports is consistent
with the audited financial statements and has been
prepared in accordance with applicable legal
requirements.
As referenced on page 76, we have provided limited
assurance in accordance with International Standards
for Assurance Engagements (ISAE) 3000 and ISAE
3410 over selected metrics on page 76.
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Other reporting on other information
Our responsibility
Our reporting
Alternative performance measures (APMs)
APMs are measures that are not defined by generally accepted accounting
practice (GAAP) and therefore are not typically included in the financial
statement part of the Annual Report. The Group use APMs, such as core
profit, free cash flow and constant currency growth rates in its reporting of
financial performance.
We have reviewed and assessed the calculation and reporting of these
metrics to assess consistency with the Group’s published definitions and
policies for these items.
We have also considered and assessed whether the use of APMs in the
Group’s reporting results is consistent with the guidelines produced by
regulators such as the European Securities and Markets Authority (ESMA)
guidelines on the use of APMs and the FRC Alternative Performance
Measures Thematic Review published in October 2021.
We also considered whether there was an appropriate balance between
the use of statutory metrics and APMs, in addition to whether clear
definitions and reconciliation for APMs used in financial reporting have
been provided.
In our opinion:
– The use, calculation and disclosure of APMs is
consistent with the Group’s published definitions
and policies;
– The use of APMs in the Group’s reporting results is
consistent with the guidelines produced by ESMA
and FRC; and
– There is an appropriate balance between the use
of statutory metrics and APMs, together with clear
definitions and reconciliation for APMs used in
financial reporting.
Dividends and distribution policy
Consider whether the dividends policy is transparent, and the dividends
paid are consistent with the policy, as outlined in the strategic report on
page 97.
In our opinion the dividends policy is appropriately
disclosed, and dividends paid are consistent with the
policy.
9. Responsibilities of directors
As explained more fully in the Directors’ statement of
responsibilities, the directors are responsible for the preparation
of the financial statements and for being satisfied that they give
a true and fair view, and for such internal control as the
directors determine is necessary to enable the preparation of
financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, the directors are
responsible for assessing the Group’s and the Parent company’s
ability to continue as a going concern, disclosing as applicable,
matters related to going concern and using the going concern
basis of accounting unless the directors either intend to
liquidate the Group or the Parent company or to cease
operations, or have no realistic alternative but to do so.
10. Auditor’s responsibilities for the audit of the
financial statements
Our objectives are to obtain reasonable assurance about
whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance but is not a guarantee
that an audit conducted in accordance with ISAs (UK) will
always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of
users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the
financial statements is located on the FRC’s website at:
www.frc.org.uk/auditorsresponsibilities. This description forms
part of our auditor’s report.
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11. Extent to which the audit was considered
capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance
with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material
misstatements in respect of irregularities, including fraud. The
extent to which our procedures are capable of detecting
irregularities, including fraud is detailed below.
Identifying and assessing potential risks related to
irregularities
In identifying and assessing the risks of material misstatement in
respect of irregularities, including fraud and non-compliance
with laws and regulations, we considered the following:
– The nature of the industry and sector, control environment
and business performance including the design of the
Group’s remuneration policies, key drivers for directors’
remuneration, bonus levels and performance targets;
– The group’s own assessment of the risks that irregularities
may occur either as a result of fraud or error;
– Results of our enquiries of the senior leadership team, internal
audit, the directors, and the Audit & Risk Committee about
their own identification and assessment of the risk of
irregularities, including those that are specific to the Group’s
sector;
– Any matters we identified having obtained and reviewed the
Group’s documentation of their policies and procedures
relating to:
– identifying, evaluating and complying with laws and
regulations and whether they were aware of any instances
of non-compliance;
– detecting and responding to the risks of fraud and whether
they have knowledge of any actual, suspected or alleged
fraud; and
– the internal controls established to mitigate risks related to
fraud or non-compliance with laws and regulations.
– the matters discussed among the engagement team
including significant component audit teams and involving
relevant internal specialists, including tax, valuations,
pensions, financial instruments, IT, ESG and industry
specialists regarding how and where fraud might occur in the
financial statements and any potential indicators of fraud.
We also obtained an understanding of the legal and regulatory
frameworks that the Group operates in, focusing on provisions
of those laws and regulations that had a direct effect on the
determination of material amounts and disclosures in the
financial statements. The key laws and regulations we
considered in this context included the provisions of the UK
Companies Act, pensions legislation and tax legislation. We
have also considered key laws and regulations that had a
fundamental effect on the operations of the Group, including
the Good Clinical Practice, the FDA regulations, General Data
Protection requirements, Anti-bribery and corruption policy, the
Foreign Corrupt Practices Act, Good Manufacturing Practices,
Food and Drugs Act, Pharmaceutical Price Regulation Scheme
and German Supply Chain Act.
Audit response to risks identified
As a result of these procedures, we considered the opportunities
and incentives that may exist within the organisation for fraud
and identified the greatest potential for fraud in the following
area: Valuation of US Returns and Rebates accruals, which was
identified as key audit matter. The key audit matters section of
our report explains the matter in more detail and also describes
the specific procedures in response to that key audit matter.
In common with all audits under ISAs (UK), we are also required
to perform specific procedures to respond to the risk of
management override.
Our procedures to respond to risks identified included the
following:
– Reviewing the financial statement disclosures and testing to
supporting documentation to assess compliance with
provisions of relevant laws and regulations described as
having a direct effect on the financial statements;
– Enquiring of the senior leadership team, the Audit & Risk
Committee and in-house and external legal counsel
concerning actual and potential litigation and claims;
– Performing analytical procedures to identify any unusual or
unexpected relationships that may indicate risks of material
misstatement due to fraud;
– Reading minutes of meetings of those charged with
governance, reviewing internal audit reports and
correspondence with regulators; and
– In addressing the risk of fraud through management override
of controls, testing the appropriateness of journal entries and
other adjustments; assessing whether the judgements made
in making accounting estimates are indicative of a potential
bias; and evaluating the business rationale of any significant
transactions that are unusual or outside the normal course of
business.
We also communicated relevant identified laws and regulations
and potential fraud risks to all engagement team members and
significant component audit teams and remained alert to any
indications of fraud or non-compliance with laws and
regulations throughout the audit.
Report on other legal and regulatory
requirements
12. Opinions on other matters prescribed by the
Companies Act 2006
In our opinion, the part of the Directors’ Remuneration report to
be audited has been properly prepared in accordance with the
Companies Act 2006.
In our opinion, based on the work undertaken in the course of
the audit:
– the information given in the strategic report and the directors’
report for the financial year for which the financial statements
are prepared is consistent with the financial statements; and
– the strategic report and the directors’ report have been
prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group
and of the Parent company and their environment obtained in
the course of the audit, we have not identified any material
misstatements in the strategic report or the directors’ report.
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Independent Auditor’s report continued
Report on the audit of the financial statements continued
202
13. Corporate governance statement
The Listing Rules require us to review the directors’ statement in
relation to going concern, longer-term viability and that part of
the corporate governance statement relating to the Group’s
compliance with the provisions of the UK Corporate
Governance Code specified for our review.
Based on the work undertaken as part of our audit, we have
concluded that each of the following elements of the Corporate
Governance Statement is materially consistent with the
financial statements and our knowledge obtained during the
audit:
– The directors’ statement with regards to the appropriateness
of adopting the going concern basis of accounting and any
material uncertainties identified set out on page 189;
– The directors’ explanation as to its assessment of the Group’s
prospects, the period this assessment covers and why the
period is appropriate is set out on page 81;
– The directors’ statement on fair, balanced and
understandable Annual Report set out on page 145;
– The board’s confirmation that it has carried out a robust
assessment of the emerging and principal risks set out on
pages 62 to 66;
– the section of the Annual Report that describes the review of
effectiveness of risk management and internal control
systems set out on page 142; and
– the section describing the work of the Audit & Risk committee
set out on page 139 to 145.
14. Matters on which we are required to report by
exception
Adequacy of explanations received and accounting
records
Under the Companies Act 2006 we are required to report to
you if, in our opinion:
– We have not received all the information and explanations
we require for our audit; or
– Adequate accounting records have not been kept by the
Parent company, or returns adequate for our audit have not
been received from branches not visited by us; or
– The Parent company financial statements are not in
agreement with the accounting records and returns.
We have nothing to report in respect of these matters.
Directors’ remuneration
Under the Companies Act 2006 we are also required to report if
in our opinion certain disclosures of directors’ remuneration
have not been made or the part of the directors’ remuneration
report to be audited is not in agreement with the accounting
records and returns.
We have nothing to report in respect of these matters.
15. Other matters which we are required to
address
Auditor tenure
Following the recommendation of the Audit & Risk Committee,
with effect from 1 January 2018 we were appointed by the
Board of Directors to audit the financial statements for the year
ended 31 December 2018 and subsequent financial periods. The
period of total uninterrupted engagement of the firm is seven
years.
Consistency of the audit report with the additional report
to the Audit & Risk Committee
Our audit opinion is consistent with the additional report to the
Audit & Risk Committee we are required to provide in
accordance with ISAs (UK).
16. Use of our report
This report is made solely to the Parent company’s members, as
a body, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006. Our audit work has been undertaken so
that we might state to the Parent company’s members those
matters we are required to state to them in an auditor’s report
and for no other purpose. To the fullest extent permitted by law,
we do not accept or assume responsibility to anyone other than
the Parent company and the Parent company’s members as a
body, for our audit work, for this report, or for the opinions we
have formed.
As required by the Financial Conduct Authority (FCA) Disclosure
Guidance and Transparency Rule (DTR) 4.1.15R-DTR 4.1.18R,
these financial statements will form part of the Electronic
Format Annual Financial Report filed on the National Storage
Mechanism of the FCA in accordance with DTR 4.1.15R-DTR
4.1.18R. This auditor's report provides no assurance over whether
the Electronic Format Annual Financial Report has been
prepared in compliance with DTR 4.1.15R-DTR 4.1.18R. We have
been engaged to provide assurance on whether the Electronic
Format Annual Financial Report has been prepared in
compliance with DTR 4.1.15R - DTR 4.1.18R and will publicly
report separately to the members on this.
The Parent company has passed a resolution in accordance
with section 506 of the Companies Act 2006 that the senior
statutory auditor’s name should not be stated.
Deloitte LLP
Statutory Auditor
London, United Kingdom
25 February 2025
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Independent Auditor’s report continued
Report on the audit of the financial statements continued
203
Notes
2024
£m
2023
£m
2022
£m
Turnover
6
31,376
30,328
29,324
Cost of sales
(9,048)
(8,565)
(9,554)
Gross profit
22,328
21,763
19,770
Selling, general and administration
(11,015)
(9,385)
(8,372)
Research and development
(6,401)
(6,223)
(5,488)
Royalty income
639
953
758
Other operating income/(expense)
7
(1,530)
(363)
(235)
Operating profit
8
4,021
6,745
6,433
Finance income
11
122
115
76
Finance expense
12
(669)
(792)
(879)
Share of after tax profit/(loss) of associates and joint ventures
13
(3)
(5)
(2)
Profit/(loss) on disposal of interests in associates and joint ventures
6
1
–
Profit before taxation
3,477
6,064
5,628
Taxation
14
(526)
(756)
(707)
Profit after taxation from continuing operations
2,951
5,308
4,921
Profit after taxation from discontinued operations and other gains/(losses) from the demerger
–
–
3,049
Re-measurement of discontinued operations distributed to shareholders on demerger
–
–
7,651
Profit after taxation from discontinued operations
–
–
10,700
Total profit after taxation for the year
2,951
5,308
15,621
Profit attributable to non-controlling interests from continuing operations
376
380
460
Profit attributable to shareholders from continuing operations
2,575
4,928
4,461
Profit attributable to non-controlling interests from discontinued operations
–
–
205
Profit attributable to shareholders from discontinued operations
–
–
10,495
2,951
5,308
15,621
Total profit attributable to non-controlling interests
376
380
665
Total profit attributable to shareholders
2,575
4,928
14,956
2,951
5,308
15,621
Basic earnings per share (pence) from continuing operations
15
63.2
121.6
110.8
Basic earnings per share (pence) from discontinued operations
–
–
260.6
Total basic earnings per share (pence)
63.2
121.6
371.4
Diluted earnings per share (pence) from continued operations
15
62.2
119.9
109.2
Diluted earnings per share (pence) from discontinued operations
–
–
257.0
Total diluted earnings per share (pence)
62.2
119.9
366.2
Consolidated statement of comprehensive income
for the year ended 31 December 2024
Notes
2024
£m
2023
£m
2022
£m
Total profit for the year
2,951
5,308
15,621
Other comprehensive income/(expense) for the year
Items that may be reclassified subsequently to continuing operations income statement:
Exchange movements on overseas net assets and net investment hedges
38
(392)
(22)
113
Reclassification of exchange movements on liquidation or disposal of overseas subsidiaries
and associates
38
(87)
(34)
2
Fair value movements on cash flow hedges
–
(1)
(18)
Deferred tax on fair value movements on cash flow hedges
1
1
9
Cost of hedging
(4)
–
–
Reclassification of cash flow hedges to income statement
4
4
14
(478)
(52)
120
Items that will not be reclassified to continuing operations income statement:
Exchange movements on overseas net assets of non-controlling interests
38
(4)
(25)
(28)
Fair value movements on equity investments
(100)
(244)
(754)
Tax on fair value movements on equity investments
17
14
56
Fair value movements on cash flow hedges
8
(40)
(6)
Remeasurement gains/(losses) on defined benefit plans
506
71
(786)
Tax on remeasurement losses/(gains) on defined benefit plans
(122)
(41)
211
305
(265)
(1,307)
Other comprehensive income /(expense) for the year from continuing operations
38
(173)
(317)
(1,187)
Other comprehensive income for the year from discontinued operations
–
–
356
Total comprehensive income for the year
2,778
4,991
14,790
Total comprehensive income for the year attributable to:
Shareholders
2,406
4,636
14,153
Non-controlling interests
372
355
637
Total comprehensive income for the year
2,778
4,991
14,790
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Consolidated income statement
for the year ended 31 December 2024
204
Notes
2024
£m
2023
£m
Assets
Non-current assets
Property, plant and equipment
17
9,227
9,020
Right of use assets
18
846
937
Goodwill
19
6,982
6,811
Other intangible assets
20
15,515
14,768
Investments in associates and joint ventures
21
96
55
Other investments
23
1,100
1,137
Deferred tax assets
14
6,757
6,049
Derivative financial instruments
44
1
–
Other non-current assets
24
1,942
1,584
Total non-current assets
42,466
40,361
Current assets
Inventories
25
5,669
5,498
Current tax recoverable
14
489
373
Trade and other receivables
26
6,836
7,385
Derivative financial instruments
44
109
130
Current equity investments
22
–
2,204
Liquid investments
30
21
42
Cash and cash equivalents
27
3,870
2,936
Assets held for sale
28
3
76
Total current assets
16,997
18,644
Total assets
59,463
59,005
Liabilities
Current liabilities
Short-term borrowings
30
(2,349)
(2,813)
Contingent consideration liabilities
33
(1,172)
(1,053)
Trade and other payables
29
(15,335)
(15,844)
Derivative financial instruments
44
(192)
(114)
Current tax payable
14
(703)
(500)
Short-term provisions
32
(1,946)
(744)
Total current liabilities
(21,697)
(21,068)
Non-current liabilities
Long-term borrowings
30
(14,637)
(15,205)
Corporation tax payable
14
–
(75)
Deferred tax liabilities
14
(382)
(311)
Pensions and other post-employment benefits
31
(1,864)
(2,340)
Other provisions
32
(589)
(495)
Contingent consideration liabilities
33
(6,108)
(5,609)
Other non-current liabilities
34
(1,100)
(1,107)
Total non-current liabilities
(24,680)
(25,142)
Total liabilities
(46,377)
(46,210)
Net assets
13,086
12,795
Equity
Share capital
37
1,348
1,348
Share premium account
37
3,473
3,451
Retained earnings
38
7,796
7,239
Other reserves
38
1,054
1,309
Shareholders’ equity
13,671
13,347
Non-controlling interests
(585)
(552)
Total equity
13,086
12,795
The financial statements on pages 204 to 290 were approved by the Board on 25 February 2025 and signed on its behalf by
Sir Jonathan Symonds
Chair
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Consolidated balance sheet
for the year ended 31 December 2024
205
Shareholders’ equity
Share
capital
£m
Share
premium
£m
Retained
earnings
£m
Other
reserves*
£m
Total
£m
Non-controlling
interests
£m
Total
equity
£m
At 31 December 2021
1,347
3,301
7,944
2,463
15,055
6,287
21,342
Profit for the year
–
–
14,956
–
14,956
665
15,621
Other comprehensive income/(expense) for the year
–
–
(89)
(714)
(803)
(28)
(831)
Total comprehensive income/(expense) for the year
–
–
14,867
(714)
14,153
637
14,790
Distributions to non-controlling interests
–
–
–
–
–
(1,409)
(1,409)
Non-cash distribution to non-controlling interests
–
–
–
–
–
(2,960)
(2,960)
Contributions from non-controlling interests
–
–
–
–
–
8
8
Changes to non-controlling interests
–
–
–
–
–
(20)
(20)
Deconsolidation of former subsidiaries
–
–
–
–
–
(3,045)
(3,045)
Dividends to shareholders
–
–
(3,467)
–
(3,467)
–
(3,467)
Non-cash dividend to shareholders
–
–
(15,526)
–
(15,526)
–
(15,526)
Realised after tax profit/(losses) on disposal or liquidation of
equity investments
–
–
14
(14)
–
–
–
Share of associates and joint ventures realised
profits/(losses) on disposal of equity investments
–
–
7
(7)
–
–
–
Shares issued
–
25
–
–
25
–
25
Write-down of shares held by ESOP Trusts
–
–
(911)
911
–
–
–
Shares acquired by ESOP Trusts
–
114
1,086
(1,200)
–
–
–
Share-based incentive plans
–
–
357
–
357
–
357
Tax on share-based incentive plans
–
–
(8)
–
(8)
–
(8)
Hedging gain after taxation transferred to
non-financial assets
–
–
–
9
9
–
9
At 31 December 2022
1,347
3,440
4,363
1,448
10,598
(502)
10,096
Profit for the year
–
–
4,928
–
4,928
380
5,308
Other comprehensive income/(expense) for the year
–
–
(45)
(247)
(292)
(25)
(317)
Total comprehensive income/(expense) for the year
–
–
4,883
(247)
4,636
355
4,991
Distributions to non-controlling interests
–
–
–
–
–
(412)
(412)
Contributions from non-controlling interests
–
–
–
–
–
7
7
Dividends to shareholders
–
–
(2,247)
–
(2,247)
–
(2,247)
Realised after tax profit/(losses) on disposal or liquidation of
equity investments
–
–
(26)
26
–
–
–
Share of associates and joint ventures realised
profits/(losses) on disposal of equity investments
–
–
(7)
7
–
–
–
Shares issued
1
9
–
–
10
–
10
Write-down of shares held by ESOP Trusts
–
–
(324)
324
–
–
–
Shares acquired by ESOP Trusts
–
2
283
(285)
–
–
–
Share-based incentive plans
–
–
307
–
307
–
307
Hedging gain after taxation transferred to
non-financial assets
–
–
–
36
36
–
36
Tax on share-based incentive plans
–
–
7
–
7
–
7
At 31 December 2023
1,348
3,451
7,239
1,309
13,347
(552)
12,795
Profit for the year
–
–
2,575
–
2,575
376
2,951
Other comprehensive income/(expense) for the year
–
–
(83)
(86)
(169)
(4)
(173)
Total comprehensive income/(expense) for the year
–
–
2,492
(86)
2,406
372
2,778
Distributions to non-controlling interests
–
–
–
–
–
(416)
(416)
Contributions from non-controlling interests
–
–
–
–
–
9
9
Changes to non-controlling interests
–
–
–
–
–
4
4
Dividends to shareholders
–
–
(2,444)
–
(2,444)
–
(2,444)
Deconsolidation of former subsidiary
–
–
–
–
–
(2)
(2)
Realised after tax profit/(losses) on disposal or liquidation of
equity investments
–
–
14
(14)
–
–
–
Share of associates and joint ventures realised
profits/(losses) on disposal of equity investments
–
–
52
(52)
–
–
–
Shares issued
–
20
–
–
20
–
20
Write-down of shares held by ESOP Trusts
–
–
(362)
362
–
–
–
Shares acquired by ESOP Trusts
–
2
457
(459)
–
–
–
Share-based incentive plans
–
–
344
–
344
–
344
Hedging gain/(loss) after taxation transferred to
non-financial assets
–
–
–
(6)
(6)
–
(6)
Tax on share-based incentive plans
–
–
4
–
4
–
4
At 31 December 2024
1,348
3,473
7,796
1,054
13,671
(585)
13,086
*
An analysis of Other reserves is presented as part of Note 38, ‘Movements in equity’.
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Consolidated statement of changes in equity
for the year ended 31 December 2024
206
Notes
2024
£m
2023
£m
2022
£m
Cash flow from operating activities
Profit after taxation from continuing operations for the year
2,951
5,308
4,921
Adjustments reconciling profit after tax to operating cash flows
42
4,910
2,788
3,023
Cash generated from operations attributable to continuing operations
7,861
8,096
7,944
Taxation paid
(1,307)
(1,328)
(1,310)
Net cash inflow/(outflow) from continuing operating activities
6,554
6,768
6,634
Cash generated from operations attributable to discontinued operations
–
–
932
Taxation paid from discontinued operations
–
–
(163)
Net operating cash flows attributable to discontinued operations
–
–
769
Total net cash inflow/(outflow) from operating activities
6,554
6,768
7,403
Cash flow from investing activities
Purchase of property, plant and equipment
(1,399)
(1,314)
(1,143)
Proceeds from sale of property, plant and equipment
65
28
146
Purchase of intangible assets
(1,583)
(1,030)
(1,115)
Proceeds from sale of intangible assets
131
12
196
Purchase of equity investments
(103)
(123)
(143)
(Increase)/decrease in liquid investments
21
72
1
Purchase of businesses, net of cash acquired
41
(805)
(1,457)
(3,108)
Proceeds from sale of equity investments
2,356
1,832
238
Share transactions with non-controlling interests
(1)
–
–
Contingent consideration paid
(19)
(11)
(79)
Disposal of businesses
41
(18)
49
(43)
Investments in joint ventures and associates
(43)
–
(1)
Proceeds from disposal of associates and joint ventures
–
1
–
Interest received
138
115
64
Dividend and distributions from investments
16
220
–
Dividends from joint ventures and associates
15
11
6
Net cash inflow/(outflow) from continuing investing activities
(1,229)
(1,595)
(4,981)
Net investing cash flows attributable to discontinued operations
–
–
(3,791)
Total net cash inflow/(outflow) from investing activities
(1,229)
(1,595)
(8,772)
Cash flow from financing activities
Issue of share capital
37
20
10
25
Repayment of long-term loans (1)
(1,615)
(2,260)
(6,668)
Issue of long-term notes
1,075
223
1,025
Net increase/(decrease) in short-term loans
(811)
(333)
1,021
Increase in other short-term loans (1)
266
–
–
Repayment of other short-term loans (1)
(81)
–
–
Repayment of lease liabilities
(226)
(197)
(202)
Interest paid
(632)
(766)
(848)
Dividends paid to shareholders
(2,444)
(2,247)
(3,467)
Distributions to non-controlling interests
(416)
(412)
(521)
Contributions from non-controlling interests
9
7
8
Other financing items
129
334
376
Net cash inflow/(outflow) from continuing financing activities
(4,726)
(5,641)
(9,251)
Net financing cash flows attributable to discontinued operations
–
–
10,074
Total net cash inflow/(outflow) from financing activities
(4,726)
(5,641)
823
Increase/(decrease) in cash and bank overdrafts
43
599
(468)
(546)
Cash and bank overdrafts at the beginning of year
2,858
3,425
3,819
Exchange adjustments
(54)
(99)
152
Increase/(decrease) in cash and bank overdrafts in the year
599
(468)
(546)
Cash and bank overdrafts at the end of year
3,403
2,858
3,425
Cash and bank overdrafts at end of year comprise:
Cash and cash equivalents
3,870
2,936
3,723
Overdrafts
(467)
(78)
(298)
3,403
2,858
3,425
(1) In 2024, there was a change in the presentation of cash flows from long-term and other short-term loans. For further information see Note 43
'Reconciliation of net cash flow to movement in net debt'.
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Consolidated cash flow statement
for the year ended 31 December 2024
207
1. Presentation of the financial statements
Description of business
GSK is a global biopharma group which prevents and treats
disease with specialty medicines, vaccines and general
medicines. GSK focuses on the science of the immune system
and advanced technologies, investing in four core therapeutic
areas: respiratory, immunology and inflammation; oncology;
HIV; and infectious diseases.
Compliance with applicable law and IFRS
The consolidated financial statements have been prepared in
accordance with UK-adopted international accounting
standards in conformity with the requirements of the
Companies Act 2006 and the International Financial Reporting
Standards as issued by the IASB ("IFRS Accounting Standards").
Composition of the consolidated financial
statements
The consolidated financial statements are for the Group
consisting of GSK plc and its subsidiaries. The consolidated
financial statements are drawn up in Sterling, the functional
currency of GSK plc, and in accordance with the presentation
requirements of IFRS Accounting Standards. The consolidated
financial statements comprise:
– Consolidated income statement
– Consolidated statement of comprehensive income
– Consolidated balance sheet
– Consolidated statement of changes in equity
– Consolidated cash flow statement
– Notes to the financial statements.
Composition of the Group
A list of the subsidiaries and associates which, in the opinion of
the Directors, principally affected the amount of profit or net
assets of the Group is given in Note 46, ‘Principal Group
companies’.
Financial period
These consolidated financial statements cover the financial
year from 1 January to 31 December 2024, with comparative
figures for the financial years from 1 January to 31 December
2023 and, where appropriate, from 1 January to 31 December
2022.
Accounting principles and policies
The Directors have, at the time of approving the consolidated
financial statements, a reasonable expectation that the Group
has adequate resources to continue in operational existence for
the foreseeable future. Thus, the financial statements have
been prepared on a going concern basis and using the
historical cost convention modified by the revaluation of certain
items, as stated in the accounting policies.
The consolidated financial statements have been prepared in
accordance with the Group’s accounting policies approved by
the Board as described in Note 2, ‘Accounting principles and
policies’. Information on the application of these accounting
policies, including areas of estimation and judgement is given in
Note 3, ‘Critical accounting judgements and key sources of
estimation uncertainty’.
The preparation of the consolidated financial statements in
conformity with generally accepted accounting principles
requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
consolidated financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual
results could differ from those estimates.
In preparing the consolidated financial statements, the Group
has evaluated the potential effects of both physical and
transitional climate change risks, along with planned mitigation
efforts, on the valuation of assets and liabilities; with
consideration of the risks outlined in the Task Force on Climate-
related Financial Disclosures (TCFD).
As of 31 December 2024, the Group has determined that
climate-related risks do not have a material impact on the
significant judgements and estimates and, as a result, the
valuation of the assets or liabilities have not been impacted.
The Group has reviewed the recoverable values of key assets
impacted such as property, plant, and equipment, inventories,
goodwill, and intangible assets given their potential exposure to
climate-related risks, as well as the Group’s planned transition
efforts.
Among the risks identified is the impact on metered dose
inhalers (MDI). The Group is mitigating this risk by transitioning
to a lower-carbon propellant. This transition is not anticipated
to materially affect the recoverable amounts, or estimated
useful lives, of related property, plant, and equipment.
Additional information can be found in Note 17 'Property, plant,
and equipment'.
While the Group does not foresee any significant medium-term
impact at present, it remains aware of the evolving nature of
climate-related risks. The Group continues to evaluate the
implications on judgements and estimates, as well as on any
potential effects on the preparation of the consolidated
financial statements.
Parent company financial statements
The financial statements of the parent company, GSK plc, have
been prepared in accordance with FRS 101 ‘Reduced Disclosure
Framework’ and the Companies Act 2006. The company
balance sheet is presented on page 291 and the accounting
policies are given on pages 292 to 299.
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Notes to the financial statements
208
2. Accounting principles and policies
Consolidation
The consolidated financial statements include:
– the assets and liabilities, and the results and cash flows, of
the Company and its subsidiaries, including ESOP Trusts;
– the Group’s share of the results and net assets of associates
and joint ventures; and
– the Group’s share of assets, liabilities, revenue and expenses
of joint operations.
The financial statements of entities consolidated are made up
to 31 December each year.
Entities over which the Group has control are accounted for as
subsidiaries and consolidated in the Group financial
statements. Control is achieved when an entity in the Group:
– has power over the investee;
– is exposed, or has rights, to variable returns from its
involvement with the investee; and
– has the ability to use its power to affect its returns.
This is generally through control over the financial and
operating policies of the subsidiary.
Where the Group has the ability to exercise joint control over,
and rights to, the net assets of entities, the entities are
accounted for as joint ventures. Where the Group has the ability
to exercise joint control over an arrangement, but has rights to
specified assets and obligations for specified liabilities of the
arrangement, the arrangement is accounted for as a joint
operation. Where the Group has the ability to exercise
significant influence over entities, they are accounted for as
associates. The results, assets and liabilities of associates and
joint ventures are incorporated into the consolidated financial
statements using the equity method of accounting. The assets,
liabilities, revenue and expenses of joint operations are included
in the consolidated financial statements in accordance with the
Group’s rights and obligations. Interests acquired in entities are
consolidated from the date the Group acquires control and
interests sold are de-consolidated from the date control ceases.
Transactions and balances between subsidiaries are eliminated
and no profit before tax is taken on sales between subsidiaries
until the products are sold to customers outside the Group. The
relevant proportion of profits on transactions with joint ventures,
joint operations and associates is also deferred until the
products are sold to third parties. Transactions with non-
controlling interests are recorded directly in equity. Deferred tax
relief on unrealised intra-Group profit is accounted for only to
the extent that it is considered recoverable.
Business combinations
Business combinations are accounted for using the acquisition
accounting method. Identifiable assets, liabilities and
contingent liabilities acquired are measured at fair value at
acquisition date. The consideration transferred is measured at
fair value and includes the fair value of any contingent
consideration.
The fair value of contingent consideration liabilities is
reassessed at each balance sheet date with changes
recognised in the income statement. Payments of contingent
consideration reduce the balance sheet liability and as a result
are not recorded in the income statement.
The part of each payment relating to the original estimate of
the fair value of the contingent consideration on acquisition is
reported within investing activities in the cash flow statement
and the part of each payment relating to the increase in the
liability since the acquisition date is reported within operating
cash flows.
Where fair value of the consideration transferred, together with
the non-controlling interest, exceeds the fair value of the assets,
liabilities and contingent liabilities acquired, the excess is
recorded as goodwill. The costs of effecting an acquisition are
charged to the income statement in the period in which they
are incurred.
Goodwill is capitalised as a separate item in the case of
subsidiaries and as part of the cost of investment in the case of
joint ventures and associates. Goodwill is denominated in the
currency of the operation acquired.
Where fair value of the consideration transferred is below the
Group’s interest in the net assets acquired, the difference is
recognised directly in the income statement.
Where not all of the equity of a subsidiary is acquired the non-
controlling interest is recognised either at fair value or at the
non-controlling interest’s share of the net assets of the
subsidiary, on a case-by-case basis. Changes in the Group’s
ownership percentage of subsidiaries are accounted for within
equity.
Foreign currency translation
Foreign currency transactions are booked in the functional
currency of the Group company at the exchange rate ruling on
the date of transaction. Foreign currency monetary assets and
liabilities are retranslated into the functional currency at rates of
exchange ruling at the balance sheet date. Exchange
differences are included in the income statement.
On consolidation, assets and liabilities, including related
goodwill, of overseas subsidiaries, associates and joint ventures,
are translated into Sterling at rates of exchange ruling at the
balance sheet date. The results and cash flows of overseas
subsidiaries, associates and joint ventures are translated into
Sterling using average rates of exchange.
Exchange adjustments arising when the opening net assets and
the profits for the year retained by overseas subsidiaries,
associates and joint ventures are translated into Sterling, less
exchange differences arising on related foreign currency
borrowings which hedge the Group’s net investment in these
operations, are taken to a separate component of equity within
retained earnings.
When translating into Sterling the assets, liabilities, results and
cash flows of overseas subsidiaries, associates and joint
ventures which are reported in currencies of hyper-inflationary
economies, adjustments are made where material to reflect
current price levels. Any gain or loss on net monetary position is
charged to the consolidated income statement.
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Notes to the financial statements continued
209
2. Accounting principles and policies continued
Revenue
Turnover
The Group receives revenue for supply of goods to external
customers against orders received. The majority of contracts
that GSK enters into relate to sales orders containing single
performance obligations for the delivery of pharmaceutical and
vaccine products. The average duration of a sales order is less
than 12 months so there is no significant element of financing.
Revenue from the product sales is recognised when control of
the goods is passed to the customer. The point at which control
passes is determined by each customer arrangement, but
generally occurs on delivery to the customer.
Revenue from the product sales represents net invoice value
including fixed and variable consideration. Variable
consideration arises on the sale of goods as a result of
discounts and allowances given and accruals for estimated
future returns and rebates. Revenue is not recognised in full until
it is highly probable that a significant reversal in the amount of
cumulative revenue recognised will not occur. The methodology
and assumptions used to estimate rebates and returns are
monitored and adjusted regularly in the light of contractual and
legal obligations, historical trends, past experience and
projected market conditions. Estimates associated with returns
and rebates are revisited at each reporting date or when they
are resolved and revenue is adjusted accordingly. Please refer
to Note 3, 'Critical accounting judgements and key sources of
estimation uncertainty' for the details on rebates, discounts and
allowances.
The Group has entered into collaboration agreements, typically
with other pharmaceutical or biotechnology companies to
develop, produce and market medicines and vaccines that do
not qualify as joint arrangements. When GSK has control over
the commercialisation activities, the Group recognises turnover
and cost of sales on a gross basis. Profit sharing amounts and
royalties due to the counterparty are recorded within cost of
sales. Cost of sales includes cost of £7 million (2023: net
recoveries of cost of £45 million; 2022: cost of £1,635 million)
from profit sharing arrangements and royalties due to the
counterparty. When the counterparty controls the
commercialisation activities and records the sale, the Group is
not the principal in the customer contract and instead records
its share of gross profit as co-promotion income, on a net basis,
within turnover. The nature of co-promotion activities is such
that the Group records no costs of sales. Commercial
Operations turnover includes co-promotion revenue of £1 million
(2023: £1 million; 2022: £3 million). Reimbursements to and from
the counterparty under collaboration agreements for ‘selling,
general and administration’ and ‘research and development’
costs are recorded net in the respective lines in the income
statement.
Other operating income and royalty income
GSK enters into development and marketing collaborations and
out-licences of the Group’s compounds or products to other
parties. These contracts give rise to fixed and variable
consideration from upfront payments, development milestones,
sales-based milestones and royalties.
Income dependent on the achievement of a development
milestone is recognised when it is highly probable that a
significant reversal in the amount of cumulative revenue
recognised will not occur, which is usually when the related
event occurs. Sales-based milestone income is recognised when
it is highly probable that the sales threshold will be reached.
Sales-based royalties on a licence of intellectual property are
not recognised until the relevant product sale occurs.
For all revenue, if the time between the recognition of revenue
and payment from the customer is expected to be more than
one year and the impact is material, the amount of
consideration is discounted using appropriate discount rates.
Value added tax and other sales taxes are excluded from
revenue.
Expenditure
Expenditure is recognised in respect of goods and services
received when supplied in accordance with contractual terms.
Provision is made when an obligation exists for a future liability
in respect of a past event and where the amount of the
obligation can be reliably estimated.
Manufacturing start-up costs between validation and the
achievement of normal production are expensed as incurred.
Advertising and promotion expenditure is charged to the
income statement as incurred.
Shipment costs on inter-company transfers are charged to cost
of sales; distribution costs on sales to customers are included in
selling, general and administration expenditure.
Restructuring costs are recognised and provided for, where
appropriate, in respect of the direct expenditure of a business
reorganisation where the plans are sufficiently detailed and well
advanced, and where appropriate communication to those
affected has been undertaken.
Software as a service (SaaS) configuration costs are expensed
as they are incurred where the software being configured is
controlled by the SaaS provider.
Research and development
Research and development expenditure is charged to the
income statement in the period in which it is incurred.
Development expenditure is capitalised when the criteria for
recognising an asset are met, usually when a regulatory filing
has been made in a major market and approval is considered
highly probable. Property, plant and equipment used for
research and development is capitalised and depreciated in
accordance with the Group’s policy.
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Notes to the financial statements continued
210
2. Accounting principles and policies continued
Legal and other disputes
Provision is made for the anticipated settlement costs of legal
or other disputes against the Group where an outflow of
resources is considered probable and a reliable estimate can
be made of the likely outcome. In respect of product liability
claims related to certain products, provision is made when there
is sufficient history of claims made and settlements to enable
management to make a reliable estimate of the provision
required to cover asserted and unasserted claims.
In certain cases, an incurred but not reported (IBNR) actuarial
technique is used to determine this estimate. In addition,
provision is made for legal or other expenses arising from claims
received or other disputes.
The Group may become involved in legal proceedings, in
respect of which it is not possible to meaningfully assess
whether the outcome will result in a probable outflow, or to
quantify or reliably estimate the liability. In these cases,
appropriate disclosure about such cases is included but no
provision is made.
Costs associated with claims made by the Group against third
parties are charged to the income statement as they are
incurred.
Pensions and other post-employment benefits
The costs of providing pensions under defined benefit schemes
are calculated using the projected unit credit method and
spread over the period during which benefit is expected to be
derived from the employees’ services, consistent with the advice
of qualified actuaries.
Pension obligations are measured as the present value of
estimated future cash flows discounted at rates reflecting the
yields of high-quality corporate bonds. Pension scheme assets
are measured at fair value at the balance sheet date.
The costs of other post-employment liabilities are calculated in
a similar way to defined benefit pension schemes and spread
over the period during which benefit is expected to be derived
from the employees’ services, in accordance with the advice of
qualified actuaries.
The service cost of providing retirement benefits to employees
during the year, together with the cost of any curtailment, is
charged to operating profit in the year.
Actuarial gains and losses and the effect of changes in
actuarial assumptions are recognised in the statement of
comprehensive income in the year in which they arise.
The Group’s contributions to defined contribution plans are
charged to the income statement as incurred.
Employee share plans
Incentives in the form of shares are provided to employees
under share option and share award schemes.
The fair values of these options and awards are calculated at
their grant dates using a Black-Scholes option pricing model
and charged to the income statement over the relevant vesting
periods.
The Group provides finance to ESOP Trusts to purchase
company shares to meet the obligation to provide shares when
employees exercise their options or awards. Costs of running the
ESOP Trusts are charged to the income statement.
Shares held by the ESOP Trusts are deducted from other
reserves. A transfer is made between other reserves and
retained earnings over the vesting periods of the related share
options or awards to reflect the ultimate proceeds receivable
from employees on exercise.
Property, plant and equipment
Property, plant and equipment (PP&E) is stated at the cost of
purchase or construction, less accumulated depreciation and
accumulated impairment. Financing costs are capitalised within
the cost of qualifying assets in construction.
Depreciation is calculated to write off the cost less residual
value of PP&E, excluding freehold land and assets under
construction, using the straight-line basis over the expected
useful life. Residual values and expected useful lives are
reviewed, and where appropriate adjusted annually. The
normal expected useful lives of the major categories of PP&E
are:
Freehold buildings
20 to 50 years
Leasehold land and buildings
Lease term or 20 to 50 years
Plant and machinery
10 to 20 years
Equipment and vehicles
3 to 10 years
On disposal of PP&E, the cost and related accumulated
depreciation and impairments are removed from the financial
statements and the net amount, less any proceeds, is taken to
the income statement.
Leases
The Group recognises right of use assets under lease
arrangements in which it is the lessee, except for short-term
leases (defined as leases with a lease term of 12 months or less)
and leases of low value assets. Rights to use assets owned by
third parties under lease agreements are capitalised at the
inception of the lease and recognised on the balance sheet.
Right of use assets are initially measured at the amount of the
corresponding lease liability plus lease payments made at or
before the commencement day, initial incremental direct costs,
asset retirement obligations and less any lease incentives
received. They are subsequently measured at cost less
accumulated depreciation and impairment losses.
The corresponding liability to the lessor is recognised as a lease
obligation within short and long-term borrowings. The lease
liability is initially measured at the discounted present value of
the lease payments that are not paid at the commencement
date. The carrying amount of the lease liability is subsequently
increased to reflect interest on the liability and reduced by lease
payments made.
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Notes to the financial statements continued
211
2. Accounting principles and policies continued
For calculating the discounted lease liability on leases with
annual payments of £2 million or more, or a non-cancellable
term of more than 10 years, the implicit rate in the lease is used.
If this is not available, the incremental borrowing rate with a
lease specific adjustment is used. If neither of these is available,
and for leases with annual payments of less than £2 million, or a
non-cancellable term of 10 years or less, the incremental
borrowing rate is used. The incremental borrowing rate is the
rate of interest at which GSK would have been able to borrow
for a similar term and with a similar security the funds necessary
to obtain a similar asset in a similar market.
Finance costs are charged to the income statement so as to
produce a constant periodic rate of charge on the remaining
balance of the obligations for each accounting period.
Variable rents which are not linked to an index or a rate are not
part of the lease liability and the right of use asset. These
payments are charged to the income statement as incurred.
Lease rental costs for short-term and low-value leases which
are not capitalised are also charged to the income statement
as incurred.
Non-lease components are accounted for separately from the
lease components in plant and equipment leases. For land and
buildings or vehicle leases the lease and non-lease components
are accounted for together in the lease when the non-lease
components can be reliably determined in advance and are
charged directly by the lessor.
If modifications or reassessments of lease obligations occur, the
lease liability and right of use asset are remeasured.
Right of use assets where title is expected to pass to GSK at a
point in the future are depreciated on a basis consistent with
similar owned assets. In other cases, right of use assets are
depreciated over the shorter of the useful life of the asset or the
lease term.
Goodwill
Goodwill is stated at cost less accumulated impairments.
Goodwill is deemed to have an indefinite useful life and is
tested for impairment at least annually.
Where the fair value of the interest acquired in an entity’s
assets, liabilities and contingent liabilities exceeds the
consideration paid, this excess is recognised immediately as a
gain in the income statement.
Other intangible assets
Intangible assets have a finite life and are stated at cost less
accumulated amortisation and accumulated impairments.
Licences, patents, know-how and marketing rights separately
acquired or acquired as part of a business combination are
amortised over their estimated useful lives, generally not
exceeding 30 years, using the straight-line basis, from the time
they are available for use. The estimated useful lives for
determining the amortisation charge take into account patent
lives (exclusivity period), where applicable, as well as the value
obtained from periods of non-exclusivity. For Pharmaceutical
intangible assets, depending on the characteristics, competitive
environment and estimated long-term profits of the asset,
between 80% to 90% of the book value is amortised over the
exclusivity period on a straight-line basis and the remaining
book value is amortised over a non-exclusivity period of 5-15
years on a straight-line basis. For Vaccines intangible assets,
cost is usually amortised over the patent period plus 10 years, or
30 years if no patent is granted, on a straight-line basis. Asset
lives are reviewed, and where appropriate adjusted, annually.
Contingent milestone payments are recognised at the point
that the contingent event becomes probable. Any development
costs incurred by the Group subsequent to the acquisition of
licences, patents, know-how or marketing rights are written off
to the income statement when incurred, unless the criteria for
recognition of an internally generated intangible asset are met,
usually when a regulatory filing has been made in a major
market and approval is considered highly probable.
Acquired in process R&D and marketed products are valued
independently as part of the fair value of businesses acquired
from third parties where they have a value which is substantial
and long term and where the assets either are contractual or
legal in nature or can be sold separately from the rest of the
businesses acquired.
The costs of acquiring and developing computer software for
internal use are capitalised as other intangible assets where the
software supports a significant business system and the
expenditure leads to the creation of a durable asset controlled
by the Group. ERP systems software is amortised over 7-10 years
and other computer software over 2-5 years using the straight-
line basis.
The Group capitalises certain implementation costs related to
cloud computing arrangements when it has control over the
underlying software.
Impairment of non-current assets
The carrying amounts of all non-current assets are reviewed for
impairment, either on a stand-alone basis or as part of a larger
cash generating unit, when there is an indication that the assets
might be impaired. Additionally, goodwill and intangible assets
which are not yet available for use are tested for impairment
annually. Any provision for impairment is charged to the income
statement in the year concerned.
Impairments of goodwill are not reversed. Impairment losses on
other non-current assets are only reversed if there has been a
change in estimates used to determine recoverable amounts
and only to the extent that the revised recoverable amounts do
not exceed the carrying amounts that would have existed, net
of depreciation or amortisation, had no impairments been
recognised.
Investments in associates, joint ventures and
joint operations
Investments in associates and joint ventures are carried in the
consolidated balance sheet at the Group’s share of their net
assets at date of acquisition and of their post-acquisition
retained profits or losses and other comprehensive income
together with any goodwill arising on the acquisition. The Group
recognises the assets, liabilities, revenue and expenses of joint
operations in accordance with its rights and obligations.
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2. Accounting principles and policies continued
Inventories
Inventories are included in the consolidated financial
statements at the lower of cost (including raw materials, direct
labour, other direct costs and related production overheads)
and net realisable value. Cost is generally determined on a first
in, first out basis. Pre-launch inventory is held as an asset when
there is a high probability of regulatory approval for the
product. Before that point a provision is made against the
carrying amount to reduce it to its net realisable value; the
provision is then reversed at the point when a high probability of
regulatory approval is determined.
Financial instruments
Financial assets
Financial assets are measured at amortised cost, fair value
through other comprehensive income (FVTOCI) or fair value
through profit or loss (FVTPL). The measurement basis is
determined by reference to both the business model for
managing the financial asset and the contractual cash flow
characteristics of the financial asset. For financial assets other
than trade receivables a 12-month expected credit loss (ECL)
allowance is recorded on initial recognition. If there is
subsequent evidence of a significant increase in the credit risk
of an asset, the allowance is increased to reflect the full lifetime
ECL. If there is no realistic prospect of recovery, the asset is
written off.
Expected credit losses are recognised in the income statement
on financial assets measured at amortised cost and at fair
value through other comprehensive income apart from equity
investments.
Current equity investments
Current equity investments comprise equity investments which
the Group holds with the intention to sell and which it may sell in
the short term. Where acquired with this intention, they are
measured at FVTPL. They are initially recorded at fair value and
then remeasured at subsequent reporting dates to fair value.
Unrealised gains and losses are recognised in the income
statement. Dividend income is recognised in the income
statement when the Group’s right to receive payment is
established. Purchases and sales of current equity investments
are accounted for on the trade date.
Other investments
Other investments comprise equity investments and investments
in limited life funds. The Group has elected to designate the
majority of its equity investments as measured at FVTOCI. They
are initially recorded at fair value plus transaction costs and
then remeasured at subsequent reporting dates to fair value.
Unrealised gains and losses are recognised in other
comprehensive income. On disposal of the equity investment,
gains and losses that have been deferred in other
comprehensive income are transferred directly to retained
earnings.
Investments in limited life funds are measured at FVTPL. They
are initially recorded at fair value and then remeasured at
subsequent reporting dates to fair value. Unrealised gains and
losses are recognised in the income statement.
Dividends on equity investments and distributions from funds
are recognised in the income statement when the Group’s right
to receive payment is established.
Purchases and sales of Other investments are accounted for on
the trade date.
Trade receivables
Trade receivables are measured in accordance with the
business model under which each portfolio of trade receivables
is held. The Group has portfolios in each of the three business
models under IFRS 9: to collect the contractual cash flows
where there is no factoring agreement in place (measured at
amortised cost); to sell the contractual cash flows where the
trade receivables will be sold under a factoring agreement
(measured at FVTPL); and both to collect and to sell the
contractual cash flows where the trade receivables may be sold
under a factoring arrangement (measured at FVTOCI). Trade
receivables measured at amortised cost are carried at the
original invoice amount less allowances for expected credit
losses.
Expected credit losses are calculated in accordance with the
simplified approach permitted by IFRS 9, using a provision
matrix applying lifetime historical credit loss experience to the
trade receivables. The expected credit loss rate varies
depending on whether, and the extent to which, settlement of
the trade receivables is overdue and it is also adjusted as
appropriate to reflect current economic conditions and
estimates of future conditions. For the purpose of determining
credit loss rates, customers are classified into groupings that
have similar loss patterns. The key drivers of the loss rate are the
nature of the business unit and the location and type of
customer.
When a trade receivable is determined to have no reasonable
expectation of recovery it is written off, firstly against any
expected credit loss allowance available and then to the
income statement.
Subsequent recoveries of amounts previously provided for or
written off are credited to the income statement. Long-term
receivables are discounted where the effect is material.
Cash and cash equivalents
Cash comprises cash in hand and on-demand deposits at
bank.
Cash equivalents include cash in transit, deposits made with
banks or financial institutions with a maturity of three months or
less from the date of acquisition and are measured at
amortised cost. Investments in money market funds are held at
fair value through profit or loss because the funds fail the solely
payments of principal and interest on principal outstanding
(SPPI) test.
Borrowings
All borrowings are initially recorded at the amount of proceeds
received, net of transaction costs. Borrowings are subsequently
carried at amortised cost, with the difference between the
proceeds, net of transaction costs, and the amount due on
redemption being recognised as a charge to the income
statement over the period of the relevant borrowing.
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Notes to the financial statements continued
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2. Accounting principles and policies continued
Derivative financial instruments
Derivative financial instruments are used to manage exposure
to market risks. The principal derivative instruments used by GSK
are foreign currency swaps, interest rate swaps, foreign
exchange forward contracts and options. The Group does not
hold or issue derivative financial instruments for trading or
speculative purposes.
Derivative financial assets and liabilities, including derivatives
embedded in host contracts which have been separated from
the host contract, are measured at fair value. Changes in the
fair value of any derivative instruments that do not qualify for
hedge accounting are recognised immediately in the income
statement.
Hedge accounting
Derivatives designated as the hedging instruments are
classified at inception of the hedge relationship as cash flow
hedges, net investment hedges or fair value hedges.
Changes in the fair value of derivatives designated as cash flow
hedges are recognised in other comprehensive income to the
extent that the hedges are effective and accumulated in the
cash flow hedge reserve. Ineffective portions are recognised in
profit or loss immediately. Amounts deferred in the cash flow
hedge reserve are reclassified to the income statement when
the hedged item affects profit or loss, or if the hedged forecast
transaction is to purchase a non-financial asset, the amount
deferred in the cash flow hedge reserve is transferred directly
from equity and included in the carrying amount of the
recognised non-financial asset.
Net investment hedges are accounted for in a similar way to
cash flow hedges which are reclassified to the income
statement when the hedged item affects profit or loss.
Changes in the fair value of derivatives designated as fair value
hedges are recorded in the income statement, together with the
changes in the fair value of the hedged asset or liability.
Taxation
Current tax is provided at the amounts expected to be paid,
applying tax rates that have been enacted or substantively
enacted by the balance sheet date. The tax charge for the
period is recognised in the consolidated income statement, the
consolidated statement of comprehensive income or directly in
equity, according to the accounting treatment of the related
transaction.
Deferred tax is provided in full, using the liability method, on
temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the consolidated
financial statements. Deferred tax assets are recognised to the
extent that it is probable that future taxable profits will be
available against which the temporary differences can be
utilised. Deferred tax is provided on temporary differences
arising on investments in subsidiaries, associates and joint
ventures, except where the timing of the reversal of the
temporary difference can be controlled and it is probable that
the temporary difference will not reverse in the foreseeable
future. Deferred tax is provided using rates of tax that have
been enacted or substantively enacted by the balance sheet
date. Deferred tax assets and liabilities are offset when there is
a legally enforceable right to offset current tax assets against
current tax liabilities and when they relate to income taxes
levied by the same tax authority and the Company and its
subsidiaries intend to settle their current tax assets and liabilities
on a net basis.
Deferred tax assets and liabilities are not recognised if the
temporary differences arise from the initial recognition of
goodwill or from the initial recognition of other assets and
liabilities in a transaction (other than a business combination)
that affects neither the accounting nor the taxable profit or loss.
The exception to this is situations where there are equal taxable
and deductible temporary differences arising from the same
transaction. Unrecognised deferred tax assets are reassessed
at each reporting date and are recognised to the extent that it
has become probable that future taxable profits will allow the
deferred tax asset to be recovered.
Where an uncertain tax position is identified, management will
make a judgement as to what the probable outcome will be,
assuming the relevant tax authority has full knowledge of the
situation. Where it is assessed that an economic outflow is
probable to arise, a provision is made for the best estimate of
the liability. In estimating any such liability GSK applies a risk-
based approach which takes into account, as appropriate, the
probability that the Group would be able to obtain
compensatory adjustments under international tax treaties.
These estimates take into account the specific circumstances of
each dispute and relevant external advice.
Restructuring
Costs of restructuring arise from restructuring programmes that
are planned and controlled by the Group. A provision for
restructuring is recognised when there is a detailed formal plan
in place, and management has created a valid expectation by
separately announcing the main features of the plan to those
affected by it, or has started implementation.
Discounting
Where the time value of money is material, balances are
discounted to current values using appropriate discount rates.
The unwinding of the discounts is recorded in finance income
and finance expense.
Assets and liabilities held for sale or distribution
and discontinued operations
Non-current assets or disposal groups are classified as held for
sale or distribution if their carrying amount will be recovered
principally through sale or a distribution to shareholders rather
than through continuing use, they are available for sale or
distribution in their present condition and the sale or distribution
is considered highly probable. Assets held in Assets held for sale
or distribution are measured at the lower of their carrying
amount and fair value less costs to sell or distribute. Assets
included in Assets held for sale or distribution are not
depreciated or amortised. Assets and liabilities classified as
held for sale or distribution are presented in current assets and
current liabilities separately from the other assets and liabilities
in the balance sheet.
A discontinued operation is a component of the Group that has
been disposed of, distributed or is classified as held for sale or
distribution and that represents a separate major line of
business. The results of discontinued operations are presented
separately in the consolidated income statement, the
consolidated statement of comprehensive income and the
consolidated statement of cash flows and comparatives are
restated on a consistent basis.
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GSK Annual Report 2024
Notes to the financial statements continued
214
3. Critical accounting judgements and key sources of
estimation uncertainty
In preparing the financial statements, management is required
to make judgements about when or how items should be
recognised in the financial statements and estimates and
assumptions that affect the amounts of assets, liabilities,
revenue and expenses reported in the financial statements.
Actual amounts and results could differ from those estimates.
The following are considered to be the critical accounting
judgements and key sources of estimation uncertainty.
Turnover
Reported Group turnover for 2024 was £31,376 million (2023:
£30,328 million).
Estimates
Gross turnover is reduced by rebates, discounts, allowances and
product returns given or expected to be given, which vary by
product arrangements and buying groups. These arrangements
with purchasing organisations are dependent upon the
submission of claims some time after the initial recognition of
the sale. Accruals are made at the time of sale for the
estimated rebates, discounts or allowances payable or returns
to be made, based on available market information and
historical experience.
Sales of pharmaceutical and vaccine products in the US have
complex arrangements for rebates, discounts and allowances.
Turnover of Commercial Operations products in the US for 2024
of £16,384 million (2023: £15,820 million) was after recording
deductions of £14,100 million (2023: £16,539 million) for rebates,
allowances, returns and other discounts. At 31 December 2024,
the total accrual amounted to £5,235 million (2023: £5,951
million). Due to the nature of these accruals it is not practicable
to give meaningful sensitivity estimates due to the large volume
of variables that contribute to the overall rebates, chargebacks,
returns and other revenue accruals.
As there can be significant variability in final outcomes, the
Group applies a constraint when measuring the variable
element within revenue, so that revenue is recognised at a
suitably cautious amount. The objective of the constraint is to
ensure that it is highly probable that a significant reversal of
revenue will not occur when the uncertainties are resolved. The
constraint is applied by making suitably cautious estimates of
the inputs and assumptions used in estimating the variable
consideration. Because the amounts are estimated they may
not fully reflect the final outcome, and the amounts are subject
to change dependent upon, amongst other things, the types of
buying group and product sales mix. The constraints applied in
recognising revenue mean that the risk of a material downward
adjustment to revenue in the next financial year is low.
The level of accrual for rebates and returns is reviewed and
adjusted regularly in the light of contractual and legal
obligations, historical trends, past experience and projected
market conditions. Market conditions are evaluated using
wholesaler and other third-party analyses, market research
data and internally generated information. It is reasonably
possible that there could be a significant adjustment within the
next 12 months to recognise additional revenue, if actual
outcomes are better than the cautious constrained estimates.
Revenue is not recognised in full until it is highly probable that a
significant reversal in the amount of cumulative revenue
recognised will not occur. The amount of turnover recognised in
the year from performance obligations satisfied in previous
periods is set out in Note 6, ‘Turnover and segment information’,
and is an indication of the level of sensitivity in the estimate.
Future events could cause the assumptions on which the
accruals are based to change, which could materially affect the
future results of the Group.
Taxation
The tax charge for the year was £526 million (2023: £756
million). At 31 December 2024, current tax payable was £703
million (2023: £500 million), non-current corporation tax
payable was £nil million (2023: £75 million) and current tax
recoverable was £489 million (2023: £373 million).
Judgement and estimates
The Group has open tax issues with a number of revenue
authorities. Management makes a judgement of whether there
is sufficient information to be able to make a reliable estimate
of the outcome of the dispute. If insufficient information is
available, no provision is made.
If sufficient information is available, in estimating a potential tax
liability GSK applies a risk-based approach which takes into
account, as appropriate, the probability that the Group would
be able to obtain compensatory adjustments under
international tax treaties. These estimates take into account the
specific circumstances of each dispute and relevant external
advice, are inherently judgemental and could change
substantially over time as each dispute progresses and new
facts emerge.
At 31 December 2024, the Group had recognised provisions of
£636 million in respect of uncertain tax positions (2023: £584
million). Due to the number of uncertain tax positions held and
the number of jurisdictions to which these relate, it is not
practicable to give meaningful sensitivity estimates. No
uncertain tax position is individually material to the Group.
Factors affecting the tax charge in future years are set out in
Note 14, ‘Taxation’. GSK continues to believe that it has made
adequate provision for the liabilities likely to arise from open
assessments. Where open issues exist, the ultimate liability for
such matters may vary from the amounts provided and is
dependent upon the outcome of negotiations with the relevant
tax authorities or, if necessary, litigation proceedings.
Legal and other disputes
Legal costs for the year were £1,964 million (2023: £271 million).
At 31 December 2024 provisions for legal and other disputes
amounted to £1,446 million (2023: £267 million).
Judgement
Management makes a judgement of whether there is sufficient
information to be able to make a reliable estimate of the likely
outcome of the dispute and the legal and other expenses
arising from claims against the Group. If insufficient information
is available, no provision is made and disclosure of the claim is
given.
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GSK Annual Report 2024
Notes to the financial statements continued
215
3. Critical accounting judgements and key sources of estimation uncertainty continued
The estimated provisions take into account the specific
circumstances of each dispute and relevant external advice, are
inherently judgemental and could change substantially over
time as each dispute progresses and new facts emerge. Details
of the status and various uncertainties involved in the significant
unresolved disputes are set out in Note 47, ‘Legal proceedings’.
The company’s Directors, having taken legal advice, have
established provisions after taking into account the relevant
facts and circumstances of each matter and in accordance
with accounting requirements. In respect of product liability
claims related to certain products, there is sufficient history of
claims made and settlements to enable management to make
a reliable estimate of the provision required to cover unasserted
claims.
The Group may become involved in legal proceedings, in
respect of which it is not possible to meaningfully assess
whether the outcome will result in a probable outflow, or to
quantify or reliably estimate the liability. In these cases,
appropriate disclosure about such cases would be provided,
but no provision would be made and no contingent liability can
be quantified.
The ultimate liability for legal claims may vary from the amounts
provided and is dependent upon the outcome of litigation
proceedings, investigations and possible settlement
negotiations. The position could change over time and,
therefore, there can be no assurance that any losses that result
from the outcome of any legal proceedings will not exceed the
amount of the provisions reported in the Group’s financial
statements by a material amount.
Contingent consideration
The 2024 income statement charge for contingent
consideration was £1,762 million (2023: £768 million).
At 31 December 2024, the liability for contingent consideration
amounted to £7,280 million (2023: £6,662 million). Of this
amount, £6,061 million (2023: £5,718 million) related to the
acquisition of the former Shionogi-ViiV Healthcare joint venture
in 2012.
Estimates
Any contingent consideration included in the consideration
payable for a business combination is recorded at fair value at
the date of acquisition. These fair values are generally based on
risk-adjusted future cash flows discounted using appropriate
post-tax discount rates. The fair values are reviewed on a
regular basis, and any changes are reflected in the income
statement. See Note 33, ‘Contingent consideration liabilities’.
Pensions and other post-employment benefits
Judgement
Where a surplus on a defined benefit scheme arises, or there is
potential for a surplus to arise from committed future
contributions, the rights of the Trustees to prevent the Group
obtaining a refund of that surplus in the future are considered in
determining whether it is necessary to restrict the amount of the
surplus that is recognised. Three UK schemes are in surplus
(2023: three UK schemes), with a combined surplus of £725
million at 31 December 2024 (2023: £457 million). There are
further recognised pension surpluses totalling £173 million
spread across five countries (2023: £177 million across five
countries). GSK has made the judgement that these amounts
meet the requirements of recoverability.
Estimates
The costs of providing pensions and other post-employment
benefits are assessed on the basis of assumptions selected by
management. These assumptions include future earnings and
pension increases, discount rates, expected long-term rates of
return on assets and mortality rates, and are disclosed in Note
31, ‘Pensions and other post-employment benefits’.
Discount rates are derived from AA rated corporate bond yields
except in countries where there is no deep market in corporate
bonds where government bond yields are used. A sensitivity
analysis is provided in Note 31, ‘Pensions and other post-
employment benefits’, a 0.25% reduction in the discount rate
would lead to an increase in the net pension deficit of
approximately £320 million and an increase in the annual
pension cost of approximately £17 million. Similarly, a 0.25%
increase in the discount rate would lead to a decrease in the
net pension deficit of approximately £309 million and a
decrease in the annual pension cost of approximately £19
million.
A 0.75% reduction in the discount rate would lead to an
increase in the net pension deficit of approximately £1,012
million and an increase in the annual pension cost of
approximately £51 million. Similarly, a 0.75% increase in the
discount rate would lead to a decrease in the net pension
deficit of approximately £883 million and a decrease in the
annual pension cost of approximately £55 million. The selection
of different assumptions could affect the future results of the
Group.
Impairment of intangible assets
The Group's intangible assets primarily comprise acquired
licences, patents, amortised brands, and product development
costs. At 31 December 2024, these assets have a carrying
amount of £14,936 million (2023: £14,166 million). Intangible
assets are tested for impairment when indicators of impairment
arise, or annually where the asset is not yet in use.
Estimates
Given the inherent uncertainty in pharmaceutical development
and commercialisation, there is significant estimation involved
in determining the recoverable amount of intangible assets. The
recoverable amount of intangible assets is determined as the
higher of their fair value less costs of disposal and their value in
use. The value in use is estimated using discounted cash flow
models, which require estimates such as future sales forecasts,
discount rates, probability of technical and regulatory success
(PTRS) and the results from research and development
activities. The key source of estimation uncertainty is in relation
to the portfolio of intangible assets as a whole. Based on the
number of assets held and the different assumptions for each
asset, it is not practicable to give a meaningful sensitivity
analysis.
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GSK Annual Report 2024
Notes to the financial statements continued
216
4. New accounting requirements
Amendments to IFRS accounting standards applicable
from 1 January 2024
GSK has adopted the following amendments to IFRS
accounting standards, with no material impact to the Group in
the year ended 31 December 2024:
– Classification of Liabilities as Current or Non-current and
Non-current Liabilities with Covenants - Amendments to IAS
1.
– Supplier Finance Arrangements - Amendments to IAS 7 and
IFRS 7.
– Lease Liability in a Sale and Leaseback - Amendments to
IFRS 16.
New IFRS accounting standards and amendments issued
but not yet effective
Certain amendments to IFRS accounting standards and
interpretations have been published that are not mandatory for
the 31 December 2024 reporting period and have not been
early adopted by the Group. The amendments and
interpretations that are not expected to have a material impact
on the results or financial position of the Group in future
reporting periods are:
– Lack of Exchangeability - Amendments to IAS 21 (effective
from 1 January 2025, endorsed by the UKEB).
– Classification and Measurement of Financial Instruments -
Amendments to IFRS 9 and IFRS 7 (effective from 1 January
2026, not yet endorsed by the UKEB).
– IFRS 19 Subsidiaries without Public Accountability: Disclosures
(effective from 1 January 2027, not yet endorsed by the
UKEB).
– Contracts Referencing Nature-dependent Electricity -
Amendments to IFRS 9 and IFRS 7 (effective from 1 January
2026, not yet endorsed by the UKEB).
IFRS 18 Presentation and Disclosure in Financial Statements
was issued by the IASB on 9 April 2024 and introduces new
presentation and disclosure requirements, particularly for the
Income statement.
Furthermore the new accounting standard provides enhanced
principles on aggregation and disaggregation of information
and introduces new disclosures for Management Performance
Measures.
The requirements are effective for periods beginning on or after
1 January 2027 and are not yet endorsed by the UKEB.
GSK is assessing the impact of adopting the new requirements
introduced by IFRS 18, and will adopt the standard for the
reporting period ending 31 December 2027, subject to
endorsement in the UK.
5. Exchange rates
The Group uses the average of exchange rates prevailing during the period to translate the results and cash flows of overseas
subsidiaries, joint ventures and associates into Sterling and period end rates to translate the net assets of those entities. The
currencies which most influence these translations and the relevant exchange rates were:
2024
2023
2022
Average rates:
US$/£
1.28
1.24
1.24
Euro/£
1.18
1.15
1.17
Yen/£
193
175
161
2024
2023
2022
Period end rates:
US$/£
1.25
1.27
1.20
Euro/£
1.20
1.15
1.13
Yen/£
197
180
159
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GSK Annual Report 2024
Notes to the financial statements continued
217
6. Turnover and segment information
Operating segments are reported based on the financial information provided to the Chief Executive Officer and the responsibilities
of the GSK Leadership Team (GLT). GSK reports under two segments; Commercial Operations and Total R&D. Members of the GLT
are responsible for each segment.
Originally, GSK reported 2021 results under four segments: Pharmaceuticals, Pharmaceuticals R&D, Vaccines and Consumer
Healthcare. However, the reporting of operating segments was changed in 2022 and with the demerger of Consumer Healthcare
only two operating segments are reportable. There is no change to the reportable segments in the current or prior periods.
R&D investment is essential for the sustainability of the business. However for segment reporting the Commercial Operating profits
exclude allocations of globally funded R&D.
The Total R&D segment is the responsibility of the Chief Scientific Officer and is reported as a separate segment. The operating
costs of this segment includes R&D activities across Specialty Medicines, including HIV and Vaccines. It includes R&D and some
Selling, General and Administrative (SG&A) costs relating to regulatory and other functions.
The Group’s management reporting process allocates intra-Group profit on a product sale to the segment in which that sale is
recorded, and the profit analyses below have been presented on that basis.
Turnover by segment
2024
£m
2023
£m
2022
£m
Commercial Operations
31,376
30,328
29,324
31,376
30,328
29,324
Product sales are reported within three product groups: Vaccines, Specialty Medicines and General Medicines.
Commercial Operations:
2024
£m
2023
£m
2022
£m
Shingles
3,364
3,446
2,958
Meningitis
1,437
1,260
1,116
RSV
590
1,238
–
Influenza
408
504
714
Established Vaccines
3,339
3,266
3,085
9,138
9,714
7,873
Pandemic Vaccines
–
150
64
Vaccines
9,138
9,864
7,937
HIV
7,089
6,444
5,749
Respiratory/Immunology and Other
3,299
3,025
2,609
Oncology
1,410
731
602
11,798
10,200
8,960
Pandemic
12
44
2,309
Specialty Medicines
11,810
10,244
11,269
Respiratory
7,213
6,825
6,548
Other General Medicines
3,215
3,395
3,570
General Medicines
10,428
10,220
10,118
Total Commercial Operations
31,376
30,328
29,324
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GSK Annual Report 2024
Notes to the financial statements continued
218
6. Turnover and segment information continued
During 2024, sales were made to three US wholesalers of £4,538 million (2023: £4,494 million; 2022: £4,045 million), £4,792 million
(2023: £4,498 million; 2022: £4,161 million) and £3,366 million (2023: £3,531 million; 2022: £3,227 million) respectively, after allocating
final-customer discounts to the wholesalers.
Revenue recognised in the year from performance obligations satisfied in previous periods impacting turnover arises from changes
to prior year estimates of RAR (returns and rebates) accruals of £740 million (2023: £728 million).
Segment profit
2024
£m
2023
£m
2022
£m
Commercial Operations
15,335
14,656
13,590
Research and development
(5,845)
(5,607)
(5,060)
Segment profit
9,490
9,049
8,530
Corporate and other unallocated costs
(342)
(263)
(379)
Other reconciling items between segment profit and operating profit
(5,127)
(2,041)
(1,718)
Total Operating profit
4,021
6,745
6,433
Finance income
122
115
76
Finance costs
(669)
(792)
(879)
Gain on disposal of interest in associates
6
1
–
Share of after-tax losses of associates and joint ventures
(3)
(5)
(2)
Profit before taxation from continuing operations
3,477
6,064
5,628
Taxation
(526)
(756)
(707)
Profit after taxation for the year from continuing operations
2,951
5,308
4,921
Other reconciling items between segment profit and operating profit comprise items not specifically allocated to segment profit.
These include impairment and amortisation of intangible assets; major restructuring costs, which include impairments of tangible
assets and computer software; transaction-related adjustments related to significant acquisitions; proceeds and costs of disposals
of products and businesses; significant legal charges and expenses on the settlement of litigation and government investigations;
other operating income other than royalty income, and other items including amounts reclassified from the foreign currency
translation reserve to the income statement upon the liquidation of a subsidiary where the amount exceeds £25 million. Please refer
to the detail of Other reconciling items between segment profit and operating profit in the analysis of adjusting items in the Group
financial review on page 98 to 100.
Depreciation and amortisation by segment
2024
£m
2023
£m
2022
£m
Commercial Operations
906
893
829
Research and development
569
572
467
Segment depreciation and amortisation
1,475
1,465
1,296
Corporate and other unallocated depreciation and amortisation
74
110
112
Other reconciling items between segment depreciation and amortisation and total depreciation and
amortisation
1,002
719
739
Total depreciation and amortisation
2,551
2,294
2,147
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GSK Annual Report 2024
Notes to the financial statements continued
219
6. Turnover and segment information continued
PP&E, intangible asset and goodwill impairment by segment
2024
£m
2023
£m
2022
£m
Commercial Operations
102
27
29
Research and development
22
13
32
Segment impairment
124
40
61
Corporate and other unallocated impairment
11
35
20
Other reconciling items between segment impairment and total impairment
302
432
420
Total impairment
437
507
501
PP&E and intangible asset impairment reversals by segment
Commercial Operations
(28)
(16)
(6)
Research and development
(2)
(9)
(19)
Segment impairment reversals
(30)
(25)
(25)
Corporate and other unallocated impairment reversals
(3)
(14)
–
Other reconciling items between segment impairment reversals and total impairment reversals
–
–
(1)
Total impairment reversals
(33)
(39)
(26)
Net operating assets by segment
2024
£m
2023
£m
Commercial Operations
12,501
12,302
Research and development
7,459
7,021
Segment net operating assets
19,960
19,323
Corporate and other unallocated net operating assets
43
625
Net operating assets
20,003
19,948
Net debt
(13,095)
(15,040)
Investments in associates and joint ventures
96
55
Current equity investment
–
2,204
Derivative financial instruments
(82)
16
Current and deferred taxation
6,161
5,536
Assets held for sale (excluding cash and cash equivalents)
3
76
Net assets
13,086
12,795
The Commercial Operations segment includes the Shionogi-ViiV Healthcare contingent consideration liability of £6,061 million
(2023: £5,718 million) and the Pfizer put option of £915 million (2023: £848 million).
Geographical information
The UK is regarded as being the Group’s country of domicile.
Turnover by location of customer
2024
£m
2023
£m
2022
£m
UK
708
693
695
US
16,384
15,820
14,542
Rest of World
14,284
13,815
14,087
External turnover
31,376
30,328
29,324
Non-current assets by location of subsidiary
2024
£m
2023
£m
UK
7,803
6,464
US
13,977
13,280
Belgium
5,378
5,337
Rest of World
5,588
6,606
Non-current assets
32,746
31,687
Non-current assets by location excludes amounts relating to other investments, deferred tax assets, derivative financial instruments,
pension assets, amounts receivable under insurance contracts and certain other non-current receivables. There are no other
countries with individually material external revenue or non-current assets.
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GSK Annual Report 2024
Notes to the financial statements continued
220
7. Other operating income/(expense)
2024
£m
2023
£m
2022
£m
Upfront settlement income(1)
–
–
922
Fair value remeasurements of equity investments
51
(122)
256
Disposal of businesses and assets
246
61
215
Fair value remeasurements on contingent consideration recognised in business combinations(2)
(1,751)
(791)
(1,607)
Remeasurement of ViiV Healthcare put option liabilities and preferential dividends
(67)
245
(85)
Fair value adjustments on derivative financial instruments
–
7
3
Other (expense)/income
(9)
237
61
(1,530)
(363)
(235)
(1) On 1 February 2022, ViiV Healthcare reached agreement with Gilead Sciences, Inc (Gilead) to settle the global patent infringement litigation relating to the
commercialisation of Gilead’s Biktarvy concerning ViiV Healthcare’s patents relating to dolutegravir, an anti-retroviral medication used, together with other
medicines, to treat human immunodeficiency virus (HIV). Under the terms of the global settlement and licensing agreement, Gilead made an upfront
payment of $1.25 billion (£922 million) to ViiV Healthcare on 15 February 2022. In addition, Gilead will also pay a 3% royalty on all future US sales of Biktarvy
and in respect of the bictegravir component of any other future bictegravir-containing products sold in the US. These royalties will be payable by Gilead to
ViiV Healthcare from 1 February 2022 until the expiry of ViiV Healthcare’s US Patent No. 8,129,385 on 5 October 2027 and will be recorded as royalty income
in the income statement.
(2) Fair value remeasurements on contingent consideration disclosed above includes the fair value movements on related hedging contracts.
Fair value remeasurements of equity investments in 2024 included a gain of £22 million (2023: £17 million loss) from the
remeasurement of the Group’s retained investment in Haleon plc. See details in Note 22, 'Current equity investments'.
Disposal of businesses and assets in 2024 and 2023 primarily includes milestone income.
Disposal of businesses and assets in 2022 includes milestone income and the reversal of provisions no longer required.
Fair value remeasurements on contingent consideration recognised as business combinations included a net charge of £1,533
million related to the acquisition of the former Shionogi-ViiV Healthcare joint venture, and a £206 million net charge payable to
Novartis related to the Vaccines acquisition, together with fair value movements on related hedging contracts.
Other income in 2023 primarily included net income from dividends related to investments, including £49 million dividends received
from the retained investment in Haleon plc.
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GSK Annual Report 2024
Notes to the financial statements continued
221
8. Operating profit
The following items have been included in operating profit:
2024
£m
2023
£m
2022
£m
Employee costs (Note 9)
8,759
8,473
7,693
Advertising
851
835
735
Distribution costs
198
199
192
Depreciation of property, plant and equipment
886
892
885
Impairment of property, plant and equipment, net of reversals
88
17
70
Depreciation of right of use assets
211
190
176
Impairment of right of use assets, net of reversals
(1)
10
40
Amortisation of intangible assets
1,454
1,212
1,086
Impairment of intangible assets, net of reversals
317
418
365
Impairment of tangible and intangible assets held for sale, net of reversals
–
23
–
Net foreign exchange (gains)/losses
13
11
11
Inventories:
Cost of inventories included in cost of sales
6,495
6,576
6,137
Write-down of inventories
1,046
979
687
Reversal of prior year write-down of inventories
(630)
(598)
(483)
Short-term lease charge
13
8
6
Low-value lease charge
2
2
2
Variable lease payments
15
17
9
Fees payable to the company’s auditor and its associates in relation to the Group (see below)
23.3
22.0
26.9
The reversals of prior year write-downs of inventories principally arise from the reassessment of usage or demand expectations prior
to inventory expiration.
Net foreign exchange (gains)/losses include a net gain of £87 million (2023: £34 million gain; 2022: £2 million loss) arising from the
recycling of exchange on liquidation or disposal of overseas subsidiaries. The recycling of exchange on disposal of overseas
associates is £nil (2023: £nil). The recycling of exchange on disposal of overseas subsidiaries does not include recycling of exchange
on disposal of Consumer Healthcare subsidiaries as this is reported as Profit after taxation on demerger of discontinued operations.
Included within operating profit are Major restructuring charges of £353 million (2023: £382 million; 2022: £321 million), see Note 10,
‘Major restructuring costs’.
Fees payable to the company’s auditor and its associates:
2024
£m
2023
£m
2022
£m
Audit of parent company and consolidated financial statements including attestation under
s.404 of Sarbanes-Oxley Act 2002
10.8
10.2
10.9
Audit of the company’s subsidiaries
10.3
10.2
9.7
Total audit services
21.1
20.4
20.6
Audit-related and other assurance services
2.2
1.6
6.3
Total audit services, audit-related and other assurance services
23.3
22.0
26.9
The other assurance services provided by the auditor related to agreed-upon procedures and other assurance services outside of
statutory audit requirements. Audit-related and other assurance services include £nil (2023: £nil; 2022: £4.4 million) due to reporting
accountant work performed in preparation for the Consumer Healthcare demerger.
In addition to the above, fees paid to the auditor in respect of the GSK pension schemes were:
2024
£m
2023
£m
2022
£m
Audit
0.2
0.2
0.2
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Notes to the financial statements continued
222
9. Employee costs
2024
£m
2023
£m
2022
£m
Wages and salaries
6,750
6,706
6,110
Social security costs
862
818
763
Pension and other post-employment costs, including augmentations (Note 31)
368
356
369
Cost of share-based incentive plans
347
321
314
Severance and other costs from integration and restructuring activities
432
272
137
8,759
8,473
7,693
The Group provides benefits to employees, commensurate with local practice in individual countries, including in some markets,
healthcare insurance, subsidised car schemes and personal life assurance.
The cost of share-based incentive plans is analysed as follows:
2024
£m
2023
£m
2022
£m
Share value plan
260
244
243
Performance share plan
67
58
55
Share option plans
6
5
4
Cash settled and other plans
14
14
12
347
321
314
The average number of persons employed by the Group (including Directors) during the year:
2024
Number
2023
Number
2022
Number
Manufacturing
23,206
23,209
22,946
Selling, general and administration
33,503
34,446
34,642
Research and development
12,596
12,589
11,542
Total Continuing Operations
69,305
70,244
69,130
Discontinued Operations
–
–
21,292
Total
69,305
70,244
90,422
Note: Consumer Healthcare was divested on 18 July 2022 and is shown as Discontinued Operations in the above table.
The average monthly number of Group employees excludes temporary and contract staff. The numbers of Group employees at the
end of each financial year are given in the financial record on page 299.
The compensation of the Directors and senior management (members of the GLT) in aggregate, was as follows:
2024
£m
2023
£m
2022
£m
Wages and salaries
32
37
31
Social security costs
6
4
5
Pension and other post-employment costs
1
1
2
Cost of share-based incentive plans
38
32
28
77
74
66
Further information on the remuneration of the Directors is given in the sections of the Annual Report on remuneration labelled as
audited within pages 157 to 162.
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Notes to the financial statements continued
223
10. Major restructuring costs
Within the Pharmaceuticals sector, the highly regulated manufacturing operations and supply chains and long lifecycle of the
business mean that restructuring programmes, particularly those that involve the rationalisation or closure of manufacturing or R&D
sites, are likely to take several years to complete.
Major restructuring costs are those related to specific Board-approved Major restructuring programmes, including integration costs
following material acquisitions, which are structural and are of a significant scale where the costs of individual or related projects
exceed £25 million.
In January 2020, the Board approved a Separation restructuring programme to prepare for the separation of GSK into two
companies. This programme is largely complete. After the acquisition of Sierra Oncology (July 2022) and Affinivax (August 2022),
the Board approved a Major restructuring programme for the integration of significant acquisitions designed to integrate and
achieve synergies. GSK acquired Bellus Health Inc. in June 2023 and Aiolos Bio, Inc. in February 2024.
The total restructuring costs of £353 million in 2024 (2023: £382 million; 2022: £321 million) were incurred in the following areas:
– Restructuring costs for separation of GSK into two companies aiming to provide a robust and sustainable state for the
Pharmaceutical organisation
– Continued transformation of central functions, including GSK technology platforms and interfaces, to deliver greater digital
synergies, simplification of applications and staff reductions
– The integration of acquisitions
The analysis of the costs charged to operating profit under these programmes was as follows:
2024
£m
2023
£m
2022
£m
Increase in provision for Major restructuring programmes (see Note 32)
195
172
138
Amount of provision reversed unused (see Note 32)
(51)
(55)
(111)
Impairment (reversals)/losses recognised
(12)
33
122
Other non-cash charges/(credit)
58
86
(7)
Other cash costs
163
146
179
353
382
321
Provision reversals of £51 million mainly relate to the Separation restructuring programme. Asset impairment credit of £12 million and
other non-cash charges of £58 million principally comprised fixed asset write-downs of manufacturing and accelerated
depreciation where asset lives have been shortened in the supply chain manufacturing network as a result of the Major restructuring
programmes. All other charges have been or will be settled in cash and include site closure costs, consultancy and project
management costs.
The analysis of Major restructuring charges by programme was as follows:
2024
Cash
£m
Non-cash
£m
Total
£m
Separation restructuring programme
200
36
236
Significant acquisitions
59
1
60
Legacy programmes
48
9
57
307
46
353
2023
Cash
£m
Non-cash
£m
Total
£m
Separation restructuring programme
199
117
316
Significant acquisitions
65
1
66
Legacy programmes
(1)
1
–
263
119
382
The analysis of Major restructuring charges by income statement line was as follows:
2024
£m
2023
£m
2022
£m
Cost of sales
163
164
102
Selling, general and administration
160
216
180
Research and development
9
2
39
Other operating expense
21
–
–
353
382
321
Strategic report
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Financial statements
Investor information
GSK Annual Report 2024
Notes to the financial statements continued
224
11. Finance income
2024
£m
2023
£m
2022
£m
Finance income arising from:
Financial assets measured at amortised cost
60
48
31
Financial assets measured at fair value through profit or loss
72
60
31
(Net losses)/net gains arising from net investment hedge relationships(1)
(16)
–
12
Other finance income
6
7
2
122
115
76
(1) (Net losses)/net gains arising from net investment hedge relationships contains a £15 million loss relating to ineffectiveness on net investment hedges (2023:
£nil 2022: £nil).
12. Finance expense
2024
£m
2023
£m
2022
£m
Finance expense arising on:
Financial liabilities at amortised cost
(569)
(672)
(789)
Net losses arising from:
Financial instruments mandatorily measured at fair value through profit or loss
(262)
(23)
743
Retranslation of loans
266
25
(761)
Reclassification of hedges from other comprehensive income
(4)
(4)
(2)
Unwinding of discounts on provisions
(25)
(15)
(7)
Finance expense arising on lease liabilities
(46)
(38)
(30)
Other finance expense
(29)
(65)
(33)
(669)
(792)
(879)
13. Associates and joint ventures
The Group’s share of after-tax profits and losses of associates and joint ventures is set out below:
2024
£m
2023
£m
2022
£m
Share of after-tax (losses)/profits of associates
(3)
(2)
1
Share of after-tax losses of joint ventures
–
(3)
(3)
(3)
(5)
(2)
Aggregated financial information in respect of GSK’s share of other associated undertakings and joint ventures is set out below:
2024
£m
2023
£m
2022
£m
Share of after-tax losses
(3)
(5)
(2)
Share of other comprehensive income/(expense)
21
7
(9)
Share of total comprehensive income/(expense)
18
2
(11)
The Group’s sales to associates and joint ventures were £nil in 2024 (2023: £nil; 2022: £nil).
Please refer to the balance sheet information on Note 21, 'Investments in associates and joint ventures'.
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Notes to the financial statements continued
225
14. Taxation
The Group’s tax charge is the sum of the total current and deferred tax expense.
Taxation charge based on profits for the year
2024
£m
2023
£m
2022
£m
UK current year charge
186
207
200
Rest of World current year charge
1,458
1,371
1,351
Charge/(credit) in respect of prior periods
(92)
43
(60)
Current taxation
1,552
1,621
1,491
Deferred taxation
(1,026)
(865)
(784)
526
756
707
In 2024, GSK made corporate income tax payments globally of £1.3 billion (2023: £1.3 billion), of which £106 million (2023: £205
million) was UK corporation tax paid to HMRC. These amounts are for corporate income tax only, and do not include the various
other business taxes borne by GSK each year.
The deferred tax credits in each period reflect current year losses where offset against taxable profits in future periods is probable
and the release of deferred tax liabilities. The latter relates primarily to the unwind of deferred tax liabilities on intangible assets.
The following table reconciles the tax charge calculated at the UK statutory rate on the Group profit before tax with the actual tax
charge for the year.
Reconciliation of taxation on Group profits
2024
£m
2024
%
2023
£m
2023
%
2022
£m
2022
%
Profit before tax
3,477
6,064
5,628
UK statutory rate of taxation
869
25.0
1,425
23.5
1,069
19.0
Differences in overseas taxation rates
185
5.3
159
2.6
318
5.6
Benefit of intellectual property incentives
(602)
(17.3)
(696)
(11.5)
(600)
(10.7)
R&D credits
(89)
(2.6)
(121)
(2.0)
(119)
(2.1)
Permanent differences on disposals, acquisitions and transfers
2
0.1
10
0.2
275
4.9
Other permanent differences
302
8.7
102
1.7
82
1.5
Re-assessments of prior year current tax estimates
(92)
(2.6)
43
0.7
(60)
(1.1)
Re-assessments of prior year deferred tax estimates
(40)
(1.2)
(147)
(2.4)
(233)
(4.1)
Changes in tax rates
(9)
(0.3)
(19)
(0.3)
(25)
(0.4)
Tax charge/tax rate
526
15.1
756
12.5
707
12.6
As a global biopharmaceutical company, we have a substantial business and employment presence in many countries around the
world. The impact of differences in overseas taxation rates arose from profits being earned in countries with tax rates higher than
the UK statutory rate, the most significant of which in 2024 were France, Germany and Italy. This adverse impact was offset by the
benefit of intellectual property incentives such as the UK Patent Box and Belgian Innovation Income Deduction (IID) regimes, which
provide a reduced rate of corporation tax on profits earned from qualifying patents. We claim these incentives in the manner
intended by the relevant statutory or regulatory framework. The introduction of new global minimum corporate income tax rules
introduced in the UK and Belgium with effect from 1 January 2024 (in line with the OECD’s Pillar 2 framework) resulted in a
reduction in these incentives and an additional tax charge of £6 million.
Other permanent differences includes the impact of the partial deductibility of Zantac settlement costs.
The Group’s tax rate is also influenced by updates to estimates of prior period tax liabilities following closure of open issues with tax
authorities in various jurisdictions and changes in tax rates.
Future tax charges, and therefore our effective tax rate, may be affected by factors such as acquisitions, disposals, restructuring, the
location of research and development activity, tax regime reforms and resolution of open matters as we continue to bring our tax
affairs up to date around the world.
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Notes to the financial statements continued
226
14. Taxation continued
Tax on items charged to equity and statement of comprehensive income
2024
£m
2023
£m
2022
£m
Current taxation
Share-based payments
(4)
(1)
(3)
Defined benefit plans
–
(143)
–
Fair value movements on cash flow hedges
–
–
–
Fair value movements on equity investments
4
(6)
12
–
(150)
9
Deferred taxation
Share-based payments
–
(6)
11
Defined benefit plans
122
184
(211)
Fair value movements on cash flow hedges
(1)
(1)
(9)
Fair value movements on equity investments
(21)
(8)
(68)
100
169
(277)
Total charge/(credit) to equity and statement of comprehensive income
100
19
(268)
All of the above items have been charged to the statement of comprehensive income except for tax on share-based payments.
Issues relating to taxation
We are subject to taxation throughout our supply chain. The worldwide nature of our operations means that our cross-border supply
routes, necessary to ensure supplies of medicines into numerous countries, can result in conflicting claims from tax authorities as to
the profits to be taxed in individual countries. This can lead to double taxation (with the same profits taxed in more than one
country). To mitigate the risk of double taxation, profits are recognised in territories by reference to the activities performed there
and the value they generate. To ensure the profits recognised in jurisdictions are aligned to the activity undertaken there, and in line
with current OECD guidelines, we base our transfer pricing policy on the arm’s length principle and support our transfer prices with
economic analysis and reports. The Group also has open items in several jurisdictions concerning such matters as the deductibility
of particular expenses and the tax treatment of certain business transactions. GSK applies a risk-based approach to determine the
transactions most likely to be subject to challenge and the probability that the Group would be able to obtain compensatory
adjustments under international tax treaties.
The calculation of the Group’s total tax charge therefore necessarily involves a degree of estimation and judgement in respect of
certain items whose tax treatment cannot be finally determined until resolution has been reached with the relevant tax authority or,
as appropriate, through a formal legal process. At 31 December 2024 the Group had recognised provisions of £636 million in
respect of such uncertain tax positions (2023: £584 million). The net increase in recognised provisions during 2024 was driven by the
reassessment of estimates and the agreement of a number of open issues with tax authorities in various jurisdictions. Whilst the
ultimate liability for such matters may vary from the amounts provided and is dependent upon the outcome of agreements with the
relevant tax authorities, or litigation where appropriate, the Group continues to consider that it has made appropriate provision for
periods which are open and not yet agreed by the tax authorities.
A provision for deferred tax liabilities of £159 million as at 31 December 2024 (2023: £165 million) has been made in respect of
taxation that would be payable on the remittance of profits by certain overseas subsidiaries. Whilst the aggregate amount of
unremitted profits at the balance sheet date was approximately £18 billion (2023: £18 billion), the majority of these unremitted
profits would not be subject to tax (including withholding tax) on repatriation, as UK legislation relating to company distributions
provides for exemption from tax for most overseas profits, subject to certain exceptions. Deferred tax is not provided on temporary
differences of £696 million (2023: £869 million) arising on unremitted profits as management has the ability to control any future
reversal and does not consider such a reversal to be probable.
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Notes to the financial statements continued
227
14. Taxation continued
Movement in deferred tax assets and liabilities
Accelerated
capital
allowances
£m
Intangible
assets
£m
Contingent
consideration
£m
Intra-
Group
profit
£m
Pensions &
other post
employment
benefits
£m
Tax
losses
£m
Share
option
and award
schemes
£m
Other
net
temporary
differences
£m
Total
At 1 January 2023
(57)
(819)
992 1,099
794
1,661
57
1,642 5,369
Exchange adjustments
11
58
–
(70)
(24)
(2)
–
(100)
(127)
Credit/(charge) to income statement
72
229
(71)
223
(15)
335
12
80
865
Credit/(charge) to statement of comprehensive
income
–
–
–
–
(184)
–
5
10
(169)
Acquisitions/disposals
–
(144)
–
–
–
–
–
–
(144)
R&D credits utilisation
–
–
–
–
–
–
–
(56)
(56)
At 31 December 2023
26
(676)
921
1,252
571 1,994
74
1,576 5,738
Exchange adjustments
9
(37)
2
(10)
(5)
–
–
11
(30)
Credit/(charge) to income statement
97
197
50
32
(103)
455
(8)
306 1,026
Credit/(charge) to statement of comprehensive
income
–
–
–
–
(122)
–
–
22
(100)
Acquisitions/disposals
–
(190)
–
–
–
–
–
–
(190)
R&D credits utilisation
–
–
–
–
–
–
–
(69)
(69)
At 31 December 2024
132
(706)
973
1,274
341 2,449
66
1,846 6,375
Deferred tax liabilities in relation to intangible assets predominantly relate to temporary differences arising as a result of historic
business combinations. Acquisitions within the year predominantly relate to Aiolos Bio, Inc. (see Note 41, 'Acquisitions and
disposals').
The Group continues to recognise deferred tax assets on future obligations in respect of contingent consideration amounts payable
to minority shareholders. These payments are tax deductible at the point in time at which payment is made.
A deferred tax asset is recognised on intra-Group profits arising on inter-company inventory which are eliminated within the
consolidated accounts. As intra-Group profits are not eliminated from the individual entities’ tax returns a temporary difference
arises that will reverse at the point in time inventory is sold externally.
The deferred tax asset of £2,449 million (2023: £1,994 million) recognised on tax losses relates to trading losses. Such deferred tax
assets are only recognised to the extent Group long-range forecasts indicate sufficient future taxable profits will be available to
utilise such assets (forecast by around 2030). Other net temporary differences included accrued expenses for which a tax deduction
is only available on a paid basis.The Group has adopted the mandatory temporary exception to the recognition and disclosure of
deferred taxes arising from the jurisdictional implementation of the Pillar Two model rules, as required under IAS 12.
Deferred tax asset and liabilities are recognised on the balance sheet as follows:
2024
£m
2023
£m
Deferred tax assets
6,757
6,049
Deferred tax liabilities
(382)
(311)
6,375
5,738
2024
2023
Unrecognised tax losses and attributes
Tax losses
£m
Unrecognised
deferred tax
asset
£m
Tax losses
£m
Unrecognised
deferred tax
asset
£m
Trading losses and attributes expiring:
Within 10 years
1,034
145
939
149
More than 10 years
1,598
84
1,238
66
Available indefinitely
693
161
228
47
At 31 December
3,325
390
2,405
262
Capital losses expiring:
Available indefinitely
2,253
565
2,261
567
At 31 December
2,253
565
2,261
567
Deferred tax assets are only recognised where it is probable that future taxable profit will be available to utilise losses.
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Notes to the financial statements continued
228
15. Earnings per share
2024
pence
2023
pence
2022
pence
Basic earnings per share from continuing operations
63.2
121.6
110.8
Basic earnings per share from discontinued operations
–
–
260.6
Total basic earnings per share
63.2
121.6
371.4
Diluted earnings per share from continuing operations
62.2
119.9
109.2
Diluted earnings per share from discontinued operations
–
–
257.0
Total diluted earnings per share
62.2
119.9
366.2
Basic earnings per share has been calculated by dividing the profit attributable to shareholders by the weighted average number of
shares in issue during the period after deducting shares held by the ESOP Trusts for the future exercise of share options and share
awards and Treasury shares. The trustees have waived their rights to cash dividends on the GSK shares held by the ESOP Trusts.
Diluted earnings per share has been calculated after adjusting the weighted average number of shares used in the basic
calculation to assume the conversion of all potentially dilutive shares. A potentially dilutive share forms part of the employee share
schemes where its exercise price is below the average market price of GSK shares during the period and any performance
conditions attaching to the scheme have been met at the balance sheet date.
The numbers of shares used in calculating basic and diluted earnings per share are reconciled below.
Weighted average number of shares in issue
2024
millions
2023
millions
2022
millions
Basic
4,077
4,052
4,026
Dilution for share options and awards
65
59
58
Diluted
4,142
4,111
4,084
16. Dividends
2024
2023
2022
Paid/payable
Dividend
per share
(pence)
Total
dividend
£m
Paid
Dividend
per share
(pence)
Total
dividend
£m
Paid
Dividend
per share
(pence)
Total
dividend
£m
First interim
11 July 2024
15.00
612
13 July 2023
14.00
567
1 July 2022
17.50
704
Second interim
10 October 2024
15.00
612 12 October 2023
14.00
568
6 October 2022
16.25
654
Third interim
9 January 2025
15.00
612
11 January 2024
14.00
568 12 January 2023
13.75
555
Fourth interim
10 April 2025
16.00
653
11 April 2024
16.00
652*
13 April 2023
13.75
557**
Total
61.00
2,489
58.00
2,355
61.25
2,470
*
The estimate for the fourth interim dividend for 2023 disclosed in the 2023 annual report was £649 million, £3 million less than the dividend that was ultimately paid.
** The estimate for the fourth interim dividend for 2022 disclosed in the 2022 annual report was £555 million, £2 million less than the dividend that was ultimately paid.
Under IFRS accounting standards, interim dividends are only recognised in the financial statements when paid and not when
declared. GSK normally pays a dividend two quarters after the quarter to which it relates and one quarter after it is declared. The
2024 financial statements recognise those dividends paid in 2024, namely the third and fourth interim dividends for 2023, and the
first and second interim dividends for 2024.
The demerger of Consumer Healthcare in 2022 was effected by GSK declaring an interim dividend in specie of Haleon plc shares.
The fair value of the distribution was £15,526 million.
The amounts recognised in each year were as follows:
2024
£m
2023
£m
2022
£m
Cash dividends to shareholders
2,444
2,247
3,467
Dividends in specie to shareholders in Haleon plc shares (Note 41)
–
–
15,526
2,444
2,247
18,993
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Financial statements
Investor information
GSK Annual Report 2024
Notes to the financial statements continued
229
17. Property, plant and equipment
Land and
buildings
£m
Plant,
equipment
and vehicles
£m
Assets in
construction
£m
Total
£m
Cost at 1 January 2023
6,648
10,953
1,850
19,451
Exchange adjustments
(189)
(265)
(44)
(498)
Additions
11
99
1,185
1,295
Capitalised borrowing costs
–
–
36
36
Disposals and write-offs
(136)
(732)
(16)
(884)
Reclassifications
134
701
(869)
(34)
Transfer to assets held for sale/distribution
(13)
(52)
(22)
(87)
Cost at 31 December 2023
6,455
10,704
2,120
19,279
Exchange adjustments
(141)
(233)
(51)
(425)
Additions
42
166
1,185
1,393
Capitalised borrowing costs
–
–
20
20
Disposals and write-offs
(144)
(381)
(5)
(530)
Reclassifications
179
762
(949)
(8)
Transfer to assets held for sale/distribution
(16)
(3)
–
(19)
Cost at 31 December 2024
6,375
11,015
2,320
19,710
Depreciation at 1 January 2023
(3,275)
(6,469)
–
(9,744)
Exchange adjustments
90
153
–
243
Charge for the year
(210)
(682)
–
(892)
Disposals and write-offs
66
662
–
728
Transfer to assets held for sale/distribution
6
29
–
35
Reclassifications
–
(4)
–
(4)
Depreciation at 31 December 2023
(3,323)
(6,311)
–
(9,634)
Exchange adjustments
76
139
–
215
Charge for the year
(211)
(675)
–
(886)
Disposals and write-offs
121
325
–
446
Transfer to assets held for sale/distribution
14
2
–
16
Reclassifications
(27)
26
–
(1)
Depreciation at 31 December 2024
(3,350)
(6,494)
–
(9,844)
Impairment at 1 January 2023
(260)
(472)
(42)
(774)
Exchange adjustments
4
7
1
12
Disposals and write-offs
27
114
13
154
Impairment losses
(11)
(32)
—
(43)
Reversal of impairments
3
23
–
26
Impairment at 31 December 2023
(237)
(360)
(28)
(625)
Exchange adjustments
3
5
1
9
Disposals and write-offs
22
55
3
80
Impairment losses
(27)
(84)
(5)
(116)
Reversal of impairments
4
23
1
28
Reclassifications
(24)
(13)
22
(15)
Impairment at 31 December 2024
(259)
(374)
(6)
(639)
Total accumulated depreciation and impairment at 31 December 2023
(3,560)
(6,671)
(28)
(10,259)
Total accumulated depreciation and impairment at 31 December 2024
(3,609)
(6,868)
(6)
(10,483)
Net book value at 1 January 2023
3,113
4,012
1,808
8,933
Net book value at 31 December 2023
2,895
4,033
2,092
9,020
Net book value at 31 December 2024
2,766
4,147
2,314
9,227
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GSK Annual Report 2024
Notes to the financial statements continued
230
17. Property, plant and equipment continued
The weighted average interest rate for capitalised borrowing costs in the year was 4% (2023: 4%). Disposals and write-offs in the
year included a number of assets with nil net book value that are no longer in use in the business.
The impairment losses principally arose from decisions to rationalise facilities and were calculated based on fair value less costs of
disposal. The fair value less costs of disposal valuation methodology uses significant inputs which are not based on observable
market data, and therefore this valuation technique is classified as level 3 of the fair value hierarchy. These calculations determine
the net present value of the projected risk-adjusted, post-tax cash flows of the relevant asset or cash generating unit, applying a
discount rate of the Group post-tax weighted average cost of capital (WACC) of 7.5% (2023: 7%), adjusted where appropriate for
specific segment, country and currency risk.
Assets that continue to be used by the Group are generally assessed as part of their associated cash generating unit on a value in
use basis. For value in use calculations, the post-tax cash flows do not include the impact of future uncommitted restructuring plans
or improvements. Where an impairment is indicated and a pre-tax cash flow calculation is expected to give a materially different
result, the test would be reperformed using pre-tax cash flows and a pre-tax discount rate. The Group WACC is equivalent to a pre-
tax discount rate of approximately 9% (2023: 9%).
Net impairment losses have been charged to cost of sales: £62 million (2023: net impairment reversals £1 million), R&D: £15 million
(2023: net impairment reversals £5 million) and SG&A: £11 million (2023: £23 million), after crediting net impairment reversals of £10
million (2023: net impairment losses £27 million) arising from the Major restructuring programmes.
Reversals of impairment arose from subsequent reviews of the impaired assets where the conditions which gave rise to the original
impairments were deemed no longer to apply. £15 million (2023: £17 million) of the impairment reversal has been credited to cost of
sales, £nil (2023: £5 million) of the impairment reversal has been credited to R&D expenses and £13 million (2023: £4 million) of the
impairment reversal has been credited to SG&A.
During 2024, £65 million (2023: £34 million) of computer software was reclassified from assets in construction to intangible assets
on becoming ready for use.
The Group has evaluated both the qualitative and quantitative effects of climate-related risks on the recoverable amounts of assets
and has determined that there are no material impairments. As of 31 December 2024, £97 million (2023: £53 million) has been
capitalised in property, plant, and equipment regarding the transition to a lower-carbon propellant.
18. Right of use assets
Land and
buildings
£m
Plant and
equipment
£m
Vehicles
£m
Total
£m
Net book value at 1 January 2023
561
6
120
687
Exchange adjustments
(30)
–
(6)
(36)
Additions through business combinations
1
–
–
1
Other additions
355
–
144
499
Depreciation
(121)
(2)
(67)
(190)
Disposals
(11)
–
(9)
(20)
Impairments
(10)
–
–
(10)
Reclassifications
6
–
–
6
Net book value at 31 December 2023
751
4
182
937
Exchange adjustments
(5)
–
(4)
(9)
Other additions
107
6
117
230
Depreciation
(126)
(2)
(83)
(211)
Disposals
(92)
–
(10)
(102)
Net Impairment Reversals
1
–
–
1
Net book value at 31 December 2024
636
8
202
846
Commitments for future payments related to leases not yet commenced but which we have committed to, leases of low-value
assets and leases which are less than twelve months are not material.
An analysis of lease liabilities is set out in Note 30, ‘Net debt’.
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GSK Annual Report 2024
Notes to the financial statements continued
231
19. Goodwill
2024
£m
2023
£m
Cost at 1 January
6,811
7,046
Exchange adjustments
(39)
(313)
Additions through business combinations (Note 41)
210
109
Other movements (Note 41)
–
(31)
Cost at 31 December
6,982
6,811
Net book value at 1 January
6,811
7,046
Net book value at 31 December
6,982
6,811
All goodwill is allocated to the Group’s segments as follows:
2024
£m
2023
£m
Commercial operations
6,076
5,951
Research and development
906
860
Net book value at 31 December
6,982
6,811
The recoverable amounts of the cash generating units are assessed using a fair value less costs of disposal model. Fair value less
costs of disposal is calculated using a discounted cash flow approach, with a post-tax discount rate applied to the projected risk-
adjusted post-tax cash flows and terminal value.
The discount rate used is based on the Group WACC of 7.5% (2023: 7%), as most cash generating units have integrated operations
across large parts of the Group. The discount rate is adjusted where appropriate for specific segment, country and currency risks.
The valuation methodology uses significant inputs which are not based on observable market data, therefore this valuation
technique is classified as level 3 in the fair value hierarchy.
The Research & development segment is evaluated on an arm's length pricing model, see assumptions below.
Details relating to the discounted cash flow models used in the impairment tests are as follows:
Valuation basis
Fair value less costs of disposal
Key assumptions
Sales growth rates
Profit margins
Terminal growth rate
Discount rate
Taxation rate
Determination of assumptions
Growth rates are internal forecasts based on both internal and external market information.
Margins reflect past experience, adjusted for expected changes.
Terminal growth rates based on management’s estimate of future long-term average growth rates.
Discount rates based on Group WACC, adjusted where appropriate.
Taxation rates based on appropriate rates for each jurisdiction.
Period of specific projected cash flows
Five years
Terminal growth rate and discount rate
Terminal growth rate
Discount rate
2024
Commercial operations
1% p.a.
7.5% p.a.
Research and development
1% p.a.
7.5% p.a.
2023
Commercial operations
0% p.a.
7% p.a.
Research and development
0% p.a.
7% p.a.
The terminal growth rate does not exceed the long-term projected growth rates for relevant markets, reflects the impact of future
generic competition and takes account of new product launches. Goodwill is monitored for impairment at the segmental level and
the valuations indicated sufficient headroom such that a reasonably possible change to key assumptions is unlikely to result in an
impairment of the related goodwill.
The Group has assessed the qualitative and quantitative impact of climate-related risks on asset recoverable amounts and
concluded that there are no material impairments.
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GSK Annual Report 2024
Notes to the financial statements continued
232
20. Other intangible assets
Computer
software
£m
Licences, patents,
amortised brands
£m
Total
£m
Cost at 1 January 2023
1,959
25,717
27,676
Exchange adjustments
(30)
(664)
(694)
Capitalised development costs
–
363
363
Additions through business combinations
–
1,438
1,438
Other additions
144
525
669
Disposals and asset write-offs
(125)
(13)
(138)
Transfer to assets held for sale/distribution
2
–
2
Reclassifications
34
(3)
31
Cost at 31 December 2023
1,984
27,363
29,347
Exchange adjustments
(8)
(176)
(184)
Capitalised development costs
–
246
246
Additions through business combinations
–
913
913
Other additions
166
1,270
1,436
Disposals and asset write-offs
(39)
(140)
(179)
Reclassifications
65
(5)
60
Cost at 31 December 2024
2,168
29,471
31,639
Amortisation at 1 January 2023
(1,223)
(9,181)
(10,404)
Exchange adjustments
18
174
192
Charge for the year
(203)
(1,009)
(1,212)
Disposals and asset write-offs
100
8
108
Transfer to assets held for sale
(3)
–
(3)
Reclassifications
4
1
5
Amortisation at 31 December 2023
(1,307)
(10,007)
(11,314)
Exchange adjustments
7
83
90
Charge for the year
(211)
(1,243)
(1,454)
Disposals and asset write-offs
33
47
80
Reclassifications
(1)
(13)
(14)
Amortisation at 31 December 2024
(1,479)
(11,133)
(12,612)
Impairment at 1 January 2023
(81)
(2,873)
(2,954)
Exchange adjustments
1
70
71
Impairment losses
(23)
(398)
(421)
Reversal of impairments
3
–
3
Disposals and asset write-offs
25
11
36
Impairment at 31 December 2023
(75)
(3,190)
(3,265)
Exchange adjustments
(1)
4
3
Impairment losses
(6)
(314)
(320)
Reversal of impairments
3
–
3
Disposals and asset write-offs
5
84
89
Reclassifications
(36)
14
(22)
Impairment at 31 December 2024
(110)
(3,402)
(3,512)
Total accumulated amortisation and impairment at 31 December 2023
(1,382)
(13,197)
(14,579)
Total accumulated amortisation and impairment at 31 December 2024
(1,589)
(14,535)
(16,124)
Net book value at 1 January 2023
655
13,663
14,318
Net book value at 31 December 2023
602
14,166
14,768
Net book value at 31 December 2024
579
14,936
15,515
The weighted average interest rate for capitalised borrowing costs in the year was 4% (2023: 4%).
The net book value of computer software included £231 million (2023: £270 million) of internally generated costs.
The carrying amount at 31 December 2024 of intangible assets after which impairments have been charged in the year was £427
million (2023: £533 million), resulting from the appraisal of GSK’s assumptions related to in-licences and collaboration agreements.
The carrying amount at 31 December 2024 of intangible assets, after which impairment reversals have been charged in the year
was £nil million (2023: £nil million). No individual intangible asset accounted for a material impairment.
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Notes to the financial statements continued
233
20. Other intangible assets continued
The patent expiry dates of the Group’s most significant assets, where relevant, are set out on pages 301 to 306. Please refer to Note
2, 'Accounting principles and policies' for the Group’s accounting policy and estimate of the useful life for intangible assets.
Amortisation and impairment losses, net of reversals, have been charged in the income statement as follows:
Amortisation
Net impairment losses
2024
£m
2023
£m
2024
£m
2023
£m
Cost of sales
982
668
–
1
Selling, general and administration
84
103
6
18
Research and development
388
441
311
399
1,454
1,212
317
418
Licences, patents and amortised brands include a large number of acquired licences, patents, know-how agreements and
marketing rights, which are either marketed or in use, or still in development. Note 41, ‘Acquisitions and disposals’ gives details of
additions through business combinations in the year. The carrying amounts of the largest individual items are as follows:
2024
£m
2023
£m
Tesaro Assets
2,350
2,656
Meningitis Portfolio
1,473
1,717
Affinivax Assets
1,452
1,429
Camlipixant
1,438
1,438
Momelotinib
1,408
1,470
Dolutegravir (including Cabotegravir)
967
1,059
Aiolos Assets
887
–
CureVac Assets
535
191
Iteos Assets
471
443
Alector Assets
371
425
Benlysta
298
424
Shingrix
277
289
Hansoh Pharma Assets
247
–
Chimagen
227
–
RSV
201
139
BMS Assets
173
191
Spero
163
163
Wave Life Sciences
115
116
Arrowhead
114
114
UCB
93
115
DT
91
104
Relvar/Breo/Anoro
86
125
Stiefel Trade Name
84
116
Fluarix/FluLaval
55
100
Okairos
–
198
Others
1,360
1,144
Total
14,936
14,166
On 14 February 2024, GSK completed its acquisition of Aiolos Bio, Inc. The main asset acquired is AIO-001.
On 3 July 2024, GSK and CureVac N.V. announced a restructuring of their existing collaboration into a new licensing agreement, in
order to work together to develop mRNA vaccines for infectious diseases.
In 2024, GSK announced collaborations with Hansoh Pharma to develop HS-20093 and HS-20089.
On 29 October 2024, GSK entered into an agreement to acquire CMG1A46 from Chimagen Biosciences to expand its immunology
pipeline.
The Group has evaluated both the qualitative and quantitative effects of climate-related risks on the recoverable amounts of assets
and has determined that there are no material impairments.
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GSK Annual Report 2024
Notes to the financial statements continued
234
21. Investments in associates and joint ventures
Joint
ventures
£m
Associates
£m
2024
Total
£m
Joint
ventures
£m
Associates
£m
2023
Total
£m
At 1 January
–
55
55
10
64
74
Exchange adjustments
–
(3)
(3)
–
(3)
(3)
Additions
–
43
43
–
–
–
Disposals
–
(2)
(2)
(7)
–
(7)
Distributions received
–
(15)
(15)
–
(11)
(11)
Net fair value movements through other comprehensive income
–
21
21
–
7
7
Profit/(loss) after tax recognised in the consolidated income
statement
–
(3)
(3)
(3)
(2)
(5)
At 31 December
–
96
96
–
55
55
During the year GSK entered into a new research alliance with Flagship Pioneering, Inc. with an initial investment of $50 million
(£39 million).
Please refer to the income statement information in Note 13, 'Associates and joint ventures'.
22. Current equity investments
Current
Investments
measured at
FVTPL
2024
£m
Investments
measured at
FVTPL
2023
£m
At 1 January
2,204
4,087
Net fair value movements through profit or loss
22
(17)
Disposals and settlements
(2,226)
(1,863)
Exchange adjustments
–
(3)
At 31 December
–
2,204
Current equity investments represented Haleon plc shares held after the demerger of Consumer Healthcare. Shares were held for
trading and measured at fair value through profit or loss (FVTPL) based on the Haleon plc share price with changes in fair value
presented as Other operating income/(expense) in continuing operations. The Group’s investment in Haleon plc was fully disposed
of in May 2024.
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Notes to the financial statements continued
235
23. Other investments
Non-current
Investments
designated as
measured at
FVTOCI
£m
Investments
measured at
FVTPL
£m
2024
£m
Investments
designated as
measured at
FVTOCI
£m
Investments
measured at
FVTPL
£m
2023
£m
At 1 January
931
206
1,137
1,153
314
1,467
Exchange adjustments
4
4
8
(26)
(15)
(41)
Additions
70
38
108
93
29
122
Net fair value movements through other comprehensive income
(107)
–
(107)
(253)
–
(253)
Net fair value movements through profit or loss
–
29
29
–
(122)
(122)
Held for sale
–
–
–
(16)
–
(16)
Disposals
(55)
(20)
(75)
(20)
–
(20)
31 December
843
257
1,100
931
206
1,137
Non-current other investments comprise non-current equity investments which are recorded at fair value at each balance sheet
date. For investments traded in an active market, the fair value is determined by reference to the relevant stock exchange quoted
bid price. For other investments, the fair value is estimated by management with reference to relevant available information,
including the current market value of similar instruments, recent financing rounds and discounted cash flows of the underlying net
assets. Net fair value movements include the impact of exchange gains of £2 million through other comprehensive income and £nil
through profit or loss (2023: exchange losses of £37 million through other comprehensive income and £nil through profit or loss).
Other investments include listed investments of £646 million (2023: £741 million).
GSK has elected to designate the majority of its equity investments as measured at fair value through other comprehensive income
(FVTOCI). The most significant of these investments held at 31 December 2024 were in Wave life Sciences Ltd, which had a fair
value at 31 December 2024 of £165 million (2023: £55 million) and Crispr Therapeutics AG which had a fair value at 31 December
2024 of £101 million (2023: £158 million). The other investments include equity stakes in companies with which GSK has research
collaborations and in companies which provide access to biotechnology developments of potential interest.
On disposal of equity investments measured at FVTOCI, the accumulated fair value movements are reclassified from the fair value
reserve to retained earnings. Investments measured at FVTOCI with a fair value of £55 million (2023: £20 million) were disposed of
during the year. The cumulative profit on these investments after tax was £14 million (2023: loss of £26 million).
Certain other investments, such as investments in funds with limited lives and investments acquired with an intention to sell, are
measured at fair value through profit or loss (FVTPL). The most significant of these investments held at 31 December 2024 was SR
One Capital Fund I-B, LP which had a fair value at 31 December 2024 of £135 million (2023: £102 million).
24. Other non-current assets
2024
£m
2023
£m
Amounts receivable under insurance contracts
957
854
Pension schemes in surplus
898
634
Other receivables
87
96
1,942
1,584
Amounts receivable under insurance contracts are held at cash surrender value with movements through profit or loss.
Within the other receivables of £87 million (2023: £96 million), £36 million (2023: £27 million) is classified as financial assets of which
£31 million (2023: £18 million) is classified as fair value through profit or loss. On the remaining balance of £5 million
(2023: £9 million), the expected credit loss allowance was immaterial at 31 December 2024 and 2023.
Other receivables include £7 million relating to nature-based carbon credits projects (2023: £7 million).
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GSK Annual Report 2024
Notes to the financial statements continued
236
25. Inventories
2024
£m
2023
£m
Raw materials and consumables
1,361
1,594
Work in progress
2,683
2,449
Finished goods
1,625
1,455
5,669
5,498
As part of the TCFD one of the climate-related risks identified affects the metered dose inhalers (MDI). There is no impact on the
recoverable value of the associated inventories held at year end.
26. Trade and other receivables
2024
£m
2023
£m
Trade receivables, net of loss allowance
5,563
5,905
Accrued income
18
69
Prepayments
390
355
Interest receivable
1
2
Employee loans and advances
7
9
Other receivables
857
1,045
6,836
7,385
There were no trade or other receivable balances (2023: £nil) due from associates and joint ventures. The most significant
component of other receivables comprises receivables for indirect and other taxes of £447 million (2023: £565 million). Other
significant balance within other receivables is royalties receivable of £164 million (2023: £226 million).
Loss allowance-trade receivables
2024
£m
2023
£m
At 1 January
85
91
Exchange adjustments
(2)
(6)
Charge for the year
34
11
Transfer to assets held for sale
(1)
–
Subsequent recoveries of amounts provided for
(12)
(9)
Utilised
(5)
(2)
At 31 December
99
85
Of the total trade receivables balance, £13 million (2023: £10 million) is considered credit impaired, against which a £5 million (2023:
£8 million) expected credit loss allowance has been applied. No amount was purchased or originated credit impaired.
Within the other receivables of £857 million (2023: £1,045 million), £360 million (2023: £408 million) is classified as financial assets of
which £2 million (2023: £nil) is classified as held at fair value through profit or loss. At 31 December 2024, an expected credit loss
allowance of £9 million (2023: £3 million) was recognised in respect of financial assets, with a release in expected credit loss
allowance of £6 million (2023: £3 million) reported in profit or loss during the year.
For more discussion on credit risk practices, please refer to Note 44, 'Financial instruments and related disclosures'.
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Notes to the financial statements continued
237
27. Cash and cash equivalents
2024
£m
2023
£m
Cash at bank and in hand
943
748
Cash equivalents
2,927
2,188
3,870
2,936
Cash and cash equivalents included £177 million (2023: £190 million) not available for general use due to restrictions applying in the
subsidiaries where it is held. Restrictions include exchange controls and taxes on repatriation.
28. Assets held for sale
2024
£m
2023
£m
Property, plant and equipment
3
60
Other
–
16
3
76
Non-current assets and disposal groups are transferred to assets held for sale when it is expected that their carrying amounts will be
recovered principally through disposal and a sale is considered highly probable. They are held at the lower of carrying amount and
fair value less costs to sell.
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Notes to the financial statements continued
238
29. Trade and other payables
2024
£m
2023
£m
Trade payables
3,462
3,717
Wages and salaries
1,465
1,683
Social security
125
126
ViiV Healthcare put option
915
848
Other payables
420
346
Deferred income
171
222
Customer return and rebate accruals
6,486
6,799
Other accruals
2,291
2,103
15,335
15,844
Trade and other payable included £nil (2023: £nil) due to associates and joint ventures. The Group provides limited supplier
financing arrangements to certain suppliers. The amounts involved at 31 December 2024 were not material.
Revenue recognised in the year that was included in deferred income at 1 January 2024 was £176 million (2023: £192 million).
Customer return and rebate accruals are provided for by the Group at the point of sale in respect of estimated rebates, discounts or
allowances payable to customers as more fully described in the Group financial review on page 110. At 31 December 2024, customer
return and rebate accruals included £5,235 million (2023: £5,781 million) in respect of US Commercial Operations. Accruals are
made at the time of sale but the actual amounts paid are based on claims made some time after the initial recognition of the sale.
As the amounts are estimated, they may not fully reflect the final outcome and are subject to change dependent upon, amongst
other things, the types of buying group and product sales mix. The level of accrual is reviewed and adjusted quarterly in light of
historical experience of actual amounts paid and any changes in arrangements. Future events could cause the assumptions on
which the accruals are based to change, which could affect the future results of the Group.
Pfizer’s put option over its shareholding in ViiV Healthcare is currently exercisable. Pfizer may request an IPO of ViiV Healthcare at
any time and if either GSK does not consent to such IPO or an offering is not completed within nine months, Pfizer could require GSK
to acquire its shareholding. The amount of the liability for this put option, which is held on the gross redemption basis, is derived
from an internal valuation of the ViiV Healthcare business, utilising both discounted forecast future cash flow and multiples-based
methodologies.
The table below shows on an indicative basis the income statement and balance sheet sensitivity of the Pfizer put option to
reasonably possible changes in key assumptions.
Increase/(decrease) in financial liability and loss/(gain) in income statement
2024
£m
2023
£m
10% increase in sales forecasts*
92
84
15% increase in sales forecasts*
139
126
10% decrease in sales forecasts*
(92)
(84)
15% decrease in sales forecast*
(138)
(126)
1% (100 basis points) increase in discount rate
(22)
(18)
1.50% (150 basis points) increase in discount rate
(32)
(26)
1% (100 basis points) decrease in discount rate
23
19
1.50% (150 basis points) decrease in discount rate
34
28
10 cent appreciation of US Dollar
62
54
15 cent appreciation of US Dollar
97
85
10 cent depreciation of US Dollar
(53)
(46)
15 cent depreciation of US Dollar
(76)
(67)
10 cent appreciation of Euro
20
22
15 cent appreciation of Euro
31
34
10 cent depreciation of Euro
(17)
(18)
15 cent depreciation of Euro
(24)
(26)
*
The sales forecast is for ViiV Healthcare sales only in respect of the ViiV Healthcare put option.
Other accruals includes interest accrued on financial liabilities at amortised cost of £162 million (2023: £162 million).
An explanation of the accounting for ViiV Healthcare is set out on page 89.
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Financial statements
Investor information
GSK Annual Report 2024
Notes to the financial statements continued
239
30. Net debt
Listing exchange
2024
£m
2023
£m
Current assets:
Liquid investments
21
42
Cash and cash equivalents
3,870
2,936
3,891
2,978
Short-term borrowings:
Commercial paper
–
(815)
Bank loans, overdrafts and other
(762)
(191)
3.000% US$ US Medium Term Note 2024
New York Stock Exchange
–
(784)
1.375% € Euro Medium Term Note 2024
London Stock Exchange
–
(867)
4.000% € Euro Medium Term Note 2025
London Stock Exchange
(622)
–
3.625% US$ US Medium Term Note 2025
New York Stock Exchange
(797)
–
Lease liabilities
(168)
(156)
(2,349)
(2,813)
Long-term borrowings:
4.000% € Euro Medium Term Note 2025
London Stock Exchange
–
(650)
3.625% US$ US Medium Term Note 2025
New York Stock Exchange
–
(783)
1.000% € Euro Medium Term Note 2026
London Stock Exchange
(581)
(608)
1.250% € Euro Medium Term Note 2026
London Stock Exchange
(829)
(867)
3.000% € Euro Medium Term Note 2027
London Stock Exchange
(414)
(434)
3.375% £ Euro Medium Term Note 2027
London Stock Exchange
(307)
(306)
3.875% US$ US Medium Term Note 2028
New York Stock Exchange
(1,393)
(1,370)
0.883% ¥ Euro Medium Term Note 2028
London Stock Exchange
(216)
(235)
1.250% £ Euro Medium Term Note 2028
London Stock Exchange
(746)
(745)
3.375% US$ US Medium Term Note 2029
New York Stock Exchange
(792)
(778)
1.375% € Euro Medium Term Note 2029
London Stock Exchange
(414)
(433)
1.750% € Euro Medium Term Note 2030
London Stock Exchange
(621)
(650)
2.875% € Euro Medium Term Note 2031
London Stock Exchange
(576)
–
3.125% € Euro Medium Term Note 2032
London Stock Exchange
(577)
(604)
5.250% £ Euro Medium Term Note 2033
London Stock Exchange
(567)
(566)
5.375% US$ US Medium Term Note 2034
London Stock Exchange
(396)
(390)
1.625% £ Euro Medium Term Note 2035
London Stock Exchange
(745)
(745)
3.250% € Euro Medium Term Note 2036
London Stock Exchange
(494)
–
6.375% US$ US Medium Note 2038
New York Stock Exchange
(2,176)
(2,139)
6.375% £ Euro Medium Term Note 2039
London Stock Exchange
(627)
(627)
5.250% £ Euro Medium Term Note 2042
London Stock Exchange
(472)
(472)
4.200% US$ US Medium Term Note 2043
New York Stock Exchange
(392)
(385)
4.250% £ Euro Medium Term Note 2045
London Stock Exchange
(366)
(366)
Other long-term borrowings
(2)
(1)
Lease liabilities
(934)
(1,051)
(14,637)
(15,205)
Net debt
(13,095)
(15,040)
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Financial statements
Investor information
GSK Annual Report 2024
Notes to the financial statements continued
240
30. Net debt continued
Current assets
Liquid investments are classified as financial assets at amortised cost. At 31 December 2024, they included US Treasury Notes and
other government bonds. The effective interest rate on liquid investments at 31 December 2024 was approximately 4.3% (2023:
approximately 0.9%). Liquid investment balances at 31 December 2024 earning interest at floating rates amount to £11 million
(2023: £31 million). Liquid investment balances at 31 December 2024 earning interest at fixed rates amount to £10 million (2023:
£11 million).
Balances reported within cash and cash equivalents have an original maturity of three months or less. The effective interest rate on
cash and cash equivalents at 31 December 2024 was approximately 4.8% (2023: approximately 4.7%). Cash and cash equivalents
at 31 December 2024 earning interest at floating and fixed rates amounted to £3,746 million and £1 million respectively (2023:
£2,720 million and £38 million) and non-interest bearing holdings amounted to £123 million (2023: £178 million).
GSK’s policy regarding the credit quality of cash and cash equivalents is set out in Note 44, ‘Financial instruments and related
disclosures’.
Short-term borrowings
GSK has a $10 billion (£8.0 billion) US commercial paper programme. There was no US commercial paper in issue at 31 December
2024 (2023: $850 million (£667 million)). GSK has a £5 billion Euro commercial paper programme. There was no Euro commercial
paper in issue at 31 December 2024 (2023: €170 million (£148 million)). GSK has £1.6 billion of three-year committed facilities and
$2.2 billion (£1.8 billion) of 364 day committed facilities. The three-year committed facilities were signed in February 2022 and
extended by one year in August 2024 to September 2027. The 364-day committed facilities were signed in September 2024. All
facilities were undrawn at 31 December 2024.
There was no commercial paper in issue at 31 December 2024. The weighted average interest rate on commercial paper
borrowings at 31 December 2023 was 5.1%.
The weighted average interest rate on current bank loans and overdrafts at 31 December 2024 was 3.4% (2023: 4.6%).
The average effective pre-swap interest rate of notes classified as short-term at 31 December 2024 was 3.9% (2023: 2.4%).
Long-term borrowings
At 31 December 2024 GSK had long-term borrowings of £14.6 billion (2023: £15.2 billion), of which £8.4 billion (2023: £8.7 billion) fell
due in more than five years.
The average effective pre-swap interest rate of all notes in issue at 31 December 2024 was approximately 3.8% (2023:
approximately 3.7%).
Long-term borrowings repayable after five years carry interest at effective rates between 1.7% and 6.4% (2023: 1.5% and 6.6%), with
repayment dates ranging from 2030 to 2045 (2023: 2029 to 2045).
During 2023, through a bilateral buyback of outstanding Sterling Notes, GSK repurchased £76 million of the 5.250% £ Euro Medium
Term Note 2033 and £69 million of the 6.375% £ Euro Medium Term Note 2039.
Effective rates shown for 2023 exclude the impact of one-off premiums associated with the repurchase of the Sterling Notes.
Pledged assets
The Group held pledged investments in US Treasury Notes with a par value of $26 million (£21 million), (2023: $54 million
(£42 million)) as security against irrevocable letters of credit issued on the Group’s behalf in respect of the Group’s self-insurance
activity. Provisions in respect of self-insurance are included within the provisions for legal and other disputes discussed in Note 32,
'Other provisions’.
Lease liabilities
The total cash outflow for leases for the year ended 31 December 2024 was £256 million (2023: £197 million).
The maturity analysis of discounted lease liabilities recognised on the Group balance sheet is as follows:
2024
£m
2023
£m
Rental payments due within one year
168
156
Rental payments due between one and two years
222
214
Rental payments due between two and three years
146
134
Rental payments due between three and four years
109
114
Rental payments due between four and five years
73
88
Rental payments due after five years
384
501
Total lease liabilities
1,102
1,207
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GSK Annual Report 2024
Notes to the financial statements continued
241
31. Pensions and other post-employment benefits
Pension and other post-employment costs
2024
£m
2023
£m
2022
£m
UK pension schemes
120
96
114
US pension schemes
40
56
48
Other overseas pension schemes
151
146
154
Unfunded post-retirement healthcare schemes
57
58
53
368
356
369
Analysed as:
Funded defined benefit/hybrid pension schemes
132
134
152
Unfunded defined benefit pension schemes
29
35
31
Unfunded post-retirement healthcare schemes
57
58
53
Defined benefit schemes
218
227
236
Defined contribution pension schemes
150
129
133
368
356
369
The costs of the defined benefit pension and post-retirement healthcare schemes are charged in the income statement as follows:
2024
£m
2023
£m
2022
£m
Cost of sales
87
94
104
Selling, general and administration
92
91
90
Research and development
39
42
42
218
227
236
GSK entities operate pension arrangements which cover the Group’s material obligations to provide pensions to retired employees.
These arrangements have been developed in accordance with local practices in the countries concerned. Pension benefits can be
provided by state schemes; by defined contribution schemes, whereby retirement benefits are determined by the value of funds
arising from contributions paid in respect of each employee; or by defined benefit schemes, whereby retirement benefits are based
on factors such as employee pensionable remuneration and length of service.
Pension costs of defined benefit schemes for accounting purposes have been calculated using the projected unit credit method. In
certain countries pension benefits are provided on an unfunded basis, some administered by trustee companies. Formal,
independent, actuarial valuations of the Group’s main plans are undertaken regularly, normally at least every three years.
Remeasurement movements in the year are recognised through the statement of comprehensive income. Discount rates are
derived from AA rated corporate bond yields except in countries where there is no deep market in corporate bonds where
government bond yields are used. Discount rates are selected to reflect the term of the expected benefit payments. Projected
inflation rates and pension increases are long-term predictions based on the yield gap between long-term index-linked and fixed
interest government bonds. In the UK, mortality rates are determined by adjusting the SAPS S3 standard mortality tables to reflect
recent scheme experience. These rates are then projected to reflect improvements in life expectancy in line with the CMI 2023
projections with a long-term rate of improvement of 1.0% per year for both males and females. In the US, mortality rates are
calculated using the PRI-2012 white collar table adjusted to reflect recent experience. These rates are projected using MP-2020 to
allow for future improvements in life expectancy.
The average life expectancy assumed now for an individual at the age of 60 and projected to apply in 2044 for an individual then
at the age of 60 is as follows:
UK
US
Male
Years
Female
Years
Male
Years
Female
Years
Current
26.8
28.3
27.4
28.8
Projected for 2044
27.9
29.5
28.9
30.2
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GSK Annual Report 2024
Notes to the financial statements continued
242
31. Pensions and other post-employment benefits continued
The assets of funded schemes are generally held in separately administered trusts, either as specific assets or as a proportion of a
general fund, or are insurance contracts. Assets are invested in different classes in order to maintain a balance between risk and
return. Investments are diversified to limit the financial effect of the failure of any individual investment. The target exposure for
three of the four UK plans is split 36% to return-seeking assets and 64% to liability-matching assets. During 2019, a buy-in insurance
contract was purchased to cover substantially all of the obligations of the other UK plan. At 31 December 2024, the value of the
insurance contract was £340 million (2023: £387 million). The asset allocation of the US plans is currently set at 25% return-seeking
assets and 75% liability-matching assets.
The pension plans are exposed to risk that arises because the market value of the plans’ assets might decline or the estimated value
of the plans’ liabilities might increase.
Within the broad investment strategy outlined above, the return-seeking assets are primarily intended to generate future returns
while the liability-matching assets are intended to match future pension obligations. Each pool invests across a broad range of
assets. The main risks within the portfolios are against credit risk, interest rates, long-term inflation, equities, property, currency and
bank counterparty risk.
The plan liabilities are a series of future cash flows with relatively long duration. On an IAS 19 basis, these cash flows are sensitive to
changes in the expected long-term inflation rate and the discount rate (AA corporate bond yield curve) where an increase in long-
term inflation corresponds with an increase in the liabilities, and an increase in the discount rate corresponds with a decrease in the
liabilities.
The interest rate risk in the US is partially hedged, with the target based on an accounting measure of the plan liabilities.
For the UK plans, there is an interest rate and inflation hedging strategy in place. The targets are based on an economic measure of
the plan liabilities.
Climate-related impacts, along with other environmental, social and governance (ESG) considerations, can be financially material
with regard both to expected returns and to risk implications. The incorporation of such considerations into investment policy is
subject to local regulations and fiduciary obligations.
In the UK, the defined benefit pension schemes operated for the benefit of former Glaxo Wellcome employees and former
SmithKline Beecham employees remain separate. These schemes were closed to new entrants in 2001 and subsequent UK
employees are entitled to join a defined contribution scheme. In addition, the Group operates a number of post-retirement
healthcare schemes, the principal one of which is in the US.
The UK defined benefit plans closed to future accrual effective from 31 March 2022. As a result, post closure the accrued benefits of
active participants are revalued in line with inflation (RPI for the legacy Glaxo Wellcome plans and CPI for the legacy SmithKline
Beecham plans subject to the relevant caps for each arrangement) rather than capped pay increases. From 1 April 2022, former
defined benefit plans employees were transferred to the defined contribution plans. All defined benefit plan participants who were
still active at 1 April 2022 received a defined pension contribution of £10,000 each in 2022.
The cash funding or technical provision deficits of £1,080 million identified in the 31 December 2020 pension scheme valuations in
three GSK UK defined benefit pension schemes and increased by £7 million notional interest, were fully paid in 2023, (2023:
£353 million; 2022: £691 million). The contributions were collateralised by the creation of three Scottish Limited Partnerships (SLPs)
during the GSK Consumer Healthcare Holdings Limited demerger, each SLP providing a funding mechanism for each of the three
principal UK defined benefit pension schemes (two benefiting current and former Glaxo Wellcome employees, with the third
benefiting current and former SmithKline Beecham employees).
The US cash balance pension plan closed to future accrual from 1 January 2021.
The Group has applied the following financial assumptions in assessing the defined benefit liabilities:
UK
US
Rest of World
2024
% pa
2023
% pa
2022
% pa
2024
% pa
2023
% pa
2022
% pa
2024
% pa
2023
% pa
2022
% pa
Rate of increase of future earnings
n/a
n/a
n/a
n/a
n/a
n/a
3.20
3.20
3.40
Discount rate
5.50
4.60
4.80
5.50
5.00
5.30
3.30
3.10
3.40
Expected pension increases
2.90
2.90
3.10
n/a
n/a
n/a
2.40
2.50
2.40
Cash balance credit/conversion rate
n/a
n/a
n/a
4.80
4.00
3.90
1.10
0.60
0.80
Inflation rate
2.90
2.90
3.10
2.50
2.50
2.50
1.90
2.00
2.30
Sensitivity analysis detailing the effect of changes in assumptions is provided on page 250. The analysis provided reflects the
assumption changes which have the most material impact on the results of the Group.
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Investor information
GSK Annual Report 2024
Notes to the financial statements continued
243
31. Pensions and other post-employment benefits continued
The amounts recorded in the income statement and statement of comprehensive income for the three years ended 31 December
2024 in relation to the defined benefit pension and post-retirement healthcare schemes were as follows:
Pensions
Post-retirement
benefits
2024
UK
£m
US
£m
Rest of World
£m
Group
£m
Group
£m
Amounts charged to operating profit
Current service cost
–
3
94
97
14
Past service cost
18
–
–
18
–
Net interest (income)/cost
(15)
26
14
25
43
Gains from settlements
–
–
(2)
(2)
–
Expenses
12
11
–
23
–
15
40
106
161
57
Remeasurement gains/(losses) recorded in the statement of
comprehensive income
237
90
129
456
50
Pensions
Post-retirement
benefits
2023
UK
£m
US
£m
Rest of World
£m
Group
£m
Group
£m
Amounts charged to operating profit
Current service cost
—
5
91
96
12
Past service cost/(credit)
3
–
–
3
–
Net interest (income)/cost
(5)
35
16
46
47
Gains from settlements
–
–
(6)
(6)
–
Expenses
14
16
–
30
(1)
12
56
101
169
58
Remeasurement gains/(losses) recorded in the statement of
comprehensive income
28
45
38
111
(40)
Pensions
Post-retirement
benefits
2022
UK
£m
US
£m
Rest of World
£m
Group
£m
Group
£m
Amounts charged to operating profit
Current service cost
13
7
126
146
22
Past service cost/(credit)
6
—
—
6
—
Net interest (income)/cost
(11)
20
9
18
32
Gains from settlements
–
–
(22)
(22)
–
Expenses
14
21
—
35
(1)
22
48
113
183
53
Remeasurement gains/(losses) recorded in the statement of
comprehensive income1
(1,169)
36
261
(872)
228
The amounts included within past service costs in the UK included £18 million (2023: £3 million; 2022: £6 million) of augmentation
costs which arose from Major restructuring programmes.
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Investor information
GSK Annual Report 2024
Notes to the financial statements continued
244
31. Pensions and other post-employment benefits continued
A summarised balance sheet presentation of the Group defined benefit pension schemes and other post-retirement benefits is set
out in the table below:
2024
£m
2023
£m
2022
£m
Recognised in other non-current assets:
Pension schemes in surplus
898
634
229
Recognised in pensions and other post-employment benefits:
Pension schemes in deficit
(1,001)
(1,397)
(1,585)
Post-retirement benefits
(863)
(943)
(994)
(1,864)
(2,340)
(2,579)
In the event of a plan wind-up, GSK believes the UK pension scheme rules provide the company with the right to a refund of surplus
assets following the full settlement of plan liabilities. As a result, the net surplus in the UK defined benefit pension schemes is
recognised in full.
The fair values of the assets and liabilities of the UK and US defined benefit pension schemes, together with aggregated data for
other defined benefit pension schemes in the Group are as follows:
At 31 December 2024
UK
£m
US
£m
Rest of World
£m
Group
£m
Equities:
– listed
1,669
472
364
2,505
– unlisted
–
–
2
2
Multi-asset funds
923
–
–
923
Property:
– listed
–
–
–
–
– unlisted
407
99
24
530
Corporate bonds:
– listed
2,104
739
208
3,051
– unlisted
–
–
15
15
Government bonds:
– listed
4,107
772
489
5,368
Insurance contracts
883
–
822
1,705
Other (liabilities)/assets
(1,291)
125
81
(1,085)
Fair value of assets
8,802
2,207
2,005
13,014
Present value of scheme obligations
(8,241)
(2,596)
(2,280)
(13,117)
Net surplus/(obligation)
561
(389)
(275)
(103)
Included in other non-current assets
725
–
173
898
Included in pensions and other post-employment benefits
(164)
(389)
(448)
(1,001)
561
(389)
(275)
(103)
Actual return/(loss) on plan assets
(213)
132
121
40
The multi-asset funds comprise investments in pooled investment vehicles that are invested across a range of asset classes,
increasing diversification within the growth portfolio. The investments in this asset class with a quoted market price were fully
redeemed during the year (2023: £209 million).
The ‘Other (liabilities)/assets’ category comprises cash and mark to market values of derivative positions.
Index-linked gilts held as part of a UK repo programme are included in government bonds. The related loan of £1,634 million at
31 December 2024 (2023: £1,853 million; 2022: £2,376 million) is deducted within ‘Other assets’.
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GSK Annual Report 2024
Notes to the financial statements continued
245
31. Pensions and other post-employment benefits continued
At 31 December 2023
UK
£m
US
£m
Rest of World
£m
Group
£m
Equities:
– listed
1,647
447
349
2,443
– unlisted
–
–
2
2
Multi-asset funds
852
–
–
852
Property:
– listed
–
–
–
–
– unlisted
467
119
24
610
Corporate bonds:
– listed
2,019
698
205
2,922
– unlisted
–
–
15
15
Government bonds:
– listed
4,897
774
527
6,198
Insurance contracts
990
–
771
1,761
Other (liabilities)/assets
(1,374)
104
89
(1,181)
Fair value of assets
9,498
2,142
1,982
13,622
Present value of scheme obligations
(9,222)
(2,757)
(2,406)
(14,385)
Net surplus/(obligation)
276
(615)
(424)
(763)
Included in other non-current assets
457
–
177
634
Included in pensions and other post-employment benefits
(181)
(615)
(601)
(1,397)
276
(615)
(424)
(763)
Actual return on plan assets
647
196
138
981
At 31 December 2022
UK
£m
US
£m
Rest of World
£m
Group
£m
Equities:
– listed
1,351
437
371
2,159
– unlisted
–
–
2
2
Multi-asset funds
1,101
–
–
1,101
Property:
– listed
–
–
19
19
– unlisted
464
140
1
605
Corporate bonds:
– listed
1,692
779
124
2,595
– unlisted
–
–
15
15
Government bonds:
– listed
4,048
723
558
5,329
Insurance contracts
1,003
–
691
1,694
Other (liabilities)/assets
(645)
181
89
(375)
Fair value of assets
9,014
2,260
1,870
13,144
Present value of scheme obligations
(9,117)
(3,030)
(2,353)
(14,500)
Net surplus/(obligation)
(103)
(770)
(483)
(1,356)
Included in Other non-current assets
109
–
120
229
Included in Pensions and other post-employment benefits
(212)
(770)
(603)
(1,585)
(103)
(770)
(483)
(1,356)
Actual return on plan assets
(4,710)
(253)
(550)
(5,513)
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Investor information
GSK Annual Report 2024
Notes to the financial statements continued
246
31. Pensions and other post-employment benefits continued
Pensions
Post-retirement
benefits
Movements in fair values of assets
UK
£m
US
£m
Rest of World
£m
Group
£m
Group
£m
Assets at 1 January 2022
13,632
2,524
2,906
19,062
–
Exchange adjustments
–
286
122
408
–
Interest income
271
71
28
370
–
Expenses
(14)
(21)
–
(35)
–
Settlements and curtailments
–
–
(8)
(8)
–
Remeasurement
(4,981)
(324)
(578)
(5,883)
–
Employer contributions
755
50
114
919
117
Scheme participants’ contributions
–
–
15
15
18
Transfer to assets held for sale/distribution
–
–
(624)
(624)
–
Benefits paid
(649)
(326)
(105)
(1,080)
(135)
Assets at 31 December 2022
9,014
2,260
1,870
13,144
–
Exchange adjustments
–
(125)
(84)
(209)
–
Interest income
430
111
60
601
–
Expenses
(14)
(16)
–
(30)
–
Settlements and curtailments
–
–
2
2
–
Remeasurement
217
85
78
380
–
Employer contributions
363
125
118
606
98
Scheme participants’ contributions
–
–
11
11
18
Benefits paid
(512)
(298)
(73)
(883)
(116)
Assets at 31 December 2023
9,498
2,142
1,982
13,622
–
Exchange adjustments
–
37
(116)
(79)
–
Interest income
426
102
59
587
–
Expenses
(12)
(11)
–
(23)
–
Settlements and curtailments
–
–
(1)
(1)
–
Remeasurement
(639)
30
62
(547)
–
Employer contributions
63
179
109
351
94
Scheme participants’ contributions
–
–
11
11
18
Benefits paid
(534)
(272)
(101)
(907)
(112)
Assets at 31 December 2024
8,802
2,207
2,005
13,014
–
During 2024, the Group made a deficit reduction contribution to the UK pension schemes of £30 million (2023:£nil), eliminating the
deficit identified in the 31 December 2023 triennial funding valuation. The Group also made a contribution to the US Cash Balance
Plan of £150 million (2023: £96 million).
Employer contributions for 2025 are estimated to be approximately £270 million in respect of defined benefit pension schemes and
£80 million in respect of other post-retirement benefits.
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Notes to the financial statements continued
247
31. Pensions and other post-employment benefits continued
Pensions
Post-retirement
benefits
Movements in defined benefit obligations
UK
£m
US
£m
Rest of World
£m
Group
£m
Group
£m
Obligations at 1 January 2022
(13,299)
(3,248)
(3,644)
(20,191)
(1,243)
Exchange adjustments
–
(371)
(124)
(495)
(125)
Service cost
(13)
(7)
(126)
(146)
(22)
Past service cost
(6)
–
–
(6)
–
Interest cost
(260)
(91)
(37)
(388)
(32)
Settlements and curtailments
–
–
29
29
–
Remeasurement
3,812
360
839
5,011
228
Scheme participants’ contributions
–
–
(15)
(15)
(18)
Transfer to assets held for sale/distribution
–
–
621
621
83
Benefits paid
649
326
105
1,080
135
Obligations at 31 December 2022
(9,117)
(3,031)
(2,352)
(14,500)
(994)
Exchange adjustments
–
166
87
253
53
Service cost
–
(5)
(91)
(96)
(13)
Past service cost
(3)
–
–
(3)
–
Interest cost
(425)
(145)
(76)
(646)
(47)
Settlements and curtailments
–
–
4
4
–
Remeasurement
(189)
(40)
(40)
(269)
(40)
Scheme participants’ contributions
–
–
(11)
(11)
(18)
Benefits paid
512
298
73
883
116
Obligations at 31 December 2023
(9,222)
(2,757)
(2,406)
(14,385)
(943)
Exchange adjustments
–
(40)
133
93
(7)
Service cost
–
(3)
(94)
(97)
(14)
Past service cost
(18)
–
–
(18)
–
Interest cost
(411)
(128)
(73)
(612)
(43)
Settlements and curtailments
–
–
3
3
–
Remeasurement
876
60
67
1,003
50
Scheme participants’ contributions
–
–
(11)
(11)
(18)
Benefits paid
534
272
101
907
112
Obligations at 31 December 2024
(8,241)
(2,596)
(2,280)
(13,117)
(863)
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Notes to the financial statements continued
248
31. Pensions and other post-employment benefits continued
The defined benefit pension obligation is analysed as follows:
2024
£m
2023
£m
2022
£m
Funded
(12,564)
(13,782)
(13,887)
Unfunded
(553)
(603)
(613)
(13,117)
(14,385)
(14,500)
The liability for the US post-retirement healthcare scheme has been assessed using the same assumptions as for the US pension
scheme, together with the assumption for future medical inflation of 6.50% (2023: 6.75%) in 2024, grading down to 5% in 2031 and
thereafter. At 31 December 2024, the US post-retirement healthcare scheme obligation was £748 million (2023: £785 million; 2022:
£870 million). Post-retirement benefits are unfunded.
The movement in the net defined benefit liability is as follows:
2024
£m
2023
£m
2022
£m
At 1 January
(763)
(1,356)
(1,129)
Exchange adjustments
14
44
(87)
Service cost
(97)
(96)
(146)
Past service cost
(18)
(3)
(6)
Interest cost
(25)
(45)
(18)
Settlements and curtailments
2
6
21
Remeasurements:
Return on plan assets, excluding amounts included in interest
(547)
380
(5,883)
Gain/(loss) from change in demographic assumptions
90
135
92
Gain/(loss) from change in financial assumptions
890
(137)
5,868
Experience gain/(loss)
23
(267)
(949)
Employer contributions
351
606
919
Transfer to assets held for sale/distribution
–
–
(3)
Expenses
(23)
(30)
(35)
At 31 December
(103)
(763)
(1,356)
The remeasurements included within post-retirement benefits are detailed below:
2024
£m
2023
£m
2022
£m
Gain from change in demographic assumptions
7
7
21
Gain/(loss) from change in financial assumptions
44
(43)
219
Experience gain/(loss)
(1)
(4)
(12)
50
(40)
228
The defined benefit pension obligation analysed by membership category is as follows:
2024
£m
2023
£m
2022
£m
Active
1,418
1,508
1,390
Retired
8,147
8,730
8,540
Deferred
3,552
4,147
4,570
13,117
14,385
14,500
The post-retirement benefit obligation analysed by membership category is as follows:
2024
£m
2023
£m
2022
£m
Active
277
277
306
Retired
586
666
688
Deferred
–
–
–
863
943
994
The weighted average duration of the defined benefit obligation is as follows:
2024
years
2023
years
2022
years
Pension benefits
11
11
12
Post-retirement benefits
9
10
10
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Notes to the financial statements continued
249
31. Pensions and other post-employment benefits continued
Sensitivity analysis
The effect of changes in assumptions used on the benefit obligations and on the 2025 annual defined benefit pension and post-
retirement costs are detailed below. This information has been determined by taking into account the duration of the liabilities and
the overall profile of the plan memberships.
0.25%
increase
£m
0.25%
decrease
£m
Discount rate
(Decrease)/increase in annual pension cost
(19)
17
Increase/(decrease) in annual post-retirement benefits cost
1
(1)
(Decrease)/increase in pension obligation
(309)
320
(Decrease)/increase in post-retirement benefits obligation
(17)
18
0.75%
increase
£m
0.75%
decrease
£m
(Decrease)/increase in annual pension cost
(55)
51
Increase/(decrease) in annual post-retirement benefits cost
2
(3)
(Decrease)/increase in pension obligation
(883)
1,012
(Decrease)/increase in post-retirement benefits obligation
(49)
55
0.25%
increase
£m
0.25%
decrease
£m
Inflation rate
Increase/(decrease) in annual pension cost
13
(12)
Increase/(decrease) in pension obligation
234
(229)
0.75%
increase
£m
0.75%
decrease
£m
Increase/(decrease) in annual pension cost
42
(36)
Increase/(decrease) in pension obligation
737
(646)
1 year
increase
£m
Life expectancy
Increase in annual pension cost
20
Increase in annual post-retirement benefits cost
2
Increase in pension obligation
380
Increase in post-retirement benefits obligation
29
1%
increase
£m
Rate of future healthcare inflation
Increase in annual post-retirement benefits cost
2
Increase in post-retirement benefits obligation
22
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Notes to the financial statements continued
250
32. Other provisions
Legal
and other
disputes
£m
Major
restructuring
programmes
£m
Employee-
related
provisions
£m
Other
provisions
£m
Total
£m
At 1 January 2024
267
282
383
307
1,239
Exchange adjustments
57
(3)
(6)
(14)
34
Charge for the year
2,039
195
216
161
2,611
Reversed unused
(50)
(51)
(52)
(30)
(183)
Unwinding of discount
18
1
–
–
19
Utilised
(885)
(149)
(123)
(70)
(1,227)
Reclassifications and other movements
–
16
8
36
60
Transfer to pension obligations
–
(18)
–
–
(18)
At 31 December 2024
1,446
273
426
390
2,535
To be settled within one year
1,393
178
178
197
1,946
To be settled after one year
53
95
248
193
589
At 31 December 2024
1,446
273
426
390
2,535
Legal and other disputes
The Group is involved in a substantial number of legal and other
disputes, including notification of possible claims, as set out in
Note 47, ‘Legal proceedings’. Provisions for legal and other
disputes include amounts relating to product liability, anti-trust,
government investigations, contract terminations and self
insurance.
The Group may become involved in significant legal
proceedings in respect of which it is not possible to
meaningfully assess whether the outcome will result in a
probable outflow, or to quantify or reliably estimate the liability,
if any, that could result from ultimate resolution of the
proceedings. In these cases, the Group would provide
appropriate disclosures about such cases, but no provision
would be made.
The net charge for the year of £1,989 million (including reversals
and estimated insurance recoveries) primarily reflected the
£1.8 billion charge for the Zantac settlement and related legal
fees, as well as provisions for other product liability cases,
commercial disputes and various other government
investigations.
The discount on the provision is £18 million in 2024 (2023:
£10 million). The discount was calculated using risk-adjusted
projected cash flows and risk-free rates of return.
In respect of product liability claims related to certain products,
provision is made when there is sufficient history of claims made
and settlements to enable management to make a reliable
estimate of the provision required to cover unasserted claims,
and to determine the probability of the outflow of cash. The
ultimate liability for such matters may vary from the amounts
provided and is dependent upon the outcome of litigation
proceedings, investigations and possible settlement
negotiations.
The Group’s position could change over time, and, therefore,
there can be no assurance that any losses that result from the
outcome of any legal proceedings will not exceed by a material
amount the amount of the provisions reported in the Group’s
financial statements.
It is in the nature of the Group’s business that a number of these
matters may be the subject of negotiation and litigation over
many years. Litigation proceedings, including the various
appeal procedures, often take many years to reach resolution,
and out-of-court settlement discussions can also often be
protracted. Indemnified disputes will result in a provision charge
and a corresponding receivable.
The Group is in potential settlement discussions in a number of
the disputes for which amounts have been provided and, based
on its current assessment of the progress of these disputes,
estimates that £1,393 million of the amount provided at
31 December 2024 will be settled within one year, primarily
related to the resolution of Zantac. For a discussion of legal
issues, see Note 47, ‘Legal proceedings’.
Major restructuring programmes
During 2024, the Group had two major restructuring
programmes: the Separation restructuring programme which
focused on the separation of GSK into two companies and is
now largely complete, plus the Significant Acquisitions
programme which is focused on the integration of recent
acquisitions.
Restructuring provisions primarily include severance costs when
management has made a formal decision to eliminate certain
positions and this has been communicated to the groups of
employees affected and appropriate consultation procedures
completed, where appropriate. No provision is made for staff
severance payments that are paid immediately.
The discount on the provisions increased by £1 million in 2024
(2023: increased by £0.4 million).
Transfer to pension obligations reflects augmentation costs of
£18 million relating to defined benefit plans arising from staff
redundancies, as shown in Note 31, ‘Pensions and other post-
employment benefits’.
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Notes to the financial statements continued
251
32. Other provisions continued
Employee-related provisions
Employee-related provisions include obligations for certain
medical benefits to disabled employees and their spouses in
the US.
At 31 December 2024, the provision for these benefits
amounted to £46 million (2023: £48 million). Other employee
benefits reflect a variety of provisions for severance costs,
jubilee awards and other long-service benefits.
Given the nature of these provisions, the amounts are likely to
be settled over many years.
Other provisions
Included in other provisions are provisions for onerous contracts,
insurance provisions and a number of other provisions including
vehicle insurance, environmental remediation and regulatory
matters.
33. Contingent consideration liabilities
The consideration for certain acquisitions includes amounts contingent on future events such as development milestones or sales
performance. The Group has provided for the fair value of this contingent consideration as follows:
Shionogi-ViiV
Healthcare
£m
Affinivax
£m
Novartis
Vaccines
£m
Other
£m
Total
£m
At 1 January 2022
5,559
–
479
38
6,076
Remeasurement through income statement
1,431
17
231
(34)
1,645
Exchange movement through reserves
–
2
–
–
2
Initial recognition from business combinations
–
482
–
–
482
Cash payments: operating cash flows
(1,031)
–
(27)
–
(1,058)
Cash payments: investing activities
(69)
–
(10)
–
(79)
At 31 December 2022
5,890
501
673
4
7,068
Remeasurement through income statement
934
44
(210)
–
768
Exchange movement through reserves
–
(29)
–
–
(29)
Cash payments: operating cash flows
(1,106)
–
(28)
–
(1,134)
Cash payments: investing activities
–
–
(11)
–
(11)
At 31 December 2023
5,718
516
424
4
6,662
Initial recognition from business combinations
–
–
–
104
104
Remeasurement through income statement
1,533
(22)
215
36
1,762
Exchange movement through reserves
–
8
–
(2)
6
Cash payments: operating cash flows
(1,190)
–
(45)
–
(1,235)
Cash payments: investing activities
–
–
(19)
–
(19)
At 31 December 2024
6,061
502
575
142
7,280
Contingent consideration payable of £96 million was recognised at acquisition for the purchase of 100% of the equity of Aiolos Bio,
Inc.. Further information on the acquisition is provided in Note 41, ‘Acquisitions and disposals’.
Of the contingent consideration payable at 31 December 2024, £1,172 million (2023: £1,053 million) is expected to be paid within one
year.
The considerations payable for the acquisition of the Shionogi-ViiV Healthcare joint venture, Affinivax and the Novartis Vaccines
business are expected to be paid over a number of years. As a result, the total estimated liabilities are discounted to their present
values, shown above. The Shionogi-ViiV Healthcare contingent consideration liability is discounted at 8% (2023: 8%), the Affinivax
contingent consideration liability is discounted at 9.0% (2023: 8.5%) and the Novartis Vaccines contingent consideration liability is
discounted at 8.0% (2023: 7.5%) for commercialised products and at 9.0% (2023: 8.5%) for pipeline assets.
The Shionogi-ViiV Healthcare and Novartis Vaccines contingent consideration liabilities are calculated principally based on the
forecast sales performance of specified products over the lives of those products.
The Affinivax contingent consideration is based upon two potential milestone payments, each of $0.6 billion (£0.5 billion) which will
be paid if certain paediatric clinical development milestones are achieved.
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Notes to the financial statements continued
252
33. Contingent consideration liabilities continued
The table below shows on an indicative basis the income statement and balance sheet sensitivity to reasonably possible changes
in key inputs to the valuations of the largest contingent consideration liabilities.
2024
2023
Increase/(decrease) in financial liability and loss/(gain) in
income statement
Shionogi-ViiV
Healthcare
£m
Affinivax
£m
Novartis
Vaccines
£m
Shionogi-ViiV
Healthcare
£m
Affinivax
£m
Novartis
Vaccines
£m
10% increase in sales forecasts*
573
N/A
83
539
n/a
63
15% increase in sales forecasts*
857
N/A
125
807
n/a
94
10% decrease in sales forecasts*
(572)
N/A
(83)
(539)
n/a
(62)
15% decrease in sales forecasts*
(856)
N/A
(125)
(808)
n/a
(92)
1% increase in discount rate
(180)
(14)
(38)
(174)
(12)
(26)
1.5% increase in discount rate
(267)
(20)
(55)
(256)
(18)
(38)
1% decrease in discount rate
194
14
43
184
13
30
1.5% decrease in discount rate
298
21
67
281
19
47
10 cent appreciation of US Dollar
431
43
14
386
44
11
15 cent appreciation of US Dollar
677
68
22
604
69
17
10 cent depreciation of US Dollar
(368)
(37)
(12)
(330)
(38)
(8)
15 cent depreciation of US Dollar
(533)
(54)
(17)
(478)
(54)
(12)
10 cent appreciation of Euro
77
N/A
22
91
n/a
19
15 cent appreciation of Euro
123
N/A
35
144
n/a
30
10 cent depreciation of Euro
(65)
N/A
(19)
(79)
n/a
(16)
15 cent depreciation of Euro
(95)
N/A
(27)
(113)
n/a
(22)
10% increase in probability of milestone success
N/A
73
22
n/a
75
21
10% decrease in probability of milestone success
N/A
(73)
(11)
n/a
(75)
(10)
*
The sales forecast is for ViiV Healthcare sales only in respect of the Shionogi-ViiV Healthcare contingent consideration. An explanation of the accounting for
ViiV Healthcare is set out on page 89.
34. Other non-current liabilities
2024
£m
2023
£m
Accruals
6
4
Deferred income
165
254
Other payables
929
849
1,100
1,107
Other payables includes a number of employee-related liabilities including employee savings plans.
35. Contingent liabilities
At 31 December 2024, contingent liabilities where GSK has a present obligation as a result of a past event, comprising guarantees
and other items arising in the normal course of business, amounted to £26 million (2023: £32 million). At 31 December 2024, £0.5
million (2023: £0.2 million) of financial assets were pledged as collateral for contingent liabilities. Provision is made for the outcome
of tax, legal and other disputes where it is both probable that the Group will suffer an outflow of funds and it is possible to make a
reliable estimate of that outflow. If it is not possible to meaningfully assess whether the outcomes will result in a probable outflow, or
to quantify or reliably estimate the liability, if any, no provision is recorded. Descriptions of the significant legal and other disputes to
which the Group is a party are set out in Note 47, ‘Legal proceedings’.
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Notes to the financial statements continued
253
36. Commitments
Contractual obligations and commitments
2024
£m
2023
£m
Contracted for but not provided in the financial statements:
Intangible assets
19,183
16,329
Property, plant and equipment
754
762
Investments
203
153
20,140
17,244
The commitments related to intangible assets include milestone payments, which are dependent on successful clinical development
or on meeting specified sales targets, and which represent the maximum that would be paid if all milestones, however unlikely, are
achieved. The amounts disclosed are not risk-adjusted or discounted. The increase in intangible asset commitments in 2024 is
mainly attributable to new R&D collaborations and acquisitions, including with Shanghai Hansoh Biomedical Co. Ltd and Jiangsu
Hengrui Pharmaceuticals Co., Ltd.
In addition, within intangible assets commitments the Group has disclosed £38 million (2023: £30 million) related to nature-based
carbon credit projects, which aligns with GSK’s commitments to a net-zero, nature positive world, and within property, plant and
equipment commitments of £34 million (2023: £46 million) related to the transition to a lower-carbon propellant solution.
In the previous year, £30 million relating to nature-based carbon credits projects was included in purchase commitments and is now
included in intangible asset commitments. Lease contracts that have not commenced are not disclosed as these are not material.
For the Group's commitments related to interest on debt and future finance charges on leases refer to Note 44 'Financial
instruments’.
The table excludes any amounts already capitalised in the financial statements for the year ended 31 December 2024.
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Notes to the financial statements continued
254
37. Share capital and share premium account
Share Consolidation
Following completion of the Consumer Healthcare business demerger on 18 July 2022, GSK plc Ordinary shares were consolidated
to maintain share price comparability before and after demerger. The consolidation was approved by GSK shareholders at a
General Meeting held on 6 July 2022. Shareholders received 4 new Ordinary shares with a nominal value of 31¼ pence each for
every 5 existing Ordinary shares which had a nominal value of 25 pence each. Earnings per share, diluted earnings per share,
adjusted earnings per share and dividends per share were retrospectively adjusted to reflect the Share Consolidation in 2022.
Ordinary shares of 25p each pre-share consolidation
Ordinary shares of 31¼p each post-share consolidation
Share
premium
Number
£m
£m
Share capital issued and fully paid:
At 1 January 2022
5,387,015,059
1,347
3,301
Impact of share consolidation
(1,077,403,011)
–
–
Issued under employee share schemes
1,731,293
–
25
Ordinary shares acquired by ESOP Trusts
–
–
114
At 31 December 2022
4,311,343,341
1,347
3,440
Issued under employee share schemes
802,642
1
9
Ordinary shares acquired by ESOP Trusts
–
–
2
At 31 December 2023
4,312,145,983
1,348
3,451
Issued under employee share schemes
2,157,751
–
20
Ordinary shares acquired by ESOP Trusts
–
–
2
At 31 December 2024
4,314,303,734
1,348
3,473
At 31 December 2024, of the issued share capital, 64,314,305 shares were held in the ESOP Trusts, out of which 63,666,947 shares
were held for the future exercise of share awards and 647,358 shares were held for the Executive Supplemental Savings plan.
169,171,555 shares were held as Treasury shares and 4,080,818,273 shares were in free issue. All issued shares are fully paid and there
are no shares authorised but not in issue. The nominal, carrying and market values of the shares held in the ESOP Trusts are
disclosed in Note 45, ‘Employee share schemes’.
38. Movements in equity
Retained earnings and other reserves amounted to £8,850 million at 31 December 2024 (2023: £8,548 million; 2022: £5,811 million)
of which £452 million (2023: £451 million; 2022: £463 million) related to associates and joint ventures.
The cumulative translation exchange in equity is as follows:
Net translation exchange included in:
Retained
earnings
£m
Fair value
reserve
£m
Non-
controlling
interests
£m
Total
translation
exchange
£m
At 1 January 2022
(803)
(9)
(181)
(993)
Exchange movements on overseas net assets and net investment hedges
109
4
(28)
85
Reclassification of exchange movements on liquidation or disposal of overseas subsidiaries
and associates
2
–
–
2
Movement attributable to continuing operations
(692)
(5)
(209)
(906)
Movement attributable to discontinued operations1
263
–
112
375
At 31 December 2022
(429)
(5)
(97)
(531)
Exchange movements on overseas net assets and net investment hedges
(41)
19
(25)
(47)
Reclassification of exchange movements on liquidation or disposal of overseas subsidiaries
and associates
(34)
–
–
(34)
At 31 December 2023
(504)
14
(122)
(612)
Exchange movements on overseas net assets and net investment hedges
(380)
(12)
(4)
(396)
Reclassification of exchange movements on liquidation or disposal of overseas subsidiaries
and associates
(87)
–
–
(87)
At 31 December 2024
(971)
2
(126)
(1,095)
(1) Includes £554 million reclassification to the consolidated income statement of net exchange gains related to the demerger of the Consumer Healthcare
business.
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Notes to the financial statements continued
255
38. Movements in equity continued
The analysis of other comprehensive income by equity category is as follows:
2024
Retained
earnings
£m
Other
reserves
£m
Non-
controlling
interests
£m
Total
£m
Items that may be subsequently reclassified to income statement:
Exchange movements on overseas net assets and net investment hedges
(380)
(12)
–
(392)
Reclassification of exchange movements on liquidation or disposal of subsidiaries
and associates
(87)
–
–
(87)
Fair value movements on cash flow hedges
–
–
–
–
Deferred tax on fair value movements on cash flow hedges
–
1
–
1
Cost of hedging
–
(4)
–
(4)
Reclassification of cash flow hedges to income statement
–
4
–
4
Items that will not be reclassified to income statement:
Exchange movements on overseas net assets of non-controlling interests
–
–
(4)
(4)
Fair value movements on equity investments
–
(100)
–
(100)
Tax on fair value movements on equity investments
–
17
–
17
Remeasurement on defined benefit plans
506
–
–
506
Tax on remeasurement defined benefit plans
(122)
–
–
(122)
Fair value movements on cash flow hedges
–
8
–
8
Total other comprehensive (expense)/income for the year
(83)
(86)
(4)
(173)
2023
Retained
earnings
£m
Other
reserves
£m
Non-
controlling
interests
£m
Total
£m
Items that may be subsequently reclassified to income statement:
Exchange movements on overseas net assets and net investment hedges
(41)
19
–
(22)
Reclassification of exchange movements on liquidation or disposal of subsidiaries
and associates
(34)
–
–
(34)
Fair value movements on cash flow hedges
–
(1)
–
(1)
Deferred tax on fair value movements on cash flow hedges
–
1
–
1
Reclassification of cash flow hedges to income statement
–
4
–
4
Items that will not be reclassified to income statement:
Exchange movements on overseas net assets of non-controlling interests
–
–
(25)
(25)
Fair value movements on equity investments
–
(244)
–
(244)
Tax on fair value movements on equity investments
–
14
–
14
Remeasurement on defined benefit plans
71
–
–
71
Tax on remeasurement defined benefit plans
(41)
–
–
(41)
Fair value movements on cash flow hedges
–
(40)
–
(40)
Total other comprehensive (expense)/income for the year
(45)
(247)
(25)
(317)
2022
Retained
earnings
£m
Other
reserves
£m
Non-
controlling
interests
£m
Total
£m
Items that may be subsequently reclassified to income statement:
Exchange movements on overseas net assets and net investment hedges
109
4
–
113
Reclassification of exchange movements on liquidation or disposal of subsidiaries
and associates
2
–
–
2
Fair value movements on cash flow hedges
–
(18)
–
(18)
Deferred tax on fair value movements on cash flow hedges
–
9
–
9
Reclassification of cash flow hedges to income statement
–
14
–
14
Items that will not be reclassified to income statement:
–
–
–
–
Exchange movements on overseas net assets of non-controlling interests
–
–
(28)
(28)
Fair value movements on equity investments
–
(754)
–
(754)
Tax on fair value movements on equity investments
–
56
–
56
Remeasurement on defined benefit plans
(786)
–
–
(786)
Tax on remeasurement defined benefit plans
211
–
–
211
Fair value movements on cash flow hedges
–
(6)
–
(6)
Other comprehensive (expense)/income for the year from continuing operations
(464)
(695)
(28)
(1,187)
Other comprehensive (expense)/income for the year from discontinued operations
375
(19)
–
356
Total other comprehensive (expense)/income for the year
(89)
(714)
(28)
(831)
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GSK Annual Report 2024
Notes to the financial statements continued
256
38. Movements in equity continued
Information on net investment hedges is provided in part (d) of Note 44 ‘Financial instruments and related disclosures'.
The analysis of other reserves is as follows:
ESOP Trust
shares
£m
Fair value
reserve
£m
Cash flow
hedge reserve
£m
Other
reserves
£m
Total
£m
At 1 January 2022
(28)
383
(21)
2,129
2,463
Exchange adjustments
(36)
28
12
–
4
Transferred to retained earnings in the year on disposal of equity investments
–
(21)
17
–
(4)
Balances derecognised on demerger
–
–
(169)
–
(169)
Net fair value movement in the year (including tax)
–
(698)
141
–
(557)
Ordinary shares acquired by ESOP Trusts
(1,200)
–
–
–
(1,200)
Write-down of shares held by ESOP Trusts
911
–
–
–
911
At 31 December 2022
(353)
(308)
(20)
2,129
1,448
Exchange adjustment
26
(5)
(2)
–
19
Transferred to Retained earnings in the year on disposals of equity investments
–
33
–
–
33
Reclassification of cash flow hedges to income statement
–
–
4
–
4
Hedging gain/loss transferred to non-financial assets
–
–
36
–
36
Net fair value movement in the year (including tax)
–
(230)
(40)
–
(270)
Ordinary shares acquired by ESOP Trusts
(285)
–
–
–
(285)
Write-down of shares held by ESOP Trusts
324
–
–
–
324
At 31 December 2023
(288)
(510)
(22)
2,129
1,309
Exchange adjustments
(12)
–
–
–
(12)
Transferred to retained earnings in the year on disposal of equity investments
–
(66)
–
–
(66)
Reclassification of cash flow hedges to income statement
–
–
4
–
4
Hedging gain/(loss) transferred to non-financial assets
–
–
(6)
–
(6)
Cost of hedging
–
–
(4)
–
(4)
Net fair value movement in the year (including tax)
–
(83)
9
–
(74)
Ordinary shares acquired by ESOP Trusts
(459)
–
–
–
(459)
Write-down of shares held by ESOP Trusts
362
–
–
–
362
At 31 December 2024
(397)
(659)
(19)
2,129
1,054
Other reserves include various non-distributable merger and pre-merger reserves amounting to £1,849 million at 31 December 2024
(2023: £1,849 million; 2022: £1,849 million). Other reserves also include the capital redemption reserve created as a result of the
previous share buyback programme amounting to £280 million at 31 December 2024 (2023: £280 million; 2022: £280 million) which
ceased in 2014.
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GSK Annual Report 2024
Notes to the financial statements continued
257
39. Non-controlling interests
Total non-controlling interests includes the following individually material non-controlling interests. Other non-controlling interests
are individually not material.
ViiV Healthcare
GSK holds 78.3% of the ViiV Healthcare sub-group, giving rise to a material non-controlling interest. Summarised financial
information available at the latest practicable date in respect of the ViiV Healthcare sub-group is as follows:
2024
£m
2023
£m
2022
£m
Turnover
7,023
6,308
5,619
Profit after taxation
1,619
2,034
1,528
Other comprehensive income/(expense)
7
(19)
94
Total comprehensive income
1,626
2,015
1,622
2024
£m
2023
£m
Non-current assets
2,649
2,528
Current assets
3,479
3,330
Total assets
6,128
5,858
Current liabilities
(4,218)
(3,881)
Non-current liabilities
(8,566)
(8,453)
Total liabilities
(12,784)
(12,334)
Net liabilities
(6,656)
(6,476)
2024
£m
2023
£m
2022
£m
Net cash inflow from operating activities
2,554
2,192
3,442
Net cash outflow from investing activities
(106)
(2)
(174)
Net cash outflow from financing activities
(2,518)
(2,463)
(2,718)
Increase/(decrease) in cash and bank overdrafts in the year
(70)
(273)
550
The above financial information relates to the ViiV Healthcare group on a stand-alone basis, before the impact of Group-related
adjustments, primarily related to the recognition of preferential dividends. The profit after taxation of £1,619 million (2023:
£2,034 million; 2022: £1,528 million) is stated after charging preferential dividends payable to GSK and Pfizer and after a charge of
£1,377 million (2023: £858 million; 2022: £1,483 million) for remeasurement of contingent consideration payable. This consideration is
expected to be paid over a number of years.
The following amounts attributable to the ViiV Healthcare group are included in GSK’s financial statements:
2024
£m
2023
£m
2022
£m
Share of profit for the year attributable to non-controlling interest
357
373
415
Dividends paid to non-controlling interest
392
398
480
Non-controlling interest in the consolidated balance sheet
(683)
(648)
(611)
40. Related party transactions
At 31 December 2024, a loan of £0.8 million (2023: £0.8 million) to Index Ventures and a loan of £2.3 million (2023: £0.6 million ) to
Medicxi Ventures I LP remained due to GSK. Cash distributions were received from the investment in Medicxi Ventures I LP of £15.3
million (2023: Medicxi Ventures I LP of £10.7 million).
The Group had no other significant related party transactions which might reasonably be expected to influence decisions made by
the users of these Financial Statements.
The aggregate compensation of the Directors and GLT is given in Note 9, ‘Employee costs’.
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GSK Annual Report 2024
Notes to the financial statements continued
258
41. Acquisitions and disposals
Details of the acquisition and disposal of significant subsidiaries, associates, joint ventures and other businesses are given below:
2024
On 9 January 2024, GSK announced it had entered into an agreement to acquire 100% of Aiolos Bio, Inc. (Aiolos), a clinical stage
biopharmaceutical company focused on addressing the unmet treatment needs of patients with certain respiratory and
inflammatory conditions, for a total cash consideration of US$1,004 million (£800 million) as adjusted for working capital acquired
paid upon closing and up to US$400 million (£319 million) in certain success-based regulatory milestone payments. The estimated
fair value of the contingent consideration payable was US$120 million (£96 million). In addition, GSK will also be responsible for
success-based milestone payments as well as tiered royalties owed to Jiangsu Hengrui Pharmaceuticals Co., Ltd. (Hengrui). The
acquisition completed on 14 February 2024.
During 2024, no sales arising from the Aiolos business were included in Group turnover and no revenue is expected until regulatory
approval is received on the acquired asset.
GSK continues to support the ongoing development of the acquired asset and consequently this asset will be loss making until
regulatory approval on this asset is received. The development of this asset has been integrated into the Group’s existing R&D
activities, so it is impracticable to quantify these development costs or the impact on Total profit after taxation for the period ended
31 December 2024.
Goodwill of £191 million has been recognised. The goodwill represents specific synergies available to GSK from the business
combination. The goodwill has been allocated to the Group’s R&D segment. None of the goodwill is expected to be deductible for
tax purposes.
Total
£m
Net assets acquired:
Intangible assets
886
Trade and other receivables
10
Cash and cash equivalents
23
Trade and other payables
(26)
Deferred tax liabilities
(188)
705
Goodwill
191
Total consideration
896
On 6 June 2024, GSK announced that it had acquired Elsie Biotechnologies, a San Diego-based private biotechnology company
dedicated to unlocking the full potential of oligonucleotide therapeutics, for a total consideration of up to US$51 million
(approximately £40 million), including up to US$10 million (£8 million) in certain success-based development and regulatory
milestone payments. The key assets and liabilities recognised at acquisition include goodwill of US$23 million (£19 million),
intangible assets of US$35 million (£27 million) and a deferred tax liability of US$7 million (£6 million). The acquisition is accounted
for as a business combination but is not considered a significant acquisition for the Group. This agreement is not subject to closing
conditions and the acquisition has been completed.
Business disposals
GSK completed no material business disposals in 2024.
Associates and joint ventures
GSK completed no material investments or disposals of associates or joint ventures during the year.
Cash flows
Business
acquisitions
£m
Business
disposals
£m
Cash consideration paid
(773)
–
Net deferred consideration paid
(57)
(18)
Transaction costs
(5)
–
Cash and cash equivalents acquired
25
–
Cash outflow
(810)
(18)
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GSK Annual Report 2024
Notes to the financial statements continued
259
41. Acquisitions and disposals continued
2023
Business acquisitions
On 28 June 2023, GSK completed the acquisition of BELLUS Health Inc. (“Bellus") which was effected through a Plan of
Arrangement (the “Arrangement”) pursuant to the Canada Business Corporations Act. The Arrangement was approved by Bellus’
shareholders on 16 June 2023. Upon completion, GSK acquired all outstanding common shares of Bellus for US$14.75 per common
share in cash, representing a total equity value of US$2 billion (£1.6 billion). The acquisition provides GSK access to camlipixant, a
potential best-in-class and highly selective P2X3 antagonist currently in phase III development for the first-line treatment of adult
patients with refractory chronic cough (RCC).
Total
£m
Net assets acquired:
Intangible assets
1,438
Non-current equity investments
2
Right of use assets
1
Trade and other receivables
96
Investments held as current assets
51
Cash and cash equivalents
148
Lease liabilities
(1)
Trade and other payables
(103)
Deferred tax liabilities
(136)
1,496
Non-controlling interest
–
Goodwill
109
Total consideration
1,605
In 2023, the provisional values of the identifiable assets and liabilities acquired in the Affinivax, Inc. business combination were
updated for the finalisation of the fair value of intangible assets, resulting in an increase in intellectual property of £39 million, a
decrease to goodwill of £31 million and a decrease to deferred tax of £8 million. The amounts recognised at 31 December 2022
have not been restated on the basis of materiality.
Business disposals
GSK completed no material business disposals in 2023.
Associates and joint ventures
GSK completed no material investments or disposals of associates or joint ventures during the year.
Cash flows
Business
acquisitions
£m
Business
disposals
£m
Cash consideration (paid)/received
(1,605)
68
Net deferred consideration paid
–
(19)
Transaction costs
(17)
–
Cash and cash equivalents acquired/(divested)
148
–
Cash (outflow)/inflow
(1,474)
49
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GSK Annual Report 2024
Notes to the financial statements continued
260
41. Acquisitions and disposals continued
2022
Business acquisitions
On 1 July 2022, GSK completed the acquisition of 100% of Sierra Oncology, Inc., a California-based, late-stage biopharmaceutical
company focused on targeted therapies for the treatment of rare forms of cancer, for $1.9 billion (£1.6 billion). The main asset is
momelotinib which targets the medical needs of myelofibrosis patients with anaemia. Total transaction costs were £52 million.
On 15 August 2022, GSK completed the acquisition of 100% of Affinivax, Inc. a clinical-stage biopharmaceutical company based in
Cambridge, Boston, Massachusetts focused on pneumococcal vaccine candidates. The consideration for the acquisition comprised
an upfront payment of $2.2 billion (£1.8 billion) as adjusted for working capital acquired paid upon closing and two potential
milestone payments each of $0.6 billion (£0.5 billion) to be paid upon the achievement of certain paediatric clinical development
milestones. The estimated fair value of the contingent consideration payable was £482 million. The values were provisional and
were subject to change. The total transaction costs were £71 million.
During 2022, no sales arising from the Sierra Oncology or Affinivax businesses were included in Group turnover and no revenue is
expected until regulatory approval is received on the acquired assets.
GSK continues to support the ongoing development of the acquired assets and consequently these assets will be loss making until
regulatory approval on these assets is received. The development of these assets has been integrated into the Group’s existing R&D
activities, so it was impracticable to quantify these development costs or the impact on Total profit after taxation for the period
ended 31 December 2022.
Goodwill of £1,127 million (£162 million for Sierra Oncology and £965 million for Affinivax), which is not expected to be deductible for
tax purposes, has been recognised. The goodwill represents workforce in place, and specific synergies available to GSK from the
business combinations. The goodwill has been allocated to the Group’s Commercial Operations and R&D segments (refer to Note
19 ‘Goodwill’ for allocation methodology).
Sierra
Oncology
£m
Affinivax
£m
Total
£m
Net assets acquired
Intangible assets
1,497
1,467
2,964
Property, plant and equipment
–
30
30
Right of use assets
1
52
53
Inventory
60
–
60
Trade and other receivables
2
17
19
Cash and cash equivalents
175
109
284
Lease liabilities
(1)
(55)
(56)
Trade and other payables
(40)
(77)
(117)
Taxation
(259)
(236)
(495)
1,435
1,307
2,742
Goodwill
162
965
1,127
Total
1,597
2,272
3,869
Total cash
1,597
1,790
3,387
Fair value of contingent consideration
–
482
482
On 24 November 2022 GSK signed an agreement to buy out the 25% non-controlling interest in Glaxo Saudi Arabia Ltd for
SAR94 million (£21 million), paid in 2023.
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GSK Annual Report 2024
Notes to the financial statements continued
261
41. Acquisitions and disposals continued
Demerger of Consumer Healthcare business
On 18 July 2022, GSK plc separated its Consumer Healthcare business from the GSK Group to form Haleon plc, an independent listed
company. The separation was effected by way of a demerger of 80.1% of GSK’s 68% holding in the Consumer Healthcare business to
GSK shareholders. Following the demerger, 54.5% of Haleon plc was held in aggregate by GSK shareholders, 6.0% was held by GSK
(including shares received by GSK’s consolidated ESOP trusts) and 7.5% was held by certain Scottish Limited Partnerships (SLPs) set up
to provide collateral for a funding mechanism pursuant to which GSK will provide additional funding for GSK’s UK defined benefit
pension schemes (Note 31, 'Pensions and other post-employment benefits'). The aggregate ownership by GSK (including ownership by
the ESOP trusts and SLPs) after the demerger of 13.5% was measured at fair value with changes through profit or loss. In 2022, Pfizer
held 32% of Haleon plc after the demerger.
Under IFRIC 17 ‘Distributions of Non-cash Assets to Owners’ a liability and an equity distribution are measured at the fair value of
the assets to be distributed when the dividend is appropriately authorised and it is no longer at the entity’s discretion. The liability
and equity movement, and associated gain on distribution were recognised in Q3 2022 when the demerger distribution was
authorised and occurred.
The asset distributed was the 54.5% ownership of the Consumer Healthcare business. The net carrying amount of the Consumer
Healthcare business in the consolidated financial statements, including the retained 13.5% and net of the amount attributable to
the non-controlling interest, was approximately £11 billion at the end of June. GSK’s £6.3 billion share of the shareholder loans made
in Q1 2022 in advance of the pre-separation dividends was eliminated in the consolidated financial statements. The assets
distributed were reduced by Consumer Healthcare transactions up to 18 July that principally included pre-separation dividends
declared and settled after the end of Q2 2022 and before 18 July 2022. Those dividends included: £10.4 billion (£7.1 billion
attributable to GSK) of dividends funded by Consumer Healthcare debt that was partially on-lent during Q1 2022 and dividends of
£0.6 billion (£0.4 billion attributable to GSK) from available cash balances.
The fair value of the 54.5% ownership of the Consumer Healthcare business distributed was £15.5 billion. This was measured by
reference to the quoted average Haleon plc share price over the first five days of trading, this being a fair value measured with
observable inputs which was considered to be representative of the fair value at the distribution date. A gain on distribution of this
fair value less book value of the attributable net assets of the Consumer Healthcare business of £7.7 billion was recorded in the
income statement in 2022. There was an additional gain of £2.4 billion to remeasure the retained 13.5% from its book value to fair
value of £3.9 billion using the same fair value methodology as used for the distributed shares. The gain on distribution and on
remeasurement of the retained stake upon demerger was presented as part of discontinued operations. Any future gains or losses
on the retained stake in Haleon plc will be recognised in continuing operations. In addition, there was a reclassification of the
Group’s share of cumulative exchange differences arising on translation of the foreign currency net assets of the divested
subsidiaries and offsetting net investment hedges from reserves into the income statement of £0.6 billion. The total gain on
demerger of Consumer Healthcare was £10.1 billion. These transactions were presented in profit from discontinued operations in
2022.
2022
£m
Fair value of the Consumer Healthcare business distributed (54.5%)
15,526
Fair value of the retained ownership in Haleon plc (13.5%)
3,853
Total fair value
19,379
Carrying amount of the net assets and liabilities distributed/de-recognised
(12,887)
Carrying amount of the non-controlling interest de-recognised
3,038
Gain on demerger before exchange movements and transaction costs
9,530
Reclassification of exchange movements and net investment hedge movements on disposal of overseas subsidiaries
554
Total gain on the demerger of Consumer Healthcare
10,084
Consumer Healthcare was presented as a discontinued operation as at 30 June 2022 and disclosed as such in the interim financial
statements. The Consolidated Income Statement and Consolidated Cash Flow Statement distinguish discontinued operations from
continuing operations. Financial information relating to the operations of Consumer Healthcare for the period is set out on the
following page and includes financial information until 18 July 2022.
This financial information differs both in purpose and basis of preparation from the Historical Financial Information and the Interim
Financial Information included in the Haleon prospectus and from that which was published by Haleon plc on 2 March 2023. As a
result, whilst the two sets of financial information are similar, they are not the same because of certain differences in accounting and
disclosure under IFRS.
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GSK Annual Report 2024
Notes to the financial statements continued
262
41. Acquisitions and disposals continued
Total results
2022
£m
Turnover
5,581
Expense
(4,730)
Profit before tax
851
Taxation
(235)
Tax rate %
27.6%
(Loss)/profit after taxation from discontinued operations: Consumer Healthcare
616
Other gains/(losses) on demerger
2,433
Remeasurement of discontinued operations distributed to shareholders on demerger
7,651
Profit after taxation on demerger of discontinued operations
10,700
Non-controlling interest in discontinued operations
205
Earnings attributable to shareholders from discontinued operations
10,495
Earnings per share from discontinued operations
260.6p
Other business disposals
There were no other material business disposals in 2022.
Cash flows
Business
acquisitions
£m
Business
disposals -
demerger
£m
Business
disposals -
other
£m
Cash consideration
(3,392)
–
–
Net deferred consideration paid
–
–
(34)
Cash and cash equivalents (divested)/acquired
284
(933)
(9)
(3,108)
(933)
(43)
Transaction costs paid
(79)
(141)
–
Cash (outflow)/inflow
(3,187)
(1,074)
(43)
Cash consideration for business acquisitions included £5 million related to other business acquisition activity.
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Investor information
GSK Annual Report 2024
Notes to the financial statements continued
263
42. Adjustments reconciling Total profit after tax to
operating cash flows
Tax on profits
526
756
707
Share of after-tax (profits)/losses of associates and joint ventures
3
5
2
Finance expense net of finance income
547
677
803
Depreciation
1,097
1,082
1,061
Amortisation of intangible assets
1,454
1,212
1,086
Impairment and assets written off
408
467
481
(Profit)/loss on sale of businesses
11
–
(36)
Profit on sale of intangible assets
(170)
(12)
(185)
Profit on sale of investments in associates
(6)
(1)
–
Profit on sale of equity investments
(10)
–
(1)
Changes in working capital:
Decrease/(increase) in inventories
(294)
(424)
(269)
Decrease/(increase) in trade receivables
298
(794)
(158)
Increase/(decrease) in trade payables
(179)
(15)
494
Decrease/(increase) in other receivables
42
145
(458)
Contingent consideration paid (see Note 33)
(1,235)
(1,134)
(1,058)
Other non-cash increase in contingent consideration liabilities
1,834
492
1,628
Increase/(decrease) in other payables
(610)
689
(5)
Increase/(decrease) in pension and other provisions
999
(457)
(962)
Share-based incentive plans
344
307
346
Fair value adjustments
(39)
(107)
(283)
Other
(110)
(100)
(170)
Operating cash flow from continuing operations
7,861
8,096
7,944
Operating cash flow from discontinued operations
–
–
932
Total cash generated from operations
7,861
8,096
8,876
2024
£m
2023
£m
2022
£m
Total profit after tax from continuing operations
2,951
5,308
4,921
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Investor information
GSK Annual Report 2024
Notes to the financial statements continued
264
43. Reconciliation of net cash flow to movement in net debt
2024
£m
2023
£m
2022
£m
Net debt, at beginning of year, as adjusted
(15,040)
(17,197)
(19,838)
Increase/(decrease) in cash and bank overdrafts
599
(468)
(7,597)
Decrease in liquid investments
(21)
(72)
(1)
Repayment of long-term loans(1)
1,615
2,260
6,668
Issue of long-term notes
(1,075)
(223)
(1,025)
Net decrease/(increase) in short-term loans
811
333
(1,021)
Increase in other short-term loans(2)
(266)
–
–
Repayment of other short-term loans(2)
81
–
–
Repayment of lease liabilities
226
197
202
Net investments/(debt) of subsidiary undertakings acquired
–
50
(24)
Exchange adjustments
117
554
(1,531)
Other non-cash movements
(142)
(474)
(207)
Decrease/(increase) in net debt from continuing operations
1,945
2,157
(4,536)
Decrease/(increase) in net debt from discontinued operations
–
–
7,177
Total net debt at end of year
(13,095)
(15,040)
(17,197)
(1)
Repayment of long-term loans for 2024 of £1,615 million (2023: £2,260 million; 2022: £6,668 million) includes the current portion of long-term borrowings of
£1,615 million (2023: £2,116 million; 2022: £5,074 million) which was classified as short-term borrowing on the balance sheet and previously presented as
repayment of short-term loans
(2) Other short-term loans include bank loans presented within short-term borrowings on the balance sheet, with an initial maturity of greater than three
months.
Analysis of changes in net debt
At 1 January
2024
£m
Exchange
£m
Other
£m
Interest
expense
£m
Change
in fair value
£m
Reclass-
ifications
£m
Cash flow
£m
At
31 December
2024
£m
Liquid investments
42
–
–
–
–
–
(21)
21
Cash and cash equivalents
2,936
(54)
–
–
–
–
988
3,870
Overdrafts
(78)
–
–
–
–
–
(389)
(467)
2,858
(54)
–
–
–
–
599
3,403
Debt due within one year:
Commercial paper
(815)
4
–
–
–
–
811
–
European/US MTN & Bank facilities
(1,651)
51
(20)
–
–
(1,414)
1,615
(1,419)
Lease liabilities
(156)
5
6
–
–
(249)
226
(168)
Other
(113)
(11)
14
–
–
–
(185)
(295)
(2,735)
49
–
–
–
(1,663)
2,467
(1,882)
Debt due after one year:
European/US MTN & Bank facilities
(14,154)
127
–
(15)
–
1,414
(1,075)
(13,703)
Lease liabilities
(1,051)
5
(137)
–
–
249
–
(934)
(15,205)
132
(137)
(15)
–
1,663
(1,075)
(14,637)
Net debt
(15,040)
127
(137)
(15)
–
–
1,970
(13,095)
Interest payable
(162)
–
(30)
(602)
–
–
632
(162)
Derivative financial instruments
16
–
–
–
31
–
(129)
(82)
Total liabilities from financing
activities*
(18,086)
181
(167)
(617)
31
–
1,895
(16,763)
*
Excluding cash and cash equivalents, overdrafts and liquid investments.
Strategic report
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Financial statements
Investor information
GSK Annual Report 2024
Notes to the financial statements continued
265
43. Reconciliation of net cash flow to movement in net debt continued
Analysis of changes in net debt
At 1 January
2023
£m
Exchange
£m
Other
£m
Interest
expense
£m
Change
in fair value
£m
Reclass-
ifications
£m
Cash flow
£m
At
31 December
2023
£m
Liquid investments
67
(4)
51
(72)
42
Cash and cash equivalents
3,723
(105)
–
–
–
–
(682)
2,936
Overdrafts
(298)
6
–
–
–
–
214
(78)
3,425
(99)
–
–
–
–
(468)
2,858
Debt due within one year:
Commercial paper
(1,191)
56
–
–
–
–
320
(815)
European/US MTN & Bank facilities
(2,146)
48
–
–
–
(1,669)
2,116
(1,651)
Lease liabilities
(167)
12
(3)
–
–
(195)
197
(156)
Other
(150)
21
3
–
–
–
13
(113)
(3,654)
137
–
–
–
(1,864)
2,646
(2,735)
Debt due after one year:
European/US MTN & Bank facilities
(16,194)
469
–
(19)
–
1,669
(79)
(14,154)
Lease liabilities
(841)
42
(447)
–
–
195
–
(1,051)
(17,035)
511
(447)
(19)
–
1,864
(79)
(15,205)
Net debt
(17,197)
545
(396)
(19)
–
–
2,027
(15,040)
Interest payable
(207)
1
(29)
(693)
–
–
766
(162)
Derivative financial instruments
8
–
–
–
343
–
(335)
16
Total liabilities from financing
activities*
(20,888)
649
(476)
(712)
343
–
2,998
(18,086)
*
Excluding cash and cash equivalents, overdrafts and liquid investments.
For further information on significant changes in net debt see Note 30, ‘Net debt’.
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Investor information
GSK Annual Report 2024
Notes to the financial statements continued
266
44. Financial instruments and related disclosures
The objective of GSK’s Treasury activities is to minimise the net
cost of financial operations and reduce its volatility to benefit
earnings and cash flows. GSK uses a variety of financial
instruments to finance its operations and derivative financial
instruments to manage market risks from these operations.
Derivatives principally comprise foreign exchange forward
contracts and swaps which are used to swap borrowings and
liquid assets into currencies required for Group purposes as well
as interest rate swaps which are used to manage exposure to
financial risks from changes in interest rates. These financial
instruments reduce the uncertainty of foreign currency
transactions and interest payments.
Derivatives are used exclusively for hedging purposes in relation
to underlying business activities and not as trading or
speculative instruments.
Capital management
GSK’s financial strategy supports the Group’s strategic priorities
and is regularly reviewed by the Board. GSK manages the
capital structure of the Group through an appropriate mix of
debt and equity.
The capital structure of the Group consists of net debt of £13
billion (2023: £15 billion) (see Note 30, ‘Net debt’) and total
equity, including items related to non-controlling interests, of
£13 billion (2023: £13 billion ) (see ‘Consolidated statement of
changes in equity’ on page 206). Total capital, including that
provided by non-controlling interests, is £26 billion (2023:
£28 billion).
The Group continues to manage its financial policies to a credit
profile that particularly targets ratings of at least A2/A
(Moody's/S&P), through the cycle. The Group’s long-term credit
rating with Standard & Poor’s is A (stable outlook) and with
Moody’s Investor Services is A2 (stable outlook). The Group’s
short-term credit ratings are A-1 and P-1 with Standard & Poor’s
and Moody’s respectively.
Liquidity risk management
GSK’s policy is to borrow centrally in order to meet anticipated
funding requirements. The strategy is to diversify liquidity
sources using a range of facilities and to maintain broad access
to financial markets. Each day, GSK sweeps cash to or from a
number of global subsidiaries and central Treasury accounts for
liquidity management purposes. GSK utilises both physical and
notional cash pool arrangements as appropriate by location
and currency. For notional cash pools, liquidity is drawn against
foreign currency balances to provide both local funding and
central liquidity as required and with balances actively
managed and maintained to appropriate levels. As balances in
notional pooling arrangements are not settled across
currencies, gross cash and overdraft balances are reported.
At 31 December 2024, GSK had £2.3 billion (2023: £2.8 billion) of
borrowings repayable within one year and held £3.9 billion
(2023: £3.0 billion) of cash and cash equivalents and liquid
investments of which £3.1 billion (2023: £2.2 billion) was held
centrally.
GSK has access to short-term finance under a $10 billion (£8
billion) US commercial paper programme. There was no US
commercial paper in issue at 31 December 2024 (2023: $850
million (£667 million)). Maximum drawdowns under the US
Commercial Paper programme during the year were
$1,315 million (£1,048 million) (2023: $3,262 million (£2,579
million)). GSK has access to short-term finance under a £5
billion Euro commercial paper programme. There was no Euro
Commercial paper in issue at 31 December 2024 (2023: €170
million (£148 million)). Maximum drawdowns under the Euro
Commerical Paper programme during the year were €170
million (£145 million) (2023: €927 million (£800 million)).
GSK has £1.6 billion of three-year and $2.2 billion (£1.8 billion) of
364 day committed facilities. These committed facilities were
undrawn at 31 December 2024. GSK considers this level of
committed facilities to be adequate, given current liquidity
requirements.
GSK has a £20 billion Euro Medium Term Note programme and
at 31 December 2024, £9.2 billion of notes were in issue under
this programme. The Group also had $7.5 billion (£5.9 billion) of
notes in issue at 31 December 2024 under a US shelf
registration. GSK’s borrowings mature at dates between 2025
and 2045.
The put option owned by Pfizer in ViiV Healthcare is exercisable.
In reviewing liquidity requirements GSK considers that sufficient
financing options are available should the put option be
exercised.
Market risk
Interest rate risk management
GSK’s objective is to minimise the effective net interest cost and
to balance the mix of debt at fixed and floating rates over time.
The Group’s main interest rate risk arises from borrowings and
investments with floating rates and refinancing of maturing
fixed rate debt where any changes in interest rates will affect
future cash flows or the fair values of financial instruments. The
policy on interest rate risk management limits the net amount of
floating rate debt to a specific cap, reviewed and agreed no
less than annually by the Board.
The majority of debt is issued at fixed interest rates and
changes in the floating rates of interest do not significantly
affect the Group’s net interest charge. Short-term borrowings
including bank facilities are exposed to the risk of future
changes in market interest rates as are the majority of cash and
liquid investments.
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GSK Annual Report 2024
Notes to the financial statements continued
267
44. Financial instruments and related disclosures continued
Foreign exchange risk management
The Group’s objective is to minimise the exposure of overseas
operating subsidiaries to transaction risk by matching local
currency income with local currency costs where possible.
Foreign currency transaction exposures arising on external and
internal trade flows are selectively hedged. GSK’s internal
trading transactions are matched centrally and inter-company
payment terms are managed to reduce foreign currency risk.
Where possible, GSK manages the cash surpluses or borrowing
requirements of subsidiary companies centrally using forward
contracts to hedge future repayments back into the originating
currency.
In order to reduce foreign currency translation exposure, the
Group seeks to denominate borrowings in the currencies of our
principal assets and cash flows. These are primarily
denominated in US Dollars, Euros and Sterling. Borrowings can
be swapped into other currencies as required.
Borrowings denominated in, or swapped into, foreign currencies
that match investments in overseas Group assets may be
treated as a hedge against the relevant assets. Forward
contracts in major currencies are also used to reduce exposure
to the Group’s investment in overseas assets (see ‘Net
investment hedges’ section of this note for further details).
Credit risk
Credit risk is the risk that a counterparty will default on its
contractual obligations resulting in financial loss to the Group
and arises on cash and cash equivalents and favourable
derivative financial instruments held with banks and financial
institutions as well as credit exposures to wholesale and retail
customers, including outstanding receivables.
The Group considers its maximum credit risk at 31 December
2024 to be £9,986 million (31 December 2023: £9,528 million)
which is the total of the Group’s financial assets with the
exception of ’Other investments’ (comprising equity
investments) which bear equity risk rather than credit risk. See
page 271 for details on the Group’s total financial assets. At
31 December 2024, GSK’s greatest concentration of credit risk
was £1.1 billion with a wholesaler in the US (2023: £1.2 billion with
a wholesaler in the US). See page 269 for further information on
the Group’s credit risk exposure in respect of the three largest
US wholesaler customers.
There has been no change in the estimation techniques or
significant assumptions made during the current and prior
reporting periods in assessing the loss allowance for financial
assets at amortised cost or at FVTOCI.
Treasury-related credit risk
GSK sets global counterparty limits for each of GSK’s banking
and investment counterparties based on long-term credit
ratings from Moody’s and Standard & Poor’s. Usage of these
limits is actively monitored.
GSK actively manages its exposure to credit risk, reducing
surplus cash balances wherever possible. This is part of GSK’s
strategy to regionalise cash management and to concentrate
cash centrally as much as possible. The table below sets out the
credit exposure to counterparties by rating for liquid
investments, cash and cash equivalents and derivatives.
The gross asset position on each derivative contract is
considered for the purpose of this table, although, under ISDA
agreements, the amount at risk is the net position with each
counterparty. Table (e) on page 279 sets out the Group’s
financial assets and liabilities on an offset basis.
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GSK Annual Report 2024
Notes to the financial statements continued
268
44. Financial instruments and related disclosures continued
At 31 December 2024, £24 million (2023: £44 million) of cash is categorised as held with unrated or sub-investment grade rated
counterparties (lower than BBB-/Baa3). This exposure is concentrated in overseas banks used for local cash management or
investment purposes, including: £14 million with Halk Bank in the UK; £5 million in Honduras held with Banco de America Central
and Banco de Honduras; £1 million in Ecuador held with Banco De La Produccion; and £1 million in Brazil held with Banco Bradesco,
Itau Unibanco, Banco Do Brasil and Caixa Ecomonica Federal. Of the £80 million (2023: £55 million) of bank balances and
deposits held with BBB/Baa rated counterparties, £41 million was held with BBB-/Baa3 rated counterparties, including balances or
deposits of £33 million with Banca Popolare Di Sondrio in the UK; £5 million with OTP Bank in Russia; £2 million with State Bank of
India in India and £1 million with Banco De Credito Del Peru in Peru. These banks are used for local investment purposes.
GSK measures expected credit losses over cash and cash equivalents as a function of individual counterparty credit ratings and
associated 12 month default rates. Expected credit losses over cash and cash equivalents and third-party financial derivatives are
deemed to be immaterial and no such loss has been experienced during 2024.
Credit ratings are assigned by Standard & Poor’s and Moody’s respectively. Where the opinions of the two rating agencies differ,
GSK assigns the lower rating of the two to the counterparty. Where local rating agency or Fitch data is the only source available, the
ratings are converted to global ratings equivalent to those of Standard & Poor’s or Moody’s using published conversion tables.
These credit ratings form the basis of the assessment of the expected credit loss on Treasury-related balances held at amortised
cost being bank balances and deposits and Government securities.
2024
AAA/Aaa
£m
AA/Aa
£m
A/A
£m
BBB/Baa
£m
BB+/Ba1
and below
/unrated
£m
Total
£m
Bank balances and deposits
–
36
2,450
80
24
2,590
US Treasury and Treasury repo only money market funds
300
–
–
–
–
300
Liquidity funds
980
–
–
–
–
980
Government securities
–
21
–
–
–
21
Third-party financial derivatives
–
–
110
–
–
110
Total
1,280
57
2,560
80
24
4,001
2023
AAA/Aaa
£m
AA/Aa
£m
A/A
£m
BBB/Baa
£m
BB+/Ba1
and below
/unrated
£m
Total
£m
Bank balances and deposits
–
28
1,815
55
44
1,942
US Treasury and Treasury repo only money market funds
155
–
–
–
–
155
Liquidity funds
839
–
–
–
–
839
Government securities
–
42
–
–
–
42
Third-party financial derivatives
–
–
130
–
–
130
Total
994
70
1,945
55
44
3,108
GSK’s centrally managed cash reserves amounted to £3.1 billion
(2023: £2.2 billion) at 31 December 2024, all available within
three months. This includes £1.9 billion (2023: £2.0 billion) of
cash managed by the Group for ViiV Healthcare, a 78.3%
(2023: 78.3%) owned subsidiary. The Group has invested
centrally managed liquid assets in bank deposits, Aaa/AAA
rated US Treasury and Treasury repo only money market funds
and Aaa/AAA rated liquidity funds.
Wholesale and retail credit risk
Outside the US, no customer accounts for more than 5% of the
Group’s trade receivables balance.
In the US, in line with other pharmaceutical companies, the
Group sells its products through a small number of wholesalers
in addition to hospitals, pharmacies, physicians and other
groups. Sales to the three largest wholesalers amounted to
approximately 77% (2023: 79%) of the sales of the US
Commercial Operations business in 2024.
At 31 December 2024, the Group had trade receivables due
from these three wholesalers totalling £2,766 million or 50% of
total trade receivables (2023: £3,319 million or 56%). The Group
is exposed to a concentration of credit risk in respect of these
wholesalers such that, if one or more of them encounters
financial difficulty, it could materially and adversely affect the
Group’s financial results.
This concentration of trade receivables is reflective of standard
market practice in the US pharmaceuticals sector where a
significant portion of sales are made to these three wholesalers,
as disclosed in Note 6 'Turnover and segment information'.
GSK’s assessment is that there is limited credit risk associated
with these customers.
The Group’s credit risk monitoring activities relating to these
wholesalers include a review of their quarterly financial
information and Standard & Poor’s credit ratings, development
of GSK internal risk ratings, and establishment and periodic
review of credit limits.
All new customers are subject to a credit vetting process and
existing customers will be subject to a review at least annually.
The vetting process and subsequent reviews involve obtaining
information including the customer’s status as a government or
private sector entity, audited financial statements, credit bureau
reports, debt rating agency (e.g. Moody’s, Standard & Poor’s)
reports, payment performance history (from trade references,
industry credit groups) and bank references.
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GSK Annual Report 2024
Notes to the financial statements continued
269
44. Financial instruments and related disclosures continued
Trade receivables consist of amounts due from a large number
of customers, spread across diverse industries and
geographical areas. Ongoing credit evaluation is performed on
the financial condition of accounts receivable and, where
appropriate, credit insurance is purchased or factoring
arrangements put in place.
The amount of information obtained is proportional to the level
of exposure being considered. The information is evaluated
quantitatively (i.e. credit score) and qualitatively (i.e.
judgement) in conjunction with the customer’s credit
requirements to determine a credit limit.
Trade receivables are grouped into customer segments that
have similar loss patterns to assess credit risk while other
receivables and other financial assets are assessed individually.
Historical and forward-looking information is considered to
determine the appropriate expected credit loss allowance.
The Group believes there is no further credit risk provision
required in excess of the allowance for expected credit losses
(see Note 26, ‘Trade and other receivables’).
Credit enhancements
The Group uses credit enhancements including factoring, letters
of credit and credit insurance to minimise the credit risk of the
trade receivables in the Group. At 31 December 2024, £307
million (2023: £421 million) of trade receivables were insured in
order to protect the receivables from loss due to credit risks
such as default, insolvency and bankruptcy.
Each Group entity assesses the credit risk of its private
customers to determine if credit insurance is required.
Factoring arrangements are managed locally by entities and
are used to mitigate risk arising from large credit risk
concentrations. All factoring arrangements are non-recourse.
Fair value of financial assets and liabilities
excluding lease liabilities
The table on page 271 presents the carrying amounts and the
fair values of the Group’s financial assets and liabilities
excluding lease liabilities at 31 December 2024 and
31 December 2023.
The fair values of the financial assets and liabilities are included
at the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market
participants at the measurement date.
The following methods and assumptions are used to measure
the fair values of significant financial instruments carried at fair
value on the balance sheet:
– Other investments – equity investments traded in an active
market determined by reference to the relevant stock
exchange quoted bid price; other equity investments
determined by reference to the current market value of
similar instruments, recent financing rounds or the discounted
cash flows of the underlying net assets
– Trade receivables carried at fair value – based on invoiced
amount
– Interest rate swaps, foreign exchange forward contracts,
swaps and options – based on the present value of
contractual cash flows or option valuation models using
market sourced data (for example exchange rates or interest
rates) at the balance sheet date
– Cash equivalents carried at fair value – based on net asset
value of the funds
– Contingent consideration for business acquisitions and
divestments – based on present values of expected future
cash flows.
The following methods and assumptions are used to estimate
the fair values of significant financial instruments which are not
measured at fair value on the balance sheet:
– Receivables and payables, including put options, carried at
amortised cost – approximates to the carrying amount
– Liquid investments – approximates to the carrying amount
– Cash and cash equivalents carried at amortised cost –
approximates to the carrying amount
– Long-term loans – based on quoted market prices (a level 1
fair value measurement) in the case of European and US
Medium Term Notes; approximates to the carrying amount in
the case of other fixed rate borrowings and floating rate bank
loans
– Short-term loans, overdrafts and commercial paper –
approximates to the carrying amount because of the short
maturity of these instruments.
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GSK Annual Report 2024
Notes to the financial statements continued
270
44. Financial instruments and related disclosures continued
2024
2023
Notes
Carrying
amount
£m
Fair
value
£m
Carrying
amount
£m
Fair
value
£m
Financial assets measured at amortised cost:
Other non-current assets
b
5
5
9
9
Trade and other receivables
b
3,733
3,733
3,829
3,829
Liquid investments
21
21
42
42
Cash and cash equivalents
2,590
2,590
1,942
1,942
Financial assets measured at fair value through other comprehensive
income (FVTOCI):
Other investments designated at FVTOCI
a
843
843
931
931
Trade and other receivables
a,b
2,163
2,163
2,541
2,541
Financial assets mandatorily measured at fair value through profit or loss
(FVTPL):
Current equity investments and other investments
a
257
257
2,410
2,410
Other non-current assets
a,b
31
31
18
18
Trade and other receivables
a,b
53
53
23
23
Held for trading derivatives that are not in a designated and
effective hedging relationship
a,d,e
75
75
98
98
Cash and cash equivalents
a
1,280
1,280
994
994
Derivatives designated and effective as hedging instruments (fair value
movements through other comprehensive income)
a,d,e
35
35
32
32
Total financial assets
11,086
11,086
12,869
12,869
Financial liabilities measured at amortised cost:
Borrowings excluding obligations under lease liabilities:
– bonds in a designated hedging relationship
d
(5,346)
(5,278)
(5,348)
(5,233)
– other bonds
(9,774)
(9,597)
(10,456)
(10,762)
– bank loans and overdrafts
(762)
(762)
(191)
(191)
– commercial paper in a designated hedging relationship
–
–
(148)
(148)
– other commercial paper
–
–
(667)
(667)
– other borrowings
(2)
(2)
(1)
(1)
Total borrowings excluding lease liabilities
f
(15,884)
(15,639)
(16,811)
(17,002)
Trade and other payables
c
(13,160)
(13,160)
(13,383)
(13,383)
Other provisions
c
(182)
(182)
(199)
(199)
Other non-current liabilities
c
(46)
(46)
(54)
(54)
Financial liabilities mandatorily measured at fair value through profit or loss
(FVTPL):
Contingent consideration liabilities
a,c
(7,280)
(7,280)
(6,662)
(6,662)
Held for trading derivatives that are not in a designated and
effective hedging relationship
a,d,e
(35)
(35)
(78)
(78)
Derivatives designated and effective as hedging instruments (fair value
movements through other comprehensive income)
a,d,e
(157)
(157)
(36)
(36)
Total financial liabilities excluding lease liabilities
(36,744)
(36,499)
(37,223)
(37,414)
Net financial assets and financial liabilities excluding lease liabilities
(25,658)
(25,413)
(24,354)
(24,545)
The valuation methodology used to measure fair value in the above table is described and categorised on page 270.
Trade and other receivables, Other non-current assets, Trade and other payables, Other provisions, Contingent consideration
liabilities and Other non-current liabilities are reconciled to the relevant Notes on pages 273 to 274.
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Investor information
GSK Annual Report 2024
Notes to the financial statements continued
271
44. Financial instruments and related disclosures continued
Fair value of investments in GSK shares
At 31 December 2024, the Employee Share Ownership Plan (ESOP) Trusts held GSK shares with a carrying amount of £397 million
(2023: £288 million) and a market value of £866 million (2023: £853 million) based on quoted market price. The shares are held by
the ESOP Trusts to satisfy future exercises of options and awards under employee incentive schemes. In 2024, the carrying amount,
which is the lower of cost or expected proceeds, of these shares has been recognised as a deduction from other reserves. At
31 December 2024, GSK held Treasury shares at a cost of £2,958 million (2023: £3,447 million) which has been deducted from
retained earnings.
(a) Financial instruments held at fair value
The following tables categorise the Group’s financial assets and liabilities held at fair value by the valuation methodology applied in
determining their fair value. Where possible, quoted prices in active markets are used (Level 1). Where such prices are not available,
the asset or liability is classified as Level 2, provided all significant inputs to the valuation model used are based on observable
market data. If one or more of the significant inputs to the valuation model is not based on observable market data, the instrument
is classified as Level 3. Other investments classified as Level 3 in the tables below comprise equity investments in unlisted entities
with which the Group has entered into research collaborations and investments which provide access to biotechnology
developments of potential interest.
At 31 December 2024
Level 1
£m
Level 2
£m
Level 3
£m
Total
£m
Financial assets at fair value
Financial assets measured at fair value through other comprehensive income (FVTOCI):
Other investments designated at FVTOCI
646
–
197
843
Trade and other receivables
–
2,163
–
2,163
Financial assets mandatorily measured at fair value through profit or loss (FVTPL):
Current equity investments and other investments
–
–
257
257
Other non-current assets
–
–
31
31
Trade and other receivables
–
51
2
53
Held for trading derivatives that are not in a designated and effective hedging relationship
–
75
–
75
Cash and cash equivalents
1,280
–
–
1,280
Derivatives designated and effective as hedging instruments (fair value movements through OCI)
–
35
–
35
1,926
2,324
487
4,737
Financial liabilities at fair value
Financial liabilities mandatorily measured at fair value through profit or loss (FVTPL):
Contingent consideration liabilities
–
–
(7,280)
(7,280)
Held for trading derivatives that are not in a designated and effective hedging relationship
–
(35)
–
(35)
Derivatives designated and effective as hedging instruments (fair value movements through OCI)
–
(157)
–
(157)
–
(192)
(7,280)
(7,472)
At 31 December 2023
Level 1
£m
Level 2
£m
Level 3
£m
Total
£m
Financial assets at fair value
Financial assets measured at fair value through other comprehensive income (FVTOCI):
Other investments designated at FVTOCI
741
–
190
931
Trade and other receivables
–
2,541
–
2,541
Financial assets mandatorily measured at fair value through profit or loss (FVTPL):
Current equity investments and other investments
2,204
–
206
2,410
Other non-current assets
–
–
18
18
Trade and other receivables
–
23
–
23
Held for trading derivatives that are not in a designated and effective hedging relationship
–
98
–
98
Cash and cash equivalents
994
–
–
994
Derivatives designated and effective as hedging instruments (fair value movements through OCI)
–
32
–
32
3,939
2,694
414
7,047
Financial liabilities at fair value
Financial liabilities mandatorily measured at fair value through profit or loss (FVTPL):
Contingent consideration liabilities
–
–
(6,662)
(6,662)
Held for trading derivatives that are not in a designated and effective hedging relationship
–
(78)
–
(78)
Derivatives designated and effective as hedging instruments (fair value movements through OCI)
–
(36)
–
(36)
–
(114)
(6,662)
(6,776)
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GSK Annual Report 2024
Notes to the financial statements continued
272
44. Financial instruments and related disclosures continued
Movements in the year for financial instruments measured using Level 3 valuation methods are presented below:
2024
£m
2023
£m
At 1 January
(6,248)
(6,411)
Exchange adjustments
(1)
–
Net losses recognised in the income statement
(1,733)
(863)
Net losses recognised in other comprehensive income
(42)
(142)
Contingent consideration related to business acquisitions in the period
(104)
–
Settlement of contingent consideration liabilities
1,254
1,145
Additions
111
57
Disposals and settlements
(30)
(25)
Transfers from Level 3
–
(9)
At 31 December
(6,793)
(6,248)
Of the total net losses of £1,733 million (2023: £863 million) attributable to Level 3 financial instruments which were recognised in the
income statement, £1,733 million (2023: £857 million) were in respect of financial instruments which were held at the end of the year
and were reported in Other operating income/expense. Charges of £1,533 million (2023: £934 million) arose from remeasurement of
the contingent consideration payable for the acquisition of the former Shionogi-ViiV Healthcare joint venture. A remeasurement
charge of £215 million (2023: £210 million gain) arose from remeasurement of the contingent consideration payable for the
acquisition of the Novartis Vaccines business. A gain of £22 million (2023: £44 million charge) arose on the remeasurement of the
Affinivax contingent consideration liability for the year.
Contingent consideration payable for the acquisition of Aiolos, amounting to £96 million, was recognised during the year. Further
information on the Aiolos acquisition is provided in Note 41, ‘Acquisitions and disposals’.
There were transfers of £nil out of Level 3 financial instruments in the year (2023: £9 million out of Level 3 financial instruments).
Movements arising on the translation of overseas net assets for consolidation into the Group accounts are recorded as exchange
adjustments. Net gains and losses include the impact of other exchange movements.
Financial liabilities measured using Level 3 valuation methods at 31 December included £6,061 million (2023: £5,718 million) in
respect of contingent consideration payable for the acquisition in 2012 of the former Shionogi-ViiV Healthcare joint venture. This
consideration is expected to be paid over a number of years and will vary in line with the future performance of specified products
and movements in certain foreign currencies. A further £575 million (2023: £424 million) is in respect of contingent consideration for
the acquisition in 2015 of the Novartis Vaccines business. This consideration is expected to be paid over a number of years and will
vary in line with the future performance of specified products, the achievement of certain milestone targets and movements in
certain foreign currencies. Contingent consideration payable for the acquisition of Affinivax in 2022 of £502 million (2023: £516
million) is recognised at 31 December. This consideration is expected to be paid over a number of years and will vary in line with the
achievement of certain development milestones and movements in the USD/GBP exchange rate. Sensitivity analysis on these
balances is provided in Note 33, ‘Contingent consideration liabilities’.
(b) Trade and other receivables and Other non-current assets in scope of IFRS 9
The following table reconciles financial instruments within Trade and other receivables and Other non-current assets which fall
within the scope of IFRS 9 to the relevant balance sheet amounts. The financial assets are predominantly non-interest earning. Non-
financial instruments include tax receivables, amounts receivable under insurance contracts, pension surplus balances and
prepayments, which are outside the scope of IFRS 9.
2024
2023
At
FVTPL
£m
At
FVTOCI
£m
Amortised
cost
£m
Financial
instruments
£m
Non-
financial
instruments
£m
Total
£m
At
FVTPL
£m
At
FVTOCI
£m
Amortised
cost
£m
Financial
instruments
£m
Non-
financial
instruments
£m
Total
£m
Trade and other
receivables (Note 26)
53 2,163
3,733
5,949
887 6,836
23 2,541
3,829
6,393
992 7,385
Other non-current assets
(Note 24)
31
–
5
36
1,906 1,942
18
–
9
27
1,557 1,584
84 2,163
3,738
5,985
2,793 8,778
41 2,541
3,838
6,420
2,549 8,969
Trade and other receivables include trade receivables of £5,563 million (2023: £5,905 million). The Group has portfolios in each of
the three business models under IFRS 9: £51 million (2023: £23 million), measured at FVTPL, is held to sell the contractual cash flows
as the receivables will be sold under a factoring arrangement, £2,163 million (2023: £2,541 million), measured at FVTOCI, is held to
either collect or sell the contractual cash flows as the receivables may be sold under a factoring agreement, and £3,349 million
(2023: £3,341 million), measured at amortised cost, is held to collect the contractual cash flows and there is no factoring agreement
in place.
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GSK Annual Report 2024
Notes to the financial statements continued
273
44. Financial instruments and related disclosures continued
(c) Trade and other payables, Other provisions, Contingent consideration liabilities and Other non-
current liabilities in scope of IFRS 9
The following table reconciles financial instruments within Trade and other payables, Other provisions, Contingent consideration
liabilities and Other non-current liabilities which fall within the scope of IFRS 9 to the relevant balance sheet amounts. The financial
liabilities are predominantly non-interest bearing. Non-financial instruments include payments on account, tax and social security
payables and provisions which do not arise from contractual obligations to deliver cash or another financial asset, which are outside
the scope of IFRS 9.
2024
2023
At FVTPL
£m
Amortised
cost
£m
Financial
instruments
£m
Non-
financial
instruments
£m
Total
£m
At FVTPL
£m
Amortised
cost
£m
Financial
instruments
£m
Non-
financial
instruments
£m
Total
£m
Trade and other payables
(Note 29)
–
(13,160)
(13,160)
(2,175)
(15,335)
–
(13,383)
(13,383)
(2,461)
(15,844)
Other provisions
(Note 32)
–
(182)
(182)
(2,353)
(2,535)
–
(199)
(199)
(1,040)
(1,239)
Contingent consideration
liabilities (Note 33)
(7,280)
–
(7,280)
–
(7,280)
(6,662)
–
(6,662)
–
(6,662)
Other non-current liabilities
(Note 34)
–
(46)
(46)
(1,054)
(1,100)
–
(54)
(54)
(1,053)
(1,107)
(7,280)
(13,388) (20,668)
(5,582) (26,250)
(6,662)
(13,636)
(20,298)
(4,554)
(24,852)
(d) Derivative financial instruments and hedging programmes
Derivatives are only used for economic hedging purposes and not as speculative investments and are measured at FVTPL, other
than designated and effective hedging instruments. Derivatives are presented as current assets or liabilities if they are expected to
be settled within 12 months after the end of the reporting period, otherwise they are classified as non-current. The Group has the
following derivative financial instruments:
2024
Fair value
2023
Fair value
Assets
£m
Liabilities
£m
Assets
£m
Liabilities
£m
Current
Cash flow hedges – Foreign exchange contracts
(net principal amount – £nil (2023: £175 million))
–
–
–
(2)
Net investment hedges – Foreign exchange contracts
(net principal amount – £13,206 million (2023: £12,339 million))1
35
(157)
32
(34)
Derivatives designated and effective as hedging instruments
35
(157)
32
(36)
Non current
Foreign exchange contracts
(net principal amount – £35 million (2023: £nil))
1
–
–
–
Current
Foreign exchange contracts
(net principal amount – £8,676 million (2023: £10,375 million))
73
(35)
98
(78)
Embedded and other derivatives
1
–
–
–
Derivatives classified as held for trading
75
(35)
98
(78)
Total derivative instruments
110
(192)
130
(114)
(1)Includes options with net principal amount EUR 1.25 billion
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GSK Annual Report 2024
Notes to the financial statements continued
274
1
44. Financial instruments and related disclosures continued
Fair value hedges
At 31 December 2024 and 31 December 2023, the Group had no designated fair value hedges.
Net investment hedges
At 31 December 2024, certain foreign exchange contracts were designated as net investment hedges in respect of the foreign
currency translation risk arising on consolidation of the Group’s net investment in its European (Euro), American (USD), Singaporean
(SGD), Canadian (CAD), Chinese (CNH) and Japanese (JPY) foreign operations as shown in the table below.
The carrying amount of bonds on page 269 included £5,346 million (2023: £5,348 million) that were designated as hedging
instruments in net investment hedges.
Cash flow hedges
During 2023 and 2024, the Group entered into forward foreign exchange contracts which have been designated as cash flow
hedges. These were entered into to hedge the foreign exchange exposure arising on cash flows from Euro denominated coupon
payments relating to notes issued under the Group’s European Medium Term Note programme, and to hedge foreign currency
payments due on acquisitions, and collaboration or licensing arrangements.
The Group manages its cash flow interest rate risk by using floating-to-fixed interest rate swaps. In addition, the Group carries a
balance in reserves that arose from pre-hedging fluctuations in long-term interest rates when pricing bonds issued in prior years
and in the current year. The balance is reclassified to finance costs over the life of these bonds.
Foreign exchange risk
In the current year, the Group has designated certain foreign exchange forward contracts and swaps as cash flow and net
investment hedges. Foreign exchange derivative financial assets and liabilities are presented in the line ‘Derivative financial
instruments’ (either as assets or liabilities) on the Consolidated balance sheet. The following tables detail the foreign exchange
forward contracts and swaps outstanding at the end of the reporting period, as well as information on the related hedged items.
Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness
assessments to ensure that an economic relationship exists between the hedged item and hedging instrument. The Group enters
into hedge relationships where the critical terms of the hedging instrument match exactly with the terms of the hedged item, and so
a qualitative assessment of effectiveness is performed. If changes in circumstances affect the terms of the hedged item such that
the critical terms no longer match exactly with the critical terms of the hedging instrument, the Group uses the hypothetical
derivative method to assess effectiveness.
The main source of hedge ineffectiveness in these hedging relationships is the effect of the counterparty and the Group’s own credit
risk on the fair value of the foreign exchange forward contracts and swaps, which is not reflected in the fair value of the hedged
item attributable to changes in foreign exchange rates. In 2024 another source of ineffectiveness emerged from these hedging
relationships namely the principal amount of USD net investment hedges exceeded the hedged item for a period of ten days owing
to an adjustment to the USD net assets of the Group because of a change in the provision for the Zantac litigation between
quarters but after the financial instruments were entered into with the counterparty. The ineffectiveness recorded for this period was
£15 million. No ineffectiveness was recorded from cash flow hedges in 2024 (2023: £nil). No other ineffectiveness was recorded from
net investment hedges (2023: £nil).
In 2024, the movement in the time value of options recognised in reserves is £4 million (2023: £nil) and is accounted for as a cost of
hedging.
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GSK Annual Report 2024
Notes to the financial statements continued
275
44. Financial instruments and related disclosures continued
2024
Hedging instruments
Average
exchange rate
Foreign
currency
Net notional
value
£m
Carrying
amount
£m
Periodic
change in
value for
calculating
hedge
ineffectiveness
£m
Net investment hedges
Foreign exchange contracts
Sell foreign currency:
Less than 3 months
1.20
EUR
8,201
19
359
197.82
JPY
84
(1)
13
1.29
USD
2,417
(66)
(56)
9.26
CNH
61
(1)
(1)
3 to 6 months
1.31
USD
1,827
(75)
(75)
Over 6 months
1.76
CAD
244
2
17
1.67
SGD
164
–
3
1.17
EUR
208
–
1
Borrowings:
Less than 3 months
EUR
–
–
42
3 to 6 months
EUR
623
(622)
28
Over 6 months
JPY
216
(216)
19
EUR
4,524
(4,508)
157
18,570
(5,468)
507
2024
Hedged items
Periodic change in value
for calculating hedge
ineffectiveness
£m
Cumulative balance in cash
flow hedge reserve/foreign
currency translation reserve
for continuing hedges
£m
Balance in cash flow hedge
reserve arising from hedging
relationships for which hedge
accounting is no longer applied
£m
Net investment hedges
Net investment in foreign operations
(522)
(208)
–
2023
Hedging instruments
Average
exchange rate
Foreign
currency
Net notional
value
£m
Carrying
amount
£m
Periodic
change in
value for
calculating
hedge
ineffectiveness
£m
Cash flow hedges
Foreign exchange contracts
Buy foreign currency:
Less than 3 months
1.27
USD
145
(1)
(1)
3 to 6 months
–
–
–
–
–
Over 6 months
1.25
USD
35
(1)
(1)
Sell foreign currency:
Less than 3 months
1.16
EUR
(5)
–
–
175
(2)
(2)
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Notes to the financial statements continued
276
44. Financial instruments and related disclosures continued
2023
Hedging instruments
Average
exchange rate
Foreign
currency
Net notional
value
£m
Carrying
amount
£m
Periodic
change in
value for
calculating
hedge
ineffectiveness
£m
Net investment hedges
Foreign exchange contracts
Sell foreign currency:
Less than 3 months
1.15
EUR
9,146
(12)
126
181.42
JPY
133
(1)
28
1.27
USD
2,633
8
97
Over 6 months
1.67
CAD
260
2
10
1.66
SGD
167
1
7
Borrowings:
Less than 3 months
EUR
148
(148)
12
3 to 6 months
–
–
–
–
Over 6 months
JPY
236
(235)
(3)
EUR
5,127
(5,113)
125
17,850
(5,498)
402
2023
Hedged items
Periodic change in value
for calculating hedge
ineffectiveness
£m
Cumulative balance in cash
flow hedge reserve/foreign
currency translation reserve
for continuing hedges
£m
Balance in cash flow hedge
reserve arising from hedging
relationships for which hedge
accounting is no longer applied
£m
Cash flow hedges
Variability in cash flows from a highly probable forecast
transaction
2
(2)
–
Variability in cash flows from foreign exchange exposure
arising on Euro denominated coupon payments relating to
debt issued
–
–
–
Net investment hedges
Net investment in foreign operations
(402)
(725)
–
£nil (2023: £nil million) of balances in the cash flow hedge reserve arise from hedging relationships for which hedge accounting is
no longer applied.
The following table details the effectiveness of the hedging relationships and the amounts reclassified from the hedging reserve to
profit or loss:
2024
Amount reclassified to profit or loss
Amount reclassified to balance sheet
Hedging
gains/(losses)
recognised in
reserves
£m
Amount
of hedge
ineffectiveness
recognised in
profit or loss
£m
Line item
in profit or
loss in
which hedge
ineffectiveness
is included
Hedged
future cash
flows
no longer
expected to
occur
£m
Due to
hedged item
affecting
profit or loss
£m
Line item in
profit or loss
in which
reclassification
adjustment
is included
Due to hedged
item affecting
balance sheet
£m
Line item
in balance
sheet in which
reclassification
adjustment
is included
Cash flow hedges
Variability in cash flows from a
highly probable forecast
transaction
8
–
Finance
income or
expense
–
–
Finance
income or
expense
(6)
Intangible
assets
Net investment hedges
Net investment in foreign
operations
522
(15)
Finance
income
–
5
Other
income or
expense
–
–
Time value of options
(4)
–
Finance
income or
expense
–
–
Other
income or
expense
–
–
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Notes to the financial statements continued
277
44. Financial instruments and related disclosures continued
2023
Amount reclassified to profit or loss
Amount reclassified to balance sheet
Hedging
gains/(losses)
recognised in
reserves
£m
Amount
of hedge
ineffectiveness
recognised in
profit or loss
£m
Line item
in profit or
loss in
which hedge
ineffectiveness
is included
Hedged
future cash
flows
no longer
expected to
occur
£m
Due to
hedged item
affecting
profit or loss
£m
Line item in
profit or loss
in which
reclassification
adjustment
is included
Due to hedged
item affecting
balance sheet
£m
Line item
in balance
sheet in which
reclassification
adjustment
is included
Cash flow hedges
Variability in cash flows from
a highly probable forecast
transaction
(41)
–
Finance
income or
expense
–
–
–
37
Intangible
assets
Variability in cash flows from
foreign exchange exposure
arising on Euro denominated
coupon payments relating to
debt issued
(1)
–
Finance
income or
expense
–
–
Finance
income or
expense
–
–
Net investment hedges
Net investment in foreign
operations
402
–
Finance
income or
expense
–
7 Other income
or expense
–
–
Interest rate risk
The Group manages its cash flow interest rate risk by using floating-to-fixed interest rate swaps, where at quarterly intervals the
difference between fixed contract rates and floating rate interest amounts calculated by reference to the agreed notional principal
amounts are exchanged.
There are none of these swaps outstanding at 31 December 2024 or at 31 December 2023.
The only impact on these financial statements of interest rate swaps is where the interest rate risk on an element of future debt
issuance has been managed by entering into forward starting interest rate swaps, effectively to lock in the interest rates on the debt
in advance. These were closed out at the time of issuing the debt, and the resulting gain or loss held in the Cash flow hedge reserve
and reclassified to income statement as the interest payments on the debt impacted the income statement.
Forward starting interest rate swaps
Forward starting interest rate contracts, exchanging floating interest for fixed interest, were designated as cash flow hedges to
hedge the interest variability of the interest cash flows associated with future fixed rate debt.
Interest rate swaps
Interest rate swap contract assets and liabilities are presented (when applicable) in the line ‘Derivative financial instruments’ (either
as assets or liabilities) on the Consolidated balance sheet.
£16 million (2023: £21 million) of balances in the cash flow hedge reserve arise from hedge relationships for which hedge accounting
is no longer applied.
The following table details the effectiveness of the hedging relationships and the amounts reclassified from the hedging reserve to
profit or loss:
2024
Amount reclassified to profit or loss
Hedging
gains/(losses)
recognised in
reserves
£m
Amount
of hedge
ineffectiveness
recognised
in profit or loss
£m
Line item
in profit or
loss in
which hedge
ineffectiveness is
included
Due to
hedged future
cash flows
no longer
expected to
occur
£m
Due to
hedged item
affecting
profit or loss
£m
Line item
in profit or loss in
which
reclassification
adjustment
is included
Cash flow hedges
Pre-hedging of long-term interest rates:
Matured in the past
–
–
Finance
income or
expense
–
4
Finance
income or
expense
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Notes to the financial statements continued
278
44. Financial instruments and related disclosures continued
2023
Amount reclassified to profit or loss
Hedging
gains/(losses)
recognised in
reserves
£m
Amount
of hedge
ineffectiveness
recognised in
profit or loss
£m
Line item
in profit or
loss in
which hedge
ineffectiveness is
included
Due to
hedged future
cash flows
no longer
expected to
occur
£m
Due to
hedged item
affecting
profit or loss
£m
Line item
in profit or loss in
which
reclassification
adjustment
is included
Cash flow hedges
Pre-hedging of long-term interest rates:
Matured in the past
–
–
Finance
income or
expense
–
4
Finance
income or
expense
(e) Offsetting of financial assets and liabilities
Financial assets and liabilities are offset and the net amount reported in the balance sheet where there is a legally enforceable right
to offset the recognised amounts, and there is an intention to settle on a net basis or realise the asset and settle the liability
simultaneously. There are also arrangements that do not meet the criteria for offsetting but still allow for the related amounts to be
offset in certain circumstances, such as bankruptcy or the termination of a contract.
The following tables set out the financial assets and liabilities that are offset, or subject to enforceable master netting arrangements
and other similar agreements but not offset, as at 31 December 2024 and 31 December 2023. The column ‘Net amount’ shows the
impact on the Group’s balance sheet if all offset rights were exercised.
31 December 2024
Gross
financial
assets/
(liabilities)
£m
Gross
financial
(liabilities)/
assets set off
£m
Net financial
assets/
(liabilities) per
balance sheet
£m
Related
amounts not
set off in the
balance sheet
£m
Net
£m
Financial assets
Trade and other receivables
5,950
(1)
5,949
–
5,949
Derivative financial instruments
110
–
110
(89)
21
Financial liabilities
Trade and other payables
(13,161)
1
(13,160)
–
(13,160)
Derivative financial instruments
(192)
–
(192)
89
(103)
31 December 2023
Gross
financial
assets/
(liabilities)
£m
Gross
Financial
(liabilities)/
assets offset
£m
Net financial
assets/
(liabilities)
£m
Related
amounts not
offset
£m
Net
balance
£m
Financial assets
Trade and other receivables
6,394
(1)
6,393
–
6,393
Derivative financial instruments
130
–
130
(108)
22
Financial liabilities
Trade and other payables
(13,384)
1
(13,383)
–
(13,383)
Derivative financial instruments
(114)
–
(114)
108
(6)
Amounts which do not meet the criteria for offsetting on the balance sheet but could be settled net in certain circumstances
principally relate to derivative transactions under ISDA (International Swaps and Derivatives Association) agreements where each
party has the option to settle amounts on a net basis in the event of default of the other party. As there is presently not a legally
enforceable right of offset, these amounts have not been offset in the balance sheet, but have been presented separately in the
table above.
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Notes to the financial statements continued
279
44. Financial instruments and related disclosures continued
(f) Debt interest rate repricing table
The following table sets out the exposure of the Group to interest rates on debt, including commercial paper. The maturity analysis
of fixed rate debt is stated by contractual maturity and of floating rate debt by interest rate repricing dates. For the purpose of this
table, debt is defined as all classes of borrowings other than lease liabilities.
2024
2023
Total
debt
£m
Total
£m
Floating and fixed rate debt less than one year
(2,181)
(2,657)
Between one and two years
(1,410)
(1,434)
Between two and three years
(721)
(1,475)
Between three and four years
(2,355)
(740)
Between four and five years
(1,207)
(2,350)
Between five and ten years
(2,738)
(3,031)
Greater than ten years
(5,272)
(5,124)
Total
(15,884)
(16,811)
Original issuance profile:
Fixed rate interest
(15,126)
(15,847)
Floating rate interest
(756)
(964)
Non interest bearing
(2)
–
(15,884)
(16,811)
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GSK Annual Report 2024
Notes to the financial statements continued
280
44. Financial instruments and related disclosures continued
(g) Sensitivity analysis
The tables below illustrate the estimated impact on the income statement and equity as a result of hypothetical market movements
in foreign exchange and interest rates in relation to the Group’s financial instruments. The range of variables chosen for the
sensitivity analysis reflects management’s view of changes which are reasonably possible over a one-year period.
Foreign exchange sensitivity
The Group operates internationally and is primarily exposed to foreign exchange risk in relation to Sterling against movements in US
Dollar, Euro and Japanese Yen. Foreign exchange risk arises from the translation of financial assets and liabilities which are not in
the functional currency of the entity that holds them. Based on the Group’s net financial assets and liabilities as at 31 December, a
weakening and strengthening of Sterling against these currencies, with all other variables held constant, is illustrated in the tables
below. The tables exclude financial instruments that expose the Group to foreign exchange risk where this risk is fully hedged with
another financial instrument.
2024
2023
Income statement impact of non-functional currency foreign exchange exposures
Increase/(decrease) in
income
£m
Increase/(decrease) in
income
£m
10 cent appreciation of the US Dollar
106
61
15 cent appreciation of the US Dollar
167
97
10 cent appreciation of the Euro
(42)
(4)
15 cent appreciation of the Euro
(66)
(7)
10 yen appreciation of the Yen
–
–
15 yen appreciation of the Yen
–
–
2024
2023
Income statement impact of non-functional currency foreign exchange exposures
Increase/(decrease) in
income
£m
Increase/(decrease) in
income
£m
10 cent depreciation of the US Dollar
(91)
(52)
15 cent depreciation of the US Dollar
(131)
(76)
10 cent depreciation of the Euro
36
4
15 cent depreciation of the Euro
51
5
10 yen depreciation of the Yen
–
–
15 yen depreciation of the Yen
–
–
The equity impact, shown below, for foreign exchange sensitivity relates to derivative and non-derivative financial instruments
hedging the Group’s net investments in its European (Euro) foreign operations and cash flow hedges of its foreign exchange
exposure arising on Euro denominated coupon payments relating to notes issued under the Group’s European Medium Term
Note programme.
2024
2023
Equity impact of non-functional currency foreign exchange exposures
Increase/(decrease)
in equity
£m
Increase/(decrease)
in equity
£m
10 cent appreciation of the US Dollar
(368)
(209)
15 cent appreciation of the US Dollar
(577)
(327)
10 cent appreciation of the Euro
(1,188)
(1,372)
15 cent appreciation in Euro
(1,834)
(2,160)
2024
2023
Equity impact of non-functional currency foreign exchange exposures
Increase/(decrease)
in equity
£m
Increase/(decrease)
in equity
£m
10 cent depreciation of the US Dollar
313
178
15 cent depreciation of the US Dollar
453
258
10 cent depreciation of the Euro
958
1,152
15 cent depreciation of the Euro
1,384
1,662
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GSK Annual Report 2024
Notes to the financial statements continued
281
44. Financial instruments and related disclosures continued
The tables below present the Group’s sensitivity to a weakening and strengthening of Sterling against the relevant currency based
on the composition of net debt as shown in Note 30, 'Net debt', adjusted for the effects of foreign exchange derivatives that are not
part of net debt but affect future foreign currency cash flows.
2024
2023
Impact of foreign exchange movements on adjusted net debt
(Increase)/decrease
in adjusted net debt
£m
(Increase)/decrease
in adjusted net debt
£m
10 cent appreciation of the US Dollar
(555)
(622)
15 cent appreciation of the US Dollar
(870)
(974)
10 cent appreciation of the Euro
178
386
15 cent appreciation of the Euro
279
609
10 yen appreciation of the Yen
(5)
(5)
15 yen appreciation of the Yen
(8)
(7)
2024
2023
Impact of foreign exchange movements on adjusted net debt
(Increase)/decrease
in adjusted net debt
£m
(Increase)/decrease
in adjusted net debt
£m
10 cent depreciation of the US Dollar
473
531
15 cent depreciation of the US Dollar
684
769
10 cent depreciation of the Euro
(150)
(325)
15 cent depreciation of the Euro
(217)
(468)
10 yen depreciation of the Yen
5
4
15 yen depreciation of the Yen
7
6
Interest rate sensitivity
The Group is exposed to interest rate risk on its outstanding borrowings and investments where any changes in interest rates will
affect future cash flows or the fair values of financial instruments.
The majority of debt is issued at fixed interest rates and changes in the floating rates of interest do not significantly affect the
Group’s net interest charge, although the majority of cash and liquid investments earn floating rates of interest.
The table below hypothetically shows the Group’s sensitivity to changes in interest rates in relation to Sterling, US Dollar and Euro
floating rate financial assets and liabilities. A 1% (100 basis points) or 1.5% (150 basis points) movement in EUR, USD or Sterling
interest rates is not deemed to have a material effect on equity. A 1% (100 basis points) or 1.5% (150 basis points) decrease in EUR,
USD or Sterling interest rates would have an equal and opposite impact to that shown below.
2024
2023
Income statement impact of interest rate movements
Increase/(decrease)
in income
£m
Increase/(decrease)
in income
£m
1% (100 basis points) increase in Sterling interest rates
72
41
1.5% (150 basis points) increase in Sterling interest rates
108
62
1% (100 basis points) increase in US Dollar interest rates
(43)
(34)
1.5% (150 basis points) increase in US Dollar interest rates
(64)
(51)
1% (100 basis points) increase in Euro interest rates
(20)
(9)
1.5% (150 basis points) increase in Euro interest rates
(30)
(13)
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GSK Annual Report 2024
Notes to the financial statements continued
282
44. Financial instruments and related disclosures continued
(h) Contractual cash flows for non-derivative financial liabilities and derivative instruments
The following tables provide an analysis of the anticipated contractual cash flows including interest payable for the Group’s non-
derivative financial liabilities on an undiscounted basis. For the purpose of this table, debt is defined as all classes of borrowings
except for lease liabilities. Interest is calculated based on debt held at 31 December without taking account of future issuance.
Floating rate interest is estimated using the prevailing interest rate at the balance sheet date. Cash flows in foreign currencies are
translated using spot rates at 31 December.
At 31 December 2024
Debt
£m
Interest
on debt
£m
Lease
liabilities
£m
Finance
charge
on lease
liabilities
£m
Trade payables
and other
liabilities not
in net debt
£m
Total
£m
Due in less than one year
(2,181)
(540)
(168)
(41)
(14,440)
(17,370)
Between one and two years
(1,411)
(500)
(222)
(34)
(1,247)
(3,414)
Between two and three years
(723)
(484)
(146)
(29)
(1,593)
(2,975)
Between three and four years
(2,362)
(434)
(109)
(23)
(1,461)
(4,389)
Between four and five years
(1,213)
(383)
(73)
(20)
(913)
(2,602)
Between five and ten years
(2,759)
(1,646)
(299)
(53)
(2,318)
(7,075)
Greater than ten years
(5,320)
(1,251)
(85)
(14)
(1,313)
(7,983)
Gross contractual cash flows
(15,969)
(5,238)
(1,102)
(214)
(23,285)
(45,808)
At 31 December 2023
Debt
£m
Interest
on debt
£m
Lease
liabilities
£m
Finance
charge
on lease
liabilities
£m
Trade payables
and other
liabilities not
in net debt
£m
Total
£m
Due in less than one year
(2,660)
(547)
(156)
(41)
(14,526)
(17,930)
Between one and two years
(1,436)
(507)
(214)
(36)
(1,469)
(3,662)
Between two and three years
(1,477)
(466)
(134)
(31)
(1,150)
(3,258)
Between three and four years
(742)
(449)
(114)
(27)
(1,406)
(2,738)
Between four and five years
(2,359)
(399)
(88)
(23)
(940)
(3,809)
Between five and ten years
(3,054)
(1,611)
(325)
(75)
(2,037)
(7,102)
Greater than ten years
(5,172)
(1,467)
(176)
(21)
(1,043)
(7,879)
Gross contractual cash flows
(16,900)
(5,446)
(1,207)
(254)
(22,571)
(46,378)
The table below provides an analysis of the anticipated contractual cash flows for the Group’s derivative instruments excluding
equity options which do not give rise to cash flows, and other embedded derivatives, which are not material, using undiscounted
cash flows. Cash flows in foreign currencies are translated using spot rates at 31 December. The gross cash flows of foreign
exchange contracts are presented for the purpose of this table although, in practice, the Group uses standard settlement
arrangements to reduce its liquidity requirements on these instruments.
2024
2023
Gross cash inflows
Gross cash outflows
Gross cash inflows
Gross cash outflows
Foreign exchange forward
contracts and swaps
£m
Foreign exchange forward
contracts and swaps
£m
Foreign exchange forward
contracts and swaps
£m
Foreign exchange forward
contracts and swaps
£m
Less than one year
28,567
(28,634)
31,961
(31,944)
Between one and two years
36
(35)
–
–
Gross contractual cash flows
28,603
(28,669)
31,961
(31,944)
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GSK Annual Report 2024
Notes to the financial statements continued
283
45. Employee share schemes
GSK operates several employee share schemes, including the Share Value Plan, whereby awards are granted to employees to
acquire shares or ADS in GSK plc at no cost after a three-year vesting period and the Performance Share Plan, whereby awards are
granted to employees to acquire shares or ADS in GSK plc at no cost, subject to the achievement by the Group of specified
performance targets. The Group also operates savings-related share option schemes, whereby options are granted to employees to
acquire shares in GSK plc at a discounted price.
Grants of restricted share awards are normally exercisable at the end of the three-year vesting or performance period. Awards are
normally granted to employees to acquire shares or ADS in GSK plc but in some circumstances may be settled in cash. Grants under
savings-related share option schemes are normally exercisable after three years’ saving. In accordance with UK practice, the
majority of options under the savings-related share option schemes are granted at a price 20% below the market price ruling at the
date of grant.
The total charge for share-based incentive plans in 2024 was £347 million (2023: £321 million; 2022: £314 million). Of this amount,
£260 million (2023: £244 million; 2022: £243 million) arose from the Share Value Plan. See Note 9, ‘Employee costs’ for further
details.
GSK share award schemes
Share Value Plan
Under the Share Value Plan, share awards are granted to certain employees at no cost. The awards vest after two and a half to
three years and there are no performance criteria attached. The fair value of these awards is determined based on the closing
share price on the day of grant, after deducting the expected future dividend yield of 3.4% (2023: 3.8%; 2022: 3.2%) over the
duration of the award.
Number of shares and ADS issuable
Shares
Number (000)
Weighted
fair value
ADS
Number (000)
Weighted
fair value
At 1 January 2022
28,244
15,529
Awards granted
10,987
£13.00
6,133
$30.64
Awards exercised
(9,538)
(4,919)
Awards cancelled
(1,718)
(1,314)
At 31 December 2022
27,975
15,429
Awards granted
11,548
£12.79
6,449
$31.65
Awards exercised
(8,599)
(4,856)
Awards cancelled
(1,144)
(797)
At 31 December 2023
29,780
16,225
Awards granted
12,023
£15.17
6,431
$39.49
Awards exercised
(9,384)
(5,199)
Awards cancelled
(1,225)
(877)
At 31 December 2024
31,194
16,580
Performance Share Plan
Under the Performance Share Plan, share awards are granted to Directors and senior executives at no cost. The percentage of
each award that vests is based upon the performance of the Group over a defined measurement period with dividends reinvested
during the same period. For awards granted from 2020, the performance conditions are based on four measures over a three-year
performance period. These are adjusted free cash flow (30%), TSR (30%), R&D new product performance (20%) and pipeline
progress (20%). For awards granted from 2022, the performance conditions are based on five measures over a three-year
performance period. These are TSR (30%), pipeline progress (20%), profit measure (20%), sale measure (20%) and ESG
environment (10%).
The fair value of the awards is determined based on the closing share price on the day of grant. For TSR performance elements, this
is adjusted by the likelihood of that condition being met, as assessed at the time of grant.
During 2024, awards were made of 4.2 million shares at a weighted fair value of £13.65 and 0.9 million ADS at a weighted fair value
of $34.26. At 31 December 2024, there were outstanding awards over 13.7 million shares and 2.4 million ADS.
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GSK Annual Report 2024
Notes to the financial statements continued
284
45. Employee share schemes continued
Share options and savings-related options
For the purposes of valuing savings-related options to arrive at the share-based payment charge, a Black-Scholes option pricing
model has been used. The assumptions used in the model are as follows:
2024 Grant
2023 Grant
2022 Grant
Risk-free interest rate
4.24%
4.57%
3.37%
Dividend yield
4.3%
4.0%
3.3%
Volatility
34%
34%
36%
Expected life
3 years
3 years
3 years
Savings-related options grant price (including 20% discount)
£11.27
£11.20
£11.39
Expected volatility has been based on an evaluation of the historical volatility of the Company’s share price, particularly over the
historical period commensurate with the expected term.
Options outstanding for the Share Save Plan
Savings-related
share option schemes
Number
000
Weighted
exercise
price
At 31 December 2024
5,449
£11.44
Range of exercise prices on options outstanding at year end
£10.34
— £12.07
Weighted average market price on exercise during year
£16.24
Weighted average remaining contractual life
2.1 years
Options over 1.7 million shares were granted during the year under the savings-related share option scheme at a weighted average
fair value of £4.03. At 31 December 2024, 4.3 million of the savings-related share options were not exercisable.
There has been no change in the effective exercise price of any outstanding options during the year.
Employee Share Ownership Plan Trusts
The Group sponsors Employee Share Ownership Plan (ESOP) Trusts to acquire and hold shares in GSK plc to satisfy awards made
under employee incentive plans. The trustees of the ESOP Trusts purchase shares with finance provided by the Group by way of
loans or contributions. The costs of running the ESOP Trusts are charged to the income statement. Shares held by the ESOP Trusts
are deducted from other reserves and amortised down to the value of proceeds, if any, receivable from employees on exercise by a
transfer to retained earnings. The trustees have waived their rights to dividends on the shares held by the ESOP Trusts.
At 31 December 2024, 64,314,305 shares were held in the ESOP Trusts, out of which 63,666,947 were held for the future exercise of
share awards and 647,358 shares were held for the Executive Supplemental Savings Plan.
Shares held for share award schemes
2024
2023
Number of shares (000)
64,314
58,817
£m
£m
Nominal value
20
18
Carrying amount
397
288
Market value
866
853
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GSK Annual Report 2024
Notes to the financial statements continued
285
46. Principal Group companies
The following represent the principal subsidiaries and their countries of incorporation of the Group at 31 December 2024. The equity
share capital of these entities is shown in the percentage columns. All companies are incorporated in their principal country of
operation except where stated.
England
%
Glaxo Group Limited
100
Glaxo Operations UK Limited
100
Glaxo Wellcome UK Limited
100
GlaxoSmithKline Capital plc
100
GlaxoSmithKline Export Limited
100
GlaxoSmithKline Finance plc
100
GSK Finance (No. 2) Limited
100
GlaxoSmithKline Holdings Limited(a)
100
GlaxoSmithKline IHC Limited
100
GlaxoSmithKline Intellectual Property (No.2) Limited
100
GlaxoSmithKline Intellectual Property (No.3) Limited
100
GlaxoSmithKline Intellectual Property (No.4) Limited
100
GlaxoSmithKline Intellectual Property Development Limited
100
GlaxoSmithKline Intellectual Property Limited
100
GlaxoSmithKline Research & Development Limited
100
GlaxoSmithKline Services Unlimited(a)
100
GlaxoSmithKline UK Limited
100
GlaxoSmithKline US Trading Limited
100
Setfirst Limited
100
SmithKline Beecham Limited
100
ViiV Healthcare Finance Limited
78.3
ViiV Healthcare UK (No.3) Limited
78.3
ViiV Healthcare UK Limited
78.3
Europe
%
GlaxoSmithKline AG (Switzerland)
100
Glaxo Wellcome Production S.A.S (France)
100
GlaxoSmithKline B.V. (Netherlands)
100
GlaxoSmithKline Biologicals SA (Belgium)
100
GlaxoSmithKline GmbH & Co. KG (Germany)
100
GlaxoSmithKline Manufacturing SpA (Italy)
100
GlaxoSmithKline Pharma GmbH (Austria)
100
GlaxoSmithKline Pharmaceuticals SA (Belgium)
100
GlaxoSmithKline S.A. (Spain)
100
GlaxoSmithKline S.p.A. (Italy)
100
GlaxoSmithKline Single Member A.E.B.E. (Greece)
100
GlaxoSmithKline Trading Services Limited (Republic of Ireland)(b)
100
GSK Capital B.V. (Netherlands)(b)
100
GSK Services Sp z o.o. (Poland)
100
GSK Vaccines GmbH (Germany)
100
GSK Vaccines S.r.l. (Italy)
100
JSC GlaxoSmithKline Trading (Russia)
100
Laboratoire GlaxoSmithKline (France)
100
Laboratorios ViiV Healthcare, S.L. (Spain)
78.3
ViiV Healthcare GmbH (Germany)
78.3
ViiV Healthcare S.r.l. (Italy)
78.3
ViiV Healthcare SAS (France)
78.3
US
%
Affinivax, Inc
100
Aiolos Bio, Inc.
100
Corixa Corporation
100
GlaxoSmithKline Capital Inc.
100
GlaxoSmithKline Holdings (Americas) Inc.
100
GlaxoSmithKline LLC
100
Human Genome Sciences, Inc.
100
Stiefel Laboratories, Inc.
100
Tesaro, Inc.
100
ViiV Healthcare Company
78.3
Others
%
Glaxo Saudi Arabia Limited (Saudi Arabia)
100
GSK Life Sciences FZE (United Arab Emirates)
100
GlaxoSmithKline Colombia S.A.
100
Glaxo Wellcome Manufacturing Pte Ltd (Singapore)
100
GlaxoSmithKline (Thailand) Limited (Thailand)
100
GSK Biopharma Argentina S.A.
100
GlaxoSmithKline Australia Pty Ltd (Australia)
100
GlaxoSmithKline Brasil Limitada (Brazil)
100
GlaxoSmithKline Far East B.V. (Taiwan)
100
GlaxoSmithKline Ilaclari Sanayi ve Ticaret A.S. (Turkey)
100
GlaxoSmithKline Inc. (Canada)
100
GlaxoSmithKline K.K. (Japan)
100
GlaxoSmithKline Korea Limited (Republic of Korea)
100
GlaxoSmithKline Limited (Hong Kong)
100
GlaxoSmithKline Mexico S.A. de C.V. (Mexico)
100
GlaxoSmithKline Pakistan Limited (Pakistan)
82.6
GlaxoSmithKline Pharmaceuticals Limited (India)
75
GSK Enterprise Management Co, Ltd (China)
100
GSK Pharma Vietnam Company Limited (Vietnam)
100
ID Biomedical Corporation of Quebec (Canada)
100
ViiV Healthcare K.K (Japan)
78.3
(a) Directly held wholly-owned subsidiary of GSK plc.
(b) Tax resident in UK.
The subsidiaries and associates listed above principally affect the figures in the Group’s financial statements. Each of GlaxoSmithKline
Capital Inc., GlaxoSmithKline Capital plc, GlaxoSmithKline Finance plc, GSK Capital BV and GlaxoSmithKline LLC, is a wholly-owned
finance subsidiary of the company, and the Company has fully and unconditionally guaranteed the securities issued by each.
See pages 306 to 314 for a complete list of subsidiary undertakings, associates and joint ventures, which form part of these financial statements.
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GSK Annual Report 2024
Notes to the financial statements continued
286
47. Legal proceedings
The Group is involved in significant legal and administrative
proceedings, principally product liability, intellectual property,
tax, anti-trust, consumer fraud and governmental investigations.
The most significant of these matters, other than tax matters,
are described below. The Group makes provision for these
proceedings on a regular basis as summarised in Note 2,
‘Accounting principles and policies’ and Note 32, ‘Other
provisions’. Note 2 also describes when disclosure is made of
proceedings for which there is no provision. Legal expenses
incurred and provisions related to legal claims are charged to
selling, general and administration costs. The Group does not
believe that information about the amount sought by plaintiffs,
if that is known, would be meaningful with respect to those legal
proceedings. This is due to a number of factors, including, but
not limited to, the stage of proceedings, the entitlement of
parties to appeal a decision and clarity as to theories of liability,
damages and governing law.
At 31 December 2024, the Group’s aggregate provision for legal
and other disputes (not including tax matters described in Note
14, ‘Taxation’) was £1,446 million. There can be no assurance
that any losses that result from the outcome of any legal
proceedings will not materially exceed the amount of the
provisions reported in the Group’s financial statements. If this
were to happen, it could have a material adverse impact on the
results of operations of the Group in the reporting period in
which the judgements are incurred or the settlements entered
into.
Intellectual property
Intellectual property claims include challenges to the validity
and enforceability of the Group’s patents on various products or
processes as well as assertions of non-infringement of those
patents. A loss in such cases could result in loss of patent
protection for the product at issue. The consequences of any
such loss could be a significant decrease in sales of that
product and could materially affect future results of operations
for the Group.
Coreg
In 2014, GSK initiated suit against Teva for inducing
infringement of its patent relating to the use of carvedilol
(Coreg) in decreasing mortality caused by congestive heart
failure. In June 2017, the case proceeded to a jury trial in the US
District Court for the District of Delaware. The jury returned a
verdict in GSK’s favour, awarding GSK lost profits and
reasonable royalties for a total award of $235.51 million. On 29
March 2018, the trial judge ruled on post-trial motions filed by
Teva and found that substantial evidence at trial did not
support the jury’s finding of induced infringement, overturning
the jury award. GSK appealed, and on 2 October 2020, a
divided panel of the Court of Appeals for the Federal Circuit
reversed the district court’s ruling and reinstated the jury award
in GSK’s favour.
On 2 December 2020, Teva filed a petition for rehearing en
banc. The court granted Teva’s petition, but only for a rehearing
by the three-member panel that issued the original decision. On
5 August 2021, the original panel issued its rehearing opinion
where the majority again reinstated the jury’s damages award
of $235.51 million in GSK’s favour.
Teva again filed a petition for rehearing en banc which was
rejected by the Court of Appeals for the Federal Circuit on 11
February 2022. On 11 July 2022, Teva filed a petition for writ of
certiorari with the Supreme Court of the United States seeking
to overturn the Federal Court decision. On 15 May 2023, the US
Supreme Court denied Teva’s request. Certain issues remain to
be resolved at the District Court. On 12 December 2024, the trial
judge ruled that further briefing is needed. The briefing is to be
completed by 24 February 2025.
mRNA
On 25 April 2024, GSK filed a patent infringement suit against
Pfizer Inc. and BioNTech SE in the United States District Court
for the District of Delaware alleging infringement of five US GSK
patents by the COVID-19 vaccine, COMIRNATY®. On 14
August 2024, GSK filed a First Amended Complaint asserting 3
additional GSK patents against Pfizer/BioNTech bringing the
total number of asserted patents to 8. Pfizer/BioNTech filed an
Answer and Counterclaims to GSK’s First Amended Complaint
on 30 August 2024. Trial has yet to be scheduled.
On 12 October 2024, GSK filed two separate patent
infringement suits against Moderna, Inc. in the United States
District Court for the District of Delaware. The first suit alleges
infringement of 7 GSK patents by the COVID-19 vaccine,
SPIKEVAX. The second suit alleges infringement of 6 GSK
patents by the RSV vaccine, mRESVIA.
On 2 January 2025, Acuitas Therapeutics Inc. filed a
declaratory judgment complaint against GSK, seeking
judgment that COMIRNATY does not infringe five GSK patents.
Acuitas also seeks a ruling that the patents are invalid.
RSV
On 7 June 2022, Pfizer, Inc. filed suit in the London High Court
challenging the validity and requesting revocation of three GSK
European patents relating to RSV vaccine technology.
Corresponding invalidity suits against additional patents were
filed in the District Court of the Hague in the Netherlands in
January 2023 and in the Enterprise Court of Brussels in Belgium
in March 2023. In each of those matters GSK counterclaimed
that Pfizer’s RSV vaccine infringes GSK’s patents. On 2 August
2023, GSK filed a patent infringement suit against Pfizer in the
United States District Court for the District of Delaware alleging
infringement of four US GSK patents by Pfizer’s RSV vaccine,
Abrysvo. Additional patents have been added to the US
litigation. Pfizer counterclaimed in the US that all patents are
invalid, and that Pfizer’s product does not infringe. On 5 August
2024, GSK filed a patent infringement suit on a fourth European
patent in the European Unified Patent Court (“UPC”) at the
Düsseldorf Local Division. On 14 August 2024, Pfizer filed a
patent revocation suit against that same European patent in
the UPC.
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Financial statements
Investor information
GSK Annual Report 2024
Notes to the financial statements continued
287
47. Legal proceedings continued
The trial in the UK action took place in June 2023. On 7
October 2024, the London High Court ruled in Pfizer’s favour
and invalidated two of GSK’s patents relating to RSV vaccine
technology. The Court held a hearing on 13 December 2024 at
which GSK sought the Court’s permission to appeal its 7
October 2024 ruling. On 16 January 2025, the court issued a
decision refusing permission to appeal. GSK is seeking
permission to appeal from the Court of Appeal. In the
Netherlands, two separate first-instance hearings were held
and the parties await a decision. Trial dates have not been set
in Belgium or the UPC. In the US, the Court has set a trial date
of 3 August 2026. GSK is seeking monetary compensation from
Pfizer for Pfizer’s infringing sales of Abrysvo. GSK’s sales of
Arexvy are not at issue in these litigations.
Product liability
The Group is currently a defendant in a number of product
liability lawsuits.
Avandia
There are two pending US class actions (both filed in 2010) by
third-party payers which assert claims under the Racketeer
Influenced and Corrupt Organizations Act (RICO) and state
consumer protection laws. In December 2019, the Third Circuit
Court of Appeals reversed the summary judgements granted in
favour of the Group and remanded the third-party payer cases
back to district court. Discovery is complete, and class
certification and summary judgment briefing has been
completed. A hearing on certain Daubert motions relating to
experts was held on 1 February 2024. On 25 October 2024, the
district court granted GSK’s motion to exclude Plaintiffs’ expert
on causation, and excluded a portion of Plaintiffs’ damages
expert. The Court has scheduled a hearing on Plaintiffs’ motion
for class certification for 12 March 2025, and a hearing on GSK’s
motion for summary judgment for 21 April 2025.
Zantac
The Group has been named in product liability lawsuits on
behalf of individuals asserting personal injury claims arising out
of the use of Zantac. The federal cases are part of a
Multidistrict Litigation (MDL) proceeding pending in the United
States District Court for the Southern District of Florida. Cases
have also been filed in a number of state courts, the majority of
which are in Delaware.
As announced on 9 October 2024 GSK reached agreements
with 10 plaintiff firms who together represent 93%
(approximately 80,000 claimants) of the Zantac state court
product liability cases pending against GSK in the United
States. Under these agreements, GSK will make an aggregate
payment of up to $2.2 billion to resolve all U.S. state court
product liability cases handled by these plaintiff firms that meet
agreed eligibility and participation criteria (the “State Courts
Settlement”). The participating plaintiff firms are unanimously
recommending to their clients that they accept the terms of the
State Courts Settlement, which is expected to be fully
implemented by the end of H1 2025.
As of February 2025, the vast majority of the remaining state
court cases have resolved or been dismissed, such that less than
1% of the state court cases remain. There are no cases with trial
dates in 2025 and just two personal injury cases with trial dates
in 2026, both of which are in Nevada.
On 9 October 2024, GSK also reached an agreement in
principle to pay a total of $70 million to resolve the Zantac qui
tam complaint previously filed by Valisure. The agreement in
principle is subject to final approval from the Department of
Justice.
GSK’s appeal of the Delaware Superior Court’s decision
allowing Plaintiffs to present expert evidence of general
causation on all ten cancer types to a jury remains pending.
Oral argument has been scheduled before the Delaware
Supreme Court on 16 April 2025. As previously disclosed,
approximately 14,000 product liability cases were dismissed
following the grant of defendants’ Daubert motions in
December 2022 in the Federal MDL proceeding. These are now
on appeal by the plaintiffs to the United States Court of
Appeals for the Eleventh Circuit, along with appeals in the
medical monitoring and consumer class action cases. GSK
remains confident in its position and will continue to vigorously
defend against those appeals.
Outside the US, there are two proposed class actions pending
against GSK in Ontario and Quebec, Canada along with a class
action in Israel. The Ontario action is in the process of being
discontinued, and the Quebec action remains dormant. There
are also approximately 120 individual actions that have been
filed in Canada.
On 20 March 2020, the New Mexico Attorney General filed a
lawsuit against multiple defendants, including the Group,
alleging violations of state consumer protection and false
advertising statutes, among other claims. This case remains
pending. On 11 November 2020, the Mayor & City of Baltimore
filed an action against the Group alleging that Zantac
increased the risk of cancer and/or caused cancer in Baltimore
patients, and that the Group failed to warn of or concealed
those risks. Fact and expert discovery is ongoing. The court has
set a trial date of 28 September 2026.
On 4 February 2025, a putative securities class action lawsuit
was filed in the US District Court for the Eastern District of
Pennsylvania against GSK and certain officers on behalf of
purchasers of GSK publicly traded securities during the period 5
February 2020 through 14 August 2022. The complaint alleges
that defendants made materially false and/or misleading
statements or omissions with regard to Zantac.
Zofran
The Group was a defendant in over 400 product liability cases
involving Zofran pending in a Multidistrict Litigation (MDL)
proceeding in the District of Massachusetts. The cases alleged
that children suffered birth defects due to their mothers’
ingestion of Zofran and/or generic ondansetron for pregnancy-
related nausea and vomiting. Plaintiffs asserted that the Group
sold Zofran knowing it was unsafe for pregnant women, failed
to warn of the risks and illegally marketed Zofran “off-label” for
use by pregnant women.
On 1 June 2021, the MDL Court granted the Group’s motion for
summary judgment on federal pre-emption grounds. The Court
found that the FDA was fully informed of all relevant safety
information regarding Zofran and had repeatedly rejected any
attempt to add a birth defect warning to the label. At that time,
the Court granted judgment for the Group in all cases pending
in the MDL (approximately 431 cases) and closed the MDL
proceeding. Plaintiffs appealed this decision and, on 9 January
2023, the United States Court of Appeals for the First Circuit
affirmed the district court’s decision in favour of the Group.
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Investor information
GSK Annual Report 2024
Notes to the financial statements continued
288
47. Legal proceedings continued
There remains one state court case and four proposed class
actions in Canada, which are not currently active and plaintiffs’
counsel are seeking to discontinue.
Sales and marketing and regulation
The Group’s marketing and promotion of its Pharmaceutical
and Vaccine products are the subject of certain governmental
investigations and private lawsuits brought by litigants under
various theories of law.
Flovent – Arizona Attorney General
On 6 February 2025, the Arizona Attorney General filed a
lawsuit alleging violation of the state consumer protection
statute. The lawsuit alleges that GSK engaged in deceptive and
unfair practices with respect to Flovent.
GSK Korea – Proceedings under Fair Trade Laws
In August 2020, GSK Korea was indicted under Korea’s
Monopoly Regulation and Fair Trade laws in relation to
government tenders of HPV (Cervarix) and PCV (Synflorix)
vaccines in 2018 and 2019. The prosecutor alleged that GSK
Korea, through the actions of at least one of its employees,
interfered with the tender process under the National
Immunisation Programme by using “straw bidders.”
A former GSK Korea employee was also charged in his
individual capacity by the prosecutor in relation to the same
matter. Further, a number of wholesalers are co-defendants in
the proceedings. On 1 February 2023, the court rendered a
guilty verdict in respect of all defendants. GSK Korea was fined
KRW70 million which is approximately £45,000. In July 2024,
the appellate court rendered a not-guilty verdict for all
defendants, overturning the lower court’s decision. The case is
now before the Korea Supreme Court.
The Korea Fair Trade Commission (KFTC) also commenced
proceedings regarding the same matter. KFTC hearings took
place in July 2023 and GSK Korea was found in violation of
applicable fair trade law. The KFTC imposed a fine of
KRW351 million which is approximately £212,000.
US electronic health records subpoena
On 19 March 2023, the Group received a subpoena from the
United States Attorney’s Office for the Western District of
Virginia, which is working with the United States Department of
Justice Civil Division, seeking documents relating to the Group’s
electronic health record programmes. The Group is
cooperating with this enquiry.
Senate HELP Enquiry
The Group received a letter dated 8 January 2024 from
majority members of the US Senate Health, Education, Labor
and Pensions (“HELP”) Committee initiating an investigation
into the pricing of inhalers for the treatment of asthma and
COPD. The letter is similar to letters received by a number of
other pharmaceutical companies and requests information on
pricing, research in the treatment of respiratory diseases,
patenting and business practices. The Group is cooperating
with the enquiry.
Anti-trust/competition
Certain governmental actions and private lawsuits have been
brought against the Group alleging violation of competition or
anti-trust laws.
Lamictal
Purported classes of direct purchasers filed suit in the US
District Court for the District of New Jersey alleging that the
Group and Teva Pharmaceuticals unlawfully conspired to delay
generic competition for Lamictal, resulting in overcharges to
the purchasers, by entering into an allegedly anti-competitive
reverse payment settlement to resolve patent infringement
litigation. A separate count accuses the Group of monopolising
the market.
On 13 December 2018, the trial judge granted plaintiffs’ class
certification motion, certifying a class of direct purchasers. The
Group filed a Rule 23(f) motion in the Court of Appeals for the
Third Circuit, challenging the class certification decision. On 22
April 2020, the Court of Appeals vacated the lower court’s grant
of class certification and remanded the issue back to the lower
court for further analysis.
On 9 October 2020, the district court heard argument on
plaintiffs’ renewed motion for class certification after remand.
On 9 April 2021, the district court denied Plaintiffs’ motion for
class certification of the putative direct purchaser class, leaving
a potential class of brand-only purchasers. Plaintiffs moved to
supplement their expert report and seek additional discovery to
support the addition of certain generic purchasers. On 21
January 2022, the district court denied Plaintiffs’ motion to
supplement their expert report and seek additional discovery
and held that the issue of generic purchasers had already been
decided and denied in the court’s ruling on decertification. The
parties conducted briefing on class certification as to the
remaining brand-only purchasers, with plaintiffs also seeking to
add a smaller category of purchasers.
On 1 February 2023, the district court denied Plaintiffs’ renewed
class certification motion. A series of follow-on complaints have
been filed in the US District Court for the Eastern District of
Pennsylvania by groups of alleged purchasers. The cases have
been consolidated with the previously pending case in the
District of New Jersey. Discovery is ongoing.
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Investor information
GSK Annual Report 2024
Notes to the financial statements continued
289
47. Legal proceedings continued
Commercial and corporate
The Group is involved in certain contractual and/or commercial
disputes.
Zejula Royalty Dispute
In October 2012, Tesaro, Inc. (now a wholly owned subsidiary of
GSK) entered into two worldwide patent licence agreements
with AstraZeneca UK Limited related to niraparib (later
approved as Zejula). In May 2021, AstraZeneca filed a lawsuit
against Tesaro in the High Court, England and Wales alleging
that Tesaro failed to pay some of the royalties due under the
license agreements. Tesaro has counterclaimed based on a
calculated overpayment.
Trial was held in the week of 6 March 2023 and judgment was
entered against the Group on 5 April 2023, ruling that all current
uses of Zejula generate royalty-bearing sales under the
wording of the two licence agreements. On 12 June 2023, the
Court of Appeal of England and Wales granted the Group’s
request for permission to appeal the 5 April 2023 judgment.
The appeal was heard on 17 January 2024 and on 9 February
2024 the Court of Appeal ruled in the Group’s favour,
overturning the trial court’s judgment and determining that only
Zejula sales for uses falling within the licensed patents could be
deemed royalty-bearing. AstraZeneca requested permission to
appeal and on 28 May 2024, the UK Supreme Court rejected
AstraZeneca’s request. The appropriate quantum of royalties
following the Court of Appeal’s judgement may be the subject
of further proceedings.
48. Post balance sheet events
On 13 January 2025, GSK announced it had entered into an agreement to acquire IDRx, Inc. (IDRx) a clinical-stage
biopharmaceutical company dedicated to transforming cancer care with intelligently designed precision therapies. The acquisition
includes lead molecule, IDRX-42, a highly selective investigational small molecule tyrosine kinase inhibitor (TKI) being developed as
a first- and second-line therapy for the treatment of gastrointestinal stromal tumours.
GSK acquired all of the outstanding equity interests (including all options and other incentive equity) in IDRx for up to US$1.15 billion
of total cash consideration, comprising an upfront payment of US$1 billion with potential for an additional US$150 million success-
based regulatory approval milestone payment. GSK is also be responsible for success-based milestone payments as well as tiered
royalties for IDRX-42 owed to Merck KGaA, Darmstadt, Germany. The transaction was subject to customary conditions, including
applicable regulatory agency clearances under the Hart-Scott-Rodino Act in the US, and subsequently closed on 21 February 2025.
Given the timing of the closure of the transaction, GSK expects to disclose the provisional accounting for the acquisition in the Q1
2025 Results Announcement.
On 5 February 2025, GSK announced its intention to implement a £2 billion share buyback programme to be completed over an 18
month period. The programme commenced on 24 February 2025 with an initial tranche of up to £0.7 billion.
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GSK Annual Report 2024
Notes to the financial statements continued
290
Notes
2024
£m
2023
£m
Fixed assets – investments
E
20,307
22,631
Current assets:
Trade and other receivables
F
27,111
22,657
Cash at bank
15
17
Total current assets
27,126
22,674
Trade and other payables
G
(645)
(740)
Total current liabilities
(645)
(740)
Net current assets
26,481
21,934
Total assets less current liabilities
46,788
44,565
Provisions for liabilities
H
(20)
(20)
Other non-current liabilities
G
(528)
(388)
Net assets
46,240
44,157
Capital and reserves
Share capital
I
1,348
1,348
Share premium account
I
3,473
3,451
Other reserves
J
1,420
1,420
Retained earnings
J
39,999
37,938
Equity shareholders’ funds
46,240
44,157
The Company’s profit for the year was £4,035 million (2023: £6,643 million).
The financial statements on pages 291 to 295 were approved by the Board on 25 February 2025 and signed on its behalf by
Sir Jonathan Symonds
Chair GSK plc
Registered number: 3888792
Company statement of changes in equity
for the year ended 31 December 2024
Share
capital
£m
Share
premium
account
£m
Other
reserves
£m
Retained
earnings
£m
Total
equity
£m
At 1 January 2023
1,347
3,440
1,420
33,239
39,446
Profit and Total comprehensive income attributable to shareholders
–
–
–
6,643
6,643
Treasury shares transferred to the ESOP Trust
–
–
–
283
283
Dividends to shareholders (Note D)
–
–
–
(2,247)
(2,247)
Shares issued under employee share schemes
1
11
–
20
32
At 31 December 2023
1,348
3,451
1,420
37,938
44,157
Profit and Total comprehensive income attributable to shareholders
–
–
–
4,035
4,035
Treasury shares transferred to the ESOP Trust
–
–
–
459
459
Dividends to shareholders (Note D)
–
–
–
(2,444)
(2,444)
Shares issued under employee share schemes
–
22
–
11
33
At 31 December 2024
1,348
3,473
1,420
39,999
46,240
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GSK Annual Report 2024
Company balance sheet – UK GAAP
31 December 2024
291
A) Presentation of the financial statements
Description of business
GSK plc is the parent company of GSK, a major global
biopharma group which prevents and treats disease with
specialty medicines, vaccines, and general medicines.
Preparation of financial statements
The financial statements, which are prepared using the
historical cost convention (as modified to include the
revaluation of certain financial instruments) and on a going
concern basis, are prepared in accordance with Financial
Reporting Standard 101 ‘Reduced Disclosure Framework’ ('FRS
101') and the Companies Act 2006 as at 31 December 2024,
with comparative figures as at 31 December 2023.
As permitted by section 408 of the Companies Act 2006, the
income statement of the company is not presented in this
Annual Report.
The company is included in the Group financial statements of
GSK plc, which are publicly available.
The following exemptions from the requirements of IFRS have
been applied in the preparation of these financial statements,
in accordance with FRS 101:
– Paragraphs 45(b) and 46 to 52 of IFRS 2, ‘Share-based
payment’
– IFRS 7, ‘Financial Instruments – Disclosures’
– Paragraphs 91-99 of IFRS 13, ‘Fair value measurement’
– Paragraph 38 of IAS 1, ‘Presentation of financial statements’
comparative information requirements in respect of
paragraph 79(a) (iv) of IAS 1
– Paragraphs 10(d), 10(f), 16, 38(A), 38 (B to D), 40 (A to D), 111
and 134 to 136 of IAS 1, ‘Presentation of financial statements’
– IAS 7, ‘Statement of cash flows’
– Paragraph 30 and 31 of IAS 8, ‘Accounting policies, changes
in accounting estimates and errors’
– Paragraph 17 of IAS 24, ‘Related party disclosures’ and the
further requirement in IAS 24 to disclose related party
transactions entered into between two or more members of a
Group.
Accounting principles and policies
The preparation of the balance sheet in conformity with
generally accepted accounting principles requires
management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the balance
sheet. Actual amounts could differ from those estimates.
The balance sheet has been prepared in accordance with the
company’s accounting policies approved by the Board and
described in Note B. These policies have been consistently
applied, unless otherwise stated.
Key accounting judgements and estimates
No key accounting judgements or estimates were required in
the current year.
B) Accounting policies
Foreign currency transactions
Foreign currency transactions are recorded at the exchange
rate ruling on the date of transaction. Foreign currency
monetary assets and liabilities are translated at rates of
exchange ruling at the balance sheet date.
Dividends paid and received
Dividends paid and received are included in the financial
statements in the period in which the related dividends are
actually paid or received, utilising the company’s current
account to fund the payment of dividends.
Expenditure
Expenditure is recognised in respect of goods and services
received when supplied in accordance with contractual terms.
Provision is made when an obligation exists for a future liability
in respect of a past event and where the amount of the
obligation can be reliably estimated.
Investments in subsidiary companies
Investments in subsidiary companies are held at cost less any
provision for impairment and also includes a capital
contribution in relation to movements in contingent
consideration.
Impairment of investments
The carrying amount of investments are reviewed for
impairment when there is an indication that the investment
might be impaired. The assessment method used is to compare
the carrying amount of each investment against its share of the
net assets value of the investment or against its share of the
valuation of the subsidiary based on expected discounted cash
flows. Any impairment charge is recognised in the income
statement in the year concerned.
Trade and other receivables
Trade and other receivables are carried at amortised cost less
allowance of expected credit losses. Expected credit losses are
calculated in accordance with the approach permitted by IFRS
9. The majority of the balance within trade and other
receivables is amounts owed by Group undertakings. The
Company applies a general approach to calculate the
expected credit losses. If a receivable is determined to be non-
collectable it is written off, firstly against any expected credit
loss allowance available and then to the income statement.
Subsequent recoveries of amounts previously provided for are
credited to the statement of comprehensive income. Long-term
receivables are discounted where the effect is material.
Share-based payments
The Company issues shares to employees under the Share Save
Plan and the Deferred Annual Bonus Plan (DABP) on behalf of
its subsidiary companies for cash consideration.
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GSK Annual Report 2024
Notes to the company balance sheet – UK GAAP
(including FRS 101 ‘Reduced Disclosure Framework’)
292
Treasury shares
The purchase price paid for the Treasury shares is included
within retained earnings. Treasury shares are transferred to the
ESOP trust at the fair market price at the date of the transfer
for cash consideration. If the proceeds are equal to or less than
the purchase price paid by the Company for the shares, the
proceeds are treated as a realised loss. If the proceeds exceed
the purchase price, the excess over the purchase price is
transferred to the share premium account. The purchase price
paid by the Company for the shares is determined by the use of
a weighted average price method.
Taxation
Current tax is provided at the amounts expected to be paid
applying tax rates that have been enacted or substantively
enacted by the balance sheet date.
Deferred tax is provided in full, using the liability method, on
temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the financial
statements. Deferred tax assets are only recognised to the
extent that they are considered recoverable against future
taxable profits.
Deferred tax is measured at the average tax rates that are
expected to apply in the periods in which the temporary
differences are expected to be realised or settled. Deferred tax
liabilities and assets are not discounted.
Financial guarantees
Liabilities relating to guarantees issued by the company on
behalf of its subsidiaries are initially recognised at fair value
and subsequently measured at the higher of:
1. the expected credit loss (ECL) allowance measured using the
general approach; and
2. the amount initially recorded less, when appropriate,
accumulated amortisation.
C) Operating profit
A fee of £15,179 (2023: £14,752) relating to the audit of the
company has been charged in operating profit.
D) Dividends
In 2024 the Directors declared four interim dividends resulting
in a dividend for the year of 61 pence. For further details, see
Note 16 'Dividends' to the Group financial statements.
E) Fixed assets – investments
2024
£m
2023
£m
Shares in GlaxoSmithKline Services Unlimited
654
654
Shares in GlaxoSmithKline Holdings (One) Limited
18
18
Shares in GlaxoSmithKline Holdings Limited
17,888
17,888
Shares in GlaxoSmithKline Mercury Limited
33
33
Shares in GSK LP Limited
–
2,476
18,593
21,069
Capital contribution relating to share-based payments
1,139
1,139
Contribution relating to contingent consideration
575
423
20,307
22,631
Fixed asset investments, including investment in subsidiaries, are stated at cost and reviewed for impairment if there are indications
that the carrying value may not be recoverable. Management evaluates on a case-to-case basis whether any impairment booked
for the Group impacts the carrying value of the investments. Based on the evaluation for the current year, management has not
determined any indicators of impairment for investments.
In the current year GSK LP Limited has repaid the investment of £2,476 million to the parent. The amount received in excess of the
investment has been recorded as dividend income of £227 million.
The capital contribution of £1,139 million refers to a historic contribution the Company for share-based payments to employees.
The contingent consideration at 31 December 2024 is in respect of arrangements entered into as part of the ordinary course of the
Group’s business to which the Company was a signing party.
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GSK Annual Report 2024
Notes to the company balance sheet – UK GAAP
(including FRS 101 ‘Reduced Disclosure Framework’)
293
F) Trade and other receivables
2024
£m
2023
£m
Amounts due within one year:
Other debtors
–
1
Amounts owed by Group undertakings
26,850
22,367
26,850
22,368
Amounts due after more than one year:
Amounts owed by Group undertakings
261
289
27,111
22,657
The amounts owed by Group undertakings due within one year primarily include a call account balance with GSK Finance plc which
is unsecured, repayable on demand with interest received at SONIA rate less 0.05% per annum (2023: SONIA rate less 0.05%).
The Directors consider that the carrying amount of amounts owed by Group undertakings approximates to their fair values. The
recoverability of these balances has been assessed and no provision for expected credit loss has been recognised. The counter-
party has access to sufficient funds and assets to fulfil its future obligations. Amounts owed by Group undertakings are not past due
and there is no increased credit risk experienced since initial recognition.
The movement in the Amounts owed by/to Group undertakings in the period, as reflected within Notes F and G, primarily reflects the
receipt of dividend income from subsidiaries and utilisation of the company’s current account to fund the payment of interim
dividends.
G) Trade and other payables
2024
£m
2023
£m
Amounts due within one year:
Other creditors
318
349
Contingent consideration payable
47
35
Corporation tax
280
201
Amounts owed to Group undertakings
–
155
At 31 December
645
740
Amounts due after more than one year:
Contingent consideration payable
528
388
At 31 December
528
388
The Company has guaranteed debt issued by certain subsidiary companies and for which it receives an annual fee from one of the
subsidiaries. In aggregate, the company has outstanding guarantees over £15.2 billion of debt instruments (2023: £16.5 billion). The
financial guarantee contract liability of £298 million (2023: £327 million) is included within other creditors. The amounts due from
the subsidiary company in relation to these guarantee fees will be recovered over the life of the bonds and are disclosed within
‘Trade and other receivables’ (see Note F).
The contingent consideration relates to the amount payable for the acquisition in 2015 of the Novartis Vaccines portfolio. The
current year liability is included within ‘Trade and other payables’ and the amounts due after more than one year are included in
‘Other non-current liabilities’. For further details, see Note 33 'Contingent consideration liabilities' to the Group financial statements.
H) Provisions for liabilities
2024
£m
2023
£m
At 1 January
20
13
Charge for the year
33
28
Utilised
(33)
(21)
At 31 December
20
20
The provisions relate to a number of legal and other disputes in which the company is currently involved.
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GSK Annual Report 2024
Notes to the company balance sheet – UK GAAP
(including FRS 101 ‘Reduced Disclosure Framework’)
294
I) Share capital and share premium account
Ordinary shares
Share
premium
account
Number
£m
£m
Share capital issued and fully paid
1 January 2023
4,312,145,983
1,348
3,451
Issued under employee share schemes
2,157,751
–
20
Ordinary shares acquired by ESOP Trust
–
–
2
At 31 December 2024
4,314,303,734
1,348
3,473
At 31 December 2024, of the issued share capital, 64,314,305 shares were held in the ESOP Trusts (out of which 63,666,947 were held
for future exercise of share options and share awards and 647,358 shares were held for the Executive Supplemental Savings Plan),
169,171,555 shares were held as Treasury shares and 4,080,818,273 shares were in free issue. All issued shares are fully paid and there
are no shares authorised but not in issue. The nominal, carrying and market values of the shares held in the ESOP Trusts are
disclosed in Note 45, ‘Employee share schemes’.
The Company expects to implement a £2 billion share buyback programme over the next 18 months. The programme commenced
on 24 February 2025 with an initial tranche of up to £0.7 billion.
J) Retained earnings and other reserves
The Board reviews the level of distributable reserves of GSK plc annually as per Tech 2/17 Guidance on Realised and Distributable
Profits under the Companies Act 2006, and aims to maintain distributable reserves that provide adequate cover for dividend
payments.
The availability of distributable reserves in GSK plc is dependent on the ability of the subsidiaries to recover their receivables within a
reasonable period of time. The Directors consider that, based on the nature of these receivables and the available cash resources,
the distributable reserves at 31 December 2024 amounted to £25,000 million.
The profit of GSK plc for the year was £4,035 million (2023: £6,643 million). After dividends paid of £2,444 million (2023: £2,247
million) and the effect of £459 million Treasury shares transferred to a subsidiary company (2023: £283 million), retained earnings at
31 December 2024 stood at £39,999 million (2023: £37,938 million), of which £14,999 million is not considered by the Company to be
available for distribution (2023: £12,938 million). Dividends to shareholders are paid out of the reserves of the Company considered
to be available for distribution, which at 31 December 2024 amounted to £25,000 million (2023: £25,000 million).
Other reserves includes a capital redemption reserve and a reserve reflecting historical contributions of shares in the company
which were issued to satisfy share option awards granted to employees of subsidiary companies.
K) Group companies
See pages 330 to 338 for a complete list of subsidiaries, associates, joint ventures and other significant shareholdings, which forms
part of these financial statements.
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Notes to the company balance sheet – UK GAAP
(including FRS 101 ‘Reduced Disclosure Framework’)
295
Investor
Information
In this section
Commercial Operations turnover
297
Three year record
299
Product development pipeline
301
Products and intellectual property
305
Principal risks and uncertainties
307
Share capital and control
319
Dividends
321
Financial calendar 2025
322
Annual General Meeting 2025
322
Tax information for shareholders
323
Shareholder services and contacts
325
US law and regulation
327
Group companies
330
Glossary of terms
339
GSK Annual Report 2024
296
Commercial Operations turnover by therapeutic area 2024
Total
US
Europe
International
2024
Growth
2024
Growth
2024
Growth
2024
Growth
£m
£%
CER%
£m
£%
CER%
£m
£%
CER%
£m
£%
CER%
Shingles
3,364
(2)
1
1,494
(21)
(18)
917
1
3
953
45
52
Shingrix
3,364
(2)
1
1,494
(21)
(18)
917
1
3
953
45
52
Meningitis
1,437
14
18
662
9
12
483
12
14
292
35
43
Bexsero
1,010
19
23
364
17
20
472
13
16
174
44
56
Menveo
387
2
5
298
–
3
7
(42)
(42)
82
19
23
Other
40
29
32
–
–
–
4
–
–
36
33
37
RSV
590
(52)
(51)
503
(58)
(57)
33
>100
>100
54
35
42
Arexvy
590
(52)
(51)
503
(58)
(57)
33
>100
>100
54
35
42
Influenza
408
(19)
(16)
317
(15)
(12)
31
(21)
(18)
60
(36)
(33)
Fluarix/FluLaval
408
(19)
(16)
317
(15)
(12)
31
(21)
(18)
60
(36)
(33)
Established Vaccines
3,339
2
6
1,310
4
7
722
(3)
–
1,307
3
7
Infanrix, Pediarix
512
(8)
(5)
265
(9)
(6)
120
(1)
2
127
(11)
(6)
Boostrix
681
11
14
429
9
12
137
12
15
115
17
24
Hepatitis
692
13
17
389
16
19
190
7
10
113
15
19
Rotarix
587
(4)
(1)
172
(10)
(8)
123
4
7
292
(4)
1
Synflorix
226
(18)
(15)
–
–
–
11
(69)
(69)
215
(10)
(7)
Priorix, Priorix Tetra, Varilrix
323
22
26
39
>100
>100
122
(5)
(2)
162
35
40
Cervarix
72
(40)
(38)
–
–
–
14
(58)
(58)
58
(33)
(31)
Others
246
15
19
16
(36)
(36)
5
(17)
(33)
225
24
28
Vaccines ex COVID
9,138
(6)
(3) 4,286
(19)
(17) 2,186
3
5
2,666
17
23
Pandemic vaccines
–
(100)
(100)
–
–
–
–
(100)
(100)
–
(100)
(100)
Pandemic adjuvant
–
(100)
(100)
–
–
–
–
(100)
(100)
–
(100)
(100)
Vaccines
9,138
(7)
(4) 4,286
(19)
(17) 2,186
(3)
(1) 2,666
16
21
HIV
7,089
10
13
4,792
12
15
1,496
5
8
801
9
14
Dolutegravir products:
5,599
4
7
3,536
3
6
1,316
2
4
747
7
12
Tivicay
1,350
(3)
1
781
(2)
–
252
(6)
(4)
317
–
5
Triumeq
1,325
(14)
(11)
942
(12)
(10)
222
(21)
(19)
161
(14)
(9)
Juluca
685
4
7
546
7
10
127
(7)
(4)
12
(14)
(7)
Dovato
2,239
23
27
1,267
23
26
715
18
20
257
43
50
Rukobia
161
38
41
149
35
39
8
14
14
4
>100
>100
Cabenuva
1,013
43
47
831
42
46
156
51
54
26
44
56
Apretude
279
87
93
270
81
87
–
–
–
9
–
–
Others
37
(40)
(37)
6
(68)
(68)
16
(30)
(26)
15
(25)
(20)
Respiratory/Immunology and Other
3,299
9
13
2,193
4
7
548
17
20
558
22
32
Nucala
1,784
8
12
970
(1)
2
450
17
20
364
24
34
Benlysta
1,490
10
14
1,222
9
12
115
16
19
153
19
27
Other
25
19
33
1
–
–
(17)
(21)
(21)
41
21
29
Oncology
1,410
93
98
1,000
>100
>100
337
17
19
73
59
72
Zejula
593
13
17
305
19
22
231
4
6
57
30
36
Blenrep
2
(94)
(94)
(3)
(50)
>(100)
5
(87)
(87)
–
–
–
Jemperli
467
>100
>100
382
>100
>100
74
>100
>100
11
>100
>100
Ojjaara
353
>100
>100
316
>100
>100
32
–
–
5
–
–
Other
(5)
>(100)
(100)
–
–
–
(5)
>(100)
>(100)
–
–
>100
Specialty Medicines ex COVID
11,798
16
19
7,985
18
21
2,381
9
12
1,432
15
23
Pandemic
12
(73)
(73)
10
–
10
1
(67)
(67)
1
(97)
>(100)
Xevudy
12
(73)
(73)
10
–
10
1
(67)
(67)
1
(97)
>(100)
Specialty Medicines
11,810
15
19
7,995
18
21
2,382
9
12
1,433
13
20
Respiratory
7,213
6
10
3,869
12
16
1,423
1
4
1,921
(3)
4
Anoro Ellipta
572
3
6
258
(4)
(1)
221
15
17
93
(2)
5
Flixotide/Flovent
527
17
21
359
27
30
71
1
3
97
(1)
5
Relvar/Breo Ellipta
1,067
(3)
1
393
(10)
(7)
372
2
4
302
–
8
Seretide/Advair
1,057
(7)
(3)
364
7
10
219
(14)
(13)
474
(13)
(7)
Trelegy Ellipta
2,702
23
27
1,986
24
27
312
13
16
404
26
35
Ventolin
702
(6)
(3)
362
(10)
(7)
107
7
10
233
(6)
(1)
Other Respiratory
586
(6)
(1)
147
37
41
121
(15)
(13)
318
(15)
(9)
Other General Medicines
3,215
(5)
–
234
(16)
(14)
675
(7)
(5) 2,306
(4)
3
Augmentin
635
1
7
–
–
–
185
(1)
2
450
2
10
Lamictal
405
(7)
(3)
163
(16)
(13)
106
(5)
(3)
136
5
12
Other General Medicines
2,175
(7)
(1)
71
(17)
(16)
384
(10)
(8) 1,720
(5)
1
General Medicines
10,428
2
6
4,103
10
13
2,098
(1)
1
4,227
(3)
3
Total Commercial Operations
31,376
3
7
16,384
4
6
6,666
2
4
8,326
5
11
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Financial record
297
Commercial Operations turnover by therapeutic area 2023
Total
US
Europe
International
2023
Growth
2023
Growth
2023
Growth
2023
Growth
£m
£%
CER%
£m
£%
CER%
£m
£%
CER%
£m
£%
CER%
Shingles
3,446
16
17
1,880
(4)
(4)
908
32
30
658
>100
>100
Shingrix
3,446
16
17
1,880
(4)
(4)
908
32
30
658
>100
>100
Meningitis
1,260
13
14
610
6
7
433
20
17
217
20
29
Bexsero
849
13
14
311
(7)
(6)
417
24
21
121
46
61
Menveo
380
10
12
299
25
25
12
(40)
(45)
69
(19)
(13)
Other
31
72
67
–
–
–
4
(20)
(20)
27
>100
>100
RSV
1,238
–
–
1,194
–
–
4
–
–
40
–
–
Arexvy
1,238
–
–
1,194
–
–
4
–
–
40
–
–
Influenza
504
(29)
(29)
371
(32)
(32)
39
(32)
(33)
94
(13)
(10)
Fluarix/FluLaval
504
(29)
(29)
371
(32)
(32)
39
(32)
(33)
94
(13)
(10)
Established Vaccines
3,266
6
7
1,254
8
9
742
3
2
1,270
5
7
Infanrix, Pediarix
554
(7)
(6)
291
(11)
(11)
121
(8)
(8)
142
4
10
Boostrix
614
3
4
394
9
10
122
(12)
(13)
98
2
4
Hepatitis
611
7
8
336
(2)
(1)
177
25
23
98
14
17
Rotarix
614
17
18
192
>100
>100
118
(3)
(5)
304
(2)
2
Synflorix
275
(10)
(10)
–
–
–
36
6
3
239
(12)
(12)
Priorix, Priorix Tetra, Varilrix
265
41
41
16
60
60
129
33
30
120
48
53
Cervarix
120
3
5
–
–
–
33
50
45
87
(8)
(4)
Others
213
13
11
25
14
9
6
(82)
(76)
182
37
34
Vaccines ex COVID
9,714
23
24
5,309
25
26
2,126
16
15
2,279
26
31
Pandemic vaccines
150
>100
>100
–
–
–
130
>100
>100
20
>100
>100
Pandemic adjuvant
150
>100
>100
–
–
–
130
>100
>100
20
>100
>100
Vaccines
9,864
24
25
5,309
25
26
2,256
20
18
2,299
27
31
HIV
6,444
12
13
4,283
14
14
1,423
9
7
738
8
16
Dolutegravir products:
5,408
4
5
3,418
3
4
1,290
4
3
700
9
17
Tivicay
1,386
–
2
801
(3)
(2)
267
(2)
(4)
318
12
21
Triumeq
1,542
(14)
(14) 1,074
(12)
(11)
280
(22)
(24)
188
(15)
(11)
Juluca
661
4
4
511
3
4
136
7
6
14
(7)
(7)
Dovato
1,819
32
33
1,032
33
33
607
27
25
180
50
59
Rukobia
117
43
44
110
39
41
7
>100
>100
–
–
–
Cabenuva
708
>100
>100
587
100
>100
103
>100
>100
18
>100
>100
Apretude
149
>100
>100
149
>100
>100
–
–
–
–
–
–
Others
62
(35)
(33)
19
(39)
(42)
23
(18)
(25)
20
(44)
(31)
Respiratory/Immunology and Other
3,025
16
18
2,100
15
15
468
28
26
457
11
21
Nucala
1,655
16
18
978
11
11
383
28
26
294
21
33
Benlysta
1,349
18
19
1,121
18
19
99
19
18
129
13
25
Other
21
(48)
(42)
1
–
–
(14)
18
12
34
(40)
(33)
Oncology
731
21
23
396
27
27
289
14
13
46
28
61
Zejula
523
13
15
257
9
10
222
14
12
44
29
65
Blenrep
36
(69)
(69)
(2)
>(100)
>(100)
38
(27)
(27)
–
–
–
Jemperli
141
>100
>100
108
>100
>100
31
>100
>100
2
>100
>100
Ojjaara
33
–
–
33
–
–
–
–
–
–
–
–
Other
(2)
>(100)
>(100)
–
–
–
(2)
(100)
–
–
>(100)
(100)
Specialty Medicines ex COVID
10,200
14
15
6,779
15
15
2,180
13
11
1,241
10
19
Pandemic
44
(98)
(98)
10
(99)
(99)
3
(99)
(99)
31
(97)
(97)
Xevudy
44
(98)
(98)
10
(99)
(99)
3
(99)
(99)
31
(97)
(97)
Specialty Medicines
10,244
(9)
(8) 6,789
1
1
2,183
(8)
(10) 1,272
(41)
(36)
Respiratory
6,825
4
6
3,442
7
8
1,402
1
–
1,981
1
9
Arnuity Ellipta
36
(36)
(34)
29
(40)
(40)
–
–
–
7
(13)
–
Anoro Ellipta
557
15
16
269
15
16
193
17
15
95
12
20
Avamys/Veramyst
299
(7)
(4)
–
–
–
57
(12)
(14)
242
(5)
(2)
Flixotide/Flovent
451
(17)
(16)
283
(20)
(20)
70
(5)
(5)
98
(17)
(11)
Incruse Ellipta
162
(17)
(17)
78
(25)
(24)
59
(8)
(9)
25
(11)
(7)
Relvar/Breo Ellipta
1,103
(4)
(2)
436
(12)
(12)
366
5
4
301
–
8
Seretide/Advair
1,139
(2)
1
341
11
11
256
(11)
(12)
542
(4)
3
Trelegy Ellipta
2,202
27
29
1,606
28
29
275
17
16
321
34
44
Ventolin
749
(3)
–
400
(3)
(2)
100
(14)
(16)
249
2
11
Other Respiratory
127
(11)
(5)
–
(100)
(100)
26
(13)
(17)
101
(10)
(1)
Other General Medicines
3,395
(5)
2
280
(23)
(22)
723
4
2
2,392
(5)
6
Dermatology
363
(3)
4
–
–
–
107
–
(1)
256
(5)
6
Augmentin
628
9
17
–
–
–
186
23
21
442
4
16
Avodart
345
5
7
–
–
–
109
2
(1)
236
6
10
Lamictal
435
(15)
(13)
194
(27)
(27)
111
2
1
130
(5)
4
Other
1,624
(9)
1
86
(13)
(11)
210
(5)
(7) 1,328
(9)
3
General Medicines
10,220
1
5
3,722
4
5
2,125
2
1
4,373
(2)
7
Total Commercial Operations
30,328
3
5
15,820
9
9
6,564
3
2
7,944
(6)
1
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Financial record continued
298
Three-year selected financial data
A record of financial performance is provided, analysed in accordance with current reporting practice. The information included in
the selected financial data (except for number of employees and Core results) is prepared in accordance with International
Accounting Standards in conformity with the requirements of the Companies Act 2006 and also with IFRS as issued by the
International Accounting Standards Board.
Group turnover by geographic region
2024
£m
2023
£m
2022
£m
US
16,384
15,820
14,542
Europe
6,666
6,564
6,348
International
8,326
7,944
8,434
31,376
30,328
29,324
Group turnover by product group
2024
£m
2023
£m
2022
£m
Vaccines
9,138
9,864
7,937
Specialty Medicines
11,810
10,244
11,269
General Medicines
10,428
10,220
10,118
31,376
30,328
29,324
Vaccines turnover
2024
£m
2023
£m
2022
£m
Shingles
3,364
3,446
2,958
Meningitis
1,437
1,260
1,116
RSV
590
1,238
–
Influenza
408
504
714
Established Vaccines
3,339
3,266
3,085
Pandemic Vaccines
–
150
64
9,138
9,864
7,937
Specialty Medicines turnover
2024
£m
2023
£m
2022
£m
HIV
7,089
6,444
5,749
Respiratory/Immunology and other
3,299
3,025
2,609
Oncology
1,410
731
602
Pandemic
12
44
2,309
11,810
10,244
11,269
General Medicines
2024
£m
2023
£m
2022
£m
Respiratory
7,213
6,825
6,548
Other General Medicines
3,215
3,395
3,570
10,428
10,220
10,118
Financial results – Total
2024
£m
2023
£m
2022
£m
Turnover
31,376
30,328
29,324
Profit after taxation from continuing operations
2,951
5,308
4,921
Profit after taxation from discontinued operations and other gains/(losses) from the demerger
–
–
3,049
Remeasurement of discontinued operations distributed to shareholders on demerger
–
–
7,651
Profit after taxation from discontinued operations
–
–
10,700
Profit after taxation for the year
2,951
5,308
15,621
pence
pence
pence
Basic earnings per share from continuing operations
63.2p
121.6p
110.8p
Basic earnings per share from discontinued operations
–
–
260.6p
Total basic earnings per share
63.2p
121.6p
371.4p
Diluted earnings per share from continuing operations
62.2p
119.9p
109.2p
Diluted earnings per share from discontinued operations
–
–
257.0p
Total diluted earnings per share
62.2p
119.9p
366.2p
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Financial record continued
299
Three-year selected financial data continued
Financial results – Core
2024
£m
2023
£m
2022
£m
Turnover
31,376
30,328
29,324
Continuing operating profit
9,148
8,786
8,151
Continuing profit before taxation
8,613
8,112
7,358
Continuing profit after taxation
7,151
6,855
6,220
The reconciliation between Total and Core operating profit over the last three years can be summarised as follows:
2024
£m
2023
£m
2022
£m
Total continuing operating profit
4,021
6,745
6,433
Intangible asset amortisation
1,002
719
739
Intangible asset impairment
314
398
296
Major restructuring
353
382
321
Transaction-related items
1,881
572
1,750
Significant legal, divestments and other items
1,577
(30)
(1,388)
Core continuing operating profit
9,148
8,786
8,151
The reconciliation between Total and Core earnings per share over the last three years can be summarised as follows:
pence
pence
pence
Total continuing earnings per share
63.2p
121.6p
110.8p
Intangible asset amortisation
19.5p
13.9p
14.6p
Intangible asset impairment
6.1p
7.5p
5.8p
Major restructuring
6.7p
7.4p
5.9p
Transaction-related items
31.7p
6.9p
34.1p
Significant legal, divestments and other items
32.1p
(2.2)p
(31.5)p
Core continuing earnings per share
159.3p
155.1p
139.7p
%
%
%
Return on capital employed
26.9
53.0
n/m
For 2024 and 2023 return on capital employed is calculated as total profit before taxation as a percentage of average net assets
over the year. Return on capital employed is not calculated for 2022 as it is not meaningful (n/m) as the average net assets over the
year included Consumer Healthcare which was demerged on 18 July 2022.
Balance sheet
2024
2023
2022
Non-current assets
42,466
40,361
39,377
Current assets
16,997
18,644
20,769
Total assets
59,463
59,005
60,146
Current liabilities
(21,697)
(21,068)
(22,810)
Non-current liabilities
(24,680)
(25,142)
(27,240)
Total liabilities
(46,377)
(46,210)
(50,050)
Net assets
13,086
12,795
10,096
Shareholders’ equity
13,671
13,347
10,598
Non-controlling interests
(585)
(552)
(502)
Total equity
13,086
12,795
10,096
Number of employees
2024
2023
2022
US
12,024
12,205
11,946
Europe
32,208
32,675
31,800
International
24,397
25,332
25,654
68,629
70,212
69,400
Manufacturing
23,082
23,159
23,292
Selling
25,047
26,193
26,310
Administration
7,806
7,888
7,605
Research and development
12,694
12,972
12,193
68,629
70,212
69,400
The geographic distribution of employees in the table above is based on the location of GSK’s subsidiary companies. The number of
employees is the number of permanent employed staff at the end of the financial period. It excludes those employees who are
employed and managed by GSK on a contract basis.
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Financial record continued
300
Pharmaceuticals and Vaccines product development pipeline
Key
†
In-license or other alliance relationship with third party
^
ViiV Healthcare, a global specialist HIV company with
GSK, Pfizer, Inc. and Shionogi Limited as shareholders, is
responsible for developing and delivering HIV medicines
BLA
Biological Licence Application
MAA
Marketing Authorisation Application (Europe)
NDA
New Drug Application (US)
A
Approved
S
Submitted
Phase I
Evaluation of clinical pharmacology, usually conducted in
volunteers
Phase II
Determination of dose and initial evaluation of efficacy,
conducted in a small number of patients
Phase III
Large comparative study (compound versus placebo and/or
established treatment) in patients to establish clinical benefit
and safety
MAA and NDA/BLA regulatory review milestones shown in the table below are those that have been achieved. Future filing dates
are not included in this list.
Achieved regulatory
review milestones
Compound
Mechanism of Action/Vaccine Type
Indication
Phase
MAA
NDA/BLA
Respiratory Immunology and Inflammation
Nucala
Anti-interleukin 5 (IL5) antibody
COPD
Registration
S: Nov24
depemokimab†
Long-acting anti-interleukin 5 (IL5)
antibody
Asthma
Registration S: Dec24
S: Dec24
Chronic rhinosinusitis with nasal polyps
(CRSwNP)
Registration S: Dec24
S: Dec24
Eosinophilic granulomatosis with polyangiitis
(EGPA)
Phase III
Hypereosinophilic syndrome (HES)
Phase III
camlipixant
P2X3 receptor antagonist
Refractory chronic cough
Phase III
latozinemab†
Anti-sortilin monoclonal antibody
Frontotemporal dementia (FTD) due to
heterozygous mutations in the progranulin gene
Phase III
linerixibat
Ileal bile acid transporter (IBAT)
inhibitor
Cholestatic pruritus in primary biliary cholangitis
(PBC)
Phase III
Ventolin
Beta 2 adrenergic receptor agonist
Asthma, low carbon version of metered dose
inhaler
Phase III
Benlysta(1)
Anti-B lymphocyte stimulator (BLys)
monoclonal antibody
Systemic sclerosis associated interstitial lung
disease
Phase II
Interstitial lung disease associated with
connective tissue disease
Phase III
GSK1070806
Anti-interleukin 18 (IL18) antibody
Atopic dermatitis
Phase II
GSK3915393†
Transglutaminase 2 (TG2) inhibitor
Pulmonary fibrosis
Phase II
GSK4527226 (AL101)†
Anti-sortilin monoclonal antibody
Alzheimer’s disease
Phase II
GSK4532990†
HSD17B13 RNA interference
Non-alcoholic steatohepatitis/Metabolic
dysfunction-associated steatohepatitis (NASH/
MASH)
Phase II
GSK4532990†
HSD17B13 RNA interference
Alcohol-related liver disease (ALD)
Phase II
GSK5784283†(2)
Long-acting anti-thymic stromal
lymphopoietin (TSLP) monoclonal
Asthma
Phase II
belantamab(3)
B-cell maturation antigen binder
Systemic lupus erythematosus
Phase I
GSK3862995
Anti-interleukin 33 (IL33) antibody
COPD
Phase I
GSK3888130†
Anti-interleukin 7 (IL7) antibody
Autoimmune disease
Phase I
GSK4172239†
DNMT1 inhibitor
Sickle cell disease
Phase I
GSK4347859
Interferon pathway modulator
Systemic lupus erythematosus
Phase I
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Brand names appearing in italics are trade marks owned by or licensed to the GSK group of companies.
(1) In Phase II/III study.
(2) Phase II study start expected in 2025.
(3) Phase I study start imminent.
(4) Non-registrational.
(5) In Phase I/II study
(6) GSK has an exclusive global license option to co-develop and commercialise the candidate.
Achieved regulatory
review milestones
Compound
Mechanism of Action/Vaccine Type
Indication
Phase
MAA
NDA/BLA
Respiratory Immunology and Inflammation continued
GSK4527363
B-cell modulator
Systemic lupus erythematosus
Phase I
GSK4528287
Anti IL23-IL18 bispecific antibody
Inflammatory bowel disease
Phase I
GSK4771261
Monoclonal antibody against novel
kidney target
Autosomal dominant polycystic kidney disease
Phase I
GSK5462688†
RNA-editing oligonucleotide
Alpha-1 antitrypsin deficiency
Phase I
GSK5926371†
Anti CD19-CD20-CD3 trispecific
antibody
Autoimmune disease
Phase I
Oncology
Blenrep
(belantamab
mafodotin)†
ADC targeting B-cell maturation
antigen
2L+ Multiple myeloma combination with
Pomalyst and dexamethasone
Registration S: Jun24
S: Sep24
2L+ Multiple myeloma combination with
Velcade and dexamethasone
Registration S: Jun24
S: Sep24
1L Multiple myeloma combination with Revlimid
and dexamethasone
Phase III
Multiple myeloma in combination with anti-
cancer treatments (platform study)
Phase II
1L Multiple myeloma combination with Velcade,
Revlimid and dexamethasone
Phase I
Jemperli (dostarlimab)† Anti-programmed cell death protein 1
receptor (PD-1) antibody
1L primary advanced/recurrent endometrial
cancer
Approved
A: Jan25
A: Aug 24
1L Endometrial cancer combination with
niraparib
Phase III
Peri-operative dMMR/MSI-H colon cancer
Phase III
Unresected head and neck squamous cell
carcinoma
Phase III
Non-small cell lung cancer(4)
Phase II
Neoadjuvant dMMR/MSI-H rectal cancer
Phase II
Previously untreated MMRp/MSS colon cancer
Phase II
Ojjaara/Omjjara
(momelotinib)†
JAK1, JAK2 and ACVR1 inhibitor
Myelofibrosis with anaemia
Approved
A: Jan24
A: Sep23
belrestotug†
Anti-TIGIT antibody
Non-small cell lung cancer combination with
novel immunotherapy combinations
Phase III
Squamous cell carcinoma of the head and neck
combination with novel immunotherapy
combinations
Phase II
cobolimab†
Anti-T-cell immunoglobulin and mucin
domain-3 (TIM-3) antibody
2L Non-small cell lung cancer combination with
Jemperli (dostarlimab) and docetaxel
Phase III
Zejula (niraparib)†
Poly (ADP-ribose) polymerase (PARP)
1/2 inhibitor
1L Maintenance ovarian cancer combination
with Jemperli (dostarlimab)
Phase III
1L Maintenance non-small cell lung cancer
combination with pembrolizumab
Phase III
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Pharmaceuticals and Vaccines product development pipeline continued
302
Brand names appearing in italics are trade marks owned by or licensed to the GSK group of companies.
(1) In Phase II/III study.
(2) Phase II study start expected in 2025.
(3) Phase I study start imminent.
(4) Non-registrational.
(5) In Phase I/II study
(6) GSK has an exclusive global license option to co-develop and commercialise the candidate.
Achieved regulatory
review milestones
Compound
Mechanism of Action/Vaccine Type
Indication
Phase
MAA
NDA/BLA
GSK4381562†
Anti-PVRIG antibody
Cancer
Phase II
nelistotug†
Anti-CD96 antibody
Cancer
Phase II
belantamab
B-cell maturation antigen binder
Multiple myeloma
Phase I
GSK4418959
(IDE-275)†(5)
Werner Helicase inhibitor
dMMR/MSI-H solid tumours
Phase I
GSK4524101†(5)
DNA polymerase theta inhibitor
Cancer
Phase I
GSK5733584†
ADC targeting B7-H4
Gynaecologic malignancies
Phase I
GSK5764227†
ADC targeting B7-H3
Solid tumours
Phase I
XMT-2056 (wholly
owned by Mersana
Therapeutics)†(6)
STING agonist ADC
Cancer
Phase I
HIV^
cabotegravir
HIV integrase inhibitor
HIV infection
Phase II
VH3810109†
HIV broadly neutralizing antibody
HIV infection
Phase II
VH3739937
HIV maturation inhibitor
HIV infection
Phase II
VH4011499
HIV capsid protein inhibitor
HIV infection
Phase II
VH4524184†
HIV integrase inhibitor
HIV infection
Phase II
VH4527079
HIV entry inhibitor
HIV infection
Phase I
Infectious Diseases
Arexvy
(RSV vaccine)†
Recombinant protein, adjuvanted
vaccine
Respiratory syncytial virus prophylaxis in older
adult population 50-59 years of age
Approved
A: Jul24
A: Aug24
Respiratory syncytial virus prophylaxis in adult
population 18-49 years of age at increased risk
Phase III
Penmenvy
(Men ABCWY 1st Gen)
Recombinant protein, outer
membrane vesicle, glycoconjugate
vaccine
Prevention of invasive disease caused by N.
meningitis serogroups A, B, C, W and Y in
adolescents 10-25 years of age
Approved
A: Feb25
gepotidacin†
Triazaacenaphthylene bacterial type II
topoisomerase inhibitor
Uncomplicated urinary tract infection (uUTI)
Registration
S: Jul24
Urogenital gonorrhoea (GC)
Phase III
bepirovirsen†
HBV antisense oligonucleotide
Chronic hepatitis B virus infection
Phase III
Bexsero vaccine
Recombinant protein and outer
membrane vesicle vaccine
Prevention of invasive disease caused by N.
meningitis serogroup B in individuals 2 months of
age and older (US)
Phase III
ibrexafungerp†
Antifungal glucan synthase inhibitor
Invasive candidiasis
Phase III
tebipenem pivoxil†
Antibacterial carbapenem
Complicated urinary tract infection (cUTI)
Phase III
Varicella new strain†
Live, attenuated vaccine
Active immunization for the prevention of
varicella in individuals 12 months of age and
older
Phase III
alpibectir†
Ethionamide booster
Tuberculosis
Phase II
ganfeborole†
Leucyl t-RNA synthetase inhibitor
Tuberculosis
Phase II
Malaria RTS,S
(fractional dose)†
Recombinant protein, adjuvanted
vaccine
Malaria prophylaxis (Plasmodium falciparum)
Phase II
Shigella†
Generalized Modules for Membrane
Antigens (GMMA) vaccine
Shigella diarrhea prophylaxis
Phase II
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Pharmaceuticals and Vaccines product development pipeline continued
303
Brand names appearing in italics are trade marks owned by or licensed to the GSK group of companies.
(1) In Phase II/III study.
(2) Phase II study start expected in 2025.
(3) Phase I study start imminent.
(4) Non-registrational.
(5) In Phase I/II study
(6) GSK has an exclusive global license option to co-develop and commercialise the candidate.
Achieved regulatory
review milestones
Compound
Mechanism of Action/Vaccine Type
Indication
Phase
MAA
NDA/BLA
Infectious Diseases continued
CMV(5)
Adjuvanted recombinant subunit
vaccine
Cytomegalovirus (CMV) infection prophylaxis in
females 16-49 years of age
Phase II
Men ABCWY (2nd
Gen)(5)
Recombinant protein, outer
membrane vesicle, conjugated
vaccine
Prevention of invasive disease caused by N.
meningitis serogroup A,B,C,W and Y in
adolescents and children 6 weeks of age and
older
Phase II
iNTS (Typhimurium +
Enteritidis)†
Bivalent Generalized Modules for
Membrane Antigens (GMMA) vaccine
Invasive non-typhoidal salmonella
Phase II
iNTS (S. typhimurium +
S. enteritidis + S.Typhi)† Bivalent Generalized Modules for
Membrane Antigens (GMMA) vaccine
and typhoid conjugate vaccine (TCV)
Invasive non-typhoidal salmonella and typhoid
fever
Phase II
mRNA Seasonal Flu†
mRNA vaccine
Active immunization for the prevention of
influenza disease in adults 18 years and older
Phase II
mRNA COVID-19†
mRNA vaccine
Active immunization to prevent COVID-19
disease caused by SARS-CoV-2 in individuals 12
years and older
Phase II
Measles, mumps,
rubella & varicella new
strain vaccine
Live, attenuated vaccine
Active immunization for the prevention of
measles, mumps, rubella, and varicella in
children 12 months through 12 years of age
Phase II
Pneumococcal 24-
valent - paed†
MAPS Pneumococcal 24-valent paed
Prevention of invasive pneumococcal disease,
pneumonia, and acute otitis media caused by
the Streptococcus pneumoniae 24 serotypes
included in the vaccine in children aged 6 weeks
- 17 years
Phase II
mRNA Flu H5N1 pre-
pandemic†(5)
mRNA vaccine
Pandemic preparedness registration for active
immunization of adults 18+ YoA for the
prevention of disease caused by influenza A virus
H5N1 subtype contained in the vaccine
Phase II
daplusiran +
tomligisiran†
Hepatitis B virus-targeted siRNA
sequential combination
Chronic hepatitis B virus infection
Phase II
sanfetrinem cilexetil†
Serine beta lactamase inhibitor
Tuberculosis
Phase II
Salmonella (typhoid +
paratyphoid A)†
Bivalent conjugate vaccine
Salmonella (typhoid + paratyphoid A) enteric
fever
Phase I
GSK3772701†
P. falciparum whole cell inhibitor
Malaria
Phase I
GSK3882347†
FimH antagonist
Uncomplicated urinary tract infection (uUTI)
Phase I
GSK3923868
PI4K beta inhibitor
Rhinovirus disease
Phase I
GSK3965193(5)
PAPD5/PAPD7 inhibitor
Chronic hepatitis B virus infection
Phase I
GSK4024484†
P. falciparum whole cell inhibitor
Malaria
Phase I
GSK5251738†
TLR8 agonist
Chronic hepatitis B virus infection
Phase I
GSK5102188(5)
Adjuvanted recombinant subunit
vaccine
Active immunization for the prevention of urinary
tract infection (UTI) caused by
uropathogenic Escherichia coli (UPEC) in 18+
adults at increased risk.
Phase I
mRNA Seasonal Flu/
COVID-19†(5)
mRNA vaccine
Active immunization for the prevention of
influenza disease and COVID-19 disease caused
by SARS-CoV-2 in adults 18 years and older
Phase I
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Pharmaceuticals and Vaccines product development pipeline continued
304
Brand names appearing in italics are trade marks owned by or licensed to the GSK group of companies.
(1) In Phase II/III study.
(2) Phase II study start expected in 2025.
(3) Phase I study start imminent.
(4) Non-registrational.
(5) In Phase I/II study
(6) GSK has an exclusive global license option to co-develop and commercialise the candidate.
Pharmaceutical products and intellectual property
Patent expiry dates1
Products
Compounds
Indication(s)
US
EU
Specialty Medicines and Intellectual Property
HIV
Apretude
Cabotegravir
HIV prevention
2031*
2026-2031
2031
2031
Cabenuva/Vocabria
+ Rekambys
Cabotegravir, rilpivirine
HIV/AIDS
2031*
2026-2038
2031
2031
Rukobia
Fostemsavir
HIV/AIDS
2029
2025-2027
2025
2034
Dovato
Dolutegravir, lamivudine
HIV/AIDS
2028
2030-2031
2029
2029-2034*
Juluca
Dolutegravir, rilpivirine
HIV/AIDS
2028
2025-2038
2029
2025-2029
Triumeq
Dolutegravir, lamivudine and abacavir
HIV/AIDS
2028
2030
2029
2029
Tivicay
Dolutegravir
HIV/AIDS
2028
2030
2029
2029
Respiratory/Immunology
Benlysta, Benlysta
(SC and IV)
belimumab
systemic lupus erythematosus, lupus
nephritis
2025
2029- 2035
2026
2035
Nucala
mepolizumab
Asthma, CRSwNP, EGPA, HES
2029-2036
2028- 2031
Oncology
Blenrep
belantamab mafodotin
relapsed/refractory multiple myeloma
2032
2038
2032
Jemperli
dostarlimab
dMMR/MSI-H recurrent/ advanced
endometrial cancer, dMMR solid tumours
2035*
2034-2038
2036
2038
Ojjaara/Omjjara
momelotinib
myelofibrosis in patients with anemia
2030
2035-2040
2028
2039*
Zejula
niraparib
ovarian cancer
2031
2027-2039
2032
2029-2037
Pandemic
Xevudy
sotrovimab
Early treatment of COVID-19
2041
2041
General Medicines and Intellectual Property
Respiratory
Anoro Ellipta
umeclidinium bromide/vilanterol
trifenatate
COPD
2027
2025-2031
2029
2025-2030
Flixotide/Flovent
fluticasone propionate
Asthma
2026
expired
Relvar/Breo Ellipta
fluticasone furoate/vilanterol trifenatate Asthma, COPD
2025
2027-2031
2028
2025-2029
Seretide/Advair
salmeterol xinafoate/fluticasone
propionate
Asthma, COPD
2026
expired
Trelegy Ellipta
fluticasone furoate/vilanterol
trifenatate/umeclidinium bromide
COPD, asthma
2027
2025-2031
2029
2025-2032
Ventolin
Salbutamol sulphate
Asthma, COPD
2026
expired
Other General Medicines
Augmentin
Amoxicillin trihydrate/potassium
clavulanate
Common bacterial infections
NA
expired
Lamictal
lamotrigine
Epilepsy, bipolar disorder
expired
expired
(1) Patent expiry dates in normal text relate to the latest expiring new molecular entity patents in the relevant territory. Patent expiry dates in italics relate to
other patents. Where appropriate, unless otherwise indicated all patent expiry dates include granted Patent Term Extensions in the US, granted
Supplementary Protection Certificates in EU, and Paediatric Exclusivity periods. Additional exclusivities (for example regulatory data protection) may exist
but are not listed in the table. (* = date includes pending PTE in US or SPC in EU)
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305
Vaccines and Intellectual Property
Patent expiry dates1
Products
Compounds
Indication(s)
US
EU
Arexvy
Respiratory syncytial virus vaccine
Respiratory syncytial virus vaccination
2030
2032
Bexsero
meningococcal group-B vaccine
Meningitis group B prophylaxis
2027
2028
Boostrix
diphtheria, tetanus, acellular
pertussis
diphtheria, tetanus, acellular
Pertussis booster vaccination
expired
expired
Infanrix/Pediarix
diphtheria, tetanus, pertussis,
polio, hepatitis B, Haemophilus
influenzae type B (EU)
Prophylaxis against diphtheria, tetanus,
pertussis, polio, hepatitis B, Haemophilus
influenzae type B (EU)
expired
expired
Cervarix
HPV 16 & 18 virus like
particles (VLPs), AS04
adjuvant (MPL + aluminium
hydroxide)
human papilloma virus
type 16 and 18
Not marketed
in US
expired
Fluarix
split inactivated influenza
antigens (2 virus subtypes A
and 2 subtype B)
seasonal influenza prophylaxis
expired
expired
FluLaval
split inactivated influenza
antigens (2 virus subtypes A
and 2 subtype B)
seasonal influenza prophylaxis
expired
expired
Menveo
meningococcal group A, C, W-135 and Y
conjugate vaccine
Meningitis group A, C, W-135
and Y prophylaxis
2025
2025
Priorix, Priorix Tetra,
Varilrix
live attenuated MMR, Varicella and
MMRV vaccines
measles, mumps, rubella and
chickenpox prophylaxis
expired
expired
Rotarix
Human rotavirus RIX4414 strain
Rotavirus prophylaxis
expired
expired
Synflorix
conjugated pneumococcal
polysaccharide
Prophylaxis against invasive
disease, pneumonia, acute otitis media
Not marketed
in US
2026
Shingrix
zoster vaccine
recombinant, adjuvanted
herpes zoster
(shingles)
2029
2031
(1) Patent expiry dates in normal text relate to the latest expiring new molecular entity patents in the relevant territory. Patent expiry dates in italics relate to
other patents. Where appropriate, unless otherwise indicated all patent expiry dates include granted Patent Term Extensions in the US, granted
Supplementary Protection Certificates in EU, and Paediatric Exclusivity periods. Additional exclusivities (for example regulatory data protection) may exist
but are not listed in the table. (* = date includes pending PTE in US or SPC in EU)
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Pharmaceutical products and intellectual property continued
306
GSK aims to positively impact the health of 2.5 billion people by
the end of the decade – but we know that operating in the
biopharmaceutical sector carries various inherent risks and
uncertainties that may affect our business. We outline below the
principal risks and uncertainties relevant to our 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.
We disclose these principal risks in line with UK regulations,
which require a description of principal risks and uncertainties
and an explanation of how they are being managed or
mitigated. For each principal risk, we provide a summary of its
potential impact, and of how we manage it across our
businesses. The risks are not listed in order of significance and
are consistent with the principal risks detailed on pages 64 to
66.
We must comply with a broad range of laws and regulations
which apply to the research and development (R&D),
manufacturing, testing, approval, distribution, sales, and
marketing of pharmaceutical and vaccine products. These
affect the cost of product development, the time required to
reach the market and the likelihood of doing so successfully on
an uninterrupted basis.
As rules and regulations change, government interpretation
and policy evolves, and our business activities develop, the
nature of a particular risk may also alter. Changes to regulatory
regimes may be substantial. Any alteration in, and failure to
comply with, applicable laws and regulations could materially
and adversely affect our financial results.
Similarly, our global business exposes us to litigation and
government investigations, including product liability litigation,
patent and antitrust litigation and sales and marketing
litigation.
Litigation and government investigations, and the related
provisions we may make for unfavourable outcomes and
increases in related costs, such as insurance premiums, could
also materially and adversely affect our financial results.
Detail on the status and various uncertainties in our significant
unresolved disputes and potential litigation is set out in Note 47
‘Legal proceedings’ on page 287. A description of our risk
management framework and how we identify our principal risks
can be found on pages 307 to317 and incorporated in this
section. Other business risks related to Responsible Business
which are not at the level of principal risks, including
environmental sustainability and climate change, are managed
through our six focus areas, as described in our Responsible
Business Performance Report. There is additional information
on climate-related risk management in our climate-related
financial disclosure on pages 67 to 75.
Patient safety
Risk definition
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-to-risk profile of a medicine
or vaccine in a timely manner.
Risk impact
GSK will not tolerate an unfavourable benefit-to-risk profile for
patients who use our products. The most important
consequence of ineffective pharmacovigilance is the potential
for harm to patients, so we uphold stringent procedures for
managing human safety information, conducting timely safety
signal detection and ensuring appropriate measures are in
place to manage risks to patients. We are dedicated to
adhering fully to pharmacovigilance and other relevant
regulations globally. Failure to comply could lead to inspection
findings, regulatory scrutiny, civil or criminal sanctions and
either temporary or permanent revocation of product marketing
authorisation. We regularly review and respond to all patient
safety risks to limit the potential for reputational damage, loss
of trust from patients and healthcare providers, product-related
litigation, and reduced shareholder confidence.
Context.
We are accountable for protecting patients and participants in
clinical trials who receive our medicines and vaccines, whether
they are in development or marketed, from harm. An unforeseen
event that unfavourably shifts the benefit-to-risk profile is not a
probable occurrence, but such an event cannot be fully
discounted, and more generally, we cannot predict all
circumstances impacting safety and efficacy that could
potentially result in harm to patients. We operate in a complex
and restrictive pharmacovigilance regulatory environment,
which can be further complicated by differing requirements
among regulatory agencies. Such regulatory complexity is
further illustrated by instances of regulatory agencies taking
decisions on the safety of medicines and vaccines based on
externally available data that may not be accessible to the
marketing authorisation holder. This could hinder our ability to
make prompt decisions and take appropriate action in relation
to the safety of our products, or to confirm or refute conclusions
asserted by external parties. This issue could potentially extend
to next-generation digital health data held by tech companies
or other data custodians, which may be inaccessible to our
industry and/or regulatory agencies.
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307
Numerous information sources, including publications not
based on robust scientific research, media coverage, social
media, Artificial Intelligence (AI) tools and government health
authorities, could potentially lead to a surge in reports related
to products and/or adverse events. Such information and
reports, as well as poor management of patient safety risks
generally could lead to harm to our reputation, reduced trust
from patients and healthcare providers, and a decline in
shareholder confidence, as well as increased regulatory
scrutiny. It could also increase the number of product-related
legal cases, including class-action lawsuits which GSK and our
industry frequently encounter..
Mitigating actions
Our Chief Medical Officer (CMO) is accountable for the Patient
Safety enterprise risk, benefit-to-risk decision making and
human safety matters, in collaboration with the Head of Global
Safety. Patient safety oversight and medical governance are
conducted at the CMO Council, which reports to our Risk
Oversight and Compliance Council. Updates are also provided
to our Audit and Risk Committee on the effectiveness of our
patient safety risk management and internal controls. The
Corporate Responsibility Committee has oversight of enterprise
risks determined by the Board, and the Science Committee
undertakes more in-depth risk oversight of R&D related
activities. The Global Safety Board, led by our CMO and Head
of Global Safety ensures that we address human safety
proactively throughout a product’s lifecycle, it reviews product
safety at established milestones and in every situation where
there could be a potential impact on a benefit-to-risk profile.
Our cross-functional Safety Review Teams continually evaluate
new safety and efficacy information for every GSK product
throughout its life cycle. Our global policy on management of
human safety information mandates that all employees
immediately report issues relating to the safety of our products.
Our framework for third-party risk management helps us
identify and train third parties who may encounter human
safety information.
In 2024, we took additional steps to strengthen how we
safeguard patients and enhance the execution of our
pharmacovigilance operational activities. We have defined a
strategy for end-to-end risk minimisations measures aiming to
ultimately minimise patient risk, using one centralised system to
track the implementation and effectiveness of our risk
management plans. Throughout 2024 we continued building
capability across all GSK staff who hold accountability for our
Pharmacovigilance Quality Management System. We also
implemented an end-to-end validated system for developing,
implementing, maintaining, monitoring and terminating
pharmacovigilance agreements and safety clauses between
GSK and third parties.
We have enhanced data governance for patient safety,
including through modifications to the single-vendor operating
model to adhere to international data transfer regulations, and
revisions to our 'Confidential and Sensitive' risk statement for
unpublished clinical safety data.
In 2024, we increased focus on embedding capabilities in our
local pharmacovigilance operational model, continuing to
support our ambition to positively impact people globally,
evolving with creation of the Chief Patient Officer Organisation.
To address the risk arising from increases in corporate business
development acquisitions, both our CMO and Head of Global
Safety oversee any market authorisation or global safety
database prerequisites before major deal approvals.
Product quality
Risk definition
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.
Risk impact
A failure to ensure product quality could have far-reaching
implications for patient safety, cause product launch delays,
drug shortages or product recalls, and have regulatory, legal,
and financial consequences.These could materially and
adversely affect GSK's reputation and financial results.
Context
The external environment for product quality remains
challenging. The impact of continuing nationalism and
geopolitical tensions, and of new and emerging regulations with
a gradual divergence in regulatory expectations by some health
authorities, as well as a strong focus from regulators on
inspections and prevention of drug shortages present a broad
set of challenges to our sites and functions as they support
product quality and our licence to operate. The rapid
advancement and use of digital technologies, particularly the
use of AI and Machine Learning (ML), within an evolving
regulatory framework, introduce both the opportunity to
accelerate ways of working and the potential to impact product
quality if not adequately controlled. We need to align to new
and updated regulatory guidance as it emerges. The threat of
cyber-attacks and data breaches across the industry could risk
the integrity of product quality data and its audit traill.
Attracting and retaining key specialised skills to deliver quality
innovation in manufacturing and development is potentially
challenging in a highly competitive environment and remains a
focus for our innovative new platforms,.
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Mitigating actions
Our Global Head of Quality is the Enterprise Risk Owner (ERO)
and is accountable for the Product Quality enterprise risk. We
deploy an extensive global network of quality and compliance
professionals from site-level to senior management within each
business to provide oversight and assist with the delivery of
quality performance, operational compliance and
improvement. This is overseen through a hierarchy of quality
councils. We use key risk and performance indicators to support
our activities and decision making and provide leadership
teams and quality councils with an integrated assessment of
product quality performance. We expect contract
manufacturers that make our products to comply with GSK
standards and regularly conduct audits. Where required we
work with our suppliers to support risk mitigation.
We are expanding our Quality Management System, audit and
Quality Assurance oversight programme across R&D to ensure
that we mitigate potential product quality risks throughout our
processes. In 2024, we completed the deployment of plans to
align to our commitments for Annex 1 EU/ PIC/S and WHO
GMP for Medicinal Products Manufacture of Sterile Medicinal
Products regulatory guidance. We are increasingly applying
advanced digital technologies and insights to enhance and
modernise the development, manufacture and testing of our
products and to protect our data.
We continue to provide expert support to the specialised third
parties we use for contract manufacturing and supply of
materials for novel products and platforms while their quality
management systems and experience in developing
commercial products continues to mature. Retaining expertise
in biopharma and digital progression has the potential to be a
challenge in a highly competitive environment.
We are actively contributing to industry advocacy and
discussions of the regulatory frameworks for these advancing
technologies to support compliance, patient safety benefit and
access. We continue to advance our data integrity and
governance processes and delivering an ongoing programme
to drive continuous improvement of quality management
maturity, mindset, and behaviours. We also work with other
pharma companies within industry trade associations to shape
and influence future pharmaceutical regulations and monitor
emerging risk factors including regulatory intelligence and
guidance on Nitrosamines.
Financial controls and reporting
Risk definition
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.
Risk impact
Non-compliance with existing or new financial or ESG reporting
and disclosure requirements, or changes to the recognition of
income and expenses, could expose GSK to litigation and
regulatory action and could materially and adversely affect our
financial results. Failure to comply with changes in the
substance or application of the laws governing transfer pricing,
dividends, tax credits and intellectual property could also
materially and adversely affect our financial results. Failure to
comply with applicable laws and regulations could result in GSK
being investigated by relevant government agencies and
authorities and/or in legal proceedings against us. Government
investigations and litigation, can be unpredictable and
regardless of their outcome, may be costly, require significant
management attention, and damage our reputation.
Inconsistent application of treasury policies, transactional or
settlement errors, or counterparty defaults could lead to
significant losses.
Context
The laws of various jurisdictions require us to publicly disclose
our financial results and any events that could materially affect
the Group’s financial results. Regulators routinely review the
financial statements of listed companies for compliance with
new, revised, or existing accounting and regulatory
requirements. We believe that we comply with the appropriate
regulatory requirements concerning our financial statements
and the disclosure of material information, including any
transactions relating to business restructuring such as
acquisitions and divestitures. However, should we be subject to
an investigation into potential non-compliance with accounting
and disclosure requirements, this could lead to restatements of
previously reported results and significant penalties. Our
Treasury group deals daily in high value transactions, mostly
foreign exchange and cash management transactions. These
transactions involve market volatility and counterparty risk. The
Group’s effective tax rate reflects the locations of our activities
and the value they generate, which determine the jurisdictions
in which profits arise and the applicable tax rates.
These may be higher or lower than the UK statutory rate and
may reflect regimes that encourage innovation and investment
in R&D by providing tax incentives which, if changed, could
affect GSK’s effective tax rate. In addition, the worldwide nature
of our operations means that our cross-border supply routes,
necessary to ensure supplies of medicines and vaccines, can
result in conflicting claims from tax authorities as to the profits
to be taxed in individual countries.
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This can lead to double taxation, with the same profits taxed in
more than one country. The complexity of tax regulations also
means that we may occasionally disagree with tax authorities
on the technical interpretation of a particular area of tax law.
The tax charge included in our financial statements is our best
estimate of tax liability pending any audits by tax authorities.
We expect there to be a continued focus on tax reform, driven
by international initiatives set by the OECD, the European
Commission and the UN, as well as various domestic initiatives.
These may result in significant changes to established tax
principles and an increase in tax authority disputes. Regardless
of their merit or outcomes, these may be costly, divert
management attention and adversely impact our reputation
and relationship with key stakeholders. Laws, regulations, orders
and other measures restrict dealings with certain countries,
governments, government officials, entities and individuals, and
the use of financial institutions and movement of funds.
Mitigating actions
We keep up to date with the latest developments in financial
reporting requirements by reviewing updates from regulators,
working with our external auditor and legal advisors and
performing and responding to emerging risks. Financial results
are reviewed and approved by regional management, before
being reviewed by GSK’s Group Financial Controller and Chief
Financial Officer (CFO). This allows our Group Financial
Controller and CFO to assess the evolution of the business over
time, and to evaluate its performance to plan. Significant
judgements are reviewed and confirmed by senior
management. We integrate technical or organisational
transformation, newly acquired activities and external risks into
our risk assessments and apply appropriate controls and
reviews. We maintain a control environment designed to
identify material errors in financial reporting and disclosure. We
have a standardised global financial reporting operating
model. Management’s testing process is designed to probe the
design and operating effectiveness of key processes and
controls within all five aspects of the COSO framework.
The design and operating effectiveness of key financial
reporting controls and ESG controls are regularly reviewed by
management and tested by external third parties. The few
locations which are not on the standard model apply a
minimum standard set of controls which are reviewed by
management and monitored independently. This gives us
assurance that controls over key financial reporting and
disclosure processes are operating effectively. Our Global
Finance Risk Management and Controls (FRMC) group
provides extra support during significant transformations, such
as system deployment or management/ structural
reorganisations. We add operational resources and adapt
programme timelines to ensure processes and controls are
maintained during significant changes.
The Disclosure Committee, reporting to the Board, reviews
GSK’s quarterly results and annual report. Throughout the year,
in consultation with its legal advisors, the Disclosure Committee
also determines whether it is necessary to disclose publicly
information about the Group through stock exchange
announcements. The Treasury Management Group meets
regularly to ensure that liquidity, interest rate, counterparty,
foreign currency transaction and foreign currency translation
risks are all managed in line with the prudent approach
detailed in the risk strategies and policies adopted by our
Board. Counterparty exposure is subject to defined limits
approved by the Board for both credit rating and individual
counterparties. The Middle Office within Treasury monitors the
management of counterparty risk in line with agreed policy with
oversight from a corporate compliance officer, operating
independently of Treasury. Further details on mitigation of
Treasury risks can be found on pages 267 to 270.
We manage tax risk through robust internal policies, processes,
training, and compliance programmes. We seek to maintain
open and constructive relationships with tax authorities
worldwide. To mitigate the risk of double taxation throughout
our supply chain, profits are recognised in territories by
reference to the activities performed in that territory and the
value they generate in accordance with the OECD’s guidelines
on the arm’s length principle and our position is supported by
economic analysis and reports. We monitor government debate
on tax policy in our key jurisdictions, so that we can understand
any potential future changes in tax law. Where relevant, we
provide pragmatic and constructive business input to tax policy
makers, either directly or through industry trade bodies. This
includes advocating reform to support economic growth and
job creation, and the needs of our patients and other key
stakeholders.
Our tax affairs are managed on a global basis by a team of tax
professionals, led by the Global Head of Tax, who work closely
with the business on a day-to-day basis. The Global Tax team is
suitably qualified for the roles they perform, and we support
their training needs so they can provide up to date technical
advice in line with their responsibilities. We submit tax returns
according to statutory time limits and engage proactively with
tax authorities to ensure our tax affairs are current, entering into
co-operative compliance programs and advance pricing
agreements where appropriate. These arrangements provide
long-term certainty for both tax authorities and GSK over the
tax treatment of our business, based on full disclosure of all
relevant facts. We seek to resolve any differences of
interpretation in tax legislation with tax authorities in a
cooperative manner. In exceptional cases, we may have to
resolve disputes through formal proceedings to establish clarity
for all stakeholders in an open and transparent manner.
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Legal matters
Risk definition
The risk that GSK or our third parties potentially fail to comply
with certain legal requirements for the development and
management of our pipeline, 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 comply with legal
standards for these particular areas could lead to increasing
scrutiny and enforcement from government agencies.
Risk impact
Failure to mitigate this risk could subject GSK and associated
persons to governmental investigation, regulatory action, and
civil and criminal liability. It may hinder GSK’s ability to supply its
products under certain government contracts. Moreover, failure
to manage legal risk could have substantial implications for
GSK’s reputation and the reputation of its senior leadership. It
could undermine investor confidence in our governance, risk
management and future performance, and negatively affect
share performance. It could result in substantial financial
penalties and the imposition of additional reporting obligations.
Context
The general landscape for anti-bribery and corruption,
competitive practices, and sanctions and export controls
continues to be challenging with increased scrutiny from
government agencies. Authorities remain committed to robust
foreign bribery investigations and prosecutions, with a
particular focus on the conduct of multi-national companies
regardless of their location. We have observed evolving trends
in relation to sanctions, where penalties for violations which
were previously imposed mainly on large international banks
are now also imposed on companies across various industries.
The financial penalties in these cases are often substantial. The
applicable laws are often uncertain, unstable or evolving and
can conflict across different markets making it challenging to
determine exact requirements of local laws in every market.
Developments in the external environment include an increase
in transparency and collaboration among enforcement
authorities with the aim of reducing bribery and corruption
globally.
Mitigation actions
Our Group General Counsel oversees and is accountable for the
Legal Matters principal risk. We have enterprise-wide anti-
bribery, competition law and sanctions programmes designed
to ensure compliance with applicable laws and regulations.
They build on our business standards and culture to form a
comprehensive and practical approach to compliance that is
flexible to the evolving nature of our business.
The programmes include global anti-bribery, competition law
and sanctions policies, written standards and other controls,
which address the business activities that give rise to these risks.
The programmes also mandate enhanced controls for specific
high-risk activities such as interactions with government officials
and during business development transactions. Controls in our
Anti-bribery and Corruption (ABAC) policy establish due
diligence requirements for the engagement of third parties. Our
Sanctions policy confirms the requirement to conduct sanctions
screening on new and existing third parties. We have dedicated
teams responsible for the implementation and evolution of the
ABAC and Sanctions programmes. These teams work with other
groups across the organisation to address and improve controls
and monitoring requirements. Audit & Assurance and
independent business monitoring teams complement the
central teams’ work and provide added assurance.
We use issues found during oversight and assurance exercises
and from internal investigations to identify areas for specific
intervention in the markets and to drive continuous
improvement across the organisation.
We regularly provide anti-bribery, competition law and
sanctions training to employees and relevant third parties in
accordance with their roles and responsibilities and the risks
they face.
Formal and informal ‘Speak Up’ channels are available to
report misconduct or non-compliance. The central
investigations team reviews and triages allegations of non-
compliance and allocates allegations for investigation as
appropriate.
These processes enable us to manage the risk from both top
down and bottom up. For example, our ABAC and Sanctions
programmes receive top-level commitment from our Board and
leadership and are supported by a data analytics programme
to create and embed local key risk indicators to enable
targeted intervention and risk management activities.
We continue to enhance our controls around third-party
engagements to ensure that they are sufficient to meet evolving
and emerging risks.
We plan to continue with pre- and post-transaction due
diligence, and to build our capabilities around the onboarding,
continual monitoring and management of third parties.
We continue to assess and understand our money laundering
risk exposure and mitigate any existing risk. Any new risk
exposure arising out of the failure to prevent fraud offence will
be assessed and managed within the existing ABAC
programme framework.
In light of the complexity and geographic breadth of the risk, we
constantly evolve our oversight of activities and data, reinforce
to our workforce GSK’s clear expectations regarding acceptable
behaviours, and maintain regular communications between the
centre and local markets.
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Commercial practices
Risk definition
The risk that GSK or our third parties potentially engage in
commercial activities that fail to comply with laws, regulations,
industry codes, and internal controls and requirements.
Risk impact
It could materially and adversely affect our ability to deliver our
strategy and long-term priorities if we fail to engage in activities
that are consistent with: the letter and spirit of the law, industry
regulations, or the Group’s requirements relating to sales and
promotion of medicines and vaccines; appropriate interactions
with healthcare professionals (HCPs), organisations and
patients; legitimate and transparent transfers of value; and
pricing and competition regulations in commercial practices,
including trade channel activities and business tendering.
Additionally, such a failure may result in incomplete awareness
of the risk/benefit profile of our products and possibly
suboptimal treatment of patients and consumers; governmental
investigation, regulatory action and legal proceedings brought
against the Group by governmental and private plaintiffs which
could result in government sanctions; and criminal and/or
financial penalties. Any practices that are found to be
misaligned with our culture could also result in reputational
harm and dilute the trust established with external stakeholders.
Context
We operate in a highly regulated and extremely competitive
biopharma industry, amongst peers who make significant
product innovations and technical advances and intensify price
competition. The external environment is challenging.
Governments have increased their focus on initiatives to drive
down medicine and vaccines costs for consumers. There is an
expectation there will be continued focus on regulating drug
prices . Additional external factors include access limitations to
our customers, major geopolitical events in key markets,
macroeconomic inflationary dynamics, and pricing pressure
across markets. For example, in the US, a number of legislative
proposals have been introduced and/or signed into law that
attempt to lower drug prices, including the Inflation Reduction
Act. To achieve our strategic objectives, we must continue to
develop commercially viable new products, sustain reliable
supply, and deliver additional uses for existing products that
address the needs of patients, consumers, HCPs and payers.
Financially, new products/indications carry with them an
uncertainty of future success. Product development is costly,
lengthy, and uncertain, and carries the potential for failure at
any stage. Even after successful product development, we face
challenges in how we launch, and competitors’ products or
pricing strategies could render our assets less competitive. We
support product innovation through our continued focus on
both in-person and virtual engagement, with a constant focus
on our patient. Once we have an approved medicine or
vaccine, it is our obligation to provide important information to
the healthcare community in various ways, always in a
responsible, legal, and ethical manner.
Appropriate product promotion ensures HCPs have access to
the information they need, that patients and consumers have
the facts about the medicines and vaccines they require, and
that products are prescribed, recommended, or used in a lawful
and compliant manner that provides healthcare benefit.
Mitigating actions
We are committed to the ethical and responsible
commercialisation of our products in support of our purpose to
unite science, technology and talent to get ahead of disease
together. In 2024, we incrementally evolved policies and
standards, including our Code of Practice, to ensure that
commercial activities that we undertake or are conducted on
our behalf are executed within our established governance
framework. We train employees on relevant information with a
focus on interactive learning and elements of behavioural
science. All our commercial activities worldwide must conform
to high ethical, regulatory, and industry standards. Where the
standards of an acquired company or joint venture partner
differ from our global standards, we remediate legacy policies
and implement revisions, so they align. Our businesses continue
to use our internal control framework to support the assessment
and management of risks.
Business unit risk management and compliance boards, which
manage risks across global and in-country business activities,
oversee commercial activities and their monitoring
programmes. All promotional materials and activities must be
reviewed and approved according to our policies and
standards and conducted in accordance with local laws and
regulations; these external and internal requirements seek to
ensure that such materials and activities fairly represent the
Group’s products or services. Where necessary, in the event of
misconduct, we have disciplined employees, up to and
including termination of employment, and applied/enforced
GSK's senior leader recoupment policy. We continuously review
and evolve our sales force incentive programme to account for
changes in the competitive environment, and to ensure our
sales representatives are compensated appropriately.
We continue to engage in many HCP and healthcare
organisations interactions to both promote our products and
provide disease awareness and other non-promotional
activities. When we established the Chief Patient Officer (CPO)
organisation in the first quarter of 2024 to drive greater patient
and healthcare provider insights, we rolled out an extensive
communication and training programme to support a
continued focus on maintaining the distinction between
medical and commercial operations in these interactions. We
have also expanded our support and oversight of disease
awareness activities and meeting sponsorship, implementing
enhanced controls and updated policy documents.
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Scientific and patient engagement
Risk definition
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 healthcare and patient support, grants and donations
in a legitimate and transparent manner compliant with laws,
regulations, industry codes and internal controls and
requirements.
Risk impact
Without controls in place, GSK is exposed to the risk of real,
perceived, or disguised promotion, including off-label and prior
authorisation promotion. This could lead to reputational
damage, competitor complaints, regulatory inspections with
subsequent corrective actions, or civil litigation.
We must fully and appropriately engage externally to bring
patient benefit, and to advance science and innovation, while
delivering our strategy. Otherwise, we risk reducing the trust of
the public, patients, healthcare professionals, payers, regulators,
and governments.
Context
Scientific and patient engagements are diverse non-
promotional activities directed at healthcare professionals,
patients, payers, and other external stakeholders. Such
engagements aim to improve patient care through the
exchange or provision of knowledge on the use of our products
and related diseases.
We expect our activities to be scientifically sound and accurate,
conducted ethically and transparently, and compliant with
applicable codes, laws, and regulations. There are many
industry and local codes and laws and other regulations that
apply, including in the areas of privacy, data integrity and
pharmacovigilance.
Mitigating actions
Our CMO oversees all non-promotional scientific and patient
engagement (SPE) as ERO. The enterprise CMO council
provides medical governance oversight and direction for SPE
topics. The council reviews risks, monitoring, and audit data. At
the level of the Board, oversight sits with the Audit & Risk
Committee. Our Promotional and Non-Promotional External
Interactions Policy is the key internal policy for non-promotional
engagement activities. These activities include scientific
interactions, medical education, advice seeking, gathering
insights on unmet needs of patients, scientific communication of
our research. They also include disease awareness, grants and
donations, healthcare support services and patient support
programmes.
Global process owners are accountable for the end-to-end
processes: seeking advice, content approval, medical
information, medical education and grants & donations. This
accountability includes comprehensive oversight of the process,
the creation of an appropriate internal control framework and
continuous evaluation of the process for improvement where
necessary.
All SPE materials and activities must be reviewed and approved
according to our policies and standards to ensure clarity of
non-promotional intent and that they are accurate, fair,
objective and balanced. We have developed a Capability
Framework for Content Approval, which is being implemented
across the regions.
We have refreshed our policies on Promotional and Non-
promotional External Interactions, and Disease Awareness and
our Medical Education process, and rolled out training on the
guidance for commercial-medical interactions. AI review
functions have been set up to conduct AI risk reviews and to
ensure compliance with internal and external standards. We
continuously improve our internal controls and support our
employees to conduct activities ethically and transparently, and
in compliance with applicable codes, laws, and regulations.
Data ethics and privacy
Risk definition
The risk that GSK or our third parties potentially fail to ethically
collect,; use; re-use through AI, data analytics or automation;
secure; share and destroy personal information in accordance
with laws, regulations, and internal controls and requirements.
Risk impact
Non-compliance with data privacy laws could lead to harm to
individuals and GSK. It could also damage trust between GSK
and individuals, communities, business partners and government
authorities. Many countries have increased the enforcement
powers of their data protection authorities, allowing them to
impose significant fines, restrict cross-border data flows, or
temporarily ban data processing. Many new national laws also
enable individuals to bring collective legal actions against
companies for failing to follow data privacy laws.
Context
Data protection and privacy legislation is diverse, with limited
global harmonisation or simplification, making it challenging for
any multi-national company to standardise its approach to
compliance. Governments are enforcing compliance with data
protection and privacy laws more rigorously.
The approach and focus of data protection and privacy
regulators also differs between regions and countries, which
creates further challenges for global organisations seeking to
implement a single harmonised global privacy programme.
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Increases in the volume of data processed and advances in
technology have resulted in a greater focus on data
governance and the ethical use of personal information, over
and above compliance with data privacy laws. Companies
seeking to foster innovation in AI/ML and other new
technologies are faced with evolving decisions from
policymakers on how best to promote trust in these systems and
avoid unintended outcomes or harmful impacts. Regulators
(including in the EU, UK, US and China) continue to introduce
regulatory developments around the use of AI/ML. This evolving
regulatory landscape adds more complexity to our activities.
Additionally, the geopolitical environment significantly
influences the evolution of laws concerning the localisation of
data, restrictions on international transfers and data security
(including, in 2024, the proposed BIOSECURE Act in the US).
This increasing trend for data sovereignty may impact our
ability to innovate and to effectively operate internationally.
Mitigating actions
Our Group General Counsel is GSK’s ERO, and chairs our Digital
and Privacy Governance Board, which oversees GSK’s overall
data ethics and privacy operating model. Each GSK business
area has appointed a risk owner accountable for overseeing its
privacy risks, supported by privacy leaders within their business.
In countries where local data privacy laws require the
appointment of a Data Protection Officer (DPO), GSK has made
such appointments, including an EU DPO. As a result of GSK’s
focus on technology, data-driven science, use of AI/ML and our
evolving global data strategy, the ERO has appointed a Head of
Digital, Privacy and Cybersecurity (Head of DPC), who has day-
to-day accountability for designing and implementing the
control framework.
The Head of DPC leads a global, cross-functional core team of
digital- and privacy-qualified attorneys and compliance
professionals, supported by a network of privacy leaders within
business units/functions, privacy contacts locally, and the wider
Legal & Compliance team. GSK has a global data ethics and
privacy framework based on the EU General Data Protection
Regulation, which is deployed in every market based on factors
including the robustness of local privacy legislation, established
data protection authorities, and GSK’s footprint.
Our core team is responsible for:
– operating and improving the centralised global data ethics
and privacy control framework
– continuously assessing and providing relevant and
proportionate controls and aid to non-deployed markets
– monitoring new or changing laws and adapting the privacy
framework accordingly
– deploying a comprehensive training programme to drive
greater awareness and accountability for managing personal
information across the entire organisation
– legal and regulatory expertise in emerging technologies,
including AI/ML
We ensure key GSK privacy network roles have sufficient
training and experience to carry out their roles effectively. We
continuously improve our processes, such as issue identification,
reporting and handling, through monitoring. Our core team
works with the business to ensure we build in privacy controls
into all existing and new business initiatives, as well as ensuring
we meet our accountability obligations in accordance with
global data protection and privacy laws.
Our AI Governance Council monitors regulatory updates to
ensure that the GSK Responsible AI Framework is in line with
regulatory developments. The established AI operating
framework integrates AI risk review and management with
existing Risk Management Compliance Boards.
Research practices
Risk definition
The risk that GSK or our third parties potentially fail to
adequately conduct ethical and credible pre-clinical and
clinical research, collaborate in research activities compliant
with laws, regulations, and internal controls and requirements.
Risk impact
The potential impacts of this risk include harm to human
subjects, reputational damage, failure to secure regulatory
approvals for our products, governmental investigation, legal
actions by governmental and private entities (including product
liability suits and claims for damages), revenue loss due to
inadequate patent protection or inability to supply our
products, and regulatory action such as fines, penalties, or loss
of product authorisation. Poor data integrity and governance
could compromise GSK’s R&D efforts and negatively impact our
reputation. Any of these could severely impact our financial
results and erode trust among patients and customers.
Context
Human research is critical to assessing and demonstrating the
safety and efficacy of our investigational products, discovering
new products, and for further evaluating our products post-
approval. This research includes clinical trials involving both
healthy volunteers and patients, and it adheres to stringent
regulations and the highest ethical, medical, and scientific
standards. Our clinical trials reflect the populations affected by
the diseases we are aiming to address. We are committed to
ensuring we recruit participants to our clinical trials in line with
the epidemiology of the diseases in question and we ensure
that the patients and people enrolled in our clinical trials
represent the real-world patient/people population affected by
the disease under study and that will use our medicines and
vaccines. We are committed to transparency and disclose the
results of our human research externally, regardless of whether
they cast our products in a positive or negative light, to ensure
that the scientific community can benefit from our findings.
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Principal risks and uncertainties continued
314
Additionally, our work with human biological samples is crucial
to the discovery, development, and safety monitoring of our
products. We are committed to managing these human
biological samples in accordance with relevant laws,
regulations, and ethical principles, and in a manner that
respects the interests of sample donors.
Data is pivotal to our R&D strategy, and we continue to
leverage healthcare technologies and maximise the use of data
to serve patients. Governing our data in accordance with
relevant laws, regulations, contractual obligations, expectations,
and our culture across data ethics, privacy, information and
cyber security, and data integrity is essential .
The external environment is increasingly challenging and
influenced by the regulatory and political environment in
addition to the rising trend of data sovereignty and the
developing global landscape of quality standards, data
protection, privacy and cyber laws with potential impact on
how we conduct our research in a global setting.
Research involving animals can raise ethical concerns. In many
cases, however, research involving animals is the only way to
investigate the effects of a potential new medicine or vaccines
in a living body other than in humans. Animal research provides
critical information about the causes and mechanisms of
diseases and therefore remains a vital part of our research. We
continually seek ways in which we can minimise or find
alternatives to the use of animals in research, development, and
testing, while complying with regulatory requirements and
reducing the impact on the animals used.
Biological materials are required for the discovery, research,
and development of our assets. We are committed to
conducting research is compliance with terms and conditions of
licenses, agreements, or authorisations under which we acquire,
use, or transfer biological materials and technologies. Through
the Convention on Biological Diversity (CBD) and the Nagoya
Protocol, the international community has established a global
framework regulating access to, and use of, genetic resources
of non-human origin in research and development. We support
the equitable access and fairness principles of access and
benefit sharing (ABS) outlined in the CBD and the Nagoya
Protocol. We also recognise the importance of appropriate,
effective, and proportionate implementation measures at
national and regional levels.
Mitigating actions
Our CMO is the ERO and is accountable for the Research
Practices Risk. Oversight of the risk is supported by an R&D risk
governance framework and management of the risk takes a
pragmatic approach to information sharing, streamlining risk
identification and escalation while ensuring ownership of risk
mitigation remains with the business.
Laboratory Animal Science and Governance (LASG), led by our
Chief Veterinary Officer, oversees the humane and responsible
care and use of animals, the conduct of ethical reviews and
independent scientific reviews of animal studies, and advocacy
for the application of non-animal alternatives. LASG provides a
framework of animal welfare governance; defines and provides
oversight for animal care and use programmes; promotes the
replacement, refinement, and reduction of animal use in
research; conducts quality assessments and manages a
programme of due diligence of external animal research.
Ensuring we implement and maintain robust data governance
controls and metrics remains an important priority, especially as
our scientific strategy is evolving to take advantage of the
breadth of our data, both internally and externally generated,
including genomics and AI/ML. We focus on building data
integrity, privacy, information protection and data usage
controls into our internal control framework. Independent audits
conducted by our quality assurance teams ensure the effective
monitoring of these controls. Additionally, we have set up an
R&D AI/ML Working Group that has developed and deployed
an R&D AI/ML control framework aligned with the expectations
of the enterprise AI Governing Council.
We regularly assess new or revised laws and regulations, like
ICH GCP E6 (R3) Guideline for Good Clinical Practice, Executive
Order to Protect Americans’ Sensitive Personal Data, the
proposed US BIOSECURE Act and the FDA's guidance on
diversity action plans for clinical trials. We perform
comprehensive impact assessments to ensure compliance with
the regulations and legislation and focus on implementing them
effectively to reduce impact on business operations. We are
also consolidating existing control frameworks into a single
Quality Management System to incorporate quality by design
and continuously optimise our processes, such as individual
human data use/reuse, ensuring we remain compliant while
enhancing our data capabilities to discover and develop new
and innovative products.
Our R&D organisation maintains and controls pre-publication
procedures to guard against public disclosure before patent
applications are filed. In addition, because a lack of data
integrity in preparing patent application data and information
can lead to a loss of patent protection, legal experts
collaborate with R&D to support the review process for new
patent applications. Our R&D organisation collaborates with
legal experts throughout the development of our assets to take
account of any relevant third-party patent rights.
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Principal risks and uncertainties continued
315
Environment, health, and safety (EHS)
Risk definition
The risk that GSK or our third parties potentially fail to ensure
appropriate controls and governance of the organisation'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 disrupt supply or harm employees, third parties or the
environment.
Risk impact
Failure to manage EHS risks could result in significant harm to
people, the environment and the communities in which we
operate, fines, inability to meet stakeholder expectations and
regulatory requirements, litigation or regulatory action, and
damage to the company’s reputation. This could materially and
adversely affect our financial results.
Context
GSK is subject to the health, safety and environmental laws of
various jurisdictions. These laws impose duties to protect
people, the environment and the communities in which we
operate. The external regulations continue to arise and evolve,
notably new sustainability directives from the EU and Canada
and proposed rules in the US and evolving PFAS regulations.
Developments in AI and data protection have also added both
opportunities and challenges.
Mitigating actions
Our President, Global Supply Chain is accountable for the EHS
enterprise risk, supported by the GSK Leadership Team. They
ensure there is an effective control framework ‘in-place’ and ‘in-
use’ to manage EHS risks, impacts, and legal compliance issues
in each of our businesses. This includes assigning responsibility
to senior managers for providing and maintaining our controls
and for ensuring that tiered monitoring and governance
processes are in place within their business units, such as at EHS
Councils.
Function leaders ensure that our EHS control framework is
implemented effectively in their respective business area, that it
is compliant with applicable laws and regulations, and that it is
adequately resourced, maintained, communicated, and
monitored. Every employee and qualified contractor acting on
behalf of GSK is personally responsible for ensuring that they
follow all applicable local standard operating procedures. Our
risk-based, proactive approach is articulated in our global EHS
policy and detailed in our global EHS standards, against which
we audit all our operations to ensure compliance. We ensure
hazards are appropriately controlled through the design of
facilities, equipment and systems. These rigorous procedures,
when applied correctly, put effective barriers in place to protect
employees’ health and safety. We also have a governance
programme to assess third party EHS risks to our mission. We
continue to monitor the evolving external regulatory
environment.
We have embedded and matured application of the 12 Life
Saving Rules across GSK. Our Safety Leadership Experience
programme continues across the enterprise, using learned skills
to build a strong, leader-involved safety culture. Our Contractor
Safety programme has been deployed across GSK, with a
proactive approach to prevent risks that could result in SIFs
(significant incidents and fatalities). We are improving driver
safety through safer cars and enhanced training. Initiatives
around Risk Assessment Capability and safely working at
heights will continue into 2025.
Information and cyber security
Risk definition
The risk that GSK or our third parties fail to ensure appropriate
controls and governance to identify, protect, detect, respond,
and recover from cyber security incidents in accordance with
applicable laws, regulations, industry standards, internal
controls, and requirements. This could be due to unauthorised
access, disclosure, loss, theft, unavailability or corruption of
GSK's information, key systems, or technology infrastructure.
Risk impact
Failure to adequately protect our information and systems
against cyber security threats may cause harm to patients,
workforce and customers, disruption to our business and/or loss
of commercial or strategic advantage, regulatory sanction, or
damage to our reputation.
Context
The external environment remains challenging, with increased
geopolitical conflict and digital nationalism, rising frequency of
data breaches, and growing sophistication of cyber threat
actors. New cyber regulations and privacy laws, along with the
anonymity provided by cryptocurrencies and the dark web, are
complicating the environment. GSK’s business relies on a highly
connected information network, making our systems and
information targets for cyber security threats. This means that
companies’ systems and information have been and will
continue to be targeted by cyber security threat actors.
Acceleration in the use of digital, data and analytics, AI/ML
and could computing capabilities to drive GSK’s pipeline,
performance and productivity requires us to continuously adapt
and strengthen our controls and defensive capabilities. We also
rely on third-party contractors, partners, and suppliers who face
similar cyber security threats.
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Principal risks and uncertainties continued
316
Mitigating actions
Risk management and strategy
We manage cyber security risk using our corporate enterprise
risk management and Internal Control Framework (ICF). Our
Chief Information Security Officer (CISO) heads our Cyber
Security Office and is responsible for identifying and
implementing controls to mitigate and manage cyber security
risks, while maintaining a set of key risk indicators and setting
tolerances and thresholds that balance risk and business needs.
We adhere to widely accepted standards and frameworks to
benchmark our internal environment and controls, defining our
security objectives and desired outcomes. As our threat
environment evolves, we also utilise external frameworks such
as the NIST Cyber Security Framework to measure cyber
readiness and maturity, ISO 27001/27002 for general
information technology controls, and Sarbanes-Oxley (SOX) for
assessment of internal controls. Furthermore, we draw on third
party consultants’ expertise in processes for assessing,
identifying and/or managing cyber security risks. We also have
a third-party security risk management programme to assess
cyber security risk when selecting and onboarding third parties.
Information and Cyber Security Governance
The Chief Digital and Technology Officer (CDTO) leads the
Digital and Technology function, including the CISO and Cyber
Security Office. The CDTO is the ERO and manages and
reports regularly on the GSK Information and Cyber Security risk.
The CISO coordinates risk, develops controls, and monitors the
enterprise risk plan. This plan includes a description of the risk,
its external and internal context, our assessment and risk
appetite, how we treat and monitor the risk in line with our ICF.
The Board, Audit & Risk Committee, and Risk Oversight and
Compliance Council oversee our cyber security risk. The CISO
regularly reports on cyber security risks. This reporting covers
external and internal insights, key risk indicators, management
actions, updates on implementing the enterprise risk plan, and
escalations. The Cyber Security Office analyses potential cyber
security incidents. Significant cyber security incidents are
escalated to the Chief Compliance Officer, CDTO, GSK
Leadership Team, and Company Secretary. Material incidents
are escalated to the Board and Audit & Risk Committee and
appropriate disclosure committee as needed.
Cyber Security Awareness, Training and Readiness
Our cyber security awareness and training programmes include
phishing simulations, monthly awareness campaigns, and
mandatory annual refreshers for all employees. We also run
periodic crisis simulation exercises to test our response to cyber
security incidents.
Compliance with various governmental cyber security
regulations
Our Cyber Security Office, works to stay abreast of emerging
government regulations, trends, and compliance expectations
regarding cyber security.
Supply continuity
Risk definition
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.
Risk impact
We recognise how important continuity of supply of our
products is to the patients who rely on them. Difficulties with
forecasting demand for our products or their manufacture or
distribution can lead to:
– Product shortages and product recalls
– Regulatory intervention
– Reputational harm
– Lost sales revenue
To respond, we need sophisticated end-to-end supply chain
management combined with robust crisis management and
business continuity plans.
Context
We operate our supply chains in a continually evolving, highly
regulated environment. There is no single set of global
regulations which governs the manufacture and distribution of
medicines, and we must adhere to the requirements in all those
markets in which we licence, sell or manufacture our products.
We rely on our internal Quality Management System and our
Internal Control Framework to ensure we maintain our licence
to operate.
Our complex end-to-end supply chains often involve third-party
suppliers, from Active Pharmaceutical Ingredient (API)
manufacturers and raw material suppliers through to third party
logistics providers and contract engineering firms.
We continue to operate our global supply chains in a rapidly
changing geopolitical environment. Increasing nationalism and
friction between the US and China creates divergence from
global supply strategy.
Increasing environmental regulation and reporting across the
healthcare sector has the potential to increase scrutiny by
investors, governments and non-governmental organisations as
net-zero climate targets progress. Evolving regulation and
increasing scrutiny is being incorporated into public
procurement of medicines and vaccines.
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Principal risks and uncertainties continued
317
Mitigating actions
We now operate a single Global Supply Chain organisation
after the successful integration of our Vaccines and Medicines
supply chains completing this year. We focus on accelerating
innovation with the use of technology and data to transform the
way we manufacture and supply our medicines and vaccines.
Our supply chains work closely with R&D. We focus our talent
on the skills needed for the future, addressing skills in new
technologies and modalities.
Our Medicines and Vaccines supply chains are set up to ensure
sustainable global supply. The GSK Internal Control Framework
drives our approach to risk management and is designed to
identify emerging new risks and support clear decision making.
Risk oversight is managed through a hierarchy of Risk
Management and Compliance Boards to assure risk mitigation
(including identifying new and emerging threats).
We have integrated risk management into our sourcing and
day-to-day business processes, with an emphasis on our third-
party oversight. We have reacted to the geopolitical risks by
designing supply routes that de-risk sourcing decisions and we
use business continuity planning to mitigate and maintain
supply continuity, such as dual sourcing for materials and
adapting supply routes to meet regulatory expectations for
both our commercial and late-stage clinical supply chains.
Supply chain governance committees closely monitor the
inventory status and delivery of our products. Our core
commercial cycle links supply chain forecasting with our
commercial ambition. It is designed to reduce the risk of
demand fluctuations and manage temporary shortages in
supply.
We periodically review each node in our supply chains to ensure
we hold adequate safety stocks, while balancing working
capital. We put particular emphasis on mitigating supply risks
associated with medically critical, high-revenue products and
new product launches, for example using dual sourcing for key
products or APIs. We use the monthly Performance
Management Process across our supply chains to monitor
business activity and highlight adverse trends in supply,
operations, budget and workforce capability.
Crisis management and business continuity plans are in place
across our supply chains, which include authorised response
and recovery strategies, key areas of responsibility and clear
communication routes. We regularly use business continuity
plans to manage potential supply disruptions. Our
manufacturing sites have crisis management plans in place.
These plans are tested at least annually to maintain core skills
in crisis management.
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Principal risks and uncertainties continued
318
Share capital and control
Details of our issued share capital and the number of shares
held in Treasury as at 31 December 2024 can be found in Note
37 to the financial statements, ‘Share capital and share
premium account’.
Our Ordinary Shares are listed on the London Stock Exchange
(LSE) and are also quoted on the New York Stock Exchange
(NYSE) in the form of American Depositary Shares (ADS). Each
ADS represents two Ordinary Shares. For details of listed debt
and where it is listed refer to Note 30 to the financial
statements, ‘Net debt’.
Holders of Ordinary Shares and ADS are entitled to receive
dividends (when declared) and a copy of the company’s
Annual Report (if elected). They are also entitled to attend,
speak, appoint proxies and exercise voting rights at general
meetings of the company.
There are no restrictions on the transfer, or limitations on the
holding, of Ordinary Shares and ADS and no requirements to
obtain approval prior to any transfers. No Ordinary Shares or
ADS carry any special rights with regard to control of the
company and there are no restrictions on voting rights. Major
shareholders have the same voting rights per share as all other
shareholders. There are no known arrangements under which
financial rights are held by a person other than the holder of the
shares and no known agreements on restrictions on share
transfers or on voting rights.
Shares acquired through the Group’s employee share plans
rank equally with the other shares in issue and have no special
rights. The trustees of our Employee Share Ownership Plan
Trusts have waived their rights to dividends on shares of GSK
plc held by those Trusts.
Exchange controls and other limitations
affecting holders
Other than certain economic sanctions, which may be in force
from time to time, there are currently no applicable laws,
decrees or regulations in force in the UK restricting the import or
export of capital or restricting the remittance of dividends or
other payments to holders of the company’s shares who are
non-residents of the UK.
Similarly, other than certain economic sanctions which may be
in force from time to time, there are no limitations relating only
to non-residents of the UK under English law or the company’s
Articles of Association on the right to be a holder of, and to vote
in respect of, the company’s shares.
Interests in voting rights
Other than as stated below, as far as as the company is aware,
there are no persons with significant direct or indirect holdings
in the company. Information provided to the company pursuant
to the FCA's Disclosure Guidance and Transparency Rules (DTR
5) is published on a Regulatory Information Service and on the
company’s website, gsk.com.
The company has received notifications in accordance with
DTR 5 of the following notifiable interests in the voting rights in
the company’s issued share capital:
31 December 2024 20 February 2025
No. of
voting
rights
Percentage
of total
voting
rights(1)
No. of
voting
rights
Percentage
of total
voting
rights(1)
BlackRock, Inc.
231,975,400(2)
5.60 % 231,975,400(2)
5.60 %
Dodge & Cox
253,464,108(3)
6.11 % 253,464,108(3)
6.11 %
(1) Percentage of total voting rights at the date of notification to the
company.
(2) Comprising an indirect interest in 229,134,683 Ordinary Shares and a
holding of 2,840,717 Qualifying Financial Instruments (Contracts for
Difference).
(3) Comprising an indirect interest in 99,377,874 Ordinary Shares and
154,086,234 ADS.
The company has not acquired or disposed of any interests in
its own shares during the period under review.
Share buyback programme
The Board has been authorised to issue and allot Ordinary
Shares under Article 9 of the company’s Articles of Association.
The power under Article 9 and the authority for the company to
make purchases of its own shares are subject to shareholder
authorities which are sought on an annual basis at our Annual
General Meeting (AGM). Any shares purchased by the
company may be cancelled, held as Treasury shares or used for
satisfying share options and grants under the Group's employee
share plans.
Our programme covers purchases of shares for cancellation or
to be held as Treasury shares, in accordance with the authority
renewed by shareholders at the AGM in May 2024, when the
company was authorised to purchase a maximum of
411,703,340 shares.
In determining specific share repurchase levels, the company
considers the development of free cash flow during the year.
Details of shares purchased, cancelled, held as Treasury shares
and subsequently transferred from Treasury to satisfy awards
under the Group’s employee share plans are disclosed in Note
37 to the financial statements, ‘Share capital and share
premium account’.
On 5 February 2025 GSK announced its intention to implement a
£2 billion share buyback programme to be completed over an 18
month period. The programme commenced on 24 February
2025 with an initial tranche of up to £0.7 billion.
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GSK Annual Report 2024
Shareholder information
319
Market capitalisation
The market capitalisation, based on shares in issue excluding
Treasury shares, of GSK at 31 December 2024 was £55.8 billion.
At that date, GSK was the 11th largest company by market
capitalisation in the FTSE index.
Share price
2024
£
2023
£
2022
£
At 1 January
14.80
14.51
16.13
At 31 December
13.47
14.50
14.38
Increase/(decrease)
(9) %
(0.06) %
(12) %
High during the year
18.13
15.36
18.31
Low during the year
13.00
13.16
12.96
The table above sets out middle market closing prices. The
company’s share price decreased by (9)% in 2024. This
compares with an increase in the FTSE 100 index of 5.7% during
the year. The middle market closing share price on 20 February
2025 was £14.47.
The trading symbol for GSK's Ordinary Shares of 31 ¼ pence
each on the LSE is GSK and the trading symbol for GSK's ADSs
on the NYSE is GSK.
Share price trend in the three years ended
31 December 2024
UK£
US$
UK Share Price (UK£)
US Share Price (US$)
Jan-22
Jan-23
Jan-24
7
8
10
11
12
13
14
16
17
18
19
27
32
36
41
45
50
54
59
63
68
Nature of trading market
The following table sets out, for the periods indicated, the high and low middle market closing prices for the company’s Ordinary
Shares on the LSE and for the ADS on the NYSE.
Ordinary Shares
ADS
UK£ per share
US$ per share
High
Low
High
Low
February 2025*
14.85
13.80
37.70
34.84
January 2025
14.05
12.94
35.50
32.08
December 2024
13.83
13.20
35.99
33.43
November 2024
14.20
13.00
37.02
33.35
October 2024
15.22
13.93
40.30
36.76
September 2024
16.71
15.17
44.26
40.56
Quarter ended 31 December 2024
15.22
13.00
40.30
33.35
Quarter ended 30 September 2024
16.71
14.98
44.26
38.21
Quarter ended 30 June 2024
18.13
15.26
45.78
38.50
Quarter ended 31 March 2024
17.11
14.80
43.58
37.51
Quarter ended 31 December 2023
15.21
13.82
37.56
34.17
Quarter ended 30 September 2023
15.36
13.16
38.07
33.81
Quarter ended 30 June 2023
15.23
13.46
38.32
33.60
Quarter ended 31 March 2023
15.03
13.77
36.43
33.50
Year ended 31 December 2022
14.92
13.20
37.92
30.00
Year ended 31 December 2021
16.19
13.80
44.44
38.13
Year ended 31 December 2020
14.68
12.92
39.17
33.42
* to 20 February 2025
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Shareholder information continued
Share capital and control continued
320
Analysis of shareholdings at 31 December 2024
Number of
accounts
% of total
accounts
% if total
shares
Number of shares
Holding of shares
Up to 1,000
43,735
75.37
0.30
12,841,103
1,001 to 5,000
10,671
18.39
0.52
22,424,074
5,001 to 100,000
2,652
4.57
1.16
49,934,290
100,001 to 1,000,000
643
1.11
5.27
227,421,834
Over 1,000,000
326
0.56
92.75
4,001,682,433
58,027
100.00
100.00
4,314,303,734
Held by
Institutional and corporate holders
2,699
4.65
75.33
3,249,766,038
Individuals and other corporate bodies
55,326
95.35
1.26
54,190,742
Guaranty Nominees Limited (ADR programme)
1
0.00
19.50
841,175,799
Held as Treasury shares by GSK
1
0.00
3.92
169,171,155
58,027
100.00
100.00
4,314,303,734
JP Morgan Chase Bank NA is the Depositary for the company’s American Depositary Receipt (ADR) programme. The company’s
ADS are listed on the NYSE. Ordinary Shares representing the company’s ADR programme, which is managed by the Depositary,
are registered in the name of Guaranty Nominees Limited. At 20 February 2025, Guaranty Nominees Limited held 850,772,953
Ordinary Shares representing 20.52% of the issued share capital (excluding Treasury shares).
At 20 February 2025, the number of holders of Ordinary Shares in the US was 894 with holdings of 750,483 Ordinary Shares, and
the number of registered holders of ADS was 14,455 with holdings of 425,386,476 ADS. Certain of these Ordinary Shares and ADS
were held by brokers or other nominees. As a result, the number of holders of record or registered holders in the US is not
representative of the number of beneficial holders or of the residence of beneficial holders.
Dividends
The company pays dividends quarterly and continues to return
cash to shareholders through its dividend policy. Dividends
remain an essential component of total shareholder return and
GSK recognises the importance of dividends to shareholders.
From 2022, GSK implemented a progressive dividend policy
guided by a 40% to 60% pay-out ratio through the investment
cycle. The dividend policy, the total expected cash distribution,
and the respective dividend pay-out ratios for GSK remain
unchanged.
Dividends per share
The table below sets out the dividend per share and per ADS
for the last five years. The dividend per ADS is translated into
US dollars at applicable exchange rates.
Year
pence
US$(1)
2024
61(2)
— (4)
2023
58
1.47
2022
61.25(3)
2.00
2021
80
2.16
2020
80
2.12
(1) An annual fee of $0.03 per ADS (or $0.0075 per ADS per quarter) will be
charged by the Depositary. The amounts shown are the dividends paid
per ADS before the annual fee is charged.
(2) Dividends declared and paid in respect of 2024 were 15p per share for Q1
2024, 15p per share for Q2 2024 and 15p per share for Q3 2024. A
dividend of 16p per share has been declared for Q4 2024.
(3) Adjusted for the Share Consolidation (2022 only; prior years have not
been adjusted).
(4) The Q4 2024 ordinary dividend receivable by ADS holders will be
calculated based on the exchange rate on 8 April 2025. The cumulative
dividend receivable by ADS holders for Q1, Q2 and Q3 2024 was £1.15.
The expected dividend for 2025 is 64p per Ordinary Share.
Details of the dividends declared, the amounts and the
payment dates are given in Note 16 to the financial statements,
‘Dividends’.
2025 Dividend calendar
Quarter
Ex-dividend
date
ADS Ex-
dividend date
Record date
Payment date
Q4 2024
20 February
2025
21 February
2025
21 February
2025
10 April
2025
Q1 2025
15 May
2025
16 May
2025
16 May
2025
10 July
2025
Q2 2025
14 August
2025
15 August
2025
15 August
2025
9 October
2025
Q3 2025
13 November
2025
14 November
2025
14 November
2025
8 January
2026
Q4 2025
19 February
2026
20 February
2026
20 February
2026
9 April
2026
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GSK Annual Report 2024
Shareholder information continued
321
Financial calendar 2025
Event
Date
Quarter 1 results announcement
30 April 2025
Annual General Meeting
7 May 2025
Quarter 2 results announcement
30 July 2025
Quarter 3 results announcement
29 October 2025
Preliminary/Quarter 4 Results announcement
4 February 2026
Annual Report publication
February/March 2025
Annual Report distribution
March 2025
Information about the company, including the share and ADS
price, is available on our website at gsk.com. Information made
available on the website does not constitute part of this Annual
Report.
Stock Exchange announcement notifications
We provide shareholders with a service to receive automatic
email notifications when we publish a stock exchange
announcement. To receive email notifications, please sign up
for announcements at gsk.com in the Investors section.
Results announcements
Results announcements are issued to the LSE and are available
on its news service. They are also sent to the US Securities and
Exchange Commission (SEC) and the NYSE, issued to the media
and made available on our website.
Financial reports
The Annual Report is made available on our website from the
date of publication. Shareholders may elect to receive
notification by email of the publication of Annual Reports by
registering on www.investorcentre.co.uk, and may also elect to
receive a printed copy of the Annual Report by contacting our
registrar, Computershare Investor Services PLC.
Copies of previous Annual Reports are available on our website.
Printed copies can also be obtained from our registrar (see
page 325 for the contact details).
Annual General Meeting 2025
Our Annual General Meeting (AGM) will be held at 2.30pm (UK
time) on Wednesday, 7 May 2025 at The Landmark London,
222 Marylebone Road, London, NW1 6JQ, United Kingdom and
will also be broadcast live for you to join electronically.
The AGM is the company’s principal forum for communication
with private shareholders. In addition to the formal AGM
business, there will be a presentation by the CEO on the
performance of the Group and its future development. There
will be an opportunity for questions to be asked of the Board
and Chairs of the Board’s Committees will be available to take
questions relating to their roles.
Further details on how to access the AGM electronically or
attend in person, ask questions and vote, can be found in the
notice of Annual General Meeting 2025 (AGM Notice) which
will be made available on our website at gsk.com on or around
24 March 2025.
Investors holding shares through a nominee service should
arrange with that service for them to be appointed as a proxy in
respect of their shareholding to attend and vote at the meeting
electronically.
ADS holders wishing to attend the meeting electronically should
refer to the AGM Notice for details on how to request a proxy
appointment from the Depositary, JP Morgan Chase Bank NA.
This will enable them to attend, ask questions and vote
electronically on the business to be transacted at the meeting.
ADS holders are reminded that if they do not instruct the
Depositary as to the way in which the shares represented by
their ADS should be voted by completing and returning the
voting card provided by the Depositary, their shares will not be
voted.
Documents on display
The Articles of Association of the company and Directors’
service contracts or, where applicable, letters of appointment
between Directors and the company or any of its subsidiaries
(and any side letters relating to severance terms and pension
arrangements) are available for inspection at the company’s
registered office and will be made available for inspection at
the AGM.
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GSK Annual Report 2024
Shareholder information continued
322
Tax information for shareholders
A summary of certain UK tax and US federal income tax
consequences for holders of shares and ADS who are citizens of
the UK or the US is set out below. It is not a complete analysis of
all the possible tax consequences of the purchase, ownership or
sale of these securities. It is intended only as a general guide.
Holders are advised to consult their advisers with respect to the
tax consequences of the purchase, ownership or sale of their
shares or ADS and the consequences under state and local tax
laws in the US and the implications of the current UK/US tax
conventions.
US holders of ADS generally will be treated as the owners of the
underlying shares for the purposes of the current UK/US double
taxation conventions relating to income and gains (Income Tax
Convention), estate and gift taxes (Estate and Gift Tax
Convention), and for the purposes of the Internal Revenue Code
of 1986, as amended.
UK shareholders
This summary only applies to a UK resident shareholder that
holds shares as capital assets.
Taxation of dividends
For the 2024/25 UK tax year, UK resident individuals are
entitled to a dividend tax allowance of up to £500, so that the
first £500 of dividends received in a tax year will be free of tax.
Dividends in excess of this allowance will be taxed at 8.75% for
basic rate taxpayers, 33.75% for higher rate tax payers and
39.35% for additional rate taxpayers. Note that from 6 April
2024 the dividend allowance was reduced from £1,000 to £500.
UK resident shareholders that are corporation taxpayers should
note that dividends payable on ordinary shares are generally
entitled to exemption from corporation tax.
Taxation of capital gains
UK resident shareholders may be liable for UK tax on gains on
the disposal of shares or ADS.
For disposals by individuals in the 2024/25 UK tax year, the
capital gains tax rate is dependant on the date of sale. Prior to
30 October 2024, a taxable capital gain accruing on a disposal
of shares or ADS will be taxed at 10% for basic rate taxpayers,
or 20% if, after all allowable deductions, the individual’s taxable
income for the year exceeds the basic rate income tax banding.
Disposals made on or after 30 October 2024 the rates are
increased to 18% and 24% respectively. Note this is following
the use of any exemptions available to the individual taxpayer
such as the annual exempt amount.
Corporation tax payers may be entitled to an indexation
allowance which applies to reduce capital gains to the extent
that such gains arise due to inflation. Indexation allowance may
reduce a chargeable gain but will not create an allowable loss.
For assets acquired on or before 1 January 2018, legislation in
the Finance Act 2018 freezes the level of indexation allowance
that is given in calculating a company’s chargeable gains at
the value that would apply to the disposal of an asset in
December 2017. For assets acquired from 1 January 2018
onwards, legislation in the Finance Act 2018 removes any
indexation allowance on disposal.
Inheritance tax
Individual (UK-domiciled or otherwise) shareholders may be
liable to UK inheritance tax on the transfer of shares or ADS.
Exposure to a UK inheritance tax charge typically occurs on the
death of the asset owner. However, transfers of shares (other
than commercial sales) within seven years of death remain
relevant to any inheritance tax exposure at death. Further,
transfers to a trust arrangement during lifetime can give rise to
an immediate inheritance tax charge.
Tax may be charged on the amount by which the value of the
shareholder’s estate is reduced as a result of any transfer by
way of lifetime gift or other disposal at less than full market
value. In the case of a bequest on death, tax may be charged
on the value of the shares at the date of the shareholder’s
death. Where an exposure to UK inheritance tax and US estate
or gift tax exists, careful planning must be undertaken to
understand the opportunity to utilise the US/UK Estate and Gift
Double Tax Convention to manage tax credits and avoid
double taxation.
The overall exposure will be dependent on the specific
circumstances of each situation and it is also important to note
that tax charges may arise in other jurisdictions. Bespoke advice
tailored to an individual’s personal circumstances should
therefore be obtained from a tax professional.
Stamp duty and stamp duty reserve tax
UK stamp duty and/or stamp duty reserve tax (SDRT) will,
subject to certain exemptions, be payable on the transfer of
shares at a rate of 0.5% (rounded up to the nearest £5 in the
case of stamp duty) of the consideration for the transfer.
Notwithstanding this, provided that an instrument is executed in
pursuance of the agreement that gave rise to the charge to
SDRT and that instrument is stamped within six years of the
agreement (including being stamped as exempt) any SDRT
charge should be cancelled and any SDRT which has already
been paid will be repaid. Where listed shares are transferred to
a company connected to the transferor the chargeable
consideration will be deemed to be not less than the market
value of the shares transferred. This market value override also
applies where non-listed shares are transferred to a company
connected to the transferor where the consideration includes an
issue of shares.
US shareholders
This summary only applies to a shareholder (who is a citizen or
resident of the US or a domestic corporation or a person that
is otherwise subject to US federal income tax on a net income
basis in respect of the shares or ADS) that holds shares or ADS
as capital assets, is not resident in the UK for UK tax purposes
and does not hold shares for the purposes of a trade, profession
or vocation that is carried on in the UK through a branch or
agency.
The summary also does not address the tax treatment of
holders that are subject to special tax rules, such as banks, tax-
exempt entities, insurance companies, dealers in securities or
currencies, persons that hold shares or ADS as part of an
integrated investment (including a ‘straddle’) comprised of a
share or ADS and one or more other positions, and persons that
own (directly, indirectly or constructively) 10% or more of the
company’s stock (by vote or value), nor does it address tax
treatment that may be applicable as a result of international
income tax treaties.
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Investor information
GSK Annual Report 2024
Shareholder information continued
323
Taxation of dividends
The gross amount of dividends received is treated as foreign
source dividend income for US tax purposes. It is not eligible for
the dividend received deduction allowed to US corporations.
Dividends paid in sterling generally will be includable in income
in a US dollar amount calculated by reference to the exchange
rate in effect on the day the US holder receive the dividends, in
the case of Ordinary Shares, or the date the depositary receives
the dividends, in the case of ADSs. Subject to certain exceptions
for short-term or hedged positions, an individual eligible US
holder will be subject to US taxation at a maximum federal rate
of 23.8% plus applicable state and local tax in respect of
qualified dividends. A qualified dividend as defined by the US
Internal Revenue Service (IRS) is a dividend that meets the
following criteria:
1. It must be issued by a US corporation, a corporation
incorporated in a US possession, or a corporation that is
eligible for the benefits of a comprehensive income tax treaty
deemed satisfactory, as published by the IRS.
2. The dividends are not of a type listed by the IRS as dividends
that do not qualify.
3. The required dividend holding period has been met. The
shares must have been owned by you for more than 60 days
of the ‘holding period’ – which is defined as the 121-day
period that begins 60 days before the ex-dividend date, or
the day in which the stock trades without the dividend priced
in. For example, if a stock’s ex-dividend date is 1 October, the
shares must be held for more than 60 days in the period
between 2 August and 30 November of that year in order to
count as a qualified dividend.
Dividends that are not qualified are subject to taxation at the
US federal graduated tax rates, at a maximum rate of 40.8%.
Some types of dividends are automatically excluded from being
qualified dividends, even if they meet the other requirements.
These include (but are not limited to):
– Capital gains distributions
– Dividends on bank deposits
– Dividends held by a corporation in an Employee Stock
Ownership Plan (ESOP)
– Dividends paid by tax-exempt corporations.
US state and local tax rates on qualified and non-qualified
dividends may vary and would be assessed in addition to the
federal tax rates communicated above.
Taxation of capital gains
Generally, US holders will not be subject to UK capital gains tax,
but will be subject to US tax on capital gains realised on the
sale or other disposal of shares or ADS. Such gains will be long-
term capital gains (subject to reduced rates of taxation for
individual holders) if the shares or ADS were held for more than
one year, from the date the shares were vested/released. Short-
term capital gains can be subject to taxation of rates of up to
40.8%, whereas long-term capital gains may be subject to rates
of up to 23.8%. State and local tax rates on capital gains may
also apply.
Information reporting and backup withholding
Dividends and payments of the proceeds on a sale of shares or
ADS, paid within the US or through certain US-related financial
intermediaries, are subject to information reporting and may be
subject to backup withholding unless the US holder is a
corporation or other exempt recipient or provides a taxpayer
identification number and certifies that no loss of exemption
has occurred. Non-US holders generally are not subject to
information reporting or backup withholding, but may be
required to provide a certification of their non-US status in
connection with payments received. Any amounts withheld will
be allowed as a refund or credit against a holder’s US federal
income tax liability provided the required information is
furnished to the IRS.
Estate and gift taxes
Under the Estate and Gift Tax Convention, a US shareholder is
not generally subject to UK inheritance tax. However, a US
holder may be subject to US federal estate and gift tax.
Stamp duty
UK stamp duty and/or SDRT will, subject to certain exemptions,
be payable on any transfer of shares to the ADS custodian or
depositary at a rate of 1.5% of the amount of any consideration
provided (if transferred on sale), or their value (if transferred for
no consideration).
However, no stamp duty or SDRT should be payable on the
transfer of, or agreement to transfer an ADS or on transfers
within the clearance service. Notwithstanding the above, where
the clearance service operator has made an election under
s97A Finance Act 1986, broadly the 1.5% stamp duty/SDRT
charge should not arise on the transfer into the clearance
service, but transfers to, and within, the system (where there is a
change in beneficial ownership) would attract a 0.5% charge.
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GSK Annual Report 2024
Shareholder information continued
324
Shareholder services and contacts
Registrar
The company’s registrar is:
Computershare Investor Services PLC
The Pavillions, Bridgwater Road Bristol, BS99 6ZY
www.investorcentre.co.uk
Tel: +44 (0)370 707 1595*
Computershare provides a range of services for shareholders:
Service
What it offers
How to participate
Dividend Reinvestment
Plan (DRIP)
As an alternative to receiving cash dividends you may
choose to reinvest your dividends to buy more GSK shares.
A DRIP election form, Terms and Conditions and
information on fees can be downloaded from
www.investorcentre.co.uk or requested by contacting
Computershare.
Dividend payment direct
to your bank account
(bank mandate)
All dividends are paid directly into your bank or building
society account. To receive your cash dividends, you must
provide Computershare with your bank or building society
account details. This is a quick and secure method of
payment.
A dividend bank mandate form can be downloaded
from www.investorcentre.co.uk or requested by
contacting Computershare.
Dividend payment direct to
bank account for overseas
shareholders
Shareholders have the option to receive dividends to their
local bank in their preferred currency. Payment in over 200
permitted jurisdictions around the world available.
More information, including information on fees, can
be found at www.investorcentre.co.uk or by contacting
Computershare.
Electronic
communications
Shareholders may elect to receive electronic notifications
of company communications including our Annual Report,
dividend payments, dividend confirmations and the
availability of online voting for all general meetings. Each
time GSK publishes shareholder documents you will
receive an email containing a link to the document or
relevant website.
Please register at www.investorcentre.co.uk.
Investor Centre
portfolio service
This enables you to create a free online portfolio to view
your share balance and movements, update your address
and dividend payment instructions and register your votes
for our general meetings.
Please register at www.investorcentre.co.uk.
Deduplication of
publications or mailings
If you receive duplicate copies of mailings, you may have
more than one account. Please contact Computershare
and they will arrange for your accounts to be merged into
one for your convenience and to avoid waste and
unnecessary costs.
Please contact Computershare.
Share dealing service†
(please note that market
trading hours are from
8.00am to 4.30pm UK
time, Monday to Friday
(excluding public holidays
in England and Wales)
Shareholders may trade shares, either held in certificated
form or in our Corporate Sponsored Nominee, online, or
via postal dealing service provided by Computershare.
More information on the share dealing service
(including information on fees) can be found at
www.investorcentreco.uk
For online transactions, please log on to:
www.computershare.com/dealing/uk.
For postal transactions, please call: +44 (0)370 707
1595* to request a dealing form.
Corporate Sponsored
Nominee Account
This is a convenient way to manage your shares without
requiring a share certificate. The service provides a facility
for you to hold your shares in a nominee account
sponsored by the company. You will continue to receive
dividend payments and can attend and vote at the
company’s general meetings. Shareholders’ names do not
appear on the publicly available share register and the
service is free to join.
An application form can be requested from
www.investorcentre.co.uk or by contacting
Computershare.
*
Lines are open from 8.30am to 5.30pm, UK time Monday to Friday (excluding public holidays in England and Wales). Please use the country code when
dialling from outside the UK.
†
The provision of share dealing details is not intended to be an invitation or inducement to engage in an investment activity. Advice on share dealing should
be obtained from a stockbroker or independent financial adviser.
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Investor information
GSK Annual Report 2024
Other statutory disclosures
325
Individual Savings Accounts (ISAs)
Equiniti Financial Services Limited provide the EQi Flexible ISA
to hold GSK shares.
Details (including information on fees) are available from
www.eqi.co.uk or can be requested by calling the Equiniti
Customer Experience Team on 0345 0700 720. Lines are open
8:00am to 5:30pm, UK time Monday to Friday (excluding UK
public holidays).†
†
The provision of share dealing details is not intended to be an invitation or
inducement to engage in an investment activity. Advice on share dealing
should be obtained from a stockbroker or independent financial adviser.
ADS Depositary
The ADR programme is administered by JPMorgan
Chase Bank, N.A.:
Regular Correspondence:
EQ Shareowner Services
P.O. Box 64504
St. Paul, MN 55164-0504
Delivery of Stock Certificates and Overnight Mail:
EQ Shareowner Services
1110 Centre Pointe Curve, Suite 101
Mendota Heights, MN 55120-4100
shareowneronline.com/informational/contact-us/
From the US: +1 877 353 1154
From outside the US: +1 651 453 2128
The Depositary also provides Global Invest Direct, a direct ADS
purchase/sale and dividend reinvestment plan for ADS holders.
For details on how to enrol, please visit www.adr.com or call the
above helpline number to obtain an enrolment pack.
Contacts
Investor relations
Investor relations may be contacted as follows:
UK
79 New Oxford Street,
London, WC1A 1DG
Tel: +44 (0)20 8047 5000
US
2929 Walnut Street
Philadelphia PA 19104
Tel: +1 888 825 5249 (US toll free)
Tel: +1 215 751 4000 (outside the US)
GSK Response Center
Tel: +1 888 825 5249 (US toll free)
Tel: +1 215 751 4600 (outside the US)
Share scam alert
If you receive an unsolicited telephone call offering to sell or buy
your shares, please take extra care. The caller may be part of a
highly organised financial scam.
If you are a UK shareholder, please contact the Financial
Conduct Authority at www.fca.org.uk/consumers or on its
consumer helpline:
Tel: 0800 111 6768 (in the UK)*
Tel: +44 207 066 1000 (outside the UK)*
*
Lines are open from 8.00am to 6.00pm, UK time, Monday to Friday,
except UK public holidays, and 9.00am to 1.00pm on Saturdays.
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Other statutory disclosures continued
Shareholder services ad contacts continued
326
US law and regulation
A number of provisions of US law and regulation apply to the
company because our shares are quoted on the NYSE in the
form of ADS.
NYSE rules
In general, the NYSE rules permit the company to follow UK
corporate governance practices instead of those applied in the
US, provided that we explain any significant variations. This
explanation is contained in our Form 20-F, which can be
accessed from the SEC's EDGAR database or via our website.
NYSE rules require us to file annual and interim written
affirmations concerning our Audit & Risk Committee (ARC) and
our statement on significant differences in corporate
governance.
Sarbanes-Oxley Act of 2002
Following a number of corporate and accounting scandals in
the US, Congress passed the Sarbanes-Oxley Act of 2002.
Sarbanes-Oxley is a wide-ranging piece of legislation
concerned largely with financial reporting and corporate
governance.
As recommended by the SEC, the company has an established
Disclosure Committee. The Committee reports to the CEO, the
CFO and to the ARC. It is chaired by the Company Secretary
and its members consist of senior managers from finance, legal,
corporate communications and investor relations.
Where appropriate, external legal counsel, the external
auditors, our sponsor bank, and internal experts are invited to
attend the Disclosure Committee’s meetings periodically. The
Committee has responsibility for considering the materiality of
information and, on a timely basis, determining the disclosure of
that information. It has responsibility for the timely filing of
reports with the SEC and the formal review of the Annual Report
and the Annual Report on Form 20-F. In 2024, the Committee
met 22 times, including for the purpose of receiving relevant
and appropriate training.
Sarbanes-Oxley requires that the Annual Report on Form 20-F
contains a statement as to whether a member of the ARC is an
audit committee financial expert, as defined in rules under
Sarbanes-Oxley. Such a statement for the relevant members of
the ARC (Charles Bancroft) is included in the Board Committee
information area of the Corporate Governance report on page
121 and in his biography on page 114.
Additional disclosure requirements arise under section 302 and
section 404 of Sarbanes-Oxley in respect of disclosure controls
and procedures and internal control over financial reporting.
Section 302: Corporate responsibility for
financial reports
Sarbanes-Oxley requires the CEO and the CFO to complete
formal certifications, confirming that:
– they have each reviewed the Annual Report on Form 20-F;
– based on their knowledge, the Annual Report on Form 20-F
contains no material misstatements or omissions;
– based on their knowledge, the financial statements and other
financial information fairly present, in all material respects,
the financial condition, results of operations and cash flows
as of the dates, and for the periods, presented in the Annual
Report on Form 20-F;
– they are responsible for establishing and maintaining
disclosure controls and procedures that ensure that material
information is made known to them, and have evaluated the
effectiveness of these controls and procedures as at the year
end, the results of such evaluation being contained in the
Annual Report on Form 20-F;
– they are responsible for establishing and maintaining internal
control over financial reporting that provides reasonable
assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes
in accordance with generally accepted accounting
principles;
– they have disclosed in the Annual Report on Form 20-F any
changes in internal controls over financial reporting during
the period covered by the Annual Report on Form 20-F that
have materially affected, or are reasonably likely to affect
materially, the company’s internal control over financial
reporting; and
– they have disclosed, based on their most recent evaluation
of internal control over financial reporting, to the external
auditor and the ARC, all significant deficiencies and material
weaknesses in the design or operation of internal controls
over financial reporting which are reasonably likely to affect
adversely the company’s ability to record, process, summarise
and report financial information, and any fraud (regardless of
materiality) involving persons that have a significant role in
the company’s internal control over financial reporting.
The Group has carried out an evaluation under the supervision
and with the participation of its management, including the
CEO and CFO, of the effectiveness of the design and operation
of the Group’s disclosure controls and procedures as at 31
December 2024.
There are inherent limitations to the effectiveness of any system
of disclosure controls and procedures, including the possibility
of human error and the circumvention or overriding of the
controls and procedures. Accordingly, even effective disclosure
controls and procedures can only provide reasonable
assurance of achieving their control objectives.
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Other statutory disclosures continued
327
The CEO and CFO expect to complete these certifications and
report their conclusions on the effectiveness of disclosure
controls and procedures in March 2025, following which the
certifications will be filed with the SEC as part of our Group’s
Annual Report on Form 20-F.
Section 404: Management’s annual report on
internal control over financial reporting
In accordance with the requirements of section 404 of
Sarbanes-Oxley, the following report is provided by
management in respect of the company’s internal control over
financial reporting (as defined in Rules 13a-15(f) and 15d-15(f)
under the US Securities Exchange Act of 1934, as amended (the
Exchange Act)):
– Management is responsible for establishing and maintaining
adequate internal control over financial reporting for the
Group. Internal control over financial reporting is designed to
provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial
statements for external purposes in accordance with IFRS.
– Management conducted an evaluation of the effectiveness
of internal control over financial reporting based on the
framework, Internal Control – Integrated Framework (2013)
issued by the Committee of Sponsoring Organisations of the
Treadway Commission (COSO).
– There have been no changes in the Group’s internal control
over financial reporting during 2024 that have materially
affected, or are reasonably likely to materially affect, the
Group’s internal control over financial reporting.
– Management has assessed the effectiveness of internal
control over financial reporting as at 31 December 2024 and
its conclusion will be filed as part of the Group’s Annual
Report on Form 20-F.
– Deloitte LLP, which has audited the consolidated financial
statements of the Group for the year ended 31 December
2024, has also assessed the effectiveness of the Group’s
internal control over financial reporting under Auditing
Standard 2201 of the Public Company Accounting Oversight
Board (United States). Their audit report will be filed with the
Group’s Form 20-F.
Section 13(r) of the Exchange Act
Section 13(r) of the Exchange Act requires issuers to make
specific disclosure in their annual reports of certain types of
dealings with Iran, including transactions or dealings with
government-owned or controlled entities, as well as dealings
with entities sanctioned for activities related to terrorism or
proliferation of weapons of mass destruction, even when those
activities are not prohibited by US law and do not involve US
persons.
The Group exported certain medicines to Iran via sales by non-
US entities that are not subsidiaries of a US entity to a
distributor in Iran pursuant to a specific licence issued by the
Office of Foreign Assets Control. The Group ceased exports and
sales to Iran in June 2024.
The Group did not regularly receive information regarding the
identity of the distributor's downstream customers and
intermediaries in Iran, and it is possible that these parties
included entities, such as hospitals and pharmacies, that are
owned directly or indirectly by the Iranian Government or by
persons or entities sanctioned in connection with terrorism or
proliferation activities.
As the Group does not regularly receive information regarding
the identity of its distributor's downstream customers and
intermediaries, it cannot establish the proportion of gross
revenue or sales potentially attributable to entities affiliated
with the Iranian Government or parties sanctioned for
disclosable activities. As a result, the Group is reporting the
entire gross revenues £2.6 million and net profits £5.6 million
from the Group's sales to Iran in 2024.
Some hospitals or other medical facilities in Lebanon may be
affiliated with or controlled by Hezbollah or other groups that
are designated by the United States pursuant to Executive
Order 13224. Again, the Group does not deal directly with such
hospitals or facilities and instead sells through distributors. The
Group is unable to establish the proportion of gross revenue or
sales potentially attributable to reportable activities. As a result,
the Group is reporting the entire gross revenues £7.3 million and
net profits £3.3 million from the Group's sales to Lebanon in
2024.
In addition to Section 13(r) of the Exchange Act, US law
generally restricts dealings by US persons and dealings that
otherwise are subject to US jurisdiction with certain countries or
territories that are subject to comprehensive sanctions, currently
Crimea, Cuba, the so-called Donetsk People's Republic, Iran,
the so-called Luhansk People's Republic, North Korea and Syria,
as well as with the Government of Venezuela (though not with
the country of Venezuela as a whole) and certain agencies of
the Government of the Russian Federation. The Group engages
in some activity in certain such jurisdictions having assessed
applicable licences and exemptions.
While we believe the Group complies with all applicable US
sanctions in all material respects, such laws are complex and
continue to evolve rapidly.
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Other statutory disclosures continued
US law and regulation continued
328
Donations to political organisations and political expenditure
To ensure a consistent approach to political contributions
across the Group, in 2009 a global policy was introduced to
voluntarily stop all corporate political contributions.
In the period from 1 January 2009 to 31 December 2024, the
Group has not made any political donations to EU or non-EU
organisations.
Notwithstanding the introduction of this policy, in accordance
with the Federal Election Campaign Act in the US, we continue
to support an employee-operated Political Action Committee
(PAC) that facilitates voluntary political donations by eligible
GSK employees.
The PAC is not controlled by GSK. Decisions on the amounts
and recipients of contributions are governed by the PAC Board
of Directors. Contributions to the PAC are made by
participating eligible employees exercising their legal right to
pool their resources and make political contributions, which are
subject to strict limitations under US law. In 2024, a total of
US$253,950 (2023: US$325,750) was donated to political
organisations by the GSK employee PAC.
English law requires prior shareholder approval for political
contributions to EU political parties and independent election
candidates as well as for any EU political expenditure. The
definitions of political donations, political expenditure and
political organisations used in the legislation are, however, quite
broad. In particular, the definition of EU political organisations
may extend to bodies such as those concerned with policy
review, law reform, the representation of the business
community and special interest groups such as those
concerned with the environment, which the company and its
subsidiaries might wish to support.
As a result, the definitions may cover legitimate business
activities not in the ordinary sense considered to be political
donations or political expenditure, nor are they designed to
support any political party or independent election candidate.
Therefore, notwithstanding our policy, and while we do not
intend to make donations to any EU political parties or
organisations, nor to incur any EU political expenditure, we
annually seek shareholder authorisation for any inadvertent
expenditure.
The authority is a precautionary measure to ensure that the
company and its subsidiaries do not inadvertently breach the
legislation.
This authorisation process, for expenditure of up to £100,000
each year, dates back to the AGM held in May 2001, following
the introduction of the Political Parties, Elections and
Referendums Act 2000. The authority has since been renewed
annually.
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Other statutory disclosures continued
329
Group companies
In accordance with Section 409 of the Companies Act 2006 a full list of subsidiaries, associates, joint ventures and joint
arrangements, the address of the registered office and effective percentage of equity owned, as at 31 December 2024 are disclosed
below. Unless otherwise stated the share capital disclosed comprises ordinary shares which are indirectly held by GSK plc. The
percentage held by class of share is stated where this is less than 100%. Unless otherwise stated, all subsidiary companies have their
registered office and are tax resident in their country of incorporation.
Name
Security
Registered address
Wholly owned subsidiaries
14245563 Canada Inc.
Common
75 Rue Queen, Unité 1400, Montreal, QC H3C 2N6, Canada
14934792 Canada Inc.
Common
100 Milverton Drive, Suite 800 , Mississauga ON L5R 4H1, Canada
1506369 Alberta ULC
Common
3500 855-2nd Street SW, Calgary AB T2P 4J8, Canada
Action Potential Venture Capital Limited
Ordinary
GSK Medicines Research Centre, Gunnels Wood Road, Stevenage, SG1 2NY,
United Kingdom
Adechsa GmbH (ii)
Ordinary
c/o GlaxoSmithKline AG, Zweigniederlassung Baar/Zug, Neuhofstrasse 4,
6340 Baar, Switzerland
Affinivax, Inc.
Common
Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808,
United States
Aiolos Bio, Inc.
Common Stock
Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808,
United States
Aiolos Bio Limited
Ordinary
79 New Oxford Street, London, WC1A 1DG, United Kingdom
Allen & Hanburys Limited (ii)
Ordinary
79 New Oxford Street, London, WC1A 1DG, United Kingdom
Allen & Hanburys Pharmaceutical Nigeria Limited
Ordinary
49, Town Planning Way, Ilupeju, Lagos, Nigeria
Allen Pharmazeutika Gesellschaft m.b.H.
Ordinary
Wienerbergstraße 7, Wien, 1100, Austria, Austria
Beecham Group p.l.c
£0.20 Ordinary A;
£0.05 Ordinary B
79 New Oxford Street, London, WC1A 1DG, United Kingdom
Beecham Pharmaceuticals (Pte) Limited
Ordinary
38 Quality Road, Jurong Industrial Estate, Jurong, 618809, Singapore
Beecham Portuguesa-
Produtos Farmaceuticos e Quimicos, Lda,
Quota
Rua Dr Antonio Loureiro Borges No 3, Arquiparque, Miraflores, 1495-131,
Alges, Portugal
Beecham S.A.
Ordinary
Avenue Fleming 20, 1300 Wavre, Belgium
Bellus Health Inc
Common
75 Rue Queen, Unité 1300, Montreal, QC H3C 2N6, Canada
Biovesta Ilaçlari Ltd. Sti. (ii)
Nominative
Esentepe Mah, Bahar Sk. Ozdilek River Plaza, Vyndham Grand No: 12 Kat: 22,
Kapi: 58, Sisli, Istanbul 32394, Turkey
Cascan GmbH & Co. KG
Partnership Capital
Prinzregentenplatz 9, 81675, Munich, Bavaria, Germany
Cellzome GmbH
Ordinary
Meyerhofstrasse 1, 69117, Heidelberg, Germany
Clarges Pharmaceuticals Trustees Limited (ii)
Ordinary
79 New Oxford Street, London, WC1A 1DG, United Kingdom
Colleen Corporation
Common
Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808,
United States
Corixa Corporation
Common
Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808,
United States
Dealcyber Limited
Ordinary
79 New Oxford Street, London, WC1A 1DG, United Kingdom
Desarrollo Energia Solar Alternativa S.L.
Ordinary
Severo Ochoa, 2, Parque Tecnologico de Madrid, Tres Cantos, 28760,
Madrid, Spain
Duncan Pharmaceuticals Philippines Inc.
Common
23rd Floor, The Finance Centre, 26th Street Corner 9th Avenue,
Bonifacio Global City, Taguig City, 1634, Philippines
Elsie Biotechnologies, Inc
Common Stock
Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808,
United States
Etex Farmaceutica Ltda
Social Capital
Av. Andrés Bello 2457, Costanera Center, Torre 2, Piso 20, Providencia,
Santiago, 7510689, Chile
Glaxo Group Limited
Ordinary
GSK Medicines Research Centre, Gunnels Wood Road, Stevenage, SG1 2NY,
United Kingdom
Glaxo Kabushiki Kaisha (ii)
Ordinary
1-8-1 Akasaka Minato-ku, Tokyo, Japan
Glaxo New Zealand Pension Plan Trustee Limited
Ordinary
Level 2 E.2, Generator at GridAKL, 12 Madden Street, Wynyard Quarter,
Auckland, 1010, New Zealand
Glaxo Operations UK Limited
Ordinary
79 New Oxford Street, London, WC1A 1DG, United Kingdom
Glaxo Saudi Arabia Limited
Ordinary
PO Box 22617, Area No 56 to 73, Warehouse City, First Stage Al Khomrah,
Jeddah 21416, Saudi Arabia
Glaxo Verwaltungs GmbH
Ordinary
Prinzregentenplatz 9, 81675, Munich, Bavaria, Germany
Glaxo Wellcome Farmaceutica, Limitada
Ordinary
Rua Dr Antonio Loureiro Borges No 3, Arquiparque, Miraflores, 1495-131,
Alges, Portugal
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Investor information
GSK Annual Report 2024
Other statutory disclosures continued
330
Name
Security
Registered address
Wholly owned subsidiaries continued
Glaxo Wellcome International B.V. (iii)
Ordinary
Huis ter Heideweg 62, 3705 LZ, Zeist, Netherlands
Glaxo Wellcome Manufacturing Pte Ltd
Ordinary
1 Pioneer Sector 1, Jurong Industrial Estate, Jurong, 628413, Singapore
Glaxo Wellcome Production
Ordinary
23 rue François Jacob, 92500, Rueil-Malmaison, France
Glaxo Wellcome Vidhyasom Limited (in liquidation)
Ordinary
12th Floor Wave Place, 55 Wireless Road, Lumpini, Pathumwan, Bangkok, 10
330, Thailand
Glaxo Wellcome, S.A.
Ordinary
Poligono Industrial Allendeduero, Avenida de Extremadura, 3,
Aranda de Duero, 09400, Burgos, Spain
Glaxo, S.A.
Ordinary
Severo Ochoa, 2, Parque Tecnologico de Madrid, Tres Cantos, 28760,
Madrid, Spain
Glaxochem Pte Ltd (iii)
Ordinary
23 Rochester Park, 139234, Singapore
GlaxoSmithKline - Produtos Farmaceuticos, Limitada
Ordinary Quota
Rua Dr Antonio Loureiro Borges No 3, Arquiparque, Miraflores, 1495-131,
Alges, Portugal
GlaxoSmithKline (Cambodia) Co., Ltd.
Ordinary
5th Floor DKSH Building, No.797 Preah Monivong Boulevard (Co, Sangkat
Phsar Deum Thakov, Khan Chamkarmon, Phnom Penh, Cambodia
GlaxoSmithKline (China) Investment Co Ltd
Ordinary
Room 901, 902, 903, 905, 908, 909 and 910, Unit 901, Floor 9, No. 56 Mid 4th
East Ring Road, Chaoyang District, Beijing, China
GlaxoSmithKline (China) R&D Company Limited
Equity
F1-3, No.18 Building, 999 Huanke Road, Pilot Free Trade Zone, Shanghai, 201
210, China
GlaxoSmithKline (GSK) S.R.L.
Ordinary
Bucureşti Sectorul 1, Şoseaua BUCUREŞTI-PLOIEŞTI, Nr. 89A
Romania
GlaxoSmithKline (Ireland) Limited
Ordinary
12 Riverwalk, Citywest Business Campus, Dublin 24, Ireland
GlaxoSmithKline (Israel) Ltd
Ordinary
25 Basel Street, PO Box 10283, Petach-Tikva, 49002, Israel
GlaxoSmithKline (Private) Limited (ii)
Ordinary
Unit 3, 20 Anthony Road, Msasa, Harare, Zimbabwe
GlaxoSmithKline (Thailand) Limited
Ordinary
12th Floor Wave Place, 55 Wireless Road, Lumpini, Pathumwan, Bangkok, 10
330, Thailand
GlaxoSmithKline AB
Ordinary
Hemvarnsg. 9, 171 54, Solna, Sweden
GlaxoSmithKline AG
Ordinary
Talstrasse 3 , 3053 Muenchenbuchsee, Switzerland
GlaxoSmithKline Angola Unipessoal Limitada
Quota
Luanda, Bairro Petrangol, Estrada de Cacuaco n ° 288, Angola
GlaxoSmithKline AS
Ordinary
Drammensveien 288, Oslo, NO-0283, Norway
GlaxoSmithKline Australia Pty Ltd
Ordinary
Level 4 , 436 Johnston Street , Abbotsford, Victoria, 3067, Australia
GlaxoSmithKline B.V.
Ordinary
Van Asch van, Wijckstraat 55h, 3811 LP Amersfoort, The Netherlands,
Netherlands
GlaxoSmithKline Beteiligungs GmbH
Ordinary
Prinzregentenplatz 9, 81675, Munchen, Germany
GlaxoSmithKline Biologicals Kft.
Ordinary
2100 Gödöllõ, Homoki Nagy István utca 1, Hungary
GlaxoSmithKline Biologicals S.A.S.
Ordinary
637 Rue des Aulnois, Saint-Amand Les Eaux, 59230, France
GlaxoSmithKline Biologicals SA
Ordinary:
Preference
Rue de l'Institut 89 B-1330 Rixensart, Belgium
GlaxoSmithKline Brasil Limitada
Quotas
Estrada dos Banderiantes, 8464, Rio de Janeiro, 22783-110, Brazil
GlaxoSmithKline Capital Inc.
Common
Wilmington Trust SP Services, Inc., 1100 N. Market Street, 4th Floor,
Wilmington DE 19890, United States
GlaxoSmithKline Capital plc
Ordinary
79 New Oxford Street, London, WC1A 1DG, United Kingdom
GlaxoSmithKline Caribbean Limited
Ordinary
79 New Oxford Street, London, WC1A 1DG, United Kingdom
GlaxoSmithKline Chile Farmaceutica Limitada
Social Capital
Av. Andrés Bello 2457, Torre 2, piso 20, Providencia, Santiago,
Región Metropolitana, Chile
GlaxoSmithKline Colombia S.A.
Ordinary
Avenida Calle 116, No 7-15, Interior 2 Oficina 601 A, Bogota, 110111, Colombia
GlaxoSmithKline doo Beograd-Novi Beograd (In liquidation) Ordinary
Milutin Milankovic, 1J, Novi Beograd, Belgrade, 11070, Serbia
GlaxoSmithKline Ecuador S.A.
Ordinary
Av. 6 de diciembre E10-A, y Juan Boussingault, Edificio Torre 6, Piso 4,
Oficina 408, Quito, Ecuador
GlaxoSmithKline El Salvador S.A. de C.V.
Ordinary
Municipio de San Salvador, Departamento de San Salvador, El Salvador
GlaxoSmithKline EOOD
Ordinary
119 Oborishte Str., Sofia 1505, Bulgaria
GlaxoSmithKline Export Limited
Ordinary
79 New Oxford Street, London, WC1A 1DG, United Kingdom
GlaxoSmithKline Export Panama S.A.
Ordinary
Panama City, Republic of Panama, Panama
GlaxoSmithKline Far East B.V.
Ordinary
Van Asch van Wijckstraat 55h, 3811 LP, Amersfoort, Netherlands
GlaxoSmithKline Finance plc
Ordinary
79 New Oxford Street, London, WC1A 1DG, United Kingdom
GlaxoSmithKline GmbH & Co. KG
Partnership Capital
Prinzregentenplatz 9, 81675, Munchen, Germany
GlaxoSmithKline Guatemala S.A.
Ordinary
3ra. Av. 13-78 Zona 10, Torre Citibank, Nivel 8, Guatemala City, Guatemala
GlaxoSmithKline Holding AS
Ordinary
Drammensveien 288, Oslo, NO-0283, Norway
GlaxoSmithKline Holdings (Americas) Inc.
Common
Wilmington Trust SP Services Inc., 1100 North Market Street, 4th Floor,
Wilmington, Delaware, 19890, United States
GlaxoSmithKline Holdings (One) Limited (i)
Ordinary
79 New Oxford Street, London, WC1A 1DG, United Kingdom
Strategic report
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Financial statements
Investor information
GSK Annual Report 2024
Other statutory disclosures continued
331
Name
Security
Registered address
Wholly owned subsidiaries continued
GlaxoSmithKline Holdings Limited (i)
Ordinary
79 New Oxford Street, London, WC1A 1DG, United Kingdom
GlaxoSmithKline Holdings Pty Ltd
Ordinary
Level 4 , 436 Johnston Street , Abbotsford, Victoria, 3067, Australia
GlaxoSmithKline Honduras S.A.
Ordinary
Tegucigalpa, MDC, Honduras
GlaxoSmithKline IHC Limited
Ordinary
79 New Oxford Street, London, WC1A 1DG, United Kingdom
GlaxoSmithKline Ilaclari Sanayi ve Ticaret A.S.
Nominative
Esentepe Mah, Bahar Sk. Ozdilek River Plaza, Vyndham Grand No: 12 Kat: 22,
Kapi: 58, Sisli, Istanbul 32394, Turkey
GlaxoSmithKline Inc.
Class A Common;
Class C Preference
100 Milverton Drive, Suite 800 , Mississauga ON L5R 4H1, Canada
GlaxoSmithKline Insurance Ltd.
Ordinary
c/o Trinity Corporate Services Ltd., Trinity Hall, 43 Cedar Avenue, Hamilton,
Hamilton, HM12, Bermuda
GlaxoSmithKline Intellectual Property (No.2) Limited
Ordinary
GSK Medicines Research Centre, Gunnels Wood Road, Stevenage, SG1 2NY,
United Kingdom
GlaxoSmithKline Intellectual Property Development Limited
Ordinary
GSK Medicines Research Centre, Gunnels Wood Road, Stevenage, SG1 2NY,
United Kingdom
GlaxoSmithKline Intellectual Property Holdings Limited
A Ordinary;
B Ordinary
GSK Medicines Research Centre, Gunnels Wood Road, Stevenage, SG1 2NY,
United Kingdom
GlaxoSmithKline Intellectual Property Limited
Deferred;
Ordinary
GSK Medicines Research Centre, Gunnels Wood Road, Stevenage, SG1 2NY,
United Kingdom
GlaxoSmithKline Intellectual Property Management Limited
Ordinary
GSK Medicines Research Centre, Gunnels Wood Road, Stevenage, SG1 2NY,
United Kingdom
GlaxoSmithKline Investigación y Desarrollo, S.L.
Ordinary
Severo Ochoa 2 Parque Tecnológico de Madrid, Tres Cantos, 28760,
Madrid, Spain
GlaxoSmithKline Investments Pty Ltd
Ordinary
Level 4 , 436 Johnston Street , Abbotsford, Victoria, 3067, Australia
GlaxoSmithKline K.K.
Ordinary
1-8-1 Akasaka Minato-ku, Tokyo, Japan
GlaxoSmithKline Korea Limited
Ordinary
9F LS Yongsan Tower, 92 Hangang-daero, Yongsan-gu, Seoul, 04386,
Korea, Republic of
GlaxoSmithKline Latin America, S.A.
Ordinary
Panama City, Republic of Panama, Panama
GlaxoSmithKline Limited
Ordinary
Suites 1004-10. 10F, Tower 6, The Gateway, 9 Kanton Road, Tsimshatsui,
Kowloon, Hong Kong
GlaxoSmithKline Limited (ii)
Ordinary
79 New Oxford Street, London, WC1A 1DG, United Kingdom
GlaxoSmithKline LLC
LLC Interests
Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808,
United States
GlaxoSmithKline Manufacturing SpA
Ordinary
Viale dell’Agricoltura 7, 37135, Verona, Italy
GlaxoSmithKline Maroc S.A.
Ordinary
42-44 Angle Bd, Rachidi et Abou Hamed El Glaza, Casablanca, Morocco
GlaxoSmithKline Mercury Limited (i)
Ordinary
79 New Oxford Street, London, WC1A 1DG, United Kingdom
GlaxoSmithKline Mexico S.A. de C.V.
Ordinary A;
Ordinary B
Av. Real Mayorazgo 130 Piso 20, Colonia Xoco, Alcaldia Benito Juárez,
Ciudad de Mexico, 03330, Mexico
GlaxoSmithKline NZ Limited
Ordinary
Level 2 E.2, Generator @GridAKL, 12 Madden Street, Wynyard Quarter,
Auckland, 1010, New Zealand
GlaxoSmithKline Oy
Ordinary
Porkkalankatu 20 A, Helsinki, 00180, Finland
GlaxoSmithKline Peru S.A.
Ordinary
Av. Víctor Andrés Belaúnde N°147, Vía Principal °133, Piso 7,
Distrito de San Isidro, Lima, Perú
GlaxoSmithKline Pharma A/S
Ordinary
Vallensbæk Company House III , Delta Park 37, DK-2665, Valle, Denmark
GlaxoSmithKline Pharma GmbH
Ordinary
Wienerbergstraße 7, Wien, 1100, Austria, Austria
GlaxoSmithKline Pharmaceutical Kenya Limited
Ordinary
P.O Box 78392-00507, Likoni Road, Nairobi, Kenya
GlaxoSmithKline Pharmaceutical Nigeria Limited
Ordinary
1 Industrial Avenue, Ilupeju, Ikeja, Lagos, PM B 21218, Nigeria
GlaxoSmithKline Pharmaceutical Sdn Bhd
Ordinary
HZ.01, Horizon Penthouse, 1 Powerhouse, 1, Persiaran Bandar Utama, Bandar
Utama, 47800 Petaling Jaya, Selangor, Malaysia
GlaxoSmithKline Pharmaceuticals (Pvt) Ltd
Ordinary
121 Galle Road, Kaldemulla, Moratuwa, Sri Lanka
GlaxoSmithKline Pharmaceuticals Costa Rica S.A
Ordinary
Autopista Florencia del Castillo, kilómetro siete, Oficentro TerraCampus,
edificio uno, cuarto piso, San Diego, Cartago, 30302, Costa Rica
GlaxoSmithKline Pharmaceuticals SA
Ordinary
Avenue Fleming 20, 1300 Wavre, Belgium
GlaxoSmithKline Pharmaceuticals Ukraine LLC
Chartered Capital
Pavla Tychyny avenue, 1-V, Kiev, 02152, Ukraine
GlaxoSmithKline Philippines Inc
Ordinary
23rd Floor, The Finance Centre, 26th Street Corner 9th Avenue,
Bonifacio Global City, Taguig City, 1634, Philippines
GlaxoSmithKline Pte Ltd
Ordinary
23 Rochester Park, 139234, Singapore
GlaxoSmithKline Puerto Rico, Inc.
Common
CORPORATION SERVICE COMPANY PUERTO RICO INC., c/o
RVM Professional Services, LLC, A4 Reparto Mendoza, Humacao, 00791,
Puerto Rico
GlaxoSmithKline Republica Dominicana S..A
Ordinary
Blue Mall Tower, Floor 23 Ave., Winston Churchill 95, Santa Domingo,
Dominican Republic
GlaxoSmithKline Research & Development Limited
Ordinary
79 New Oxford Street, London, WC1A 1DG, United Kingdom
Strategic report
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Financial statements
Investor information
GSK Annual Report 2024
Other statutory disclosures continued
332
Name
Security
Registered address
Wholly owned subsidiaries continued
GlaxoSmithKline S.A.
Ordinary
Severo Ochoa, 2, Parque Tecnologico de Madrid, Tres Cantos, 28760,
Madrid, Spain
GlaxoSmithKline S.p.A.
Ordinary
Viale dell’Agricoltura 7, 37135, Verona, Italy
GlaxoSmithKline s.r.o.
Ordinary
Hvezdova 1734/2c, Prague, 4 140 00, Czech Republic
GlaxoSmithKline Services GmbH & Co. KG
Partnership Capital
Prinzregentenplatz 9, 81675, Munchen, Germany
GlaxoSmithKline Services Unlimited (i)
Ordinary
79 New Oxford Street, London, WC1A 1DG, United Kingdom
GlaxoSmithKline Single Member A.E.B.E.
Ordinary
266 Kifissias Avenue, Halandri, Athens, 152 32, Greece
GlaxoSmithKline SL LLC
LLC Interests
Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808,
United States
GlaxoSmithKline SL LP (ii)(v)
Partnership
79 New Oxford Street, London, WC1A 1DG, United Kingdom
GlaxoSmithKline South Africa (Pty) Limited
Ordinary
155 West Street, Sandown, Sandton 2031, South Africa
GlaxoSmithKline Trading Services Limited (iii)
Ordinary
12 Riverwalk, Citywest Business Campus, Dublin 24, D24 YK11, Ireland
GlaxoSmithKline Tunisia S.A.R.L.
Ordinary
Immeuble REGUS, Lot B17, Centre Urbain Nord, Tunis, Tunisia
GlaxoSmithKline UK Limited
Ordinary
79 New Oxford Street, London, WC1A 1DG, United Kingdom
GlaxoSmithKline Uruguay S.A.
Registered Provisory Stock
Victor Soliño 349, Montevideo, Montevideo, 11300, Uruguay
GlaxoSmithKline US Trading Limited
Ordinary
79 New Oxford Street, London, WC1A 1DG, United Kingdom
GlaxoSmithKline Venezuela C.A.
Ordinary
calle Altagracia, edificio P&G, piso Mezzanina, torre Torre Sur, Urbanizacion
Sorokaima, La Trinidad, Caracas, 1080, Venezuela
GlaxoSmithKline Vietnam Limited Liability Company (ii)
Equity Capital
The Metropolitan, 235 Dong Khoi Street, District 1, 7th Floor Unit 701, Ho Chi
Minh City, Vietnam
GlycoVaxyn AG (in liquidation)
Common;
Preferred A;
Preferred B;
Preferred C
Neumühlequai 6, Zürich, 8001 Switzerland
Groupe GlaxoSmithKline
Ordinary
23 rue François Jacob, 92500, Rueil-Malmaison, France
GSK Biopharma Argentina S.A.
Nominative Non Endorseable O
rdinary
Tucumán 1, piso 4, Buenos Aires, C1049AAA, Argentina
GSK Capital B.V (iii) (vi)
Ordinary
79 New Oxford Street, London, WC1A 1DG, United Kingdom
GSK Capital K.K.
Ordinary
1-8-1 Akasaka Minato-ku, Tokyo, Japan
GSK Commercial Sp. z o.o.
Ordinary
ul. Rzymowskiego 53, 02-697, Warsaw, Poland
GSK d.o.o., Ljubljana
Ordinary
Ameriška ulica 8,, Ljubljana, 1000, Slovenia
GSK Enterprise Management Co, Ltd
Ordinary
Floor 4, 18 Lane 999 Huanke Road, No. 1358 Zhongke Road, Shanghai, China
GSK Equity Investments, Limited
Units
Corporation Service Company, 2595 Interstate Drive, Suite 103, Harrisburg,
PA 17110, United States
GSK Finance (No.3) (in liquidation)
Ordinary
c/o BDO LLP, 5 Temple Square, Temple Street, Liverpool, L2 5RH, United
Kingdom
GSK Finance (No 2) Limited
Ordinary
79 New Oxford Street, London, WC1A 1DG, United Kingdom
GSK GP 1 Limited (strike-off requested)
A Shares;
B Shares
50 Lothian Road, Festival Square, Edinburgh, Scotland, EH3 9WJ,
United Kingdom
GSK GP 2 Limited (strike-off requested)
Ordinary
50 Lothian Road, Festival Square, Edinburgh, Scotland, EH3 9WJ,
United Kingdom
GSK India Global Services Private Limited
Equity
Level 1, 2 & 3 Luxor North Tower, Bagmane Capital Business Park Outer Ring
Road, Bangalore, Karnataka, 560037, India
GSK International Holding and Finance BV
Ordinary
Van Asch van Wijckstraat 55h, 3811 LP, Amersfoort, Netherlands
GSK Kazakhstan LLP
Participation Interest
Nursultan Nazarbayev Ave 273, Business center USKO, 3rd fl., Almaty,
050059, Kazakhstan
GSK Life Sciences FZE
Ordinary
LB06015, Jebel Ali Freezone, Dubai, United Arab Emirates
GSK LP Limited (i)
Ordinary
79 New Oxford Street, London, WC1A 1DG, United Kingdom
GSK Pharma India Private Limited
Equity
1, Battery House, Bhulabhai Desai Raod, Mumbai, Maharashtra, 400026,
India
GSK Pharma Vietnam Company Limited
Chartered Capital
Unit 702/703 7th Floor, The Metropolitan Tower, 235 Dong Khoi Street,
Ben Nghe Ward, District 1, Ho Chi Minh, Vietnam
GSK Pharmaceutical Trading S.A. (ii)
Ordinary
Bucureşti Sectorul 1, Şoseaua BUCUREŞTI-PLOIEŞTI, Nr. 89A
Romania
GSK PSC Poland sp. z o.o.
Ordinary
ul. Grunwaldzka 189, Poznań, 60-322, Pol
GSK Regional Headquarters Company
Ordinary
Olaya Tower, Prince Mohamed Ibn Abdelaziz Street, Olaya, Riyadh, 12821,
Saudi Arabia
GSK Services Sp z o.o.
Ordinary
Ul. Grunwaldzka 189, 60-322, Poznan, Poland
GSK Vaccines BV
Ordinary
De Entree 201,1101 HG, Amsterdam
GSK Vaccines GmbH
Ordinary
Emil-von-Behring-Str.76, 35041 Marburg, Germany
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Investor information
GSK Annual Report 2024
Other statutory disclosures continued
333
Name
Security
Registered address
Wholly owned subsidiaries continued
GSK Vaccines Institute for Global Health S.r.l.
Quota
Via Fiorentina 1, 53100, Siena, Italy
GSK Vaccines S.r.l.
Quota
Via Fiorentina 1, 53100, Siena, Italy
GSK Vaccines Vertriebs GmbH
Ordinary
Rudolf-Diesel-Ring 27, 83607, Holzkirchen, Germany
Human Genome Sciences, Inc.
Common
Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808,
United States
ID Biomedical Corporation of Quebec
Common
2323, boul. Du Parc Technologique, Québec Québec G1P 4R8, Canada
Instituto Luso Farmaco, Limitada (in liquidation)
Quota
Rua Dr Antonio Loureiro Borges No 3, Arquiparque, Miraflores, 1495-131,
Alges, Portugal
InterPharma Dienstleistungen GmbH
Quota
Wienerbergstraße 7, Wien, 1100, Austria, Austria
J&J Technologies, LC (ii)
LLC Interests
Corporation Service Company, 100 Shockoe Slip, 2nd Floor, Richmond VA 23
219,, United States
JSC GlaxoSmithKline Trading
Ordinary
Leningradskiy Prospect 37A, Building 4, Floor 3, Premises XV, Room 1, 125167,
Moscow, Russian Federation
Laboratoire GlaxoSmithKline
Ordinary
23 rue François Jacob, 92500, Rueil-Malmaison, France
Laboratoire Pharmaceutique Algérien LPA Production SPA
Ordinary
Zone Industrielle Est, Boudouaou, Boumerdes, Algeria
Laboratoire Pharmaceutique Algérien SPA
Ordinary
Zone Industrielle Est, Boudouaou, Boumerdes, Algeria
Laboratoires Paucourt (ii)
Ordinary
23 rue François Jacob, 92500, Rueil-Malmaison, France
Laboratoires Saint-Germain (ii)
Ordinary
23 rue François Jacob, 92500, Rueil-Malmaison, France
Laboratorios Dermatologicos Darier, S.A de C.V.
Ordinary A;
Ordinary B
Av. Real Mayorazgo 130 Piso 20, Colonia Xoco, Alcaldia Benito Juárez,
Ciudad de Mexico, 03330, Mexico
Laboratorios Farmaceuticos Stiefel (Portugal) LTDA (in
liquidation)
Ordinary
Rua Dr Antonio Loureiro Borges No 3, Arquiparque, Miraflores, 1495-131,
Alges, Portugal
Laboratorios Stiefel de Venezuela SA
Ordinary
Calle Altagracia, edificio P&G, nivel Mezzanina,, piso Mezzanina, local Torre
Sur, Urbanizacion Sorokaima, La Trinidad, Caracas, 1080, Venezuela,
Bolivarian Republic of
Laboratorios Stiefel Ltda.
Ordinary
Avenida Doutor Timóteo Penteado nº 2289, Box XXIII, Vila Hulda, Guarulhos,
São Paulo 07094-000, Brazil
Laboratorios Wellcome De Portugal Limitada (in
liquidation)
Quota
Rua Dr Antonio Loureiro Borges No 3, Arquiparque, Miraflores, 1495-131,
Alges, Portugal
Maxinutrition Limited (in liquidation)
Ordinary
c/o BDO LLP, 5 Temple Square, Temple Street, Liverpool, L2 5RH
Montrose Fine Chemical Company Ltd. (in liquidation)
Ordinary
c/o BDO LLP, 2 Atlantic Square, 31 York Street, Glasgow, G2 8NJ
PT Glaxo Wellcome Indonesia
Class A;
Class B
JL. Pulobuaran Raya Kav.III/
DD 2,3,4 KWS. Industri, Pulogadung, Jatinegara, Cakung, Jakarta Timur,
Indonesia
Qeparo Acquisition Co
Common Stock
Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808,
United States
Setfirst Limited
Ordinary
79 New Oxford Street, London, WC1A 1DG, United Kingdom
Shanghai GlaxoSmithKline Pharmaceutical Co., Ltd
Ordinary
Room 803, 804, Building A, 5 Shuntong Road, Lingang New Area, China
(Shanghai) Pilot Free Trade Zone, Shanghai, China
Sitari Pharma, Inc.
Common
Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808,
United States
Smith Kline & French Laboratories Limited (in liquidation)
Ordinary
c/o BDO LLP, 5 Temple Square, Temple Street, Liverpool, L2 5RH, United
Kingdom
Smith Kline & French Portuguesa-
Produtos Farmaceuticos, LDA (ii)
Ordinary
Rua Dr Antonio Loureiro Borges No 3, Arquiparque, Miraflores, 1495-131,
Alges, Portugal
SmithKline Beecham (Bangladesh) Private Limited (ii)
Ordinary
House-2/A, Road-138,Gulshan-1, Dhaka, 1212, Bangladesh
SmithKline Beecham (Cork) Limited
Ordinary
12 Riverwalk, Citywest Business Campus, Dublin 24, Ireland
SmithKline Beecham Egypt L.L.C.
Quota
Amoun Street, El Salam City, Cairo, Egypt
SmithKline Beecham Farma, S.A.
Ordinary
Severo Ochoa, 2, Parque Tecnologico de Madrid, Tres Cantos, 28760,
Madrid, Spain
SmithKline Beecham Legacy H Limited
Ordinary
79 New Oxford Street, London, WC1A 1DG, United Kingdom
SmithKline Beecham Limited
Ordinary
79 New Oxford Street, London, WC1A 1DG, United Kingdom
SmithKline Beecham Pension Plan Trustee Limited (ii)
Ordinary
79 New Oxford Street, London, WC1A 1DG, United Kingdom
SmithKline Beecham Pharma GmbH & Co KG
Partnership Capital
Prinzregentenplatz 9, 81675, Munchen, Germany
SmithKline Beecham Pharma Verwaltungs GmbH
Ordinary
Prinzregentenplatz 9, 81675, Munchen, Germany
SmithKline Beecham Pharmaceuticals (Pty) Limited (ii)
Ordinary
Flushing Meadows Building, The Campus, 57 Sloane Street, Bryanston 2021,
South Africa
SmithKline Beecham Senior Executive Pension Plan Trustee
Limited (ii)
Ordinary
79 New Oxford Street, London, WC1A 1DG, United Kingdom
Stiefel GmbH & Co. KG
Partnership Capital
Prinzregentenplatz 9, 81675, Munchen, Germany
Stiefel Laboratories Legacy (Ireland) Limited
Ordinary
Unit 2 Building 2500, Avenue 2000 Cork Airport Business Park, Cork, Ireland
Stiefel Laboratories Pte Limited
Ordinary
1 Pioneer Sector, 628413, Singapore
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Other statutory disclosures continued
334
Name
Security
Registered address
Wholly owned subsidiaries continued
Stiefel Laboratories, Inc.
Common
Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808,
United States
Stiefel Maroc SARL
Ordinary
275 Boulevard Zerktouni, Casablanca, Morocco
Stiefel Research (Australia) Holdings Pty Ltd
Ordinary
Level 4 , 436 Johnston Street , Abbotsford, Victoria, 3067, Australia
Stiefel Research Australia Pty Ltd
Ordinary
Level 4 , 436 Johnston Street , Abbotsford, Victoria, 3067, Australia
Stiefel West Coast LLC
LLC Interests
Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808,
United States
Strebor Inc.
Common
Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808,
United States
Tesaro Bio GmbH (In liquidation)
Ordinary
Poststrasse 6, 6300 Zug, Switzerland
Tesaro Bio Netherlands B.V
Ordinary
Joop Geesinkweg 901, 1114 AB, Amsterdam-Duivendrecht, Netherlands
Tesaro Development, Ltd.
Ordinary
Clarendon House, 2 Church Street, Hamilton HM11, Bermuda
Tesaro, Inc.
Common
Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808,
United States
The Sydney Ross Co. (ii)
Ordinary
Corporation Service Company, Princeton South Corporate Center, Suite 160,
100 Charles Ewing Blvd, Ewing NJ 08628, United States
UCB Pharma Asia Pacific Sdn Bhd (ii)
Ordinary
12th Floor, Menara Symphony, No. 5, Jalan Prof. Khoo Kay Kim, Seksyen 13,
46200 Petaling Jaya, Malaysia
Wellcome Consumer Healthcare Limited (ii)
Ordinary
79 New Oxford Street, London, WC1A 1DG, United Kingdom
Wellcome Limited
Ordinary
79 New Oxford Street, London, WC1A 1DG, United Kingdom
Name
Security
Effective %
Ownership
Registered address
Subsidiaries where the effective interest is less than 100%
Amoun Pharmaceutical Industries Co. S.A.E.
Monetary Shares
90.71%
El Salam City 11491, PO Box 3001, Cairo, Egypt
Biddle Sawyer Limited
Equity
75.00%
252 Dr Annie Besant Road, Mumbai, 400030, India
British Pharma Group Limited (i)
Guarantee
50.00%
79 New Oxford Street, London, WC1A 1DG, United Kingdom
Galvani Bioelectronics Inc.
Common
55.00%
Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808,
United States
Galvani Bioelectronics Limited
A Ordinary;
B Ordinary
55.00%
-
GSK Medicines Research Centre, Gunnels Wood Road, Stevenage, SG1 2NY,
United Kingdom
Glaxo Laboratories (Nigeria) Limited (ii)
Ordinary
99.99%
82 Marine Road, Apapa, Lagos, Nigeria
Glaxo-Allenburys (Nigeria) Limited (ii)
Ordinary
99.00%
41 Creek Road, Apapa, Lagos, PMB 1401, Nigeria
GlaxoSmithKline (Tianjin) Co. Ltd
Ordinary
90.00%
No. 65, the Fifth Avenue, Tai Feng Industrial Park, Tianjin Economic and
Technological Development Area, Tianjin, 300457, China
GlaxoSmithKline Algérie S.P.A.
Ordinary
99.99%
Zone Industrielle Est, Boudouaou, Wilaya de Boumerdes, Algeria
GlaxoSmithKline Consumer Nigeria plc (iv)
Ordinary
46.42%
1 Industrial Avenue, Ilupeju, Ikeja, Lagos, PM B 21218, Nigeria
GlaxoSmithKline Pakistan Limited
Ordinary
82.59%
The Sykes Building, 35 Dockyard Road, West Wharf, Karachi, 74000,
Pakistan
GlaxoSmithKline Pharmaceuticals Limited
Equity
75.00%
252 Dr Annie Besant Road, Mumbai,, 400030, India
GlaxoSmithKline S.A.E.
Ordinary
91.20%
Boomerang Office Building - Land No. 46, Zone (J) -
1st District, Town Center - 5th Tagammoe, New Cairo City, Egypt
Laboratorios ViiV Healthcare, S.L.
Ordinary
78.30%
Severo Ochoa, 2, Parque Tecnologico de Madrid, Tres Cantos, 28760,
Madrid, Spain
Limited Liability Company SmithKline Beecham-
Biomed O.O.O.
Participation Interest
97.00%
Leningradskiy Prospect 37A, Building 4, Floor 2, Premises XIV, Room 42, 1251
67, Moscow, Russian Federation
Modern Pharma Trading Company L.L.C.
Quota
98.24%
Amoun Street, PO Box 3001, El Salam City, Cairo, 11491, Egypt
Stiefel Egypt LLC (ii)
Quota
99.00%
Amoun Street, PO Box 3001, El Salam City, Cairo, 11491, Egypt
ViiV Healthcare (South Africa) (Proprietary)
Limited
Ordinary
78.30%
Flushing Meadows Building, The Campus, 57 Sloane Street, Bryanston 2021,
South Africa
ViiV HealthCare BV
Ordinary
78.30%
Van Asch van, Wijckstraat 55h, 3811 LP Amersfoort, The Netherlands,
Netherlands
ViiV Healthcare Company
Common
78.30%
Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808,
United States
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Other statutory disclosures continued
335
Name
Security
Effective %
Ownership
Registered address
Subsidiaries where the effective interest is less than 100% continued
ViiV Healthcare Finance 2 Limited
Ordinary
78.30%
79 New Oxford Street, London, WC1A 1DG, United Kingdom
ViiV Healthcare Finance Limited
Ordinary;
Redeemable Preference
78.30%
79 New Oxford Street, London, WC1A 1DG, United Kingdom
ViiV Healthcare GmbH
Ordinary
78.30%
Prinzregentenplatz 9, 81675, Munchen, Germany
ViiV Healthcare GmbH
Ordinary
78.30%
Talstrasse 3 , 3053 Muenchenbuchsee, Switzerland
ViiV Healthcare K.K.
Ordinary
78.30%
1-8-1 Akasaka Minato-ku, Tokyo, Japan
ViiV Healthcare Limited
A Ordinary;
B Ordinary;
C Ordinary;
D1 Preference;
D2 Ordinary;
Deferred;
E 5% Cumulative Preference
78.30%
GSK Medicines Research Centre, Gunnels Wood Road, Stevenage, SG1 2NY,
United Kingdom
ViiV Healthcare Pty Ltd
Ordinary
78.30%
Level 4 , 436 Johnston Street , Abbotsford, Victoria, 3067, Australia
ViiV Healthcare Puerto Rico, LLC
LLC Interests
78.30%
CORPORATION SERVICE COMPANY PUERTO RICO INC., c/o RVM
Professional Services, LLC, A4 Reparto Mendoza, Humacao,
Puerto Rico, 00791
ViiV Healthcare S.r.l.
Quota
78.30%
Viale dell’Agricoltura 7, 37135, Verona, Italy
ViiV Healthcare SAS
Ordinary
78.30%
23 rue François Jacob, 92500, Rueil-Malmaison, France
ViiV Healthcare SRL
Ordinary
78.30%
Avenue Fleming 20, 1300 Wavre, Belgium
ViiV Healthcare Trading LLC (ii)
Participation Interest
78.30%
Leningradskiy Prospect 37A, Building 4, Floor 2, Premises XIV, Room 28, 1251
67, Moscow, Russian Federation
ViiV Healthcare Trading Services UK Limited
Ordinary
78.30%
79 New Oxford Street, London, WC1A 1DG, United Kingdom
ViiV Healthcare UK (No.3) Limited
Ordinary
78.30%
GSK Medicines Research Centre, Gunnels Wood Road, Stevenage, SG1 2NY,
United Kingdom
ViiV Healthcare UK (No.4) Limited
Ordinary
78.30%
GSK Medicines Research Centre, Gunnels Wood Road, Stevenage, SG1 2NY,
United Kingdom
ViiV Healthcare UK (No.5) Limited
Ordinary
78.30%
GSK Medicines Research Centre, Gunnels Wood Road, Stevenage, SG1 2NY,
United Kingdom
ViiV Healthcare UK (No.6) Limited
Ordinary
78.30%
GSK Medicines Research Centre, Gunnels Wood Road, Stevenage, SG1 2NY,
United Kingdom
ViiV Healthcare UK (No.7) Limited
Ordinary
78.30%
GSK Medicines Research Centre, Gunnels Wood Road, Stevenage, SG1 2NY,
United Kingdom
ViiV Healthcare UK Limited
Ordinary
78.30%
79 New Oxford Street, London, WC1A 1DG, United Kingdom
ViiV Healthcare ULC
Common
78.30%
3500 855-2nd Street SW, Calgary AB T2P 4J8, Canada
ViiVHIV Healthcare Unipessoal Lda
Quota
78.30%
Rua Dr Antonio Loureiro Borges No 3, Arquiparque, Miraflores, 1495-131,
Alges, Portugal
Winster Pharmaceuticals Limited
Ordinary
46.42%
2A Association Avenue, Ilupeju Industrial Estate, Lagos, PO Box 3199,
Nigeria
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Other statutory disclosures continued
336
Name
Security
Effective %
Ownership
Registered address
Associates
GlaxoSmithKline Landholding Company, Inc
Common
39.93%
23rd Floor, The Finance Centre, 26th Street Corner 9th Avenue,
Bonifacio Global City, Taguig City, 1634, Philippines
Index Ventures Life VI (Jersey) LP
Partnership Interest
(24.94%)
24.94%
44 Esplanade, St Helier, Jersey, JE4 9WG, Channel Islands
Kurma Biofund II FCPR
Partnership Interest
(32.06%)
32.06%
24 rue Royale, 5th Floor, 75008, Paris, France
Longwood Fund I, LP
Partnership Interest
(35%)
35.00%
The Prudential Tower, Suite 1715, 800 Boylston Street, Boston, MA 02199,
United States
Medicxi Ventures I LP
Partnership Interest
(26.10%)
26.10%
44 Esplanade, St Helier, Jersey, JE4 9WG, Channel Islands
Other significant holdings
Alpheus Medical, Inc.
Series A Preference
(13.77%)
Series A-1 Preference
(7.27%)
21.04%
3510 Hopkins Place, North Oakdale, Minnesota 55128, United States
Global Farm S.A.
A Shares (0%)
B Shares (0%)
C Shares (100%) of C
Shares
20% 100%
of C Shares
Mendoza 1259, Ciudad Autónoma de Buenos Aires, Argentina
Longwood Fund II, LP
Partnership Interest
(20.00%)
20.00%
The Prudential Tower, Suite 1715, 800 Boylston Street, Boston, MA 02199,
United States
Sanderling Ventures VII, L.P. A63
Partnership Interest
(25.31%)
25.31%
1300 S. El Camino Real, Suite 203, San Mateo, CA 94402, United States
SR One Capital Fund I-B, LP
Partnership Interest
(44%)
44.00%
Corporation service company, 251 Little Falls Drive, City of Wilmington,
County of New Castle, Delaware 19808, United States
SR One Capital Fund III, LP
Parnership Interest
(43.5%)
43.50%
Corporation service company, 251 Little Falls, Drive, City of Wilmington,
County of New Castle, Delaware 19808, United States
SR One Capital Opportunities Fund I, LP
Partnership Interest
(24.19%)
24.19%
Corporation service company, 251 Little Falls Drive, City of Wilmington,
County of New Castle, Delaware 19808, United States
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Other statutory disclosures continued
337
The following UK registered subsidiaries will take advantage of the audit exemption set out within Section 479A of the Companies
Act 2006 for the period ended 31 December 2024. Unless otherwise stated, the undertakings listed below are owned, either directly
or indirectly, by GSK plc.
Name
Security
Effective %
Ownership
Registered address
Company
Number
UK registered subsidiaries exempted from audit
Burroughs Wellcome International Limited
Ordinary
100.00%
79 New Oxford Street, London, WC1A 1DG, United Kingdom
543757
Domantis Limited
Ordinary
100.00%
GSK Medicines Research Centre, Gunnels Wood Road,
Stevenage SG1 2NY, United Kingdom
3907643
Edinburgh Pharmaceutical Industries Limited (ii)
Ordinary;
Preference;
100.00%
Shewalton Road, Irvine, Ayrshire, KA11 5AP, United Kingdom
SC005534
Eskaylab Limited
Ordinary
100.00%
79 New Oxford Street, London, WC1A 1DG, United Kingdom
99025
Glaxo Wellcome UK Limited
Ordinary
100.00%
79 New Oxford Street, London, WC1A 1DG, United Kingdom
480080
Glaxochem (UK) Unlimited
Ordinary;
Ordinary B;
Ordinary C
100.00%
79 New Oxford Street, London, WC1A 1DG, United Kingdom
4299472
GlaxoSmithKline Intellectual Property (No.3) Limited
Ordinary
100.00%
79 New Oxford Street, London, WC1A 1DG, United Kingdom
11480952
GlaxoSmithKline Intellectual Property (No.4) Limited
Ordinary
100.00%
79 New Oxford Street, London, WC1A 1DG, United Kingdom
11721880
GlaxoSmithKline Intellectual Property (No.5) Limited
Ordinary
100.00%
79 New Oxford Street, London, WC1A 1DG, United Kingdom
11959399
GlaxoSmithKline International Limited
Ordinary
100.00%
79 New Oxford Street, London, WC1A 1DG, United Kingdom
2298366
PHIVCO UK II Limited
Ordinary
78.30%
79 New Oxford Street, London, WC1A 1DG, United Kingdom
6944229
PHIVCO UK Limited
Ordinary
78.30%
79 New Oxford Street, London, WC1A 1DG, United Kingdom
6944223
SmithKline Beecham (Export) Limited
Ordinary
100.00%
79 New Oxford Street, London, WC1A 1DG, United Kingdom
2860752
SmithKline Beecham (H) Limited
Non-cumulative
Non-redeemable;
Ordinary
100.00%
79 New Oxford Street, London, WC1A 1DG, United Kingdom
3296131
SmithKline Beecham (Investments) Limited
Ordinary
100.00%
79 New Oxford Street, London, WC1A 1DG, United Kingdom
302065
SmithKline Beecham Marketing and Technical Services
Limited
Ordinary
100.00%
79 New Oxford Street, London, WC1A 1DG, United Kingdom
494385
SmithKline Beecham Nominees Limited
Ordinary
100.00%
79 New Oxford Street, London, WC1A 1DG, United Kingdom
503868
SmithKline Beecham Overseas Limited
Ordinary
100.00%
79 New Oxford Street, London, WC1A 1DG, United Kingdom
2552828
Stiefel Laboratories (U.K.) Ltd
Ordinary
100.00%
79 New Oxford Street, London, WC1A 1DG, United Kingdom
831160
Tesaro UK Limited
Ordinary
100.00%
79 New Oxford Street, London, WC1A 1DG, United Kingdom
7890847
The Wellcome Foundation Limited
Ordinary
100.00%
79 New Oxford Street, London, WC1A 1DG, United Kingdom
194814
ViiV Healthcare Overseas Limited
Ordinary
78.30%
79 New Oxford Street, London, WC1A 1DG, United Kingdom
7027385
In accordance with Section 479C of the Companies Act 2006, the company will guarantee debts and liabilities of the above UK
subsidiary undertakings. As at 31 December 2024 the total sum of these debts and liabilities is £370 million (2023 – £317 million)
Key
(i)
Directly owned by GSK plc.
(ii)
Dormant entity.
(iii) Tax resident in the UK.
(iv) Consolidated as a subsidiary in accordance with Section 1162 (4)(a) of the Companies Act 2006 on the grounds of dominant influence.
(v)
Exempt from the provisions of Regulations 4-6 of the Partnership (Accounts) Regulation 2008, in accordance with the exemptions noted in Regulation 7 of
that Regulation.
(vi) Incorporated in the Netherlands
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
Other statutory disclosures continued
338
Glossary of terms
Terms used in the Annual Report
US equivalent or brief description
Accelerated capital allowances
Tax allowance in excess of depreciation arising from the purchase of fixed assets that delay
the charging and payment of tax. The equivalent of tax depreciation.
American Depositary Receipt (ADR)
Receipt evidencing title to an ADS. Each GSK ADR represents two Ordinary Shares
American Depositary Shares (ADS)
Listed on the New York Stock Exchange; represents two Ordinary Shares
Basic earnings per share
Basic income per share
Called up share capital
Ordinary Shares, issued and fully paid.
CER growth
Growth at constant exchange rates.
The company
GSK plc
Currency swap
An exchange of two currencies, coupled with a subsequent re-exchange of those currencies,
at agreed exchange rates and dates
Defined benefit plan
Pension plan with specific employee benefits, often called ‘final salary scheme’.
Defined contribution plan
Pension plan with specific contributions and a level of pension dependent upon the growth of
the pension fund.
Derivative financial instrument
A financial instrument that derives its value from the price or rate of some underlying item
Diluted earnings per share
Diluted income per share.
Employee Share Ownership Plan Trusts
Trusts established by the Group to satisfy share-based employee incentive plans
Equity Shareholders’ funds
Shareholders’ equity.
Finance lease
Capital lease.
Freehold
Ownership with absolute rights in perpetuity
The Group
GSK plc and its subsidiary undertakings.
GSK
GSK plc and its subsidiary undertakings.
Hedging
The reduction of risk, normally in relation to foreign currency or interest rate movements, by
making off-setting commitments.
Intangible fixed assets
Assets without physical substance, such as computer software, brands, licences, patents,
know-how and marketing rights purchased from outside parties.
Ordinary share
A fully paid up ordinary share in the capital of the company.
Profit
Income
Profit attributable to shareholders
Net income
Share capital
Ordinary Shares, capital stock or common stock issued and fully paid.
Share option
Stock option.
Share premium account
Additional paid-up capital or paid-in surplus (not distributable).
Shares in issue
The number of shares outstanding.
Subsidiary
An entity in which GSK exercises control.
Treasury share
Treasury stock.
Turnover
Revenue.
UK Corporate Governance Code
As required by the UK Listing Authority, the company has disclosed in the Annual Report how
it has applied the best practice corporate governance provisions of the Financial Reporting
Council’s UK Corporate Governance Code.
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
339
Index
Access
48
Accounting principles and policies
209
Acquisitions and disposals
259
Adjustments reconciling Total profit after tax to operating
cash flows
264
Annual General Meeting 2023
322
Approach to tax
108
Assets held for sale
238
Associates and joint ventures
225
Audit & Risk Committee Report
139
Business model
2
Cash and cash equivalents
238
Cash generation and conversion
102
CEO’s statement
8
Chair’s statement
6
Chair’s Governance statement
119
Climate-related financial disclosure
67
Commitments
254
Continuous engagement and key decisions
125
Consolidated balance sheet
205
Consolidated cash flow statement
207
Consolidated income statement
204
Consolidated statement of changes in equity
206
Consolidated statement of comprehensive income
204
Contingent consideration liabilities
252
Contingent liabilities
253
Corporate governance
112
Corporate Responsibility Committee Report
134
Critical accounting judgements and key sources of
estimation uncertainty
215
Critical accounting policies
110
Demerger of Consumer Healthcare business
262
Directors and senior management
113
Directors’ interests in shares
172
Directors’ report
185
Directors’ statement of responsibilities
188
Dividends
229
Donations to political organisations and political
expenditure
329
Earnings per share
229
Employee costs
223
Employee share schemes
284
Environment
51
Ethical standards
55
Exchange rates
217
Finance expense
225
Finance income
225
Financial calendar 2025
322
Financial instruments and related disclosures
267
Financial performance summary
86
Financial position and resources
103
General Medicines
40
Glossary of terms
339
Goodwill
232
Group companies
330
Group financial review
83
GSK Leadership Team
117
GSK plc (parent company) accounts - UK GAAP
291
Independent Auditor’s report
190
Inventories
237
Investments in associates and joint ventures
235
Investor relations
326
Innovation
3
Key performance indicators
4
Legal proceedings
287
Major restructuring costs
224
Movements in equity
255
Net debt
240
New accounting requirements
217
Nominations & Corporate Governance Committee Report
134
Non-controlling interests
258
Non-controlling interests in ViiV Healthcare
89
Non-Executive Directors’ fees
171
Non-financial and sustainability information statement
80
Notes to the financial statements
208
Operating profit
222
Other intangible assets
233
Other investments
236
Other non-current assets
236
Other non-current liabilities
253
Other operating income/(expense)
221
Other provisions
251
Our culture and people
58
Our external environment
10
Our long-term priorities
3
Pensions and other post-employment benefits
242
Performance
4
Pharmaceutical products and intellectual property
305
Pipeline
301
Post balance sheet events
290
Presentation of the financial statements
292
Principal Group companies
286
Principal risks and uncertainties
307
Property, plant and equipment
230
Reconciliation of net cash flow to movement in net debt
265
Registrar
325
Related party transactions
258
Reliable supply
43
Remuneration Committee Chair's annual statement
146
Remuneration governance
169
Remuneration report
146
Reporting framework
87
Research and development
13
Responsible business
47
Right of use assets
231
Risk management
62
Science Committee report
136
Section 172 statement
128
Share capital and control
319
Share capital and share premium account
255
Share Consolidation
255
Shareholder information
319
Shareholder services and contacts
325
Specialty Medicines
34
Task Force on Climate-related Financial Disclosures
67
Taxation
226
Tax information for shareholders
323
The Board
113
Three-year selected financial data
299
Trade and other payables
239
Trade and other receivables
237
Treasury policies
109
Trust
3
Turnover and segment information
218
US law and regulation
327
Using data responsibly
37
Vaccines
37
Vaccine products and intellectual property
306
Viability statement
81
Strategic report
Corporate governance
Financial statements
Investor information
GSK Annual Report 2024
340
GSK plc was incorporated as GlaxoSmithKline
plc, an English public limited company on
6 December 1999. We were formed by a merger
between Glaxo Wellcome plc and SmithKline
Beecham plc. GSK acquired these two English
companies on 27 December 2000 as part of the
merger arrangements. Effective 15 May 2022
GlaxoSmithKline plc changed its name to
GSK plc. On 18 July 2022, GSK plc separated
its Consumer Healthcare business from the
GSK Group to form Haleon plc, an independent
listed company.
Our shares are listed on the London Stock
Exchange and the New York Stock Exchange.
gsk.com
Brand names appearing in italics throughout this report are trade marks
either owned by and/or licensed to GSK or associated companies.
All other trade marks are the property of their respective owners.
Printed sustainably in the UK by Pureprint, a CarbonNeutral® company
with FSC® chain of custody and an ISO 14001 certified environmental
management system recycling over 99% of all dry waste.
Printed on Life Eco 100 a High white recycled paper and board made
with 100% recycle fibres, FSC certified.
Download PDFs:
– Annual Report 2024
– Form 20-F
– ESG Performance Report 2024
– Full-year and Fourth Quarter 2024 Results
Cautionary statement regarding forward-looking
statements
This document and the Group’s other reports published or
filed with or furnished to the US Securities and Exchange
Commission (SEC), and any other written information
released, or oral statements made, to the public in the
past or 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’, ‘target’ 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, dividend
payments and financial results. Other than in accordance
with its legal or regulatory obligations (including under
the Market Abuse Regulation, 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 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 document, 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 ‘Principal risks and uncertainties’ on
pages 307 to 317 of this 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 and information available to the
Directors on the date of this report.
A number of non-IFRS measures are used to report the
performance of our business. These measures are defined
on pages 88 to 89 and a reconciliation of Core results to
Total results is set out on pages 98 to 100.
The information in this document does not constitute an
offer to sell or an invitation to buy shares in GSK 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 this
Annual Report should be construed as a profit forecast.
Assumptions and basis of preparation related to 2025
Guidance, 2021-26 and 2031 Outlooks
All guidance, outlooks and expectations should be read
together with the guidance and outlooks, assumptions
and cautionary statements in this annual report and the
Group's Q4 2024 earnings release.
In outlining the guidance for 2025 and outlooks for the
period 2021-2026 and for 2031, the Group has made
certain assumptions about the macro-economic
environment, the healthcare sector (including regarding
existing and possible additional governmental legislative
and regulatory reform), the different markets and
competitive landscape in which the Group operates and
the delivery of revenues and financial benefits from its
current portfolio, its development pipeline and
restructuring programmes.
2025 Guidance
These planning assumptions as well as operating profit
and earnings per share guidance and dividend
expectations assume no material interruptions to supply of
the Group’s products, no material mergers, acquisitions or
disposals, no material litigation or investigation costs for
the Company (save for those that are already recognised
or for which provisions have been made) and no change
in the Group’s shareholdings in ViiV Healthcare. The
assumptions also assume no material changes in the
healthcare environment or unexpected significant
changes in pricing or trade policies as a result of
government or competitor action. The 2025 guidance
factors in all divestments and product exits announced to
date.
2021-26 and 2031 Outlooks
The assumptions for GSK’s revenue, Core operating profit,
Core operating margin and cash flow outlooks, 2031
revenue outlook and margin expectations through
dolutegravir loss of exclusivity assume the delivery of
revenues and financial benefits from its current and
development pipeline portfolio of drugs and vaccines
(which have been assessed for this purpose on a risk-
adjusted basis, as described further below); regulatory
approvals of the pipeline portfolio of drugs and vaccines
that underlie these expectations (which have also been
assessed for this purpose on a risk-adjusted basis, as
described further below); no material interruptions to
supply of the Group’s products; successful delivery of the
ongoing and planned integration and restructuring plans;
no material mergers, acquisitions or disposals or other
material business development transactions; no material
litigation or investigation costs for the company (save for
those that are already recognised or for which provisions
have been made) and no change in the shareholdings in
ViiV Healthcare. GSK assumes no premature loss of
exclusivity for key products over the period.
The assumptions for GSK’s revenue, Core operating profit,
Core operating margin and cash flow outlooks, 2031
revenue outlook and margin expectations through
dolutegravir loss of exclusivity also factor in all
divestments and product exits announced to date as well
as material costs for investment in new product launches
and R&D. Risk-adjusted sales includes sales for potential
planned launches which are risk-adjusted based on the
latest internal estimate of the probability of technical and
regulatory success for each asset in development.
Notwithstanding our guidance, outlooks and
expectations, there is still uncertainty as to whether our
assumptions, guidance, outlooks and expectations will be
achieved.
All outlook statements are given on a constant currency
basis and use 2024 average exchange rates as a base
(£1/ $1.28, £1/€1.18, £1/Yen 193). 2021-2026 outlook refers
to the 5 years to 2026 with 2021 as the base year.
Notice regarding limitations on Director Liability under
English Law
Under the UK Companies Act 2006, a safe harbour limits
the liability of Directors in respect of statements in and
omissions from the Directors’ Report (for which see page
185), the Strategic report and the Remuneration report.
Under English law the Directors would be liable to the
company, but not to any third party, if one or more of
these reports contained errors as a result of recklessness
or knowing misstatement or dishonest concealment of a
material fact, but would otherwise not be liable. Pages
134, 190 to 191, and 307 to 338 inclusive comprise the
Directors’ Report, pages 1 to 110 inclusive comprise the
Strategic report and pages 134 to 188 inclusive comprise
the Remuneration report, each of which have been drawn
up and presented in accordance with and in reliance
upon English company law and the liabilities of the
Directors in connection with these reports shall be subject
to the limitations and restrictions provided by such law.
Website
GSK’s website www.gsk.com gives additional information
on the Group. Notwithstanding the references we make in
this Annual Report to GSK’s website, none of the
information made available on the website constitutes
part of this Annual Report or shall be deemed to be
incorporated by reference herein.
About GSK
341
We unite science, technology
and talent to get ahead
of disease together.
Head Office and Registered Office
GSK plc
79 New Oxford Street,
London, WC1A 1DG
United Kingdom
Tel: +44 (0)20 8047 5000
Registered number: 3888792
342