GSK (GlaxoSmithKline) Bank of America Global Healthcare Conference 2026

Yeah, whenever Yeah. Might as well.

Yeah, sure. Morning, everybody. I am delighted to be here, and thanks to Sachin for the invitation. We recently did a presentation at the end of July, and the work that led to that was really two major work streams. The first one was all about how could we accelerate growth, how could we accelerate the assets within the company? That was led by Luke, our new CEO, and it was called the Strategic Portfolio Review. On the other side, we were looking at how would we fund the acceleration. So we were determined that it would be a self-funded situation, and we looked at how we could simplify the organization to drive that funding, which resulted in a funding saving of GBP 1.9 billion that we could then put on the right-hand side in terms of Strategic Portfolio Review.

Through that work, we came to the conclusion we wanted to accelerate seven major assets across about 18 indications. Interestingly, there was a big emphasis there on the oncology portfolio and the opportunity that that gave us. So net-net, as I mentioned, it resulted in GBP 1.9 billion of savings. We decided to say the majority of that would be funding the pipeline. But what we also said was there would be an element that would drop through to the margin in the years that people were concerned about, which are the years where we lose the dolutegravir patent in HIV, which is 2028 to 2030. So it gave us the ability to say, through that period, our margin will be stable to improving. So the organization, I think we were really proud of the communication. We were pleased with the reaction to the market.

I can tell you now, when I was in the U.S. last week, working with the team in the U.S., we have got a lot of change going on in the organization. It has caused a level of energy around those projects, together with an energy around how we can simplify further and drive further productivity in the business. I think very importantly, we have built a track record now of being able to do this well. Over the last five years, if you think about the 2021 to 2026 period, we have actually delivered strong top-line growth. More than 7% sales growth is expected. More than 11% profit growth is expected during that period. This is all based on guidance for this year, and together with an improvement in our margin of over 500 basis points, at the same time is taking our R&D spend up significantly.

So we have proven, I think, we can invest significantly in R&D, but still deliver productivity through the P&L.

Consensus is now at 36.4. Not that I count. But it is at 36.4. The biggest deltas, and to my mind, it is quite usual to have a gap sometimes between the company and the sell side. Because typically, and I have done extensive work on this when I was in one of my former companies. I was with AstraZeneca for a long time. Typically, the sell side pick the asset up when it reaches a certain degree of maturity, and it has got certain data behind it. This is quite a pattern. But the largest area, there are puts and takes across. I have got a chart in my mind. There are puts and takes across the board, but the largest area of difference is oncology.

There you have got a difference coming through with the ADC portfolio, MORES and RISRES. We just had fantastic data on RISRES just recently at World Lung. But that is one of the areas of difference. BLENREP is another area of difference. Together with small differences in products like Jemperli, and again, Jemperli, we have got endometrial cancer on the market. We have got rectal cancer just read out, and we have also got colorectal coming, and we have got head and neck coming in 2028. Because of this, the recognition of the indication is not fully accepted until it comes through. I should emphasize, all our forecasts have got PTRS adjustments against them, so probability of technical and regulatory success.

It does. I wouldn't want to go into the specifics because the other difference is you get puts and takes of, say, half a billion across the board. There are elements where the market is a little bit stronger. There are elements. It tends to be the newer products that are a bit slower to recognize. So consensus is a bit slower, for example, with some of the HIV innovation. It's also a bit slower with Excentia.