GSK Plc Q4 FY2024 earnings call

• Demerger enabled GSK to restructure and invest in growth. 2024 sales grew 8% to over £31 billion, core operating profit up 13%, core EPS up 12%. - Operational delivery: Specialty medicines had double-digit growth in all therapy areas, oncology sales nearly doubled. Vaccines faced U.S. and China pressures. - 2025 expected to have 5 new product approvals, including Blenrep and depemokimab. - R&D had 13 positive Phase 3 readouts in 2024, focusing on 14 scale opportunities with PKS sales potential above £2 billion. - Focus on capital allocation: Prioritize investment in growth and R&D, with a £2 billion share buyback announced.

Specialty Medicines grew 19% in 2024, with oncology sales nearly doubling to over £1.4 billion. Vaccines had sales down 3% due to U.S. and China pressures. HIV sales grew 13%, with Cabenuva and Apretude contributing. General Medicines grew 6% led by Trelegy. Specialty Medicines are expected to be more than 50% of sales by 2031.

• 2025 sales expected to increase 3-5%, core operating profit and EPS 6-8% growth. - Long-term outlook: Specialty Medicines to be over 50% of sales by 2031, 2031 sales target over £40 billion. - 2025 expects 5 new product approvals, including Blenrep with FDA PDUFA in July.

• Vaccines face challenges from external pressures in U.S. and China, potential changes in U.S. vaccination policies. - Competitive pressures in HIV with new entrants like lenacapavir, including issues like injection site reactions and drug-drug interactions.

Q: Emily Field asked about Shingrix in China and HIV competition from lenacapavir.

A: Emma, Luke, and David responded discussing China market dynamics, partnership with Zhifei, and HIV market growth with Apretude and competitive product challenges.

Q: Richard Parkes asked about Arexvy in U.S. commercial environment and peak sales targets.

A: Emma, Luke, and David answered on Arexvy's U.S. market share, commercial strategy, and long-term sales outlook including Blenrep's impact.

Q: Steve Scala asked about Nucala's exacerbation data and U.S. vaccine policy.

A: Tony and Luke responded on Nucala's COPD efficacy, patient population, and U.S. vaccine policy uncertainties.

Q: Peter Welford asked about Arexvy commercial environment and buyback rationale.

A: Emma, Luke, and David discussed Arexvy's market position, value preservation, and buyback as part of capital allocation.

Q: Rajan Sharma asked about HIV channel mix and 2031 guidance.

A: David, Julie, and Emma answered on HIV channel dynamics and 2031 sales target increase due to Blenrep and pipeline progress.

Q: James Gordon asked about leverage and camlipixant's prospects.

A: Emma, Julie, Tony, and Luke responded on leverage comfort, camlipixant's clinical trial design, and potential as a blockbuster product.