In an update to investors yesterday, British drugmaker GlaxoSmithKline (GSK) pinned its hopes for growth on its vaccine and speciality medicines portfolio as it revealed its plans for the next decade.
GSK revealed the details of its strategy, outlook and growth ahead of the planned split of its consumer healthcare and pharma businesses in mid-2022.
The resulting ‘new’ GSK will be a ‘growth’ company, with a renewed focus on research and development (R&D) performance and activity.
“The benefits of the huge transformation we have driven since 2017 are now clear. We have strengthened our R&D and commercial execution, and transformed our group structure and capital allocation, while driving a profound cultural change with new leadership,” said Emma Walmsley, chief executive officer of GSK.
In particular, GSK will now prioritise R&D and investment in vaccines and speciality medicines, which are expected to grow to around three-quarters of the company’s sales by 2026.
This includes four core therapeutic areas – infectious diseases, HIV, oncology and immunology/respiratory.
The British drugmaker said it will also ‘optimise’ general medicines, with a newly defined product group containing all of new GSK’s primary care brands.
Looking ahead to 2026, GSK is expecting to deliver sales growth and adjusted operating profit growth of more than 5% and more than 10% respectively over the next five-year period.
In addition, by 2031 GSK is hoping to deliver sales of more than £33bn, driven by the commercial execution of the company’s current late-stage pipeline.
“Together, we are now ready to deliver a step-change in growth for New GSK and unlock the value of Consumer Healthcare. With world class capabilities across prevention and treatment of disease, New GSK is exceptionally well positioned to positively impact people’s health and to deliver strong performance and value to shareholders through the decade,” added Walmsley.