Menu Investors Corporate reporting Annual Report 2020 Annual Report 2020 This page provides a summary of the progress we made in 2020 against our long-term priorities of Innovation, Performance and Trust, underpinned by a continuing shift in culture. The full Annual Report or individual sections can be downloaded below. Download PDFs of the full report and individual sections GSK at a glance Every day, we help improve the health of millions of people around the world by discovering, developing and manufacturing innovative medicines, vaccines and consumer healthcare products. Our operations span the value chain from identifying, researching, developing and testing ground-breaking discoveries, to regulatory approval, manufacturing and commercialisation. We remained resilient through a challenging year for the world by being agile and maintaining focus on our purpose and strategic long-term priorities. Central to our success are our people: experts in science, technology, regulation, intellectual property and commercialisation. We also collaborate with world-leading experts and form strategic partnerships to complement our existing capabilities. Our purpose and strategy Our purpose is to improve the quality of human life by helping people do more, feel better and live longer. It guides all of our actions and is key to the delivery of our strategy – to bring differentiated, high-quality and needed healthcare products to as many people as possible, preventing and treating disease and keeping people well with our scientific and technical know-how and talented people. Our long-term priorities Our priorities of Innovation, Performance and Trust are underpinned by our ambition to build a more purpose and performance driven culture, aligned to our values – patient focus, transparency, respect and integrity – and expectations – courage, accountability, development and teamwork. Innovation is critical to how we improve health and create financial value. In 2020 Total R&D expenditure was £5.1 billion, which was 15.0% of turnover, and an increase of 12% (AER and CER) from the previous year. On an Adjusted basis, R&D expenditure was £4.6 billion (13.5% of turnover), 6% higher at AER, 7% higher at CER, than in 2019. On a pro-forma basis, Adjusted R&D expenditure grew 6% CER compared with 2019. In Pharmaceuticals and Vaccines, we focus on science related to the immune system, human genetics and advanced technology. In Consumer Healthcare we leverage our scientific expertise and deep consumer insights to create healthcare products that meet consumer demands. As a research-based healthcare company we rely on intellectual property protection to help ensure a reasonable return on our investments so we can continue to research and develop new and innovative medicines. Performance is delivered by investing effectively in our business and our people and executing competitively. Our ability to launch new products successfully and grow sales from our existing portfolio is key to our commercial success. Trust is also critical to our success. We are a responsible company and commit to use our science and technology to address health needs, make our products affordable and available, and be a modern employer. Our 13 public commitments support our Trust priority and cover a broad range of environmental, social and governance (ESG) aspects. The commitments are designed to help us respond to ESG challenges and opportunities within our industry and society more broadly and contribute to many of the UN Sustainable Development Goals particularly Goal 3: ensure healthy lives and promote wellbeing. The value we create By delivering on our purpose, the greatest contribution we make is to improve the health of people around the world. In 2020 that included delivering 2.2 billion packs of medicines, over 580 million vaccine doses and 3.8 billion consumer healthcare products. For our shareholders, as part of our capital allocation framework, we invest in our business to provide shareholder returns. In 2020 we paid a dividend of 80p per share and delivered £5.4 billion of free cash flow. We make a positive contribution to the communities in which we operate. We employ over 94,000 people across 96 countries and work directly with 36,000 suppliers. In 2020 we paid £1.7 billion in corporation tax. We aim to be a modern employer and offer a broad range of employee benefits, including preventative healthcare services, so that we are able to attract and retain the best people. Our long-term priorities We believe GSK’s long-term priorities will create lasting value for our patients, consumers and shareholders. In 2020, despite a very challenging operating environment, we delivered a resilient performance and our strategic objectives remain on track. We invest in scientific and technical excellence to develop and launch a pipeline of new products that meet the needs of our patients, payers and consumers. 2020 objectives Deliver Innovation sales with excellent commercial, R&D and supply chain execution Further accelerate and strengthen pipeline with six potential approvals expected 2020 progress Strong performance from new innovations including Shingrix, Trelegy, Juluca, Dovato and Zejula Nine major regulatory approvals, including in HIV, Oncology and Respiratory Extended indications across portfolio, including for Shingrix, Bexsero, Trelegy Ellipta and Benlysta Accelerated pipeline with nine pivotal study starts and now have over 20 assets in late-stage development Established multiple partnerships to develop COVID-19 solutions including with CureVac to develop next generation mRNA COVID vaccines and Vir Biothechnology for therapeutic antibody treatments Strengthened capabilities with more than 20 business development deals 28 first-market launches for Consumer Healthcare 2021 priority objectives Deliver Innovation sales with excellent commercial, R&D and supply chain execution in Oncology, HIV and Vaccines Accelerate and strengthen pipeline with robust commercial input, including business development RSS Other GSK websites Market website selector GSKPro for healthcare professionals GSK Study Register Quick links COVID-19 response Behind the science About us Products Careers Investors Media Research and development Responsibility Accessibility/legal Accessibility Terms of use Cookie policy Privacy notice Modern Slavery Act statement 2020 PDF - 191.4KB Sitemap Contact us Contact us Partnerships Report a possible side effect Business to business Supplier website Business to business This is our global website, intended for visitors seeking information on GSK’s worldwide business. 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