Q1 2025 GSK PLC Earnings Call
Ladies and gentlemen, a very warm welcome to this GSK Q1 2025 results call.
Constantine: My name is Constantine first new head of IR at GSK and I'm delighted to be joined today by Emma Walmsley, Luke miles and Julie Brown.
Speaker Change: I am pleased to say Deborah Waterhouse <unk> returned this week full time, but David Redfern, Chairman Aviv will be covering HIV today.
Speaker Change: Tony Wood or CSO will also be joining us for Q&A.
Speaker Change: Today's call will last approximately one hour with the presentation, taking around 30 minutes and the remaining time for your questions.
Please ask only 1% to two questions. So that everyone has a chance to participate.
Speaker Change: Before we start please turn to slide three.
Speaker Change: This is the usual safe Harbor statement.
Speaker Change: We will comment on our performance using constant exchange rates or CER, unless otherwise stated.
Emma Walmsley: I will now hand over to Emma on slide four.
Emma Walmsley: Thank you Toms maintained and it's great to have you onboard and welcome to everybody joining us today, Please turn to the next slide.
Emma Walmsley: GSK continues to make strong progress group sales were up 4% this quarter, while operating profit grew 5% and core earnings per share also rise 5% to $44 nine pence.
Emma Walmsley: <unk> was in line with our expectations and again demonstrates the quality strength and resilience of Gsk's portfolio.
Emma Walmsley: Sales growth was driven by specialty medicine is our largest business up 17%.
Emma Walmsley: With strong contributions from respiratory immunology and inflammation oncology and from HIV.
As expected vaccine sales were down 6% in general merchandise sales were broadly stable.
Emma Walmsley: R&D delivery has continued with two out of the five FDA product approvals, we expect in 2025 now secured.
Emma Walmsley: And we completed the acquisition of <unk>, which adds another very promising oncology assets while pipeline.
Emma Walmsley: Cash generated from operations was over 1 billion pounds, providing further funds to invest in growth and to deliver returns to shareholders. Our dividend for the quarter increased 16% and we commenced the 2 billion pound share buyback program announced in February.
Emma Walmsley: Alongside this we are proud to have sustained progress without trust goes and estimate that in the last four years GSK has reached at least 2 billion with our vaccines and medicines, including <unk> Global health work.
Emma Walmsley: Finally, we're confirming the financial guidance previously given for 2025.
Emma Walmsley: Next slide page.
We continue to make good progress on delivering R&D productivity improvements and capture growth opportunities.
Emma Walmsley: As we said at the full year R&D is very focused on delivering the potential of 14 key pipeline opportunities all of which are expected to launch between 2025 and 2031.
Emma Walmsley: And all of which have Pts sales potential of more than 2 billion pounds.
Emma Walmsley: This portfolio demonstrates the strategic shifts we've made to develop more specialty medicines, many of which of our long acting convinced type cat and better adherence to patients.
Emma Walmsley: Along with the recent approvals of <unk> and Blue Jetblue, we continue to expect SBA approvals for new Carla COPD imminently planned ramp in July and <unk> by the end of the year.
Emma Walmsley: Innovation in our pipeline also continues to be recognized we received another breakthrough designation for a novel ADC targeting <unk> and we look forward to sharing more data from our ADC programs later this year.
Emma Walmsley: This quarter, we also presented data from our high potential HIV injectable portfolio, La Croix, including positive data from our third generation entity, which advances our leadership position in the development of long acting agents to treat as well as prevent HIV infection.
Emma Walmsley: Our number one priority for investment remains growth through innovation.
Emma Walmsley: <unk> and R&D and with continued targeted business development, and we're specifically prioritizing investment to key assets and our ini in oncology alongside long acting HIV and call vaccine opportunities.
Emma Walmsley: On a broader investment front. We were also very pleased to break ground on a new state of the art manufacturing facility in Marietta, Pennsylvania. This quarter. This is squarely targeted at increasing manufacturing capacity for new pipeline products in the U S that means that GSK will have six manufacturing sites in America.
Emma Walmsley: Next slide please.
Emma Walmsley: We remain highly confident in our commitment to growth.
Emma Walmsley: There are clearly elevated levels of uncertainty in the macro environment right now, including some possible set to carriage, we start from a position of strength.
Emma Walmsley: Our momentum together with the strength of our portfolio. The resilience, we've built into our supply chain and our proven capability to drive operating leverage I mean, we have the ability and options to navigate and to mitigate this.
Emma Walmsley: This underscores our confidence that 2025 will be another year of profitable growth and why we remain on track to deliver our guidance and our outlooks.
With that I'll hand over to Nick.
Nick: Thanks Ahmad please turn to the next slide.
Speaker Change: Q1, we delivered seven 5 billion pounds of sales up 4% versus last year, demonstrating the resilience of our diverse medicines and vaccines portfolio.
Speaker Change: Then I mentioned <unk> in the quarter was driven by specialty medicines, which continued to more than offset anticipated headwinds in our vaccines business.
Speaker Change: By region growth was driven by Europe up 11% with the U S up 4% impacted by Chad.
Speaker Change: Challenging comparative base and the introduction of the IRI, which as previously stated we anticipate to be 400 to 500 million pounds headwind throughout the year next slide please.
Speaker Change: Specialty medicines continued its excellent momentum growing 17% in Q1 with strong performances across all therapy areas. In addition, three of the five product approvals. We expect this year in specialty medicines.
Thanks, Len Rep, New-collar in COPD and debit market.
Speaker Change: I'll talk about them shortly.
Speaker Change: Our NII was up 28% in the quarter and within that business to our treatment to Lucas for 39% and.
Speaker Change: And you Carla anti IL five biologic treatment grew 21%.
Speaker Change: Both of these benefiting from strong demand as well as the comparator.
Speaker Change: Which saw U S channel or channel inventory reductions in Q1 last year, a bit of which will not repeat in the remainder of the year.
Speaker Change: And oncology Q1 sales were up 53%, which sells a gym poorly and our job more than doubling.
Speaker Change: Jim probably the only immuno oncology treatments shown overall survival benefit and the mutual cancer.
Speaker Change: <unk> to say increased patient uptake in the U S and Europe.
Speaker Change: Following all count as approval for primary and advanced or recurrent endometrial cancer.
Speaker Change: And John ourselves were driven by higher volumes and strong uptake following the new market launches in Europe and international.
Speaker Change: In.
Speaker Change: This market expansion continued in Q1 with launches in Spain and Italy.
Speaker Change: We expect.
Speaker Change: Very strong momentum in our specialty medicines portfolio to continue and reconfirm 2025 sales guidance of low double digit percent increase next one please.
Speaker Change: Innovation is a priority and we've got three exciting approvals expected in specialty medicines. This year <unk> was approved in the U K earlier this month and has the FDA <unk> date in July.
Speaker Change: With a projected overall survival benefit of 33 months and train seven.
Speaker Change: Compared to standard of care manageable safety profile and low treatment burden feedback from physicians is that blend could redefine second line multiple myeloma trigger.
Speaker Change: Dose interruptions enable in the managed <unk> and it's an immediate 30 minute infusion administered in a community setting, which is where 70% of the patients treated in the U S.
Speaker Change: <unk> been very thoughtful about the launch.
Speaker Change: Which as I said in the past will be staged.
Speaker Change: Work hand in hand, with individual physicians and patients to ensure it does management is understood and the ophthalmic support network is implex laying this groundwork will help firmly establish <unk> in the second line multiple myeloma market and demonstrate the benefits of this transformative medicine.
Speaker Change: Turning to restructuring.
Speaker Change: GSK has been a leader in the prevention and treatment of respiratory disease for more than five decades. In 2015, we launched you call. The severe asthma. The first monoclonal antibody to target oil five.
Speaker Change: Next week, we're expecting FDA approval for a major new indications new call to treat COPD.
Speaker Change: Thirdly cause of death worldwide affecting more than 300 million people globally, and we've got a experienced group force in place and original launch and we expect that the full to show the full phase III Patnaik.
The <unk> trial results very soon including data on the reduction of most serious exacerbations, which lead to hospital presentations, which are known to be the strongest indicator of disease progression and death.
Speaker Change: Also in respiratory is debit market.
Speaker Change: Exciting new anti IL five medicine with six month dosing, which is being filed in all major markets for approval in both severe asthma and chronic lines saw the scrutinize pulps.
Speaker Change: The U S FDA decision expected towards the end of the year.
Speaker Change: In a pooled analysis of the Swift pivotal studies in asthma with type two inflammation characterized by blood eosinophil count dental market Mab demonstrated a 72% reduction in exacerbations, requiring hospitalization and feedback from the community on these data have been very positive and.
Speaker Change: Paul Pulmonologists, 86% and <unk> could become a new standard that Ken and 82% said they would consider prescribing <unk> come up ahead of alternative biologics. So this is this is clearly a significant opportunity to increase the uptake you bind it naive patients.
Speaker Change: Given rates and ASP I remain low we estimate that <unk> around 21% of eligible asthma patients currently receive a biologic.
Speaker Change: With patients potentially benefiting from increased adherence from AG twice yearly dosing schedule and we anticipate that the market will also capture share from short acting alternatives.
Speaker Change: Underpins our confidence in <unk> multi billion pound <unk>.
Speaker Change: Sales potential.
David: Now hand over to David HIV. Thank.
Speaker Change: Thank you Luke.
Speaker Change: <unk> continued to deliver strong growth and momentum in HIV treatment and prevention.
Speaker Change: Sales growing 7% driven by competitive execution and strong patient demand for our industry, leading innovative portfolio and <unk> cabinet and opportunities.
Speaker Change: All with gold standard integrates inhibitors of the call.
Speaker Change: In the U S. We saw strong double digit volume growth driven by long acting <unk>.
Speaker Change: Partially offset by some impact from the implementation of the IRI and from channel mix.
Speaker Change: A leading oral two drug regimen <unk> continued to grow strongly in all regions at 19%.
Speaker Change: While our long acting injectables cabin to Uva, and <unk> grew 38% and 63% respectively.
Speaker Change: We remain delighted with the strong and continued momentum of our long acting portfolio.
Speaker Change: <unk> is the first and only approved long acting injectable regimen for the treatment of HIV with 77000 patients globally now benefiting from this transformative medicine.
Speaker Change: We share data Croix conference in March demonstrating <unk> as high long term effectiveness and real World studies and trading almost 15000 people living with HIV.
Speaker Change: These data underlying the high patient preference and treatment satisfaction for cabin mover compared to daily pills.
Speaker Change: At pursuit.
Speaker Change: First and only approved long acting option for HIV prevention.
Speaker Change: Now benefiting 'twenty 1000 individuals in the U S.
Speaker Change: We remain confident in our competitive profile and growth of opportunities with strong efficacy.
Speaker Change: More than 99% safety.
Speaker Change: Safety and importantly, overall tolerability across broad populations.
Speaker Change: Ah Croix realization implementation study data showing very rare cases of HIV acquisition.
Speaker Change: As well as high persistence addressing inherent challenges someplace with oral <unk>.
Speaker Change: The potential for the long acting market remains significant.
Speaker Change: With the total HIV market today with more than 22 billion pounds.
Speaker Change: Treatment accounting for 90% of this.
Speaker Change: We expect the use of long acting Injectables for continued to rise significantly through strong patient demand physician belief and the unique benefits and increased infrastructure to support their administration.
Speaker Change: Given the strong start to the year, we remain confident in our 2025 guidance of mid single digit percentage growth driven by strong volume growth, partly offset by pricing dynamic through the IRI and channel mix.
Speaker Change: Next slide please.
Speaker Change: At Croix, we said exciting data highlighting a great HIV pipeline progress, including three high potential assets in all treatment pipeline.
Speaker Change: Delivering the best resistance profile of any fee. We've seen to date, we were delighted with the phase Iia data for all third generation in state VH 184.
Speaker Change: Results demonstrated rapid and high potency positive safety results and no drug resistant mutations.
Speaker Change: This promising early data supports further development of <unk> four as the backbone of our next generation of HIV treatment regimens with IP cover through to 2039.
Speaker Change: We also shared phase III data, showing up being up and fix or less achieved high efficacy and tolerability.
Speaker Change: These results combined with pharma kinetic data support progressing this asset to explore six monthly dosing.
Speaker Change: We look forward thing Q six and data in the next phase of this study.
Speaker Change: Moving on to ph for 99, our investigational capsid inhibitor.
Speaker Change: Data from our Phase Iia studies also showed potent antiviral activity and favorable safety.
Again supporting further development of this asset.
Speaker Change: With multiple data Readouts, we remain on track to confirm the assets that will deliver six monthly dosing for treatment in 2026 with our key six am Registrational studies planned in 2027.
Speaker Change: As you can see on the slide we expect our Q six M regimen to contain a combination of one of three long acting and Steve copyright law ph 184, <unk> 310.
Speaker Change: With either our peanut and fix or less of VH for 99, our capsid inhibitor.
Speaker Change: And then turning to Q4 and <unk>.
Speaker Change: Bridging study is fully recruited we expect data in mid 2026.
Speaker Change: We anticipate starting our Q4 Im treatments Registrational study by the end of this year.
Speaker Change: As pioneers in long acting Injectables, we are focused on the next generation of HIV innovation with integrates inhibitors. The gold standard for HIV treatment and prevention at the core.
Speaker Change: We remain confident that our pipeline, including three new in season development and five planned launches will continue to drive performance over the coming decade.
Speaker Change: And we will share more at our meet the management event in Q2 2026.
Luke Miles: With that I will hand back to Luke.
Luke Miles: Thanks, David.
Luke Miles: Turning to vaccines south of Q1 with over 2 billion pounds down 6% on last year in line with expectations <unk> sales declined 7% with growth in Europe, partially offsetting lower sales in the U S and international as anticipated the pace of penetration in the U S. A slide with cumulative immunization right.
Luke Miles: Reaching 41% at the end of 2024.
Luke Miles: Sales in international was impacted by the annualized <unk> of rapid uptake from our National Immunization program in Australia in quarter, one 2024, and the agreed laws supply to a co promotion partner in China.
Luke Miles: In Europe strong growth was driven by the excellent launch in France, and good performances in other European markets, including Spain, and therefore.
Luke Miles: Italy and Greece.
Luke Miles: <unk> is now launched in 54 markets with recommendations and more than 40 markets and national reimbursed based on programs and 24 gross outside the U S. This year will be supported by expanded funding the launch in France, and our new Japanese national subsidy for shingles vaccination, the average utilization right across the top.
Luke Miles: Tim markets outside the U S is now around 8%. So there's still a significant opportunity fishing rigs ahead and meningitis portfolio was up 20% in Q1 with strong double digit growth across Europe, and international primarily driven by Tech Sara.
Luke Miles: In February we received USDA approval of our new pentavalent vaccine and Mindy.
Luke Miles: We're pleased to also have received a unanimous recommendation from the advisory committee on immunization practices or a shift to the CEC and in time, we expect this vaccine to simplify immunization schedules, increasing coverage and protection against a serious life threatening illness.
Luke Miles: Turning to RSV or actually sales were down 57% in the quarter I guess, the challenging comparator and the impact of restricted ACF recommendations. However are actually continues to be the U S market leader retained 55% of the all the active adult vaccination sure two weeks ago.
Luke Miles: But if unanimously to recommend at a $50 to 59 at an increased risk to receive an RSV vaccine.
Luke Miles: We welcome the spend recommendation, which opens up access to a cohort of around 30 million people in the U S. Although in the current vaccines environment. We don't expect a significant upside this year in this market will take time to build.
Luke Miles: But we remain confident in the long term importance of this vaccine.
Luke Miles: We also presented a 36 months immune response data from zero or a full study and the data provided evidence to support future re vaccination with <unk> underpinning our strong belief that a re vaccination will be required with our base case at five years. We also expect more data on this in 2026.
Luke Miles: Outside of the U S. Our ratio is loss in data center markets with recommendations and 18 of these markets and national reimbursement programs and six with more to come although its pre season. We are seeing some early access momentum outside the U S and particularly in Germany, following a recommendation and reimbursed.
Luke Miles: As expected established vaccine sales were impacted by non repeating prior yourselves, partially offset by high U S demand for our measles mumps rubella vaccine.
Luke Miles: Overall, we continue to expect vaccine sales to decrease low single digit percent in 2025, while remaining confident in the medium to long term prospects of this business and pipeline next slide please.
Luke Miles: Turning to general merch respiratory sales were up 1% driven by trilogy, which is up 15%, which benefited from our continued patient demand should cost growth and increased market share.
Luke Miles: <unk> the number one brand in aspirin COPD worldwide and is the cornerstone of our COPD treatment portfolio and is soon to be complemented by our new biologics that are on that and add on to <unk>. The standard of care cementing our leadership in the COPD space and reflecting our long legacy of leadership and restrict treehouse.
Luke Miles: Overall general Medicine sales were stable in the quarter with other general minutes is down around 3% owing to continued generic competition as expected.
Luke Miles: In March we received FDA approval for a new.
Luke Miles: Water treatment and <unk>.
Luke Miles: Complicated urinary tract infections, we're on track to launch in the second half we will focus on building access on a time later this year, we'll be showing a regulatory decision for the second indication in your genital gonorrhea and we plan to build on our anti infectives portfolio in the coming years overall for the gym mitts portfolio we continue.
Luke Miles: To anticipate sales to be broadly stable in 2025, I'll now hand over to Julian.
Thank you Mike and good afternoon, everyone next slide please.
Julian: Starting with the income statement for the Coosa and with great. Thanks. Thank you didn't see.
Julian: GSK is starting 2025, well carrying momentum from 2024 with sales increasing 4% include operating profit growing 5% against a very strong comparison base.
Julian: Two 5% growth last year sales benefited from the continued strength of specialty up 17%.
Julian: Offsetting the expected decline in vaccines.
Julian: Volume growth more than offset price you mention stemming from the Medicare part D redesign implemented at the start of the year.
Julian: And as Luc mentioned the impact of this to the first quarter was in line with our expectations.
Julian: Turning to the income statement, we have delivered another quarter of operating leverage.
Julian: Gross profit benefited from product mix as the portfolio continues to transition towards higher margin specialty medicines.
Julian: SG&A increased 8% year on year, but 4% excluding does as you let royalty credit last year.
Julian: And Royal sequence was up 21% driven by prior to ups.
Julian: These factors are supported the delivery of 5% operating profit and EPS growth.
Julian: 8% operating profit growth.
Julian: Excluding this issue the credit.
Julian: Turning to the <unk> results the significant growth in operating profit predominantly resulted from Lois CCL charges compared to last year and foreign currency movements.
Julian: Next slide please.
Julian: This chart illustrates the substantial margin progression, we have continued to deliver on an underlying basis.
Driven by benefits from the transition to specialty medicines as well as our ongoing disciplined returns based approach to investment core operating margin and please get this three 5% up 130 bps, excluding the prior year's as Unicredit.
Julian: 30 bps year on year in central.
Julian: Accretion was driven by mix as gross margin benefited from the strong growth of higher margin specialty medicines, including one off benefits from new collar and Benlysta comparative basis.
Julian: Mentioned.
Julian: We continue to invest in our key products, including <unk> <unk> and as you are at.
Julian: With underlying SG&A rising broadly in line with sales and for the full year, we expect SG&A to grow low single digits as we allocate resources to support our launches over the coming 12 months R&D relaunch and labeling sales this quarter and is expected to accelerate as we progress through 2020.
Julian: Driven by investments in our next wave of key specialty pipeline assets.
Julian: Next slide please.
Julian: Turning to cash flow and with commentary before the one off impact zone type payments.
Julian: Cash generated from operations was $1 4 billion.
<unk> and proof point to the $1 billion, reflecting higher operating profits and favorable movements in our ADR, partially offset by adverse movements in receivables driven by higher <unk> unchanged collection. This last year.
Julian: Free cash flow improved by sizes 1 billion, excluding zantac supported by favorable Capex comparison that included up from BD payments last year to homestead.
Julian: Does that affect payments this quarter totaled $62 million and we now expect $1 2 billion of payments to be phased over the remainder of 2025 with Pfizer's billion expected in Q2 next slide please.
Julian: During the quarter, we've continued to deploy cash in line with our capital allocation framework, whilst ensuring this remains underpinned by a strong balance sheet.
Julian: Free cash generation pre Capex was that the 1 billion pounds, we supported investments in our oncology pipeline through the <unk>.
Julian: Just as an idea Rx as Andrew mentioned in EMEA.
Julian: And our continuing commitment to shareholder returns we have returned as a percentage of the 1 billion to shareholders through the dividend on the buyback, where we completed close to the 1 billion pounds in Q1.
Julian: We remain committed to investing for growth and providing attractive and growing shareholder returns next slide please.
Julian: We're very pleased with the business performance, which is outlined was driven by strong growth of key products and higher than anticipated royalties.
Julian: These results reinforce our confidence in the delivery of our full year 2020 guidance.
Julian: 3% to 5% sales growth and 6% to 8% operating profit and EPS growth.
Julian: Royalty income for the year is now expected to be higher than previously guided at 750 to 800 million, including an IP settlement relating to RSV agreed to in April.
Julian: Comprising an upfront to be credited in Q2 and the future royalty stream.
Julian: This additional income will be reinvested in the pipeline. This year with R&D investment growth is now expected to be slightly ahead of sales.
Julian: In terms of phasing, we continue to expect profit growth to be second half weighted, albeit to a lesser extent than previously anticipated with Q2 now benefiting from the IP settlement.
Julian: More details around phasing and the modeling assumptions all contained within the appendix.
Julian: Looking beyond we remain confident in our medium and longer term outlook to 2026 and 31.
Speaker Change: Sure parents the imposed as Emil mentioned, we are well prepared and start from a position of strength.
Speaker Change: We have identified potential mitigating options in supply chain and increase productivity initiatives and.
Speaker Change: And we remain committed to sustained investment in our pipeline and launches next slide please.
Speaker Change: Turning to our road map on the <unk> positive phase III Readouts last year GSK is kind of a pipeline momentum into Q1.
Speaker Change: With two new U S approvals as highlighted.
Speaker Change: Looking ahead, we expect three more payables, then you call as COPD flora and depth and then come out this year with <unk> days in May July and December respectively.
Speaker Change: We expect all three to be important growth drivers for GSK.
Speaker Change: And over the next two years, we expect this momentum to continue as our pipeline delivers new growth drivers and we look forward to <unk> phase III pivotal study readouts.
Speaker Change: And mysteriously hepatitis.
Speaker Change: Acting HIV and oncology.
Emma Walmsley: And with that I will hand back to Emma for her closing remarks. Thanks, Julie So to summarize GSK is delivering with a good start to the year.
Emma Walmsley: Momentum in our portfolio is supporting our ability to continue to deliver a mix improvement operating leverage and cash flow.
Emma Walmsley: Finally, environmental uncertainty, we continue to expect 2025 to be another year of profitable growth and we remain very focused on investing in the pipeline targeted business development and successful launches to fuel further growth to achieve our potential anvil, but patients shareholders and all key.
Emma Walmsley: Thank you very much and with that we will now open up the call to Q&A with the team.
Emma Walmsley: Thank you.
Emma Walmsley: So I'll ask a question please click the race and feature that'd be nice.
Emma Walmsley: Controls.
Emma Walmsley: Online on your phone the ratio had.
Emma Walmsley: We published the onion, which yourself to state your question.
Speaker Change: Now on the first question first question comes from James Gordon from JP Morgan.
Speaker Change: Go ahead.
Speaker Change: Thanks, James Gordon Jpmorgan, Thanks for taking two questions.
Speaker Change: First question would be new launch expectations say, two important approval decisions coming up and you call. The CFPB may seven.
So that's what he said.
Speaker Change: So assuming things are still operating as normal with FDA and you get some approvals what are your latest thoughts in terms of how those launches go.
Speaker Change: Are the gating factors in best precedent as to how they go it could we see strong uptake already in H, two or more 2026 stories.
Speaker Change: I think the blend rate could also let folks with education around that or other things you need to do around the.
Barry: Barry it's with Bose George of <unk>.
Speaker Change: <unk> <unk> COPD the precedent.
Speaker Change: That's the first question. Please the second question was on tariffs. So I heard the comments will be well positioned.
Speaker Change: And also that there could be some mitigating options and productivity offsets.
Speaker Change: Can you elaborate like what would the impact be let's say, it's a 25% tariff and bringing product from outside the U S entity into the U S.
Speaker Change: What was the impact beyond GSK, how quickly could you have these offsets productivity benefits.
Would it be that you would actually move U S manufacturing or something else is there with like an inventory of all the cushion is that what you can be referring to.
Speaker Change: [laughter].
Speaker Change: Alright, and Thats quite a lot in there, but let's start with what matters, most which is the exciting new launches with bringing in.
Speaker Change: Across that portfolio.
Speaker Change: I'd like to kick up there and then I'll go back on track.
John: Thanks, John.
Speaker Change: I'll cover an order and Tony jump in.
Tony Wood: If I Miss anything I'll go through a new call for us.
Speaker Change: I think I'll touch on the NIM, because we'll get questions on that debt.
Speaker Change: <unk> come out of that blend wine capably, Jeff because I covered that in the intra.
Jeff: Thanks Rod.
Speaker Change: First with <unk>.
Speaker Change: Carla COPD, Yes, my seventh Paducah is on track.
Data is going to be published soon.
Speaker Change: I was wondering if you can what I can say, but in big picture terms.
Speaker Change: So it's apples to apples comparison.
Tony Wood: JP I think we're very competitive.
We also had a wide spectrum of patients to entertain combined that same year and chronic bronchitis.
Tony Wood: Patients in then.
Tony Wood: Chronic bronchitis items as well so from a physician point of view that's.
Tony Wood: That is very appealing because it can be difficult to stratify. These patients at a time.
Tony Wood: Similar to their practice.
Tony Wood: Potent saying when the results.
Tony Wood: Released.
Tony Wood: The trial was designed to look at hospitalization and emergency Department visits, which the GP studies didn't.
Tony Wood: In a protocol design. So that's an important measure when you when you look at Pulmonologists in what I consider to be critical when theyre employing a biologic in this in these refractory patients. If you look at market research, it's very supportive and that has grown at a time.
Tony Wood: 83% of pulling all of those when we showed them the profile of the product are very motivated to use.
Tony Wood: Use new-collar in COPD I would count of this with.
Tony Wood: I'm going to let just generally are pretty conservative in the usage of biologics I said earlier around 21%, So I think that.
Tony Wood: That needs to begin in terms of your ramp factored in.
Tony Wood: The other thing.
Tony Wood: That of course being second we're looking very very closely.
Tony Wood: Access is it use of baseline people are using it. So I think we're very much looking forward to the launch we've had a whole successful series of.
Tony Wood: Indications of expansion, but you call us.
Tony Wood: Capacity at doing this as I think we've got a good track record. So we're looking forward to having fun with competing against Sanofi that incentive mandate.
Tony Wood: Yes sure.
Tony Wood: Additional point to stress to the study and as I say, we're looking forward to presenting that data very soon now important to recognize that in the study was conducted over a two year period that is critical for NCS, whose survival rates of five guys is only 50% yes.
Tony Wood: And I think 11% mortality rate if you are.
Tony Wood: That is why when we do the surveys with physicians I saw hospitalizations as a key parameter.
Tony Wood: In terms of <unk>, So that's all kinds of Ireland.
Tony Wood: Join us.
Tony Wood: A vaccine.
Speaker Change: We've got a very strong position as a global leader in meningitis.
Tony Wood: And with with banks thereof.
Being back, saying, we get about 75% market share in the U S.
Tony Wood: That's really driven by its 110, starting coverage and is really perceived to be the stronger of the two.
Speaker Change: B vaccine, that's important because when you deploy or use.
Speaker Change: Paint to dial it back, saying that youre not going to use with the subsequent be follow up that I'll explain a limited.
Speaker Change: Is the payback, saying that was embedded in that tend to buy up which we believe gives us a good position.
Speaker Change: Sorry, we have.
Speaker Change: Past the first two steps so FDA approval and then the Islip recommendation on April <unk>. The schedule. That's signed off is the same as pfizer's and I mean, it is more complex and signaled that they intend to evolve this which I'll come back to in a minute.
Basically if you look at the numbers today.
Speaker Change: First Shaw is with ITW, why which is stipulated as a routine vaccine by <unk> in the U S. So about 90% of cases in the U S actually get that back.
Speaker Change: And when you when you get to progress 2016 to 18 years about adolescence.
Speaker Change: Is that they should have a CW was a routine and today about 60% of those kids get that vaccines are quite a big drop off.
Speaker Change: Now the physician at that point based on shared clinical decision, making.
Speaker Change: Ken.
Speaker Change: Yeah.
Speaker Change: Can you be sure.
Speaker Change: And around 32% of kids get that shot in the U S. And then there's a subsequent follow up second booster shot with with meningitis B.
Speaker Change: Only about 13 battery Senate adolescence or children in the U S get that one so quite a substantial drop off from 90% down to 13%.
Speaker Change: The fact that these are very.
Speaker Change: He is very challenging and potentially lethal strength.
Speaker Change: <unk> signed.
Speaker Change: The other day well instead.
Speaker Change: Instead of that ITW y B combo.
And after that initial acw, why Shaw using shape clinical decision, making the pet nutrition.
Speaker Change: The use of penta appendant vaccine and lending.
Speaker Change: And then follow that up with the bank.
Speaker Change: Confused at this point.
Speaker Change: And then again a lot of great nutritionals that computers, they have to stop for vaccines.
Speaker Change: <unk> indicated where they want to go.
Speaker Change: And that's the third step, it's a simpler regime, where basically it would be a CW. One initially thought the pinta and then be follow up would be risk and that's an important shift because with risk based.
Speaker Change: Imports are brought to us.
Speaker Change: It enables physicians to look specifically at interface should be back to that so for example, an 18 year old going off to college would be a classic there.
Speaker Change: And it's an opportunity for us to expand coverage.
Speaker Change: <unk>.
Speaker Change: The initial launch now with Penn Mindy will be relatively.
Speaker Change: Small because of this change.
Speaker Change: Change that pediatricians are tired of waiting for.
Speaker Change: As I said the signal that that we'll look at that in October early next year, so hopefully that cover that and probably about <unk>.
Speaker Change: Third one anything on that one.
So diplomatic about very very exciting I think the more that this product is protocol I remember we can't promote these products, but not approved physicians get access to the data for academic Congress or there's publications et cetera and.
Speaker Change: Again, I think the main problem. When you look at biologics is just a lack of penetration despite excellent insurance coverage.
Speaker Change: Really bought into these patients in terms of severe disease exacerbations hospitalization, but still as I said earlier on a 21% of patients get a biologic.
Speaker Change: And what's interesting is if they do get a biologic about 65% of them.
Speaker Change: Cross biologics discontinue in the first 12 months.
Speaker Change: To me, that's very very attractive for an effective long acting in our two shots a year, which really reduces patient burden. It gives the physician call for us if the patient has coverage.
Speaker Change: And the shop will be in the U S. Given within the clinic. So that physician has total control of efficacy in that patient.
Speaker Change: When we look at market research continues to strengthen.
Speaker Change: So if you think this is a great test if we ask actually pays in Europe, and the U S and the U S, 45% to digest, it and buy it bio naive immediately around 54% in Europe.
Speaker Change: Again, that's without education promotion et cetera.
Speaker Change: And then 66% of them.
Speaker Change: U S and Asia would consider switching established patients on.
Speaker Change: On politics across two different moniker map and then when we look at patients six out of 10 patients say, that's clearly Asia for them in terms of versus every two weeks at the head with your pillow map right now.
Speaker Change: Going to twice a year and nine out of 10 says I switch if they adopt the recommended it.
Sorry.
Speaker Change: And I think we've got a.
Speaker Change: Evolving very very competitive product here.
Speaker Change: We have established success in severe asthma. The target is well known the protocol is established.
Speaker Change: I think that one we should say.
Speaker Change: Encouraging launch in about.
Speaker Change: Yes, I mean in terms of the sources of patients.
Speaker Change: We'll get about we're talking about half of them, that's where you want to target initially is to get naive patients who don't have obviously complicated history on the product, but again I think the difference the other 50% some will come from you call out some will come from other products.
Speaker Change: And then finally anything on that one tiny tacos.
Speaker Change: Let me I'll blend.
Speaker Change: And then again on track.
Speaker Change: Terms of the July approval date.
Speaker Change: The Dream seven data I think is when we look at market research is incredibly compelling.
Speaker Change: I think one note of caution when you do see other surveys.
Speaker Change: We're not out there promoting the product yet so we're limited obviously on what we can do it would be on publications and presentations.
Speaker Change: Clearly I think that the progression of <unk> into the first line opens up a big opportunity for <unk> in the second line.
Speaker Change: But some cautious in terms of how we introduce it because if you look at the options that they have in second life right now, particularly to a community based oncologists.
Speaker Change: Alcohol, who treat 70% of these patients and clearly want to retain these patients in their practice for as long as they can.
Speaker Change: That really is a compelling option they are not really saying car T as an option.
Speaker Change: In the community because of the complexity of coffee I think is kind of teens adults.
Speaker Change: Different risk profile continues to become more complex. If you look at bi specifics then again in very rigorous induction process hospital admissions complicated dosing.
Speaker Change: On a frequent dosing and I think what's increasingly emerging is this infection risk, which right now when we look at market research.
Speaker Change: It seemed like community based payments under representing that versus what the data has been published so far so I think as I start to use those products and get experience with them that will they increase in contrast with blend wrap we've got a very very well known benefit risk profile of 7000 patients paying of spiced clearly we know the focus needs to be on <unk>.
Speaker Change: <unk>, the ocular side effects, which are reversible, but I think the stats training back if you wanted to cover that in terms of just how many placements.
Speaker Change: Impacted how can you reverse that makes really give some color on that.
Speaker Change: Hey, Joel just on some days and before I get into that a reminder, for everyone that we have a 42%.
Speaker Change: Section in risk of death from the Dream <unk> studied that is a projected 33 months.
Speaker Change: <unk> then just to quickly cover the numbers on the.
Speaker Change: Okay the side effects.
Speaker Change: 66% of the individuals on the dream certain study.
Speaker Change: No vision changes, 32% had the vision, but that was only 11% of the total time on treatment and only 2% had serious effects, which are all with us.
Speaker Change: Alright, we're busy yeah. So I think you know.
Speaker Change: So the headline level James is all important launches with meaningful data for patients and prescribers and I think we are cautious in terms of materiality of contribution. This year makes often described the launches go slow to go very big.
Speaker Change: And we know that.
Speaker Change: Whether it be that we're in.
Speaker Change: And our ongoing emergence of oncology or indeed in respiratory is a very material contributor to the next chapter of growth.
Speaker Change: 26, and 26% to one quickly on tariffs.
Speaker Change: Nope.
Speaker Change: A huge amount to what's already been said, especially what's in our guidance for this year is obviously the tariffs that's already been announced but I would refer you to our press release, where we have very specific.
Speaker Change:
Speaker Change: The face of potential sector specific tariffs and we obviously.
Speaker Change: I have been very vocal.
Speaker Change: Just on the preparation and a lot of detail and we look carefully.
Speaker Change: That's all the.
Speaker Change: C III to.
Speaker Change: Yes.
We have multiple levers and we say we have multiple levers at our disposal to navigate and mitigate this and the three main ways. We think about this festival already through the enormous amounts of deliberate work.
Speaker Change: Was done through the separation to create regionally resilience.
Speaker Change: Pi chains.
Speaker Change:
Speaker Change: It's good to see as I said us break ground on the six manufacturing site in most of our U S products in some way touch the U S. Our supply chain as well and we have dual sourcing and when we look across other regions, obviously with the lights and secondly, with the shift in the gross margin.
Speaker Change: Oh more St products, and then thirdly, it's about delivery.
Speaker Change: Delivering Alex accelerating already identified.
Speaker Change: Productivity improvements.
Speaker Change: Across various areas in the P&L.
Speaker Change: Definitely believe we have.
Speaker Change: Uh huh.
Speaker Change: Ciena.
Speaker Change: So yeah.
Speaker Change: We are prepared we have lots of agility and detailed underpinning this and we think we can.
Speaker Change: Navigator in Mexico in the interest of patients and GSK shareholders.
Speaker Change:
Speaker Change: Oh reaffirmation of Opex next question. Please I think we've covered an enormous amount from the launches already which made sure.
Speaker Change: Next question comes from Kerry Holford from <unk>. Please go ahead.
Kerry Holford: So very much a couple for me please firstly on vaccines.
Speaker Change: I Wonder if you can talk to your experience so far.
Kerry Holford: We can meet your ethanol station.
Kerry Holford: In business demand I guess given.
Given the negative rhetoric.
Kerry Holford: You see a negative impact.
Kerry Holford: <unk> vaccines in the U S, particularly within the pediatric space.
Kerry Holford: And <unk> and whether there is.
Kerry Holford: Amit.
Kerry Holford: <unk> makes it more difficult to secure.
Kerry Holford: Sure.
Kerry Holford: <unk> seen indeed, some point at.
Kerry Holford: At least for a rep in future.
Kerry Holford: You'll see back in your views on.
Kerry Holford: U S vaccines now okay. That's it for today.
Kerry Holford: Secondly, on Medicare part D redesign.
Speaker Change: Thank you Kate.
Kerry Holford: Reiterating the 400 to 500 million how do we have any.
Kerry Holford: Yeah.
Kerry Holford: Okay.
Speaker Change: He can say Jamie that it was within your expectations in Q1, I Wonder if you can quantify that.
Speaker Change: We say can we expect around half of it.
Speaker Change: Centered on HIV.
Speaker Change: Sure.
Speaker Change: Yeah, Jamie may add to that.
Speaker Change: I would say we are absolutely spot on where we thought we would be around.
Speaker Change: Paul J impacts and including by credit.
Speaker Change: <unk> Terrace in HIV, you right in saying that.
Speaker Change: No I think that I think is a good summary, Terry.
Speaker Change: We were bang on expectations HIV is the largest part was 150 to 200.
Speaker Change: Specialty is the next one because they tend to be a little expensive medicines.
Speaker Change: The balance is across vaccines and Jen Matt.
Speaker Change: We've treated it on a straight line basis over the coaches.
Speaker Change: So the coast services' evenly spread throughout the year.
Speaker Change: Yeah, I don't know I'm, not saying that we can get.
Speaker Change: They want to add to this but we gave as you know.
Speaker Change: Our cautious outlook on the year on vaccines, where exactly where we thought we would be there.
Speaker Change: And remember with a challenging comparison.
Speaker Change: This is last year I don't know boxes.
Speaker Change: None of this takes away from the fundamental confidence.
Speaker Change: In the field and our ambitions the pipeline over the medium term at least eight separate between speculation and actual experience and obviously, it's been good to get the approval and then their way and then double again down Msas are you simply have to see what CDC comes out.
Speaker Change: In terms of what we're seeing in terms of consumer behavior, all pediatric you've commented yesterday.
Speaker Change: Yes sure. Thanks.
Speaker Change: Yes, Terry I mean, I think there's a couple ways I can cover this I mean firstly.
Speaker Change: The facts are that I said pause just given the greenlight to pediatric vaccine with <unk>.
Speaker Change: So I think that's encouraging of course it needs a signature, but I think thats a good directional sense. If you look at our established vaccines overall, which include.
Speaker Change: A lot of our pediatric vaccines MMA will be there.
Speaker Change: We're down a little bit, but that's really due to the phasing so ISI three fighting in Canada.
Speaker Change: Robin.
Speaker Change: Many of you callbacks, whereas MMR vaccine in the U S.
Speaker Change: It was up 25%. So I think that's also encouraging if you look more broadly we do track.
Speaker Change: The vaccine hesitancy another chance to vaccines. If you look within I think one of the numbers I forget the other day is within <unk>, if someone declines or XP Brian.
Speaker Change: It is strongly recommended by physicians, particularly the 75 age group 75, plus age group when we look at why does someone decline and not do that suddenly and 17% of the time.
Speaker Change: It's just that they say they are against a vaccine.
Speaker Change: <unk>.
Speaker Change: Let's let's say in time.
About.
Speaker Change: Sorry, Bob.
Speaker Change: I think with with Rex where the impact is more predating. The current administration is really Isis decision in June of 2024, which I doubt, we'll get back to you later on but overall I think.
Speaker Change: The MSP.
Speaker Change: Cautiously optimistic in terms of the direction that way.
Speaker Change: Specific question on the redox as you know our base case. So that's the idea is we the data that will be presented though not as much of it is going to be coming through in 2026 and the earliest if its a fair idea of base case, I mean, let's say that that is until 2020 I honestly I think this will have you know the current if I can say.
Speaker Change: Environmental uncertainty will have settled down pretty clearly by then obviously ongoing questions around kind of vaccination of the trust net.
Speaker Change: Next question please.
Speaker Change: Next question comes from Jo Walton from UBS. Please go ahead.
Speaker Change: Okay.
Speaker Change: Thank you can you hear me.
Speaker Change: <unk> done that.
Speaker Change: Excellent.
Speaker Change: My two questions.
Speaker Change: A place for Julie.
Speaker Change: So looking.
Speaker Change: SG&A.
Speaker Change: 4%, excluding the you know the the base comparison and you've got such a lot of new products to launch even allowing for the fact that in respiratory.
Speaker Change: You've already got people are as it comes to the antibiotics as it comes to camera pixel et cetera, I Wonder if you can just tell us how long do you think you can keep such SG&A gross so.
Speaker Change: I'm still be utterly confident that you are giving the very best support that's required for these new products coming through.
Speaker Change: And secondly, sort of tariff fish related can.
Speaker Change: Can you just explain to us.
Speaker Change: We'll confirm for us that when you ship product to round that you ship stuff into the U S.
Speaker Change: It's largely out of sort of API type price. So that any tariffs that were put on would presumably be relatively absorbable.
Speaker Change: Note that in your annual report you do take quite a big benefit from intellectual property regime element. So that's presumably and ability to do that in the U K and in particular in Belgium. So vaccines. So I think there was some concern that maybe when you ship your vaccines across to the U S than maybe.
Speaker Change: They go off.
Speaker Change: You know a high price, including some sort of elements of royalty and that would be more difficult to absorb so it's just the.
Speaker Change: Tax sort of and just that.
Speaker Change: A confirmation as to how you move youll stuff around so that we can do our own work on what brought the tariffs might mean to your business. Initially thank you.
Speaker Change: Mhm.
Speaker Change: Okay. Thank you very much for the questions.
Speaker Change: In terms of SG&A.
Luke Miles: Yeah, I'm working very closely with Luke and the team on this and I'll invite him to comment as well we feel we've got an opportunity the areas. We're launching products in all the areas, where we've got a very strong position already possibly with the exception of oncology, which we're still building, but were very strong as you know Mister penetrative century to Randy.
Luke Miles: And there's a real synergy we found between <unk> and trilogy as an example in terms of the launch of the vaccine and the benefit also I'm traveling today so.
Luke Miles: So we would be certainly very carefully you know we do a multiyear plan we look at the launches we look at how we can reallocate resources.
Luke Miles: And the more mature lines and we use marketing makes models.
Luke Miles: Various other tools to understand the I guess the response rates to the marketing investment that we're making in the field force investment we're making.
Luke Miles: And you know our basis is driving continued productivity and you've seen us drive the P&L quite strongly in terms of the leverage we generated last year.
Luke Miles: On the top and 13 on the Boston and the same vision, we continue to do this.
Luke Miles: Yeah, we are very committed to doing that listen if he wants to.
Luke Miles: I think if you look we were having this conversation five years six years ago.
Luke Miles: We've been talking about a primary care structure et cetera.
Luke Miles: Whereas the reality is we've evolved that extensively and then when your products.
Luke Miles: Products I, just covered before theres, a dramatically more concentrated resourcing events smaller sales forces less APC. So very confident that we can support these products on a go of it.
Luke Miles: That's really our core.
Luke Miles: Robert.
Luke Miles: Our bread and butter died you ought to do that.
Luke Miles: And again as that mix moves to more specialty dominated that gets that gets easier of course because of the factors that Julie has just outlined.
Luke Miles: And just on tariffs.
Speaker Change: That's correct yeah. So in terms of some obviously the supply chain, our supply chains and inherently complex.
Emma Walmsley: We've quite frequently as Emma mentioned as a result of the demerger, we go after and dual sourcing.
Emma Walmsley: With you about kind of its own touching the U S. In some way through the supply chain, including vaccines, including vaccines, yes, absolutely.
Emma Walmsley: Therefore.
Emma Walmsley: Wouldn't be in a position it honestly when we were calculating the value of the tariff.
Emma Walmsley: It would only be based on the customer value and therefore, the API is actually not that.
Emma Walmsley: Relevant in terms of the pricing effects.
Emma Walmsley: As Evan mentioned at the beginning we have done a lot of work on this we've looked at multiple scenarios and we're very confident in our position, which really stems from the supply chain dual sourcing and it also stems from the productivity initiatives, which are well underway in the company that we totally committed still ramping.
Emma Walmsley: Alright, thank you.
Speaker Change: Question. Please.
Next question comes from Graham Parry from Bank of America.
Graham Parry: Hi, Brian.
Graham Parry: Thanks for taking the questions I should just follow up on that point on tariffs I should say, if you've got productivity.
Graham Parry: Our initiatives there.
Graham Parry: What's incremental in those is R&D for example at target and why wouldn't you have just been doing these before.
Graham Parry: Secondly, just wanted it on Xing risk if you could quantify the sales into China.
Graham Parry: As you say with inventory and actually do you think you could see some.
Graham Parry: Some sales this year through the course of the remainder of the year.
Graham Parry: And then last one was just on Iraq see the 36 month piece of data that you showed at let's say to AC power.
Graham Parry: Sorry, the conference in Brazil, actually showed a lower antibody base than you saw at the 24 months data.
Graham Parry: So what gives you the confidence of the vaccines based Ebola tool, because that's sort of staying low and is that sort of level. So no incremental efficacy benefits it.
Graham Parry: The second season. Thank you.
Graham Parry: Thanks, well I'll come to.
Graham Parry: Tony to talk about rayovac, so we still have.
Graham Parry: My confidence that the most likely scenario may want a census or to understand mix, but just to be clear in terms of productivity.
Graham Parry: This is about.
Graham Parry: Our ongoing continuous work to improve the productivity and I would say primarily.
Graham Parry: SG&A, where we do have sufficient spending and J.
Graham Parry: J D.
Graham Parry: <unk> of course, we all know the best way to drive Leverages better top line and that's been the base rate, yeah, Thanks, and cleanly efficiently and effectively on all growth driving production, but there is always opportunity. Each day look by the way technology is evolving all the time to do that to enable us to table now there is ongoing work in terms of continue improving the productivity.
Graham Parry: Think about R&D and likewise, we are getting is false.
Graham Parry: As possible, but as Judy said.
Graham Parry: First priority is to continue to increase investment behind the acceleration of the pipeline whether that be.
Graham Parry: The current label ultimately.
Graham Parry: Just as importantly, making sure we sets us up for possibly for agencies in the next wave of C. O P. D for further lifecycle innovations.
Graham Parry: Accelerated delivery of the Big thing, we're doing which is why we want to.
Graham Parry: Definitely it's increasing.
Graham Parry: <unk> investments in R&D later this year. So we're going at all of that is hard and fast as we can.
Graham Parry: And we see that as one of the lever to pull as we navigate through potential scenario switch.
Graham Parry: Yeah, we absolutely are taking the cat modeling, but what's been kind of doing a quick comment on the relax them yet.
Speaker Change: Certainly China, just a couple of great points and granular because as you appreciate there's no vaccine efficacy correlates establish chat just to remind everyone.
Speaker Change: Terms of the three season vaccine efficacy data that we have in the lower respiratory tract population. We go from 83% efficacy in season, one to 40 agencies in three so we are seeing waning.
Speaker Change: Immunogenicity point that you raised is a baseline effect and if you stratify individuals' within that study by that baseline you see a greater boost with lower baseline.
Brian: Yes, Thanks, Brian.
Speaker Change: China look I've described as a work in progress, but we are making progress, but it takes time I think we have the right strategic partner we've reshaped.
Speaker Change: The arrangement, but I think the macro appear they are appointed vaccination dynamics, we're watching very closely but we are seeing encouraging trends.
Speaker Change: Around 50 $54 million in China in Q1, and we're maintaining our market share of about two thirds faster has gone away, which is good because I think the ones that I've got my patients, but not our target.
Speaker Change: Anyway, because of their out of pocket sensitivity sorry.
Speaker Change: If we have deliveries and we're watching this closely there'll be for the second half.
Speaker Change: I think we've been pretty cautious in our outlook for China for this year because of the broad about crazy. Good understanding next question. Please.
Speaker Change: Next question comes from Simon Baker from retina.
Simon Baker: Hi, Kevin.
Simon Baker: Thank you for taking my question just two for me. Please firstly on the prep market. It was a strong performance by our pursuit.
Simon Baker: Gilead reported strong numbers for desk and they saw it broader awareness of prevention and actually saw it youll promotional activities. So wonder if you could just give us an update on the join unmixed within the prep market in.
Simon Baker: In terms of switches versus new chip prevention.
Simon Baker: Unrelated to them right and in the U S is there any impact from the.
Simon Baker: Shutdown of USAID on clinical trial recruitment.
Simon Baker: <unk> studies like the palisade study, which you're still showing as someone going recruiting and others have suggested that USA is quite heavy in terms of trial.
Simon Baker: Enrollment in coordination so any thoughts on that would be helpful.
Simon Baker: And then one for Tony on camera pixel we've got.
Simon Baker: The column, one study coming up in the second half of this year just.
Simon Baker: Just wanted to what a good result looks like that and how relevant is the data that was recently published on the suit study as a roadmap.
Simon Baker: The likely outcome of phase III, what constitutes good result, thanks, so much.
Speaker Change: David and tenant.
Simon Baker: Simon on the clinical trial side.
Speaker Change: I mean, there has been some reduction in funding from the federal government.
Speaker Change: Investigators in different clinical trial networks, I Havent, specifically affected us has had some impact across pediatric studies.
Speaker Change: It's been going on and obviously, we're working with the Permian.
Speaker Change: Let's do what we can do that but there's been no direct impacts on GSK Obi I think all the prep market through Q1.
Speaker Change: It's definitely continues a trend we're very pleased with the performance.
Speaker Change: And as I say Tomorrow March five in 'twenty one.
Patients are now on.
Speaker Change: For cheese.
Speaker Change: We continue to build this market.
Speaker Change: Firstly it is an underdeveloped market.
Speaker Change: Yes.
Speaker Change: Americans.
Speaker Change: If you could benefit from prep.
Speaker Change: Guessing, perhaps or there's a huge market development opportunity.
Speaker Change: And we recognize obviously competition will go up in the second half of the year, but I think that competition could help expand the market.
Speaker Change: There's definitely an opportunity to switch more of the oral patients into long acting because we know that the.
Speaker Change: Assistance and therefore the efficacy.
Speaker Change: Is much greater and we were very pleased to have two.
Speaker Change: Real World evidence studies of Croix.
Speaker Change: Constraints at that very clearly in the U S.
Speaker Change: <unk> would be a pillar and then perhaps studies with.
Speaker Change: 100% efficacy.
Speaker Change: Ultimately very strong.
Speaker Change: The long and persistent.
Speaker Change: Work in progress and it's a big change for a second.
Speaker Change: Sexual health clinics and physicians familiar for more breadth to long acting breathlessness.
Simon Baker: A number of more complex administrative procedures are progressing well, but let me comment just on kind of the picks and Simon.
Simon Baker: I'm not going to disclose what we set as the clinically significant based on sort of calm studies other than to say that both studies were designed with an objective of showing a clinically significant effect on cost.
Simon Baker: <unk> will read out the HCI Con Tu readout next year and of course, we won't be disclosing the broad data across those two studies until we pool and this is typical for all.
Simon Baker: Phase III studies, just a quick reminder, for everyone about why we're interested in kind of Olympics and this is a molecule <unk> selectivity profile is many orders of magnitude in excess of related agents and Simon to pick up on that that is very clearly seen.
Simon Baker: See in the Sioux study in which the taste disturbance, which has been a challenge for others was tenfold lower than that for comparator agents. Just a quick reminder, about food for us always a phase two study looking.
Individuals with 25 cost per hour than what we were able to show with kind of the patients in that study at both the 50 and.
Simon Baker: 200 milligram dose instead of PID regimen achieved a 34% placebo adjusted reduction in the 24 hour call frequency right. Thank you.
Speaker Change: A couple more.
Raj Sharma: Our next question comes from Raj Sharma from Goldman Sachs.
Raj Sharma: Hi, Thanks for taking my questions just a couple of them actually.
Raj Sharma: Ahead of the plan have you had any interactions with the agency on the potential rems requirement.
Raj Sharma: And if not could you potentially just talk to your base case assumption for Rems and high potential scenario. It could influence uptake and then secondly, just one on capital allocation process, just given that valuations are significantly lower than perhaps a year or so ago is there a potential fee to be more active on the BD front or is the math.
Raj Sharma: Drop box macro backdrop, sorry, I'm likely to be a limiting factor.
Raj Sharma: Yeah.
Raj Sharma: And you're absolutely right, where our appetite for BD.
Raj Sharma: <unk> remains high and we think there might be some opportunities in this environment. Obviously, we have to be cautious about assumptions on the back right, but that's a question of discipline and returns.
Raj Sharma: We continue to be busy reviewing them connect thing, let's say that's still.
Raj Sharma: Definitely a priority for us.
Raj Sharma: And on the sort of scalable and pace of what you've seen is sitting with basically a <unk> our way, but certainly a key part.
Raj Sharma: Our capital allocation going forward.
Raj Sharma: And I wonder, where the well actually that's going to totally for US just in terms of SDI, but we're not going to get ahead of ourselves on that considering it's not very far away, but on your comments on rins.
Raj Sharma: Maybe you could just say very briefly.
Raj Sharma: How you see that in terms of uptake because I know, it's something you really want to invest the time and get it right.
Raj Sharma: Yes.
Raj Sharma: Just two quick.
Raj Sharma: With the UK approval that we call.
Raj Sharma: And obviously.
Raj Sharma: All regulatory and.
Raj Sharma: <unk> are confidential, so I'm not going to get into the details of those but it's probably worth stressing as I'm sure you're whether rins are not uncommon for new oncology medicines.
Raj Sharma: For example forward.
And then the need for cardiac scans for inherent to the management of interstitial lung disease and docs eroded some cognitive.
Raj Sharma: So within that.
Raj Sharma: I think.
Raj Sharma: Useful to take a look at the UK approval, which requires eye examination for each of the first four doses.
Raj Sharma: So it was then wrap up.
Raj Sharma: Speak to that and the opportunity for us to send to them.
Raj Sharma: Relationships with high Street.
Raj Sharma: Provide us two to complete that I won't repeat what I said earlier, but the important point is really an understanding of the data in terms of efficacy.
Raj Sharma: Resolution of side effects and the severity.
Raj Sharma: In the ocular events.
Charlie: Thanks, Charlie.
Speaker Change: Renzo, obviously sounds like the familiar to Haim oncologists as a number of agents used.
Speaker Change: In multiple myeloma that have rents.
Speaker Change: And break down our assumptions on various ramp designs, but I think common sense would say that the less burdensome.
Speaker Change: Supportive for US is the more complicated, but we're spending a lot of time and it's getting back to my earlier point, which is it's really about supporting the physician we understand a lot more about the does this product does hold et cetera, so the behavior of the product and how it.
You know how how the ocular dimension can be managed trade does holes and really accessing that overall survival. It's important to point out. We're also spending a lot of time on the nuts and bolts of how the patients go through the system. How do you make it as easy as possible for Haim oncologist, when they've got a patient in front of them Theres just progressed.
Speaker Change: There are 10 of them and how do you make it as easy as possible. If they can put their practice machinery in place in a community setting to get that patient on that.
We've also looked at lot of things like our collaborations with poetry groups, we know that 90% of patients in the U S where potential patients in the U S with multiple myeloma live within half an hour of an eye care professional which is not surprising because most of them obviously the older need some glasses.
Speaker Change: Yes.
Speaker Change: Probably a lot of people on this call. So again, we're being very thoughtful.
Speaker Change: About how we navigate that and I think that's all we can say at this point.
Speaker Change: Beyond what Tony is covered with the attack.
Speaker Change: Yeah. Thanks for the reference to our ageing profile of types of level last question and I think that's correct.
Speaker Change: Question comes from Asahi copied from Morgan Stanley.
Speaker Change: Hi, Thanks for taking my Hello, Hi, Thanks for taking my questions. Just a quick one from me I know longtime HIV strategy do you have any plans to develop longer acting or does it seem from some of your competitors and if these all 19 of those are successful how do you see that impacting your competitive positioning given the double down on injectable pipeline.
Speaker Change: Thank you.
Speaker Change: Thanks, Gregg Thanks for the question.
Speaker Change: I think we are primarily focused on generating long long acting injectables.
Speaker Change: Very pleased with the progress with <unk>, which obviously is the first mover.
Speaker Change: And long acting injectable treatment.
Speaker Change: And for fever.
Speaker Change: Having some there.
Speaker Change: On Europe.
Speaker Change: All focused around taking that forward by four month options.
Speaker Change: And then.
Speaker Change: Essentially longer option six months since April so I'm very excited but the base that we presented back ROI of 184.
Speaker Change: Really shy right.
Speaker Change: Productivity has been very important and they are very broad resistance profile.
Speaker Change: Wholesale next year, but I think we're getting increasingly excited about 184.
Speaker Change: A significant potential medicine.
Speaker Change: In terms of the weekly orders and so forth I mean, we're obviously monitoring that I think they will likely.
Speaker Change: Largely cannibalized daily oral <unk>.
Speaker Change: We'll have to see how that goes.
Speaker Change: Fees and different levels of market research on patient preference and compliance and so forth.
Speaker Change: I'll start because at this point is really building on the first move a long acting treatments advantage, we have and we see very clear patient preference to go that great. So thanks, David and thank you everyone for joining the call we already up to one but it's great to have a strong start for GSK, but very much on track to deliver all 25 outlets.
Speaker Change: Despite the weather with strong growth.
Speaker Change: Business in specialty medicines and of course, that's importantly, really excites and continued pipeline progress. So we look forward to catching up with you in coming days and months and thanks for joining the call.