GSK plc (GSK) Earnings Call Transcript & Summary

Good morning, and good afternoon. I'm James Gordon, JPMorgan European Pharma and Biotech analyst. And today at the JPMorgan conference, I've got the pleasure of introducing the GSK presentation and Q&A. So we have GSK CEO, Emma Walmsley, joining us for 20 minutes, and then we're going to have a 20-minute Q&A afterwards. And so with that said, thanks a lot for joining us today, Emma. Over to you for the presentation.

Thank you. Good morning, and good afternoon to everyone. A big thank you to James and a very happy new year to all of those attending today's virtual conference. Let me first refer you to our usual cautionary statement on Slide 2. And then please turn to Slide 3. 2022 will be a landmark year for GSK. The demerger of our world-leading Consumer Healthcare business is set to unlock tremendous value for 2 new businesses set up for independent delivery of competitive growth, shareholder value and scale impact on human health. During my presentation, I'm going to set out clearly why New GSK, our Biopharma business, will be a growth company, able to create significant value for patients, shareholders and our people from 2022 and on into the next decade. This slide sets out the key messages, including our commitments to deliver attractive growth over the next 5 years and beyond and to operate with the highest regard for sustainability. This means a step change in performance that we expect to begin this year. Please turn to Slide 4. Before we get into our confidence about New GSK prospects, I want to spend a couple of minutes focusing on what has been achieved over the last 5 years and how this creates an entirely different platform for future growth. Since 2017, we have undertaken an enormous amount of work to fix long-standing issues across the company, which has been a direct cause of historic underperformance and negative impact on total shareholder returns. Our focus has been to improve R&D productivity, commercial execution, group structure and capital allocation and very significantly drive a new culture with new leadership for more accountability, ambition and delivery. We've done this by prioritizing innovation, performance and trust, driving a sustained multiyear strategic transformation and investment program. Please turn to Slide 5. The scale of the changes made in the last 5 years is unprecedented as we've sought to improve performance, strengthen capabilities and prepare GSK for a new future. Our sales and cash flow performance have improved despite the loss of multibillion pound Advair to generics, and we've maintained operating profit levels whilst making much needed increases in R&D investment. This investment up 30% over the period and house leadership team have strengthened our R&D performance and productivity. Since 2017, we've delivered 13 major approvals, a top quartile performance, and we've more than doubled the number of potential new vaccines and medicines in Phase III and registration to 23. We now have a pipeline of over 60, many of which are potential best or first-in-class vaccines and medicines. Luke Miels and Deborah Waterhouse have transformed our commercial execution. New and Specialty Medicines have reached GBP 10 billion, growing double digits. And since 2017, vaccines revenues have also increased 35% under Roger Connor's leadership. We've made significant changes to our portfolio and manufacturing network, driving changes to our business mix, reducing our footprint, streamlining our supply chain, achieving substantial cost savings and divesting noncore brands. We've created a new world-leading consumer healthcare business following 2 successful global mergers and integrations with a radically transformed portfolio and a 25% increase in adjusted operating profit. And we have maintained our acknowledged leadership in ESG. Powering it all has been a new culture for more accountability and ambition. This change has started at the top where we transformed our leadership, 85% of the top 125 leaders are new in role since 2017 including 30% recruited externally. Please turn to Slide 6. We are now ready to deliver the most significant corporate change for GSK seen in more than 20 years to separate and create a New GSK and a new Consumer Healthcare. Both these businesses will have scale impact on human health and the opportunity to deliver compelling performance and attractive returns for shareholders. Please turn to Slide 7. We're going to create a new world leader in Consumer Healthcare with a planned separation in the middle of this year, GBP 150 billion market with very favorable dynamics for consistent future growth, expertly built and integrated by CEO designate, Brian McNamara, and his team. This business will serve 100 markets with the portfolio generating annual sales of around GBP 10 billion. It will be driven by brands and innovation with leading-edge science and human understanding to deliver better everyday health. And with 9 global power brands holding category leadership positions, a significant sales presence in the U.S. and China and 11 other brands each generating more than GBP 100 million in sales, the business is well placed to address future consumer needs and achieve our revenue ambitions. We are confident that this business will deliver sustainable organic sales growth well ahead of its categories in the years to come, alongside prospects of further margin expansion and high cash generation. This offers a highly attractive financial profile for future investors one that can support investment for growth and delivery of sustainable attractive returns. An appropriately skilled independent Board will oversee it, the full composition of which will be announced shortly. And in December last year, I was delighted that we announced the appointment of Sir Dave Lewis as the Chair Designate. We're going to be holding a Capital Markets Day very soon later this quarter, which is going to detail the very compelling prospects for Consumer Health as a new and independent company. You can turn to the next slide, please. The separation will occur in the middle of this year, and we're moving at pace with our plans. The Board reviewed multiple separation options to unlock the potential of both businesses, strengthening the New GSK's balance sheet and most importantly of all, maximizing shareholder value. On this basis, the separation will take the form of a demerger of at least 80% of GSK's holding in the business to shareholders. New GSK will retain up to 20% as a short-term financial investment that will be monetized in a timely and pragmatic manner to strengthen our balance sheet further. The new consumer business is expected to be a FTSE 100 company and will benefit from a premium listing on the London Stock Exchange. Please turn to Slide 9. Turning now to New GSK. With new ambition comes new purpose. For New GSK, this is to unite science, talent and technology to get ahead of disease together, all with a clear ambition of delivering human health impact, stronger and more sustainable returns and as a new exciting future-facing GSK, where outstanding people thrive. Getting ahead means preventing disease as well as treating it. It means innovating together, fusing ideas, capabilities and know-how inside and outside GSK. Our R&D focus is to deliver new vaccines and medicines using the science of the immune system, human genetics and advanced technologies together with a deep commitment to operate responsibly for all our stakeholders, prioritizing innovation, performance and trust. We remain committed to getting ahead of issues that matter for our company's sustainability, be it pricing and access, the environment of stronger diversity and inclusion. We do all this through our people and our culture with ambition, accountability and a shared responsibility to do the right thing. Please turn to Slide 10. Our bold ambitions are reflected in the new commitments to growth provided at our investor update in June last year. Both of these goals represented significant step change in delivery. With strong and effective commercial execution in the next 5 years, we expect to deliver more than 5% sales and more than 10% of adjusted operating profit growth on a compounded basis. And by 2031, we aim to deliver more than GBP 33 billion in sales. Please turn to Slide 11. To drive this step change in growth, we'll continue to prioritize investment in Vaccines and Specialty Medicines, which we expect to grow to around 3/4 of our revenue base by 2026. Over the next 5 years, in [ Pega ] terms, we expect sales to grow at high single digits for vaccines and double digits for Specialty Meds. Our newly defined general medicines business will contain all our primary care medicines. We'll optimize this business for profitability and cash flow. And as we've done in the last 5 years, we'll always continue to look for opportunities to streamline the portfolio and maximize its value for shareholders. Overall, we expect General Medicine sales to be broadly stable over the next 5 years, which is a significant change from the past. Slide 12. A key reason for prioritizing investment in Vaccines and Specialty Medicines is to realize the increasing opportunities for disease prevention and treatment. Our understanding of the relevance of the science of the immune system continues to grow, and modalities are converging. We have the approach, the tools, the portfolio and the capabilities to deliver growth and value. Turning to Slide 13. We continue to prioritize 4 therapeutic areas and also include the pursuit of opportunities in new areas that align with our strategy of focusing on the science of the immune system, human genetics to advance personal -- sorry, potential first or best-in-class vaccines and medicines. We expect our portfolio of marketed vaccines and medicines and our late-stage pipeline to deliver strong growth over the next decade. In the next 5 years, we'll see us build on the momentum we've achieved today, and we expect growth to be increasingly supplemented by contributions from the late-stage R&D pipeline. The value that these potential new vaccines and medicines can bring to patients at New GSK is very significant indeed. On a non-risk-adjusted basis, we believe they have the potential to deliver peak year sales of more than GBP 20 billion. Turning to Slide 14. Over the next -- over the past year, we've made significant progress. Of the key pipeline achievements highlighted on this slide, I'll call out 3 in particular: first is the compelling Phase III results from daprodustat, our potential best-in-class medicine to treat patients with anemia due to chronic kidney disease. We anticipate a regulatory submission in coming months here. Second, we've made tremendous progress in treating COVID-19 with our potentially best-in-class monoclonal antibody, Xevudy, with our collaboration partners, Vir. While we were not the first to enter this category, we were thinking about the risk of mutant variants and chose to pursue an approach that targets a highly conserved part of the spike protein. This rational approach to drug development appears to have paid off as Xevudy was the first monoclonal antibody to demonstrate preclinical activity against all COVID variants of concern, including Omicron. And thirdly, last month, we received USA FDA regulatory approval for Apretude in HIV prevention. With every 2-month dosing and superior efficacy to current oral options, Apretude advances again, our innovation leadership in meeting the needs of people vulnerable to HIV. Please turn to Slide 15. In the year ahead, we will continue to see R&D deliver important news flow on a high proportion of our late-stage pipeline. Specifically, we expect to report data readouts on up to 7 of the 11 potential new vaccines and medicines that we highlighted at our investor update including our older adults' RSV vaccine as well as proof of concept on our potential hep B therapeutic. We're also planning 2 important regulatory submissions, first daprodustat and second for Blenrep in third-line multiple myeloma. Please turn to Slide 16. The significant contributions to our top line ambitions are summarized here. Of course, alongside expected positive contributions from a vaccines and medicines on generic expirations. From '21 to 2026, our loss of exclusivity exposure is negligible and compares very favorably to peers. As can be seen here, our next anticipated loss of exclusivity comes from the patent expiration of dolutegravir in '28 in the U.S. and '29 in Europe. In November last year, at our HIV Investor event, we explained the transition we expect to see in our HIV portfolio to long-acting medicines. This significantly reduces our exposure to genericization and supports profitable revenue renewal in our HIV portfolio. And at a company level, we expect the loss of dolutegravir to be more than offset by the expected sales contribution from our late-stage pipeline. From '26 to '31, growth will be driven by several late-stage potential new vaccines and medicines, enabling us to achieve our ambition of more than GBP 33 billion in sales. And this ambition also does not include any significant contribution from the early-stage pipeline or any contribution from future business development, which we will, of course, continue to pursue. I should also reiterate that these outlooks do not include any revenues or profits from COVID-19 solutions. Please turn to Slide 17. We will leverage our top line growth to drive significant margin expansion. The adjusted operating profit margin will increase from the mid-20s to over 30% by 2026, delivering double-digit compounded profit growth over the period. We also expect to achieve a combined total of GBP 1.5 billion of annual cost savings by 2023. Approximately 1/3 of these savings are being reinvested to drive growth in the business, with the remainder expected to drop through to the bottom line. These programs are expected to complete in 2022 and no further restructuring programs are planned. Our focus, however, on driving out cost is going to continue. This will include more R&D productivity initiatives, further streamlining our manufacturing network, deploying technology as a deflationary force, embedding pandemic learnings and new ways of working and prioritizing projects with the highest returns. And of course, another very critical driver of margin expansion is the change in sales mix towards higher-margin vaccines and specialty care medicines. Please turn to Slide 18. Now turning to our capital allocation priorities. Our priority is to reinvest in our pipeline, including business development activity, focusing on bolt-ons and in-licensing deals. You saw us take several steps in that direction in 2021 through new R&D collaborations with iTeos, [indiscernible] and Arrowhead amongst others. We'll also strengthen our balance sheet with the Consumer demerger and the anticipated stronger operating cash flow we expect in the coming years. By 2026, we expect cash generation from operations to exceed GBP 10 billion. This will allow us to focus capital deployment on supporting growth through successful product launches and improving the sustainability of our operations, including reducing our carbon footprint. And of course, we intend to deliver attractive and growing returns to shareholders through a progressive dividend policy with an annual dividend starting at 45p per share in 2023. Please turn to Slide 19. For new GSK, ESG will continue to be an integral part of our strategy and our investment case. It will be a key driver in our goal to deliver health impact, build trust, reduce risk and enable the delivery of positive social impact. We're already making tremendous progress with our #1 ranking in the Dow Jones Sustainability Index and our long-standing leadership in the access to medicines index. Looking ahead, we aim to deliver ambitious environmental commitments with our targets of net zero on carbon and net positive on nature by 2030, and we also intend to lead the way on diversity and inclusion, and central to our purpose is a defining measure of delivering health impact at scale. Our plan shows that New GSK can positively impact the health of more than 2.5 billion people worldwide over the next 10 years. Please turn to Slide 20. So in summary, we expect New GSK to deliver very competitive performance. Over the next 5 years, with 2021 as a base year, we plan to deliver highly attractive growth with sales and adjusted operating profit of more than 5% and more than 10% on a compound basis. These commitments represent a clear step change in performance for a New GSK, and we're confident that we can deliver. By 2031, we aim to achieve more than GBP 33 billion in annual sales. Our current late-stage pipeline drives this ambition before any significant contribution from our maturing early-stage pipeline or future business development. Our late-stage pipeline has the potential to deliver over GBP 20 billion in nonrisk-adjusted peak year sales, supporting our confidence in these revenue ambitions. Importantly, this expected revenue profile sees New GSK growing through the decade despite the anticipated loss of exclusivity for our HIV medicine, dolutegravir from '28 onwards. New GSK will prioritize innovation in Vaccines and Specialty Medicines, maximizing opportunities across prevention and treatment of disease. We will support investments in innovation through the attractive profitability and cash flow of our general medicines business, which we will continue to optimize. New GSK will benefit from a strengthened balance sheet after the demerger of Consumer Healthcare, enabling us to pursue a growth-oriented capital allocation policy, and we will deliver this performance while meeting the high standards expected of us, retaining leading-edge ESG performance and driving a culture of ambition, accountability and responsibility. This is New GSK, one that is ambitious for patients, for shareholders and for our people. And so with that, I'm going to be joined by my colleagues, Luke and David, and I'm going to hand it back to James for the Q&A.

Great. Thanks very much for the presentation. As Emma has mentioned, we've got Luke Miels, Chief Commercial Officer; and David Redfern, Chief Strategy Officer with us, and we've got 20 minutes. And so we'll kick off the questions. Maybe just the first question would just be, can you give us an update on what you're seeing in terms of COVID and Omicron on the business? And whether it's the same sort of disruption as you saw previously? And in particular, products like Shingrix, how much disruption you're currently seeing?

Thanks, James. Well, I think I'm going to ask our Chief Commercial Officer to comment on that, although there's no change in terms of our optimism and ambition for the outlook for Shingrix or indeed all of the outlooks I've just covered in my presentation. But Luke, do you want to pick that up?

Thanks, Emma, and thanks, James. Yes, correct. I mean I think if we go back a few months ago, there was a lot of debate around booster impact. I think Omicron has more of an impact than boosters in terms of Shingrix. But yes, I think overall, in terms of all the products and Shingrix itself, I think we feel quite good about the direction and the manageability of what we're seeing in the U.S. and also Europe.

And David, I don't know whether you want to add anything in terms of our HIV business because obviously, there have been some markets that have been particularly the [ switch ] market that had been a bit hit, but we see that as short term. Do you want to comment further?

Yes. I mean there's no doubt that COVID has impacted the [ switch ] market and the HIV market generally over the last 18 months, 2 years, and that continues. Hopefully, it will start to normalize as Omicron plays through, particularly in the U.S. That said, we've got very much used to that. Our market share has gone up particularly about 2 drug regimens, Dovato and [ Zejula ]. And clearly, we've now launched our long-acting medicines as well. So we've been able to grow despite the more conservative nature of the market. And hopefully, that growth will accelerate as the market returns to normal later this year.

And I've also been asked in terms of Oncology, how much of a headwind you're seeing there? Some other companies at the conference have called out. They're still seeing diagnosis significantly hit or reduced. And for some Oncology indications, a lack of surgeries occurring, which has been a significant headwind. Have you seen much improvement there? When is that big headwind for GSK?

Luke? I think back to you to share with them.

Yes, I think this is -- remains a challenge for ovarian. I mean it's clearly correct. I mean if you see more extreme indications like pancreatic where the symptoms are more explicit, disease is progressing faster than those -- even if you look at chemo, those rates are not as suppressed. But yes, definitely, the more -- the less obvious, the harder to diagnose. Like ovarian, we're seeing consistent reluctance of patients to present at primary care offices and then the flow-on effect of that and agree just a reluctance on the part of physicians or just an inability to get [indiscernible] surgery. So that's still -- there's a longer tail on that than we really expect. And I think the other critical thing sadly when these patients do present eventually, the disease is going to be more progressed. So they're going to move through the first-line setting faster or extremely rapidly, which, of course, has implications in terms of maintenance driven.

One other question while we're on COVID. So as [ Sotrovimab ], Xevudy, I believe is now pronounced -- I saw you just announced a contract that Xevudy, sorry, a contract just announced. But is this a one-off? Or could this be a more durable part of GSK's P&L? How much -- how far is the future could you still have in these sales?

Well, first of all, we've excluded, as you know, James, our COVID solutions from our guidance as we did in 2021, and it's all excluded from our outlook precisely because there's ongoing uncertainty on how it's going to play both as a disease, but also the competitive landscape and indeed consumer behavior as well. I mean we were -- we are delighted to be contributing and mobilized to be contributing to COVID solutions. And as you know, at Q3, we added beyond an upgrade on our base guidance. We also added an upgrade to an additional 7 to 9 points of EPS we expected from COVID solutions coming from Xevudy. We were extremely deliberate on this -- the science here to identify an antibody that we thought may be more variant proof, and that's what's sort of come to bear. So very pleased to see the new announcement this morning on a quarter 1 contracts. Obviously, discussions are ongoing with a variety of governments and we'll continue to do so. On our side, we're just mobilizing supply to do the best we can for patients and will continue to contribute as is possible. I think -- so we'll update more in February as we get a bit more visibility of the landscape. But this will always be relatively flexible. And I think the world is trying to learn more about Omicron as it's burning through with these very high infection rates. I think there is a reasonable hypothesis that we're moving to a more endemic world, and that's also where other technology platforms, including mRNA, et cetera, and how we show up as a more sort of permanent part of our business potentially as something a question more for the future, as opposed to the immediate term. Luke, I don't know if you want to add to that because your team has been mobilizing like crazy on the prospects, and these questions of other meds as well on this than I can share.

Yes. I agree and I think this dimension of understanding Omicron. I think governments are trying to understand the role of [ nebs ], the role of orals. And that's -- their negotiation point or navigation point in terms of future purchasing decisions. And there's clearly a role for both. It just -- it depends on how physicians are going to -- [ nebs ] going to be used for the more compromised poly-complication type patients in adults, for younger, fitter individuals. And is there a segment that's going to be -- we see combinations being deployed, particularly in people with severe disease, myeloma, chemotherapy, et cetera, who are suppressed. So I think it's very interesting. I think what is pleasing just to build on Emma's point is the deal was done, I mean how had a clear hypothesis around preservation of activity because it's derived from a SARS patient versus COVID. And I think what's encouraging is that hypothesis is proven correct and governments can see that as well.

And are you running up against any sort of capacity constraints for the product? If there's a lot of mind out there, could you do many multiples of what you've already signed? Or could you be limited to say, this year, how much can actually be produced?

Well, we've -- well, go ahead, Luke.

That's right. I mean what we're seeing now, and we'll give more of an update on Q1, clearly, there's an increase in demand, and we're working to satisfy that. That's probably all we can say at this point.

I've got one question that's coming through on vaccines. The question is thoughts on potential entry of an mRNA shingles vaccine and if it's incorporated in the risk adjustment for your long-term planning. And maybe just to make the question a little bit broader, I mean, I think the idea has been that this shingles mRNA vaccine might be better in terms of tolerability or potentially just the ability to make a lot more of it. So how much of a threat is that product? And where do you think there is an opportunity for Toll versus Shingrix?

Yes. Well, I'll start, and Luke might want to add. Let's begin by saying we are incredibly confident in our shingles vaccine and remain very committed to delivering the ambition we talked about of doubling the sales over the next 5 years, which we shared last year. This is a vaccine with 97% efficacy and over 90% on the elderly cohort. And by the way, 8 years of sustained protection once you're vaccinated. So -- and a long safety track record. What matters most, if anyone who suffered with shingles and it's an enormous market, is that you are protected. So the barrier for efficacy is extremely high. The second thing to point to is we are now initially, obviously, we were supply constrained. We are now not supply constrained. And you will imagine that we continue to work on life cycle innovation. And I'm going to go further than that, but to make sure that this, in every sense, remains competitive [ through ]. We had 4 years of data when we submitted full approval on this vaccine. And we're very confident in that. And we're very confident in the adjuvant technology and so much so that it's obviously coming through in some of our newer pipeline that we're excited about getting data on later this year. Luke, is there anything you'd like to add in terms of [indiscernible] geo expansion and the rest.

Yes. I mean the rate limiting step, as Emma said, has been capacity more than anything and then, of course, COVID disruption. If you look at people completing the sequence, which I think is a pretty good indicator of tolerability, it's one of the highest we had. I mean, it's 1.8, 1.85. So -- and the argument around the 8 years plus, and of course, that will continue to build, hopefully, because it's just how long we've been observing this population. So those things are going to flow in there. We did assume that there would be competition. And as Emma said, we've been quite deliberate in terms of geographical expansion. And I'd like to think we've been strategic around that, particularly around pricing and expansion beyond the U.S. and European markets. And so we've got our plans. We had this. We're going to activate them. There's a clear time line now. So we know more than we did before, and we can act on it.

While we're on vaccines, I believe in the first half, we've got your older adults RSV vaccine readout coming up. So what's the confidence in that Phase III readout? And in terms of how that might be differentiated versus some of the other people going after [indiscernible] RSV, do you think the differentiation that your product would have -- would be apparent in that data set and why we have to wait a bit longer until we can really see how differentiated it is?

Yes. Well, let's wait and see what the data shows. I'm not going to make predictions on that for ourselves or others, except to say we are very excited to see that those RSV readouts come through. It's an enormous potential market with over 1 billion people over 60 worldwide. The hospitalization rates on those infected are actually higher than flu. You've got to believe, by the way, that a busier market is going to create a bigger market because it usually does. And we're also in an environment where adult vaccination is now something that's broadly accepted and welcomed. We are the only vaccine going in with the AS01 adjuvant, which is proven in an older cohort and has historically driven a level of efficacy and duration of efficacy. Obviously, you don't read duration until time passes. But we feel very good about that, and we're excited that the results was -- we were able to bring them into the first half rather than second half. And even in a crowded space, let's see what the data says. But there's a question of what the data says and then there's a question of what happens commercially. And I think we've seen time again from Luke and his team and on the HIV side, from Deborah and her team that when we're in a competitive environment, GSK now knows how to show up well. So Luke, I don't know if there's anything else you want to add on that?

Yes. And I think, again, we compete with Pfizer in the meningitis market and done very well there. We get over 70% of that business in the U.S. and have been expanding it and completely agree with Emma in terms of -- it's a bit hard to speculate at this point. I think the only thing we won't know is just whether these are seasonal vaccines or have longer durability and that will show up in time and the tox profile of these vaccines.

Yes, that's another point. We know we're on a long-term safety record here.

A follow-up question from someone on that. So the first question was -- part of that question was how confident can you be that it will read out as in your Phase III readout will be the first half? And what actually is the bar, given [ the wrong ] vaccines here already?

Given what?

Given there are no approved vaccines for older adults, what is the bar? What do you actually need to show?

I don't know, Luke, if you can comment at all on that, but we've committed to the first half for a readout, so that's what we're expecting.

Yes. And I think the driving is just the level of RSV circulating in the community and the combination of countries that you have for all companies there. In terms of a percentage, I don't want to get into a percentage, but I think if you look at the Phase II results that have been reported by various companies, that's probably a good place to start. But in the end, what will matter is when everyone unblinds. And then I think the second step to this, which is really important is you have the readout, but the rate limiting step in terms of commercial success is going to be the ACIP meeting in the U.S. where you'll get endorsement because approval in this setting, physicians are going to hold back until they see ACIP recommendations and the category of recommendation, the strength of that. So that will actually converge a lot of company's data sets in 2023. And then I think you're going to see a fair amount of debate from regulators potentially with some of these mechanisms just from some of the insights we've got across from COVID vaccines. So it will be interesting. And as Emma said, I think the fact that you've got 1 or 2 players here will help drive expansion. And I think it's going to be quite exciting and very good news for patients.

There's a question here about the synthetic lethality programs. What programs excite you the most synthetic lethality? And do we see data this year for anything?

Luke?

Yes. I mean I think the advantage, of course, is that we have Zejula as a backbone. I don't think you're going to see anything being reported externally this year, in the second half -- in the second half. There will be some early data from CD96 potentially at ASCO. That's not synthetic lethality, but just in terms of earlier programs that people may be interested in, so that's probably the leading point that we'll have in the early-stage Oncology pipeline. But yes, there's been a degree of care in terms of assembling various combinations. And I think the main question is going to be talks with the combinations.

Another question switching gears a bit is about Consumer. So when do we get this Capital Markets Day? What are we going to learn there? And maybe if I could just tag on to that. Could you also talk -- I think you've announced a Chair Designate for the consumer business. Could you talk about who's been higher and what they might bring?

Yes. Well, first of all, James, I don't know how many years we've been doing this, but it's been some time we've got to a consumer question early in this structure. So thank you for that. We are -- this is a momentous year for the company in terms of unlocking all the value that's been created over, frankly, the last 8 years in consumer with the 2 biggest deals in the sector and this massive change in the portfolio. And now for shareholders, we're very excited to bring a lot more visibility to the value created and more importantly, the value that lies ahead for consumer. We've committed to having a fully fledged, but it will be a remote Capital Markets Day this quarter, and we will be announcing very, very soon the date of that. So not in weeks. And what you -- what's going to be exciting there is to see with visibility, as I said in my comments, what underpins the confidence in sustainable organic growth well ahead of the categories, ongoing further margin expansion and high cash conversion that we've got a highly attractive financial investment here with good prospects for growth, continuing to invest in growth but also deliver sustainable returns at the same time. It is a truly unique business because it is the only pure play, 100% dedicated to Consumer Health business in the sector of meaningful scale with a world-class portfolio, particularly in the 2 biggest markets of the U.S. and China and leading positions in all the key subcategories. There is a very clear strategy based on science and human understanding and competitive consumer capabilities in both digital and brand innovation and route to market at scale. And frankly, structurally, when you look at some of the kind of inflationary pressures and other dynamics that are going on in broader consumer goods, I'm quite well placed on those kind of questions as well. And being so purpose led, very competitive on ESG too. So lots of exciting things to share from the broader team led by our CEO designate, who's already been named. But we've also named the broader leadership team that will be taking that business forward, and they'll be visible. We'll be sharing outlooks, prospects for growth. Dave Lewis has been named as the Chair designate. He will obviously be working on bringing together the broader Board, independent Board. And we will, obviously, as part of that CMD also be sharing a lot more precision on the time line forward up into the separation. So it will be a not-to-be-missed event, James. And we've announced the HQ of that company will be -- as well. So I'd just encourage everyone to at least pass on to their relevant colleagues a chance to join us and hear about this amazing business that's been built inside GSK.

Looking forward to the event. Great. Thank you very much. With that, we're out of time. So thanks to everyone from GSK for joining, and enjoy the rest of the conference.

Thanks very much, James.