Annual Report 2018

This page provides a summary of the significant progress we have made in 2018 against our long-term priorities of Innovation, Performance and Trust, underpinned by a continuing shift in culture. The full Annual Report or individual sections can be downloaded below.

GSK at a glance

About us

Illustration of DNA


Immune system T-cells attacking a cancer cell
Immune system T-cells attacking a cancer cell


Herpes zoster virus of shingles
Herpes zoster virus of shingles

Consumer Healthcare

Novamin, a key technology in Sensodyne
Novamin, a key technology in Sensodyne Repair and Protect

Our long-term priorities underpinned by our culture

We deliver our long-term priorities through each of our three?businesses. They are designed to create long-term value for patients,?consumers and shareholders, and are underpinned by our ambition?to build a culture with a greater performance focus, aligned to our?values and expectations.


We invest in scientific and technical excellence to develop and launch a pipeline of new products that meet the needs of patients, payers and consumers.?

2018 objectives

  • Excellent execution of key launches:?Trelegy Ellipta,?Juluca,?and?Shingrix?
  • Strengthen Pharmaceutical pipeline?through greater focus, improved medicines?development and business development

2018 progress

  • Delivered industry-leading launches of?Shingrix?and?Trelegy?Ellipta,?with strong start?to sales of?Juluca?
  • New R&D approach to focus on science of?the immune system, human genetics and?advanced technologies?
  • Strengthened pipeline through strategic?business development with 23andMe and?Tesaro and terminated or divested around?80 programmes to focus investment on most?promising assets
  • Significant progress in reshaping?Pharmaceuticals R&D portfolio, with 33* of?46 new medicines now targeting modulation?of the immune system?

2019 objectives

  • Deliver continued strong sales of?Trelegy?Ellipta,?Nucala,?HIV two-drug regimen and?Shingrix?
  • Continue to strengthen pipeline through?execution of new R&D approach,?accelerating priority assets and optimising?recent strategic business development?transactions

* Includes M7824, the subject of the proposed alliance with Merck KGaA, Darmstadt, Germany, expected to close in Q1 2019.


We deliver growth based performance?by investing effectively in our?business, developing our people?and executing competitively.

2018 objectives

  • Grow sales in priority therapy areas,?categories and markets
  • Increase operating margins and deliver?improved cash flow
  • Strengthen top talent profile in key roles

2018 progress

  • Group sales £30.8 billion, up 2% AER,?5% CER, with growth in new respiratory?product sales and HIV
  • Total Group operating margin 17.8%, up 4.3?percentage points AER, up 5.0 percentage?points CER. Adjusted Group operating?margin 28.4%, flat AER, up 0.5 percentage?points CER?
  • Net cash flow from operations £8.4 billion, up from £6.9 billion. Free cash flow £5.7 billion, up from £3.5 billion
  • Announced transaction to create a world-leading Consumer Healthcare Joint Venture with Pfizer and bought out Novartis’ stake in GSK Consumer Healthcare
  • Key leadership appointments in place with?69% of top 125 leaders new in role?

2019 objectives?

  • Continue to drive sales growth and?operational performance
  • Successful integration of?Tesaro?
  • Deliver restructuring benefits and plan for?the integration of Pfizer’s consumer healthcare business
  • Accelerate capability build in priority areas?including digital data and analytics


We are a responsible company and?commit to?use?our science and?technology to address health needs,?make our products affordable and?available and to be a modern employer.

2018 objectives

  • Focus on supply service levels
  • Define new global health approach
  • Competitive employee engagement

2018 progress

  • Established new set of priorities and public?commitments to build trust
  • Continued to simplify supply chain and?improve supply performance
  • Received approval for tafenoquine, the first?new treatment for?P.?vivax?malaria in 60 years
  • Candidate TB vaccine showed positive?results in phase IIb trial
  • Competitive employee engagement through?focus on modern employer
  • All employees globally to have access to a?preventive healthcare package

2019 objectives

  • Focus on supply service levels, execute?portfolio and network simplification
  • Deliver progress on Trust commitments?
  • Progress global health research in TB?and HIV
  • Deliver modern employer programmes to?empower employees to be themselves,?feel good and keep growing at GSK


Please read our?cautionary statement?regarding forward-looking statements in our 2018 Annual Report.

Non-IFRS measures?
We use a number of adjusted, non-IFRS, measures to report the performance of our business. Total reported results represent the Group's overall performance under IFRS. Adjusted results and other non-IFRS measures may be considered in addition to, but not as a substitute for or superior to, information presented in accordance with IFRS. Adjusted results and other non-IFRS measures are defined on pages 40 to 42 of the Annual Report?and reconciliations to the nearest IFRS measures are on pages 51 and 56 of the Annual Report.

We believe that Adjusted results, when considered together with Total results, provide investors, analysts and other stakeholders with helpful complementary information to understand better the financial performance and position of the Group from period to period, and allow the Group's performance to be more easily compared against the majority of its peer companies. These measures are also used by management for planning and reporting purposes. They may not be directly comparable with similarly described measures used by other companies.

The information contained on this Annual Report 2018 summary page of is a summary of and contains extracts from the GSK Annual Report and Accounts 2018. The summary or extracts alone do not contain sufficient information to allow a full understanding of the results and state of affairs of GlaxoSmithKline PLC or the GSK Group. For further information the GSK Annual Report and Accounts 2018 should be consulted, including the?cautionary statement?on forward looking statements.?