GlaxoSmithKline PLC 3rd Quarter Results

Data : 30/10/2019 @ 13:00
Fonte : UK Regulatory (RNS & others)
Titolo : Glaxosmithkline Plc (GSK)
Quotazione : 1661.6  0.0 (0.00%) @ 01:00
Quotazione Glaxosmithkline Grafico

GlaxoSmithKline PLC 3rd Quarter Results

TIDMGSK

RNS Number : 6323R

GlaxoSmithKline PLC

30 October 2019

 
 Issued: Wednesday, 30 October 2019, London U.K. 
 
 
 GSK delivers sales of GBP9.4 billion +16% AER, +11% CER (Pro-forma 
  +6% CER*) 
  Total EPS 31.4p +9% AER, -1% CER; Adjusted EPS 38.6p +9% AER, +1% 
  CER 
 
 
 
 Financial highlights 
 
 --   Reported Group sales GBP9.4 billion +16% AER, +11% CER (Pro-forma 
       growth +6% CER*); Pharmaceuticals GBP4.5 billion +7% AER, +3% CER; 
       Vaccines GBP2.3 billion +20% AER, +15% CER; Consumer Healthcare 
       GBP2.5 billion +30% AER, +25% CER (Pro-forma growth +3% CER*) 
 --   Total Group operating margin 22.9%; Adjusted Group operating margin 
       29.7% reflecting increased spending on R&D and priority assets, 
       and the impact of generic Advair in the US, partly offset by Vaccines 
       performance (Pharmaceuticals 24.1%; Vaccines 50.3%; Consumer Healthcare 
       24.3%) 
 --   Total EPS 31.4p +9% AER, -1% CER, Adjusted EPS 38.6p +9% AER, +1% 
       CER reflecting operating performance and lower effective tax rate 
       offset by increased profit allocation to non-controlling interests 
 --   9 months net cash flow from operations GBP4.6 billion. Free cash 
       flow GBP2.5 billion 
 --   19p dividend declared for the quarter, continue to expect 80p for 
       FY19 
 --   Consumer Healthcare JV with Pfizer completed 31 July creating new 
       world leader in Consumer Healthcare 
 --   2019 Adjusted EPS guidance improved to expectation of around flat 
       at CER from a decline of -3% to -5% 
 
 Product and pipeline highlights 
 
 --   Shingrix sales GBP535 million +87% AER, +76% CER driven by continuing 
       strong execution in the US 
 --   Total Respiratory sales GBP806 million +25% AER, +19% CER. Nucala 
       GBP203 million +40% AER, +33% CER, Trelegy GBP139 million +>100% 
       AER, +>100% CER 
 --   Total HIV sales GBP1.3 billion, +5% AER, flat at CER. Two-drug 
       regimen sales GBP119 million 
 --   Continued progress to strengthen and advance R&D pipeline including: 
 
      Oncology: 
      -     Positive data presented at ESMO from PRIMA trial of Zejula monotherapy 
             showing significant improvement in PFS in women with ovarian 
             cancer regardless of biomarker status. On track to file by end 
             2019 
      -     Positive headline data from pivotal DREAMM-2 study of belantamab 
             mafodotin (GSK2857916) for multiple myeloma. On track to file 
             by end 2019 
      -     Positive data from GARNET study of dostarlimab for advanced or 
             recurrent endometrial cancer. On track to file by end 2019 
      -     Positive data presented at ESMO on GSK3359609 (ICOS receptor 
             agonist) plus pembrolizumab in head and neck squamous cell carcinoma. 
             Phase II/III registrational trial announced 
 
      Respiratory: 
      -     Nucala approved in EU for self-administration by patients with 
             severe eosinophilic asthma 
      -     Trelegy Ellipta submitted to the FDA for use in patients with 
             asthma 
 
      HIV: 
      -     Long-acting injectable cabotegravir + rilpivirine submitted to 
             EMA as the first monthly treatment for HIV 
      -     Positive phase III results from ATLAS-2M study of cabotegravir 
             + rilpivirine administered every 8 weeks 
 
      Other: 
      -     Phase III start for first-in-class antibiotic, gepotidacin, in 
             uncomplicated urinary tract infection and urogenital gonorrhoea 
      -     Daprodustat filed in Japan for patients with renal anaemia due 
             to chronic kidney disease 
 
 
 
 
 Q3 2019 results 
                                                    9 months 
                            Q3 2019     Growth          2019     Growth 
                                     ------------             ------------ 
                               GBPm   GBP%   CER%       GBPm   GBP%   CER% 
                           --------  -----  -----  ---------  -----  ----- 
 
 Turnover                     9,385     16     11     24,855     10      7 
 
 Total operating profit       2,147     12      3      5,059     29     20 
 Total earnings per 
  share                       31.4p      9    (1)      67.7p     38     28 
 
 Adjusted operating 
  profit                      2,786     10      3      7,120      9      3 
 Adjusted earnings per 
  share                       38.6p      9      1      99.2p     12      7 
 
 Net cash from operating 
  activities                  2,515     21             4,567      6 
 Free cash flow               1,939     25             2,474      4 
 
 
 
 The Total results are presented under 'Financial performance' on 
  pages 11 and 24 and Adjusted results reconciliations are presented 
  on pages 20, 21, 34 and 35. Adjusted results are a non-IFRS measure 
  that may be considered in addition to, but not as a substitute for, 
  or superior to, information presented in accordance with IFRS. Adjusted 
  results are defined on page 9 and GBP% or AER% growth, CER% growth, 
  free cash flow and other non-IFRS measures are defined on page 58. 
  GSK provides guidance on an Adjusted results basis only, for the 
  reasons set out on page 10. All expectations, guidance and targets 
  regarding future performance and dividend payments should be read 
  together with "Outlook, assumptions and cautionary statements" on 
  pages 59 and 60. 
 *    Reported AER and CER growth rates include two months' results of 
       former Pfizer consumer healthcare business. Pro-forma CER growth 
       rates are calculated as if the equivalent two months of Pfizer 
       consumer healthcare business results, as reported by Pfizer, were 
       included in the comparative 
       period of 2018. See "Pro-forma growth" on page 10. 
 
 
 Emma Walmsley, Chief Executive Officer, GSK said: 
 
  "GSK has made further good progress in Q3, with sales growth across 
  all three businesses, and we have today upgraded our full-year EPS 
  guidance. This quarter we have continued to strengthen our pipeline 
  and have advanced assets in Respiratory, HIV and, notably, Oncology, 
  where we are on track to file three innovative medicines by year 
  end, following positive pivotal trial data. We also achieved a significant 
  milestone with the completion of our new Consumer Healthcare Joint 
  Venture with Pfizer, to create a new world leading consumer healthcare 
  business." 
 
 
 2019 guidance 
 
 
 GSK now expects 2019 Adjusted EPS will be around flat at CER. This 
  new guidance represents a further improvement to that previously 
  given in July 2019 of an expected decline in Adjusted EPS in the 
  range of -3% to -5% at CER. The new guidance reflects operating performance 
  in the nine months, increased investment in R&D and priority assets 
  and a lower expected effective tax rate of around 17% for the year. 
  GSK expects to maintain the dividend for 2019 at the current level 
  of 80p per share. 
  All expectations, guidance and targets regarding future performance 
  and dividend payments should be read together with "Outlook, assumptions 
  and cautionary statements" on pages 59 and 60. 
  If exchange rates were to hold at the closing rates on 25 October 
  2019 ($1.28/GBP1, EUR1.15/GBP1 and Yen 139/GBP1) for the rest of 
  2019, the estimated positive impact on 2019 Sterling turnover growth 
  would be around 2% and if exchange gains or losses were recognised 
  at the same level as in 2018, the estimated positive impact on 2019 
  Sterling Adjusted EPS growth would be around 4%. 
 
 
 Results presentation 
 
 
 A webcast of the quarterly results presentation hosted by Emma Walmsley, 
  GSK CEO, will be held at 2pm GMT on 30 October 2019. Presentation 
  materials will be published on www.gsk.com prior to the webcast and 
  a transcript of the webcast will be published subsequently. 
  Information available on GSK's website does not form part of, and 
  is not incorporated by reference into, this Results Announcement. 
 
 
 Operating performance - Q3 2019 
 
 
 Turnover                                             Q3 2019 
                                     ------------------------ 
 
                                              Growth   Growth 
                                       GBPm     GBP%     CER% 
                                     ------  -------  ------- 
 
 Pharmaceuticals                      4,531        7        3 
 Vaccines                             2,308       20       15 
 Consumer Healthcare                  2,526       30       25 
                                     ------  -------  ------- 
 
                                      9,365       16       11 
 
 Corporate and other unallocated 
  turnover                               20 
                                     ------  -------  ------- 
 
 Group turnover                       9,385       16       11 
                                     ------  -------  ------- 
 
 Pro-forma growth                                           6 
                                                      ------- 
 
 
 
 Group turnover increased 16% AER, 11% CER to GBP9,385 million in 
  the quarter, with growth delivered by all three businesses, primarily 
  driven by Vaccines and the acquired Pfizer consumer healthcare business 
  to form the new Consumer Healthcare Joint Venture. Pro-forma turnover 
  growth for the Group was 6% CER. 
  Pharmaceuticals sales were up 7% AER, 3% CER with HIV sales of GBP1,267 
  million, up 5% AER, flat at CER, as growth in Juluca and Dovato 
  offset declines in Tivicay and Triumeq. Respiratory sales were up 
  25% AER, 19% CER to GBP806 million, on growth of Trelegy Ellipta 
  and Nucala. Sales of Established Pharmaceuticals declined 1% AER, 
  5% CER to GBP2,223 million including the impact of loss of exclusivity 
  of Advair. 
  Vaccines turnover grew 20% AER, 15% CER to GBP2,308 million, primarily 
  driven by growth in sales of Shingrix. Meningitis and Influenza 
  vaccines also contributed to growth. 
  Consumer Healthcare sales grew 30% AER, 25% CER to GBP2,526 million, 
  primarily reflecting the acquired Pfizer legacy brands. On a pro-forma 
  basis, turnover grew 3% CER, driven by strong performance in Oral 
  health. 
 
 
 Operating profit 
  Total operating profit was GBP2,147 million compared with GBP1,910 
  million in Q3 2018. Adjusted operating profit was GBP2,786 million, 
  up 10% AER, 3% CER on a turnover increase of 11% CER. The Adjusted 
  operating margin of 29.7% was down 1.5 percentage points at AER, 
  2.4 percentage points at CER and down 2.0 percentage points CER 
  on a pro-forma basis. 
 
  The unwind of the fair value uplift on Consumer Healthcare inventory 
  acquired from Pfizer and increased re-measurement charges on the 
  contingent consideration liabilities were partly offset by lower 
  charges for major restructuring and an increase in the value of 
  the shares in Hindustan Unilever Limited to be received on the disposal 
  of Horlicks and other Consumer Healthcare brands. GSK now expects 
  the transaction to complete in Q1 2020, subject to legal and regulatory 
  approvals. 
 
  Operating profit was also impacted by continuing price pressure, 
  including from the loss of exclusivity of Advair, investment in 
  R&D, including a significant increase in Oncology investment, and 
  investments in promotional product support, particularly for new 
  product launches. These were partly offset by the benefit from sales 
  growth, particularly in Vaccines, a more favourable mix in Vaccines 
  and Consumer Healthcare and continued tight control of ongoing costs 
  across all three businesses. 
 
  Earnings per share 
  Total earnings per share was 31.4p, compared with 28.8p in Q3 2018. 
  Adjusted EPS of 38.6p compared with 35.5p in Q3 2018, up 9% AER, 
  1% CER, on a 3% CER increase in Adjusted operating profit. The improvement 
  primarily resulted from a reduced tax rate and lower net finance 
  costs partly offset by the higher non-controlling interest allocation 
  of Consumer Healthcare profits. 
  Cash flow 
  Net cash inflow from operating activities was GBP2,515 million (Q3 
  2018: GBP2,077 million) and free cash flow was GBP1,939 million 
  (Q3 2018: GBP1,554 million). The increased free cash flow primarily 
  reflected improved operating profits, a lower seasonal increase 
  in trade receivables and inventory, and reduced dividend payments 
  to non-controlling interests. 
 
 
 Operating performance - nine months 2019 
 
 
 Turnover                                        9 months 2019 
                                     ------------------------- 
 
                                               Growth   Growth 
                                        GBPm     GBP%     CER% 
                                     -------  -------  ------- 
 
 Pharmaceuticals                      12,996        4        1 
 Vaccines                              5,415       23       19 
 Consumer Healthcare                   6,424       12       10 
                                     -------  -------  ------- 
 
                                      24,835       10        7 
 
 Corporate and other unallocated 
  turnover                                20 
                                     -------  -------  ------- 
 
 Group turnover                       24,855       10        7 
                                     -------  -------  ------- 
 
 Pro-forma growth                                            5 
                                                       ------- 
 
 
 
 Group turnover increased 10% AER, 7% CER to GBP24,855 million in 
  the nine months, with growth delivered by all three businesses. 
  Pro-forma turnover growth for the Group was 5% CER. 
  Pharmaceuticals turnover was GBP12,996 million, up 4% AER, 1% CER. 
  HIV sales were up 4% AER, 1% CER, to GBP3,597 million, with growth 
  in Juluca and Dovato partly offset by a decline in Triumeq. Respiratory 
  sales were up 23% AER, 18% CER, to GBP2,189 million, on growth of 
  Trelegy Ellipta and Nucala. Established Pharmaceuticals sales declined 
  4% AER, 6% CER to GBP6,603 million, including the impact of loss 
  of exclusivity of Advair. 
  Vaccines turnover grew 23% AER, 19% CER to GBP5,415 million, primarily 
  driven by growth in sales of Shingrix. Meningitis and Influenza 
  vaccines also contributed to growth. 
  Consumer Healthcare sales grew 12% AER, 10% CER to GBP6,424 million. 
  On a pro-forma basis, sales grew 2% CER, driven largely by the International 
  region with double digit growth in India and China. 
 
 
 Operating profit 
  Total operating profit was GBP5,059 million in the nine months compared 
  with GBP3,929 million in 2018. Adjusted operating profit was GBP7,120 
  million, up 9% AER, 3% CER on a turnover increase of 7% CER. The 
  Adjusted operating margin of 28.6% was down 0.3 percentage points 
  at AER, 1.0 percentage points at CER and down 0.9 percentage points 
  CER on a pro-forma basis. Reduced re-measurement charges on the 
  contingent consideration liabilities and an increase in value of 
  the shares in Hindustan Unilever Limited to be received on the disposal 
  of Horlicks and other brands were partly offset by increased charges 
  for major restructuring, primarily arising from write-downs in manufacturing 
  sites. 
 
  Operating profit also benefited from sales growth in all three businesses, 
  particularly Vaccines, a more favourable mix in Vaccines and Consumer 
  Healthcare, a benefit from favourable inventory adjustments in Vaccines 
  and continued tight control of ongoing costs across all three businesses. 
  This was partly offset by continuing price pressure, particularly 
  in Respiratory, including the impact of the loss of exclusivity 
  of Advair, investment in R&D including a significant increase in 
  Oncology investment, and investments in promotional product support, 
  particularly for new launches. 
 
  Earnings per share 
  Total earnings per share for the nine months was 67.7p, compared 
  with 49.0p in 2018. Adjusted EPS of 99.2p compared with 88.3p in 
  2018, up 12% AER, 7% CER, on a 3% CER increase in Adjusted operating 
  profit. The improvement primarily resulted from the lower non-controlling 
  interest allocation of Consumer Healthcare profits, a reduced effective 
  tax rate and an increased share of after tax profits of associates, 
  partly offset by increased net finance costs. 
  Cash flow 
  Net cash inflow from operating activities was GBP4,567 million (2018: 
  GBP4,302 million) and free cash flow was GBP2,474 million (2018: 
  GBP2,375 million). The increase primarily reflected improved operating 
  profits, a lower seasonal increase in trade receivables, lower contingent 
  consideration payments and reduced dividend payments to non-controlling 
  interests. 
 
 
 R&D pipeline 
 
 
 41 new medicines in development, 17 Vaccines 
 
 
 Pipeline news flow highlights since Q2 2019: 
 
 
 Oncology 
 
 
 Zejula (niraparib) 
 --   Positive phase III results from the PRIMA study of Zejula in the 
       first line maintenance setting in women with advanced ovarian cancer 
       were presented at the 2019 European Society for Medical Oncology 
       (ESMO) Congress and simultaneously published in The New England 
       Journal of Medicine. Regulatory submissions are on track with US 
       submission expected before end 2019. 
 --   Zejula received FDA approval for an expanded indication for the 
       treatment of advanced ovarian, fallopian tube or primary peritoneal 
       cancer patients, who have been treated with three or more prior 
       chemotherapy regimens and whose cancer is associated with homologous 
       recombination deficiency positive status including a BRCA mutation. 
 --   The first patient was dosed in the pivotal phase II study (MOONSTONE) 
       evaluating the combination of Zejula and dostarlimab in patients 
       with platinum resistant ovarian cancer. 
 
 
 GSK3359609 (ICOS) 
 --   Data (INDUCE-1) presented at ESMO 2019 demonstrated promising anti-tumour 
       activity with GSK3359609, an ICOS receptor agonist, in combination 
       with pembrolizumab in head and neck squamous cell carcinoma (HNSCC). 
       These data support initiation of a phase II/III registrational 
       trial with pembrolizumab in first-line recurrent/ metastatic HNSCC 
       (INDUCE-3). 
 
 
 Belantamab mafodotin (GSK2857916 BCMA ADC) 
 --   Positive headline results from the pivotal DREAMM-2 study for multiple 
       myeloma were announced and will be presented at an upcoming medical 
       congress. Regulatory submissions are on track with US submission 
       expected before end 2019. 
 
 
 Dostarlimab (TSR-042) 
 --   The first patient was dosed in the pivotal RUBY study of dostarlimab 
       plus chemotherapy versus placebo plus chemotherapy in first line 
       treatment of endometrial cancer. 
 --   Final data from the pivotal GARNET study of dostarlimab are in-house. 
       Regulatory submissions are on track with US submission expected 
       before end 2019. 
 
 
 GSK3145095 (RIP1k inhibitor) 
 --   GSK'095 for pancreatic cancer was terminated as part of ongoing 
       portfolio prioritisation. 
 
 
 HIV/Infectious diseases 
 
 
 Cabotegravir + rilpivirine 
 --   Positive phase III results reported from the ATLAS-2M study of 
       cabotegravir plus rilpivirine administered every eight weeks. 
 --   Regulatory application was submitted to the European Medicines 
       Agency for cabotegravir plus rilpivirine, as the first once monthly 
       injectable treatment for HIV. 
 
 
 Dovato (dolutegravir + lamivudine) 
 --   A supplemental NDA was submitted to the US FDA for the use of Dovato 
       in Virologically Suppressed Adults with HIV-1. 
 
 
 GSK3389404/3228836 (HBV ASO) 
 --   Option exercised to license Ionis' antisense medicines for people 
       with chronic hepatitis B virus infection following phase II results. 
 
 
 Gepotidacin (GSK2140944) 
 --   The first patients were dosed in the two pivotal studies of gepotidacin 
       in uncomplicated urinary tract infection and urogenital gonorrhea. 
 
 
 Immuno-inflammation 
 
 
 Benlysta (belimumab) 
 --   Benlysta received European approval for intravenous use in children 
       with lupus aged five years and older. 
 
 
 GSK2831781 (LAG3) 
 --   The first patient was dosed in a phase II study of GSK'781 in ulcerative 
       colitis. 
 
 
 Respiratory 
 
 
 Trelegy Ellipta (FF/UMEC/VI) 
 --   A supplemental NDA was submitted to the US FDA seeking an additional 
       indication for the use of Trelegy Ellipta for the treatment of 
       asthma in adults. 
 
 
 Nucala (mepolizumab) 
 --   Nucala received European approval for self-administration by patients 
       with severe eosinophilic asthma. 
 --   Nucala received US FDA approval for use in children as young as 
       six years old who are living with severe eosinophilic asthma. 
 --   Results from interim analysis of REALITI-A, a prospective global 
       real-world study, were presented at the 2019 European Respiratory 
       Society Congress and showed Nucala significantly reduces exacerbations 
       in patients with severe eosinophilic asthma. 
 
 
 GSK2292767 (PI3Kd inhibitor) 
 --   GSK'767 for respiratory diseases was terminated as part of ongoing 
       portfolio prioritisation. 
 
 
 Other pharmaceuticals 
 
 
 Daprodustat 
 --   Japanese New Drug Application was submitted for daprodustat for 
       the treatment of patients with renal anaemia due to chronic kidney 
       disease. 
 
 
 Linerixibat (GSK2330672, IBAT) 
 --   US FDA granted Orphan Drug Designation for linerixibat for the 
       treatment of cholestatic pruritus in primary biliary cholangitis. 
 
 
 Vaccines 
 
 
 TB vaccine 
 --   The New England Journal of Medicine published the final 3-year 
       results of a phase IIb study for candidate TB vaccine M72/AS01(E) 
       . Results demonstrate overall efficacy of 50% over the duration 
       of at least three years after vaccination. 
 
 
 Ebola vaccines 
 --   Vaccines candidates against Ebola and Marburg viruses have been 
       transferred to the Sabin Vaccine Institute for clinical development. 
 
 
 C. Difficile vaccine 
 --   First time in human trials were started for a candidate vaccine 
       for the prevention of Clostridium difficile (C. difficile) infection 
       using the AS01 adjuvant. 
 
 
 SAM (rabies model) vaccine 
 --   First time in human trials were started for self-amplifying mRNA 
       platform technology with a rabies model antigen. 
 
 
 Contents                                                               Page 
 
 Total and Adjusted results                                                9 
 Financial performance - Q3 2019                                          11 
 Financial performance - nine months ended 30 September 2019              24 
 Cash generation                                                          38 
 Returns to shareholders                                                  39 
 
 Income statements                                                        41 
 Statement of comprehensive income - three months ended 30 September 
  2019                                                                    42 
 Statement of comprehensive income - nine months ended 30 September 
  2019                                                                    43 
 Pharmaceuticals turnover - three months ended 30 September 
  2019                                                                    44 
 Pharmaceuticals turnover - nine months ended 30 September 2019           45 
 Vaccines turnover - three months ended 30 September 2019                 46 
 Vaccines turnover - nine months ended 30 September 2019                  47 
 Balance sheet                                                            48 
 Statement of changes in equity                                           49 
 Cash flow statement - nine months ended 30 September 2019                50 
 Segment information                                                      51 
 Legal matters                                                            53 
 Additional information                                                   54 
 Reconciliation of cash flow to movements in net debt                     57 
 Net debt analysis                                                        57 
 Free cash flow reconciliation                                            57 
 Reporting definitions                                                    58 
 Outlook, assumptions and cautionary statements                           59 
 Independent review report                                                61 
 
 
 Contacts 
 
 
 GSK - one of the world's leading research-based pharmaceutical and 
  healthcare companies - is committed to improving the quality of human 
  life by enabling people to do more, feel better and live longer. 
  For further information please visit www.gsk.com. 
 
 
 GSK enquiries: 
 UK Media enquiries:           Simon Steel          +44 (0) 20 8047   (London) 
                                                     5502 
                               Tim Foley            +44 (0) 20 8047   (London) 
                                                     5502 
                               Mary Hinks-Edwards   +44 (0) 20 8047   (London) 
                                                     5502 
 
 US Media enquiries:           Kristen Neese        +1 215 751 3335   (Philadelphia) 
 
 Analyst/Investor enquiries:   Sarah Elton-Farr     +44 (0) 20 8047   (London) 
                                                     5194 
                               James Dodwell        +44 (0) 20 8047   (London) 
                                                     2406 
                               Danielle Smith       +44 (0) 20 8047   (London) 
                                                     7562 
                               Jeff McLaughlin      +1 215 751 7002   (Philadelphia) 
 
 
 Registered in England & Wales: 
  No. 3888792 
 
 Registered Office: 
  980 Great West Road 
  Brentford, Middlesex 
  TW8 9GS 
 
 
 Total and Adjusted results 
 
 
 Total reported results represent the Group's overall performance. 
  GSK also uses a number of adjusted, non-IFRS, measures to report 
  the performance of its business. 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 are defined below and pro-forma growth and other 
  non-IFRS measures are defined on page 58. 
  GSK believes 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. 
  GSK encourages investors and analysts not to rely on any single 
  financial measure but to review GSK's quarterly results announcements, 
  including the financial statements and notes, in their entirety. 
  GSK is committed to continuously improving its financial reporting, 
  in line with evolving regulatory requirements and best practice 
  and has made a number of changes in recent years. In line with this 
  practice, GSK expects to continue to review its reporting framework. 
  Adjusted results exclude the following items from Total results, 
  together with the tax effects of all of these items: 
 
 
 --   amortisation of intangible assets (excluding computer software) 
 --   impairment of intangible assets (excluding computer software) and 
       goodwill 
 --   Major restructuring costs, which include impairments of tangible 
       assets and computer software, (under specific Board approved programmes 
       that are structural, of a significant scale and where the costs 
       of individual or related projects exceed GBP25 million), including 
       integration costs following material acquisitions 
 --   transaction-related accounting or other adjustments related to 
       significant acquisitions 
 --   proceeds and costs of disposal of associates, products and businesses; 
       significant legal charges (net of insurance recoveries) and expenses 
       on the settlement of litigation and government investigations; 
       other operating income other than royalty income, and other items 
 
 
 Costs for all other ordinary course smaller scale restructuring 
  and legal charges and expenses are retained within both Total and 
  Adjusted results. 
  As Adjusted results include the benefits of Major restructuring 
  programmes but exclude significant costs (such as significant legal, 
  major restructuring and transaction items) they should not be regarded 
  as a complete picture of the Group's financial performance, which 
  is presented in Total results. The exclusion of other Adjusting 
  items may result in Adjusted earnings being materially higher or 
  lower than Total earnings. In particular, when significant impairments, 
  restructuring charges and legal costs are excluded, Adjusted earnings 
  will be higher than Total earnings. 
  GSK has undertaken a number of Major restructuring programmes in 
  recent years in response to significant changes in the Group's trading 
  environment or overall strategy, or following material acquisitions. 
  Costs, both cash and non-cash, of these programmes are provided 
  for as individual elements are approved and meet the accounting 
  recognition criteria. As a result, charges may be incurred over 
  a number of years following the initiation of a Major restructuring 
  programme. 
  Significant legal charges and expenses are those arising from the 
  settlement of litigation or government investigations that are not 
  in the normal course and materially larger than more regularly occurring 
  individual matters. They also include certain major legacy matters. 
  Reconciliations between Total and Adjusted results, providing further 
  information on the key Adjusting items, are set out on pages 20, 
  21, 34 and 35. 
  GSK provides earnings guidance to the investor community on the 
  basis of Adjusted results. This is in line with peer companies and 
  expectations of the investor community, supporting easier comparison 
  of the Group's performance with its peers. GSK is not able to give 
  guidance for Total results as it cannot reliably forecast certain 
  material elements of the Total results, particularly the future 
  fair value movements on contingent consideration and put options 
  that can and have given rise to significant adjustments driven by 
  external factors such as currency and other movements in capital 
  markets. 
  Pro-forma growth 
  The acquisition of the Pfizer consumer healthcare business completed 
  on 31 July 2019 and so GSK's reported results include two months 
  of results of the former Pfizer consumer healthcare business from 
  1 August 2019. 
  The Group has presented pro-forma growth rates at CER for turnover, 
  Adjusted operating profit and operating profit by business taking 
  account of this transaction. Pro-forma growth rates for the quarter 
  are calculated comparing reported results for Q3 2019, calculated 
  applying the exchange rates used in the comparative period, with 
  the results for Q3 2018 adjusted to include the equivalent two months 
  of results of the former Pfizer consumer healthcare business during 
  Q3 2018, as consolidated (in US$) and included in Pfizer's US GAAP 
  results. Similarly, pro-forma growth rates at CER for the nine months 
  to 30 September 2019 are calculated comparing reported results for 
  the nine months to 30 September 2019, calculated applying the exchange 
  rates used in the comparative period, with the results for the nine 
  months to 30 September 2018, adjusted to include the equivalent 
  two months of results of the former Pfizer consumer healthcare business, 
  as consolidated (in US$) and included in Pfizer's US GAAP results. 
 
 
 ViiV Healthcare 
  ViiV Healthcare is a subsidiary of the Group and 100% of its operating 
  results (turnover, operating profit, profit after tax) are included 
  within the Group income statement. 
  Earnings are allocated to the three shareholders of ViiV Healthcare 
  on the basis of their respective equity shareholdings (GSK 78.3%, 
  Pfizer 11.7% and Shionogi 10%) and their entitlement to preferential 
  dividends, which are determined by the performance of certain products 
  that each shareholder contributed. As the relative performance of 
  these products changes over time, the proportion of the overall earnings 
  allocated to each shareholder also changes. In particular, the increasing 
  sales of dolutegravir-containing products have a favourable impact 
  on the proportion of the preferential dividends that is allocated 
  to GSK. Adjusting items are allocated to shareholders based on their 
  equity interests. GSK was entitled to approximately 85% of the Total 
  earnings and 82% of the Adjusted earnings of ViiV Healthcare for 
  2018. 
  As consideration for the acquisition of Shionogi's interest in the 
  former Shionogi-ViiV Healthcare joint venture in 2012, Shionogi received 
  the 10% equity stake in ViiV Healthcare and ViiV Healthcare also 
  agreed to pay additional future cash consideration to Shionogi, contingent 
  on the future sales performance of the products being developed by 
  that joint venture, principally dolutegravir. Under IFRS 3 'Business 
  combinations', GSK was required to provide for the estimated fair 
  value of this contingent consideration at the time of acquisition 
  and is required to update the liability to the latest estimate of 
  fair value at each subsequent period end. The liability for the contingent 
  consideration recognised in the balance sheet at the date of acquisition 
  was GBP659 million. Subsequent re-measurements are reflected within 
  other operating income/expense and within Adjusting items in the 
  income statement in each period. At 30 September 2019, the liability, 
  which is discounted at 8.5%, stood at GBP5,713 million, on a post-tax 
  basis. 
  Cash payments to settle the contingent consideration are made to 
  Shionogi by ViiV Healthcare each quarter, based on the actual sales 
  performance of the relevant products in the previous quarter. These 
  payments reduce the balance sheet liability and hence are not recorded 
  in the income statement. The cash payments made to Shionogi by ViiV 
  Healthcare in the nine months to September 2019 were GBP645 million. 
  Because the liability is required to be recorded at the fair value 
  of estimated future payments, there is a significant timing difference 
  between the charges that are recorded in the Total income statement 
  to reflect movements in the fair value of the liability and the actual 
  cash payments made to settle the liability. 
  Further explanation of the acquisition-related arrangements with 
  ViiV Healthcare are set out on pages 41 and 42 of the Annual Report 
  2018. 
 
 
 Financial performance - Q3 2019 
 
 
 Total results 
 
 
 The Total results for the Group are set out below. 
 
 
                                           Q3 2019   Q3 2018   Growth   Growth 
                                              GBPm      GBPm     GBP%     CER% 
                                          --------  --------  -------  ------- 
 
 Turnover                                    9,385     8,092       16       11 
 
 Cost of sales                             (3,245)   (2,636)       23       21 
                                          --------  --------  -------  ------- 
 
 Gross profit                                6,140     5,456       13        7 
 
 Selling, general and administration       (2,892)   (2,527)       14       11 
 Research and development                  (1,206)     (988)       22       18 
 Royalty income                                118        94       26       24 
 Other operating expense                      (13)     (125) 
                                          --------  --------  -------  ------- 
 
 Operating profit                            2,147     1,910       12        3 
 
 Finance income                                 32        10 
 Finance expense                             (245)     (233) 
 Profit on disposal of associates                -         3 
 Share of after tax profits 
  of 
  associates and joint ventures                 17        15 
                                          --------  --------  -------  ------- 
 
 Profit before taxation                      1,951     1,705       14        4 
 
 Taxation                                    (235)     (193) 
 Tax rate %                                  12.0%     11.3% 
                                          --------  --------  -------  ------- 
 
 Profit after taxation                       1,716     1,512       13        3 
                                          --------  --------  -------  ------- 
 
 Profit attributable to non-controlling 
  interests                                    164        94 
 Profit attributable to shareholders         1,552     1,418 
                                          --------  --------  -------  ------- 
 
                                             1,716     1,512       13        3 
                                          --------  --------  -------  ------- 
 
 Earnings per share                          31.4p     28.8p        9      (1) 
                                          --------  --------  -------  ------- 
 
 
 
 Adjusted results 
  The Adjusted results for the Group are set out below. Reconciliations 
  between Total results and Adjusted results for Q3 2019 and Q3 2018 
  are set out on pages 20 and 21. 
 
 
                                                                             Q3 2019 
                                ---------------------------------------------------- 
 
                                                                Reported   Pro-forma 
                                                % of   Growth     growth      growth 
                                    GBPm    turnover     GBP%       CER%        CER% 
                                --------  ----------  -------  ---------  ---------- 
 
 Turnover                          9,385         100       16         11           6 
 
 Cost of sales                   (2,785)      (29.7)       17         15           8 
 Selling, general and 
  administration                 (2,768)      (29.5)       20         16           8 
 Research and development        (1,164)      (12.4)       21         17          15 
 Royalty income                      118         1.3       26         24          25 
                                --------  ----------  -------  ---------  ---------- 
 
 Adjusted operating 
  profit                           2,786        29.7       10          3         (1) 
                                --------  ----------  -------  ---------  ---------- 
 
 Adjusted profit before 
  tax                              2,597                   12          4 
 Adjusted profit after 
  tax                              2,186                   16          8 
 Adjusted profit attributable 
  to 
  shareholders                     1,911                    9          1 
                                --------  ----------  -------  --------- 
 
 Adjusted earnings 
  per share                         38.6                    9          1 
                                --------  ----------  -------  --------- 
 
 
 
 Operating profit by 
  business                                                          Q3 2019 
                         -------------------------------------------------- 
 
                                                       Reported   Pro-forma 
                                       % of   Growth     growth      growth 
                           GBPm    turnover     GBP%       CER%        CER% 
                         ------  ----------  -------  ---------  ---------- 
 
 Pharmaceuticals          1,986        43.8      (2)        (7)         (7) 
 Pharmaceuticals R&D*     (893)                   34         28          28 
                         ------  ----------  -------  ---------  ---------- 
 
 Total Pharmaceuticals    1,093        24.1     (20)       (24)        (24) 
 Vaccines                 1,162        50.3       41         30          30 
 Consumer Healthcare        613        24.3       43         34           8 
                         ------  ----------  -------  ---------  ---------- 
 
                          2,868        30.6       10          3         (1) 
 Corporate & other 
  unallocated 
  costs                    (82) 
                                                                 ---------- 
 
 Adjusted operating 
  profit                  2,786        29.7       10          3         (1) 
                         ------  ----------  -------  ---------  ---------- 
 
 
 
 *   Operating profit of Pharmaceuticals R&D segment, which is the responsibility 
      of the Chief Scientific Officer and President, R&D. It excludes 
      ViiV Healthcare R&D expenditure, which is reported within the Pharmaceuticals 
      segment. 
 
 
 Turnover 
 
 
 Pharmaceuticals turnover 
 
 
                                                Q3 2019 
                               ------------------------ 
 
                                        Growth   Growth 
                                 GBPm     GBP%     CER% 
                               ------  -------  ------- 
 
 Respiratory                      806       25       19 
 HIV                            1,267        5        - 
 Immuno-inflammation              171       40       33 
 Oncology                          64        -        - 
 Established Pharmaceuticals    2,223      (1)      (5) 
                               ------ 
 
                                4,531        7        3 
                               ------ 
 
 US                             1,972        4      (2) 
 Europe                         1,040        9        9 
 International                  1,519       10        5 
                               ------  -------  ------- 
 
                                4,531        7        3 
                               ------  -------  ------- 
 
 
 
 Pharmaceuticals turnover in the quarter was GBP4,531 million, up 
  7% AER, 3% CER. Respiratory sales were up 25% AER, 19% CER to GBP806 
  million, on growth of Trelegy Ellipta and Nucala. HIV sales of GBP1,267 
  million were up 5% AER but flat at CER, with growth in Juluca and 
  Dovato offset by declines in Tivicay and Triumeq. Sales of Established 
  Pharmaceuticals declined 1% AER, 5% CER to GBP2,223 million, with 
  lower Advair sales offset by favourable prior period payer rebate 
  adjustments and higher Ventolin authorised generic sales in the US, 
  and a European Relenza tender. 
  In the US, sales grew 4% AER, but declined 2% CER. Excluding Advair 
  and Relvar/Breo Ellipta, impacted by genericisation of the ICS/LABA 
  market, growth was 21% AER, 14% CER. Continued growth of Nucala, 
  Trelegy Ellipta and Benlysta was offset by the decline in Established 
  Products, including the loss of exclusivity of Advair. In Europe, 
  sales grew 9% AER, 9% CER, with strong growth in Respiratory and 
  from Zejula. International grew 10% AER, 5% CER, with growth in all 
  therapy areas. 
  Respiratory 
  Total Respiratory sales were up 25% AER, 19% CER, with strong growth 
  in Europe and International, which both saw growth in Ellipta products, 
  including Relvar/Breo and Trelegy, and Nucala, up 29% AER and CER 
  in Europe and 82% AER, 65% CER in International. In the US, Trelegy 
  Ellipta and Nucala growth was partly offset by a decline in Relvar/Breo 
  Ellipta as a result of post-generic ICS/LABA price pressure. 
  Sales of Nucala were GBP203 million in the quarter and grew 40% AER, 
  33% CER, continuing to benefit from the global rollout of the product. 
  US sales of Nucala grew 37% AER, 29% CER to GBP119 million. 
  Sales of Ellipta products were up 21% AER, 15% CER to GBP603 million 
  driven by growth in Europe and International regions. In the US, 
  sales grew 12% AER, 5% CER, reflecting growth in Trelegy Ellipta 
  and Anoro Ellipta, partly offset by continued competitive pricing 
  pressures for ICS/LABAs. In Europe, Ellipta product sales grew 34% 
  AER, 33% CER. Sales of Trelegy Ellipta contributed GBP139 million 
  globally in the quarter, driven by an increase in US market share. 
  Relvar/Breo Ellipta sales were down 3% AER, 8% CER. In the US, Relvar/Breo 
  Ellipta declined 26% AER, 32% CER impacted by US competitive pricing 
  pressures and the impact of generic Advair on the US ICS/LABA market. 
  In Europe and International, Relvar/Breo Ellipta continued to grow, 
  up 20% AER, 19% CER and 25% AER, 22% CER respectively. 
  HIV 
  HIV sales of GBP1,267 million grew 5% AER but were flat at CER in 
  the quarter. The dolutegravir franchise grew 6% AER, 2% CER, delivering 
  sales of GBP1,211 million in the quarter. The remaining portfolio, 
  with sales of GBP56 million (4% of total HIV sales), declined 21% 
  AER, 23% CER and reduced the overall growth of total HIV sales by 
  two percentage points in the quarter. 
  Sales of dolutegravir products were GBP1,211 million in the quarter, 
  with Triumeq and Tivicay delivering sales of GBP651 million and GBP441 
  million, respectively. The two-drug regimens, Juluca and Dovato, 
  delivered sales of GBP119 million in the quarter, with combined growth 
  more than offsetting the decline in the three-drug regimen, Triumeq, 
  as the business transitions to the new portfolio. 
  In the US, following the launch of Dovato in April 2019, combined 
  sales of the two-drug regimens were GBP98 million. Total dolutegravir 
  sales grew 6% AER but were flat at CER, reflecting a year-on-year 
  share decline as the business transitions to the new two-drug portfolio, 
  offset by a net price benefit. In Europe, Dovato was launched in 
  the quarter and, combined with Juluca, recorded sales of GBP19 million. 
  Total dolutegravir sales grew 3% AER, 3% CER, driven by Tivicay and 
  our two-drug regimens. International continued to grow strongly with 
  total dolutegravir sales growth of 13% AER, 9% CER, driven by Triumeq. 
  Oncology 
  Sales of Zejula, the newly acquired PARP inhibitor asset, were GBP64 
  million in the quarter, comprising GBP38 million in the US and GBP26 
  million in Europe. 
  Immuno-inflammation 
  Sales of Benlysta in the quarter were up 42% AER, 35% CER to GBP172 
  million, including sales of the sub-cutaneous formulation of GBP78 
  million. In the US, Benlysta grew 39% AER, 29% CER to GBP150 million. 
  Established Pharmaceuticals 
  Sales of Established Pharmaceuticals in the quarter were GBP2,223 
  million, down 1% AER, 5% CER. 
  Established Respiratory products declined 8% AER, 12% CER to GBP939 
  million. Advair in the US experienced its second full quarter of 
  generic competition, resulting in a 62% AER, 64% CER decline. Also 
  in the US, Ventolin benefited from strong uptake of an authorised 
  generic version launched in the year. In Europe, Seretide sales were 
  down 8% AER, 9% CER to GBP121 million, reflecting continued competition 
  from generic products and the transition of the Respiratory portfolio 
  to newer products. In International, sales of Seretide were up 1% 
  AER but down 2% CER. 
  The remainder of the Established Pharmaceuticals portfolio grew by 
  5% AER, 1% CER to GBP1,284 million with Lamictal down 1% AER, 4% 
  CER to GBP147 million on generic competition in the US and International, 
  more than offset by growth in Dermatology and Augmentin in the quarter, 
  and a European Relenza tender. 
 
 
 Vaccines turnover 
 
 
                                         Q3 2019 
                        ------------------------ 
 
                                 Growth   Growth 
                          GBPm     GBP%     CER% 
                        ------  -------  ------- 
 
 Meningitis                371       13        9 
 Influenza                 371       22       15 
 Shingles                  535       87       76 
 Established Vaccines    1,031        3      (1) 
                        ------ 
 
                         2,308       20       15 
                        ------ 
 
 US                      1,441       36       28 
 Europe                    396      (1)      (2) 
 International             471        2        - 
                        ------  -------  ------- 
 
                         2,308       20       15 
                        ------  -------  ------- 
 
 
 
 Vaccines turnover grew 20% AER, 15% CER to GBP2,308 million, primarily 
  driven by growth in sales of Shingrix. Meningitis vaccines also contributed 
  to growth, mainly due to Bexsero demand across all regions. Influenza 
  vaccines sales grew 22% AER, 15% CER to GBP371 million, primarily 
  due to share gains, phasing and the favourable impact of a prior-year 
  returns provision reversal in the US. Established Vaccines grew 3% 
  AER but declined 1% CER to GBP1,031 million, reflecting lower demand 
  for Cervarix in International and supply constraints in MMRV vaccines, 
  partly offset by favourable Infanrix, Pediarix US CDC stockpile movements 
  and strong demand and favourable phasing of Boostrix in International. 
 
  Meningitis 
  Meningitis sales grew 13% AER, 9% CER to GBP371 million. Bexsero 
  sales grew 23% AER, 19% CER to GBP255 million, driven by strong demand 
  across all regions and share gains in the US. Menveo grew 4% AER 
  but declined 1% CER, primarily reflecting lower demand in International. 
 
  Influenza 
  Fluarix/FluLaval sales were up 22% AER, 15% CER to GBP371 million, 
  primarily due to share gains, phasing and the favourable impact of 
  a prior-year returns provision reversal in the US. 
 
  Shingles 
  Shingrix recorded sales of GBP535 million in the quarter, driven 
  by continued strong uptake in the US. Germany and Canada also contributed 
  to growth. 
 
  Established Vaccines 
  Sales of DTPa-containing vaccines (Infanrix, Pediarix and Boostrix) 
  grew 22% AER, 17% CER. Infanrix, Pediarix sales were up 24% AER, 
  19% CER to GBP199 million, reflecting favourable year-on-year CDC 
  stockpile movements and increased channel inventory in the US, partly 
  offset by competitive pressures in Europe. 
 
  Boostrix sales grew 19% AER, 15% CER to GBP187 million, mainly due 
  to strong demand and favourable phasing in International, together 
  with share gains and higher demand in the US. 
 
  Hepatitis vaccines grew 1% AER but declined 2% CER to GBP216 million, 
  primarily due to the comparison with a strong Q3 2018, which benefited 
  from a competitor supply shortage, and lower demand in Europe. 
 
  Rotarix sales were up 10% AER, 7% CER to GBP167 million, reflecting 
  stronger demand and favourable phasing in International. 
 
  Synflorix sales declined 3% AER, 4% CER to GBP116 million due to 
  lower demand in International. 
 
  MMRV vaccines sales declined 30% AER, 31% CER to GBP57 million, mainly 
  driven by supply constraints in Europe and International. 
 
  Cervarix sales were down 73% AER, 73% CER to GBP15 million, mainly 
  reflecting competitive pressure in China and lower demand elsewhere 
  in International. 
 
 
 Consumer Healthcare turnover 
 
 
                                       Q3 2019 
                      ------------------------ 
 
                               Growth   Growth 
                        GBPm     GBP%     CER% 
                      ------  -------  ------- 
 
 Wellness              1,277       26       22 
 Oral health             709       14       10 
 Nutrition               382     >100     >100 
 Skin health             158       14        9 
                      ------  -------  ------- 
 
                       2,526       30       25 
                      ------  -------  ------- 
 
 US                      730       62       52 
 Europe                  658       10       10 
 International         1,138       27       23 
                      ------  -------  ------- 
 
                       2,526       30       25 
                      ------  -------  ------- 
 
 Pro-forma growth                            3 
                                       ------- 
 
 
 
 Consumer Healthcare turnover grew 30% AER, 25% CER in the quarter 
  to GBP2,526 million. On a pro-forma basis, sales grew 3% CER, driven 
  by strong performance in the Oral health category, partly offset 
  by a decline in the Skin health category. 
 
  Divestments and the phasing out of low margin contract manufacturing 
  had a negative impact of approximately one percentage point on pro-forma 
  growth in the quarter. 
 
  Sales of the Consumer Healthcare business include nine weeks of legacy 
  Pfizer brand sales arising after the creation of the Joint Venture. 
  The legacy Pfizer brands have been included in the existing categories 
  and geographic regions used to report Consumer Healthcare sales. 
  GSK expects to revise this category structure for reporting from 
  Q1 2020 onwards. 
  Wellness 
  Wellness sales grew 26% AER, 22% CER to GBP1,277 million in the quarter. 
  On a pro-forma basis, sales grew in low single digits, with strong 
  performance in Pain relief partly offset by a decline in Respiratory 
  and the phasing out of low margin contract manufacturing. In the 
  Pain relief category, Panadol continued to perform strongly, particularly 
  in the Middle East and Africa, and benefited from 2018 regulatory 
  and distribution changes. Voltaren grew in mid-single digits, while 
  Advil was flat, reflecting a partial recovery from historical supply 
  issues. 
  Oral health 
  Oral health sales grew 14% AER, 10% CER to GBP709 million. Sensodyne 
  delivered double-digit, broad based growth, led by the US, with some 
  benefit from prior-year destocking in China. Double-digit growth 
  in Gum health was achieved, while Denture care grew in mid-single 
  digits. Oral health growth was also impacted by a decline in non-strategic 
  brands. 
  Nutrition 
  Nutrition sales more than doubled to GBP382 million, largely due 
  to the inclusion of the Pfizer vitamins, minerals and supplements 
  portfolio. On a pro-forma basis, sales grew in low single digits, 
  reflecting strong performances of Horlicks and Caltrate, partly offset 
  by a decline in Centrum. 
  Skin health 
  Skin health sales grew 14% AER, 9% CER to GBP158 million, largely 
  due to the addition of Chapstick from the Pfizer portfolio. On a 
  pro-forma basis, sales declined in mid-single digits, largely due 
  to divestments of small tail brands in the US and UK, which had a 
  negative impact on pro-forma growth of the category of six percentage 
  points. 
 
 
 Operating performance 
 
 
 Cost of sales 
  Total cost of sales as a percentage of turnover was 34.6%, 2.0 percentage 
  points higher at AER and 2.8 percentage points higher in CER terms 
  compared with Q3 2018. This reflected the unwind of the fair market 
  value uplift on inventory arising on completion of the Consumer Healthcare 
  Joint Venture with Pfizer as well as an increase in the costs of 
  manufacturing restructuring programmes, primarily as a result of 
  write downs in a number of manufacturing sites, and increased amortisation 
  of intangible assets. 
  Excluding these and other Adjusting items, Adjusted cost of sales 
  as a percentage of turnover was 29.7%, 0.2 percentage points higher 
  at AER, and 0.9 percentage points higher at CER compared with Q3 
  2018. On a pro-forma basis, Adjusted cost of sales as a percentage 
  of turnover was 29.7%, 0.5% percentage points higher at CER compared 
  with Q3 2018. The increase reflected continued adverse pricing pressure 
  in Pharmaceuticals, particularly in Respiratory, an unfavourable 
  product mix in Pharmaceuticals and a non-restructuring related write 
  down in a manufacturing site. This was partly offset by a more favourable 
  product mix in Vaccines, primarily due to the growth of Shingrix 
  in the US, and favourable year-on-year inventory adjustments. 
  Selling, general and administration 
  Total SG&A costs as a percentage of turnover were 30.8%, 0.4 percentage 
  points lower at AER and 0.2 percentage points lower on a CER basis 
  compared with Q3 2018. This included reduced major restructuring 
  costs partly offset by acquisition costs related to the Consumer 
  Healthcare Joint Venture with Pfizer. 
  Excluding these and other Adjusting items, Adjusted SG&A costs as 
  a percentage of turnover were 29.5%, 0.9 percentage points higher 
  at AER than in Q3 2018 and 1.1 percentage points higher on a CER 
  basis. On a pro-forma basis, Adjusted SG&A costs as a percentage 
  of turnover were 29.5%, 0.7 percentage points higher at CER compared 
  with Q3 2018. The growth in Adjusted SG&A costs of 20% AER, 16% CER, 
  (8% CER pro-forma) reflected increased investment resulting from 
  the acquisition of Tesaro and in promotional product support, particularly 
  for new launches in Respiratory, HIV and Vaccines, as well as increased 
  costs for a number of legal settlements in the quarter. This was 
  partly offset by the continuing benefit of restructuring in Pharmaceuticals 
  and the tight control of ongoing costs, particularly in non-promotional 
  spending across all three businesses. 
  Research and development 
  Total R&D expenditure was GBP1,206 million (12.9 % of turnover), 
  up 22% AER, 18% CER. Adjusted R&D expenditure was GBP1,164 million 
  (12.4% of turnover), 21% higher at AER, 17% higher at CER than Q3 
  2018. On a pro-forma basis, Adjusted R&D expenditure was 15% higher 
  at CER compared with Q3 2018. 
  Pharmaceuticals R&D expenditure was GBP899 million, up 24% AER, 19% 
  CER, reflecting a significant increase in Oncology study and clinical 
  trial material investments including on the assets from the Tesaro 
  acquisition, primarily Zejula and TSR-042, and a number of other 
  mid and late-stage programmes, including BCMA, NY-ESO and ICOS, as 
  well as increased spending on the progression of key assets such 
  as aGM-CSF for rheumatoid arthritis. This was partly offset by a 
  favourable comparison with Q3 2018, which included a provision for 
  costs payable to a third party relating to the use of a Priority 
  Review Voucher for Dovato and other projects that were terminated 
  as part of the R&D prioritisation at the end of 2018, including danirixin 
  and nemiralisib. R&D expenditure in Vaccines and Consumer Healthcare 
  was GBP191 million and GBP74 million, respectively. 
 
 
 Royalty income 
  Royalty income was GBP118 million (Q3 2018: GBP94 million), up 26% 
  AER, 24% CER, primarily reflecting increased royalties on sales of 
  Gardasil. 
  Other operating expense 
  Net other operating expense of GBP13 million (Q3 2018: GBP125 million) 
  primarily reflected accounting charges of GBP305 million (Q3 2018: 
  GBP248 million) arising from the re-measurement of the contingent 
  consideration liabilities related to the acquisitions of the former 
  Shionogi-ViiV Healthcare joint venture and the former Novartis Vaccines 
  business and the liabilities for the Pfizer put option and Pfizer 
  and Shionogi preferential dividends in ViiV Healthcare. 
  This included a re-measurement charge of GBP255 million (Q3 2018: 
  GBP214 million) for the contingent consideration liability due to 
  Shionogi, primarily arising from changes in exchange rate assumptions 
  and the unwind of the discount. These accounting charges were partly 
  offset by an increase in value of the shares in Hindustan Unilever 
  Limited to be received on the disposal of Horlicks and other Consumer 
  Healthcare brands of GBP295 million in the quarter. The cumulative 
  increase in value since the signing of the proposed transaction was 
  GBP345 million. 
 
 
 Operating profit 
  Total operating profit was GBP2,147 million in Q3 2019 compared with 
  GBP1,910 million in Q3 2018. The unwind of the fair market value 
  uplift on inventory arising on completion of the Consumer Healthcare 
  Joint Venture with Pfizer as well as increased re-measurement charges 
  on the contingent consideration liabilities and reduced profit on 
  disposals were partly offset by an increase in the value of the shares 
  in Hindustan Unilever Limited to be received on the disposal of Horlicks 
  and other Consumer Healthcare brands and reduced restructuring costs. 
  Excluding these and other Adjusting items, Adjusted operating profit 
  was GBP2,786 million, 10% higher than Q3 2018 at AER and 3% higher 
  at CER on a turnover increase of 11% CER. The Adjusted operating 
  margin of 29.7% was 1.5 percentage points lower at AER, 2.4 percentage 
  points lower on a CER basis than in Q3 2018. On a pro-forma basis, 
  Adjusted operating profit was 1% lower at CER on a turnover increase 
  of 6% CER. The Adjusted pro-forma operating margin of 29.7% was 2.0 
  percentage points lower on a CER basis than in Q3 2018. 
  The reduction in Adjusted operating profit primarily reflected continuing 
  price pressure, particularly in Respiratory, including the impact 
  of the launch of a generic version of Advair in the US in February 
  2019, investment in R&D, including a significant increase in Oncology 
  investment, partly on the assets from the Tesaro acquisition, investments 
  in promotional product support, particularly for new launches in 
  Vaccines, HIV and Respiratory as well as increased costs for a number 
  of legal settlements in the quarter. This was partly offset by the 
  benefit from sales growth, particularly in Vaccines, a more favourable 
  mix in Vaccines and continued tight control of ongoing costs across 
  all three businesses. 
  Contingent consideration cash payments which are made to Shionogi 
  and other companies reduce the balance sheet liability and hence 
  are not recorded in the income statement. Total contingent consideration 
  cash payments in the quarter amounted to GBP217 million (Q3 2018: 
  GBP213 million). This included cash payments made to Shionogi of 
  GBP206 million (Q3 2018: GBP208 million). 
  Operating profit by business 
  Pharmaceuticals operating profit was GBP1,093 million, down 20% AER, 
  24% CER on a turnover increase of 3% CER. The operating margin of 
  24.1% was 8.1 percentage points lower at AER than in Q3 2018 and 
  8.5 percentage points lower on a CER basis. This primarily reflected 
  the continued impact of lower prices, particularly in Respiratory, 
  including the impact of the launch of a generic version of Advair 
  in the US in February 2019, an unfavourable product mix, primarily 
  as a result of the growth in some lower margin established products 
  and a non-restructuring related write down in a manufacturing site 
  together with a significant increase in Oncology R&D investment and 
  investment in new product support and targeted priority markets as 
  well as increased costs for a number of legal settlements in the 
  quarter. This was partly offset by continued benefit of restructuring 
  and tight control of ongoing costs and the benefits of re-prioritisation 
  of the R&D portfolio. 
 
  Vaccines operating profit was GBP1,162 million, 41% higher than Q3 
  2018 at AER and 30% higher at CER on a turnover increase of 15% CER. 
  The operating margin of 50.3% was 7.4 percentage points higher than 
  in Q3 2018 at AER and 5.7 percentage points higher on a CER basis. 
  This was primarily driven by enhanced operating leverage from strong 
  sales growth, particularly Shingrix in the US, improved product mix, 
  favourable year-on-year inventory adjustments and higher royalty 
  income. 
 
  Consumer Healthcare operating profit was GBP613 million, up 43% AER, 
  34% CER on a turnover increase of 25% CER. On a pro-forma basis operating 
  profit of GBP613 million was up 8% CER on a turnover increase of 
  3% CER. The operating margin of 24.3% was 2.2 percentage points higher 
  at AER and 1.6 percentage points higher on a CER basis. The pro-forma 
  operating margin of 24.3% was 1.2 percentage points higher on a CER 
  basis than in Q3 2018. This primarily reflected continued manufacturing 
  restructuring savings, improved growth from higher margin power brands, 
  which included some seasonal sell-ins, and tight control of promotional 
  and other operating expenses. 
  Net finance costs 
  Total net finance costs were GBP213 million compared with GBP223 
  million in Q3 2018. Adjusted net finance costs were GBP206 million 
  compared with GBP221 million in Q3 2018. The decrease primarily reflected 
  a favourable comparison with Q3 2018, which included interest of 
  GBP23 million on an historic tax settlement, together with a fair 
  value gain on interest rate swaps in Q3 2019, partly offset by higher 
  debt levels reflecting the acquisition of Tesaro in January 2019. 
  Following the introduction of IFRS 16, 'Leases', finance costs included 
  an unwind of the discount on the lease liability of GBP9 million 
  in the quarter. 
  Share of after tax profits of associates and joint ventures 
  The share of after tax profits of associates was GBP17 million (Q3 
  2018: GBP15 million). 
  Taxation 
  The charge of GBP235 million represented an effective tax rate on 
  Total results of 12.0% (Q3 2018: 11.3%) and reflected the different 
  tax effects of the various Adjusting items, including the non-taxable 
  gain arising from the increase in value of the shares in Hindustan 
  Unilever Limited to be received on the disposal of Horlicks and other 
  Consumer Healthcare brands. Tax on Adjusted profit amounted to GBP411 
  million and represented an effective Adjusted tax rate of 15.8% (Q3 
  2018: 18.6%), reflecting the impact of the settlement of a number 
  of open issues with tax authorities. 
 
  Issues related to taxation are described in Note 14, 'Taxation' in 
  the Annual Report 2018. The Group continues to believe it has made 
  adequate provision for the liabilities likely to arise from periods 
  which are open and not yet agreed by tax authorities. The ultimate 
  liability for such matters may vary from the amounts provided and 
  is dependent upon the outcome of agreements with relevant tax authorities. 
  Non-controlling interests 
  The allocation of Total earnings to non-controlling interests amounted 
  to GBP164 million (Q3 2018: GBP94 million). The increase was primarily 
  due to the allocation of Pfizer's interest in the profits of the 
  Consumer Healthcare Joint Venture (GBP47 million), an increased allocation 
  of ViiV Healthcare profits to GBP86 million (Q3 2018: GBP78 million) 
  including charges for movements in contingent consideration liabilities 
  and higher net profits in some of the Group's other entities with 
  non-controlling interests. 
  The allocation of Adjusted earnings to non-controlling interests 
  amounted to GBP275 million (Q3 2018: GBP141 million). The increase 
  in allocation was primarily due to the allocation of Pfizer's interest 
  in the profits of the Consumer Healthcare Joint Venture (GBP103 million), 
  an increased allocation of ViiV Healthcare profits of GBP141 million 
  (Q3 2018: GBP125 million) and higher net profits in some of the Group's 
  other entities with non-controlling interests. 
  Earnings per share 
  Total earnings per share was 31.4p, compared with 28.8p in Q3 2018. 
  The increase in earnings per share primarily reflected an increase 
  in the value of the shares in Hindustan Unilever Limited to be received 
  on the disposal of Horlicks and other Consumer Healthcare brands, 
  a reduced effective tax rate and reduced restructuring costs. 
  Adjusted EPS of 38.6p compared with 35.5p in Q3 2018, up 9% AER, 
  1% CER, on a 3% CER increase in Adjusted operating profit. This reflected 
  a reduced effective tax rate and reduced net finance costs partly 
  offset by an increased non-controlling interest allocation of Consumer 
  Healthcare profits following the creation of the new Consumer Healthcare 
  Joint Venture in Q3 2019. 
  Currency impact on Q3 2019 results 
  The Q3 2019 results are based on average exchange rates, principally 
  GBP1/$1.23, GBP1/EUR1.11 and GBP1/Yen 133. Comparative exchange rates 
  are given on page 55. The period-end exchange rates were GBP1/$1.23, 
  GBP1/EUR1.13 and GBP1/Yen 133. 
  In the quarter, turnover increased 16% AER, 11% CER. Total EPS was 
  31.4p compared with 28.8p in Q3 2018. Adjusted EPS was 38.6p compared 
  with 35.5p in Q3 2018, up 9% AER, 1% CER. The positive currency impact 
  primarily reflected the weakness of Sterling, particularly against 
  the US$ and Yen, partly offset by weakness in emerging market currencies, 
  relative to Q3 2018. Exchange gains or losses on the settlement of 
  intercompany transactions had a negligible impact on the positive 
  currency impact of eight percentage points on Adjusted EPS. 
 
 
 Adjusting items 
  The reconciliations between Total results and Adjusted results for 
  Q3 2019 and Q3 2018 are set out below. 
 
 
 Three months ended 30 September 2019 
 
 
                                                                                                Divestments, 
                                                                                                 significant 
                                                                                                       legal 
                                      Intangible     Intangible          Major                           and 
                            Total         amort-        impair-      restruct-   Transaction-          other       Adjusted 
                          results        isation           ment          uring        related          items        results 
                             GBPm           GBPm           GBPm           GBPm           GBPm           GBPm           GBPm 
                     ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 Turnover                   9,385                                                                                     9,385 
 Cost of sales            (3,245)            191             10            108            151                       (2,785) 
                     ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 Gross profit               6,140            191             10            108            151                         6,600 
 
 Selling, general 
  and 
  administration          (2,892)                           (1)             77             30             18        (2,768) 
 Research and 
  development             (1,206)             14             17             12                           (1)        (1,164) 
 Royalty income               118                                                                                       118 
 Other operating 
  (expense)/income           (13)                                            2            300          (289)              - 
                     ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 Operating profit           2,147            205             26            199            481          (272)          2,786 
 
 Net finance costs          (213)                                            3                             4          (206) 
 Share of after 
  tax 
  profits of 
  associates and 
  joint 
  ventures                     17                                                                                        17 
                     ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 Profit before 
  taxation                  1,951            205             26            202            481          (268)          2,597 
 
 Taxation                   (235)           (39)            (6)           (33)           (86)           (12)          (411) 
 Tax rate %                 12.0%                                                                                     15.8% 
                     ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 Profit after 
  taxation                  1,716            166             20            169            395          (280)          2,186 
                     ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 Profit 
  attributable 
  to 
  non-controlling 
  interests                   164                                                         111                           275 
 
 Profit 
  attributable 
  to 
  shareholders              1,552            166             20            169            284          (280)          1,911 
                     ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 
 Earnings per 
  share                     31.4p           3.4p           0.4p           3.4p           5.7p         (5.7)p          38.6p 
                     ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 
 
 Weighted average 
  number 
  of 
  shares 
  (millions)                4,951                                                                                     4,951 
                     ------------                                                                              ------------ 
 
 
 Three months ended 30 September 2018 
 
 
                                                                                                Divestments, 
                                                                                                 significant 
                                                                                                       legal 
                                      Intangible     Intangible          Major                           and 
                            Total         amort-        impair-      restruct-   Transaction-          other       Adjusted 
                          results        isation           ment          uring        related          items        results 
                             GBPm           GBPm           GBPm           GBPm           GBPm           GBPm           GBPm 
                     ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 Turnover                   8,092                                                                                     8,092 
 Cost of sales            (2,636)            133             41             69              5                       (2,388) 
                     ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 Gross profit               5,456            133             41             69              5                         5,704 
 
 Selling, general 
  and 
  administration          (2,527)                                          209            (9)             14        (2,313) 
 Research and 
  development               (988)             10              8              4                             5          (961) 
 Royalty income                94                                                                                        94 
 Other operating 
  (expense)/income          (125)                                            1            251          (127)              - 
                     ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 Operating profit           1,910            143             49            283            247          (108)          2,524 
 
 Net finance costs          (233)                                                                          2          (221) 
 Profit on 
  disposal 
  of associates                 3                                                                        (3)              - 
 Share of after 
  tax 
  profits of 
  associates and 
  joint 
  ventures                     15                                                                                        15 
                     ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 Profit before 
  taxation                  1,705            143             49            283            247          (109)          2,318 
 
 Taxation                   (193)           (29)            (6)           (67)           (24)          (111)          (430) 
 Tax rate %                 11.3%                                                                                     18.6% 
                     ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 Profit after 
  taxation                  1,512            114             43            216            223          (220)          1,888 
                     ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 Profit 
  attributable 
  to 
  non-controlling 
  interests                    94                                                          47                           141 
 
 Profit 
  attributable 
  to 
  shareholders              1,418            114             43            216            176          (220)          1,747 
                     ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 
 Earnings per 
  share                     28.8p           2.3p           0.9p           4.4p           3.6p         (4.5)p          35.5p 
                     ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 
 
 Weighted average 
  number 
  of 
  shares 
  (millions)                4,917                                                                                     4,917 
                     ------------                                                                              ------------ 
 
 
 Major restructuring and integration 
  Within the Pharmaceuticals sector, the highly regulated manufacturing 
  operations and supply chains and long lifecycle of the business mean 
  that restructuring programmes, particularly those that involve the 
  rationalisation or closure of manufacturing or R&D sites are likely 
  to take several years to complete. 
  Major restructuring costs are those related to specific Board approved 
  Major restructuring programmes and are excluded from Adjusted results. 
  Major restructuring programmes, including integration costs following 
  material acquisitions, are those that are structural and are of a 
  significant scale where the costs of individual or related projects 
  exceed GBP25 million. Other ordinary course smaller scale restructuring 
  costs are retained within Total and Adjusted results. 
 
 
 Total Major restructuring charges incurred in the quarter were GBP199 
  million (Q3 2018: GBP283 million), analysed as follows: 
 
 
                                               Q3 2019                    Q3 2018 
                             -------------------------  ------------------------- 
 
                               Cash   Non-cash   Total    Cash   Non-cash   Total 
                               GBPm       GBPm    GBPm    GBPm       GBPm    GBPm 
                             ------  ---------  ------  ------  ---------  ------ 
 
 2018 major restructuring 
  programme (incl. Tesaro)       68         45     113     128          -     128 
 Consumer Healthcare 
  Joint 
  Venture integration 
  Programme                     104          -     104       -          -       - 
 Combined restructuring 
  and 
  integration programme        (30)         12    (18)     136         19     155 
 
                                142         57     199     264         19     283 
                             ------  ---------  ------  ------  ---------  ------ 
 
 
 
 Cash charges arose from restructuring of the manufacturing organisation, 
  R&D and some administrative functions, and the integration of Tesaro 
  under the 2018 major restructuring programme, as well as initial 
  integration costs under the Consumer Healthcare Joint Venture integration 
  programme. The reduction in cash charges under the Combined restructuring 
  and integration programme arose from a profit on sale of land. Non-cash 
  charges arising under the 2018 major restructuring programme primarily 
  related to the write-down of assets as part of the plans to reduce 
  the manufacturing network. Non-cash charges under the Combined restructuring 
  and integration programme primarily related to announced plans to 
  restructure the manufacturing network. 
  Total cash payments made in the quarter were GBP105 million, GBP28 
  million for the existing Combined restructuring and integration programme 
  (Q3 2018: GBP140 million) and GBP39 million under the 2018 major 
  restructuring programme including the settlement of certain charges 
  accrued in previous quarters and a further GBP38 million relating 
  to the Consumer Healthcare Joint Venture integration programme. 
  The analysis of Major restructuring charges by business was as follows: 
 
 
                                    Q3 2019   Q3 2018 
                                       GBPm      GBPm 
                                   --------  -------- 
 
 Pharmaceuticals                         47       191 
 Vaccines                                31        29 
 Consumer Healthcare                    125        36 
                                   --------  -------- 
 
                                        203       256 
 Corporate & central functions          (4)        27 
                                   --------  -------- 
 
 Total Major restructuring costs        199       283 
                                   --------  -------- 
 
 
 
 The analysis of Major restructuring charges by Income statement line 
  was as follows: 
 
 
                                        Q3 2019   Q3 2018 
                                           GBPm      GBPm 
                                       --------  -------- 
 
 Cost of sales                              108        69 
 Selling, general and administration         77       209 
 Research and development                    12         4 
 Other operating expense                      2         1 
 
 Total Major restructuring costs            199       283 
                                       --------  -------- 
 
 
 
 The Major restructuring programmes delivered incremental cost savings 
  in the quarter of GBP0.1 billion. 
 
 
 Transaction-related adjustments 
  Transaction-related adjustments resulted in a net charge of GBP481 
  million (Q3 2018: GBP247 million). This primarily reflected GBP305 
  million of accounting charges for the re-measurement of the contingent 
  consideration liabilities related to the acquisitions of the former 
  Shionogi-ViiV Healthcare joint venture and the former Novartis Vaccines 
  business and the liabilities for the Pfizer put option and Pfizer 
  and Shionogi preferential dividends in ViiV Healthcare. 
 
 
                                                         Q3 2019   Q3 2018 
 Charge/(credit)                                            GBPm      GBPm 
                                                        --------  -------- 
 
 Contingent consideration on former Shionogi-ViiV 
  Healthcare joint venture 
  (including Shionogi preferential dividends)                255       214 
 ViiV Healthcare put options and Pfizer preferential 
  dividends                                                 (10)      (20) 
 Contingent consideration on former Novartis Vaccines 
  business                                                    60        54 
 Other adjustments                                           176       (1) 
                                                        --------  -------- 
 
 Total transaction-related charges                           481       247 
                                                        --------  -------- 
 
 
 
 The GBP255 million charge relating to the contingent consideration 
  for the former Shionogi-ViiV Healthcare joint venture represented 
  an increase in the valuation of the contingent consideration due 
  to Shionogi, primarily as a result of updated exchange rate assumptions 
  and a GBP109 million unwind of the discount. 
  Other adjustments included the unwind of the fair market value uplift 
  on inventory (GBP148 million) as well as transaction costs arising 
  on completion of the Consumer Healthcare Joint venture with Pfizer. 
  An explanation of the accounting for the non-controlling interests 
  in ViiV Healthcare is set out on page 10. 
  Divestments, significant legal charges and other items 
  Divestments and other items included a gain in the quarter of GBP295 
  million arising from the increase in value of the shares in Hindustan 
  Unilever Limited to be received on the disposal of Horlicks and other 
  Consumer Healthcare brands. This was partly offset by certain other 
  Adjusting items. A charge of GBP18 million (Q3 2018: GBP12 million) 
  for significant legal matters included the benefit of the settlement 
  of existing matters as well as provisions for ongoing litigation. 
  Significant legal cash payments were GBP5 million (Q3 2018: GBP12 
  million). 
 
 
 Financial performance - nine months 2019 
 
 
 Total results 
 
 
 The Total results for the Group are set out below. 
 
 
                                           9 months   9 months 
                                               2019       2018   Growth   Growth 
                                               GBPm       GBPm     GBP%     CER% 
                                          ---------  ---------  -------  ------- 
 
 Turnover                                    24,855     22,624       10        7 
 
 Cost of sales                              (8,615)    (7,337)       17       17 
                                          ---------  ---------  -------  ------- 
 
 Gross profit                                16,240     15,287        6        2 
 
 Selling, general and administration        (7,959)    (7,295)        9        7 
 Research and development                   (3,325)    (2,817)       18       14 
 Royalty income                                 269        220       22       22 
 Other operating expense                      (166)    (1,466) 
                                          ---------  ---------  -------  ------- 
 
 Operating profit                             5,059      3,929       29       20 
 
 Finance income                                  87         57 
 Finance expense                              (706)      (589) 
 Profit on disposal of associates                 -          3 
 Share of after tax profits 
  of associates 
  and joint ventures                             70         26 
                                          ---------  ---------  -------  ------- 
 
 Profit before taxation                       4,510      3,426       32       22 
 
 Taxation                                     (759)      (680) 
 Tax rate %                                   16.8%      19.8% 
                                          ---------  ---------  -------  ------- 
 
 Profit after taxation                        3,751      2,746       37       27 
                                          ---------  ---------  -------  ------- 
 
 Profit attributable to non-controlling 
  interests                                     405        338 
 Profit attributable to shareholders          3,346      2,408 
                                          ---------  ---------  -------  ------- 
 
                                              3,751      2,746       37       27 
                                          ---------  ---------  -------  ------- 
 
 Earnings per share                           67.7p      49.0p       38       28 
                                          ---------  ---------  -------  ------- 
 
 
 
 Adjusted results 
  The Adjusted results for the Group are set out below. Reconciliations 
  between Total results and Adjusted results for the nine months 2019 
  and the nine months 2018 are set out on pages 34 and 35. 
 
 
                                                                       9 months 2019 
                                ---------------------------------------------------- 
 
                                                                Reported   Pro-forma 
                                                % of   Growth     growth      growth 
                                    GBPm    turnover     GBP%       CER%        CER% 
                                --------  ----------  -------  ---------  ---------- 
 
 Turnover                         24,855         100       10          7           5 
 
 Cost of sales                   (7,231)      (29.1)        9          8           6 
 Selling, general and 
  administration                 (7,598)      (30.6)       10          7           5 
 Research and development        (3,175)      (12.8)       17         13          12 
 Royalty income                      269         1.1       22         22          22 
                                --------  ----------  -------  ---------  ---------- 
 
 Adjusted operating 
  profit                           7,120        28.6        9          3           2 
                                --------  ----------  -------  ---------  ---------- 
 
 Adjusted profit before 
  tax                              6,577                    9          3 
 Adjusted profit after 
  tax                              5,466                   12          7 
 Adjusted profit attributable 
  to 
  shareholders                     4,904                   13          7 
                                --------  ----------  -------  --------- 
 
 Adjusted earnings 
  per share                        99.2p                   12          7 
                                --------  ----------  -------  --------- 
 
 
 
 Operating profit by 
  business                                                      9 months 2019 
                         ---------------------------------------------------- 
 
                                                         Reported   Pro-forma 
                                         % of   Growth     growth      growth 
                             GBPm    turnover     GBP%       CER%        CER% 
                         --------  ----------  -------  ---------  ---------- 
 
 Pharmaceuticals            6,029        46.4      (1)        (5)         (5) 
 Pharmaceuticals R&D*     (2,442)                   29         24          24 
                         --------  ----------  -------  ---------  ---------- 
 
 Total Pharmaceuticals      3,587        27.6     (14)       (17)        (17) 
 Vaccines                   2,388        44.1       57         47          47 
 Consumer Healthcare        1,434        22.3       23         19           9 
                         --------  ----------  -------  ---------  ---------- 
 
                            7,409        29.8        8          3           2 
 Corporate & other 
  unallocated 
  costs                     (289) 
 
 Adjusted operating 
  profit                    7,120        28.6        9          3           2 
                         --------  ----------  -------  ---------  ---------- 
 
 
 
 *   Operating profit of Pharmaceuticals R&D segment, which is the responsibility 
      of the Chief Scientific Officer and President, R&D. It excludes 
      ViiV Healthcare R&D expenditure, which is reported within the Pharmaceuticals 
      segment. 
 
 
 Turnover 
 
 
 Pharmaceuticals turnover 
 
 
                                           9 months 2019 
                               ------------------------- 
 
                                         Growth   Growth 
                                  GBPm     GBP%     CER% 
                               -------  -------  ------- 
 
 Respiratory                     2,189       23       18 
 HIV                             3,597        4        1 
 Immuno-inflammation               443       32       25 
 Oncology                          164        -        - 
 Established Pharmaceuticals     6,603      (4)      (6) 
                               ------- 
 
                                12,996        4        1 
                               ------- 
 
 US                              5,444        2      (4) 
 Europe                          3,077        4        4 
 International                   4,475        7        6 
                               -------  -------  ------- 
 
                                12,996        4        1 
                               -------  -------  ------- 
 
 
 
 Pharmaceuticals turnover in the nine months was GBP12,996 million, 
  up 4% AER, 1% CER. Respiratory sales were up 23% AER, 18% CER, to 
  GBP2,189 million, on growth of Trelegy Ellipta and Nucala. HIV sales 
  were up 4% AER, 1% CER, to GBP3,597 million, with growth in Juluca 
  and Dovato partly offset by a decline in Triumeq. Sales of Established 
  Pharmaceuticals were GBP6,603 million, down 4% AER, 6% CER, including 
  the impact of loss of exclusivity of Advair. 
  In the US, sales grew 2% AER but declined 4% CER. Excluding Advair 
  and Relvar/Breo Ellipta, impacted by genericisation of the ICS/LABA 
  market, growth was 15% AER, 9% CER. Continued growth of Nucala, Trelegy 
  Ellipta and Benlysta was offset by the decline in Established Products 
  including the loss of exclusivity of Advair. In Europe, sales grew 
  4% AER, 4% CER, with strong growth in Respiratory partly offset by 
  a decline in Established Pharmaceuticals. International grew 7% AER, 
  6% CER, with growth in all therapy areas. 
  Respiratory 
  Total Respiratory sales were up 23% AER, 18% CER, with strong growth 
  in all regions. Ellipta product sales grew 17% AER, 13% CER, with 
  Europe up 30% AER, 30% CER and International up 33% AER, 30% CER 
  on Trelegy and Relvar/Breo growth. Nucala was up 39% AER, 39% CER 
  in Europe and 65% AER, 56% CER in International. In the US, Trelegy 
  Ellipta and Nucala growth more than offset the decline in Relvar/Breo 
  Ellipta on post generic ICS/LABA price pressure. 
  Sales of Nucala were GBP550 million in the nine months and grew 41% 
  AER, 35% CER, continuing to benefit from the global rollout of the 
  product. US sales of Nucala grew 37% AER, 29% CER to GBP321 million. 
  Sales of Ellipta products were up 17% AER, 13% CER to GBP1,639 million, 
  driven by growth in Europe and International regions. In the US, 
  sales grew 8% AER, 2% CER, reflecting continued competitive pricing 
  pressures for ICS/LABAs, post generic Advair. Sales of Trelegy Ellipta 
  contributed GBP346 million globally in the nine months, driven by 
  an increase in US market share. 
  Relvar/Breo Ellipta sales were down 7% AER, 10% CER. This was driven 
  by the US, where Relvar/Breo Ellipta declined 31% AER, 35% CER as 
  a result of competitive pricing pressures and the impact of generic 
  Advair on the ICS/LABA market. In Europe and International, Relvar/Breo 
  Ellipta continued to grow, up 14% AER, 14% CER in Europe, and 23% 
  AER, 21% CER in International. 
  HIV 
  HIV sales grew 4% AER, 1% CER to GBP3,597 million in the nine months. 
  The dolutegravir franchise grew 7% AER, 3% CER, delivering sales 
  of GBP3,425 million. The remaining portfolio, with sales of GBP172 
  million (5% of total HIV sales), declined 26% AER, 26% CER and reduced 
  the overall HIV growth by two percentage points. 
  Sales of dolutegravir products were GBP3,425 million, with Triumeq 
  and Tivicay delivering sales of GBP1,911 million and GBP1,236 million, 
  respectively. The two-drug regimens, Juluca and Dovato, delivered 
  sales of GBP278 million in the nine months with combined growth more 
  than offsetting the decline in the three-drug regimen, Triumeq, as 
  the business transitions to the new portfolio. 
  In the US, following the launch of Dovato in April 2019, combined 
  sales of the two-drug regimens were GBP234 million. US dolutegravir 
  sales grew 5% AER but declined 1% CER, reflecting a year-on-year 
  share decline as the business transitions to the new two-drug portfolio, 
  partly offset by a net price benefit. In Europe, Dovato and Juluca 
  reported combined sales of GBP40 million, and total dolutegravir 
  sales grew 1% AER, 1% CER, with growth in market share more than 
  offsetting price erosion and the timing of clawback payments. International 
  performed strongly with total dolutegravir sales growth of 27% AER, 
  26% CER, driven by Tivicay and Triumeq. 
  Oncology 
  Sales of Zejula, were GBP163 million in the period from the date 
  of acquisition, comprising GBP97 million in the US and GBP66 million 
  in Europe. 
  Immuno-inflammation 
  Sales of Benlysta in the nine months were up 32% AER, 26% CER to 
  GBP443 million, including sales of the sub-cutaneous formulation 
  of GBP189 million. In the US, Benlysta grew 29% AER, 22% CER to GBP387 
  million. 
  Established Pharmaceuticals 
  Sales of Established Pharmaceuticals in the nine months were GBP6,603 
  million, down 4% AER, 6% CER. 
  Established Respiratory products declined 7% AER, 9% CER to GBP2,935 
  million, with the decline in Advair/Seretide partly offset by higher 
  sales of Ventolin and allergy products. In the US, a generic version 
  of Advair was launched in February, resulting in a 50% AER, 53% CER 
  decline in the nine months. In Europe, Seretide sales were down 15% 
  AER, 15% CER to GBP383 million, reflecting continued competition 
  from generic products and the transition of the Respiratory portfolio 
  to newer products. In International, sales of Seretide grew 1% AER 
  but were flat at CER. Globally, Ventolin grew by 36% AER, 32% CER, 
  driven by the strong uptake of an authorised generic version in the 
  US. 
  The remainder of the Established Pharmaceuticals portfolio declined 
  2% AER, 3% CER to GBP3,668 million, with Lamictal down 8% AER, 11% 
  CER to GBP421 million on generic competition in the US and International, 
  partly offset by growth in Augmentin in the nine months and a European 
  Relenza tender. 
 
 
 Vaccines turnover 
 
 
                                   9 months 2019 
                        ------------------------ 
 
                                 Growth   Growth 
                          GBPm     GBP%     CER% 
                        ------  -------  ------- 
 
 Meningitis                815       18       16 
 Influenza                 403       22       16 
 Shingles                1,278     >100     >100 
 Established Vaccines    2,919        3        1 
                        ------ 
 
                         5,415       23       19 
                        ------ 
 
 US                      2,996       47       39 
 Europe                  1,138      (4)      (4) 
 International           1,281        7        7 
                        ------  -------  ------- 
 
                         5,415       23       19 
                        ------  -------  ------- 
 
 
 
 Vaccines turnover grew 23% AER, 19% CER to GBP5,415 million, primarily 
  driven by growth in sales of Shingrix. Meningitis vaccines also contributed 
  to growth mainly due to Bexsero demand and share gains in the US 
  together with stronger demand in International. Influenza vaccines 
  sales were up 22% AER, 16% CER to GBP403 million, primarily due to 
  share gains in the US and International together with the favourable 
  impact of phasing and a prior-year returns provision reversal in 
  the US. Established Vaccines grew 3% AER, 1% CER to GBP2,919 million, 
  primarily reflecting strong growth in Boostrix, Infanrix, Pediarix 
  and Hepatitis, partly offset by supply constraints in MMRV vaccines 
  and lower Cervarix demand in International. 
 
  Meningitis 
  Meningitis sales grew 18% AER, 16% CER to GBP815 million. Bexsero 
  sales grew 21% AER, 19% CER to GBP567 million, driven by demand and 
  share gains in the US together with stronger demand in International 
  and Europe, partly offset by the completion of the vaccination of 
  catch-up cohorts in certain markets in Europe. Menveo grew 7% AER, 
  3% CER, primarily reflecting improved supply in International. 
 
  Influenza 
  Fluarix/FluLaval sales were up 22% AER, 16% CER to GBP403 million, 
  primarily due to share gains in the US and International together 
  with the favourable impact of phasing and a prior-year returns provision 
  reversal in the US. 
 
  Shingles 
  Shingrix recorded sales of GBP1,278 million, primarily driven by 
  continued strong uptake and the favourable benefit of prior-period 
  rebate adjustments in the US. Germany and Canada also contributed 
  to growth. 
 
  Established Vaccines 
  Sales of DTPa-containing vaccines (Infanrix, Pediarix and Boostrix) 
  grew 15% AER, 12% CER. Boostrix sales were up 20% AER, 17% CER to 
  GBP454 million mainly due to strong demand and favourable phasing 
  in International together with share gains and higher demand in the 
  US. 
 
  Infanrix/Pediarix sales grew 12% AER, 9% CER to GBP577 million, reflecting 
  favourable US CDC stockpile movements and stronger demand in International, 
  partly offset by competitive pressures in Europe. 
 
  Hepatitis vaccines grew 10% AER, 6% CER to GBP679 million, primarily 
  due to favourable CDC stockpile movements and the continued benefit 
  from a competitor supply shortage in the US, partly offset by supply 
  constraints and lower demand in Europe. 
 
  Synflorix sales grew 8% AER, 8% CER to GBP344 million, primarily 
  due to stronger demand in both International and Europe. 
 
  Rotarix sales were up 8% AER, 6% CER to GBP417 million, reflecting 
  stronger demand in International. 
 
  MMRV vaccines sales declined 33% AER, 33% CER to GBP162 million, 
  largely driven by supply constraints in Europe and International. 
 
  Cervarix sales were down 49% AER, 49% CER to GBP63 million, reflecting 
  competitive pressure in China and lower demand elsewhere in International. 
 
 
 Consumer Healthcare turnover                9 months 2019 
                                  ------------------------ 
 
                                           Growth   Growth 
                                    GBPm     GBP%     CER% 
                                  ------  -------  ------- 
 
 Wellness                          3,232       10        8 
 Oral health                       2,022        8        6 
 Nutrition                           713       46       43 
 Skin health                         457        1        - 
                                  ------  -------  ------- 
 
                                   6,424       12       10 
                                  ------  -------  ------- 
 
 US                                1,694       27       19 
 Europe                            1,835        2        2 
 International                     2,895       11       10 
                                  ------  -------  ------- 
 
                                   6,424       12       10 
                                  ------  -------  ------- 
 
 Pro-forma growth                                        2 
                                                   ------- 
 
 
 
 Consumer Healthcare sales grew 12% AER, 10% CER to GBP6,424 million 
  in the nine months. On a pro-forma basis, sales grew 2% CER, driven 
  largely by the International region with double digit growth in India 
  and China. At a category level, strong growth in Oral health was 
  partly offset by a decline in Skin health. 
 
  Divestments and the phasing out of low margin contract manufacturing 
  had a negative impact of approximately one percentage point on pro-forma 
  growth. 
 
  Sales of the Consumer Healthcare business include nine weeks of legacy 
  Pfizer brand sales arising after the creation of the Joint Venture. 
  The legacy Pfizer brands have been included in the existing categories 
  and geographic regions used to report Consumer Healthcare sales. 
  GSK expects to revise this category structure for reporting from 
  Q1 2020 onwards. 
 
  Wellness 
  Wellness sales grew 10% AER, 8% CER to GBP3,232 million. On a pro-forma 
  basis, sales grew in low single digits, with a strong performance 
  in Pain relief partly offset by a decline in Respiratory and the 
  phasing out of low margin contract manufacturing. In the Pain relief 
  category, Panadol continued to perform strongly, particularly in 
  the Middle East and Africa, and benefited from 2018 regulatory and 
  distribution changes. Voltaren sales grew in low single-digits, reflecting 
  a stronger Q3 performance. Respiratory sales declined as Flonase 
  growth was offset by a decline in Theraflu, following a strong cold 
  and flu season comparator in 2018. Growth was also impacted by weak 
  performances in other Respiratory brands. 
  Oral health 
  Oral health grew 8% AER, 6% CER to GBP2,022 million. Sensodyne reported 
  broad-based, double-digit growth, benefiting from major innovation 
  launches. Gum health sales saw double digit-growth, reflecting strong 
  performances in Europe and the US. Denture care grew in low single-digits. 
  Oral health growth was also impacted by a decline in non-strategic 
  brands. 
  Nutrition 
  Nutrition sales grew 46% AER, 43% CER to GBP713 million, largely 
  due to the inclusion of the Pfizer vitamins, minerals and supplements 
  portfolio. On a pro-forma basis, sales grew in low single digits, 
  with India growing in high single digits. 
  Skin health 
  Skin health sales of GBP457 million grew 1% AER, but were flat at 
  CER, largely due to the addition of Chapstick from the Pfizer portfolio, 
  offset by declines in other Skin health brands. On a pro-forma basis, 
  sales declined in mid-single digits, largely due to divestments of 
  small tail brands in the US and UK, which had a negative impact on 
  pro-forma growth of the category of four percentage points. 
 
 
 Operating performance 
 
 
 Cost of sales 
  Total cost of sales as a percentage of turnover was 34.7%, 2.2 percentage 
  points higher at AER and 2.9 percentage points higher in CER terms 
  compared with 2018. This reflected an increase in the costs of manufacturing 
  restructuring programmes, primarily as a result of write downs in 
  a number of manufacturing sites, the unwind of the fair market value 
  uplift on inventory arising on completion of the Consumer Healthcare 
  Joint Venture with Pfizer as well as increased amortisation of intangible 
  assets. 
  Excluding these and other Adjusting items, Adjusted cost of sales 
  as a percentage of turnover was 29.1%, down 0.3 percentage points 
  at AER, but 0.3 percentage points higher at CER compared with 2018. 
  On a pro-forma basis, Adjusted cost of sales as a percentage of turnover 
  was 29.1%, 0.2 percentage points higher at CER, compared with 2018. 
  This reflected continued adverse pricing pressure in Pharmaceuticals, 
  particularly in Respiratory, an unfavourable product mix in Pharmaceuticals 
  and a non-restructuring related write down in a manufacturing site. 
  This was partly offset by a more favourable product mix in Vaccines, 
  primarily due to growth of Shingrix in the US and in Consumer Healthcare, 
  a favourable impact of inventory adjustments in Vaccines and a further 
  contribution from integration and restructuring savings in Pharmaceuticals 
  and Consumer Healthcare. 
  Selling, general and administration 
  Total SG&A costs as a percentage of turnover were 32.0%, 0.2 percentage 
  points lower at AER but flat on a CER basis. This included increased 
  significant legal costs, costs related to the acquisition of the 
  Pfizer consumer healthcare business, as well as a reversal of an 
  indemnity receivable from Novartis following a tax settlement, with 
  an equivalent release of a tax provision which was reflected in the 
  tax charge, partly offset by reduced restructuring costs. 
  Excluding these and other Adjusting items, Adjusted SG&A costs as 
  a percentage of turnover were 30.6%, 0.1 percentage points lower 
  at AER than in 2018 but 0.1 percentage points higher on a CER basis. 
  On a pro-forma basis, Adjusted SG&A costs as a percentage of turnover 
  was 30.6%, flat at CER, compared with 2018. 
  The growth in Adjusted SG&A costs of 10% AER, 7% CER and 5% CER on 
  a pro-forma basis reflected increased investment resulting from the 
  acquisition of Tesaro and in promotional product support, particularly 
  for new launches in Vaccines, Respiratory and HIV as well as increased 
  costs for a number of legal settlements in Q3 2019. This was partly 
  offset by the continuing benefit of restructuring in Pharmaceuticals 
  and the tight control of ongoing costs, particularly in non-promotional 
  spending across all three businesses. 
  Research and development 
  Total R&D expenditure was GBP3,325 million (13.4 % of turnover), 
  up 18% AER, 14% CER. Adjusted R&D expenditure was GBP3,175 million 
  (12.8% of turnover), 17% higher at AER, 13% higher at CER than the 
  same period in 2018. On a pro-forma basis, Adjusted R&D expenditure 
  grew 12% CER compared with 2018. 
  Pharmaceuticals R&D expenditure was GBP2,449 million, up 21% AER, 
  16% CER, reflecting a significant increase in study and clinical 
  trial material investment in Oncology compared with the 9 months 
  to September 2018, reflecting the progression of assets from the 
  Tesaro acquisition, primarily Zejula and TSR-042, and a number of 
  other programmes, including BCMA, NY-ESO and ICOS. R&D expenditure 
  in Vaccines and Consumer Healthcare was GBP532 million and GBP194 
  million, respectively. 
 
 
 Royalty income 
  Royalty income was GBP269 million (2018: GBP220 million), up 22% 
  AER, 22% CER, primarily reflecting increased royalties on sales of 
  Gardasil. 
  Other operating expense 
  Net other operating expense of GBP166 million (2018: GBP1,466 million) 
  primarily reflected accounting charges of GBP408 million (2018: GBP1,617 
  million) arising from the re-measurement of the contingent consideration 
  liabilities related to the acquisitions of the former Shionogi-ViiV 
  Healthcare joint venture and the former Novartis Vaccines business 
  and the liabilities for the Pfizer put option and Pfizer and Shionogi 
  preferential dividends in ViiV Healthcare. 
  This included a re-measurement charge of GBP421 million (2018: GBP927 
  million) for the contingent consideration liability due to Shionogi, 
  primarily arising from changes in exchange rate assumptions and the 
  unwind of the discount. 2018 also included a re-measurement charge 
  of GBP658 million in relation to the Consumer Healthcare put option. 
  In addition there was an increase in value of the shares in Hindustan 
  Unilever Limited to be received on the disposal of Horlicks and other 
  Consumer Healthcare brands of GBP247 million in the nine months. 
  The cumulative increase in value since the signing of the proposed 
  transaction was GBP345 million. This was partly offset by the profit 
  on a number of asset disposals. 
 
 
 Operating profit 
  Total operating profit was GBP5,059 million in the nine months compared 
  with GBP3,929 million in 2018. Reduced re-measurement charges on 
  the contingent consideration liabilities, no Consumer Healthcare 
  put option charge and an increase in value of the shares in Hindustan 
  Unilever Limited to be received on the disposal of Horlicks and other 
  Consumer Healthcare brands were partly offset by increased charges 
  for major restructuring, primarily arising from write downs in a 
  number of manufacturing sites. 
  Excluding these and other Adjusting items, Adjusted operating profit 
  was GBP7,120 million, 9% higher than 2018 at AER and 3% higher at 
  CER on a turnover increase of 7% CER. The Adjusted operating margin 
  of 28.6% was 0.3 percentage points lower at AER, and 1.0 percentage 
  points lower on a CER basis than in 2018. On a pro-forma basis, Adjusted 
  operating profit was 2% higher at CER on a turnover increase of 5% 
  CER. The Adjusted pro-forma operating margin of 28.6% was 0.9 percentage 
  points lower on a CER basis than in 2018. 
  The increase in Adjusted operating profit primarily reflected the 
  benefit from sales growth in all three businesses, particularly Vaccines, 
  a more favourable mix in Vaccines and Consumer Healthcare, a benefit 
  from favourable inventory adjustments in Vaccines, the continued 
  benefit of restructuring and tight control of ongoing costs across 
  all three businesses. This was partly offset by continuing price 
  pressure, particularly in Respiratory, including the impact of the 
  launch of a generic version of Advair in the US in February 2019, 
  investment in R&D including a significant increase in Oncology investment, 
  partly on the assets from the Tesaro acquisition, and investments 
  in promotional product support, particularly for new launches in 
  Vaccines, HIV and Respiratory. 
  Contingent consideration cash payments which are made to Shionogi 
  and other companies reduce the balance sheet liability and hence 
  are not recorded in the income statement. Total contingent consideration 
  cash payments in the nine months amounted to GBP660 million (2018: 
  GBP915 million). This included cash payments made to Shionogi of 
  GBP645 million (2018: GBP584 million). 
  Operating profit by business 
  Pharmaceuticals operating profit was GBP3,587 million, down 14% AER, 
  17% CER on a turnover increase of 1% CER. The operating margin of 
  27.6% was 6.0 percentage points lower at AER than in 2018 and 6.2 
  percentage points lower on a CER basis. This primarily reflected 
  the increase in cost of sales percentage due to the continued impact 
  of lower prices, particularly in Respiratory, including the impact 
  of the launch of a generic version of Advair in the US in February 
  2019, an unfavourable product mix, primarily as a result of the growth 
  in some lower margin established products, a non-restructuring related 
  write down in a manufacturing site in Q3 and higher legal costs, 
  together with a significant increase in Oncology R&D investment and 
  investment in new product support and targeted priority markets. 
  This was partly offset by the continued benefit of restructuring 
  and tight control of ongoing costs and the benefits of re-prioritisation 
  of the R&D portfolio. 
  Vaccines operating profit was GBP2,388 million, 57% AER, 47% CER 
  higher than in 2018 on a turnover increase of 19% CER. The operating 
  margin of 44.1% was 9.6 percentage points higher at AER than in 2018 
  and 8.2 percentage points higher on a CER basis. This was primarily 
  driven by enhanced operating leverage from strong sales growth, particularly 
  Shingrix in the US, improved product mix and higher royalty income. 
  Increased SG&A investment to support business growth was partly offset 
  by income from one-off settlements. 
 
  Consumer Healthcare operating profit was GBP1,434 million, up 23% 
  AER, 19% CER higher on a turnover increase of 10% CER. On a pro-forma 
  basis, operating profit was GBP1,434 million, 9% CER higher on a 
  turnover increase of 2% CER. The operating margin of 22.3% was 2.1 
  percentage points higher at AER and 1.7 percentage points higher 
  on a CER basis than in 2018. The pro-forma operating margin of 22.3% 
  was 1.4 percentage points higher on a CER basis. This primarily reflected 
  continued manufacturing restructuring savings, improved growth from 
  higher margin power brands and divestment of lower margin tail products 
  as well as tight control of promotional and other operating expenses. 
 
  Net finance costs 
  Total net finance costs were GBP619 million compared with GBP532 
  million in 2018. Adjusted net finance costs were GBP613 million compared 
  with GBP525 million in 2018. The increase primarily reflected higher 
  debt levels following the acquisition from Novartis of its stake 
  in the Consumer Healthcare Joint Venture in June 2018 and the acquisition 
  of Tesaro in January 2019, as well as an adverse comparison with 
  a one-off accounting adjustment of GBP20 million to amortisation 
  of interest charges in 2018. This was partly offset by the benefit 
  from older bonds being refinanced at lower interest rates, a fair 
  value gain on interest rate swaps and interest of GBP23 million in 
  Q3 2018 on an historic tax settlement. Following the introduction 
  of IFRS 16, 'Leases', finance costs included an unwind of the discount 
  on the lease liability of GBP29 million in the nine months. 
  Share of after tax profits of associates and joint ventures 
  The share of after tax profits of associates was GBP70 million (2018: 
  GBP26 million). This included a one-off adjustment of GBP51 million 
  to reflect GSK's share of increased after tax profits of Innoviva 
  primarily as a result of a non-recurring income tax benefit. 
  Taxation 
  The charge of GBP759 million represented an effective tax rate on 
  Total results of 16.8% (2018: 19.8%) and reflected the different 
  tax effects of the various Adjusting items, including the non-taxable 
  profit arising from the increase in value of the shares in Hindustan 
  Unilever Limited to be received on the disposal of Horlicks and other 
  Consumer Healthcare brands as well as recognition of a deferred tax 
  liability as a result of disposal of a manufacturing site. Tax on 
  Adjusted profit amounted to GBP1,111 million and represented an effective 
  Adjusted tax rate of 16.9% (2018: 19.5%), reflecting the impact of 
  the settlement of a number of open issues with tax authorities. 
 
  Issues related to taxation are described in Note 14, 'Taxation' in 
  the Annual Report 2018. The Group continues to believe it has made 
  adequate provision for the liabilities likely to arise from periods 
  which are open and not yet agreed by tax authorities. The ultimate 
  liability for such matters may vary from the amounts provided and 
  is dependent upon the outcome of agreements with relevant tax authorities. 
  Non-controlling interests 
  The allocation of Total earnings to non-controlling interests amounted 
  to GBP405 million (2018: GBP338 million). The increase was primarily 
  due to an increased allocation of ViiV Healthcare profits to GBP290 
  million (2018: GBP175 million) and higher net profits in some of 
  the Group's other entities with non-controlling interests. This was 
  partly offset by the lower allocation of Consumer Healthcare profits 
  of GBP47 million (2018: GBP117 million) following the buyout of Novartis' 
  interest in June 2018 and the completion of the new Consumer Healthcare 
  Joint Venture with Pfizer on 31 July 2019. 
  The allocation of Adjusted earnings to non-controlling interests 
  amounted to GBP562 million (2018: GBP535 million). The increase in 
  allocation was again primarily due to increased allocation of ViiV 
  Healthcare profits of GBP391 million (2018: GBP371 million) and higher 
  net profits in some of the Group's other entities with non-controlling 
  interests, partly offset by the lower allocation of Consumer Healthcare 
  profits of GBP103 million (2018: GBP118 million). 
  Earnings per share 
  Total earnings per share was 67.7p, compared with 49.0p in 2018. 
  The increase in earnings per share primarily reflected reduced re-measurement 
  charges on the contingent consideration liabilities and put options, 
  an increase in the value of the shares in Hindustan Unilever Limited 
  to be received on the disposal of Horlicks and other Consumer Healthcare 
  brands, an improved trading performance, a reduced effective tax 
  rate and the increased share of after tax profit of the associate 
  Innoviva. 
  Adjusted EPS of 99.2p compared with 88.3p in 2018, up 12% AER, 7% 
  CER, on a 3% CER increase in Adjusted operating profit. The improvement 
  primarily resulted from the lower non-controlling interest allocation 
  of Consumer Healthcare profits, a reduced effective tax rate and 
  an increased share of after tax profits of associates as a result 
  of a non-recurring income tax benefit in Innoviva, partly offset 
  by increased net finance costs. 
  Currency impact on nine months 2019 results 
  The results for the nine months to September 2019 are based on average 
  exchange rates, principally GBP1/$1.27, GBP1/EUR1.13 and GBP1/Yen 
  139. Comparative exchange rates are given on page 55. The period-end 
  exchange rates were GBP1/$1.23, GBP1/EUR1.13 and GBP1/Yen 133. 
  In the nine months, turnover increased 10% AER, 7% CER. Total EPS 
  was 67.7p compared with 49.0p in 2018. Adjusted EPS was 99.2p compared 
  with 88.3p in 2018, up 12% AER, 7% CER. The positive currency impact 
  primarily reflected the weakness of Sterling, particularly against 
  the US$ and Yen, partly offset by weakness in emerging market currencies, 
  relative to 2018. Exchange gains or losses on the settlement of intercompany 
  transactions had a negligible impact on the positive currency impact 
  of five percentage points on Adjusted EPS. 
 
 
 Adjusting items 
  The reconciliations between Total results and Adjusted results for 
  the nine months 2019 and the nine months 2018 are set out below. 
 
 
 Nine months ended 30 September 2019 
 
 
                                                                                                Divestments, 
                                                                                                 significant 
                                                                                                       legal 
                                      Intangible     Intangible          Major                           and 
                            Total         amort-        impair-      restruct-   Transaction-          other       Adjusted 
                          results        isation           ment          uring        related          items        results 
                             GBPm           GBPm           GBPm           GBPm           GBPm           GBPm           GBPm 
                     ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 Turnover                  24,855                                                                                    24,855 
 Cost of sales            (8,615)            550             27            647            160                       (7,231) 
                     ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 Gross profit              16,240            550             27            647            160                        17,624 
 
 Selling, general 
  and 
  administration          (7,959)                             5            169            100             87        (7,598) 
 Research and 
  development             (3,325)             48             30             71                             1        (3,175) 
 Royalty income               269                                                                                       269 
 Other operating 
  (expense)/income          (166)                                            1            415          (250)              - 
                     ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 Operating profit           5,059            598             62            888            675          (162)          7,120 
 
 Net finance costs          (619)                                            4                             2          (613) 
 Share of after 
  tax 
  profits of 
  associates and 
  joint 
  ventures                     70                                                                                        70 
                     ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 Profit before 
  taxation                  4,510            598             62            892            675          (160)          6,577 
 
 Taxation                   (759)          (115)           (11)          (150)          (139)             63        (1,111) 
 Tax rate %                 16.8%                                                                                     16.9% 
                     ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 Profit after 
  taxation                  3,751            483             51            742            536           (97)          5,466 
                     ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 Profit 
  attributable 
  to 
  non-controlling 
  interests                   405                                                         157                           562 
 
 Profit 
  attributable 
  to 
  shareholders              3,346            483             51            742            379           (97)          4,904 
                     ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 
 Earnings per 
  share                     67.7p           9.8p           1.0p          15.0p           7.7p         (2.0)p          99.2p 
                     ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 
 
 Weighted average 
  number 
  of 
  shares 
  (millions)                4,945                                                                                     4,945 
                     ------------                                                                              ------------ 
 
 
 Nine months ended 30 September 2018 
 
 
                                                                                                Divestments, 
                                                                                                 significant 
                                                                                                       legal 
                                      Intangible     Intangible          Major                           and 
                            Total         amort-        impair-      restruct-   Transaction-          other       Adjusted 
                          results        isation           ment          uring        related          items        results 
                             GBPm           GBPm           GBPm           GBPm           GBPm           GBPm           GBPm 
                     ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 Turnover                  22,624                                                                                    22,624 
 Cost of sales            (7,337)            400             69            211             11                       (6,646) 
                     ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 Gross profit              15,287            400             69            211             11                        15,978 
 
 Selling, general 
  and 
  administration          (7,295)                             2            267             61             32        (6,933) 
 Research and 
  development             (2,817)             30             33             27                            11        (2,716) 
 Royalty income               220                                                                                       220 
 Other operating 
  (expense)/income        (1,466)                                            1          1,634          (169)              - 
                     ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 Operating profit           3,929            430            104            506          1,706          (126)          6,549 
 
 Net finance costs          (532)                                            2                             5          (525) 
 Profit on 
  disposal 
  of associates                 3                                                                        (3)              - 
 Share of after 
  tax 
  profits of 
  associates and 
  joint 
  ventures                     26                                                                                        26 
                     ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 Profit before 
  taxation                  3,426            430            104            508          1,706          (124)          6,050 
 
 Taxation                   (680)           (85)           (15)          (122)          (201)           (77)        (1,180) 
 Tax rate %                 19.8%                                                                                     19.5% 
                     ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 Profit after 
  taxation                  2,746            345             89            386          1,505          (201)          4,870 
                     ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 Profit 
  attributable 
  to 
  non-controlling 
  interests                   338                                                         197                           535 
 
 Profit 
  attributable 
  to 
  shareholders              2,408            345             89            386          1,308          (201)          4,335 
                     ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 
 Earnings per 
  share                     49.0p           7.0p           1.8p           7.9p          26.6p         (4.0)p          88.3p 
                     ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 
 
 Weighted average 
  number 
  of 
  shares 
  (millions)                4,911                                                                                     4,911 
                     ------------                                                                              ------------ 
 
 
 Major restructuring and integration 
  Within the Pharmaceuticals sector, the highly regulated manufacturing 
  operations and supply chains and long lifecycle of the business mean 
  that restructuring programmes, particularly those that involve the 
  rationalisation or closure of manufacturing or R&D sites are likely 
  to take several years to complete. 
  Major restructuring costs are those related to specific Board approved 
  Major restructuring programmes and are excluded from Adjusted results. 
  Major restructuring programmes, including integration costs following 
  material acquisitions, are those that are structural and are of a 
  significant scale where the costs of individual or related projects 
  exceed GBP25 million. Other ordinary course smaller scale restructuring 
  costs are retained within Total and Adjusted results. 
  The Board approved a new Major restructuring programme in July 2018, 
  which is designed to significantly improve the competitiveness and 
  efficiency of the Group's cost base with savings delivered primarily 
  through supply chain optimisation and reductions in administrative 
  costs. 
  The Group acquired Tesaro in January 2019, and is expected to incur 
  around GBP50 million of integration and restructuring cash costs, 
  leading to annual cost-saving benefits of around GBP50 million. This 
  has been added to and reported as part of the 2018 Major restructuring 
  programme. 
  The completion of the new Consumer Healthcare Joint Venture with 
  Pfizer is expected to realise substantial cost synergies, generating 
  total annual cost savings of GBP0.5 billion by 2022 for expected 
  total major restructuring cash costs of GBP0.9 billion and non-cash 
  charges of GBP0.3 billion. Up to 25% of the cost savings are intended 
  to be reinvested in the business to support innovation and other 
  growth opportunities. 
 
 
 Total Major restructuring charges incurred in the nine months were 
  GBP888 million (2018: GBP506 million), analysed as follows: 
 
 
                                         9 months 2019              9 months 2018 
                             -------------------------  ------------------------- 
 
                               Cash   Non-cash   Total    Cash   Non-cash   Total 
                               GBPm       GBPm    GBPm    GBPm       GBPm    GBPm 
                             ------  ---------  ------  ------  ---------  ------ 
 
 2018 major restructuring 
  programme (incl. Tesaro)      179        549     728     128          -     128 
 Consumer Healthcare 
  Joint 
  Venture integration 
  programme                     135          -     135       -          -       - 
 Combined restructuring 
  and 
  integration programme         (8)         33      25     278        100     378 
 
                                306        582     888     406        100     506 
                             ------  ---------  ------  ------  ---------  ------ 
 
 
 
 Non-cash charges arising under the 2018 major restructuring programme 
  primarily related to the write-down of assets as part of the plans 
  to reduce the manufacturing network. Cash charges arose from restructuring 
  of the manufacturing organisation, R&D and some administrative functions 
  as well as the integration of Tesaro under the 2018 major restructuring 
  programme, and initial integration costs under the Consumer Healthcare 
  Joint Venture integration programme. Non-cash charges under the Combined 
  restructuring and integration programme primarily related to announced 
  plans to restructure the manufacturing network, and the reduction 
  in cash charges arose from a profit on sale of land. 
  Total cash payments made in the nine months were GBP390 million, 
  GBP247 million for the existing Combined restructuring and integration 
  programme (2018: GBP353 million) and GBP85 million under the 2018 
  major restructuring programme including the settlement of certain 
  charges accrued in previous quarters and a further GBP58 million 
  relating to the Consumer Healthcare Joint Venture integration programme. 
  The analysis of Major restructuring charges by business was as follows: 
 
 
                                    9 months   9 months 
                                        2019       2018 
                                        GBPm       GBPm 
                                   ---------  --------- 
 
 Pharmaceuticals                         615        295 
 Vaccines                                 48         76 
 Consumer Healthcare                     187        100 
                                   ---------  --------- 
 
                                         850        471 
 Corporate & central functions            38         35 
                                   ---------  --------- 
 
 Total Major restructuring costs         888        506 
                                   ---------  --------- 
 
 
 
 The analysis of Major restructuring charges by Income statement line 
  was as follows: 
 
 
                                        9 months   9 months 
                                            2019       2018 
                                            GBPm       GBPm 
                                       ---------  --------- 
 
 Cost of sales                               647        211 
 Selling, general and administration         169        267 
 Research and development                     71         27 
 Other operating expense                       1          1 
                                       ---------  --------- 
 
 Total Major restructuring costs             888        506 
                                       ---------  --------- 
 
 
 
 The Combined restructuring and integration programme delivered incremental 
  annual cost savings in the nine months of GBP0.2 billion. The 2018 
  major restructuring programme delivered incremental cost savings 
  in the nine months of GBP0.2 billion. 
  Total cash charges for the Combined restructuring and integration 
  programme are now expected to be approximately GBP4.1 billion with 
  non-cash charges up to GBP1.6 billion. The programme has now delivered 
  approximately GBP4.1 billion of annual savings, including an estimated 
  currency benefit of GBP0.3 billion. The programme is now expected 
  to deliver by 2020 total annual savings of GBP4.4 billion on a constant 
  currency basis, including an estimated benefit of GBP0.4 billion 
  from currency on the basis of the nine months 2019 average exchange 
  rates. 
 
  The 2018 major restructuring programme, now including Tesaro, is 
  expected to cost GBP1.75 billion over the period to 2021, with cash 
  costs of GBP0.85 billion and non-cash costs of GBP0.9 billion, and 
  is expected to deliver annual savings of around GBP450 million by 
  2021 (at September 2019 rates). These savings will be fully re-invested 
  to help fund targeted increases in R&D and commercial support of 
  new products. 
 
 
 Transaction-related adjustments 
  Transaction-related adjustments resulted in a net charge of GBP675 
  million (2018: GBP1,706 million). This primarily reflected GBP421 
  million of accounting charges for the re-measurement of the contingent 
  consideration liabilities related to the acquisitions of the former 
  Shionogi-ViiV Healthcare joint venture and the former Novartis Vaccines 
  business and the liabilities for the Pfizer put option and Pfizer 
  and Shionogi preferential dividends in ViiV Healthcare. 
 
 
                                                         9 months   9 months 
                                                             2019       2018 
 Charge/(credit)                                             GBPm       GBPm 
                                                        ---------  --------- 
 
 Consumer Healthcare Joint Venture put option                   -        658 
 Contingent consideration on former Shionogi-ViiV 
  Healthcare joint venture 
  (including Shionogi preferential dividends)                 421        927 
 ViiV Healthcare put options and Pfizer preferential 
  dividends                                                  (81)       (18) 
 Contingent consideration on former Novartis Vaccines 
  business                                                     68         50 
 Other adjustments                                            267         89 
                                                        ---------  --------- 
 
 Total transaction-related charges                            675      1,706 
                                                        ---------  --------- 
 
 
 
 The GBP421 million charge relating to the contingent consideration 
  for the former Shionogi-ViiV Healthcare joint venture represented 
  an increase in the valuation of the contingent consideration due 
  to Shionogi, primarily as a result of a GBP323 million unwind of 
  the discount and updated exchange rate assumptions, partly offset 
  by adjustments to sales forecasts. 
  Other adjustments included an unwind of the fair market value uplift 
  on inventory of GBP148 million and transaction costs arising on completion 
  of the Consumer Healthcare Joint Venture with Pfizer, as well as 
  a reversal of an indemnity receivable from Novartis following a tax 
  settlement, with an equivalent release of a tax provision. 
  An explanation of the accounting for the non-controlling interests 
  in ViiV Healthcare is set out on page 10. 
  Divestments, significant legal charges and other items 
  Divestments and other items included a gain in the nine months of 
  GBP247 million arising from the increase in value of the shares in 
  Hindustan Unilever Limited to be received on the disposal of Horlicks 
  and other Consumer Healthcare brands, as well as equity investment 
  impairments and certain other Adjusting items together with the profit 
  on a number of asset disposals. A charge of GBP87 million (2018: 
  GBP29 million) for significant legal matters included the benefit 
  of the settlement of existing matters as well as provisions for ongoing 
  litigation. Significant legal cash payments were GBP13 million (2018: 
  GBP24 million). 
 
 
 Cash generation 
 
 
 Cash flow 
 
 
                                                        9 months   9 months 
                                              Q3 2019       2019       2018 
                                             --------  ---------  --------- 
 
 Net cash inflow from operating activities 
  (GBPm)                                        2,515      4,567      4,302 
 Free cash flow* (GBPm)                         1,939      2,474      2,375 
 Free cash flow growth (%)                        25%         4%        42% 
 Free cash flow conversion* (%)                 >100%        74%        99% 
 Net debt** (GBPm)                             28,139     28,139     23,837 
                                             --------  ---------  --------- 
 
 
 *    Free cash flow and free cash flow conversion are defined on page 
       58. 
 **   Net debt is analysed on page 57. 
 
 
 Q3 2019 
  Net cash inflow from operating activities for the quarter was GBP2,515 
  million (Q3 2018: GBP2,077 million). The increase primarily reflected 
  improved operating profits, a lower seasonal increase in trade receivables 
  and the reclassification of lease payments from operating to financing 
  activities following the transition to IFRS 16, partly offset by 
  the adverse timing of payments for returns and rebates. 
  Total cash payments to Shionogi in relation to the ViiV Healthcare 
  contingent consideration liability in the quarter were GBP206 million 
  (Q3 2018: GBP208 million), of which GBP182 million was recognised 
  in cash flows from operating activities and GBP24 million was recognised 
  in contingent consideration paid within investing cash flows. These 
  payments are deductible for tax purposes. 
  Free cash flow was GBP1,939 million for the quarter (Q3 2018: GBP1,554 
  million). The increase primarily reflected improved operating profits, 
  a lower seasonal increase in trade receivables and inventory, lower 
  dividends to non-controlling interests and the reclassification of 
  lease payments from operating to financing activities following the 
  transition to IFRS 16. This was partly offset by the adverse timing 
  of payments for returns and rebates and lower disposals of intangible 
  assets compared with Q3 2018. 
 
 
 9 months 2019 
  The net cash inflow from operating activities for the nine months 
  was GBP4,567 million (2018: GBP4,302 million). The increase primarily 
  reflected improved operating profits, a lower seasonal increase in 
  trade receivables, lower contingent consideration payments compared 
  with 2018, which included a milestone payment to Novartis, and the 
  reclassification of lease payments from operating to financing activities 
  following the transition to IFRS 16, partly offset by the adverse 
  timing of payments for returns and rebates and the initial step-down 
  impact from US Advair generic competition. 
  Total cash payments to Shionogi in relation to the ViiV Healthcare 
  contingent consideration liability in the nine months were GBP645 
  million (2018: GBP584 million), of which GBP572 million was recognised 
  in cash flows from operating activities and GBP73 million was recognised 
  in contingent consideration paid within investing cash flows. These 
  payments are deductible for tax purposes. 
  Free cash flow was GBP2,474 million in the nine months (2018: GBP2,375 
  million). The increase primarily reflected improved operating profits, 
  a lower seasonal increase in trade receivables, lower contingent 
  consideration payments compared with 2018 which included a milestone 
  payment to Novartis, reduced dividend payments to non-controlling 
  interests and the reclassification of lease payments from operating 
  to financing activities following the transition to IFRS 16. This 
  was partly offset by the adverse timing of payments for returns and 
  rebates, as well as the initial step-down impact from US Advair generic 
  competition, increased capital expenditure including the acquisition 
  of intangible assets and increased interest payments. 
 
 
 Net debt 
  At 30 September 2019, net debt was GBP28.1 billion, compared with 
  GBP21.6 billion at 31 December 2018, comprising gross debt of GBP33.0 
  billion and cash and liquid investments of GBP4.9 billion, including 
  GBP0.5 billion reported within Assets held for sale. Net debt increased 
  due to the GBP3.9 billion acquisition of Tesaro Inc as well as GBP0.2 
  billion of Tesaro net debt, together with the GBP1.3 billion impact 
  from the implementation of IFRS 16, the dividend paid to shareholders 
  of GBP3.0 billion and GBP0.4 billion of unfavourable exchange impacts 
  from the translation of non-Sterling denominated debt, partly offset 
  by GBP2.5 billion of free cash flow. 
  At 30 September 2019, GSK had short-term borrowings (including overdrafts 
  and lease liabilities) repayable within 12 months of GBP8.2 billion 
  with loans of GBP3.4 billion repayable in the subsequent year. 
 
 
 Returns to shareholders 
 
 
 Quarterly dividends 
  The Board has declared a third interim dividend for 2019 of 19 pence 
  per share (Q3 2018: 19 pence per share). 
  GSK recognises the importance of dividends to shareholders and aims 
  to distribute regular dividend payments that will be determined primarily 
  with reference to the free cash flow generated by the business after 
  funding the investment necessary to support the Group's future growth. 
  The Board intends to maintain the dividend for 2019 at the current 
  level of 80p per share, subject to any material change in the external 
  environment or performance expectations. Over time, as free cash 
  flow strengthens, it intends to build free cash flow cover of the 
  annual dividend to a target range of 1.25-1.50x, before returning 
  the dividend to growth. 
  Payment of dividends 
  The equivalent interim dividend receivable by ADR holders will be 
  calculated based on the exchange rate on 7 January 2020. An annual 
  fee of $0.03 per ADS (or $0.0075 per ADS per quarter) (2018: $0.02 
  per ADS; $0.005 per ADS per quarter) is charged by the Depositary. 
  The ex-dividend date will be 14 November 2019, with a record date 
  of 15 November 2019 and a payment date of 9 January 2020. 
 
 
                           Paid/    Pence per 
                         payable        share   GBPm 
                  --------------   ----------  ----- 
 
 2019 
 First interim       11 July 2019          19    940 
                       10 October 
 Second interim              2019          19    941 
                        9 January 
 Third interim               2020          19    941 
 
 
 
 2018 
 First interim        12 July 2018   19     934 
                        11 October 
 Second interim               2018   19     934 
                        10 January 
 Third interim                2019   19     935 
 Fourth interim      11 April 2019   23   1,137 
                                    ---  ------ 
 
                                     80   3,940 
                                    ---  ------ 
 
 
 
 Weighted average number of shares 
                                          Q3 2019     Q3 2018 
                                         millions    millions 
                                       ----------  ---------- 
 
 Weighted average number of shares 
  - basic                                   4,951       4,917 
 Dilutive effect of share options 
  and share awards                             56          55 
                                       ----------  ---------- 
 
 Weighted average number of shares 
  - diluted                                 5,007       4,972 
                                       ----------  ---------- 
 
 
 
 Weighted average number of shares 
                                         9 months    9 months 
                                             2019        2018 
                                         millions    millions 
                                       ----------  ---------- 
 
 Weighted average number of shares 
  - basic                                   4,945       4,911 
 Dilutive effect of share options 
  and share awards                             56          55 
                                       ----------  ---------- 
 
 Weighted average number of shares 
  - diluted                                 5,001       4,966 
                                       ----------  ---------- 
 
 
 
 At 30 September 2019, 4,952 million shares (30 September 2018: 4,919 
  million) were in free issue (excluding Treasury shares and shares 
  held by the ESOP Trusts). GSK made no share repurchases during the 
  period. The company issued 0.6 million shares under employee share 
  schemes in the quarter for proceeds of GBP8 million (Q3 2018: GBP8 
  million). 
 
 
 At 30 September 2019, the ESOP Trust held 36.8 million GSK shares 
  against the future exercise of share options and share awards. The 
  carrying value of GBP201 million has been deducted from other reserves. 
  The market value of these shares was GBP649 million. 
 
  At 30 September 2019, the company held 393.5 million Treasury shares 
  at a cost of GBP5,505 million, which has been deducted from retained 
  earnings. 
 
 
 Financial information 
 
 
 Income statements 
 
 
                                                               9 months   9 months 
                                           Q3 2019   Q3 2018       2019       2018 
                                              GBPm      GBPm       GBPm       GBPm 
                                          --------  --------  ---------  --------- 
 
 TURNOVER                                    9,385     8,092     24,855     22,624 
 
 Cost of sales                             (3,245)   (2,636)    (8,615)    (7,337) 
                                          --------  --------  ---------  --------- 
 
 Gross profit                                6,140     5,456     16,240     15,287 
 
 Selling, general and administration       (2,892)   (2,527)    (7,959)    (7,295) 
 Research and development                  (1,206)     (988)    (3,325)    (2,817) 
 Royalty income                                118        94        269        220 
 Other operating expense                      (13)     (125)      (166)    (1,466) 
                                          --------  --------  ---------  --------- 
 
 OPERATING PROFIT                            2,147     1,910      5,059      3,929 
 
 Finance income                                 32        10         87         57 
 Finance expense                             (245)     (233)      (706)      (589) 
 Profit on disposal of associates                -         3          -          3 
 Share of after tax profits 
  of 
  associates and joint ventures                 17        15         70         26 
                                          --------  --------  ---------  --------- 
 
 PROFIT BEFORE TAXATION                      1,951     1,705      4,510      3,426 
 
 Taxation                                    (235)     (193)      (759)      (680) 
 Tax rate %                                  12.0%     11.3%      16.8%      19.8% 
                                          --------  --------  ---------  --------- 
 
 PROFIT AFTER TAXATION                       1,716     1,512      3,751      2,746 
                                          --------  --------  ---------  --------- 
 
 Profit attributable to non-controlling 
  interests                                    164        94        405        338 
 Profit attributable to shareholders         1,552     1,418      3,346      2,408 
                                          --------  --------  ---------  --------- 
 
                                             1,716     1,512      3,751      2,746 
                                          --------  --------  ---------  --------- 
 
 EARNINGS PER SHARE                          31.4p     28.8p      67.7p      49.0p 
                                          --------  --------  ---------  --------- 
 
 Diluted earnings per share                  31.0p     28.5p      66.9p      48.5p 
                                          --------  --------  ---------  --------- 
 
 
 
 Statement of comprehensive income 
 
 
                                                                 Q3 2019   Q3 2018 
                                                                    GBPm      GBPm 
                                                                --------  -------- 
 
 Profit for the period                                             1,716     1,512 
 
 Items that may be reclassified subsequently to income 
  statement: 
 Exchange movements on overseas net assets and net 
  investment hedges                                                (150)         4 
 Fair value movements on cash flow hedges                           (33)         3 
 Reclassification of cash flow hedges to income statement              2         1 
 
                                                                   (181)         8 
                                                                --------  -------- 
 
 Items that will not be reclassified to income statement: 
 Exchange movements on overseas net assets of non-controlling 
  interests                                                           38      (11) 
 Fair value movements on equity investments                           52       115 
 Deferred tax on fair value movements on equity investments            3         - 
 Re-measurement (losses)/gains on defined benefit 
  plans                                                            (619)       189 
 Tax on re-measurement (losses)/gains on defined 
  benefit plans                                                      113      (35) 
                                                                --------  -------- 
 
                                                                   (413)       258 
                                                                --------  -------- 
 
 Other comprehensive (expense)/income for the period               (594)       266 
                                                                --------  -------- 
 
 Total comprehensive income for the period                         1,122     1,778 
                                                                --------  -------- 
 
 
 Total comprehensive income for the period attributable 
  to: 
  Shareholders                                                       920     1,695 
  Non-controlling interests                                          202        83 
                                                                --------  -------- 
 
                                                                   1,122     1,778 
                                                                --------  -------- 
 
 
 
 Statement of comprehensive income 
 
 
                                                                 9 months   9 months 
                                                                     2019       2018 
                                                                     GBPm       GBPm 
                                                                ---------  --------- 
 
 Profit for the period                                              3,751      2,746 
 
 Items that may be reclassified subsequently to income 
  statement: 
 Exchange movements on overseas net assets and net 
  investment hedges                                                 (195)      (368) 
 Fair value movements on cash flow hedges                           (106)        182 
 Reclassification of cash flow hedges to income statement               3      (164) 
 Deferred tax on fair value movements on cash flow 
  hedges                                                                -       (24) 
 Deferred tax reversed on reclassification of cash 
  flow hedges                                                           -         20 
 
                                                                    (298)      (354) 
                                                                ---------  --------- 
 
 Items that will not be reclassified to income statement: 
 Exchange movements on overseas net assets of non-controlling 
  interests                                                            28       (19) 
 Fair value movements on equity investments                            96        268 
 Deferred tax on fair value movements on equity investments          (27)       (13) 
 Re-measurement (losses)/gains on defined benefit 
  plans                                                           (1,192)      1,103 
 Tax on re-measurement (losses)/gains on defined 
  benefit plans                                                       215      (205) 
                                                                ---------  --------- 
 
                                                                    (880)      1,134 
                                                                ---------  --------- 
 
 Other comprehensive (expense)/income for the period              (1,178)        780 
                                                                ---------  --------- 
 
 Total comprehensive income for the period                          2,573      3,526 
                                                                ---------  --------- 
 
 
 Total comprehensive income for the period attributable 
  to: 
  Shareholders                                                      2,140      3,207 
  Non-controlling interests                                           433        319 
                                                                ---------  --------- 
 
                                                                    2,573      3,526 
                                                                ---------  --------- 
 
 
 
 Pharmaceuticals turnover - three months ended 30 September 2019 
 
 
                                                             Total                                            US                                        Europe                                 International 
                           ---------------------------------------       ---------------------------------------       ---------------------------------------       --------------------------------------- 
                                                            Growth                                        Growth                                        Growth                                        Growth 
                                          ------------------------                      ------------------------                      ------------------------                      ------------------------ 
                                GBPm           GBP%           CER%            GBPm           GBP%           CER%            GBPm           GBP%           CER%           GBPm           GBP%            CER% 
                           ---------      ---------      ---------       ---------      ---------      ---------       ---------      ---------      ---------      ---------      ---------       --------- 
 
 Respiratory                     806             25             19             465             18             10             200             32             32            141             42              35 
                           ---------      ---------      ---------       ---------      ---------      ---------       ---------      ---------      ---------      ---------      ---------       --------- 
 Ellipta products                603             21             15             346             12              5             147             34             33            110             34              29 
  Anoro Ellipta                  143             24             19              94             22             16              30             25             25             19             36              29 
  Arnuity Ellipta                 12             20             10              10             11             11               -              -              -              2            100               - 
  Incruse Ellipta                 60           (20)           (24)              34           (33)           (37)              18              -              -              8             33              17 
  Relvar/Breo 
   Ellipta                       249            (3)            (8)             103           (26)           (32)              71             20             19             75             25              22 
  Trelegy Ellipta                139           >100           >100             105           >100           >100              28           >100           >100              6           >100            >100 
 
 Nucala                          203             40             33             119             37             29              53             29             29             31             82              65 
 
 HIV                           1,267              5              -             797              6            (1)             293              1              1            177              7               3 
                           ---------      ---------      ---------       ---------      ---------      ---------       ---------      ---------      ---------      ---------      ---------       --------- 
 Dolutegravir 
  products                     1,211              6              2             780              6              -             275              3              3            156             13               9 
  Tivicay                        441              2            (3)             268            (1)            (7)             102             10             10             71              4               - 
  Triumeq                        651            (3)            (7)             414            (3)            (9)             154           (10)           (10)             83             19              14 
  Juluca                         101           >100           >100              83           >100           >100              16           >100           >100              2           >100            >100 
  Dovato                          18              -              -              15              -              -               3              -              -              -              -               - 
 
 Epzicom/Kivexa                   19           (21)           (25)               1              -              -               6           (33)           (33)             12           (14)            (21) 
 Selzentry                        25            (4)           (12)              14              -            (7)               7           (12)           (12)              4              -            (25) 
 Other                            12           (43)           (33)               2           (67)           (50)               5           (17)           (17)              5           (44)            (33) 
 
 Immuno- 
  inflammation                   171             40             33             150             39             30              12             33             33              9             80            >100 
                           ---------      ---------      ---------       ---------      ---------      ---------       ---------      ---------      ---------      ---------      ---------       --------- 
 Benlysta                        172             42             35             150             39             29              12             20             20             10           >100            >100 
 
 Oncology                         64              -              -              38              -              -              26              -              -              -              -               - 
                           ---------      ---------      ---------       ---------      ---------      ---------       ---------      ---------      ---------      ---------      ---------       --------- 
 Zejula                           64              -              -              38              -              -              26              -              -              -              -               - 
 
 Established 
  Pharmaceuticals              2,223            (1)            (5)             522           (18)           (22)             509              2              2          1,192              8               3 
                           ---------      ---------      ---------       ---------      ---------      ---------       ---------      ---------      ---------      ---------      ---------       --------- 
 Established 
  Respiratory                    939            (8)           (12)             364           (19)           (24)             185            (8)            (8)            390              5               - 
  Seretide/Advair                418           (32)           (35)             117           (62)           (64)             121            (8)            (9)            180              1             (2) 
  Flixotide/Flovent              171             46             38             110             86             76              18            (5)            (5)             43             10               3 
  Ventolin                       231             34             27             136             64             53              27            (7)            (7)             68             13               8 
  Avamys/Veramyst                 66             10              3               -              -              -              15              -              -             51             13               4 
  Other Respiratory               53              -            (4)               1           >100           >100               4           (20)              -             48              -             (6) 
 
 Dermatology                     118              8              6               -              -              -              40              -              -             78             15              12 
 Augmentin                       151             14             10               -              -              -              38            (5)            (3)            113             22              15 
 Avodart                         150              4              -               2           (33)           (33)              51           (14)           (15)             97             18              12 
 Imigran/Imitrex                  36              9              6              15             15              8              13              -              -              8             14              14 
 Lamictal                        147            (1)            (4)              74              -            (7)              31              3              -             42            (5)             (2) 
 Seroxat/Paxil                    42              -            (5)               -              -              -              10             11             11             32            (3)             (9) 
 Valtrex                          28           (13)           (16)               4           (33)           (50)               9             12             12             15           (17)            (17) 
 Other                           612              5              2              63           (28)           (28)             132             29             31            417              6               1 
                           ---------      ---------      ---------       ---------      ---------      ---------       ---------      ---------      ---------      ---------      ---------       --------- 
 Pharmaceuticals               4,531              7              3           1,972              4            (2)           1,040              9              9          1,519             10               5 
                           ---------      ---------      ---------       ---------      ---------      ---------       ---------      ---------      ---------      ---------      ---------       --------- 
 
 
 
 Pharmaceuticals turnover - nine months ended 30 September 2019 
 
 
                                                             Total                                            US                                        Europe                                 International 
                           ---------------------------------------       ---------------------------------------       ---------------------------------------       --------------------------------------- 
                                                            Growth                                        Growth                                        Growth                                        Growth 
                                          ------------------------                      ------------------------                      ------------------------                      ------------------------ 
                                GBPm           GBP%           CER%            GBPm           GBP%           CER%            GBPm           GBP%           CER%           GBPm           GBP%            CER% 
                           ---------      ---------      ---------       ---------      ---------      ---------       ---------      ---------      ---------      ---------      ---------       --------- 
 
 Respiratory                   2,189             23             18           1,221             15              8             569             32             32            399             38              35 
                           ---------      ---------      ---------       ---------      ---------      ---------       ---------      ---------      ---------      ---------      ---------       --------- 
 Ellipta products              1,639             17             13             900              8              2             419             30             30            320             33              30 
  Anoro Ellipta                  373             12              8             233              6              -              87             21             21             53             33              30 
  Arnuity Ellipta                 33              6              -              28              -            (4)               -              -              -              5             67              33 
  Incruse Ellipta                185            (6)           (10)             109           (13)           (19)              55              2              2             21             24              24 
  Relvar/Breo 
   Ellipta                       702            (7)           (10)             274           (31)           (35)             208             14             14            220             23              21 
  Trelegy Ellipta                346           >100           >100             256           >100           >100              69           >100           >100             21           >100            >100 
 
 Nucala                          550             41             35             321             37             29             150             39             39             79             65              56 
 
 HIV                           3,597              4              1           2,222              4            (2)             860            (2)            (2)            515             17              16 
                           ---------      ---------      ---------       ---------      ---------      ---------       ---------      ---------      ---------      ---------      ---------       --------- 
 Dolutegravir 
  products                     3,425              7              3           2,170              5            (1)             808              1              1            447             27              26 
  Tivicay                      1,236              4              -             733            (3)            (9)             295              8              8            208             31              30 
  Triumeq                      1,911            (2)            (6)           1,203            (3)            (9)             473           (10)           (10)            235             22              21 
  Juluca                         255           >100           >100             214           >100           >100              37           >100           >100              4           >100            >100 
  Dovato                          23              -              -              20              -              -               3              -              -              -              -               - 
 
 Epzicom/Kivexa                   60           (31)           (31)               3              -              -              18           (45)           (45)             39           (24)            (24) 
 Selzentry                        74           (12)           (14)              40            (5)           (10)              22           (15)           (15)             12           (25)            (25) 
 Other                            38           (37)           (37)               9           (50)           (50)              12           (33)           (33)             17           (29)            (29) 
 
 Immuno- 
  inflammation                   443             32             25             387             29             22              34             31             31             22           >100            >100 
                           ---------      ---------      ---------       ---------      ---------      ---------       ---------      ---------      ---------      ---------      ---------       --------- 
 Benlysta                        443             32             26             387             29             22              34             26             26             22           >100            >100 
 
 Oncology                        164              -              -              97              -              -              67              -              -              -              -               - 
                           ---------      ---------      ---------       ---------      ---------      ---------       ---------      ---------      ---------      ---------      ---------       --------- 
 Zejula                          163              -              -              97              -              -              66              -              -              -              -               - 
 
 Established 
  Pharmaceuticals              6,603            (4)            (6)           1,517           (18)           (22)           1,547            (5)            (5)          3,539              3               2 
                           ---------      ---------      ---------       ---------      ---------      ---------       ---------      ---------      ---------      ---------      ---------       --------- 
 Established 
  Respiratory                  2,935            (7)            (9)           1,074           (16)           (21)             611           (11)           (11)          1,250              5               4 
  Seretide/Advair              1,316           (26)           (27)             398           (50)           (53)             383           (15)           (15)            535              1               - 
  Flixotide/Flovent              443              3              -             253              6              -              66            (1)            (1)            124              1               - 
  Ventolin                       712             36             32             423             75             64              89            (5)            (5)            200              8               8 
  Avamys/Veramyst                252             11              8               -              -              -              54            (5)            (5)            198             16              12 
  Other Respiratory              212              7              2               -              -              -              19           (10)            (5)            193              8               3 
 
 Dermatology                     333              4              4               3             50             50             119              1              1            211              6               6 
 Augmentin                       444              5              4               -              -              -             125            (5)            (5)            319              9               9 
 Avodart                         434              3              1               4           (56)           (56)             160           (11)           (12)            270             15              12 
 Imigran/Imitrex                 103              2              -              44             13              8              39            (9)            (9)             20              5               5 
 Lamictal                        421            (8)           (11)             211            (7)           (12)              84              1              -            126           (15)            (15) 
 Seroxat/Paxil                   122            (2)            (3)               -              -              -              28            (3)            (3)             94            (1)             (3) 
 Valtrex                          80           (11)           (13)              10           (29)           (36)              23              -              -             47           (11)            (13) 
 Other                         1,731            (4)            (5)             171           (37)           (40)             358              8              8          1,202              1             (1) 
                           ---------      ---------      ---------       ---------      ---------      ---------       ---------      ---------      ---------      ---------      ---------       --------- 
 Pharmaceuticals              12,996              4              1           5,444              2            (4)           3,077              4              4          4,475              7               6 
                           ---------      ---------      ---------       ---------      ---------      ---------       ---------      ---------      ---------      ---------      ---------       --------- 
 
 
 
 Vaccines turnover - three months ended 30 September 2019 
 
 
                                                      Total                                            US                                        Europe                                 International 
                    ---------------------------------------       ---------------------------------------       ---------------------------------------       --------------------------------------- 
                                                     Growth                                        Growth                                        Growth                                        Growth 
                                   ------------------------                      ------------------------                      ------------------------                      ------------------------ 
                         GBPm           GBP%           CER%            GBPm           GBP%           CER%            GBPm           GBP%           CER%           GBPm           GBP%            CER% 
                    ---------      ---------      ---------       ---------      ---------      ---------       ---------      ---------      ---------      ---------      ---------       --------- 
 
 Meningitis               371             13              9             234             22             14              90              8             10             47           (13)            (11) 
                    ---------      ---------      ---------       ---------      ---------      ---------       ---------      ---------      ---------      ---------      ---------       --------- 
 Bexsero                  255             23             19             145             33             24              84              9             10             26             24              29 
 Menveo                   106              4            (1)              89              7              1               4              -              -             13           (13)            (13) 
 Other                     10           (50)           (50)               -              -              -               2              -              -              8           (56)            (56) 
 
 Influenza                371             22             15             318             26             19              34              3              3             19              -             (5) 
                    ---------      ---------      ---------       ---------      ---------      ---------       ---------      ---------      ---------      ---------      ---------       --------- 
 Fluarix, 
  FluLaval                371             22             15             318             26             19              34              3              3             19              -             (5) 
 
 Shingles                 535             87             76             496             80             69              16           >100           >100             23           >100            >100 
                    ---------      ---------      ---------       ---------      ---------      ---------       ---------      ---------      ---------      ---------      ---------       --------- 
 Shingrix                 535             87             76             496             80             69              16           >100           >100             23           >100            >100 
 
 Established 
  Vaccines              1,031              3            (1)             393             16              9             256           (10)           (11)            382              1             (1) 
                    ---------      ---------      ---------       ---------      ---------      ---------       ---------      ---------      ---------      ---------      ---------       --------- 
 Infanrix, 
  Pediarix                199             24             19             106             61             53              55           (10)           (10)             38             15               6 
 Boostrix                 187             19             15             101              7              2              42            (2)            (2)             44           >100            >100 
 
 Hepatitis                216              1            (2)             131              6              -              57           (14)           (14)             28             22              17 
 
 Rotarix                  167             10              7              36            (3)            (8)              28              -              -            103             18              15 
 
 Synflorix                116            (3)            (4)               -              -              -              11            (8)            (8)            105            (2)             (4) 
 
 Priorix, 
  Priorix 
  Tetra, 
  Varilrix                 57           (30)           (31)               -              -              -              23           (45)           (45)             34           (12)            (15) 
 Cervarix                  15           (73)           (73)               -              -              -               5             67             67             10           (81)            (81) 
 Other                     74              9              6              19              -           (21)              35             17             10             20              4              25 
                    ---------      ---------      ---------       ---------      ---------      ---------       ---------      ---------      ---------      ---------      ---------       --------- 
 Vaccines               2,308             20             15           1,441             36             28             396            (1)            (2)            471              2               - 
                    ---------      ---------      ---------       ---------      ---------      ---------       ---------      ---------      ---------      ---------      ---------       --------- 
 
 
 
 Vaccines turnover - nine months ended 30 September 2019 
 
 
                                                      Total                                            US                                        Europe                                 International 
                    ---------------------------------------       ---------------------------------------       ---------------------------------------       --------------------------------------- 
                                                     Growth                                        Growth                                        Growth                                        Growth 
                                   ------------------------                      ------------------------                      ------------------------                      ------------------------ 
                         GBPm           GBP%           CER%            GBPm           GBP%           CER%            GBPm           GBP%           CER%           GBPm           GBP%            CER% 
                    ---------      ---------      ---------       ---------      ---------      ---------       ---------      ---------      ---------      ---------      ---------       --------- 
 
 Meningitis               815             18             16             405             25             18             260              1              1            150             35              43 
                    ---------      ---------      ---------       ---------      ---------      ---------       ---------      ---------      ---------      ---------      ---------       --------- 
 Bexsero                  567             21             19             248             40             32             243              2              2             76             41              54 
 Menveo                   201              7              3             157              7              1              12            (8)            (8)             32             14              21 
 Other                     47             34             34               -              -              -               5           (17)           (17)             42             45              45 
 
 Influenza                403             22             16             320             28             20              34            (3)            (3)             49              9               9 
                    ---------      ---------      ---------       ---------      ---------      ---------       ---------      ---------      ---------      ---------      ---------       --------- 
 Fluarix, 
  FluLaval                403             22             16             320             28             20              34            (3)            (3)             49              9               9 
 
 Shingles               1,278           >100           >100           1,175           >100           >100              35           >100           >100             68           >100              91 
                    ---------      ---------      ---------       ---------      ---------      ---------       ---------      ---------      ---------      ---------      ---------       --------- 
 Shingrix               1,278           >100           >100           1,175           >100           >100              35           >100           >100             68           >100              91 
 
 Established 
  Vaccines              2,919              3              1           1,096             17             11             809            (9)            (9)          1,014              1               - 
                    ---------      ---------      ---------       ---------      ---------      ---------       ---------      ---------      ---------      ---------      ---------       --------- 
 Infanrix, 
  Pediarix                577             12              9             292             32             25             169           (18)           (18)            116             32              30 
 Boostrix                 454             20             17             233             16              9             122            (2)            (2)             99             90              90 
 
 Hepatitis                679             10              6             418             18             11             178            (4)            (4)             83              6               5 
 
 Rotarix                  417              8              6             106              5            (1)              84              2              4            227             11              10 
 
 Synflorix                344              8              8               -              -              -              44             19             19            300              7               6 
 
 Priorix, 
  Priorix 
  Tetra, 
  Varilrix                162           (33)           (33)               -              -              -              74           (42)           (42)             88           (23)            (23) 
 Cervarix                  63           (49)           (49)               -              -              -              16              7              7             47           (56)            (56) 
 Other                    223           (11)           (12)              47           (15)           (24)             122              8              7             54           (33)            (30) 
                    ---------      ---------      ---------       ---------      ---------      ---------       ---------      ---------      ---------      ---------      ---------       --------- 
 Vaccines               5,415             23             19           2,996             47             39           1,138            (4)            (4)          1,281              7               7 
                    ---------      ---------      ---------       ---------      ---------      ---------       ---------      ---------      ---------      ---------      ---------       --------- 
 
 
 
 Balance sheet 
 
 
                                         30 September   30 September   31 December 
                                                 2019           2018          2018 
                                                 GBPm           GBPm          GBPm 
                                        -------------  -------------  ------------ 
 ASSETS 
 Non-current assets 
 Property, plant and equipment                 10,668         10,923        11,058 
 Right of use assets                            1,032              -             - 
 Goodwill                                      11,046          5,848         5,789 
 Other intangible assets                       32,455         17,263        17,202 
 Investments in associates and 
  joint ventures                                  334            221           236 
 Other investments                              1,592          1,393         1,322 
 Deferred tax assets                            3,909          3,412         3,887 
 Derivative financial instruments                 161             51            69 
 Other non-current assets                       1,058          2,075         1,576 
                                        -------------  -------------  ------------ 
 
 Total non-current assets                      62,255         41,186        41,139 
                                        -------------  -------------  ------------ 
 
 Current assets 
 Inventories                                    6,776          5,788         5,476 
 Current tax recoverable                          169            257           229 
 Trade and other receivables                    8,173          7,292         6,423 
 Derivative financial instruments                 518             56           188 
 Liquid investments                                86             80            84 
 Cash and cash equivalents                      4,305          3,793         3,874 
 Assets held for sale                             963            152           653 
                                        -------------  -------------  ------------ 
 
 Total current assets                          20,990         17,418        16,927 
                                        -------------  -------------  ------------ 
 
 TOTAL ASSETS                                  83,245         58,604        58,066 
                                        -------------  -------------  ------------ 
 
 LIABILITIES 
 Current liabilities 
 Short-term borrowings                        (8,216)        (2,902)       (5,793) 
 Contingent consideration liabilities           (838)          (818)         (837) 
 Trade and other payables                    (14,737)       (13,093)      (14,037) 
 Derivative financial instruments               (310)           (63)         (127) 
 Current tax payable                            (610)          (813)         (965) 
 Short-term provisions                          (803)          (706)         (732) 
                                        -------------  -------------  ------------ 
 
 Total current liabilities                   (25,514)       (18,395)      (22,491) 
                                        -------------  -------------  ------------ 
 
 Non-current liabilities 
 Long-term borrowings                        (24,833)       (24,808)      (20,271) 
 Corporation tax payable                        (273)          (272)         (272) 
 Deferred tax liabilities                     (3,914)        (1,223)       (1,156) 
 Pensions and other post-employment 
  benefits                                    (3,793)        (3,079)       (3,125) 
 Other provisions                               (686)          (652)         (691) 
 Derivative financial instruments                   -              -           (1) 
 Contingent consideration liabilities         (5,288)        (5,414)       (5,449) 
 Other non-current liabilities                  (884)        (1,038)         (938) 
                                        -------------  -------------  ------------ 
 
 Total non-current liabilities               (39,671)       (36,486)      (31,903) 
                                        -------------  -------------  ------------ 
 
 TOTAL LIABILITIES                           (65,185)       (54,881)      (54,394) 
                                        -------------  -------------  ------------ 
 
 NET ASSETS                                    18,060          3,723         3,672 
                                        -------------  -------------  ------------ 
 
 EQUITY 
 Share capital                                  1,345          1,344         1,345 
 Share premium account                          3,165          3,049         3,091 
 Retained earnings                              5,265        (2,081)       (2,137) 
 Other reserves                                 1,997          2,164         2,061 
                                        -------------  -------------  ------------ 
 
 Shareholders' equity                          11,772          4,476         4,360 
 
 Non-controlling interests                      6,288          (753)         (688) 
                                        -------------  -------------  ------------ 
 
 TOTAL EQUITY                                  18,060          3,723         3,672 
                                        -------------  -------------  ------------ 
 
 
 
 Statement of changes in equity 
 
 
                                                                                        Share-           Non- 
                             Share          Share       Retained          Other       holder's    controlling          Total 
                           capital        premium       earnings       reserves         equity      interests         equity 
                              GBPm           GBPm           GBPm           GBPm           GBPm           GBPm           GBPm 
                      ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 
 As previously 
  reported                   1,345          3,091        (2,137)          2,061          4,360          (688)          3,672 
 Implementation of 
  IFRS 16                        -              -           (93)              -           (93)              -           (93) 
                      ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 At 1 January 2019, 
  as adjusted                1,345          3,091        (2,230)          2,061          4,267          (688)          3,579 
   Profit for the 
    period                                                 3,346                         3,346            405          3,751 
  Other 
   comprehensive 
   (expense)/income 
   for the period                                        (1,171)           (35)        (1,206)             28        (1,178) 
                                                    ------------   ------------   ------------   ------------   ------------ 
 Total 
  comprehensive 
  income/(expense) 
  for the period                                           2,175           (35)          2,140            433          2,573 
                                                    ------------   ------------   ------------   ------------   ------------ 
 Distributions to 
  non-controlling 
  interests                                                                                             (313)          (313) 
 Changes to 
  non-controlling 
  interests                                                                                                10             10 
 Dividends to 
  shareholders                                           (3,012)                       (3,012)                       (3,012) 
 Recognition of 
  interest 
  in Consumer 
  Healthcare Joint 
  Venture                                                  8,082                         8,082          6,846         14,928 
 Shares issued                   -             41                                           41                            41 
 Realised after tax 
  profits 
  on disposal of 
  equity 
  investments                                                (4)              4                                            - 
 Shares acquired by 
  ESOP 
  Trusts                                       33            295          (328)                                            - 
 Write-down on 
  shares held 
  by ESOP Trusts                                           (295)            295                                            - 
 Share-based 
  incentive plans                                            254                           254                           254 
                      ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 At 30 September 
  2019                       1,345          3,165          5,265          1,997         11,772          6,288         18,060 
                      ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 
 
 As previously 
  reported                   1,343          3,019        (6,477)          2,047           (68)          3,557          3,489 
 Implementation of 
  IFRS 15                                                    (4)                           (4)                           (4) 
 Implementation of 
  IFRS 9                                                     277          (288)           (11)                          (11) 
                      ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 At 1 January 2018, 
  as adjusted                1,343          3,019        (6,204)          1,759           (83)          3,557          3,474 
  Profit for the 
   period                                                  2,408                         2,408            338          2,746 
  Other 
   comprehensive 
   income/(expense) 
   for the period                                            541            258            799           (19)            780 
                                                    ------------   ------------   ------------   ------------   ------------ 
 Total 
  comprehensive 
  income 
  for the period                                           2,949            258          3,207            319          3,526 
                                                    ------------   ------------   ------------   ------------   ------------ 
 Distributions to 
  non-controlling 
  interests                                                                                             (532)          (532) 
 Contributions from 
  non-controlling 
  interests                                                                                                21             21 
 Derecognition of 
  non-controlling 
  interests 
  in Consumer 
  Healthcare 
  Joint Venture                                            4,056                         4,056        (4,118)           (62) 
 Dividends to 
  shareholders                                           (2,993)                       (2,993)                       (2,993) 
 Shares issued                   1             30                                           31                            31 
 Realised profits 
  on disposal 
  of equity 
  investments                                                 54           (54)                                            - 
 Write-down on 
  shares held 
  by ESOP Trusts                                           (201)            201                                            - 
 Share-based 
  incentive plans                                            258                           258                           258 
                      ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 At 30 September 
  2018                       1,344          3,049        (2,081)          2,164          4,476          (753)          3,723 
                      ------------   ------------   ------------   ------------   ------------   ------------   ------------ 
 
 
 Cash flow statement - nine months ended 30 September 2019 
 
 
                                                         9 months   9 months 
                                                             2019       2018 
                                                             GBPm       GBPm 
                                                        ---------  --------- 
 
 Profit after tax                                           3,751      2,746 
 Tax on profits                                               759        680 
 Share of after tax profits of associates and 
  joint ventures                                             (70)       (26) 
 Profit on disposal of interest in associates                   -        (3) 
 Net finance expense                                          619        532 
 Depreciation, amortisation and other adjusting 
  items                                                     2,472      1,169 
 Increase in working capital                              (1,477)    (1,927) 
 Contingent consideration paid                              (577)      (792) 
 Increase in other net liabilities (excluding 
  contingent consideration paid)                              149      2,936 
                                                        ---------  --------- 
 
 Cash generated from operations                             5,626      5,315 
 Taxation paid                                            (1,059)    (1,013) 
                                                        ---------  --------- 
 
 Net cash inflow from operating activities                  4,567      4,302 
                                                        ---------  --------- 
 
 Cash flow from investing activities 
 Purchase of property, plant and equipment                  (785)      (842) 
 Proceeds from sale of property, plant and equipment           86         70 
 Purchase of intangible assets                              (613)      (319) 
 Proceeds from sale of intangible assets                       88        165 
 Purchase of equity investments                             (239)      (298) 
 Proceeds from sale of equity investments                      51         87 
 Purchase of businesses, net of cash acquired             (3,548)          - 
 Contingent consideration paid                               (83)      (123) 
 Disposal of businesses                                       (2)         28 
 Proceeds from disposal of interest in associates               -          3 
 Investment in associates and joint ventures                  (6)        (5) 
 Interest received                                             66         55 
 Decrease in liquid investments                                 1          - 
 Dividends from associates and joint ventures                   -         39 
                                                        ---------  --------- 
 
 Net cash outflow from investing activities               (4,984)    (1,140) 
                                                        ---------  --------- 
 
 Cash flow from financing activities 
 Issue of share capital                                        41         31 
 Increase in short-term loans                               4,350      2,050 
 Increase in long-term loans                                4,822     10,090 
 Repayment of short-term loans                            (4,253)    (2,037) 
 Repayment of lease liabilities                             (159)       (17) 
 Purchase of non-controlling interests                        (7)    (9,321) 
 Interest paid                                              (539)      (458) 
 Dividends paid to shareholders                           (3,012)    (2,993) 
 Distributions to non-controlling interests                 (313)      (535) 
 Contributions from non-controlling interests                   -         21 
 Other financing items                                       (11)         26 
                                                        ---------  --------- 
 
 Net cash inflow/(outflow) from financing activities          919    (3,143) 
                                                        ---------  --------- 
 
 Increase in cash and bank overdrafts in the 
  period                                                      502         19 
                                                        ---------  --------- 
 
 Cash and bank overdrafts at beginning of the 
  period                                                    4,087      3,600 
 Exchange adjustments                                          20       (32) 
 Increase in cash and bank overdrafts                         502         19 
                                                        ---------  --------- 
 
 Cash and bank overdrafts at end of the period              4,609      3,587 
                                                        ---------  --------- 
 
 Cash and bank overdrafts at end of the period 
  comprise: 
  Cash and cash equivalents                                 4,305      3,793 
  Cash and cash equivalents reported in assets 
   held for sale                                              519          - 
                                                        ---------  --------- 
 
                                                            4,824      3,793 
  Overdrafts                                                (215)      (206) 
                                                        ---------  --------- 
 
                                                            4,609      3,587 
                                                        ---------  --------- 
 
 
 
 Segment information 
 
 Operating segments are reported based on the financial information 
  provided to the Chief Executive Officer and the responsibilities 
  of the Corporate Executive Team (CET). GSK reports results under 
  four segments: Pharmaceuticals; Pharmaceuticals R&D; Vaccines and 
  Consumer Healthcare, and individual members of the CET are responsible 
  for each segment. 
  The Pharmaceuticals R&D segment is the responsibility of the Chief 
  Scientific Officer and President, R&D and is reported as a separate 
  segment. The operating profit of this segment excludes the ViiV Healthcare 
  operating profit (including R&D expenditure) that is reported within 
  the Pharmaceuticals segment. 
  The Group's management reporting process allocates intra-Group profit 
  on a product sale to the market in which that sale is recorded, and 
  the profit analyses below have been presented on that basis. 
  Corporate and other unallocated turnover and costs include the results 
  of certain Consumer Healthcare products which are being held for 
  sale in a number of markets in order to meet anti-trust approval 
  requirements, together with the costs of corporate functions. 
 
 
 Turnover by segment 
 
 
                                    Q3 2019   Q3 2018   Growth   Growth 
                                       GBPm      GBPm     GBP%     CER% 
                                   --------  --------  -------  ------- 
 
 Pharmaceuticals                      4,531     4,221        7        3 
 Vaccines                             2,308     1,924       20       15 
 Consumer Healthcare                  2,526     1,947       30       25 
                                   --------  --------  -------  ------- 
 
                                      9,365     8,092       16       11 
 Corporate and other unallocated 
  turnover                               20         - 
                                   --------  --------  -------  ------- 
 
 Total turnover                       9,385     8,092       16       11 
                                   --------  --------  -------  ------- 
 
 
 
 Operating profit by segment 
 
 
                                     Q3 2019   Q3 2018   Growth   Growth 
                                        GBPm      GBPm     GBP%     CER% 
                                    --------  --------  -------  ------- 
 
 Pharmaceuticals                       1,986     2,028      (2)      (7) 
 Pharmaceuticals R&D                   (893)     (667)       34       28 
                                    --------  --------  -------  ------- 
 
 Pharmaceuticals including R&D         1,093     1,361     (20)     (24) 
 Vaccines                              1,162       827       41       30 
 Consumer Healthcare                     613       429       43       34 
                                    --------  --------  -------  ------- 
 
 Segment profit                        2,868     2,617       10        3 
 Corporate and other unallocated 
  costs                                 (82)      (93) 
                                    --------  --------  -------  ------- 
 
 Adjusted operating profit             2,786     2,524       10        3 
 Adjusting items                       (639)     (614) 
                                    --------  --------  -------  ------- 
 
 Total operating profit                2,147     1,910       12        3 
 
 Finance income                           32        10 
 Finance costs                         (245)     (233) 
 Profit on disposal of associates          -         3 
 Share of after tax profits of 
  associates and joint ventures           17        15 
                                    --------  --------  -------  ------- 
 
 Profit before taxation                1,951     1,705       14        4 
                                    --------  --------  -------  ------- 
 
 
 
 Turnover by segment 
 
 
                                    9 months   9 months 
                                        2019       2018   Growth   Growth 
                                        GBPm       GBPm     GBP%     CER% 
                                   ---------  ---------  -------  ------- 
 
 Pharmaceuticals                      12,996     12,459        4        1 
 Vaccines                              5,415      4,415       23       19 
 Consumer Healthcare                   6,424      5,750       12       10 
                                   ---------  ---------  -------  ------- 
 
                                      24,835     22,624       10        7 
 Corporate and other unallocated 
  turnover                                20          - 
                                   ---------  ---------  -------  ------- 
 
 Total turnover                       24,855     22,624       10        7 
                                   ---------  ---------  -------  ------- 
 
 
 
 Operating profit by segment 
 
 
                                     9 months   9 months 
                                         2019       2018   Growth   Growth 
                                         GBPm       GBPm     GBP%     CER% 
                                    ---------  ---------  -------  ------- 
 
 Pharmaceuticals                        6,029      6,080      (1)      (5) 
 Pharmaceuticals R&D                  (2,442)    (1,898)       29       24 
                                    ---------  ---------  -------  ------- 
 
 Pharmaceuticals including R&D          3,587      4,182     (14)     (17) 
 Vaccines                               2,388      1,523       57       47 
 Consumer Healthcare                    1,434      1,165       23       19 
                                    ---------  ---------  -------  ------- 
 
 Segment profit                         7,409      6,870        8        3 
 Corporate and other unallocated 
  costs                                 (289)      (321) 
                                    ---------  ---------  -------  ------- 
 
 Adjusted operating profit              7,120      6,549        9        3 
 Adjusting items                      (2,061)    (2,620) 
                                    ---------  ---------  -------  ------- 
 
 Total operating profit                 5,059      3,929       29       20 
 
 Finance income                            87         57 
 Finance costs                          (706)      (589) 
 Profit on disposal of associates           -          3 
 Share of after tax profits of 
  associates 
  and joint ventures                       70         26 
                                    ---------  ---------  -------  ------- 
 
 Profit before taxation                 4,510      3,426       32       22 
                                    ---------  ---------  -------  ------- 
 
 
 
 Legal matters 
  The Group is involved in significant legal and administrative proceedings, 
  principally product liability, intellectual property, tax, anti-trust 
  and governmental investigations as well as related private litigation, 
  which are more fully described in the 'Legal Proceedings' note in 
  the Annual Report 2018. 
  At 30 September 2019, the Group's aggregate provision for legal and 
  other disputes (not including tax matters described on page 32) was 
  GBP0.4 billion (31 December 2018: GBP0.2 billion). The Group may 
  become involved in significant legal proceedings in respect of which 
  it is not possible to make a reliable estimate of the expected financial 
  effect, if any, that could result from ultimate resolution of the 
  proceedings. In these cases, the Group would provide appropriate 
  disclosures about such cases, but no provision would be made. 
  A significant matter since the date of the Annual Report 2018 is 
  as follows: a trial date of 12 November 2019 has been set in the 
  US federal courts with respect to claims by 38 health insurance companies 
  against the Group, relating to reimbursements the insurers made for 
  17 medicines manufactured at the Group's former Cidra plant in Puerto 
  Rico. 
  The ultimate liability for legal claims may vary from the amounts 
  provided and is dependent upon the outcome of litigation proceedings, 
  investigations and possible settlement negotiations. The Group's 
  position could change over time, and, therefore, there can be no 
  assurance that any losses that result from the outcome of any legal 
  proceedings will not exceed by a material amount the amount of the 
  provisions reported in the Group's financial accounts. 
 
 
 Additional information 
 
 
 Accounting policies and basis of preparation 
 This unaudited Results Announcement contains condensed financial 
  information for the three and nine months ended 30 September 2019, 
  and should be read in conjunction with the Annual Report 2018, which 
  was prepared in accordance with International Financial Reporting 
  Standards as adopted by the European Union. This Results Announcement 
  has been prepared applying consistent accounting policies to those 
  applied by the Group in the Annual Report 2018, except for the implementation 
  of IFRS 16 'Leases' from 1 January 2019. 
  IFRS 16 'Leases' was implemented by the Group from 1 January 2019. 
  The new standard replaces IAS 17 'Leases' and requires lease liabilities 
  and right of use assets to be recognised on the balance sheet for 
  almost all leases. GSK has applied the modified transition approach 
  on adoption with no restatement of comparative information. The adjustment 
  made on the transition date of 1 January 2019 to each balance sheet 
  line item is as follows: 
 
 
                                          31 December 
                                                 2018                     1 January 
                                        as previously        IFRS 16           2019 
                                             reported    adjustments    as adjusted 
                                                 GBPm           GBPm           GBPm 
                                      ---------------  -------------  ------------- 
 
 Property, plant and equipment                 11,058           (98)         10,960 
 Right of use assets                                -          1,071          1,071 
 Other non-current assets                       1,576           (11)          1,565 
 Trade and other receivables                    6,423              3          6,426 
 Deferred tax assets                            3,887             39          3,926 
 Short-term borrowings                        (5,793)          (229)        (6,022) 
 Long-term borrowings                        (20,271)        (1,074)       (21,345) 
 Trade and other payables                    (14,037)             10       (14,027) 
 Current and non-current provisions           (1,423)             35        (1,388) 
 Other non-current liabilities                  (938)            160          (778) 
 Deferred tax liabilities                     (1,156)              1        (1,155) 
                                      ---------------  -------------  ------------- 
 
 Total effect on net assets                     3,672           (93)          3,579 
                                      ---------------  -------------  ------------- 
 
 Retained earnings                            (2,137)           (93)        (2,230) 
                                      ---------------  -------------  ------------- 
 
 Total effect on equity                         3,672           (93)          3,579 
                                      ---------------  -------------  ------------- 
 
 
 
 The new Standard has not had a material impact on the Group's Income 
  statement or Cash flow statement. 
 
 
 The Group assesses whether a contract is or contains a lease at inception 
  of the contract. The Group recognises a right of use asset and a 
  corresponding lease liability with respect to all lease arrangements 
  in which it is the lessee, except for short--term leases (defined 
  as leases with a lease term of 12 months or less) and leases of low 
  value assets. For these leases, the Group recognises the lease payments 
  as an operating expense on a straight--line basis over the term of 
  the lease. The lease liability is initially measured at the present 
  value of the lease payments that are not paid at the commencement 
  date. The discount rate applied is the rate implicit in the lease. 
  If this rate cannot be readily determined, the Group uses its incremental 
  borrowing rate. 
 
  The lease liability is subsequently measured by increasing the carrying 
  amount to reflect interest on the lease liability (using the effective 
  interest method) and by reducing the carrying amount to reflect the 
  lease payments made. 
 
  The right of use assets primarily comprise property and reflect the 
  initial measurement of the corresponding lease liability, lease payments 
  made at or before the commencement day and any initial direct costs. 
  They are subsequently measured at cost less accumulated depreciation 
  and impairment losses. 
 
 
 This Results Announcement does not constitute statutory accounts 
  of the Group within the meaning of sections 434(3) and 435(3) of 
  the Companies Act 2006. The full Group accounts for 2018 were published 
  in the Annual Report 2018, which has been delivered to the Registrar 
  of Companies and on which the report of the independent auditors 
  was unqualified and did not contain a statement under section 498 
  of the Companies Act 2006. 
 
 
 Exchange rates 
 GSK operates in many countries, and earns revenues and incurs costs 
  in many currencies. The results of the Group, as reported in Sterling, 
  are affected by movements in exchange rates between Sterling and 
  other currencies. Average exchange rates, as modified by specific 
  transaction rates for large transactions, prevailing during the period, 
  are used to translate the results and cash flows of overseas subsidiaries, 
  associates and joint ventures into Sterling. Period-end rates are 
  used to translate the net assets of those entities. The currencies 
  which most influenced these translations and the relevant exchange 
  rates were: 
 
 
                                            9 months   9 months 
                        Q3 2019   Q3 2018       2019       2018   2018 
                       --------  --------  ---------  ---------  ----- 
 
 Average rates: 
   US$/GBP                 1.23      1.31       1.27       1.35   1.33 
   Euro/GBP                1.11      1.11       1.13       1.13   1.13 
   Yen/GBP                  133       146        139        148    147 
 
 Period-end rates: 
   US$/GBP                 1.23      1.30       1.23       1.30   1.27 
   Euro/GBP                1.13      1.12       1.13       1.12   1.11 
   Yen/GBP                  133       148        133        148    140 
 
 
 During Q3 2019 average Sterling exchange rates were weaker against 
  the US Dollar and Yen and flat against the Euro compared with the 
  same period in 2018. Similarly, during the nine months ended 30 September 
  2019, average Sterling exchange rates were weaker against the US 
  Dollar and the Yen and flat against the Euro. Period-end Sterling 
  exchange rates were weaker against the US Dollar and Yen but stronger 
  against the Euro compared with the 2018 period-end rates. 
 
 
 Net assets 
 The book value of net assets increased by GBP14,388 million from 
  GBP3,672 million at 31 December 2018 to GBP18,060 million at 30 September 
  2019. This primarily reflected the acquisition of the Pfizer consumer 
  healthcare business partly offset by the re-measurement losses on 
  defined benefit plans during the period. 
  The carrying value of investments in associates and joint ventures 
  at 30 September 2019 was GBP334 million (31 December 2018: GBP236 
  million), with a market value of GBP348 million (31 December 2018: 
  GBP487 million). 
  At 30 September 2019, the net deficit on the Group's pension plans 
  was GBP2,110 million compared with GBP995 million at 31 December 
  2018. The increase in the net deficit primarily arose from decreases 
  in the rates used to discount UK pension liabilities from 2.9% to 
  1.8%, and US pension liabilities from 4.2% to 3.1%, partly offset 
  by higher UK assets and a reduction in the UK inflation rate from 
  3.2% to 3.1%. 
  The estimated present value of the potential redemption amount of 
  the Pfizer put option related to ViiV Healthcare, recorded in Other 
  payables in Current liabilities, was GBP1,157 million (31 December 
  2018: GBP1,240 million). 
  Contingent consideration amounted to GBP6,126 million at 30 September 
  2019 (31 December 2018: GBP6,286 million), of which GBP5,713 million 
  (31 December 2018: GBP5,937 million) represented the estimated present 
  value of amounts payable to Shionogi relating to ViiV Healthcare 
  and GBP359 million (31 December 2018: GBP296 million) represented 
  the estimated present value of contingent consideration payable to 
  Novartis related to the Vaccines acquisition. 
  Of the contingent consideration payable (on a post-tax basis) to 
  Shionogi at 30 September 2019, GBP805 million (31 December 2018: 
  GBP815 million) is expected to be paid within one year. 
 
 
 Movements in contingent consideration were as follows: 
 
 
                                                  ViiV Healthcare   Group 
 9 months 2019                                               GBPm    GBPm 
                                                 ----------------  ------ 
 
 Contingent consideration at beginning of the 
  period                                                    5,937   6,286 
 Re-measurement through income statement                      421     500 
 Cash payments: operating cash flows                        (572)   (577) 
 Cash payments: investing activities                         (73)    (83) 
 
 Contingent consideration at end of the period              5,713   6,126 
                                                 ----------------  ------ 
 
 
 
                                                  ViiV Healthcare   Group 
 9 months 2018                                               GBPm    GBPm 
                                                 ----------------  ------ 
 
 Contingent consideration at beginning of the 
  period                                                    5,542   6,172 
 Re-measurement through income statement                      927     975 
 Cash payments: operating cash flows                        (517)   (792) 
 Cash payments: investing activities                         (67)   (123) 
 
 Contingent consideration at end of the period              5,885   6,232 
                                                 ----------------  ------ 
 
 
 
 Contingent liabilities 
 There were contingent liabilities at 30 September 2019 in respect 
  of guarantees and indemnities entered into as part of the ordinary 
  course of the Group's business. No material losses are expected to 
  arise from such contingent liabilities. Provision is made for the 
  outcome of legal and tax disputes where it is both probable that 
  the Group will suffer an outflow of funds and it is possible to make 
  a reliable estimate of that outflow. Descriptions of the significant 
  legal disputes to which the Group is a party are set out on page 
  53. 
 
 
 Business acquisition 
 The acquisition of the Pfizer consumer healthcare business completed 
  on 31 July 2019. 
  GSK and Pfizer have contributed their respective Consumer Healthcare 
  businesses into a new Consumer Healthcare Joint Venture in a non-cash 
  transaction, whereby GSK has acquired Pfizer's consumer healthcare 
  business in return for shares in the Joint Venture. GSK has an equity 
  interest of 68% and majority control of the Joint Venture and Pfizer 
  has an equity interest of 32%. 
  The non-controlling interest in the Consumer Healthcare Joint Venture, 
  calculated applying the partial goodwill method, represents Pfizer's 
  share of the net assets of the Joint Venture. 
  The goodwill in the business acquired from Pfizer represents the 
  potential for further synergies arising from combining the acquired 
  business with GSK's existing business together with the value of 
  the workforce acquired. The goodwill recognised is not expected to 
  be deductible for tax purposes. 
  Since acquisition on 31 July 2019, turnover of GBP0.5 billion arising 
  from the Pfizer consumer healthcare business has been included in 
  Group turnover and there has been no material impact on Group operating 
  profit. 
  The fair values of the net assets acquired, including goodwill, are 
  as follows: 
 
 
                                GBPbn 
                               ------ 
 
 Net assets acquired: 
  Intangible assets              12.5 
  Inventory                       1.0 
  Other net assets                0.2 
  Deferred tax liabilities      (2.7) 
                               ------ 
 
                                 11.0 
 Non-controlling interest       (3.5) 
 Goodwill                         3.9 
                               ------ 
 
 Total consideration             11.4 
                               ------ 
 
 
 
 These amounts are provisional and subject to change. 
 
 
 Reconciliation of cash flow to movements in net debt 
 
 
                                                     9 months   9 months 
                                                         2019       2018 
                                                         GBPm       GBPm 
                                                    ---------  --------- 
 
 Net debt, as previously reported                    (21,621)   (13,178) 
 Implementation of IFRS 16                            (1,303)          - 
                                                    ---------  --------- 
 
 Net debt at beginning of the period, as adjusted    (22,924)   (13,178) 
 
 Increase in cash and bank overdrafts                     502         19 
 Decrease in liquid investments                           (1)          - 
 Net increase in short-term loans                        (97)       (13) 
 Increase in long-term loans                          (4,822)   (10,090) 
 Repayment of lease liabilities                           159         17 
 Debt of subsidiary undertakings acquired               (518)          - 
 Exchange adjustments                                   (406)      (590) 
 Other non-cash movements                                (32)        (2) 
                                                    ---------  --------- 
 
 Increase in net debt                                 (5,215)   (10,659) 
                                                    ---------  --------- 
 
 Net debt at end of the period                       (28,139)   (23,837) 
                                                    ---------  --------- 
 
 
 
 Net debt analysis 
 
 
                                       30 September   30 September   31 December 
                                               2019           2018          2018 
                                               GBPm           GBPm          GBPm 
                                      -------------  -------------  ------------ 
 
 Liquid investments                              86             80            84 
 Cash and cash equivalents                    4,305          3,793         3,874 
 Cash and cash equivalents reported 
  in assets 
  held for sale                                 519              -           485 
 Short-term borrowings                      (8,216)        (2,902)       (5,793) 
 Long-term borrowings                      (24,833)       (24,808)      (20,271) 
                                      ------------- 
 
 Net debt at end of the period             (28,139)       (23,837)      (21,621) 
                                      -------------  -------------  ------------ 
 
 
 
 Free cash flow reconciliation 
 
 
                                                        9 months   9 months 
                                              Q3 2019       2019       2018 
                                                 GBPm       GBPm       GBPm 
                                             --------  ---------  --------- 
 
 Net cash inflow from operating activities      2,515      4,567      4,302 
 Purchase of property, plant and 
  equipment                                     (284)      (785)      (842) 
 Proceeds from sale of property, 
  plant and equipment                              16         86         70 
 Purchase of intangible assets                  (175)      (613)      (319) 
 Proceeds from disposals of intangible 
  assets                                           76         88        165 
 Net finance costs                               (60)      (473)      (403) 
 Dividends from joint ventures and 
  associates                                        -          -         39 
 Contingent consideration paid (reported 
  in investing 
  activities)                                    (32)       (83)      (123) 
 Distributions to non-controlling 
  interests                                     (117)      (313)      (535) 
 Contributions from non-controlling 
  interests                                         -          -         21 
 
 Free cash flow                                 1,939      2,474      2,375 
                                             --------  ---------  --------- 
 
 
 
 Reporting definitions 
 
 
 Total and Adjusted results 
  Total reported results represent the Group's overall performance. 
 
  GSK also uses a number of adjusted, non-IFRS, measures to report 
  the performance of its business. 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 are defined on page 9 and other non-IFRS measures 
  are defined below. 
 
  Free cash flow 
  Free cash flow is defined as the net cash inflow from operating activities 
  less capital expenditure on property, plant and equipment and intangible 
  assets, contingent consideration payments, net interest, and dividends 
  paid to non-controlling interests plus proceeds from the sale of 
  property, plant and equipment and intangible assets, and dividends 
  received from joint ventures and associates. It is used by management 
  for planning and reporting purposes and in discussions with and presentations 
  to investment analysts and rating agencies. Free cash flow growth 
  is calculated on a reported basis. A reconciliation of net cash inflow 
  from operations to free cash flow is set out on page 57. 
 
  Free cash flow conversion 
  Free cash flow conversion is free cash flow as a percentage of earnings. 
 
  Working capital 
  Working capital represents inventory and trade receivables less trade 
  payables. 
 
  CER and AER growth 
  In order to illustrate underlying performance, it is the Group's 
  practice to discuss its results in terms of constant exchange rate 
  (CER) growth. This represents growth calculated as if the exchange 
  rates used to determine the results of overseas companies in Sterling 
  had remained unchanged from those used in the comparative period. 
  CER% represents growth at constant exchange rates. GBP% or AER% represents 
  growth at actual exchange rates. 
 
  Pro-forma growth 
  The acquisition of the Pfizer consumer healthcare business completed 
  on 31 July 2019 and so GSK's reported results include two months 
  of results of the former Pfizer consumer healthcare business from 
  1 August 2019. 
 
  The Group has presented pro-forma growth rates at CER for turnover, 
  Adjusted operating profit and operating profit by business taking 
  account of this transaction. Pro-forma growth rates for the quarter 
  are calculated comparing reported results for Q3 2019, calculated 
  applying the exchange rates used in the comparative period, with 
  the results for Q3 2018 adjusted to include the equivalent two months 
  of results of the former Pfizer consumer healthcare business during 
  Q3 2018, as consolidated (in US$) and included in Pfizer's US GAAP 
  results. Similarly, pro-forma growth rates at CER for the nine months 
  to 30 September 2019 are calculated comparing reported results for 
  the nine months to 30 September 2019, calculated applying the exchange 
  rates used in the comparative period, with the results for the nine 
  months to 30 September 2018, adjusted to include the equivalent two 
  months of results of the former Pfizer consumer healthcare business, 
  as consolidated (in US$) and included in Pfizer's US GAAP results. 
 
 
 Brand names and partner acknowledgements 
  Brand names appearing in italics throughout this document are trademarks 
  of GSK or associated companies or used under licence by the Group. 
  Gardasil is a trademark of Merck Sharp & Dohme Corp. 
 
 
 Outlook, assumptions and cautionary statements 
 
 
 2016-2020 outlook 
  In May 2015, GSK announced that it expected Group sales to grow at 
  CER at a low-to-mid single digits percentage CAGR and Adjusted EPS 
  to grow at CER at a mid-to-high single digit percentage CAGR for 
  the period 2016-2020. On 3 December 2018, GSK announced that it continued 
  to expect to deliver on its previously published Group outlooks to 
  2020, but, following the acquisition of Tesaro, expected Adjusted 
  EPS growth at CER for the period 2016-2020 to be at the bottom end 
  of the mid-to-high single digit percentage CAGR range. These outlooks 
  are based on 2015 exchange rates. 
 
  Assumptions related to 2019 guidance and 2016-2020 outlook 
  In outlining the expectations for 2019 and the five-year period 2016-2020, 
  the Group has made certain assumptions about the healthcare sector, 
  the different markets in which the Group operates and the delivery 
  of revenues and financial benefits from its current portfolio, pipeline 
  and restructuring programmes. 
 
  For the Group specifically, over the period to 2020, GSK expects 
  further declines in sales of Seretide/Advair. The introduction of 
  a generic alternative to Advair in the US has been factored into 
  the Group's assessment of its future performance. The Group assumes 
  no premature loss of exclusivity for other key products over the 
  period. 
 
  The assumptions for the Group's revenue, earnings and dividend expectations 
  assume no material interruptions to supply of the Group's products, 
  no material mergers, acquisitions or disposals, except for the acquisition 
  of Tesaro, the proposed divestment of Horlicks and other Consumer 
  Healthcare products to Unilever and the formation of a new Consumer 
  Healthcare Joint Venture with Pfizer, all announced in December 2018, 
  no material litigation or investigation costs for the Company (save 
  for those that are already recognised or for which provisions have 
  been made), no share repurchases by the Company, and no change in 
  the Group's shareholdings in ViiV Healthcare. The assumptions also 
  assume no material changes in the macro-economic and healthcare environment. 
  The 2019 guidance and 2016-2020 outlook have factored in all divestments 
  and product exits since 2015, including the divestment and exit of 
  more than 130 non-core tail brands (GBP0.5 billion in annual sales) 
  as announced on 26 July 2017 and the product divestments planned 
  in connection with the proposed Consumer Healthcare transaction with 
  Pfizer. 
 
  The Group's expectations assume successful delivery of the Group's 
  integration and restructuring plans over the period 2016-2020, including 
  the extension and enhancement to the combined programme announced 
  on 26 July 2017 as well as the new major restructuring plan announced 
  on 25 July 2018. They also assume that the proposed divestment of 
  Horlicks and other Consumer Healthcare products to Unilever closes 
  in Q1 2020 and that the integration and investment programmes following 
  the Tesaro acquisition and the Consumer Healthcare Joint Venture 
  with Pfizer over this period are delivered successfully. Material 
  costs for investment in new product launches and R&D have been factored 
  into the expectations given. Given the potential development options 
  in the Group's pipeline, the outlook may be affected by additional 
  data-driven R&D investment decisions. The expectations are given 
  on a constant currency basis (2016-2020 outlook at 2015 CER). 
 
  Due to the progress made in settling historic disputes together with 
  the changing product mix we expect the effective tax rate for the 
  year to be 17%. 
 
  Assumptions and cautionary statement regarding forward-looking statements 
  The Group's management believes that the assumptions outlined above 
  are reasonable, and that the aspirational targets described in this 
  report are achievable based on those assumptions. However, given 
  the longer term nature of these expectations and targets, they are 
  subject to greater uncertainty, including potential material impacts 
  if the above assumptions are not realised, and other material impacts 
  related to foreign exchange fluctuations, macro-economic activity, 
  changes in regulation, government actions or intellectual property 
  protection, actions by our competitors, and other risks inherent 
  to the industries in which we operate. 
 
  This document contains statements that are, or may be deemed to be, 
  "forward-looking statements". Forward-looking statements give the 
  Group's current expectations or forecasts of future events. An investor 
  can identify these statements by the fact that they do not relate 
  strictly to historical or current facts. They use words such as 'anticipate', 
  'estimate', 'expect', 'intend', 'will', 'project', 'plan', 'believe', 
  'target' and other words and terms of similar meaning in connection 
  with any discussion of future operating or financial performance. 
  In particular, these include statements relating to future actions, 
  prospective products or product approvals, future performance or 
  results of current and anticipated products, sales efforts, expenses, 
  the outcome of contingencies such as legal proceedings, dividend 
  payments and financial results. Other than in accordance with its 
  legal or regulatory obligations (including under the Market Abuse 
  Regulation, the UK Listing Rules and the Disclosure and Transparency 
  Rules of the Financial Conduct Authority), the Group undertakes no 
  obligation to update any forward-looking statements, whether as a 
  result of new information, future events or otherwise. The reader 
  should, however, consult any additional disclosures that the Group 
  may make in any documents which it publishes and/or files with the 
  SEC. All readers, wherever located, should take note of these disclosures. 
  Accordingly, no assurance can be given that any particular expectation 
  will be met and investors are cautioned not to place undue reliance 
  on the forward-looking statements. 
 
  Forward-looking statements are subject to assumptions, inherent risks 
  and uncertainties, many of which relate to factors that are beyond 
  the Group's control or precise estimate. The Group cautions investors 
  that a number of important factors, including those in this document, 
  could cause actual results to differ materially from those expressed 
  or implied in any forward-looking statement. Such factors include, 
  but are not limited to, those discussed under Item 3.D 'Risk Factors' 
  in the Group's Annual Report on Form 20-F for 2018. Any forward looking 
  statements made by or on behalf of the Group speak only as of the 
  date they are made and are based upon the knowledge and information 
  available to the Directors on the date of this report. 
 
  Cautionary statement regarding pro-forma growth rates 
  The pro-forma growth rates at CER in this Results Announcement have 
  been provided to illustrate the position in Q3 2019 relative to the 
  position in Q3 2018 as if, for the purposes of the Q3 2018 results, 
  the acquisition of the Pfizer consumer healthcare business had taken 
  place as at 31 July 2018 and that, accordingly, two months of results 
  of the former Pfizer consumer healthcare business were included in 
  Q3 2018. Similarly, pro-forma growth rates have been provided to 
  illustrate the position for the nine months to 30 September 2019 
  relative to the position for the nine months to 30 September 2018 
  as if, for the purposes of the nine months to 30 September 2018 results, 
  the acquisition of the Pfizer consumer healthcare business had taken 
  place as at 31 July 2018 and that, accordingly, two months of results 
  of the former Pfizer consumer healthcare business were included in 
  the nine months to 30 September 2018. The results of the former Pfizer 
  consumer healthcare business included for Q3 2018 and the nine months 
  to 30 September 2018 are as consolidated (in US$) and included in 
  Pfizer's US GAAP results. The results for Q3 2019 and the nine months 
  to 30 September 2019 used to calculate the pro-forma growth rates 
  are as reported at CER. 
 
  The pro-forma growth rates have been provided for illustrative purposes 
  only and, by their nature, address a hypothetical situation and therefore 
  do not represent the Group's actual growth rates. The pro-forma growth 
  rates do not purport to represent what the Group's results of operations 
  actually would have been if the Pfizer acquisition had been completed 
  on the date indicated, nor do they purport to represent the results 
  of operations at any future date. In addition, the pro-forma growth 
  rates do not reflect the effect of anticipated synergies and efficiencies 
  or accounting and reporting differences associated with the acquisition 
  of the Pfizer consumer healthcare business. 
 
 
 Independent review report to GlaxoSmithKline plc 
 
 
 We have been engaged by GlaxoSmithKline plc ("the Company") to review 
  the condensed financial information in the Results Announcement for 
  the three and nine months ended 30 September 2019. 
 
 
 What we have reviewed 
 The condensed financial information comprises: 
 --    the income statement and statement of comprehensive income for 
        the three and nine month periods ended 30 September 2019 on pages 
        41 to 43; 
 --    the balance sheet as at 30 September 2019 on page 48; 
 --    the statement of changes in equity for the nine month period then 
        ended on page 49; 
 --    the cash flow statement for the nine month period then ended on 
        page 50 and; 
 --    the accounting policies and basis of preparation and the explanatory 
        notes to the condensed financial information on pages 51 to 57 
        that have been prepared applying consistent accounting policies 
        to those applied by the Group in the Annual Report 2018, which 
        was prepared in accordance with International Financial Reporting 
        Standards ("IFRS") as adopted by the European Union, except for 
        the implementation of IFRS 16 "Leases" and IFRIC 23 "Uncertainty 
        over Income Tax Treatments" from 1 January 2019. 
 
 We have read the other information contained in the Results Announcement, 
  including the non-IFRS measures contained on pages 51 to 57,and considered 
  whether it contains any apparent misstatements or material inconsistencies 
  with the information in the condensed set of financial statements. 
 
  This report is made solely to the Company in accordance with International 
  Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim 
  Financial Information Performed by the Independent Auditor of the 
  Entity" issued by the Auditing Practices Board. Our work has been 
  undertaken so that we might state to the Company those matters we 
  are required to state to it in an independent review report and for 
  no other purpose. To the fullest extent permitted by law, we do not 
  accept or assume responsibility to anyone other than the Company, 
  for our review work, for this report, or for the conclusions we have 
  formed. 
 
  Directors' responsibilities 
  The Results Announcement of GlaxoSmithKline plc, including the condensed 
  financial information, is the responsibility of, and has been approved 
  by, the directors. The directors are responsible for preparing the 
  Results Announcement by applying consistent accounting policies to 
  those applied by the Group in the Annual Report 2018, which was prepared 
  in accordance with IFRS as adopted by the European Union, except 
  for the implementation of IFRS 16 "Leases" and IFRIC 23 "Uncertainty 
  over Income Tax Treatments" from 1 January 2019. 
 
  Our responsibility 
  Our responsibility is to express to the Company a conclusion on the 
  interim financial information in the Results Announcement based on 
  our review. 
 
  Scope of review 
  We conducted our review in accordance with International Standard 
  on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial 
  Information Performed by the Independent Auditor of the Entity" issued 
  by the Auditing Practices Board for use in the United Kingdom. A 
  review of interim financial information consists of making inquiries, 
  primarily of persons responsible for financial and accounting matters, 
  and applying analytical and other review procedures. A review is 
  substantially less in scope than an audit conducted in accordance 
  with International Standards on Auditing (UK) and consequently does 
  not enable us to obtain assurance that we would become aware of all 
  significant matters that might be identified in an audit. Accordingly, 
  we do not express an audit opinion. 
 
  Conclusion 
  Based on our review, nothing has come to our attention that causes 
  us to believe that the condensed interim financial information in 
  the Results Announcement for the three and nine months ended 30 September 
  2019 are not prepared, in all material respects in accordance with 
  the accounting policies set out in the accounting policies and basis 
  of preparation section on page 54. 
 
 
  Deloitte LLP 
  Statutory Auditor 
  London, United Kingdom 
  30 October 2019 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

QRTWGGBCUUPBGUU

(END) Dow Jones Newswires

October 30, 2019 08:00 ET (12:00 GMT)

Grafico Azioni Glaxosmithkline (LSE:GSK)
Storico

1 Anno : Da Feb 2019 a Feb 2020

Clicca qui per i Grafici di Glaxosmithkline

Grafico Azioni Glaxosmithkline (LSE:GSK)
Intraday

Oggi : Martedì 18 Febbraio 2020

Clicca qui per i Grafici di Glaxosmithkline
La tua Cronologia
BIT
BMPS
Monte Pasc..
BITI
FTSEMIB
FTSE Mib
BIT
UCG
Unicredit
NASDAQ
AAPL
Apple
FX
EURUSD
Euro vs Do..
Le azioni che visualizzerai appariranno in questo riquadro, così potrai facilmente tornare alle quotazioni di tuo interesse.

Registrati ora per creare la tua watchlist personalizzata in tempo reale streaming.

Per accedere al tempo reale push di Borsa è necessario registrarsi.

Accedendo ai servizi offerti da ADVFN, ne si accettano le condizioni generali Termini & Condizioni

P: V:it D:20200218 07:21:45