Our mission and strategy
Our mission is to help people do more, feel better, live longer.
The business is focused around the delivery of three strategic priorities which aim to increase growth, reduce risk and improve our long-term financial performance. These priorities are: grow a diversified global business, deliver more products of value, and simplify the operating model.
Operating responsibly and ensuring our values are embedded in our culture and decision-making helps us better meet the expectations of society.
Grow a diversified business
We have been creating a more balanced business and product portfolio, capable of delivering sustainable sales growth.
This is centred on our three business areas of Pharmaceuticals, Vaccines and Consumer Healthcare.
In March 2015 we acquired Novartis’s vaccines business (excluding influenza) and combined our Consumer Healthcare businesses to create a new company.
£23bn Group turnover
97,921 employees (31 December 2014)
40% Group turnover outside USA and Europe
- Successful launch and commercialisation of new products from our pipeline
- Continue to invest in key growth businesses including Emerging Markets, Vaccines and Consumer Healthcare
- Look for further opportunities to increase focus and optimise value of our product portfolio
Deliver more products of value
We have changed our R&D organisation so that it is better able to sustain a pipeline of products that offer valuable improvements in treatment for patients and healthcare providers.
This is underpinned by a focus on improving productivity and rates of return in R&D.
4 significant new product approvals in 2014
40 medicines in phase II/III development
- Delivery of phase III data for six potential new medicines and vaccines and around ten NME phase III starts across 2014/2015
- Continued focus on increasing R&D rate of return
Simplify the operating model
As our business continues to change shape, we are transforming how we operate so that we can reduce complexity and become more efficient.
This frees up resources to reinvest elsewhere in the business.
£400m incremental savings during 2014
£3.5 billion cumulative annual cost savings delivered through a range of restructuring programmes since 2008
21 working capital days improvement (adjusted)
- Execute Pharmaceuticals restructuring programme to save £1 billion per annum over three years.
- Continue streamlining product portfolio embedding common processes.
- Execute restructuring programme related to the Novartis transaction to save £1 billion per annum by fifth year from closing.
Being a responsible business is central to our strategy, and how we deliver success is just as important as what we achieve. Ensuring our values are embedded in our culture and decision-making helps us better meet the expectations of society.
- Collaborated with partners to accelerate development of Ebola vaccine candidate.
- Delivered global roll-out of new sales force compensation approach.
- Launched new Africa strategy to reach 80% of the sub-Saharan African and Least Developed Countries population by 2020.
- In early 2015 we extended our price freeze commitment to 10 years for Gavi-graduating countries.
- Continue to enhance governance, compliance and quality through proactive risk management and quality-led culture.
- Deliver new commercial model globally by changing the way we work with HCPs.
- Improve leadership effectiveness and quality of talent.
- Continue to progress development of Ebola vaccine candidate.