glaxosmithkline pharmaceuticals ltd Management discussions

<dhhead>Management</dhhead>

discussion and analysis Indian economic review The Indian economy demonstrated esilient growth in FY 2022-23, registering GDP growth of 7%.1 The country’s recovery from the pandemic was relatively quick compared to other developing economies, and growth in the coming year will be supported by robust domestic demand and a pickup in capital investment. The Economic Survey projects a baseline GDP growth of 6.5% in real terms in FY 2023-24.

6.5% Expected growth in FY 2023-24 Industry review Indian pharmaceutical sector

The Indian pharma industry has grown at a compounded annual growth rate of (CAGR) of ~11% in the domestic market over the last two decades.2 The industry is presently valued at USD 49 billion3 and is the world’s third largest by volume. In terms of value, the Indian pharma sector ranks 14th.4 In the last few years, the sector is working to fulfill the country’s healthcare demands while also expanding its global footprint.

The year 2023 holds a positive outlook for India’s pharmaceutical industry and with the growing consensus among businesses over providing new innovative therapies to patients, the Indian pharmaceutical market is estimated to touch USD 130 billion in value by the end of 20305 and become the leading provider of medicines to the world.

9.43%

CAGR growth in nine years

USD 49 billion

Current value

3rd

Largest in the world by volume

USD 130 billion

By 2030

Indian pharma sector highlights in

Pain acute grew by 10%	Anti-infectives grew by 5%	Vitamins/ minerals/ nutrients (VMN) and Dermatology recorded consistent growth
Antivirals recorded -59% owing to high base in 2021	Vaccine market declined by 18%

 

1 National Statistics Office (NSO)

2 https://www.ey.com/en_in/health/how-the-indian-pharmaceutical-industry-may-transform-post-pandemic

3 https://www.india.com/business/49-billion-and-3rd-largest-in-the-world-indian-pharma-industry-likely-to-grow-to-130-billion-by-2030-5633319/ 4 https://pharmaceuticals.gov.in/sites/default/files/english%20Annual%20Report%202020-21.pdf

5 EY FICCI report, https://www.investindia.gov.in/team-india-blogs/budget-2023-boosting-pharmaceutical-sector#:~:text=According%20to%20the%20EY%20 FICCI,new%2C%20innovative%20medicines%20to%20patients.

Key trends in the Indian pharma industry

Changing government and regulatory landscape	Policy tightening and quicker regulatory approvals are increasing competitiveness
	Focus on quality assurance and control is becoming more critical with increasing vigilance from regulators
	The government has updated the National List of Essential Medicines (NLEM) and is emphasising on drugs that are seeing high usage; this is largely impacting brands that command premium price

 

Shifting industry dynamics	Increasing investments in India by global players
	Focus on value addition rather than pricing
	Shift from a competitive to collaborative mindset

 

Emergence of new go-to- market (GTM) models	The ability to manage various channels and consumers is becoming particularly crucial as
	pharmaceutical organisations evolve along the lines of fast moving consumer goods (FMCG)/ consumer players
	Patient empowerment and the growing collaboration between physicians and pharmacists

 

Digital: backbone of transformation

To remain competitive, companies need to demonstrate agility in responding to the changing relationship dynamics triggered by new digital players, and invest in data and analytics capabilities

 

Company overview

With a legacy of nearly 100 years in India, GlaxoSmithKline Pharmaceuticals Limited is a subsidiary of UK-based GSK plc, a global biopharma company with a purpose to unite science, technology and talent to get ahead of disease together.

Your company has a broad portfolio of established medicines with commercial leadership in anti-infectives, pain, dermatology and vitamins. Your company leads in the vaccines self-pay market, the dermatology segment in India and your company’s Specialty medicines are innovative solutions in the respiratory therapy area. Your company is headquartered in Mumbai and it has six branch offices, a manufacturing facility at Nashik in Maharashtra, 22 contract manufacturing organisations (CMOs) with regional and sales hubs across India.

Business performance

Your company’s portfolio includes General Medicines, Vaccines and Specialty medicines that help prevent and treat disease. Your company’s three business verticals comprise various brands with some of them featuring amongst the top brands in the Indian Pharmaceuticals Market (IPM), as per IQVIA.

1. General medicines

Strong growth and leadership driven by focus brands

Your company’s continued emphasis on execution ensured consistent growth of your company’s focus brands which are growing ahead of the IPM with an evolution index (EI) greater than 100.

Four of your company’s General Medicines brands – Augmentin, Calpol, T-Bact and Ceftum – rank amongst the top 50 brands in the IPM, as per IQVIA. Most of your company’s other key brands in General Medicines continued to outperform their respective categories and gained market share in 2022.

Your company continues to rank #1 in the dermatology segment in India. Your company’s market share allowed the dermatology team to further consolidate its market position by deepening connect with HCPs across geographies. T-bact is one of the top 50 brands in the IPM. Your company is contemporising its General Medicines brands. Calpol 650, the #1 paracetamol brand in the IPM, is now Calpol 650+ which features ‘Optizorb Formulation’, a technology that helps in faster dissolution of the molecule. Augmentin ES has also been launched during the reporting year. It is an antibiotic which is targeted to penicillin-resistant S. Pneumonia (PRSP) and helps fight antimicrobial resistance (AMR).

Embracing digital channels for engagement

Digital-first approach

Adoption of omnichannel approach to reach more HCPs to positively impact patients that rely on your company’s medicines

1/3rd

Of total HCP interactions in 2022 for general medicines were conducted through digital channels

2. Vaccines

a) Paediatric vaccination

During the reporting year, your company’s focus vaccine brands gained market share as well as maintained their leadership positions. Five of your company’s vaccines featured amongst the top 15 vaccines in the self-pay market (IQVIA MAT March 2023). The vaccines self-pay market has been impacted due to expanded offerings in the National Immunization Program (NIP) and a general slowdown in uptake of vaccines. However, the NIP has now stabilised and your company expects the self-pay market to recover The supply of some key vaccines is expected to increase which will help us to accelerate growth in the self-pay market.

Strategic imperatives to ensure your company’s vaccines can protect more people:

1. Improve your company’s reach to more paediatricians and key accounts

2. Improve vaccination awareness

3. Be innovative and relevant to the external environment

Consumer campaigns have played an instrumental role in building and shaping the vaccination market. In FY 2022-23, your company ran four major consumer campaigns addressing various concerns and misconceptions regarding vaccination.

b) Adult vaccination

Your company is a leader in the self-pay paediatric vaccines market and also has a robust adult vaccine portfolio in the country, which it aims to expand with the creation of a new category.

Your company currently markets the flu vaccine, Fluarix Tetra, for the elderly and pregnant women, and, Boostrix, a DTP booster vaccine, recommended for expecting mothers.

Your company is committed to creating a new adult vaccine category in India with the launch of Shingrix, a vaccine for prevention of herpes zoster (HZ) and post-herpetic neuralgia (PHN), in adults 50 years of age or older.

To focus efforts on helping to protect more patients against this painful disease, a dedicated adult vaccines team has been established. Over 200 people have been recruited across the sales, marketing, and support functions to offer the vaccine to a client base that is new to vaccination procedures, including physicians, dermatologists, and rheumatologists, among others.

While the adult vaccination team will lead the launch, for the first time, the whole organisation will assist this effort by distributing Shingrix to every client.

3. Specialty

Making a difference for patients with severe eosinophilic asthma, HES, EGPA and COPD in India

Severe Eosinophilic Asthma

Your company launched Nucala in 2019 for severe eosinophilic asthma which is a rare type of asthma and usually diagnosed in adults. Given the rarity and complexity of the disease, Nucala has been able to make a positive difference in the lives of these patients by helping to reduce exacerbations and hospitalisation.

Nucala auto-injector

Your company also launched an auto-injector version of Nucala in 2020 which is a user-friendly device to self-administer Nucala at home, as advised by the physician. This device improves treatment compliance and adherence because patients can now self-administer Nucala at home without having to visit a hospital or nursing home.

As your company continues to make a positive impact in the quality of life of these patients, it has also forayed into two new indications from 2022 such as Eosinophilic Granulomatosis with Polyangiitis (EGPA) and Hypereosinophilic Syndrome (HES).

1,000+*

Patients benefitted since the launch of Nucala

35%*

Growth in revenue from Nucala

50%*

Increase in number of trade patients

* internal data

Trelegy is currently the most prescribed Single Inhaler Triple Therapy (SITT) worldwide and has positively impacted lives of several chronic obstructive pulmonary disease (COPD) patients in various countries. This ‘once daily’ single inhaler triple therapy for COPD was launched in India in 2022.

In India, your company is making a meaningful difference for patients suffering from COPD, who are accustomed to using multiple inhalers, with Trelegy Ellipta’s unique, simple and patient friendly device mechanism in the world of inhalers.

Opportunities and challenges for your company

	Adult vaccination
	While interest in adult or adolescent vaccination has never been high in India despite the fairly successful Universal Immunization Program (UIP), COVID-19 vaccination drives started conversations on adult vaccination and have given it an impetus.
Opportunities	With increased life expectancy and a growing segment of the elderly population in India, healthy aging is emerging as a larger area of focus. A key intervention for healthy aging continues to be preventive health led by vaccination strategies. Adult vaccination is in a nascent stage in India with a large potential for growth. For instance, the virus that causes Shingles affects over 90% of adults aged 50 years and above.

 

 

	Price control impact
	Unfavorable regulations on product prices may impact revenues and profit margins, as your company operates in a price regulated market. Your company periodically assesses its product portfolio to make it more diversified, with focus on high
Challenges	volume growth products and operational efficiencies to control costs.
	Once every five years, the National List of Essential Medicines (NLEM) is declared. In late 2022, the NLEM included your company’s brands Ceftum and T-Bact in this price ceiling list. Your company’s initiatives to mitigate the price impact on these key brands is to increase volumes, drive cost optimisation and leverage the launch of Shingrix to not only create a new category in India for adult vaccines but also make it a significant growth lever for your company. Molecules of some of your company’s vaccines, such as that of Synflorix or Rotarix, have been included in the NIP.
	However, these NIP vaccines are now getting stabilised as the self-pay vaccines market begins to regain momentum.
	The overall growth of your company’s existing vaccines portfolio is being driven by other vaccines such as Infanrix Hexa, Boostrix and Menveo.
	Supply chain disruptions
	Ongoing geopolitical crises have led to supply chain disruptions and rising cost of raw materials. Given the reliance on import of active pharmaceutical ingredients (APIs), Indian pharmaceutical companies are susceptible to supply shocks and input material price increases. Your company is also prone to these near-term risks.

 

4. Supply chain and manufacturing excellence

Your company’s world-class manufacturing facility in Nashik, along with its contract manufacturing organisations (CMOs), have helped your company provide patients with high-quality pharmaceutical products.

Source: GSK Employee Health & Well-being Dashboard Compliance Score - 2022

Your company has set its environment sustainability target of net zero impact by 2030. Your company’s CMOs have started gearing up to deliver on your company’s sustainability commitments. In 2022, your company’s manufacturing facility in Nashik site has made progress in its commitments towards energy conservation, recycling of

waste water and overall reduction in carbon dioxide (CO2) emissions.

Your company continued to de-risk manufacturing capabilities of existing CMOs and develop alternate product sources in vicinity of demand nodes and devise business continuity plans including re-aligning resources to execute them.

Over 600 KW

Installed solar photovoltaic system

Increase in production capabilities, particularly for products such as Calpol, Augmentin liquids, CCM, T-Bact and the localisation of Ceftum will help drive the growth trajectory upwards for your company. Your company continued to maintain COVID-appropriate behaviours across its manufacturing setup, driving quality assurance measures, health and safety precautions while maintaining high standards of good manufacturing practices (GMP) compliance. As a result, your company ensured no loss of production, zero reportable incidences and high service delivery.

Warehousing and logistics

Your company’s distribution network continues to evolve and helps us to consolidate the warehousing network to reach strategic locations while ensuring high levels of customer service, maintaining and improving supply chain resilience.

Your company is driving its Go-Digital agenda and has made significant progress in implementing automation and digitisation initiatives, helping rationalise its operating model and costs. This has also helped your company’s processes become more transparent, ensured better compliance while allowing us to continue serving the needs of patients who rely on the quality medicines that we manufacture.

5. Finance and accounts

During FY 2022-23, your company’s profit margins and EBITDA recorded a healthy growth even though the revenue from continuing operations remained flat at H 3216 crores impacted by a declining self-pay vaccines market. Profit before tax (PBT) from continuing operations before exceptional items at H 833 crores recorded a growth of 9%. EBITDA margins 24.9% improved by 1.4% from the previous fiscal. Profit after tax (PAT) from continuing operations before exceptional items has increased by 66% due to tax charges considered in the previous fiscal pertaining to potential litigations from prior periods. Adjusting for these tax charges, the PAT from continuing operations before exceptional items improved by 10%. During the reporting year, the General Medicines portfolio grew by 5% led by anti-infectives and dermatology therapies even though we were impacted by price revisions under National List of Essential Medicines (NLEM), 2022 announced in Q4 2022-23. Augmentin is the no. 1 brand in the IPM. Your company continued to maintain market leadership in the therapy areas in which it operates.

Your company’s cash flow from operations remained robust throughout the year and was consistent with the solid fundamental business performance. Your company’s efforts continued on improving working capital efficiencies and accelerating cash conversion. There are no loans or guarantees given, securities provided, and investments covered under Section 186 of the Companies Act, 2013. As of March 31, 2023, there was no outstanding amount owed to depositors for unclaimed deposits. Further, there are no significant or material orders issued by regulators, courts, or tribunals that have an impact on the going concern status of your company and its future operations. Your company’s financial position, as of the date of this report, has not been materially altered by recent events or obligations.

Profitability Ratios	Formula	31-Mar-23	31-Mar-22
Operating Profit Margin (%)	Profit from Operations/Sale of Products	23.04%	21.79%
Net Profit Margin (%)*	Profit after Tax (excl. exceptional)/ Revenue from operations	18.79%	11.85%
Return on Net Worth*	Profit after Tax (excl. exceptional)/ Shareholders equity	34.69%	21.71%
EBITDA %	EBITDA/Revenue from operations	24.82%	23.57%
Return on Capital Employed*	Profit before Tax (excl. Exceptional)/Net Worth	47.77%	43.49%
Efficiency Ratios
Current Ratio	Current assets/ current liabilities	1.87	2.19
Inventory turnover ratio	Sale of products/ Average inventories	6.74	6.73
Debtors turnover ratio	Sale of products/ Average trade receivables	16.11	16.58

 

Ratios are calculated including profits from discontinued operations but excludes the impact of sale of brands and identified assets and other exceptional items. (Refer Note 39 and 54 of the Standalone Financial Statements) *Ratios for the previous year ended March 31, 2022 was impacted by tax adjustment of prior years (~188 cr). Excluding the impact of same Net profit margin (%) comes out to be 17.19%, Return on Net Worth would be 28.69% and Return on Capital Employed would be 39.61%.

6. Regulatory affairs

The following applications were submitted to Central Drugs Standard Control Organisation (CDSCO) for marketing authorisation in India: Marketing authorisation was successfully obtained for label expansion of Mepolizumab Solution for Injection (Nucala) to include two additional indications: Eosinophilic granulomatosis with polyangitis (EGPA) Hypereosinophilic syndrome (HES) in adults

In addition, all the required regulatory approvals for the import and sale of your company’s Herpes Zoster vaccine (Shingrix) had been secured.

The following Global Clinical Trial Applications were submitted and approved by CDSCO during the year: A multi-country phase I/II study with your company’s S.aureus candidate vaccine in adults with a recent S. aureus skin and soft tissue infection (SSTI) [STAPH AUREUS BIOCONJ-001 STG] A multi-country phase II study with Belantamab Mafodotin in participants with Relapsed or Refractory Multiple Myeloma (DREAMM-14)

Overall, 11 studies are being conducted/ planned for initiation in India by your company in India.

These filings and approvals will enable timely access to new and innovative therapeutic options for patients in India.

7. Medical affairs

1.

Anti-microbial resistance (AMR)

Your company is undertaking initiatives to address the issue of AMR in India. Through local, regional, and national meetings and major congress presentations, as well as industry-wide stakeholder discussions on combatting AMR, it has been at the forefront of advancing the appropriate communication of the science behind its medicines.

Over 1,000 one-on-one discussions with experts, including infectious diseases (ID), chest physicians, paediatrics, and ear, nose, and throat (ENT) specialists

to bridge the current gaps in addressing AMR through HCP education and patient awareness campaigns.

Your company successfully led

Advanced Surgical Conclave for ENTs (ASCENT) for disseminating high science to ENTs on advancements in surgery and perioperative infection management. Your

company also continues to advance research by generating information on the safety and efficacy of its medications in Phase IV clinical studies, which has resulted in multiple successful papers on the proper use of antibiotics and addressing AMR. Your company’s continued efforts to make real-world antibiotic susceptibility data for community-acquired illnesses in India available to the HCP community would assist them in making proper antibiotic choices in the management of diverse diseases.

Over 170 internal medical-led scientific presentations to ~25,000 HCPs

2.

Dermatology

In Dermatology, the medical team continued to focus its efforts on promoting medical education initiatives in the areas of rational topical steroid antibiotic usage, correct diagnosis and management of common skin disorders, and other critical areas.

Bridging Insights from Dermatology Group of Experts (BRIDGE), one of your

company’s flagship medical affairs-led programmes, attempts to improve patient outcomes through expert talks on difficult patient cases. A multidisciplinary event for the top 500 dermatological professionals from ten locations was a huge success. In 2022, the Medical team launched ‘Dermatosis Case Study (DCS) Clinics,’ which were created particularly to involve major dermatological specialists working in leading medical schools and dermatology postgraduate students. In 2022, the team held 250+

DCS clinics, involving 600+ institutional dermatologists in

highly scientific case-based discussions on difficult skin disorders.

Another successful initiative,

‘eCLINICS: PG ki Pathshala’,

a learning platform to support post-graduate curriculum of young dermatologists, continues to strengthen your company’s connect with young dermatologists by not only aiding practical viva exam preparation but also generating numerous clinical pearls from renowned dermatology academicians across India for PG students. The Medical team also introduced ‘Dermalogue’, a one-of-a-kind medical education effort aiming to collect professionals’ thoughts on the most recent breakthroughs in clinical and cosmetic dermatology, with an emphasis on updates relevant to the Indian context. This project involved over 1,000

dermatologists and was well

received by dermatological professionals.

500+ scientific presentations delivered to 22,000+ HCPs

3.

Hypothyroidism

In the domain of hypothyroidism therapy, your company’s Medical team

held four Cross Specialty Experts Symposium (CREST) meetings on ‘Thyroid Dysfunction in Women’, which

are healthcare organisation (HCO) collaboration sessions employing the knowledge of 24 professors

(mix of obstetrician-gynaecologists (OB-GYN) and endocrinologists) and training over 400 HCPs on

hypothyroidism.

~400

HCPs trained on hypothyroidism

4.

Vaccines

Continuing the journey as a trusted scientific partner, your companys

Medical Affairs team delivered speaker sessions in 216 meetings, which as a key scientific dissemination tool, enabled your company to engage more than 8,000

HCPs. Robust data-driven scientific interactions facilitated 1,041 one-on-one dialogues to impart right clinical practice wisdom. The team also supported various consumer awareness campaigns such as MyVaccinationHub.in, the 6 in 1 vaccination campaign, Hepatitis & Flu campaigns. The team was also critical in rolling out internal capability building initiatives. The Medical team partnered with external experts to drive scientific publications to continue to strengthen your company’s scientific advocacy in the field of paediatric vaccination.

As a scientific leader driving innovation in adult immunisation in India, the Adult Vaccines Medical team represented to the regulatory authorities and played a critical role in obtaining a Marketing Authorisation for Shingrix parallel to running Phase III clinical trials to fulfill the unmet medical need for Indian patients with potential risk to develop Herpes Zoster (HZ). Also, as the risk of influenza is greater in people aged more than 65 years, with a patient-centric approach, your company successfully obtained regulatory extension for the use of Fluarix Tetra in 65+ age group with phase IV clinical trial commitment. The team is working with external experts to develop scientific advocacy for Shingles prevention through several medical education activities in congresses, collaborations with healthcare organisations as well as publications.

Your companys Medical Affairs team trained over 150 vaccine sales colleagues, comprising vaccine specialists, business leads and customer managers. Your

company’s Shingrix team is now well-equipped with appropriate knowledge to now disseminate science to HCPs. In 2023, your company is planning to increase awareness around Shingles and its prevention by collaborating with several HCPs and healthcare organisations through various scientific initiatives. These include medical education programmes and symposia, participation at national congresses and even clinical research collaborations. Several patient- and consumer-facing initiatives such as disease education and awareness are also being planned.

5.

Specialty

In 2022, your company launched Trelegy (SITT with FF/UMEC/VIL) for COPD patients in India. In addition, your company also obtained regulatory approval for the additional rare indications of HES (Hypereosinophilic Syndrome) and EGPA (Eosinophilic granulomatosis with polyangiitis) for Nucala (Mepolizumab). This increased access for eligible patients to Mepolizumab further strengthens your companys presence in the eosinophilic diseases spectrum in India. India is a part of the multi-country real world evidence study on Mepolizumab in severe eosinophilic asthma. Your company also initiated the Nucala auto-injector post-marketing surveillance study in Indian patients which will improve pulmonologists’ confidence with respect to the safety of newer biologics and ensure the eligible Indian patients get the right treatment at the right time.

In Specialty, your company has delivered over 100 scientific presentations through your company’s virtual and physical standalone scientific promotional meetings (SPMs), national and regional webinars and focused group discussions, involving more than 800 specialists across the country both as speakers and attendees.

Your company has also made presentations at the National Pulmonology Conference (NAPCON) to ensure its data is reaching the HCPs and well-informed treatment decisions can be made. In severe asthma, your company continues its support to patients through patient support and access programmes.

The INSIPRA clinics have supported the screening and diagnosis of ~10,000 patients of asthma. To date, over 200 severe asthma patients have benefitted from the home administration of Mepolizumab.

8. Human resources

Embedding culture

Your company makes sustained efforts to retain, develop and accelerate diverse talent. Your company’s exceptional talent, aided by a culture of recognition, inclusion and empowerment, drives business growth.

Your company’s culture pillars are:

Ambitious for patients Accountable for impact Doing the right thing

Your company’s commitment to people has been validated and recognised by prestigious industry bodies and organisations. Such external recognitions include:

Certified ‘Great Place to Work?’ in in 2022-23 by the Great Place to Work? Institute.	Recognition as one of the top 3 companies in the Pharmaceutical and Healthcare sector by Business Today magazine.	First Runner-up at the ASSOCHAM (Associated Chambers of Commerce and Industry of India) 3rd Diversity and Inclusion Excellence Awards - 2022 in the Best Employer for Women category.
Recognition as one of ‘Top 40 India’s Best Workplaces in Health & Wellness 2022’ by the Great Place to Work? Institute.	Recognition as one of ‘India’s Most Attractive Employers 2022’ by Universum	Ranked one of the ‘2022 Best Places to Work’ by the Human Rights Campaign Foundation

 

Developing talent and leadership

Talent reviews & succession planning Your company’s talent management approach helps develop talent for your company in India and GSK, globally.	Lakshya In-house flagship development programme that prepares your company’s medical representatives (MRs) for the role of First Line Leader (FLL).	Catalyst In-house flagship development programme to develop first line leaders (FLLs) for the role of second line leaders (SLLs).	Leadership development Your company’s leadership development programmes include: Emerging Market Trailblazers Programme; Emerging Markets Talent Forum for Leadership Team (LT) Successors; First Line Leaders (FLL) programme; Emerging Markets Talent Forum for General Manager (GM) Successors; Accelerating differences programme to promote inclusion; Leading leaders programme for senior managers
Self-learning culture Your company promotes the culture of self-paced learning by providing innovative, engaging learning tools and platforms such as Keep Growing Campus, LinkedIn Learning, Get Abstract, Harvard Leading Edge, etc.	Building managerial capability In 2022, your company introduced the Be More - Manager Capability Building programme which enables managers on 4 key aspects: powerful conversations; building healthy employee relations (ER) environment; rewards as a lever for motivating teams; and, leading diverse teams.	Future Leaders Programme Your company’s flagship early talent initiative helps talented recruits from prestigious universities flourish by offering them opportunities in diverse roles across your company’s business divisions.

 

Fostering a healthy work environment

GSK culture survey	To understand how your company’s people are feeling about its culture. The annual survey is followed up by quarterly pulse surveys to understand the progress of the feedback received
Manager One80 survey	To provide managers with developmental insights through seeking structured real-time feedback from the team members
Employee	Let’s Talk, livestreamed townhall sessions with leaders, employee
communication platforms	listening sessions, national and regional meets are a few platforms to ensure ongoing communication
Evolved Speak Up culture	Your company’s people can use the ‘Speak Up’ platform to report misbehaviour, violations of the law, the GSK Code and other concerns
Healthy industrial relations environment	Your company continually engages with unions to achieve a win- win outcome for its people and the business

 

Diversity, equity and inclusion (DEI)

To improve the health outcomes of patients and their families, your company is committed to being a diverse, equitable, and inclusive organisation that attracts and retains outstanding talent.

The Women’s Leadership Initiative (WLI) and Spectrum are your company’s Employee Resource Groups (ERGs) that work towards building a more inclusive organisation.

Women’s Leadership Initiative (WLI)

Focuses on attracting, accelerating and retaining women at GSK

Spectrum

Focuses on building awareness around the LGBTQIA+ community and sensitises your company’s people to help create a safe and inclusive environment for our LGBTQIA+ colleagues.

Three tenets of diversity, equity and inclusion (DEI): Culture, Capability and Career

Your company’s three tenets for diversity, equity, and inclusion are to strengthen its inclusive culture, build the right capabilities to be allies of various groups, and assist their career advancement.

Culture	Capability	Career
Stronger Together	Your company rolled	Under-represented
Inclusion awards were	out a capability module	employee segments are
introduced in 2022 to	called ‘Leading Diverse	emphasised in our talent
recognise and foster a	Teams’ to enable	management process
culture of inclusion.	managers and leaders	to build a diverse
	to foster a culture of	organisation.
	inclusion.

 

Driving holistic employee well-being

Your company has implemented numerous new initiatives and revised current practices, policies, and procedures for the overall well-being of people and their families, such as:

Child care	Parental leave	Sabbatical leave	Care of family member leave (COFML)
> New policy allows to opt for a day care facility that suits employee needs	> Provides 26 weeks of maternity leave	> Provides for leave of up to 12 months	> Four calendar weeks of COFML (paid leave of
	> Provides 18 weeks of paternity leave	> Guarantees job security	absence) in one calendar year
> Available to all women employees and single parents	> Leave can also be availed for adoption and surrogacy	> Can be availed for medical treatment, higher education, self- development, or as a primary caregiver for a family member with chronic illness	> To take care of an immediate family member having serious health conditions

 

‘Performance with choice’	Partnership for prevention (P4P)	Employee assistance programme	Collaboration with Practo
Your company’s office-based employees are provided flexibility to choose working from home or office basis their unique needs.	> Provides up to 40 preventive healthcare services > Includes child and adult immunisations, communicable diseases, cardiovascular health and diabetes, cancer screening, HIV screening and other treatments.	> 24/7 telecounselling services provided > Provides resources to navigate family planning, pregnancy, parenting, financial planning, career planning and workplace issues	Employees can schedule virtual consultations with doctors across 23 specialties including psychologists, in real time.

 

Prevention of sexual harassment at the workplace

Your Company has a policy to make the workplace safer, in line with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (India) and the rules thereunder. Your Company has established

Internal Committees (ICs) across different zones and manufacturing facilities to address any kind of sexual harassment (SH) complaints. All the members of these ICs are trained to handle such complaints. During the year, your Company received three sexual harassment complaints which have been closed. Your Company launched a renewed e-learning module to further increase awareness around prevention of sexual harassment.

9. Environment, Health, Safety and Sustainability (EHSS)

Your company has maintained its focus on enhancing driver safety standards including accident reporting along with inculcation of life saving rules among its people through different mediums, so that it becomes a way of working. During the year under review, prior to entering the field, all new recruits were trained on defensive driving techniques.

611

New recruits trained in defensive training techniques in FY 2022-23

EHS at Nashik manufacturing site

The site has a safety culture embedded through 12 Life Saving Rules.

The site is driving the sustainability initiatives in a focused and structured approach to meet your company’s long term sustainability targets of 2030. In 2022, the site has delivered significant results.

9.6%

Energy consumption reduced

11.6%

Water usage reduced

4%

Waste reduced (hazardous)

Your company’s India Pharma Supply Chain (PSC)

Your company collects post-consumer plastic waste from Indian markets and recycles and recovers it in an environmentally sound manner every year as a part of your company’s Extended Producer Responsibility (EPR) obligation. FY 2022-23, your company collected and disposed of 1365.91 MT of plastic waste.

1,365.91

MT of plastic waste collected and recycled and recovered

10. Selling Excellence

Vision

Your company aims to enhance commercial execution and builds capabilities of the field force.

Your company’s Selling Excellence initiatives have been recognised as GSK India was conferred the Best Sales Onboarding Programme in the 2nd Annual Sales L&D Summit & Awards 2022 by Transformance

Business Media.

Key Selling Excellence initiatives:

1. Re-designing Sales Rep Onboarding Journey (6 months)

To accelerate transition and integration of new hires in your company’s culture to make them best-in-class and highly productive within their confirmation period.

2. Negotiation Academy:

This initiative was recognised by GSK’s Emerging Markets regional cluster as a best practice in skill-building Tailored to vaccines business

BATNA - Best Alternative To a Negotiated Agreement, ZOPA - Zone of Possible Agreement, SPIN - Situation Problem Implication Need-payoff

3. New brand launch readiness:

Capability-building of the Shingrix team through robust training and experiential learning for better preparedness as your company aims to create a new category in adult vaccination.

4. Omnichannel Capability Programme: Strengthening the coaching capabilities of first line sales leaders (FLSLs) for better execution by medical representatives.

5. Bite sized eLearning content to

enable self-paced learning

23 brands	5 process
146 voiceover videos	30+ hrs. of eLearning content

 

11. Corporate social responsibility (CSR)

Being a responsible corporate citizen, your company contributes to nation-building through CSR programmes centred on healthcare and education.

GSK Scholars – Enabling future healthcare professionals (your company’s flagship CSR initiative)

Objective: To help Indias skill-building strategy and to enhance science, technology, engineering and mathematics (STEM) education in the country.

Offering: This scholarship provides students with up to H 1 lakh each year for

four-and-a-half years to defray academic expenditures related to their MBBS programme.

259

Beneficiaries

15

States covered

Trust in science initiative

Objective: To fulfill the demand supply gap of highly qualified and experienced biostatisticians and bioinformatics specialists.

Offering: Your company has partnered with the Regional Centre for Biotechnology to launch the ‘Trust in Science’ programme in India. The initiative will assist 12 PhD candidates for about seven years.

Partnering India to eliminate lymphatic filariasis (LF)

Objective: Eliminate Lymphatic Filariasis as a public health issue from the country. Offering: Contributing albendazole tablets used during mass drug administration (MDA) to the World Health Organization (WHO) until LF is completely eliminated in India.

Upgrading classrooms to smart classes

Objective: To transform the way students learn by upgrading classrooms into smart-classes.

Offering: As part of this programme, 25 smart-classes have been created benefitting children in Nashik Municipal Corporation (NMC) and Nashik’s Zilla Parishad schools.

Offerings: This intervention project has worked directly with ~2,716 married women in the reproductive age group (MWRA), 1,964 children aged 0-5 years and 334 adolescents in the 10-19 years age group leading to improved access of public healthcare services, better awareness on maternal and child health topics.

Healthy school environment - The right of every child

Objective: To continue providing health, nutrition, and water, sanitation and hygiene (WASH) support to children attending Municipal schools in Nashik, Maharashtra. Offering: The initiative is being carried out in 20 Nashik Municipal Corporation Schools (NMC) in partnership with the Nashik Municipal Corporations Education Department.

Mother and child care

Objective: To enhance the health and nutrition status of children, mothers, and adolescents by developing resilient communities with active participation of system and community stakeholders to reduce public health risks in Mumbais vulnerable communities.

Home away from home

Objective: To provide holistic care for families coping with their child’s cancer treatment. Offerings: This initiative strives to bridge the gap between world-class, cost-effective cancer treatment centres and the comprehensive support required to effectively complete cancer treatment through the supported centres.

Regional projects

Save Lives

Objective: To empower the community by focusing on mother and child health concerns. Offering: Improving access to health services for building resilient communities in Nayabasti, West Bengal.

1,030

Households impacted

875

Beneficiaries

Mainstreaming out-of-school children

Objective: To mainstream children who are school dropouts by enhancing their grade level competencies.

Offerings: The targeted beneficiaries will be mainstreamed into traditional educational channels, in this case, government schools, at the end of the yearly intervention period to continue their education.

400

Beneficiaries

Over 85%

Beneficiaries exhibited improvement in learning levels

Holistic care for the vulnerable

Objective: To empower underprivileged and disadvantaged girl children and to demonstrate that, given equal chance, every girl, regardless of her familial circumstances, has the capacity to thrive. Offerings: Providing free residential formal school education, co-curricular activities, and vocational training.

150

Beneficiaries

100%

Of the boarders are engaged

Be a Change-maker (Orange day – employee volunteering programme)

Objective: To redirect your company’s people’s efforts towards social benefit and try to build communities as ‘Change-makers’. Offering: Your company volunteers across India for various charitable causes. In addition, it has developed a mentoring programme in which your company’s people who are volunteers mentor students studying medicine at government colleges. These students are part of the GSK Scholars programme, which connects employee involvement with the CSR initiative.

6,424hours

Of volunteering

Your company’s CSR policy can be accessed on your company’s website (https://india-pharma.gsk.com/ media/6492/csr-policy_revised-310715. pdf). A detailed report on the CSR programmes undertaken during the year is provided in Annexure ‘D’ to the Directors’ Report of this Annual Report.

12. Risk management

The importance of risk management is critical in the administration of a healthcare organisation. As your company works to provide solutions to millions of patients worldwide, risk management extends beyond assuring business success, investor confidence, and regulatory compliance. A negative impact on the company might result in disruptions in patient care, which would have a direct influence on the quality and sustenance of human life.

Your company takes immense pride in your company’s culture, including the maturity of its risk management processes. Your company’s risk management culture is driven via the Internal Control Framework (ICF) model which is approved by the Global GSK Leadership Team (GLT) and Global Risk Oversight and Compliance Council (GROCC). At a country level, the Risk Management and Compliance Board (RMCB) is responsible for fostering the ‘tone from the top’ and an acceptable risk culture, in addition to providing effective monitoring of internal controls and risk management systems. The risk management process is monitored by the RMCB on a regular basis (minimum bi-monthly meetings). The Risk Management Framework, covering business, operational and financial risks, is also reviewed twice a year by the RMCB and presented to the Risk Management Committee of the Board of Directors. Each function maintains risk registers that detail each risk, its primary cause, and the existing controls and monitoring in place. Mitigation actions along with owners and timelines are agreed upon. All significant risks are discussed at the bi-monthly RMCB and then subsequently, at the Risk Management Committee of the Board at least twice a year.

Your companys ability to manage any crisis, including black-swan occurrences such as the pandemic, is ensured by internal risk management mechanisms that operate in real time. The maturity of the process has changed the approach from risk mitigation to risk-resilience. This has enabled quick business decisions linked with your company’s risk appetite and culture, ensuring that its brands remain accessible to patients and customers even during the most challenging times.

At present, in the opinion of the Board of Directors, there are no risks which may threaten the existence of your company, GlaxoSmithKline Pharmaceuticals Limited.

Vigil mechanism

Your company has a ‘Speak Up’ programme which offers people, whether working for GSK or not, a range of channels to voice concerns and report any misconduct. The ‘Speak Up’ channel and processes encourage everyone to report concerns about potential unethical, unlawful, or inappropriate behaviour and safeguard those who do so from reprisal or harassment. An independent third party manages these reporting lines and calls are logged through their central system to ensure the integrity of the programme. Your company endeavours to treat compliance queries and concerns confidentially, even if the person reporting a concern identifies himself/herself. Your company also has a comprehensive and extensively communicated policy for preventing, punishing, and discouraging sexual harassment. The ‘Speak Up’ channels can be accessed on your company’s website (https://gsk.com/speakup).

In addition, your company has a whistle-blower policy in place to enable employees/external stakeholders to approach local/group management or the Audit Committee Chair in the event of any grievance or concern. (accindrx. audicomitteechairmangskindiarx@gsk.com). The GSK Code can be accessed on GSK’s global website (https://www.gsk.com/ en-gb/company/codes-standards-and-reports/).

Legal

Your company’s legal function plays a critical role in assuring that all its business activities are carried out not only in accordance with the law but also in alignment with your company’s culture. The Legal function renders critical advice to the Board of Directors and senior executives of your company to ensure operations meet the highest standards of corporate governance and they are privy to sound, prompt, and timely legal advice to effectively discharge their duties in the overall interest of all stakeholders.

During the reporting year, your company’s Legal team provided its support and expertise for several initiatives across the organisation, including support in business operations, commercial initiatives, supply chain and new launches such as Shingrix.

Your company was conferred the CNBC

TV18 India Risk Management Award

in the Pharma sector

Internal control framework

Your company conducts its business with integrity and high standards of ethical behaviour, in compliance with the laws and regulations that govern the business. Your company’s Internal Control Framework (ICF) is a comprehensive enterprise-wide risk management model and supports the continuous process of identification, evaluation and management of the company’s risks. ICF is supported by standard operating procedures, policies and guidelines, including suitable monitoring procedures and self-assessment exercises.

Compliance with laws and regulations is monitored through a well-crafted framework. As required by the Companies Act 2013, your company has implemented an Internal Financial Control (IFC) framework. It continues the annual Independent Business Monitoring (IBM), designed by GSK plc to review activities, data, exceptions and deviations for monitoring and improving the quality of operations.

As part of the due diligence activities for onboarding of vendors and third parties engaged by us, they are required to confirm compliance with your company’s corporate values through a detailed Third Party Risk Management (TPRM) process.