On February 5, 2020 GlaxoSmithKline reported (Press release, GlaxoSmithKline, FEB 5, 2020, View Source [SID1234553866])

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2019 financial and product highlights
Pharmaceuticals £17.6 billion +2% AER, flat CER; Vaccines £7.2 billion +21% AER, +19% CER; Consumer Healthcare £9 billion +17% AER, +17% CER (Pro-forma +2% CER*)
Shingrix sales £1.8 billion +>100% AER, +>100% CER driven by strong execution in the US
Total Respiratory sales £3,081 million +18% AER, +15% CER. Trelegy £518 million +>100% AER, +>100% CER. Nucala £768 million +36% AER, +33% CER
Total HIV sales £4.9 billion, +3% AER +1% CER. Two-drug regimen sales £422 million
Total Group operating margin 20.6%. Adjusted Group operating margin 26.6% reflecting increased R&D spending and impact of generic Advair in the US partly offset by improved Vaccines and Consumer Healthcare performance. (Pharmaceuticals 26.2%; Vaccines 41.4%; Consumer Healthcare 20.8%)
Total EPS 93.9p +27% AER; +23% CER primarily reflecting reduced contingent consideration charges
Adjusted EPS 123.9p +4% AER, +1% CER reflecting operating performance and lower effective tax rate, partly offset by increased profit allocation to non-controlling interests
Net cash flow from operations £8.0 billion. Free cash flow £5.1 billion
23p dividend declared for the quarter, 80p for FY19

Pipeline highlights
Continued strengthening of R&D pipeline in 2019: eight submissions, six positive pivotal trial results and four new assets progressed into pivotal trials
In 2020 expect at least six potential approvals in oncology, HIV, specialty and respiratory
Expect proof of concept readouts on several key pipeline assets including four oncology medicines and vaccines for COPD and RSV
2020 guidance
Expect Adjusted EPS to decline -1% to -4% CER
Expect 80p dividend for 2020
Preparing for two new companies

New programme initiated to prepare for separation of GSK into two companies: New GSK, a biopharma company with an R&D approach focused on science related to the immune system, use of genetics and new technologies; and a new leader in Consumer Healthcare

As GSK increases investment in R&D and new product launches, the two-year separation programme aims to:
Drive a common approach to R&D across modalities with improved capital allocation
Align and improve capabilities and efficiencies of global support functions to support New GSK
Further optimise supply chain and portfolio, including divestments of non-core assets. Strategic review of prescription dermatology underway

Prepare Consumer Healthcare to operate as a standalone company
Programme to target delivery of £0.7 billion of annual savings by 2022 with total costs estimated at £2.4 billion (of which £1.6 billion cash). Programme expected to deliver improved operating performance, with meaningful improvements from 2022. Anticipated divestment proceeds largely expected to cover programme cash costs
Additional one-time costs to prepare Consumer Healthcare for separation estimated at £600-700 million

Emma Walmsley, Chief Executive Officer, GSK said:
"GSK delivered a good performance in 2019 with growth in sales and earnings, together with strong cash generation. We also made excellent progress in all three of our long-term priorities: Innovation, Performance and Trust, strengthening our pipeline, improving operational execution and reshaping the company.

"In 2020, our first priority remains Innovation, to progress our pipeline and support new product launches. Recent data readouts underpin our decision to further increase investment in R&D and these new products. At the same time, we are again focused on operational execution, including delivering a successful integration in Consumer Healthcare, and we are also preparing for the future, starting a new two-year programme to get GSK ready for separation.

"All of this aims to support future growth, deliver significant value creation, and set up two new leading companies in biopharma and consumer healthcare, each with the opportunity to improve the health of hundreds of millions of people."