- First nine months 2020 financial results:
- Group revenues and other income of €368.6 million
- Operating loss of €163.2 million
- Net loss of €247.6 million
- Cash and current financial investments of €5.3 billion on
30 September 2020
- Approval for filgotinib in rheumatoid arthritis (RA) in
Europe andJapan , Complete Response Letter (CRL) received in theU.S. - Positive topline results with ziritaxestat in systemic sclerosis
- No signal observed with GLPG1972 in osteoarthritis
- First dosing of patients with
Toledo compound GLPG3970
Webcast presentation tomorrow,
“We closed a turbulent third quarter with an approved first drug in
Key figures third quarter report 2020 (unaudited)
(€ millions, except basic & diluted gain/loss (-) per share)
Revenues and other income | 368.6 | 752.5 |
R&D expenditure | (398.1) | (298.2) |
S&Mi expenses | (44.1) | (9.7) |
G&Aii expenses | (89.5) | (51.5) |
Operating loss (-)/operating profit | (163.2) | 393.0 |
Fair value re-measurement of share subscription agreement and warrants | (8.1) | (142.3) |
Net other financial result | (75.2) | (2.1) |
Taxes | (1.1) | 16.7 |
Net result for the period | (247.6) | 265.3 |
Basic loss (-)/ gain per share (€) | (3.81) | 4.77 |
Diluted loss (-)/gain per share (€) | (3.81) | 4.59 |
Current financial investments and cash and cash equivalents | 5,308.6 | 5,599.8 |
Revenues and other income
Revenues and other income for the first nine months of 2020 decreased to €368.6 million compared to €752.5 million in the first nine months of 2019, due to one-time recognition in revenue in the first nine months of 2019 of the upfront payment received from Gilead related to ziritaxestat for €667.0 million. The revenues from the Gilead collaboration in the first nine months of 2020 amount to €316.6 million and consist of (i) the access and option rights to our drug discovery platform (€170.7 million), and (ii) the filgotinib revenue recognition (€145.9 million).
Due to the approval of filgotinib by both the Japanese and European authorities on
As a result of the upfront payment received from Gilead in the third quarter of 2019, our deferred income on
Results
We realized a net loss of €247.6 million for the first nine months of 2020, compared to a net profit of €265.3 million for the first nine months of 2019.
We reported an operating loss amounting to €163.2 million for the first nine months of 2020, compared to an operating profit of €393.0 million for the first nine months of 2019.
The net profit and operating profit for the first nine months of 2019 was mainly due to one-time recognition in revenue in the first nine months of 2019 of the upfront payment received from Gilead related to ziritaxestat for €667.0 million.
Our R&D expenditure in the first nine months of 2020 amounted to €398.1 million, compared to €298.2 million for the first nine months of 2019. This planned increase was mainly due to an increase in subcontracting costs primarily related to our filgotinib program, our
We reported a non-cash fair value loss from the re-measurement of initial warrant B issued to Gilead, amounting to €8.1 million, as result of the increased implied volatility of the Galapagos share price and its evolution between
Net other financial loss in the first nine months of 2020 amounted to €75.2 million, compared to net other financial loss of €2.1 million for the first nine months of 2019, which was primarily attributable to €51.2 million of unrealized exchange loss on our cash and cash equivalents and current financial investments in
Cash position
Current financial investments and cash and cash equivalents totaled €5,308.6 million on
A total net decrease of €472.2 million in cash and cash equivalents and current financial investments was recorded during the first nine months of 2020, compared to a net increase of €4,309.0 million during the first nine months of 2019. This net decrease was composed of (i) €433.3 million of operational cash burniii, (ii) offset by €25.7 million of cash proceeds from capital and share premium increase from exercise of subscription rights in the first nine months of 2020, and (iii) €13.3 million negative changes in (fair) value of current financial investments and €51.3 million of unrealized negative exchange rate differences.
Finally, our balance sheet on
Outlook 2020
Our collaboration partner Gilead is in direct dialogue with the
In the fourth quarter we expect to report topline data from the PINTA Phase 2 study with GLPG1205 in IPF. Furthermore there have been over 1,200 patients recruited in our global landmark ISABELA Phase 3 program with ziritaxestat in IPF. We remain on track to announce the futility analysis in the first half of 2021.
To further evaluate the broad potential of our most advanced
We retain our operational cash burn guidance of €490 to €520 million for full year 2020.
Third quarter report 2020
Galapagos’ financial report for the first nine months ended
Conference call and webcast presentation
Galapagos will conduct a conference call open to the public tomorrow,
CODE: 8542327
+44 (0) 2071 928338 | |
+1 646 741 3167 | |
+44 844 481 9752 | |
+31 207 95 66 14 | |
+33 1 70 70 0781 | |
+32 2 793 38 47 |
A question and answer session will follow the presentation of the results. Go to www.glpg.com to access the live audio webcast. The archived webcast will also be available for replay shortly after the close of the call.
Financial calendar
18 February 2021 Full year 2020 results (webcast
About Galapagos
Except for filgotinib’s approval for the treatment of rheumatoid arthritis by the
Contact
Investors:
VP Investor Relations
+1 781 460 1784
Senior Director Investor Relations
+32 485 19 14 15
ir@glpg.com
Media:
Carmen Vroonen
Global Head of Communications & Public Affairs
+32 473 824 874
+44 7717 801900
communications@glpg.com
Forward-looking statements
This release may contain forward-looking statements, including, among other things, statements regarding the global R&D collaboration with Gilead, the amount and timing of potential future milestones, opt-in and/or royalty payments by Gilead, Galapagos’ strategic R&D ambitions, the guidance from management (including guidance regarding the expected operational cash burn during financial year 2020), financial results, timing and/or results of clinical trials, mechanisms of action and potential commercialization of our product candidates, interaction with regulators, the timing or likelihood of additional regulatory authorities’ approval of marketing authorization for filgotinib, such additional regulatory authorities requiring additional studies, statements relating to the build-up of our commercial organization for filgotinib, the expected impact of COVID-19, and our strategy, business plans and focus. Galapagos cautions the reader that forward-looking statements are not guarantees of future performance. Forward-looking statements involve known and unknown risks, uncertainties and other factors which might cause the actual results, financial condition and liquidity, performance or achievements of Galapagos, or industry results, to be materially different from any historic or future results, financial conditions and liquidity, performance or achievements expressed or implied by such forward-looking statements. In addition, even if Galapagos’ results, performance, financial condition and liquidity, and the development of the industry in which it operates are consistent with such forward-looking statements, they may not be predictive of results or developments in future periods. Among the factors that may result in differences are that Galapagos’ expectations regarding its 2020 operating expenses may be incorrect (including because one or more of its assumptions underlying its expense expectations may not be realized), Galapagos’ expectations regarding its development programs may be incorrect, the inherent uncertainties associated with competitive developments, clinical trial and product development activities and regulatory approval requirements (including the risk that data from Galapagos’ ongoing and planned clinical research programs may not support registration or further development of its product candidates due to safety, efficacy or other reasons), Galapagos’ reliance on collaborations with third parties (including our collaboration partner for filgotinib and ziritaxestat, Gilead, and our collaboration partner for GLPG1972,
i Sales and marketing
ii General and administrative
iii The operational cash burn (or operational cash flow if this performance measure is positive) is equal to the increase or decrease in our cash and cash equivalents (excluding the effect of exchange rate differences on cash and cash equivalents), minus:
- the net proceeds, if any, from share capital and share premium increases included in the net cash flows generated / used (–) in financing activities
- the net proceeds or cash used, if any, in acquisitions or disposals of businesses; the movement in restricted cash and movement in current financial investments, if any, included in the net cash flows generated / used (–) in investing activities.
This alternative performance measure is in our view an important metric for a biotech company in the development stage.
The operational cash burn for the nine months ended
iv Crédit d’Impôt Recherche refers to an innovation incentive system underwritten by the French government
Attachment
- Galapagos reports Q3 2020 results
Source:
2020 GlobeNewswire, Inc., source