Mechelen, Belgium; 28 January 2009 – Galapagos NV (Euronext: GLPG) released unaudited preliminary results in which 2008 revenues are €77 million, +17% growth over 2007 and well within the €75-80 million guidance. Strong cash flow from Galapagos’ strategic alliances, combined with BioFocus DPI’s income, resulted in a year-end cash balance of €27 million (8% better than guidance). In 2009, Galapagos expects to have three compounds in clinical development, Group revenues of €100 million, and a year-end cash balance of €20 million.
In its 2008 full year financial reporting, scheduled on 6 March 2009, Galapagos will present 2008 revenues growth fueled by its pharma alliances as well as improvement at BioFocus DPI. In its pharma alliances, Galapagos delivered excellent results and received multiple milestone payments from its partners GlaxoSmithKline, Lilly and Janssen Pharmaceutica. BioFocus DPI recorded sales growth and margin improvement, resulting in a profit for 2008. Alliance income and the BioFocus DPI positive result contributed to the Group’s ending cash balance of €27 million in 2008.
Galapagos signed a diabetes and obesity alliance with Merck, initiated an antibody alliance with MorphoSys, completed a Phase I/II study with Nanocort, announced the selection of pre-clinical candidates in osteoarthritis and cachexia, and progressed its rheumatoid arthritis program and bone metastasis program toward initiation of clinical Phase I testing in 2009. BioFocus DPI extended its long-term collaborations with Amgen, Lilly, and Merck Serono and signed multiple new agreements.
Galapagos’ milestone-bearing alliances and visibility into the BioFocus DPI order book encourage management to give guidance for 2009 Group revenues of €100 million and a year-end cash balance of €20 million.
“Galapagos delivered on all its alliances in 2008,” said Onno van de Stolpe, CEO of Galapagos. “This progress resulted in a strong increase in milestone payments. Our alliance strategy has brought in €60 million in cash since its June 2006 start, largely paying for the growth in R&D investments. Our alliance model means a true paradigm shift in drug discovery, with clear benefits for both Galapagos and our pharma partners. We are ready to submit regulatory filings for human trials of our candidate drugs, leading to a substantial clinical pipeline with one Phase II and two Phase I studies scheduled in 2009. Finally, the turnaround of BioFocus DPI has been rewarding. Despite the divestures of the London and San Diego operations, the service division achieved a healthy double-digit growth in revenues. The benefits from consolidation measures taken at BioFocus DPI in past years are expected to increase further this year, enabling the service division to make a significant contribution to the 2009 Group result. With a broad product pipeline and guidance for 2009 Group revenues of €100 million, Galapagos is clearly moving into the top range of European biotech.”
These preliminary financial results have not been audited and could deviate from actual results.
Galapagos (Euronext Brussels: GLPG; Euronext Amsterdam: GLPGA; OTC: GLPYY) is a drug discovery company with pre-clinical programs in bone and joint diseases, bone metastasis and cachexia. Its BioFocus DPI division offers a full suite of target-to-drug discovery products and services to pharmaceutical and biotech companies, encompassing target discovery and validation, screening and drug discovery through to delivery of pre-clinical candidates. BioFocus DPI also provides adenoviral reagents for rapid identification and validation of novel drug targets, compound libraries for drug screening as well as chemogenomics and ADMET database products to select targets and compounds. Galapagos currently employs 460 people and operates facilities in six countries, with global headquarters in Mechelen, Belgium. More information about Galapagos and BioFocus DPI can be found at www.glpg.com and www.biofocusdpi.com.
Onno van de Stolpe, CEO
Tel: +31 6 2909 8028
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