Mechelen, Belgium; 15 May 2009 – Galapagos NV (Euronext: GLPG) announces today that the operational and financial results achieved thus far in 2009 encourage the Company to retain full year 2009 financial guidance given earlier this year.
Marking a major step in the Company’s progression in March 2009, Galapagos initiated clinical trials on the first small molecule based on its target discovery platform. Small molecule GLPG0259 targets protein kinase MAPKAPK5 and represents a new approach for the treatment of rheumatoid arthritis. Galapagos also announced several other achievements in the first three months of 2009, such as milestones in its rheumatoid arthritis and osteoarthritis alliances, and an expansion of its anti-infectives alliance with GSK. Furthermore, Galapagos delivered pre-clinical candidate drugs in its osteoarthritis and cachexia programs and published the results of a novel Alzheimer’s target in the journal Science. In 2009, Galapagos also announced two new alliances with Merck & Co.: one in diabetes and obesity, and one in inflammatory diseases. The discovery, development and regulatory milestone payments to Galapagos for these two new alliances with Merck combined could exceed €360 million, plus significant sales milestones and up to double-digit royalties.
Galapagos anticipates full-year group revenues of €100 million in 2009, a growth of 25% compared to 2008. Revenues from R&D are expected to be about €60 million, an increase of 90% over last year. In 2009, the service division BioFocus DPI is expected to make an improved cash contribution to the Group result. Full year cash burn in 2009 is expected be limited to around €7 million, leading to an expected year-end cash position of approximately €20 million. Galapagos is on track to initiate a Phase I clinical trial with compound GLPG0187 in bone metastasis in the second quarter of 2009 and two Phase II clinical trials with Nanocort© for flares in rheumatoid arthritis and multiple sclerosis in the second half of 2009. These new trials will expand the Company’s development portfolio to four clinical programs before year end.
Publication of Annual Financial Report 2008 and Shareholders’ Meeting documents
The Company published its Annual Financial Report 2008 and documentation for its Annual General Shareholders’ Meeting (which will be followed by an Extraordinary General Shareholders’ Meeting), all of which are available in English and Dutch via the Company’s website at www.glpg.com, or upon request via e-mail at firstname.lastname@example.org. The Annual and Extraordinary General Shareholders’ Meetings will take place on 2 June 2009, starting at 18.00 CET, at the Company’s headquarters in Mechelen, Belgium.
Galapagos (Euronext: GLPG; OTC: GLPYY) is a drug discovery and development company with small molecule programs in bone and joint diseases, bone metastasis, cachexia, anti-infectives and metabolic diseases. It has established risk sharing alliances with GSK, Janssen Pharmaceutica, Eli Lilly and Merck. Through an alliance with MorphoSys, Galapagos is also developing new antibody therapies in bone and joint diseases. Its division BioFocus DPI offers a full suite of target-to-drug discovery products and services to pharmaceutical and biotech companies and to patient foundations, encompassing target discovery and validation, screening and drug discovery through to delivery of pre-clinical candidates. Galapagos currently employs 490 people and operates facilities in six countries, with global headquarters in Mechelen, Belgium. More info at: www.glpg.com.
Onno van de Stolpe, CEO
Tel: +31 6 2909 8028
This release may contain forward-looking statements, including, without limitation, statements containing the words “believes,” “anticipates,” “expects,” “intends,” “plans,” “seeks,” “estimates,” “may,” “will,” “could,” “stands to,” and “continues,” as well as similar expressions. Such forward-looking statements may involve known and unknown risks, uncertainties and other factors which might cause the actual results, financial condition, performance or achievements of Galapagos, or industry results, to be materially different from any historic or future results, financial conditions, performance or achievements expressed or implied by such forward-looking statements. Given these uncertainties, the reader is advised not to place any undue reliance on such forward-looking statements. These forward-looking statements speak only as of the date of publication of this document. Galapagos expressly disclaims any obligation to update any such forward-looking statements in this document to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based, unless required by law or regulation.