Click here to access the live audio webcast presentation at 11.00 CET (10.00 GMT), call number +32 2290 1791
Mechelen, Belgium; 4 February 2011 - Based on unaudited preliminary results, Galapagos NV (Euronext: GLPG) expects to report revenues of €137 million, an operating and a net profit for the full year 2010. The 2010 year-end cash balance was €40.4 million. For 2011, management gives guidance of at least €150 million in revenues (+10% over 2010), a positive operating result and cash flow, and a net profit.
"We achieved record revenues in the fourth quarter of 2010. We are pleased with these results, especially as we delivered the second consecutive full year of profitability," said Onno van de Stolpe, CEO of Galapagos. "We also executed well on our strategy in 2010: started our 7th clinical program, progressed over 50 drug discovery programs, signed new alliances with Roche and Servier, acquired Argenta and the GSK R&D center in Zagreb, and signed large, long-term collaborations in our service operations."
"For 2011, we anticipate the interim analysis of our Phase II clinical program GLPG0259 in the first group of rheumatoid arthritis patients in the second quarter. This could be the first indication of potential efficacy for a novel candidate drug discovered with our target discovery engine. Continued growth in income from the alliances and service contracts encourages us to give guidance of at least €150 million in revenues and sustained operational and net profitability in 2011."
In its audited financial reporting scheduled for release on 4 March 2011, Galapagos will present full 2010 results. This includes a €12 million payment by Merck & Co. for results delivered in 2010 (and returned to Galapagos in 2011). Milestone payments totaling €25 million were achieved for revenue recognition in 2010, but were included in accounts receivable on the balance sheet, to be collected in the first quarter of 2011. The service operations recorded margins and sales growth as expected in the second half of 2010, resulting in services profitability and positive cash flow contribution as expected for the full year. Cash and cash equivalents amounted to €40.4 million on 31 December 2010, reflecting cash used in operations, positive cash flow from the service operations and €28.7 million raised from the private placement with institutional investors in October 2010.
These preliminary financial results have not been audited and could deviate from actual results, to be announced on 4 March 2011.
Update on GLPG0259 RA trial
In October 2010, Galapagos enrolled the first patient in its Phase II clinical study for the Company's flagship program GLPG0259, a novel drug being developed for rheumatoid arthritis (RA). By December 2010, the first 30 RA patients (20 receiving GLPG0259, 10 receiving placebo) were enrolled in the trial, placing Galapagos on track to obtain initial efficacy data in the second quarter of 2011. Pending the outcome of this initial analysis, Galapagos plans to complete the dose-finding component of the trial involving 180 patients by the end of 2011.
Galapagos will conduct a conference call open to the public today at 11.00 Central European Time (CET), which will also be webcast. To participate in the conference call, please call +32 2290 1791 ten minutes prior to commencement. A question and answer session will follow the presentation of the results. Click here to access the live audio webcast. The archived webcast also will be available for replay shortly after the close of the call.
Galapagos (Euronext: GLPG; OTC: GLPYY) is a mid-size biotechnology company specialized in the discovery and development of small molecule and antibody therapies with novel modes-of-action. The Company is progressing one of the largest pipelines in biotech, with seven clinical and over 50 discovery programs. Through risk/reward-sharing alliances with GlaxoSmithKline, Lilly, Janssen Pharmaceutica, Roche and Servier, Galapagos is eligible to receive up to €2.5 billion in downstream milestones, plus royalties. The Galapagos Group has over 800 employees and operates facilities in seven countries, with global headquarters in Mechelen, Belgium. More info at: www.glpg.com
Onno van de Stolpe, CEO
Tel: +31 6 2909 8028
Elizabeth Goodwin, Director Investor Relations
Tel: +31 6 2291 6240
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.
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