Mechelen, Belgium; 13 May 2011 - Galapagos NV (Euronext: GLPG) announces today that the operational and financial results achieved thus far in 2011 encourage the Company to retain full year 2011 financial guidance given earlier this year: Group revenues of over €150 million, with positive operational income and cash flow, and a positive net result in 2011.
"Galapagos expects to show results from three clinical trials by the end of this year," said Onno van de Stolpe, CEO of Galapagos. "Our business model enables us to fund progress on more than 50 R&D programs, thereby increasing our chances of success. With the service operations' cash contribution and cash from the pharma alliances, Galapagos also can invest in its proprietary programs. Therefore we anticipate continued strong growth in Group revenues, while also retaining profitability."
In the first quarter of 2011, Galapagos announced milestones in its alliances with Servier and GlaxoSmithKline totaling €14.5 million for work completed in 2010. The Company also announced an agreement with Merck to end the strategic alliances in metabolic, cardiovascular and inflammatory disease and received a €12 million payment for results delivered in these alliances in 2010. While recognized as revenues in 2010, the GSK, Servier, and Merck alliance payments were received in the first quarter of 2011. Galapagos was also awarded a €2.7 million grant from the Flemish agency IWT to progress its proprietary antiviral drug discovery research programs.
During its R&D Update on 15 April 2011, Galapagos presented an overview of its R&D portfolio. Results from the GLPG0259 Phase II interim analysis did not support the continuation of GLPG0259's development for rheumatoid arthritis. However, the innovative design used in this trial enabled a quick determination of this molecule's potential efficacy and now allows Galapagos to focus resources on its 11 other rheumatoid arthritis programs, including GLPG0634, a JAK1 inhibitor, scheduled to start patient trials this quarter. In March 2011, Galapagos initiated a Phase Ib trial for GLPG0187, which is aimed primarily at assessing the compound's safety and initial efficacy in cancer patients. Two additional programs could show clinical biomarker results in healthy volunteers this year: GLPG0778, a compound being developed in Galapagos' immuno-inflammation alliance with GlaxoSmithKline, and GLPG0492, which is being developed for the treatment of cachexia and other muscle wasting disorders.
Galapagos' service operations also made several announcements so far this year. BioFocus added compound management contracts with Lundbeck and the University of Nottingham. BioFocus' target discovery unit started a collaboration with Ono Pharmaceuticals in autoimmune diseases and announced that it delivered a panel of validated oncology targets in its collaboration with Janssen Research & Development. At the start of the year, Argenta announced that it entered into a drug discovery collaboration with Dr. Reddy's Laboratories in the area of pain and inflammation.
On the corporate level, Galapagos' annual general shareholders meeting held 26 April 2011 approved all agenda items, including the appointments of Dr Vicki Sato and Mr Howard Rowe to Galapagos' Board of Directors until the 2014 annual shareholders meeting. Furthermore, Galapagos raised €469,000 in capital through employee warrant exercises in March 2011.
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 six programs in development and over 50 discovery programs. Through risk/reward-sharing alliances with GlaxoSmithKline, Eli 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.