Mechelen, Belgium; 10 November 2011 - Galapagos NV (Euronext: GLPG) announces today that third quarter 2011 operational and financial results were in line with management expectations. Management believes the 2011 financial guidance given earlier this year to be achievable conditional upon reaching certain R&D revenues: group revenues of over €146 million, with positive operational income and cash flow, and a positive net result in 2011.
New alliance in oncology
In September Galapagos signed a new strategic alliance with leading French pharma Servier to develop new therapies in oncology. Under the terms of the agreement, Galapagos received a research access payment of €2 million from Servier and is eligible to receive milestone payments of up to €260 million, plus royalties upon commercialization of products. For any marketed products, Galapagos also retains exclusive U.S. commercialization rights. The total, risk-adjusted value of Galapagos' alliance programs is now €2.8 billion plus royalties, and US commercial rights on the Servier alliances.
Deals for service operations
BioFocus initiated a Parkinson's disease diagnostic collaboration with the Michael J. Fox Foundation and further capitalized on the synergies between Argenta and BioFocus through a two-year deal extension with Genentech, worth up to €23 million.
In July Galapagos initiated a Proof-of-Mechanism clinical study for candidate cachexia drug GLPG0492. Furthermore, Galapagos completed recruitment for a Phase II clinical study for GLPG0634, a Janus kinase 1 (JAK1) inhibitor being developed for inflammatory conditions such as rheumatoid arthritis (RA), and is on-track to deliver topline results on 22 November 2011. The clinical Proof-of-Mechanism study for GLPG0778 was also completed.
Management believes the full-year 2011 guidance figures achievable yet conditional upon reaching certain R&D revenues: Group revenues of €146 million, a positive operational result and cash flow and a positive net result. The Company expects to report Phase II efficacy data from GLPG0634 on 22 November 2011. Galapagos also will report results from the GLPG0778 Phase I Proof-of-Mechanism study and complete the Phase I Proof-of-Mechanism study with GLPG0492 before year end. Galapagos further aims to deliver multiple alliance milestones and outlicense one internal program before end 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 seven programs in development 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 €2.8 billion in downstream milestones, plus royalties. The Galapagos Group has about 800 employees and operates facilities in six countries, with global headquarters in Mechelen, Belgium. More info at: www.glpg.com
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.