Mechelen, Belgium; 18 May 2012 - Galapagos NV (Euronext: GLPG) announces today that the operational and financial results achieved thus far in 2012 encourage the Company to retain full year 2012 financial guidance given earlier this year: Group revenues of over €150 million (+30%), increased cash and profit contribution from the service operations, with positive Group operational income and cash flow, and a positive Group net result in 2012.
"Galapagos expects to show results from the Phase IIa study with GLPG0634 by the end of this year," said Onno van de Stolpe, CEO of Galapagos. "Revenue recognition from the deal with Abbott on GLPG0634, combined with continued revenues from the alliance business and another strong performance from the service operations, will all contribute to an expected 30% growth in Group revenues in 2012."
In the first quarter of 2012, Galapagos made several announcements validating the quality of its research approach. The Company announced a global collaboration with Abbott to develop and commercialize selective JAK1 inhibitor GLPG0634 to treat auto-immune diseases. Abbott made an initial upfront payment of $150 million for rights related to the global collaboration. Upon successful completion of the RA Phase II studies, Abbott will license the program for a one-time fee of $200 million if the studies meet certain pre-agreed criteria. Abbott will assume sole responsibility for Phase III clinical development and global manufacturing. Pending achievement of certain developmental, regulatory, commercial and sales-based milestones, Galapagos would be eligible to receive additional milestone payments from Abbott, potentially amounting to $1.0 billion, in addition to tiered double-digit royalties on net sales upon commercialization. Galapagos retains co-promotion rights in Belgium, the Netherlands and Luxembourg.
In other news validating the Company's R&D approach, Galapagos announced achievement of milestones in its alliances with Servier and Janssen for work completed in 2011. The Company also announced that GSK decided to exercise its option to license GLPG0778 and GLPG0555, the first Galapagos alliance programs to be in-licensed by a partner.
During its R&D Update on 18 April 2012, Galapagos presented an overview of its R&D portfolio. GLPG0634 is expected to report topline data from a Phase IIa study in 90 patients in multiple countries before year end, on track to delivering the Phase IIb data package to Abbott before year end 2014. Galapagos also announced excellent Phase I First-in-Human results including a biomarker effect with GLPG0974, achievement of Proof of Concept with antibodies acting on a Galapagos novel target in the alliance with MorphoSys, as well as discovery of a new class of anti-bacterial compounds which act on MRSA bacteria. The Company decided to stop work on GLPG0492 in cachexia and also announced the termination of the anti-infective alliance with GSK, with the anti-bacterial assets returning to Galapagos. Dr Piet Wigerinck was appointed Chief Scientific Officer of Galapagos, responsible for all R&D activities of the Company.
BioFocus entered a new collaboration with Almirall in respiratory diseases and both BioFocus and Argenta announced a multi-year drug discovery collaboration with AstraZeneca. On the corporate level, Galapagos' annual general shareholders' meeting held 24 April 2012 approved all agenda items. Furthermore, Galapagos raised €1,099,662.27 in capital through employee warrant exercises in March 2012, resulting in the issuance of 137,414 new shares.
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 GLPG0634, as well as one of the largest pipelines in biotech, with four programs in development and over 50 discovery programs. 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
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