Galapagos (GLPG) Q2 2025 earnings summary

Executive summary

• Strategic reorganization initiated, including evaluation of alternatives for the cell therapy business and potential divestiture, with Morgan Stanley as advisor.

• Leadership changes: new CEO, CFO, CBO, and CStO appointed; ongoing recruitment for key roles.

• Gilead royalty and waiver agreement grants full global rights to cell therapy business.

• Transfer of small molecule programs in oncology and immunology to Onco3R Therapeutics, with equity and milestone-based considerations.

• Strong cash position of €3.1 billion as of June 30, 2025, supports future growth initiatives.

Financial highlights

• Net loss from continuing operations for H1 2025 was €259.1 million, compared to a net profit of €28.2 million in H1 2024.

• Total net revenues for H1 2025 were €140.3 million, flat year-over-year.

• Operating loss from continuing operations was €215.7 million, up from €71.3 million in H1 2024, mainly due to €131.6 million in reorganization and separation costs.

• R&D expenses rose to €278.0 million, up 91% year-over-year, driven by increased subcontracting, severance, and higher cell therapy costs.

• Cash and financial investments totaled €3,091.5 million at June 30, 2025, down from €3,317.8 million at year-end 2024.

Outlook and guidance

• Updated 2025 cash outlook to be provided with Q3 2025 results, reflecting ongoing strategic review.

• Topline results for GLPG3667 in SLE and DM expected in H1 2026.

• Pivotal development for GLPG5101 in MCL to start in 2026, with BLA filing anticipated in 2028 and approval in 2029.