Galapagos (GLPG) Q3 2024 earnings summary

Executive summary

• Renewed R&D strategy accelerates innovation in oncology and immunology, with a robust pipeline of four clinical candidates for 11 indications and over 15 preclinical programs, and a scalable, decentralized cell therapy manufacturing network established.

• Achieved FDA IND clearance for GLPG5101 in non-Hodgkin lymphoma, marking the first U.S. clearance for a fresh CAR-T with a 7-day median vein-to-vein time, and resumed recruitment for GLPG5301 in multiple myeloma.

• Strong cash position of €3.3 billion as of September 30, 2024, supports ongoing R&D, business development, and value creation initiatives.

• Sold JyselecaⓇ business to Alfasigma, resulting in significant one-time gains and transition of related revenues and costs.

• Decentralized CAR-T manufacturing network expanded in the U.S. and Europe, with Excellos selected as the first U.S. site and ongoing tech transfer to additional locations.

Financial highlights

• Total revenues for the first nine months of 2024 were €200.1 million, up 11% year-over-year, mainly from the Gilead collaboration.

• R&D expenses increased 42% year-over-year to €238.2 million, primarily due to oncology expansion and collaborations.

• Net profit for the period was €48.8 million, including €69.2 million from discontinued operations and a €52.3 million gain from the Alfasigma transaction.

• Operating loss from continuing operations was €125.6 million, compared to €41.9 million in the prior year.

• Net decrease in cash and investments of €345.7 million in the first nine months, mainly due to operational cash burn and business development.

Outlook and guidance

• Reconfirmed 2024 cash burn guidance of €370–410 million, including business development transactions; excluding business development, guidance is €280–320 million.

• Plans to enroll first U.S. patient in ATALANTA-1 phase II before year-end and submit IND for GLPG5201/EUPLAGIA-1 in early 2025.

• At least four IND/CTA-enabling studies and one first-in-human study expected to initiate in 2025.

• Aim to add at least two new clinical assets annually from 2026 onwards.