Galapagos NV Half Year Results in Line with Full Year Guidance
* Group revenues increased to EUR49.9 M (+27%)
* Service operations external revenues growth of 24%
* Service operations profit of EUR3.2 M excluding exceptional costs
* Group net loss of EUR10.5 M
* Cash used in operations reduced to EUR4.2 M, (H109: EUR5.4 M)
* Cash position of EUR27.2 M on 30 June 2010
* New strategic alliances with Roche and Servier
* Advancement of two additional programs to the clinic, bringing total to five
Mechelen, Belgium; 6 August 2010 - Galapagos NV (Euronext: GLPG) announces its half year results and reiterates guidance for the full year.
"We have made considerable progress toward our 2010 objectives," said Galapagos CEO, Onno van de Stolpe. "However, timing of certain expected milestones impacted our interim financial results, and we expect to see revenues from these and additional milestones in the second half improve the full year results. Historically, also for our service division, the second half of the year is much stronger financially. Galapagos now has seven candidate drugs and more than 50 discovery programs, most of which bear milestones. We signed two new strategic alliances, with Roche for COPD, and with Servier for osteoarthritis. Furthermore, the Argenta acquisition has proven to be an excellent addition to our service operations. We are on track to achieve the goals we set for 2010, which will reinforce our top five position in European biotech."
Guillaume Jetten, Galapagos' CFO added "Galapagos reported a solid financial performance in the first half, and with our controlled and flexible cost base, Galapagos is managing its financial risks well. Based on the order book for the service division and anticipated milestone payments in our pharma alliances in the second half year, both divisions are on track to deliver on their financial goals in 2010. Therefore, Galapagos confirms full year guidance for revenues of EUR135 M with positive operating income and cash flow, and a positive net result in 2010."