Details of the unaudited condensed consolidated interim results
Product net sales
We reported net sales of Jyseleca for the first three months of 2022 amounting to €14.4 million (€0.1 million in the first three months of 2021).
Related costs of sales in the first quarter of 2022 amounted to €2.9 million.
Collaboration revenues
The following table summarizes our collaboration revenues for the three months ended 31 March 2022 and 2021:
|
Three months ended 31 March |
|||
|---|---|---|---|---|
(thousands of €) |
Over time |
Point in time |
2022 |
2021 |
Recognition of non-refundable upfront payments and license fees |
|
|
98,917 |
105,226 |
Gilead collaboration agreement for filgotinib |
|
|
41,602 |
47,405 |
Gilead collaboration agreement for drug discovery platform |
|
|
57,316 |
57,821 |
Milestone payments |
|
|
18,374 |
7,865 |
Gilead collaboration agreement for filgotinib |
|
|
17,374 |
7,865 |
Sobi distribution agreement for Jyseleca |
|
|
1,000 |
- |
Royalties |
|
|
4,645 |
721 |
Gilead royalties on Jyseleca |
|
|
4,601 |
678 |
Other royalties |
|
|
44 |
43 |
Total collaboration revenues |
|
|
121,936 |
113,813 |
The rollforward of the outstanding balance of the current and non-current deferred income between 1 January 2022 and 31 March 2022 can be summarized as follows:
(thousands of €) |
Total |
Gilead collaboration agreement for filgotinib |
Gilead collaboration agreement for drug discovery platform(1) |
Other deferred income (grants & goods in transit) |
||||
|---|---|---|---|---|---|---|---|---|
On 1 January 2022 |
2,364,701 |
604,875 |
1,759,828 |
- |
||||
|
|
|
|
|
||||
Milestones achieved |
18,238 |
18,238 |
|
|
||||
Significant financing component(2) |
1,939 |
1,939 |
|
|
||||
|
|
|
|
|
||||
Revenue recognition of upfront |
(98,917) |
(41,602) |
(57,316) |
|
||||
Revenue recognition of milestones |
(17,374) |
(17,374) |
|
|
||||
|
|
|
|
|
||||
Other movements |
634 |
|
|
634 |
||||
|
|
|
|
|
||||
On 31 March 2022 |
2,269,223 |
566,077 |
1,702,513 |
634 |
||||
|
||||||||
Operating costs and other operating income
Operating costs
Research and development expenditure
The following table summarizes our research and development expenditure for the three months ended 31 March 2022 and 2021:
|
Three months ended 31 March |
|
|---|---|---|
(thousands of €) |
2022 |
2021 |
Personnel costs |
(40,205) |
(40,382) |
Subcontracting |
(41,728) |
(72,980) |
Disposables and lab fees and premises costs |
(5,207) |
(5,917) |
Depreciation and amortization |
(3,386) |
(3,283) |
Professional fees |
(4,408) |
(3,213) |
Other operating expenses |
(4,985) |
(4,185) |
Total research and development expenditure |
(99,921) |
(129,960) |
The table below summarizes our R&D expenditure for the three months ended 31 March 2022 and 2021, broken down by program.
|
Three months ended 31 March |
|
|---|---|---|
(thousands of €) |
2022 |
2021 |
Filgotinib program |
(44,867) |
(36,932) |
Toledo program |
(13,354) |
(27,823) |
TYK2 program on GLPG3667 |
(3,467) |
(5,990) |
Ziritaxestat program |
(532) |
(10,513) |
Other programs |
(37,701) |
(48,702) |
Total research and development expenditure |
(99,921) |
(129,960) |
Sales and marketing expenses
The following table summarizes our sales and marketing expenses for the three months ended 31 March 2022 and 2021:
|
Three months ended 31 March |
|
|---|---|---|
(thousands of €) |
2022 |
2021 |
Personnel costs |
(16,033) |
(10,302) |
Depreciation |
(215) |
(51) |
External outsourcing costs |
(10,378) |
(10,115) |
Sales and marketing expenses recharged to Gilead |
31 |
6,642 |
Professional fees |
(369) |
(18) |
Other operating expenses |
(2,019) |
(692) |
Total sales and marketing expenses |
(28,984) |
(14,536) |
General and administrative expenses
The following table summarizes our general and administrative expenses for the three months ended 31 March 2022 and 2021:
|
Three months ended 31 March |
|
|---|---|---|
(thousands of €) |
2022 |
2021 |
Personnel costs |
(20,418) |
(16,207) |
Depreciation and amortization |
(1,914) |
(1,670) |
Legal and professional fees |
(4,508) |
(5,859) |
Other operating expenses |
(6,515) |
(6,686) |
Total general and administrative expenses |
(33,355) |
(30,422) |
Other operating income
The following table summarizes our other operating income for the three months ended 31 March 2022 and 2021:
|
Three months ended 31 March |
|
|---|---|---|
(thousands of €) |
2022 |
2021 |
Grant income |
437 |
1,272 |
R&D incentives |
7,085 |
8,846 |
Other |
158 |
148 |
Total other operating income |
7,680 |
10,266 |
Other financial income/expenses
The following table summarizes our other financial income/expenses (-) for the three months ended 31 March 2022 and 2021:
|
Three months ended 31 March |
|
|---|---|---|
(thousands of €) |
2022 |
2021 |
Other financial income: |
|
|
Interest income |
662 |
746 |
Effect of discounting long term R&D incentives receivables |
23 |
23 |
Currency exchange gain |
14,362 |
46,662 |
Other finance income |
10 |
69 |
Total other financial income |
15,058 |
47,500 |
|
|
|
Other financial expenses: |
|
|
Interest expenses |
(2,063) |
(1,375) |
Effect of discounting long term deferred income |
(1,939) |
(2,447) |
Currency exchange loss |
(912) |
(953) |
Fair value loss on financial assets held at fair value through profit or loss |
- |
(2,913) |
Fair value loss on current financial investments |
(193) |
(3,572) |
Other finance charges |
(204) |
(86) |
Total other financial expenses |
(5,312) |
(11,345) |
|
|
|
Total net other financial income |
9,746 |
36,155 |
Cash position
Cash and cash equivalents and current financial investments totaled €4,643.4 million on 31 March 2022 (€4,703.2 million on 31 December 2021).
Cash and cash equivalents and current financial investments comprised cash at banks, term deposits, treasury bills and money market funds. Our cash management strategy monitors and optimizes our liquidity position. Our cash management strategy allows short-term deposits with an original maturity exceeding three months while monitoring all liquidity aspects.
Cash and cash equivalents comprised €783.6 million of term deposits which all had an original maturity longer than three months. All cash and cash equivalents are available upon maximum three months notice period and without significant penalty. Cash at banks were mainly composed of notice accounts and current accounts. Our credit risk is mitigated by selecting a panel of highly rated financial institutions for our deposits.
Current financial investments comprised €1,102.8 million of term deposits which all had an original maturity longer than three months and which are not available on demand within three months. Our current financial investments also comprised money market funds and treasury bills. Our portfolio of treasury bills contains only AAA rated paper, issued by Germany. Our money market funds portfolio consists of AAA short-term money market funds with a diversified and highly rated underlying portfolio managed by established fund management companies with a proven track record.
|
31 March |
31 December |
|---|---|---|
(thousands of €) |
2022 |
2021 |
Money market funds |
1,407,986 |
1,317,460 |
Treasury bills |
878,333 |
877,349 |
Term deposits |
1,102,779 |
275,000 |
Total current financial investments |
3,389,098 |
2,469,809 |
|
|
|
Cash at banks |
470,667 |
1,225,860 |
Term deposits |
783,612 |
1,007,508 |
Total cash and cash equivalents |
1,254,279 |
2,233,368 |
|
|
|
Total current financial investments and cash and cash equivalents |
4,643,377 |
4,703,177 |
On 31 March 2022, our cash and cash equivalents and current financial investments included $949.4 million held in U.S. dollars ($942.5 million on 31 December 2021) which could generate foreign exchange gains or losses in our financial results in accordance with the fluctuation of the EUR/U.S. dollar exchange rate as our functional currency is EUR. The foreign exchange loss (–)/gain in case of a 10% change in the EUR/U.S. dollar exchange rate amounts to €85.5 million.
Capital increase
On 31 March 2022, Galapagos NV’s share capital was represented by 65,648,221 shares. All shares were issued, fully paid up and of the same class. The below table summarizes our capital increases for the period ended 31 March 2022.
(thousands of €, except share data) |
Number of shares |
Share capital |
Share premium |
Share capital and share premium |
Average exercise price subscription rights (in €/ subscription right) |
Closing share price on date of capital increase |
|---|---|---|---|---|---|---|
On 1 January 2022 |
65,552,721 |
292,075 |
2,730,391 |
3,022,467 |
|
|
|
|
|
|
|
|
|
18 March 2022: exercise of subscription rights |
95,500 |
517 |
1,643 |
2,160 |
22.61 |
57.38 |
|
|
|
|
|
|
|
On 31 March 2022 |
65,648,221 |
292,592 |
2,732,034 |
3,024,626 |
|
|
Note to the cash flow statement
|
Three months ended 31 March |
|
|---|---|---|
(thousands of €) |
2022 |
2021 |
Adjustment for non-cash transactions |
|
|
Depreciation and amortization |
5,516 |
5,019 |
Share-based compensation expenses |
14,397 |
18,459 |
Increase in retirement benefit obligations and provisions |
135 |
95 |
Unrealized exchange gains and non-cash other financial result |
(13,873) |
(38,515) |
Discounting effect of deferred income |
1,940 |
2,447 |
Fair value re-measurement of warrants |
185 |
(1,970) |
Net change in (fair) value of current financial investments |
193 |
3,572 |
Fair value adjustment financial assets held at fair value through profit or loss |
- |
2,913 |
Other non-cash expenses |
1,159 |
- |
Total adjustment for non-cash transactions |
9,652 |
(7,980) |
Adjustment for items to disclose separately under operating cash flow |
|
|
Interest expense |
2,063 |
1,375 |
Interest income |
(662) |
(740) |
Tax expense |
1,724 |
157 |
Total adjustment for items to disclose separately under operating cash flow |
3,125 |
792 |
|
|
|
Adjustment for items to disclose under investing and financing cash flows |
|
|
Gain on sale of subsidiaries |
- |
(22,191) |
Realized exchange gain on sale of current financial investments |
- |
(6,645) |
Interest income on current financial assets |
- |
(6) |
Total adjustment for items to disclose separately under investing and financing cash flow |
- |
(28,842) |
|
|
|
Change in working capital other than deferred income |
|
|
Increase (-)/decrease in inventories |
1,006 |
(300) |
Decrease in receivables |
41,888 |
31,883 |
Decrease in liabilities |
(2,783) |
(11,911) |
Total change in working capital other than deferred income |
40,111 |
19,673 |