Details of the unaudited condensed consolidated interim results

Product net sales

We reported net sales of Jyseleca for the first six months of 2022 amounting to €35.4 million (€0.5 million in the first six months of 2021).

Related costs of sales in the first half-year of 2022 amounted to €5.5 million.

Collaboration revenues

The following table summarizes our collaboration revenues for the six months ended 30 June 2022 and 2021:

The rollforward of the outstanding balance of the current and non-current deferred income between 1 January 2022 and 30 June 2022 can be summarized as follows:

Operating costs and other operating income

Operating costs

Research and development expenditure

The following table summarizes our research and development expenditure for the six months ended 30 June 2022 and 2021:

The increase in depreciation and impairment for the first six months of 2022 is primarily due to an impairment of €26.7 million of previously capitalized upfront fees related to our collaboration with Molecure on the dual chitinase inhibitor OATD-01.

The table below summarizes our R&D expenditure for the six months ended 30 June 2022 and 2021, broken down by program.

Sales and marketing expenses

The following table summarizes our sales and marketing expenses for the six months ended 30 June 2022 and 2021:

The termination of our 50/50 filgotinib co-commercialization cost sharing agreement with Gilead explains a significant part of the increase in sales & marketing expenses.

General and administrative expenses

The following table summarizes our general and administrative expenses for the six months ended 30 June 2022 and 2021:

Other operating income

The following table summarizes our other operating income for the six months ended 30 June 2022 and 2021:

Financial income/expenses

The following table summarizes our financial income/expenses (-) for the six months ended 30 June 2022 and 2021:

Cash position

Cash and cash equivalents and current financial investments totaled €4,429.0 million on 30 June 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 €487.8 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 €1,332.9 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.

On 30 June 2022, our cash and cash equivalents and current financial investments included $953.8 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 €91.8 million.

Capital increase

On 30 June 2022, Galapagos NV’s share capital was represented by 65,728,511 shares. All shares were issued, fully paid up and of the same class. The below table summarizes our capital increases for the period ended 30 June 2022.

Note to the cash flow statement

Business combinations

On 21 June 2022 we acquired, in an all-cash transaction, 100% of the shares and voting interests of CellPoint for a total agreed payment at completion of €125 million, including consideration for other liabilities associated with the transaction amounting to €10.3 million. Additional contingent consideration up to €100.0 million is due when certain development, regulatory and sales-based milestones would be achieved.

On the same date we acquired all of the outstanding capital of AboundBio, for a total agreed price of $14 million, including consideration for other liabilities associated with the transaction. 

The main reason for these acquisitions is to position ourselves in next-generation cancer therapy market and to significantly broaden our portfolio and capabilities. As a result of these acquisitions, we gain access to an innovative, scalable, decentralized and automated point-of-care cell therapy supply model as well as a next-generation fully human antibody-based therapeutics platform. Combined and supported by us as a fully integrated biopharma, they have the potential to disrupt the CAR-T treatment paradigm. The goal is to expand the current market for CAR-T therapies and have an important impact on patients in need of additional and improved treatment options.

Details of the preliminary fair value of identifiable assets and liabilities acquired in both transactions, the preliminary purchase consideration and provisional goodwill at the acquisition date are as follows:

The preliminary fair value of the identifiable assets and liabilities are included in our condensed consolidated interim financial statements as per 30 June 2022. To date we have performed a preliminary fair value analysis of the business combinations, with corresponding adjustments to the trade and other liabilities. We expect the provisional amount of goodwill to change significantly upon the completion of the purchase price allocation, resulting from the valuation of the different assets and liabilities acquired, including the valuation of in-process R&D.