Significant accounting policies
There were no significant changes in accounting policies applied by us in these condensed consolidated interim financial statements compared to those used in the most recent annual consolidated financial statements of 31 December 2022.
New standards and interpretations applicable for the annual period beginning on 1 January 2023 did not have any material impact on our condensed consolidated interim financial statements.
We have not early adopted any other standard, interpretation, or amendment that has been issued but is not yet effective.
Critical accounting judgements and key sources of estimation uncertainty
Transfer of the R&D activities of our Romainville site to NovAliX
Management assessed that there is an interrelation between, on the one hand, the sale and purchase agreement with NovAliX, and, on the other hand, the collaboration agreement with NovAliX. Given that both agreements were negotiated as a package, that they became effective on the same day and that they were agreed upon between the same parties, we concluded that they should be accounted for as one, combined transaction (referred to as 'an integrated drug discovery collaboration transaction'), at an agreed transaction price.
We consider the loss on disposal of the Galapagos’ drug discovery and research activities conducted in Romainville, France, to NovAliX as an advance on the future purchase commitment over the following five years. Based on the terms and conditions included in the contracts with NovAliX we believe that we have the right to, and control over, the future economic benefit of such advance.
We refer to the note ‘Details of NovAliX transaction’ for further information.