Details of the Unaudited Condensed Consolidated Interim Results
Collaboration revenues
The following table summarizes our collaboration revenues for the six months ended June 30, 2025 and 2024:
|
|
|
Six months ended June 30 |
|
|---|---|---|---|---|
(thousands of €) |
Over |
Point |
2025 |
2024 |
Recognition of non-refundable upfront payments and license fees |
|
|
116,226 |
115,120 |
Gilead collaboration agreement for drug discovery platform |
✓ |
|
115,046 |
115,120 |
Cartilla therapeutics GLPG1972 |
|
✓ |
1,180 |
– |
|
|
|
|
|
Royalties |
|
|
5,553 |
6,080 |
Gilead royalties on Jyseleca® |
|
✓ |
5,553 |
6,080 |
|
|
|
|
|
Total collaboration revenues |
|
|
121,779 |
121,200 |
The roll forward of the outstanding balance of the current and non-current deferred income between January 1, 2025 and June 30, 2025 can be summarized as follows:
(thousands of €) |
Gilead collaboration agreement for drug discovery platform |
Other deferred income |
Total |
|---|---|---|---|
On January 1, 2025 |
1,068,981 |
2,371 |
1,071,352 |
Of which current portion: |
230,105 |
2,371 |
232,476 |
|
|
|
|
Revenue recognition of upfront |
(115,046) |
|
(115,046) |
|
|
|
|
Other movements |
|
(2,240) |
(2,240) |
|
|
|
|
On June 30, 2025 |
953,935 |
131 |
954,066 |
Of which current portion: |
230,105 |
131 |
230,236 |
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 June 30, 2025 and 2024:
|
Six months ended June 30 |
|
|---|---|---|
(thousands of €) |
2025 |
2024 |
Personnel costs |
(82,282) |
(42,040) |
Subcontracting |
(141,001) |
(64,587) |
Disposables and lab fees and premises costs |
(6,575) |
(8,971) |
Depreciation and impairment |
(32,232) |
(13,254) |
Professional fees |
(5,693) |
(8,419) |
Other operating expenses |
(10,244) |
(7,954) |
Total research and development expenses |
(278,027) |
(145,225) |
Subcontracting costs increased mainly related to CAR-T and small molecule programs in oncology, and costs for early termination of collaboration agreements. Personnel expenses increased due to severance costs, the increase in depreciation and impairment costs was due to impairment costs related to small molecules assets, of which €10.8 million was recorded on installations and machinery.
The table below summarizes our R&D expenditure for the six months ended June 30, 2025 and 2024, broken down by program.
|
Six months ended June 30 |
|
|---|---|---|
(thousands of €) |
2025 |
2024 |
SIKi program |
(9,054) |
(9,147) |
TYK2 program on GLPG3667 |
(16,306) |
(15,837) |
Cell therapy programs in oncology |
(115,978) |
(65,295) |
Other discovery programs |
(136,689) |
(54,946) |
Total research and development expenses |
(278,027) |
(145,225) |
Costs for other discovery programs increased in the first half of 2025 compared to the same period last year, primarily due to the restructuring costs of the small molecule business.
Sales and marketing expenses
The following table summarizes our sales and marketing expenses for the six months ended June 30, 2025 and 2024:
|
Six months ended June 30 |
|
|---|---|---|
(thousands of €) |
2025 |
2024 |
Personnel costs |
(4,061) |
(3,992) |
Depreciation and impairment |
3,755 |
(147) |
External outsourcing costs |
(520) |
(1,130) |
Professional fees |
(93) |
(506) |
Other operating expenses |
(637) |
(1,317) |
Total sales and marketing expenses |
(1,556) |
(7,092) |
General and administrative expenses
The following table summarizes our general and administrative expenses for the six months ended June 30, 2025 and 2024:
|
Six months ended June 30 |
|
|---|---|---|
(thousands of €) |
2025 |
2024 |
Personnel costs |
(37,126) |
(25,436) |
Depreciation and impairment |
(4,044) |
(4,161) |
Legal and professional fees |
(20,794) |
(15,551) |
Other operating expenses |
(10,950) |
(11,685) |
Total general and administrative expenses |
(72,914) |
(56,833) |
Personnel costs increased due to severance accruals while legal and professional fees increased due to deal costs.
Other operating income
The following table summarizes our other operating income for the six months ended June 30, 2025 and 2024:
|
Six months ended June 30 |
|
|---|---|---|
(thousands of €) |
2025 |
2024 |
Grant income |
57 |
1,324 |
R&D incentives income |
11,946 |
10,620 |
Other |
2,929 |
4,694 |
Total other operating income |
14,932 |
16,638 |
Lower grants, offset by higher R&D incentives and the lower recharges to Alfasigma explain the decrease in other operating income.
Financial income/expenses
The following table summarizes our financial income/expenses (–) for the six months ended June 30, 2025 and 2024:
|
Six months ended June 30 |
|
|---|---|---|
(thousands of €) |
2025 |
2024 |
Fair value adjustments and net currency exchange differences: |
|
|
Net unrealized currency exchange gain/loss (–) |
(38,430) |
18,352 |
Net realized currency exchange loss |
(945) |
(49) |
Fair value re-measurement of warrants |
– |
(12) |
Fair value gain on financial assets held at fair value |
347 |
– |
Positive effect of settlement of hedge instrument |
22,745 |
– |
Fair value gain/loss (–) on current financial investments |
(49,945) |
31,164 |
Total fair value adjustments and net currency exchange differences |
(66,228) |
49,455 |
|
|
|
Other financial income: |
|
|
Interest income |
21,791 |
49,421 |
Discounting effect of non-current R&D incentives receivables |
727 |
558 |
Other finance income |
18 |
36 |
Total other financial income |
22,536 |
50,015 |
|
|
|
Other financial expenses: |
|
|
Interest expenses |
(304) |
(119) |
Discounting effect of other non-current liabilities |
(661) |
(484) |
Other finance charges |
(399) |
(530) |
Total other financial expenses |
(1,364) |
(1,133) |
|
|
|
Total net financial result |
(45,056) |
98,337 |
Fair value adjustments and net currency differences decreased due to the evolution of the USD exchange rate, while other financial income, consisting mainly of interest income, decreased due lower interest rates and the shift from term deposits and treasury bills to money market funds.
Discontinued operations
The following disclosure illustrates the result from our discontinued operations, related to the transfer of the Jyseleca® business to Alfasigma on January 31, 2024.
1.1 Net cash outflow on disposal of the Jyseleca® business
|
Six months ended June 30 |
|---|---|
(thousands of €) |
2025 |
Release from escrow account |
18,323 |
Contribution for R&D costs paid by us to Alfasigma |
(25,000) |
Earn-outs paid by Alfasigma |
4,217 |
Cash out from the disposal of subsidiaries |
(2,459) |
1.2 Result from discontinued operations
|
Six months ended June 30 |
|
|---|---|---|
(thousands of €, except per share data) |
2025 |
2024 |
Product net sales |
– |
11,264 |
Collaboration revenues |
– |
26,041 |
Total net revenues |
– |
37,305 |
|
|
|
Cost of sales |
– |
(2,012) |
Research and development expenses |
(12,516) |
(11,279) |
Sales and marketing expenses |
(588) |
(9,271) |
General and administrative expenses |
(32) |
(1,049) |
Other operating income |
11,599 |
54,601 |
Operating profit/loss (–) |
(1,537) |
68,295 |
|
|
|
Other financial income |
1,921 |
2,856 |
Other financial expenses |
– |
(12) |
Profit before tax |
384 |
71,139 |
|
|
|
Income taxes |
(532) |
(98) |
Net profit/loss (–) |
(148) |
71,041 |
|
|
|
Basic and diluted earnings/loss (–) per share from discontinued operations |
0 |
1.08 |
Weighted average number of shares – Basic (in thousands of shares) |
65,897 |
65,897 |
Weighted average number of shares – Diluted (in thousands of shares) |
65,897 |
66,046 |
The sale of the Jyseleca® business to Alfasigma on January 31, 2024 led to the full recognition in revenue of the remaining deferred income related to filgotinib (€26.0 million reported on the collaboration revenues line for the first half of 2024).
As from February 1, 2024, all economics linked to the sales of Jyseleca® in Europe, all filgotinib development expenses and all remaining G&A and S&M expenses relating to Jyseleca® are for the benefit of/recharged to Alfasigma.
For the six months ending June 30, 2025, the R&D expenses related to the settlement of disputed expenses with Alfasigma.
Other operating income for the first six months of 2025, includes a fair value adjustment of the contingent consideration receivable from Alfasigma as a consequence of an adjusted sales forecast. Other operating income for the first six months of 2024, includes €52.3 million related to the calculation of the gain on the sale of the Jyseleca® business to Alfasigma.
Other financial income contains discounting components on the contingent consideration receivables.
1.3 Cash flow from discontinued operations
|
Six months ended June 30 |
|
|---|---|---|
(thousands of €) |
2025 |
2024 |
Net cash flow used in operating activities |
(555) |
(24,400) |
Net cash flow used in investing activities |
(2,459) |
(5,209) |
Net cash flow used in discontinued operations |
(3,014) |
(29,609) |
Sale of Galapagos Real Estate Belgium NV
In December 2024, we signed a share purchase agreement for the sale of Galapagos Real Estate Belgium NV and the transaction was completed on 31 March 2025.
1.1 Consideration received
|
Six months ended June 30 |
|---|---|
(thousands of €) |
2025 |
Payment received |
12,206 |
Total consideration received |
12,206 |
1.2 Analysis of assets and liabilities over which control was lost
|
March 31 |
|---|---|
(thousands of €) |
2025 |
Property, plant and equipment |
11,115 |
Trade and other receivables |
1 |
Cash and cash equivalents |
13 |
Total assets |
11,129 |
|
|
Trade and other liabilities |
11,020 |
Total liabilities |
11,020 |
|
|
Net assets disposed of |
109 |
1.3 Gain on disposal of subsidiaries
|
Six months ended June 30 |
|---|---|
(thousands of €) |
2025 |
Payment received |
12,206 |
Settlement of intercompany loan |
(11,012) |
Net assets disposed of |
(109) |
Gain on disposal of subsidiaries |
1,085 |
This gain on disposal of subsidiaries is included in the line other operating income in the income statement.
1.4 Net cash inflow on disposal of subsidiaries
|
Six months ended June 30 |
|---|---|
(thousands of €) |
2025 |
Payment received |
12,206 |
Less: cash and cash equivalents balances disposed of |
(13) |
Net cash in from the disposal of subsidiaries, net of cash disposed of |
12,193 |
Cash position
Cash and cash equivalents and financial investments totaled €3,091.5 million on June 30, 2025 (€3,317.8 million on December 31, 2024).
Cash and cash equivalents and financial investments comprised cash at banks, term deposits, treasury bills (nil at June 30, 2025) 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.
All cash and cash equivalents are available upon maximum three months’ notice period and without significant penalty. Cash at banks were mainly composed of current accounts. Our credit risk is mitigated by selecting a panel of highly rated financial institutions for our deposits.
Current financial investments comprised €751.6 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 contained only AAA rated paper, issued by France, Belgium and Europe. 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.
|
June 30 |
December 31 |
|---|---|---|
(thousands of €) |
2025 |
2024 |
Money market funds |
2,268,258 |
1,484,599 |
Treasury bills |
– |
255,078 |
Term deposits |
751,577 |
1,313,657 |
Total current financial investments |
3,019,835 |
3,053,334 |
|
|
|
Cash at banks |
71,669 |
64,239 |
Total cash and cash equivalents |
71,669 |
64,239 |
|
|
|
Non-current financial investments |
– |
200,182 |
Total non-current financial investments |
– |
200,182 |
On June 30, 2025, our cash and cash equivalents and current financial investments included $2,156.2 million held in U.S. dollars ($726.9 million on December 31, 2024) 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 €184.0 million.
Note to the cash flow statement
|
June 30 |
|
|---|---|---|
(thousands of €) |
2025 |
2024 |
Adjustment for non-cash transactions |
|
|
Depreciation and impairment on intangible assets and property, plant and equipment |
36,515 |
18,152 |
Share-based compensation expenses |
12,661 |
10,217 |
Increase in retirement benefit obligations and provisions |
36,867 |
8 |
Unrealized exchange losses/gains (–) and non-cash other financial result |
37,707 |
(18,910) |
Discounting effect of non-current deferred income |
– |
(227) |
Discounting effect of other non-current liabilities |
661 |
484 |
Discounting effect of contingent consideration receivable |
(1,921) |
– |
Fair value re-measurement of warrants |
– |
12 |
Net change in fair value of current financial investments |
67,439 |
(21,391) |
Fair value adjustment financial assets held at fair value through profit or loss |
(347) |
– |
Fair value adjustment contingent consideration receivable |
(11,579) |
(2,628) |
Reversal of impairment loss on trade receivables |
(9,643) |
– |
Other non-cash expenses |
(155) |
99 |
Total adjustment for non-cash transactions |
168,205 |
(14,184) |
|
|
|
Adjustment for items to disclose separately under operating cash flow |
|
|
Interest expense |
304 |
121 |
Interest income |
(21,791) |
(49,421) |
Income taxes |
(1,256) |
(1,041) |
Correction for cash used for other liabilities related to the disposal of subsidiaries |
– |
527 |
Total adjustment for items to disclose separately under operating cash flow |
(22,743) |
(49,814) |
|
|
|
Adjustment for items to disclose under investing and financing cash flows |
|
|
Gain on sale of subsidiaries |
(1,085) |
(52,339) |
Loss on sale of fixed assets |
– |
37 |
Proceeds from disposal of hedging instrument |
(22,745) |
– |
Investment income on financial investments |
(17,498) |
(9,773) |
Total adjustment for items to disclose separately under investing and financing cash flow |
(41,328) |
(62,075) |
|
|
|
Change in working capital other than deferred income |
|
|
Decrease in inventories |
17,553 |
10,756 |
Increase (–)/decrease in receivables |
44,842 |
(42,283) |
Increase/decrease (–) in liabilities |
49,940 |
(32,969) |
Total change in working capital other than deferred income |
112,335 |
(64,496) |
Financial risk management
The following table summarizes the categories of financial assets and liabilities held at fair value:
|
|
June 30 |
December 31 |
|---|---|---|---|
(thousands of €) |
Fair value |
2025 |
2024 |
Financial assets held at fair value through other comprehensive income |
|
|
|
Equity instruments |
Level 3 |
46,928 |
52,941 |
|
|
|
|
Financial assets held at fair value through profit or loss |
|
|
|
Contingent consideration receivable |
Level 3 |
57,606 |
47,207 |
Financial investments |
Level 1 |
2,268,258 |
1,484,599 |
Convertible loan |
Level 3 |
20,348 |
– |
|
|
|
|
Financial liabilities held at fair value through profit or loss |
|
|
|
Contingent consideration related to milestones CellPoint |
Level 3 |
21,238 |
20,576 |
The decrease of the fair value of the equity instruments, which is due to exchange losses, of €6.0 million is reflected in the other reserves (other comprehensive income) in the consolidated equity. The valuation of all our equity investments is based on Level 3 assumptions as it includes investments in non-quoted companies. These investments are valued initially at fair value through the established purchase price between a willing buyer and seller. Subsequent valuation is based on internal and external evidence such as information from recent financing rounds, scientific updates and other valuation techniques.
The contingent consideration receivable relates to fair value of the future earn-outs to be obtained from Alfasigma for the sale of Jyseleca®. €7.0 million is presented on the line “Trade and other receivables” and €50.6 million is presented on the line “non-current contingent consideration receivable”. The total potential amount consists of sales-based milestone payments totaling €120 million and mid-single to mid-double-digit royalties on European sales. The valuation is based on Level 3 assumptions based on our best estimate of the expected earn-outs and sales milestones in the future, considering probability adjusted sales forecasts of Jyseleca® discounted using an appropriate discount rate. The fair value is reviewed at each reporting date and any changes are reflected in our consolidated income statement, in the line 'Net profit/loss (-) from discontinued operations, net of tax'. On June 30, 2025, the fair value of the future earn-outs was increased based on an adjustment of the sales forecasts of Jyseleca® in Europe considering the evolution of the actual net sales. A change in expected sales by 15% would result in a change of €18.0 million in the total contingent consideration receivable on June 30, 2025.
The contingent consideration arrangement relating to the acquisition of CellPoint requires us to pay the former owners of CellPoint additional considerations up to €100.0 million. This amount is due when certain sequential development (€20.0 million), regulatory (€30.0 million) and sales-based (€50.0 million) milestones would be achieved. Total fair value at June 30, 2025 of these milestones amounted to €21.2 million. The fair value measurement is based on significant inputs that are not observable in the market, which are classified as Level 3 inputs. Key assumptions in the valuation at June 30, 2025 include a discount rate of 13.50% for the first two milestones and a discount rate of 14% for the third milestone, an appropriate probability of success of reaching these milestones and expected timing of these milestones. A change in probabilities of success of each milestone by 5 percentage points would result in a change of €3.0 million in the total contingent consideration liability on June 30, 2025. As per June 30, 2025, changes were made to the key assumptions as compared to December 31, 2024 regarding the discount rate and the expected timing of the milestones. This impact, together with the discounting effect, was recognized in the financial results.
We refer to critical accounting judgements and key sources of estimation uncertainty for details about the fair value of the convertible loan.