4. Total Revenues and other Income

Revenues

The following table summarizes the revenues for the years ended 31 December 2014 and 2013.

Total revenue decreased by €7.3 million, or 9%, to €69.4 million for the year ended 31 December 2014, from €76.6 million for the year ended 31 December 2013. This decrease was mainly driven by lower recognition of non-refundable upfront payments, as explained below.

Revenue from non-refundable upfront payments relates to the deferred recognition of upfront payments received under the agreements with AbbVie, amounting to €111.6 million in 2012 and €49.6 million in 2013, which are amortized over a period ranging from 27 to 40 months, based on the estimated period of the Group’s involvement.

Milestone revenues decreased by €0.7 million, or 4%, to €19.8 million for the year ended 31 December 2014 compared to €20.5 million for the year ended 31 December 2013. This decrease was primarily related to fewer milestones achieved in 2014 compared to 2013 as a result of the maturing pipeline of projects under alliance. For the year ended 31 December 2014 €8.3 million of milestones were recognized in relation with the CF Collaboration Agreement with AbbVie and €11.5 million of milestones primarily related to partnered programs with Janssen Pharmaceutica, Servier and GSK. For the year ended 31 December 2013, €20.5 million of milestones primarily related to partnered programs with Janssen Pharmaceutica, Servier and GSK.

Other revenues decreased by €0.6 million, or 14%, to €3.8 million for the year ended 31 December 2014 compared to €4.4 million for the year ended 31 December 2013, principally due to lower revenues from fee-for-service activities.

Other income

The following table summarizes other income for the years ended 31 December 2014 and 2013.

Total other income was composed of grant income and other income and increased by €0.7 million, or 4%, from €19.9 million for the year ended 31 December 2013 to €20.7 million for the year ended 31 December 2014.

The increase in total other income was primarily attributed to increased grant income, which increased by €0.6 million, or 12%, from €5.1 million for the year ended 31 December 2013 to €5.6 million for the year ended 31 December 2014. The majority of this grant income was related to grants from a Flemish agency, representing approximately 90% of all reported grant income in both years. In many cases these carry clauses which require the Group to maintain a presence in the same region for a number of years and invest according to pre-agreed budgets.

Other income increased slightly by €0.1 million, or 1%, from €14.9 million for the year ended 31 December 2013 to €15.0 million for the year ended 31 December 2014. Other income was primarily composed of:

• Income from an innovation incentive system of the French government, which represented €7.8 million of other income for the year ended 31 December 2014 compared to €8.1 million for the year ended 31 December 2013.
• Income from Belgian R&D incentives with regard to incurred R&D expenses, which represented €4.3 million of other income for the year ended 31 December 2014 compared to €4.1 million for the year ended 31 December 2013.
• Tax rebates on payroll withholding taxes of R&D personnel in Belgium and The Netherlands, representing €2.4 million of other income for the year ended 31 December 2014 compared to €2.2 million for the year ended 31 December 2013.