Galapagos shares

Market risks relating to the Galapagos shares

Galapagos has identified the following major market risks:

  • Possible volatility of share price
    The market price of the shares might be affected by a variety of factors outside management control, such as the global economic situation, the business development of competitors, sector mergers and acquisitions; it is difficult to mitigate this risk

  • Economic risk due to failure in confidence
    General public confidence about future economic conditions or performance of Galapagos or its suppliers or customers may impact the ability or willingness of others to trade with Galapagos

  • Dilution through exercise of warrant plans
    The exercise of existing warrants can significantly increase the number of outstanding Galapagos shares

  • Inability to distribute dividends
    The Group has a limited operating history and future profitability cannot be guaranteed. Galapagos NV has significant losses carried-forward and will thus not be able to distribute dividends in the near future. This can cause people to refrain from investing in Galapagos’ stock

  • Reputational damage
    High ethical standards are maintained throughout the entire organization at all levels. Laws and guidelines are complied with

  • Belgian law provisions
    There are several provisions of Belgian company law and certain other provisions of Belgian law, such as the obligation to disclose important shareholdings and merger control, that may apply to Galapagos and which may make an unfriendly tender offer, merger, change in management or other change in control, more difficult. These provisions could discourage potential takeover attempts that third parties may consider and thus deprive the shareholders of the opportunity to sell their shares at a premium (which is typically offered in the framework of a takeover bid)