Going concern statement
To date, Galapagos has incurred significant operating losses, which is reflected in the balance sheet showing €63.9 million accumulated losses as at 31 December 2014. However, despite net losses in previous years, Galapagos realized a consolidated net income of €33.2 million for the year ended 31 December 2014, owing to the sale of the service division. The Board has examined the financial statements and accounting policies. Based on conservative assumptions which exclude income from a potential $250 million license of filgotinib by AbbVie, Galapagos believes that its existing cash and cash equivalents of €187.7 million for the year ended 31 December 2014 will enable Galapagos to fund its operating expenses and capital expenditure requirements at least through end of 2016. The Board is also of the opinion that additional financing could be obtained, if required. Taking this into account, as well as the favourable outlook of developments of Galapagos’ drug discovery and development activities, the Board is of the opinion that it can submit the financial statements on a going concern basis. Whilst Galapagos’ cash position is sufficient for Galapagos’ immediate and midterm needs, the Board points out that if the R&D activities continue to go well, Galapagos may seek additional funding to support the continuing development of its products or to be able to execute other business opportunities.