14. Other non-current assets
On 15 July 2016, we invested €2.75 million in Pharnext, a French advanced clinical stage biopharmaceutical company developing new therapeutics for severe orphan and common neurological diseases, listed on Euronext. Galapagos has no restrictions on the sale of this equity investment and the asset is not pledged under any Galapagos’ liabilities. This investment is classified as available-for-sale equity investment which qualifies for level 1 fair value measurement based upon the closing price of the PXT securities on Euronext at each reporting date.
Fair value changes on available-for-sale financial assets are recognized directly in equity, through the statement of changes in equity.
As of 31 December 2016, other non-current assets mainly consisted of available-for-sale equity investments in Pharnext re-measured at fair value for €2.4 million as follows.
(thousands of €) |
Fair value of available-for-sale financial assets |
Cost at 1 January 2016 |
– |
Additions of the year |
2,750 |
Cost at 31 December 2016 |
2,750 |
Fair value adjustment of the year |
(399) |
Fair value adjustment at 31 December 2016 |
(399) |
Net book value at 31 December 2016 |
2,351 |
The unrealized loss of €399 thousand as of 31 December 2016, based on unadjusted quoted market price, was recorded as a separate item within equity (revaluation reserve) in the line “other reserves”.