24. Deferred income

Notes to the consolidated financial statements
 CSR report
Galapagos NV • Annual Report 2020

The movement in the non-current and current deferred income is detailed in the table below.

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(thousands of €)

Total

Gilead collaboration agreement for filgotinib

Gilead collaboration agreement for ziritaxestat

Gilead collaboration agreement for drug discovery platform(2)

AbbVie collaboration agreement for CF

Deferred income related to contracts in our fee-for-service segment

Other deferred income (grants)

On 1 January 2019

149,801

145,798

-

-

3,224

471

308

 

 

 

 

 

 

 

 

Upfront received and impact of initial valuation of share subscription

3,655,416

641,663

666,967

2,346,787

 

 

 

Milestones received

49,727

27,317

 

 

22,410

 

 

Significant financing component(3)

6,900

6,900

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue recognition of upfront

(1,009,663)

(260,207)

(666,967)

(80,918)

(1,570)

 

 

Revenue recognition of milestones

(51,156)

(27,092)

 

 

(24,064)

 

 

Catch-up effect on closing date(1)

245,883

245,883

 

 

 

 

 

 

 

 

 

 

 

 

 

Other movements

(46,262)

 

 

(45,856)

 

(109)

(297)

 

 

 

 

 

 

 

 

On 31 December 2019

3,000,646

780,261

-

2,220,013

-

362

10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Upfront payments

160,000

160,000

 

 

 

 

 

Milestones received

90,192

90,192

 

 

 

 

 

Significant financing component(3)

16,278

16,278

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue recognition of upfront

(411,417)

(181,816)

 

(229,601)

 

 

 

Revenue recognition of milestones

(46,261)

(46,261)

 

 

 

 

 

 

 

 

 

 

 

 

 

Other movements

(305)

 

 

 

 

(362)

57

 

 

 

 

 

 

 

 

On 31 December 2020

2,809,133

818,654

 

1,990,412

-

-

67

(1)

Following the contract amendment, the revenue recognized for filgotinib for the year ended 31 December 2019 included a negative catch-up effect resulting from the decrease in the percentage of completion applied to previously received upfront and milestones for that program.

(2)

The upfront received and the outstanding balance on 31 December 2020 and on 31 December 2019 comprise the issuance liabilities for the warrants and the upfront payment allocated to the drug discovery platform. Other movements in 2019 include the derecognition of warrant issuance liabilities through the share premium account.

(3)

With regard to the additional consideration received for the extended cost sharing for filgotinib, we assume the existence of a significant financing component reflecting the time value of money on the estimated recognition period.

We refer to note 6 for a detail of the allocation of the transaction price paid by Gilead.