Financial performance
(thousands of €, if not stated otherwise) |
Year ended |
Year ended |
Year ended |
||
|---|---|---|---|---|---|
Income statement |
|
|
|
||
Product net sales |
87,599 |
14,753 |
2 |
||
Collaboration revenues |
417,681 |
470,093 |
478,051 |
||
Total net revenues |
505,280 |
484,846 |
478,053 |
||
Cost of sales |
(12,079) |
(1,629) |
- |
||
R&D expenditure |
(515,083) |
(491,707) |
(523,667) |
||
G&A expenses |
(292,486) |
(210,855) |
(185,225) |
||
Other operating income |
46,848 |
53,749 |
52,207 |
||
Operating loss |
(267,520) |
(165,596) |
(178,632) |
||
Net financial results |
52,373 |
42,598 |
(131,143) |
||
Taxes |
(2,844) |
(2,423) |
(1,226) |
||
Net loss from continuing operations |
(217,991) |
(125,422) |
(311,001) |
||
Net profit from discontinued operations, |
- |
22,191 |
5,565 |
||
Net loss |
(217,991) |
(103,231) |
(305,436) |
||
|
|
|
|
||
Balance sheet |
|
|
|
||
Cash and cash equivalents |
508,117 |
2,233,368 |
2,135,187 |
||
Current financial investments |
3,585,945 |
2,469,809 |
3,026,278 |
||
R&D incentives receivables |
146,067 |
144,013 |
135,728 |
||
Assets |
4,734,351 |
5,193,160 |
5,717,731 |
||
Shareholders’ equity |
2,526,026 |
2,643,362 |
2,670,355 |
||
Deferred income |
1,989,230 |
2,364,701 |
2,809,133 |
||
Other liabilities |
219,094 |
185,097 |
238,242 |
||
Cash flow |
|
|
|
||
Operational cash burn |
(513,774) |
(564,840) |
(517,404) |
||
Cash flow used in operating activities |
(500,544) |
(503,827) |
(427,336) |
||
Cash flow generated from/used in (-) investing activities |
(1,245,514) |
541,238 |
757,288 |
||
Cash flow generated from/used in (-) financing activities |
(1,487) |
(3,876) |
22,040 |
||
Increase/decrease (-) in cash and cash equivalents |
(1,747,545) |
33,535 |
351,994 |
||
Effect of currency exchange rate fluctuation on cash and cash equivalents |
22,293 |
56,763 |
(70,539) |
||
Cash and cash equivalents on 31 December |
508,117 |
2,233,368 |
2,143,071 |
||
|
|
|
|
||
Cash and cash equivalents from continuing operations |
508,117 |
2,233,368 |
2,135,187 |
||
Cash and cash equivalents classified as assets held for sale |
- |
- |
7,884 |
||
Current financial investments on 31 December |
3,585,945 |
2,469,809 |
3,026,278 |
||
Total current financial investments and cash and cash equivalents on 31 December |
4,094,062 |
4,703,177 |
5,169,349 |
||
|
|
|
|
||
Financial ratios |
|
|
|
||
Number of shares issued on 31 December |
65,835,511 |
65,552,721 |
65,411,767 |
||
Basic and diluted loss per share (in €) |
(3.32) |
(1.58) |
(4.69) |
||
Share price on 31 December (in €) |
41.35 |
49.22 |
80.48 |
||
Total group employees on 31 December (number)(*) |
1,338 |
1,309 |
1,489 |
||
|
|||||
Our net revenues in 2022 amounted to €505.3 million, compared to €484.8 million in 2021.
We reported product net sales of Jyseleca® in Europe in 2022 amounting to €87.6 million, compared to €14.8 million last year.
Cost of sales related to Jyseleca® net sales in 2022 amounted to €12.1 million, compared to €1.6 million in 2021.
Collaboration revenues amounted to €417.7 million in 2022, compared to €470.1 million last year.
The revenue recognition linked to the upfront consideration and milestone payments in the scope of the collaboration with Gilead for filgotinib, amounted to €174.4 million in 2022 (compared to €235.7 million in 2021). This decrease was due to a lower increase in the percentage of completion, slightly offset by higher revenue recognition of milestone payments, strongly influenced by the milestone achieved in 2022 related to the regulatory approval in Japan for UC.
The revenue recognition related to the exclusive access rights granted to Gilead for our drug discovery platform amounted to €230.4 million in 2022 (compared to €230.6 million in 2021). We also recognized royalty income from Gilead for Jyseleca® for €10.7 million in 2022 (compared to €3.8 million in 2021). Additionally, we recorded in 2022 milestone payments of €2.0 million triggered by the initial sales of Jyseleca® in the Czech Republic and Portugal by our distribution and commercialization partner Sobi.
Our deferred income balance at 31 December 2022 includes €1.5 billion allocated to our drug discovery platform that is recognized linearly over the remaining period of our 10-year collaboration, and €0.5 billion allocated to the development of filgotinib which is recognized over time until the end of filgotinib’s development period.
Our R&D expenditure in 2022 amounted to €515.1 million, compared to €491.7 million in 2021. Depreciation and impairment costs in 2022 amounted to €54.5 million (compared to €17.5 million in 2021). This increase was primarily due to an impairment of €26.7 million of previously capitalized upfront fees related to our collaboration with Molecure on the dual chitinase inhibitor OATD-01 (GLPG4716) and impairments of intangible assets related to other discontinued projects recorded in 2022. Personnel costs increased from €165.2 million in 2021 to €190.1 million in 2022 related to increases in restructuring costs and accelerated non-cash cost recognition for subscription right plans related to good leavers. This was partly offset by a decrease in subcontracting costs from €251.1 million in 2021 to €214.9 million in 2022 following the evolution of our programs.
Our S&M and G&A expenses amounted to €292.5 million in 2022, compared to €210.9 million in 2021. This increase was primarily due to the termination of our 50/50 filgotinib co-commercialization cost sharing agreement with Gilead for filgotinib in 2022 which explains €59.7 million of the variance. The cost increase was also explained by an increase in personnel costs of €26.6 million in 2022 compared to 2021, which are related to an increase in our commercial work force driven by the commercial launch of filgotinib in Europe, accelerated non-cash cost recognition for subscription right plans related to good leavers and restructuring costs.
Other operating income (€46.8 million in 2022 compared to €53.7 million in 2021) decreased, mainly driven by lower grant and R&D incentives income.
We reported an operating loss amounting to €267.5 million in 2022, compared to an operating loss of €165.6 million in 2021.
Net financial income in 2022 amounted to €52.4 million, compared to net financial income of €42.6 million in 2021. Net financial income in 2022 was primarily attributable to €41.3 million of unrealized currency exchange gains on our cash and cash equivalents and current financial investments at amortized cost in U.S. dollars, and to €6.9 million of positive changes in the (fair) value of our current financial investments. The other financial expenses also had the effect of discounting our non-current deferred income of €7.7 million. Net interest income amounted to €11.1 million in 2022 as compared to €8.8 million of net interest expense in 2021.
We reported a group net loss in 2022 of €218.0 million, compared to a group net loss of €103.2 million in 2021.
Cash, cash equivalents and current financial investments
Current financial investments and cash and cash equivalents totaled €4,094.1 million on 31 December 2022 as compared to €4,703.2 million on 31 December 2021.
Total net decrease in cash and cash equivalents and current financial investments amounted to €609.1 million in 2022, compared to a net decrease of €466.1 million in 2021. This net decrease was composed of (i) €513.8 million of operational cash burn, (ii) €153.4 million cash out from the acquisitions of CellPoint and AboundBio, net of cash acquired, offset by (iii) €6.9 million positive changes in (fair) value of current financial investments and €44.5 million of mainly positive exchange rate differences, and (iv) €6.7 million of cash proceeds from capital and share premium increase from exercise of subscription rights in 2022.
Operational cash burn (or operational cash flow if this liquidity measure is positive) is a financial measure that is not calculated in accordance with IFRS. Operational cash burn/cash flow is defined as the decrease or increase in our cash and cash equivalents (excluding the effect of exchange rate differences on cash and cash equivalents), minus:
- the net proceeds, if any, from share capital and share premium increases included in the net cash flow generated from/used in (–) financing activities
- the net proceeds or cash used, if any, in acquisitions or disposals of businesses; the movement in restricted cash and movement in current financial investments, if any, the loans and advances given to third parties, if any, included in the net cash flow generated from/used in (–) investing activities
- the cash used for other liabilities related to the acquisition of businesses, if any, included in the net cash flow generated from/used in (–) operating activities.
This alternative liquidity measure is in our view an important metric for a biotech company in the development stage.
The following table presents a reconciliation of operational cash burn, to the closest IFRS measures, for each of the periods indicated:
(thousands of €) |
2022 |
2021 |
|---|---|---|
Increase/decrease (-) in cash and cash equivalents |
(1,747,545) |
33,535 |
Less: |
|
|
Net proceeds from capital and share premium increases |
(6,695) |
(3,314) |
Net purchase/sale (-) of current financial investments |
1,087,032 |
(566,365) |
Cash out from acquisition of subsidiaries, net of cash acquired |
115,270 |
- |
Cash advances and loans to third parties |
10,000 |
- |
Cash used for other liabilities related to the acquisition of subsidiaries |
28,164 |
- |
Cash in from disposals of subsidiaries, net of cash disposed of |
- |
(28,696) |
Total operational cash burn |
(513,774) |
(564,840) |