8. Operating costs and other operating income
Operating costs
Research and development expenditure
The following table summarizes research and development expenditure for the years ended 31 December 2023 and 2022.
|
Year ended 31 December |
|||
|---|---|---|---|---|
(thousands of €) |
2023 |
2022(*) |
||
Personnel costs |
(95,788) |
(115,484) |
||
Subcontracting |
(82,997) |
(61,192) |
||
Disposables and lab fees and premises costs |
(18,083) |
(19,529) |
||
Depreciation and impairment |
(22,254) |
(51,493) |
||
Professional fees |
(9,272) |
(9,316) |
||
Other operating expenses |
(12,900) |
(12,783) |
||
Total research and development expenditure |
(241,294) |
(269,797) |
||
|
||||
The table below summarizes our research and development expenditure for the years ended 31 December 2023 and 2022, broken down by program:
|
Year ended 31 December |
|||
|---|---|---|---|---|
(thousands of €) |
2023 |
2022(*) |
||
SIKi program |
(18,900) |
(47,727) |
||
TYK2 program on GLPG3667 |
(31,289) |
(24,467) |
||
CAR-T programs in oncology |
(82,218) |
(29,999) |
||
Other programs |
(108,887) |
(167,603) |
||
Total research and development expenditure |
(241,294) |
(269,797) |
||
|
||||
Sales and marketing expenses
The following table summarizes the sales and marketing expenses of our continuing operations for the years ended 31 December 2023 and 2022.
|
Year ended 31 December |
|||
|---|---|---|---|---|
(thousands of €) |
2023 |
2022(*) |
||
Personnel costs |
(2,997) |
(1,693) |
||
Depreciation |
(113) |
(59) |
||
External outsourcing costs |
(1,776) |
(1,267) |
||
Professional fees |
(131) |
(99) |
||
Other operating expenses |
(659) |
(363) |
||
Total sales and marketing expenses |
(5,676) |
(3,480) |
||
|
||||
General and administrative expenses
The following table summarizes the general and administrative expenses for the years ended 31 December 2023 and 2022.
|
Year ended 31 December |
|||
|---|---|---|---|---|
(thousands of €) |
2023 |
2022(*) |
||
Personnel costs |
(66,098) |
(76,536) |
||
Depreciation and impairment |
(15,978) |
(8,529) |
||
Legal and professional fees |
(23,250) |
(23,715) |
||
Other operating expenses |
(22,963) |
(26,375) |
||
Total general and administrative expenses |
(128,289) |
(135,155) |
||
|
||||
Other operating income
The following table summarizes other operating income for the years ended 31 December 2023 and 2022.
|
Year ended 31 December |
|||
|---|---|---|---|---|
(thousands of €) |
2023 |
2022(*) |
||
Grant income |
6,618 |
1,873 |
||
R&D incentives income |
32,968 |
29,104 |
||
Other |
7,686 |
5,150 |
||
Total other operating income |
47,272 |
36,127 |
||
|
||||
The grant income in 2023 and 2022 was fully related to grants from a Flemish agency and the Belgian government. In many cases these grant agreements carry clauses which require us to maintain a presence in the same region for a number of years and invest according to pre-agreed budgets. Grant income in 2023 also included a grant of €6.1 million from the National Institute for Health and Disability Insurance (2022: nil). This grant aimed to incentivize innovative Belgian biotech companies who are performing research and development activities in order to identify new medicines.
R&D incentives income was primarily composed of:
|
Year ended 31 December |
|||
|---|---|---|---|---|
(thousands of €) |
2023 |
2022(*) |
||
Income from innovation incentive system in France |
5,881 |
11,075 |
||
Income from Belgian R&D incentives |
16,535 |
10,339 |
||
Tax rebates on payroll withholding taxes of R&D personnel (Belgium & the Netherlands) |
10,552 |
7,689 |
||
Total R&D incentives income |
32,968 |
29,104 |
||
|
||||