8. Operating Costs and Other Operating Income
Operating costs
Research and development expenses
The following table summarizes research and development expenses for the years ended December 31, 2024 and 2023.
|
Year ended December 31 |
|
|---|---|---|
(thousands of €) |
2024 |
2023 |
Personnel costs |
(87,740) |
(95,788) |
Subcontracting |
(160,076) |
(82,997) |
Disposables and lab fees and premises costs |
(17,629) |
(18,083) |
Depreciation and impairment |
(35,378) |
(22,254) |
Professional fees |
(15,949) |
(9,272) |
Other operating expenses |
(18,687) |
(12,900) |
Total research and development expenses |
(335,459) |
(241,294) |
The table below summarizes our research and development expenses for the years ended December 31, 2024 and 2023, broken down by program:
|
Year ended December 31 |
|
|---|---|---|
(thousands of €) |
2024 |
2023 |
SIKi program |
(18,400) |
(18,900) |
TYK2 program on GLPG3667 |
(34,965) |
(31,289) |
Cell therapy programs in oncology |
(170,998) |
(82,218) |
Other discovery programs |
(111,096) |
(108,887) |
Total research and development expenses |
(335,459) |
(241,294) |
Sales and marketing expenses
The following table summarizes the sales and marketing expenses of our continuing operations for the years ended December 31, 2024 and 2023.
|
Year ended December 31 |
|
|---|---|---|
(thousands of €) |
2024 |
2023 |
Personnel costs |
(6,561) |
(2,997) |
Depreciation and impairment |
(4,475) |
(113) |
External outsourcing costs |
(2,813) |
(1,776) |
Professional fees |
(904) |
(131) |
Other operating expenses |
(2,440) |
(659) |
Total sales and marketing expenses |
(17,193) |
(5,676) |
General and administrative expenses
The following table summarizes the general and administrative expenses for the years ended December 31, 2024 and 2023.
|
Year ended December 31 |
|
|---|---|---|
(thousands of €) |
2024 |
2023 |
Personnel costs |
(52,642) |
(66,098) |
Depreciation and impairment |
(8,697) |
(15,978) |
Legal and professional fees |
(33,960) |
(23,250) |
Other operating expenses |
(21,946) |
(22,963) |
Total general and administrative expenses |
(117,245) |
(128,289) |
Other operating income
The following table summarizes other operating income for the years ended December 31, 2024 and 2023.
|
Year ended December 31 |
|
|---|---|---|
(thousands of €) |
2024 |
2023 |
Grant income |
2,035 |
6,618 |
R&D incentives income |
27,223 |
32,968 |
Other |
11,515 |
7,686 |
Total other operating income |
40,773 |
47,272 |
The grant income in 2024 and 2023 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 (2024: 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 December 31 |
|
|---|---|---|
(thousands of €) |
2024 |
2023 |
Income from innovation incentive system in France |
2,056 |
5,881 |
Income from Belgian R&D incentives |
16,943 |
16,535 |
Tax rebates on payroll withholding taxes of R&D personnel |
8,224 |
10,552 |
Total R&D incentives income |
27,223 |
32,968 |