Entity Specific Information

Material impacts, risks and opportunities and their interaction with strategy and business model

Scientific Innovation

Scientific innovation remains a cornerstone of our vision to transform patient outcomes. This positive opportunity underscores our commitment to advancing novel therapies, particularly by leveraging emerging technologies such as artificial intelligence in drug development and expanding our research portfolio. In the short term, we are driving progress through targeted investments in innovative technologies and fostering a corporate culture that prioritizes creativity, collaboration, and cutting-edge research. These efforts position us to remain at the forefront of scientific advancement.

Intellectual Property

Protecting intellectual property (IP) is both a critical risk and an opportunity to maintain our competitive edge. In the short term, safeguarding proprietary technologies is essential to ensuring continued innovation and differentiation in the biotech sector, while also mitigating risks from third-party challenges. To address these priorities, we employ robust IP protection strategies, including patents, trade secrets, and confidentiality agreements with employees and partners. These measures ensure that our innovations are protected to support long-term value creation.

Product Portfolio

The success of our organization is intrinsically linked to the depth and competitive strength of our product portfolio and the advancement of our candidate products. This presents both risks and opportunities in the short term. Challenges include ensuring the successful progression of our early-stage programs, while opportunities lie in strengthening our impact through strategic focus. Our R&D efforts in 2024 were centered around two therapeutic areas: oncology and immunology, with significant investments in R&D to drive innovation in areas of high unmet need. These initiatives aim to deliver impactful therapies that align with our mission and sustainability goals.

Patient Engagement

Engaging with patients and their caregivers throughout the entire drug lifecycle represents a significant opportunity to enhance the relevance and impact of our medicines. In the short term, we are strengthening partnerships with patient organizations, systematically gathering patient and caregiver insights, and translating these into actionable improvements. This approach ensures that we address unmet needs while fostering transparent and health-literate communication with patients and their care partners. These efforts ensure that patients are at the heart of our innovation process, naturally building trust.

Specific policies established to address risks and opportunities in this area include:

• Principles for Patient and Patient Organization Interactions – this sets out the ethical and compliance framework within which we engage with patients and patient organizations. It covers what and how to communicate and what sort of activities are appropriate to conduct in conjunction with these stakeholders. Overall accountability for interactions with patients and patient organizations resides with the Patient Advocacy Team. The Policy oversight sits with the Global Head of Compliance & Ethics.

Actions

Our Patient Partnership Charter sets out our ambition, underpinned by our values and principles, to pioneer for patients by working in close partnership with patients and patient organizations. We have established a Patient Engagement Council (PEC) that provides a patient and caregiver perspective to help us improve its understanding of this critical stakeholder group. By building long-term partnerships with patient organizations and engaging with patients and caregivers, we can translate insights into actions to address unmet needs. The PEC also provides oversight and input into tactical actions including our efforts to provide transparent and health literate communication with patients and their caregivers. We have established “Job Aids” to further help our employees to appropriately engage with patients. These are “How to bring the patient perspective into your decision-making”, which gives practical guidance to our employees to ensure patient engagement is embedded in everyday activities and “Patient Stories”, which ensures we take appropriate steps when sharing individual patient perspectives. More information about our patient engagement activities can be found in ’Our Ambition’ section.

Scientific Innovation

Scientific innovation is key to our mission and there are many risks and opportunities associated with it which would be considered material to us. We are focused on investing in appropriate technology and fostering a culture of innovation to manage these risks and optimize the opportunities. Given the importance of this topic, more detail on this can be found in the portfolio section of this report.

Intellectual Property

As a biotechnological company, protecting proprietary technology and information is crucial for success. We have established an Intellectual Property Policy to help us consistently protect our intellectual property and trade secrets from third-party challenges and this is supported by robust patents and confidentiality agreements with employees, vendors and, partners. The General Counsel of Galapagos is accountable for this policy. Please see the Risk Management section for more information.

Product Portfolio R&D

Our future is dependent on the success of our candidate products, including our early-stage programs.  Our strategic focus on oncology and investments in early-stage drug development is designed to maximize the likelihood of success and appropriately manage the inherent risks in the drug development lifecycle. Given the importance of this topic, more detail on this can be found in the portfolio section of this report.