8. Operating Costs and Other Operating Income
Operating costs
R&D expenses
The following table summarizes R&D expenses for the years ended December 31, 2025 and 2024.
|
Year ended December 31 |
|
|---|---|---|
(thousands of €) |
2025 |
2024 |
Personnel costs |
(147,197) |
(87,740) |
Subcontracting |
(232,906) |
(160,076) |
Disposables and lab fees and premises costs |
(10,812) |
(17,629) |
Amortization, depreciation and impairment |
(42,371) |
(35,378) |
Professional fees |
(7,611) |
(15,949) |
Other operating expenses |
(18,524) |
(18,687) |
Total research and development expenses |
(459,421) |
(335,459) |
The table below summarizes our R&D expenses for the years ended December 31, 2025 and 2024, broken down by program:
|
Year ended December 31 |
|
|---|---|---|
(thousands of €) |
2025 |
2024 |
SIKi program |
(12,772) |
(18,400) |
TYK2 program on GLPG3667 |
(36,744) |
(34,965) |
Cell therapy programs in oncology |
(295,610) |
(170,998) |
Other discovery programs |
(114,295) |
(111,096) |
Total research and development expenses |
(459,421) |
(335,459) |
Sales and marketing expenses
The following table summarizes the sales and marketing expenses of our continuing operations for the years ended December 31, 2025 and 2024.
|
Year ended December 31 |
|
|---|---|---|
(thousands of €) |
2025 |
2024 |
Personnel costs |
(6,601) |
(6,561) |
Amortization, depreciation and impairment |
3,465 |
(4,475) |
External outsourcing costs |
(1,392) |
(2,813) |
Professional fees |
(62) |
(904) |
Other operating expenses |
(1,510) |
(2,440) |
Total sales and marketing expenses |
(6,100) |
(17,193) |
General and administrative expenses
The following table summarizes the general and administrative expenses for the years ended December 31, 2025 and 2024.
|
Year ended December 31 |
|
|---|---|---|
(thousands of €) |
2025 |
2024 |
Personnel costs |
(74,390) |
(52,642) |
Amortization, depreciation and impairment |
(12,951) |
(8,697) |
Legal and professional fees |
(29,515) |
(33,960) |
Other operating expenses |
(30,477) |
(21,946) |
Total general and administrative expenses |
(147,333) |
(117,245) |
Impairment of the cell therapy activities
The acquisition of both CellPoint and AboundBio in 2022 resulted in the recording of a goodwill. This goodwill was allocated the CAR-T/cell therapy cash generating unit (CGU), together with intangibles assets acquired as a result of this business combination and some (in)tangibles related to this CGU. During 2025, as a result of the announced intention to wind down our cell therapy activities (i.e., the CAR-T/cell therapy CGU), we performed an impairment analysis to review the recoverable amount of the CAR-T/cell therapy CGU associated assets.
The review led to an impairment loss of €228.1 million, consisting of a full impairment of the goodwill (€69.4 million) and intangible assets (€132.0 million) and a partial impairment of property, plant and equipment (€26.7 million) allocated to the CAR-T/cell therapy CGU. We refer to note 2 for more information about the wind-down of the cell therapy activities.
The impairment loss has no impact on our cash flows.
Other operating income
The following table summarizes other operating income for the years ended December 31, 2025 and 2024.
|
Year ended December 31 |
|
|---|---|---|
(thousands of €) |
2025 |
2024 |
Grant income |
57 |
2,035 |
R&D incentives income |
27,218 |
27,223 |
Fair value adjustment of contingent consideration payable |
21,760 |
– |
Other |
4,458 |
11,515 |
Total other operating income |
53,493 |
40,773 |
The grant income in 2025 and 2024 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.
R&D incentives income was primarily composed of:
|
Year ended December 31 |
|
|---|---|---|
(thousands of €) |
2025 |
2024 |
Income from innovation incentive system in France |
– |
2,056 |
Income from Belgian R&D incentives |
13,610 |
16,943 |
Tax rebates on payroll withholding taxes of R&D personnel |
13,608 |
8,224 |
Total R&D incentives income |
27,218 |
27,223 |
As a consequence of the wind-down of the cell therapy activities, the fair value of the contingent consideration payable related to the acquisition of CellPoint was reduced to nil. We refer to note 27. “Trade and other liabilities and other non-current liabilities” for more explanation on this contingent consideration.
Other income decreased mainly due to lower rental income, and less recharges to Alfasigma.