In This Article:
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Total Revenue: EUR 276 million, including EUR 35 million from Jyseleca supply revenues and EUR 241 million in collaboration revenues.
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Research and Development Expenses: EUR 335 million, a 39% increase year-over-year.
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G&A and Sales and Marketing Expenses: EUR 134 million, flat year-over-year.
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Net Profit: EUR 74 million, driven by fair value adjustments, currency exchange, interest income, and a gain from the sale of the Jyseleca business.
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Cash Position: Approximately EUR 3.3 billion at the end of 2024.
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Cash Burn: EUR 374 million for 2024; excluding business development, EUR 293 million, within the guidance range of EUR 280 million to EUR 320 million.
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Capitalization Post-Separation: Galapagos with approximately EUR 500 million in cash; SpinCo with approximately EUR 2.45 billion.
Release Date: February 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Galapagos NV (NASDAQ:GLPG) received FDA's IND clearance to begin clinical studies in the US for their CD19 CAR-T program, GLPG5101.
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The company reported strong clinical data from the ATLANTA study, showing high overall and complete response rates in various lymphoma indications.
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Galapagos NV (NASDAQ:GLPG) is well-capitalized with approximately EUR3.3 billion in cash, providing a solid financial foundation for future developments.
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The company is advancing its leadership in cell therapy with a decentralized manufacturing platform, aiming for a seven-day vein-to-vein time.
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Galapagos NV (NASDAQ:GLPG) plans to separate into two publicly traded entities, allowing for focused strategies and resource allocation in cell therapy and other innovative medicines.
Negative Points
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Research and development expenses increased by 39% year-over-year, driven by expansion in oncology CAR-T, impacting overall profitability.
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The company is discontinuing future small molecule research, which may limit diversification in their pipeline.
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There is a delay in the US patient recruitment for the ATLANTA 1 study, which could impact timelines for clinical development.
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Galapagos NV (NASDAQ:GLPG) is deprioritizing its second CD19 CAR-T candidate, GLPG5201, which may limit options in their CAR-T portfolio.
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The separation into two entities requires significant restructuring and realignment, which could pose operational challenges.
Q & A Highlights
Q: Can you elaborate on why Galapagos is deprioritizing the 5201 CAR-T program in favor of 5101? A: Paulus Stoffels, CEO, explained that both 5101 and 5201 showed excellent efficacy and safety. However, focusing on 5101 simplifies the process and accelerates the pipeline, as running two CD19 programs would complicate the decentralized manufacturing network. By prioritizing 5101, they can accelerate the two indications most likely to reach the market.