Galapagos business update
Mechelen, Belgium; 15 May 2009 - Galapagos NV (Euronext: GLPG)
announces today that the operational and financial results achieved
thus far in 2009 encourage the Company to retain full year 2009
financial guidance given earlier this year.
Marking a major step in the Company's progression in March 2009,
Galapagos initiated clinical trials on the first small molecule based
on its target discovery platform. Small molecule GLPG0259 targets
protein kinase MAPKAPK5 and represents a new approach for the
treatment of rheumatoid arthritis. Galapagos also announced several
other achievements in the first three months of 2009, such as
milestones in its rheumatoid arthritis and osteoarthritis alliances,
and an expansion of its anti-infectives alliance with GSK.
Furthermore, Galapagos delivered pre-clinical candidate drugs in its
osteoarthritis and cachexia programs and published the results of a
novel Alzheimer's target in the journal Science. In 2009, Galapagos
also announced two new alliances with Merck & Co.: one in diabetes
and obesity, and one in inflammatory diseases. The discovery,
development and regulatory milestone payments to Galapagos for these
two new alliances with Merck combined could exceed Â¤360 million, plus
significant sales milestones and up to double-digit royalties.
Galapagos anticipates full-year group revenues of Â¤100 million in
2009, a growth of 25% compared to 2008. Revenues from R&D are
expected to be about Â¤60 million, an increase of 90% over last year.
In 2009, the service division BioFocus DPI is expected to make an
improved cash contribution to the Group result. Full year cash burn
in 2009 is expected be limited to around Â¤7 million, leading to an
expected year-end cash position of approximately Â¤20 million.
Galapagos is on track to initiate a Phase I clinical trial with
compound GLPG0187 in bone metastasis in the second quarter of 2009
and two Phase II clinical trials with NanocortÂ© for flares in
rheumatoid arthritis and multiple sclerosis in the second half of
2009. These new trials will expand the Company's development
portfolio to four clinical programs before year end.
Publication of Annual Financial Report 2008 and Shareholders' Meeting
The Company published its Annual Financial Report 2008 and
documentation for its Annual General Shareholders' Meeting (which
will be followed by an Extraordinary General Shareholders' Meeting),
all of which are available in English and Dutch via the Company's
website at www.glpg.com, or upon request via e-mail at firstname.lastname@example.org.
The Annual and Extraordinary General Shareholders' Meetings will take
place on 2 June 2009, starting at 18.00 CET, at the Company's
headquarters in Mechelen, Belgium.
Galapagos (Euronext: GLPG; OTC: GLPYY) is a drug discovery and
development company with small molecule programs in bone and joint
diseases, bone metastasis, cachexia, anti-infectives and metabolic
diseases. It has established risk sharing alliances with GSK,
Janssen Pharmaceutica, Eli Lilly and Merck. Through an alliance with
MorphoSys, Galapagos is also developing new antibody therapies in
bone and joint diseases. Its division BioFocus DPI offers a full
suite of target-to-drug discovery products and services to
pharmaceutical and biotech companies and to patient foundations,
encompassing target discovery and validation, screening and drug
discovery through to delivery of pre-clinical candidates. Galapagos
currently employs 490 people and operates facilities in six
countries, with global headquarters in Mechelen, Belgium. More info
Onno van de Stolpe, CEO
Tel: +31 6 2909 8028
This release may contain forward-looking statements, including,
without limitation, statements containing the words "believes,"
"anticipates," "expects," "intends," "plans," "seeks," "estimates,"
"may," "will," "could," "stands to," and "continues," as well as
similar expressions. Such forward-looking statements may involve
known and unknown risks, uncertainties and other factors which might
cause the actual results, financial condition, performance or
achievements of Galapagos, or industry results, to be materially
different from any historic or future results, financial conditions,
performance or achievements expressed or implied by such
forward-looking statements. Given these uncertainties, the reader is
advised not to place any undue reliance on such forward-looking
statements. These forward-looking statements speak only as of the
date of publication of this document. Galapagos expressly disclaims
any obligation to update any such forward-looking statements in this
document to reflect any change in its expectations with regard
thereto or any change in events, conditions or circumstances on which
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