Galapagos delivers strong 2009 performance, expects positive operating income in 2010

(Thomson Reuters ONE) - ·         2009 revenues at or above EUR100 million·         2009 positive cash-flow of EUR20 million·         2009 year-end cash balance EUR47.3 million·         2010 guidance: positive operating income and cash-flow, revenues aboveEUR120 millionMechelen, Belgium; 29 January 2010 - Galapagos NV (Euronext: GLPG) released atrading update based on unaudited preliminary results for full year 2009. Revenues for 2009 will be at or above previously given guidance of EUR100million, more than 30% growth over 2008.  Strong cash flow from Galapagos'strategic alliances, combined with BioFocus' income and a successful privateplacement in October 2009, resulted in a year-end cash balance of EUR47.3 million(compared to EUR27.3 million at the end of 2008).  Based on alliance and servicedivision revenue forecasts for 2010, Galapagos anticipates group operatingincome and cash flow to be positive in 2010, with revenues above EUR120 million, a20% increase over 2009."Following our strongest ever financial and operational performance, Galapagosnow joins the select group of European biotechnology firms that are selfsufficient," said Onno van de Stolpe, CEO of Galapagos.  "Galapagos' hybridbusiness model has proven a successful blueprint for financial self-reliance indiscovering and developing breakthrough medicines.  We believe that thesubstantial growth and the profitability that we foresee for 2010 will besustainable in future years."In its audited financial reporting scheduled for 5 March 2010, Galapagos willpresent 2009 revenues growth fueled by its pharma alliances as well as continuedsolid performance by BioFocus.  In its pharma alliances, Galapagos deliveredstrong results and received milestone payments from all of its partners(GlaxoSmithKline, Janssen Pharmaceutica, Lilly and Merck & Co.).  BioFocusrecorded strong margin improvement on top of sales growth, resulting inincreased profitability for 2009.  The positive cash flow from the alliances andfrom BioFocus operations, in combination with the successful EUR18.2 millionprivate placement in October 2009, resulted in a year-end 2009 cash position ofEUR47.3 million.  This is EUR9.3 million better (24%) than the updated guidance ofEUR38 million given in November following the successful private placement.In the last quarter of 2009, Galapagos signed an alliance with Roche in COPD,expanded its strategic alliance with Merck in metabolic diseases and broadenedthe arthritis alliance with GSK.  Galapagos now has four programs in clinicaldevelopment.  The first Phase I study with metastatic cancer candidate drugGLPG0187 was completed, showing good safety and promising biomarker results.Additionally, two new clinical trials were started in the fourth quarter of2009: a Phase II clinical trial for multiple sclerosis flares with Nanocort anda first-in-human study for GLPG0555, part of the arthritis alliance with GSK.At the end of 2009, BioFocus extended its long-term collaboration with Amgen,signed a compound management agreement with the TB Alliance and receivedmultiple milestone payments in its oncology target discovery collaboration withOrtho Biotech Oncology Research & Development, a division of JanssenPharmaceutica.In the fourth quarter, Galapagos also appointed ABN AMRO Bank N.V. (to berenamed The Royal Bank of Scotland N.V. in due course) as liquidity provider.Forecasted revenue from Galapagos' seven alliances with pharmaceutical companiesand visibility into the BioFocus order book encourage management to giveguidance for 2010 Group revenues above EUR120 million, with a positive cash flowand a positive operating income for full year 2010.These preliminary financial results have not been audited and could deviate fromactual results.About GalapagosGalapagos (Euronext: GLPG; OTC: GLPYY) is a drugdiscovery and development company with small molecule programs in bone and jointdiseases, metastatic cancer, cachexia, anti-infectives and metabolic diseases.It has established risk sharing alliances with GlaxoSmithKline, JanssenPharmaceutica, Lilly, Merck & Co. and Roche.  Through an alliance withMorphoSys, Galapagos is also developing new antibody therapies in bone and jointdiseases.  Its division BioFocus offers a full suite of target-to-drug discoveryproducts and services to pharmaceutical and biotech companies and to patientfoundations, encompassing target discovery and validation, screening and drugdiscovery through to delivery of pre-clinical candidates.  Galapagos has morethan 500 employees and operates facilities in six countries, with globalheadquarters in Mechelen, Belgium.  More info at: www.glpg.comCONTACTOnno van de StolpeCEOTel: + 31 62 909 8028ir(at)glpg.com This release may contain forward-looking statements, including, withoutlimitation, statements containing the words "believes," "anticipates,""expects," "intends," "plans," "seeks," "estimates," "may," "will," "could,""stands to," and "continues," as well as similar expressions. Suchforward-looking statements may involve known and unknown risks, uncertaintiesand other factors which might cause the actual results, financial condition,performance or achievements of Galapagos, or industry results, to be materiallydifferent from any historic or future results, financial conditions, performanceor achievements expressed or implied by such forward-looking statements. Giventhese uncertainties, the reader is advised not to place any undue reliance onsuch forward-looking statements. These forward-looking statements speak only asof the date of publication of this document. Galapagos expressly disclaims anyobligation to update any such forward-looking statements in this document toreflect any change in its expectations with regard thereto or any change inevents, conditions or circumstances on which any such statement is based, unlessrequired by law or regulation.[HUG#1378465]

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Datum: 29.01.2010 - 01:31 Uhr
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