Galapagos(US:GLPG)2025-11-06 11:00Financial Performance - Galapagos reported total net revenues of €211.4 million for the first nine months of 2025, a 6% increase from €200.1 million in the same period of 2024[12]. - Supply revenues increased by 53% to €29.3 million, while collaboration revenues rose by 1% to €182.1 million[7]. - The company incurred an operating loss of €462.2 million for the first nine months of 2025, compared to a loss of €125.6 million in the same period of 2024, largely due to a €204.8 million impairment related to the cell therapy business[10]. - Net loss from continuing operations for the first nine months of 2025 was €463.0 million, compared to a loss of €20.4 million in the same period of 2024[14]. - The company reported a net profit from discontinued operations of €1.7 million for the first nine months of 2025, a significant decrease from €69.2 million in the same period of 2024[15]. - Basic and diluted loss per share for the nine months ended September 30, 2025, was €7.00, compared to earnings of €0.74 per share in 2024[27]. - The total comprehensive loss for the period was €(467,806) thousand, primarily due to a net loss of €(461,262) thousand[33]. Research and Development - Research and development expenses increased by 48% to €351.9 million, driven by higher personnel costs and impairment on fixed assets[12]. - Research and development expenses increased to €351,909 thousand in 2025, up 47.6% from €238,270 thousand in 2024[27]. - The company reported an impairment of the cell therapy business amounting to €204,753 thousand in 2025[27]. Cash and Investments - Galapagos expects to end 2025 with approximately €2.975 billion to €3.025 billion in cash and financial investments, excluding business development activities[19]. - Financial investments and cash totaled €3,050.1 million as of September 30, 2025, down from €3,317.8 million at the end of 2024[17]. - Cash and cash equivalents remained stable at €64,458 thousand as of September 30, 2025, compared to €64,239 thousand at the end of December 2024[29]. - Cash and cash equivalents at the end of the period were €64,458 thousand, up from €55,523 thousand[31]. - The company made a net sale of financial investments amounting to €152.4 million during the reporting period[34]. Operational Changes - The planned wind down of the cell therapy business could result in an operating cash impact of €100 million to €125 million from Q4 2025 through 2026[19]. - The company anticipates being cash flow neutral to positive by the end of 2026 if the wind down is completed[19]. - The company anticipates a transformation strategy that includes winding down its cell therapy business, which may involve workforce reductions and site closures[24]. Cash Flow - The operational cash burn for the first nine months of 2025 amounted to €145.1 million, with an increase in cash and cash equivalents of €3.3 million[34]. - Net cash flows used in operating activities were €(209,995) thousand, compared to €(260,657) thousand in the previous period[31]. - Net cash flows generated from investing activities were €216,191 thousand, an increase from €152,237 thousand in the prior period[31]. - Interest received was €22,310 thousand, a decrease from €60,523 thousand in the previous period[31]. - The company issued a convertible loan to a third party amounting to €20,000 thousand[31]. Assets and Equity - Total assets decreased to €3,511,914 thousand as of September 30, 2025, from €4,135,719 thousand at the end of December 2024[29]. - Total equity fell to €2,446,963 thousand as of September 30, 2025, down from €2,896,939 thousand at the end of December 2024[29].