Economy

Galapagos focuses on fewer diseases and saves costs | Financial

In addition to the lower costs because Galapagos will conduct fewer studies, the Belgian-Dutch company also believes it will be able to spend less money on an operational level. This should yield 150 million euros annually. This year it is not yet possible to realize that full savings, but Galapagos expects to be able to achieve half of it. The so-called cash burn, the speed at which the company uses up the available money, therefore amounts to between 580 and 620 million euros this year.

In the first three months of this year, Galapagos’ sales were € 124.2 million, up from € 103.6 million a year earlier. Galapagos also made a profit of 9.4 million euros, although this was due to the proceeds from the sale of part of Fidelta at the beginning of this year. Without that one-off windfall, Galapagos posted a loss of $ 12.8 million. That was well less than the 52.3 million that the biotechnologist spent more in the first three months of 2020 than was received.

Recently, Galapagos had to cope with some setbacks, such as a disapproval by the FDA for rheumatism filgotinib. This also led to a review of the collaboration with Gilead. In addition, Galapagos suffered a setback in a test of an anti-pulmonary fibrosis drug. The trial was discontinued on the advice of an independent committee because of an “unfavorable balance” between efficacy and safety.

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