Overview Statutory Results of Galapagos NV
This overview only concerns an abbreviated version of the non-consolidated statutory results of Galapagos NV. These results are part of the consolidated results as discussed in the Letter from the CEO and Chairman. The complete version of the statutory accounts of Galapagos NV will be filed with the National Bank of Belgium. The statutory auditor’s report contains an unqualified opinion on the statutory accounts of Galapagos NV.
|
Year ended December 31 |
|
|---|---|---|
(thousands of €) |
2025 |
2024 |
Turnover |
1,102,782 |
303,425 |
Inventory semi-finished and finished goods: increase (decrease) |
– |
(12,598) |
Internally generated intangible assets |
294,202 |
265,376 |
Other operating income |
6,082 |
39,918 |
|
|
|
Operating income |
1,403,066 |
596,121 |
|
|
|
Raw materials, consumables and goods for resale |
(52,142) |
(46,408) |
Services and other goods |
(380,339) |
(334,588) |
Remuneration, social security costs and pensions |
(80,454) |
(57,873) |
Depreciation, impairment and other amounts written off on constitution costs, intangible and tangible assets |
(312,248) |
(283,475) |
Impairment on inventories, on orders in progress, and trade receivables |
9,643 |
(10,600) |
Increase in provisions |
(42,739) |
(3,568) |
Other operating charges |
(43,171) |
(27,141) |
Non-recurring operating costs |
(111,421) |
(40,212) |
|
|
|
Operating profit/loss (-) |
390,195 |
(207,744) |
|
|
|
Finance income |
194,027 |
201,081 |
Non-recurring finance income |
163 |
55,972 |
Finance cost |
(123,424) |
(18,647) |
Non-recurring finance cost |
(157,643) |
– |
|
|
|
Profit before tax |
303,318 |
30,662 |
|
|
|
Taxes |
13,604 |
17,120 |
|
|
|
Profit for the year |
316,922 |
47,782 |
|
|
|
Loss brought forward |
(188,142) |
(235,924) |
Transfer to legal reserve |
(15,846) |
– |
|
|
|
Accumulated result to be carried forward |
112,934 |
(188,142) |
|
December 31 |
|
|---|---|---|
(thousands of €) |
2025 |
2024 |
Assets |
|
|
|
|
|
Non-current assets |
264,482 |
545,301 |
Intangible fixed assets |
849 |
109,134 |
Tangible fixed assets |
1,076 |
16,519 |
Financial fixed assets |
128,382 |
297,493 |
Non-current trade and other receivables |
134,175 |
122,155 |
|
|
|
Current assets |
3,077,192 |
3,498,843 |
Inventories |
22,493 |
51,192 |
Trade and other receivables |
97,427 |
108,323 |
Deferred costs |
3,317 |
25,314 |
Accrued income |
5,901 |
7,934 |
Cash and cash equivalents |
2,948,054 |
3,306,080 |
Total assets |
3,341,674 |
4,044,144 |
|
|
|
Equity and liabilities |
|
|
|
|
|
Equity |
3,146,407 |
2,829,485 |
Share capital and reserves |
372,291 |
356,445 |
Share premium account |
2,661,182 |
2,661,182 |
Accumulated result |
112,934 |
(188,142) |
|
|
|
Liabilities |
195,267 |
1,214,659 |
Non-current liabilities |
60,279 |
17,539 |
Provisions |
60,279 |
17,539 |
Current liabilities |
134,988 |
1,197,120 |
Trade and other payables |
101,931 |
126,717 |
Tax, payroll and social security liabilities |
24,785 |
11,989 |
Deferred income |
8,272 |
1,058,414 |
Total equity and liabilities |
3,341,674 |
4,044,144 |
Galapagos NV’s operating income increased by €806.9 million in 2025, from €596.1 million in 2024 to €1,403.1 million in 2025. This increase was due to a higher turnover, of €799.4 million, mainly recognition of upfront payments received from Gilead as part of the OLCA. Based on the intention to wind down and the facts and circumstances on December 31, 2025, it was assessed that the deferred income balance related to our drug discovery platform is no longer justified in our financial statements, leading to the full recognition in 2025 of the deferred income balance at December 31, 2024, in revenue.
There was also an increase due to internally generated intangible assets – being capitalized R&D expenses – which contributed by €28.8 million more to our operating income than previous year. On the other hand other operating income decreased with €33.8 million and amounted to €6.1 million for the year ended December 31, 2025, including in 2025 €4.6 million recuperation of withholding taxes for scientists. This decrease can mainly be explained by lower cross-charges and services rendered to Alfasigma.
The operating costs of 2025 amounted to €1,012.9 million compared to €803.9 million in 2024.
Material purchases increased from €46.4 million in 2024 to €52.1 million in 2025, due to an increase in cost of goods sold.
Services and other goods increased to €380.3 million compared to €334.6 million in 2024, primarily due to higher in- and outsourcing costs.
Personnel costs in 2025 increased to €80.5 million compared to €57.9 million in 2024, mainly due to severance costs. The number of employees at Galapagos NV at the end of 2025 amounted to 92 as compared to 278 at the end of 2024, excluding insourced personnel. The average number of FTE in 2025 decreased to 173, compared to 292 in 2024.
Depreciation increased to €312.2 million in 2025, compared to €283.5 million in 2024, and related primarily to amortization of capitalized R&D expenses. Galapagos NV capitalizes its incurred R&D expenses and fully amortizes them in the same year.
Expenses related to the recording of provisions increased from €3.6 million in 2024 to €42.7 million in 2025 due to provisions for early termination of collaboration agreements.
Other operating charges increased from €27.1 million in 2024 to €43.2 million in 2025 caused by an increase in transfer pricing management fees.
Non-recurring operating costs increased from €40.2 million in 2024 to €111.4 million in 2025 and consisted of impairment costs on intangible and tangible fixed assets, recorded as a consequence of the decision to wind down the cell therapy activities and terminate the small molecules programs.
Galapagos NV’s 2025 financial income decreased to €194.0 million compared to €201.1 million in 2024, financial costs increased to €123.4 million compared to €18.6 million in 2024. Non-recurring finance income in 2024 consisted of the more-value on the sale of the Jyseleca® business to Alfasigma. Non-recurring finance cost in 2025 amounting to €157.6 million consisted of an impairment on financial assets recorded as a result of the wind down. The net exchange gain amounted to €44.7 million in 2024 as compared to a net exchange loss of €99.7 million in 2025 and consisted mainly of non-realized currency exchange results on U.S. dollar. The net interest income in 2025 amounted to €84.7 million as compared to a net interest income of €117.2 million in 2024. We also realized a more value on sale of money market funds of €25.9 million in 2025. Financial income also included dividend income of €62.4 million in 2025, as compared to €12.3 million in 2024.
Tax income recorded in 2025 of €13.6 million as compared to €17.1 million tax income in 2024, related to tax incentives for investments in intangible fixed assets.
Investments in fixed assets in 2025 amounted to €11.5 million, excluding the internally generated assets. They consisted mainly of investments in intangible assets, being software, as well of costs for building improvements, new laboratory and IT equipment.
Non-current and current other receivables amounted to respectively €134.2 million and €86.3 million and included the receivable for tax incentives amounting to respectively €113.0 million and €22.3 million in 2025, compared to other receivables for tax incentives of €118.7 million and €18.1 million in 2024.
Galapagos NV’s cash position at the end of 2025 amounted to €2,948.1 million.
The non-consolidated annual accounts of Galapagos NV which we submit for your approval were prepared in accordance with Belgian accounting rules as well as with the legal and regulatory requirements. They show a positive result. The financial year 2025 closed with a profit of €316.9 million compared to a profit of €47.8 million in 2024. The non-consolidated annual accounts of Galapagos NV show an accumulated profit of €112.9 million as at December 31, 2025; we refer to the Going concern statement for justification for the application of the valuation rules under the going concern assumption.
In 2025, Galapagos NV made use of one financial instrument, a foreign exchange currency swap.
Following common practice, Galapagos NV has given customary representations and warranties which are capped and limited in time.