Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | GALAPAGOS NV |
Entity Central Index Key | 1,421,876 |
Document Type | 6-K |
Document Period End Date | Jun. 30, 2018 |
Amendment Flag | false |
Current Fiscal Year End Date | --06-30 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | H1 |
Consolidated Income Statement
Consolidated Income Statement - EUR (€) € in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Consolidated Income Statement | ||||
Revenues | € 49,676 | € 26,933 | € 87,583 | € 60,925 |
Other income | 7,358 | 6,235 | 14,289 | 12,106 |
Total revenues and other income | 57,034 | 33,168 | 101,872 | 73,031 |
Research and development expenditure | (81,680) | (47,983) | (151,444) | (92,913) |
General and administrative expenses | (8,503) | (6,327) | (15,200) | (11,930) |
Sales and marketing expenses | (602) | (534) | (1,014) | (1,090) |
Total operating expenses | (90,784) | (54,844) | (167,658) | (105,933) |
Operating loss | (33,750) | (21,676) | (65,786) | (32,903) |
Financial income | 6,499 | 1,425 | 8,109 | 2,319 |
Financial expenses | 5,553 | (15,299) | (1,241) | (18,573) |
Loss before tax | (21,698) | (35,550) | (58,919) | (49,157) |
Income taxes | (75) | (92) | (137) | (92) |
Net loss | (21,773) | (35,642) | (59,056) | (49,249) |
Net loss attributable to owners of the parent | € (21,773) | € (35,642) | € (59,056) | € (49,249) |
Basic and diluted loss per share | € (0.42) | € (0.71) | € (1.16) | € (1.03) |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - EUR (€) € in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Consolidated Statement of Comprehensive Income | ||||
Net loss | € (21,773) | € (35,642) | € (59,056) | € (49,249) |
Items that may be reclassified subsequently to profit or loss: | ||||
Fair value adjustment of financial assets available-for-sale | 199 | 191 | ||
Translation differences, arisen from translating foreign activities | 154 | (355) | 151 | (316) |
Other comprehensive income / loss (-), net of income tax | 154 | (156) | 151 | (125) |
Total comprehensive income / loss (-) attributable to owners of the parent | € (21,619) | € (35,798) | € (58,905) | € (49,374) |
Consolidated Statement of Finan
Consolidated Statement of Financial Position € in Thousands, $ in Millions | Jun. 30, 2018EUR (€) | Dec. 31, 2017EUR (€) |
Assets | ||
Intangible assets | € 1,403 | € 2,495 |
Property, plant and equipment | 17,854 | 16,692 |
Deferred tax assets | 1,980 | 1,978 |
Non-current R&D incentives receivables | 71,567 | 64,001 |
Non-current restricted cash | 1,158 | 1,158 |
Other non-current assets | 2,506 | 2,303 |
Non-currents assets | 96,467 | 88,627 |
Inventories | 267 | 279 |
Trade and other receivables | 19,108 | 27,966 |
Current R&D incentives receivables | 14,654 | 11,782 |
Cash and cash equivalents | 1,066,766 | 1,151,211 |
Other current assets | 7,086 | 6,409 |
Current assets | 1,107,881 | 1,197,647 |
Total assets | 1,204,348 | 1,286,274 |
Equity and liabilities | ||
Share capital | 235,583 | 233,414 |
Share premium account | 996,117 | 993,025 |
Other reserves | (641) | (1,260) |
Translation differences | (1,604) | (1,754) |
Accumulated losses | (343,796) | (211,441) |
Total equity | 885,659 | 1,011,983 |
Pension liabilities | 3,739 | 3,582 |
Provisions | 58 | 65 |
Other non-current liabilities | 878 | 1,597 |
Non-current deferred income | 67,427 | 97,348 |
Non-current liabilities | 72,102 | 102,592 |
Finance lease liabilities | 9 | |
Trade and other payables | 69,141 | 47,122 |
Current tax payable | 862 | 865 |
Accrued charges | 861 | 1,159 |
Current deferred income | 175,722 | 122,544 |
Current liabilities | 246,586 | 171,699 |
Total liabilities | 318,688 | 274,291 |
Total equity and liabilities | € 1,204,348 | € 1,286,274 |
Consolidated Cash Flows Stateme
Consolidated Cash Flows Statement € in Thousands, $ in Millions | 6 Months Ended | |
Jun. 30, 2018EUR (€) | Jun. 30, 2017EUR (€) | |
Consolidated Cash Flows Statement | ||
Cash and cash equivalents at beginning of year | € 1,151,211 | € 973,241 |
Net loss attributable to owners of the parent | (59,056) | (49,249) |
Adjustments for: | ||
Tax expense | 137 | 92 |
Net financial income (-) / expense | (6,868) | 16,254 |
Depreciation of property, plant and equipment | 1,866 | 1,780 |
Amortization of intangible fixed assets | 1,818 | 364 |
Net realized gain / loss (-) on foreign exchange transactions and other net financial expenses paid | (4) | (464) |
Share-based compensation | 10,540 | 6,968 |
Decrease in provisions | (8) | (8) |
Increase in pension liabilities | 157 | 143 |
Subtotal | (51,418) | (24,120) |
Decrease / increase (-) in inventories | 12 | (18) |
Increase in receivables | (3,204) | (2,248) |
Increase in payables | 21,357 | 5,307 |
Decrease in deferred income | (59,967) | (30,752) |
Cash used in operations | (93,219) | (51,830) |
Interest paid | (848) | (25) |
Interest received | 2,789 | 557 |
Net cash flows used in operating activities | (91,278) | (51,298) |
Purchase of property, plant and equipment | (3,003) | (2,260) |
Purchase of and expenditure in intangible fixed assets | (722) | (204) |
Proceeds from disposal of property, plant and equipment | 1 | 12 |
Decrease in restricted cash | 6,531 | |
Proceeds from sale of available-for-sale financial assets | 372 | |
Net cash flows generated/used (-) in investing activities | (3,724) | 4,451 |
Repayment of obligations under finance leases and other debts | (7) | (33) |
Proceeds from capital and share premium increases, gross amount | 363,924 | |
Issue cost paid, related to capital and share premium increases | (15,784) | |
Proceeds from capital and share premium increases from exercise of warrants | 5,261 | 4,666 |
Net cash flows generated in financing activities | 5,254 | 352,773 |
Effect of exchange rate differences on cash and cash equivalents | 5,304 | (17,107) |
Increase/ decrease (-) in cash and cash equivalents | (84,445) | 288,820 |
Cash and cash equivalents at end of the period | € 1,066,766 | € 1,262,061 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - EUR (€) € in Thousands | IFRS 15Accumulated losses | IFRS 15 | IFRS 9Other reserves | IFRS 9Accumulated losses | Share capital | Share premium account | Translation differences | Other reserves | Accumulated losses | Total |
Balance at beginning of period at Dec. 31, 2016 | € 223,928 | € 649,135 | € (1,090) | € (1,000) | € (112,272) | € 758,701 | ||||
Net loss | (49,249) | (49,249) | ||||||||
Other comprehensive income | (316) | 191 | (125) | |||||||
Total comprehensive income | (316) | 191 | (49,249) | (49,374) | ||||||
Share-based compensation | 6,968 | 6,968 | ||||||||
Issue of new shares | 23,331 | 340,593 | 363,924 | |||||||
Share issue costs | (15,859) | (15,859) | ||||||||
Exercise of warrants | 1,618 | 3,048 | 4,666 | |||||||
Balance at end of period at Jun. 30, 2017 | 233,018 | 992,776 | (1,406) | (809) | (154,553) | 1,069,026 | ||||
Change in accounting policy | € (83,220) | € (83,220) | € 619 | € (619) | ||||||
Restated total equity | 233,414 | 993,025 | (1,754) | (641) | (295,280) | 928,764 | ||||
Balance at beginning of period at Dec. 31, 2017 | 233,414 | 993,025 | (1,754) | (1,260) | (211,441) | 1,011,983 | ||||
Net loss | (59,056) | (59,056) | ||||||||
Other comprehensive income | 151 | 151 | ||||||||
Total comprehensive income | 151 | (59,056) | (58,905) | |||||||
Share-based compensation | 10,540 | 10,540 | ||||||||
Exercise of warrants | 2,169 | 3,092 | 5,261 | |||||||
Balance at end of period at Jun. 30, 2018 | € 235,583 | € 996,117 | € (1,604) | € (641) | € (343,796) | € 885,659 |
Basis of preparation
Basis of preparation | 6 Months Ended |
Jun. 30, 2018 | |
Basis of preparation | |
Basis of preparation | Basis of preparation These condensed consolidated interim financial statements have been prepared in accordance with IAS 34 ‘Interim Financial Reporting ’ as adopted by the European Union and as issued by the IASB. The condensed consolidated interim financial statements do not contain all information required for an annual report and should therefore be read in conjunction with Galapagos’ annual report 2017. |
Significant accounting policies
Significant accounting policies | 6 Months Ended |
Jun. 30, 2018 | |
Significant accounting policies | |
Significant accounting policies | Significant accounting policies There were no significant changes in accounting policies applied by us in these condensed consolidated interim financial statements compared to those used in the most recent annual consolidated financial statements of December 31, 2017, except for the adoption of new standards and interpretations described below. · IFRS 15 Revenue from Contracts with Customers, and clarifications on this IFRS (applicable for annual periods beginning on or after January 1, 2018) · IFRS 9 Financial Instruments, and subsequent amendments (applicable for annual periods beginning on or after January 1, 2018) The nature and the effect of these changes were taken into consideration, and the above amendments affected the condensed consolidated interim financial statements as follows: IFRS 15 Revenue from Contracts with Customers. We adopted IFRS 15 on January 1, 2018, using the modified retrospective transition method. The adoption of the new standard resulted in a timing difference of revenue recognition between prior accounting standards and IFRS 15. The cumulative effect of initially applying the new revenue standard was recognized as an adjustment to the opening balance of accumulated deficit and deferred income. To determine revenue recognition for arrangements that we determine are within the scope of IFRS 15, we perform the following five steps: (i) identify the contract; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; (v) recognize revenue when (or as) the entity satisfies a performance obligation. As a consequence of the adoption of the new IFRS standard on January 1, 2018, our consolidated accumulated losses and deferred income were both increased for an amount of €83.2 million, reflecting the impact of the new standard on the revenue recognition of the considerations received related to our ongoing license and collaboration agreements. Differences in accounting treatment compared to the former standard were identified for (i) the milestones payments previously received in the scope of our license and collaboration agreement for filgotinib with Gilead, and (ii) the upfront and milestone payments received related to the license and collaboration agreement with AbbVie for cystic fibrosis, which were fully recognized in revenue in the previous years under the former applicable IFRS standard. The collaboration agreement with AbbVie for cystic fibrosis was modified in 2016. Under IAS 18 this modification was accounted for as a separate contract. However, based on the contract modification guidance under IFRS 15 we determined that the upfront payment should be recognized over the term of the modified contract. Finally, the deferred income balance related to the license fee received from Servier in the scope of our license and collaboration agreement in the field of osteoarthritis was fully reclassified to equity as a consequence of the adoption of the new standard. We refer to the revenues disclosure for further detail. IFRS 9 Financial Instruments. The only financial instrument held by the company subject to change in accounting treatment following the adoption of IFRS 9 – Financial Instruments, was the equity investments in a French biotech company classified as available-for-sale financial asset. At December 31, 2017, our balance sheet held shares of this company which were acquired in 2016. The closing price of the share on Euronext as at the end of the year 2017 led to cumulative fair value loss amounting to €0.6 million recognized in other comprehensive income following the accounting treatment applied under IAS 39. Following the adoption of the new IFRS standard on January 1, 2018, and considering that the financial asset should be classified and measured at fair value, with changes in fair value recognized in profit and loss, the cumulative fair value loss of €0.6 million previously recognized in other comprehensive income was reclassified to accumulated losses. Fair value gain amounting to €0.1 million was additionally recognized in profit and loss for the first six months of 2018. Other new standards and interpretations applicable for the annual period beginning on January 1, 2018 did not have any impact on our condensed consolidated interim financial statements. We have not early adopted any other standard, interpretation, or amendment that has been issued but is not yet effective. Management judgments and estimates Preparing interim financial statements in compliance with IFRS requires management to make judgments and estimates and to use assumptions that may significantly influence the reported amounts of assets and liabilities, the notes on contingent assets and liabilities on the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results may differ from these estimates. We refer to note 3 of our 2017 annual report, except for revenue recognition under the new standard IFRS 15 adopted on January 1, 2018, which is described below. Evaluating the criteria for revenue recognition under license and collaboration agreements requires management’s judgement to assess and determine the following: § The nature of the contractual performance obligations and whether they are distinct or should be combined with other performance obligations. § The pattern of transfer of each promised license and/or R&D activities identified in the contract, sometimes using input or output methods which are based on key assumptions such as forecasted costs and, development timelines of our license and collaboration agreements for the assessment of satisfaction of the performance obligation. The above may significantly influence our financial statements. We applied the five step model detailed in IFRS 15 to determine when, how and at what amount revenue is to be recognized depending on whether certain criteria are met. The positions taken in applying this standard are detailed below. The substance of our current arrangements is that Galapagos is licensing certain of its intellectual property to collaboration partners and conducts research and development (“R&D”) activities. Such activities result in a service that is the output of Galapagos’ ordinary activities. We generate revenue through a number of these arrangements which include license fees, milestone payments, reimbursement income and future sales based milestones and sales based royalties. We assessed that the revenues from our current material licensing and collaboration agreements are in the scope of IFRS 15. Collaboration with Gilead We concluded as follows: § We assessed that there is one single performance obligation under the new standards of IFRS 15: the transfer of a license combined with performance of R&D activities. This is because we considered that the license is not distinct in the context of the contract. § The transaction price of our agreement with Gilead is currently composed of a fixed part, being an upfront license fee and a variable part, being milestone payments and cost reimbursements for R&D activities delivered. Milestone payments are included in the transaction price of the arrangement only when achieved. Sales based milestones and sales based royalties are a part of our arrangement but are not yet included in our revenues as our program is still in Phase 3 of development. § The transaction price has been allocated to the single performance obligation and revenues have been recognized over the estimated service period based on a pattern that reflects the transfer of the license and progress to complete satisfaction of the R&D activities. This is because we considered that there is a transformational relationship between the license and the R&D activities to be delivered. § We have chosen an input model to measure the satisfaction of the single performance obligation that considers percentage of costs incurred for this program that are completed each period (percentage of completion method). § Costs reimbursements received from Gilead are to be recognized in revenues when costs are incurred and agreed by the parties as we are acting as a principal in the scope of our stake of the R&D activities of our ongoing license and collaboration agreements. Collaboration with AbbVie We concluded as follows: § We assessed that there is one single performance obligation under the new standards of IFRS 15: the transfer of a license combined with performance of R&D activities. This is because we considered that the license is not capable of being distinct and is not distinct in the context of the contract. § The transaction price of our agreement with AbbVie is currently composed of a fixed part, being an upfront license fee, and a variable part, being milestone payments and cost reimbursements for R&D activities delivered. Milestone payments are included in the transaction price of the arrangement only when achieved. Sales based milestones and sales based royalties are a part of our arrangement but are not yet included in our revenues as our program is still in Phase 1 & 2 of development. § The transaction price has been allocated to the single performance obligation and revenues have been recognized over the estimated service period based on a pattern that reflects the transfer of the license and progress to complete satisfaction of the R&D activities. This is because we considered that there is a transformational relationship between the license and the R&D activities to be delivered. § We have chosen an input model to measure the satisfaction of the single performance obligation that considers a percentage of costs incurred for this program that are completed each period (percentage of completion method). § Costs reimbursements received from AbbVie could be recognized in revenues when costs are incurred and agreed by the parties as we are acting as a principal in the scope of our stake of the R&D activities of our ongoing license and collaboration agreements. Finally, the deferred income balance on December 31, 2017 related to the license fee received from Servier in the scope of our license and collaboration agreement in the field of osteoarthritis (€5.4 million) was fully reclassified to equity as a consequence of the adoption of the new standard. |
Seasonality
Seasonality | 6 Months Ended |
Jun. 30, 2018 | |
Seasonality | |
Seasonality | Seasonality The impact of seasonality or cyclicality on our operations is not regarded as applicable to the unaudited condensed consolidated interim financial statements. |
Revenues and other income
Revenues and other income | 6 Months Ended |
Jun. 30, 2018 | |
Revenues and other income | |
Revenues and other income | DETAILS OF THE UNAUDITED CONDENSED CONSOLIDATED INTERIM RESULTS Revenues and other income Revenues The following table summarizes our revenues for the six months ended June 30, 2018 and 2017. Six months ended June 30, 2018 2017 (Euro, in thousands) Recognition of non-refundable upfront payments and license fees € 52,753 € 30,952 Milestone payments 28,567 25,920 Reimbursement income 558 107 Other revenues 5,705 3,945 Total revenues € 87,583 € 60,925 The following table summarizes the revenue recognition of the upfront payments, license fees and milestones payments for the six months ended June 30, 2018 and 2017, as well as the impact of the adoption of IFRS 15. The revenues recognized for the six months ended June 30, 2018, are presented under the IFRS 15 standard as well as under the former applicable IAS 18 standard, with a comparison to the first six months of 2017 under the former applicable IAS 18 standard. IAS 18 IFRS 15 IFRS 15 IAS 18 IAS 18 IFRS 15 Agreement Consideration Consideration Collaboration start date Outstanding Deferred income reclassified from equity following adoption of IFRS 15 Outstanding Revenue recognized, six months ended June 30, 2018 Revenue recognized, six months ended June 30, 2018 Revenue recognized, six months ended June 30, 2017 Outstanding balance in deferred income as at June 30, 2018 (USD, in thousands) (Euro, in thousands) (Euro, in thousands) Revenue recognition of considerations received prior to December 31, 2017 Gilead collaboration agreement for filgotinib - Upfront payment $ 300,000 € 275,558 January 2016 € 187,449 € 187,449 € 43,215 € 43,215 € 27,114 € 144,234 Gilead collaboration agreement for filgotinib - Subscription agreement (*) N.A. € 39,003 (*) January 2016 € 26,532 € 26,532 € 6,116 € 6,116 € 3,838 € 20,416 Servier collaboration agreement for osteoarthritis - License fee N.A. € 6,000 June 2010 € 5,362 € (5,362) € — € — € 766 € — € — AbbVie collaboration agreement for CF - Upfront payments $ 45,000 € 34,001 September 2013 € € 14,872 € 14,872 € 3,422 € — € — € 11,450 Total upfront and license fees: € 219,343 € 9,510 € 228,853 € 52,753 € 50,097 € 30,952 € 176,099 Gilead collaboration agreement for filgotinib - Milestone payments $ 70,000 € 64,435 January 2016 € 43,832 € 43,832 € 10,105 € — € 9,354 € 33,727 AbbVie collaboration agreement for CF - Milestone payments $ 77,500 € 68,310 September 2013 € 29,878 € 29,878 € 6,875 € — € 16,566 € 23,003 Total milestones: € 73,710 € 73,710 € 16,980 € — € 25,920 € 56,730 Total : € 219,343 € 83,220 € 302,563 € 69,734 € 50,097 € 56,872 € 232,829 Revenue recognition of considerations in the six months ended June 30, 2018 Gilead collaboration agreement for filgotinib - Milestone payments $ 15,000 € 12,418 January 2016 € 5,918 € 12,418 € — € 6,500 AbbVie collaboration agreement for CF - Milestone payments $ 10,000 € 8,548 September 2013 € 5,669 € 8,548 € — € 2,879 Total milestones: € 11,587 € 20,966 € — € 9,379 Grand total : € 219,343 € 83,220 € 302,563 € 81,321 € 71,063 € 56,872 € 242,208 (*) deferred income of €39 million booked upon signing of the share subscription agreement with Gilead as required under IAS 39 Financial instruments: recognition and measurement. The adoption of IFRS 15 Revenue from contracts with customers resulted in a timing difference of revenue recognition between prior accounting standard and IFRS 15, which negatively impacted the accumulated losses and increased the amount of deferred income (contract liabilities) by an amount of €83.2 million, as shown in the table above (column “Deferred income reclassified from equity following adoption of IFRS 15”). We elected the modified retrospective method for the transition which foresees that prior period figures remain as reported under the previous standard and the cumulative effect of applying IFRS 15 is recognized as an adjustment to the opening balance of equity as at the date of initial application (beginning of the year 2018). For the first six months of 2018, €65.4 million of deferred income related to the Gilead collaboration agreement were recognized in revenue under IFRS15 in function of costs incurred, applying the percentage of completion method. This revenue recognition consisted of (i) €43.2 million related to the upfront license fee, (ii) €6.1 million related to the deferred income triggered by the accounting treatment of the share subscription agreement under IAS 39 Financial Instruments: recognition and measurement, (iii) €10.1 million related to milestone payments received prior to December 31, 2017, and (iv) €5.9 million related to milestone payments received in the first half of 2018. The outstanding balance of deferred income from the Gilead collaboration agreement at the end of June 2018 amounted to €204.9 million of which €55.0 million was reported as non-current deferred income. For the first six months of 2018, €16.0 million of deferred income related to the AbbVie collaboration agreement were recognized in revenue under IFRS15 in function of costs incurred, applying the percentage of completion method. This revenue recognition consisted of (i) €3.4 million related to the upfront license fee, (ii) €6.9 million related to milestone payments received in previous years and (iii) €5.7 million related to milestones achieved in the first half of 2018 . The outstanding balance of deferred income from the AbbVie collaboration agreement at the end of June 2018 amounted to €37.3 million of which €12.4 million was reported as non-current deferred income. We are currently reviewing our collaboration with AbbVie, but no conclusion has been reached. Consequently, our revenue recognition method remains unchanged. Other revenues: Other revenues mainly consisted in service revenues from our fee-for-service business for €5.7 million, as reported under the segment information disclosure below. Other income The following table summarizes our other income for the six months ended June 30, 2018 and 2017. Six months ended June 30, 2018 2017 (Euro, in thousands) Grant income € 825 € 424 Other income 13,464 11,682 Total other income € 14,289 € 12,106 Other income increased to €14.3 million in the first six months of 2018 from €12.1 million in the first six months of 2017, mainly driven by higher income from R&D incentives. |
Segment information
Segment information | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of operating segments [abstract] | |
Segment information | Segment information We have two operating segments: R&D and our fee-for-service business Fidelta, located in Croatia. Segment information for the six months ended June 30, 2018 (Euro, in thousands) R&D Fee-for-services Inter-segment Group External revenue € 81,942 € 5,641 € 87,583 Internal revenue 4,126 € (4,126) Other income 14,287 2 14,289 Revenues & other income 96,229 9,770 (4,126) 101,872 Segment result (57,446) 2,200 (55,246) Unallocated expenses (1) (10,540) Operating loss (65,786) Financial (expenses)/income (2) 6,867 Result before tax (58,919) Income taxes (2) (137) Net loss € (59,056) (1) Unallocated expenses consist of expenses for warrant plans under IFRS 2 Share based payments. (2) Financial results and taxes information are not being provided to management in our management reporting as segment results and therefore, their aggregate amount is disclosed at the level of the group in our segment reporting. Segment information for the six months ended June 30, 2017 (Euro, in thousands) R&D Fee-for-services Inter-segment Group External revenue € 57,048 € 3,877 € 60,925 Internal revenue 2,475 € (2,475) Other income 12,094 12 12,106 Revenues & other income 69,142 6,364 (2,475) 73,031 Segment result (25,424) (510) (25,935) Unallocated expenses (1) (6,968) Operating loss (32,903) Financial (expenses)/income (2) (16,254) Result before tax (49,157) Income taxes (2) (92) Net loss € (49,249) (1) Unallocated expenses consist of expenses for warrant plans under IFRS 2 Share based payments. (2) Financial results and taxes information are not being provided to management in our management reporting as segment results and therefore, their aggregate amount is disclosed at the level of the group in our segment reporting. The basis of accounting for any transactions between operating segments is consistent with transactions with third parties. |
Liquid assets position
Liquid assets position | 6 Months Ended |
Jun. 30, 2018 | |
Liquid assets position | |
Liquid assets position | Liquid assets position Cash and cash equivalents totaled €1,066.8 million on June 30, 2018. Cash and cash equivalents at June 30, 2018 comprised cash and cash at banks, short term bank deposits and money market funds that are readily convertible to cash and are subject to an insignificant risk of changes in value. Our cash management strategy may allow short term deposits with an original maturity exceeding three months while monitoring all liquidity aspects. Cash and cash equivalents comprised €625.4 million of term deposits with an original maturity longer than three months but which are available upon one month notice period. Cash at banks were mainly composed of savings accounts and current accounts. We maintain our bank deposits in highly rated financial institutions to reduce credit risk. Cash invested in highly liquid money market funds represented €149.5 million and aim at meeting short-term cash commitments, while reducing the counterparty risk of investment. June 30, December 31, 2018 2017 (Euro, in thousands) Cash at banks € 291,849 € 288,052 Term deposits 625,427 713,446 Money market funds 149,487 149,711 Cash on hand 3 3 Total cash and cash equivalents € 1,066,766 € 1,151,211 On June 30, 2018, our cash and cash equivalents included $243.7 million held in U.S. dollars which could generate foreign exchange gain or loss in our financial results in accordance with the fluctuation of the EUR/U.S. dollar exchange rate as our functional currency is EUR. We expect to use this cash held in U.S. dollars to settle our future payables in U.S. dollars which will be primarily linked to our global collaboration with Gilead for the development of filgotinib. Finally, our balance sheet held R&D incentives receivables from the French government ( Crédit d’Impôt Recherche ) amounting to €41.7 million as of June 30, 2018, to be received in four yearly tranches. Our balance sheet also held R&D incentives receivables from the Belgian Government amounting to €44.5 million as at June 30, 2018. |
Capital increase
Capital increase | 6 Months Ended |
Jun. 30, 2018 | |
Capital increase | |
Capital increase | Capital increase On June 30, 2018, Galapagos NV’s share capital was represented by 51,337,763 shares. All shares were issued, fully paid up and of the same class. The below table summarizes our capital increases for the half-year ended June 30, 2018. (Euro, in thousands, except share data) Number of shares Share Share Share capital Average exercise price warrants Closing share price on date of capital increase ( in Euro/ warrant) ( in Euro/ share) On January 1, 2018 50,936,778 € 233,414 € 993,025 € 1,226,439 March 20, 2018 : exercise of warrants 298,184 1,613 2,311 3,924 13.16 83.72 June 20, 2018 : exercise of warrants 102,801 556 781 1,337 13.01 85.00 On June 30, 2018 51,337,763 € 235,583 € 996,117 € 1,231,700 |
Contingencies and commitment
Contingencies and commitment | 6 Months Ended |
Jun. 30, 2018 | |
Contingencies and commitment | |
Contingencies and commitment | Contingencies and commitment Contractual obligations and commitments We entered into lease agreements for office and laboratories which qualify as operating leases. We also have certain purchase commitments principally with CRO subcontractors and certain collaboration partners. On June 30, 2018 we had outstanding obligations for future minimum rent payments and purchase commitments, which become due as follows: Total Less than 1 - 3 3 - 5 More than 5 (Euro, in thousands) Operating lease obligations € 28,496 € 4,635 € 9,102 € 6,812 € 7,948 Purchase commitments 83,460 59,622 22,922 916 — Total contractual obligations & commitments € 111,956 € 64,256 € 32,024 € 7,728 € 7,948 On December 31, 2017, we had outstanding obligations for future minimum rent payments and purchase commitments, which become due as follows: Total Less than 1 - 3 3 - 5 More than 5 (Euro, in thousands) Operating lease obligations € 26,346 € 4,150 € 7,820 € 6,010 € 8,366 Purchase commitments 65,246 53,010 11,233 1,002 — Total contractual obligations & commitments € 91,592 € 57,160 € 19,053 € 7,012 € 8,366 In addition to the tables above, we have a contractual cost sharing obligation related to our collaboration agreement with Gilead for filgotinib. The contractual cost sharing commitment amounted to €1 02.1 million at June 30, 2018 (€129.0 million at December 31, 2017), for which we have direct purchase commitments of €5.6 million at June 30, 2018 (€10.1 million at December 31, 2017) reflected in the tables above. Contingent liabilities and assets We refer to our annual report 2017 for contingent liabilities and assets. |
Related party transactions
Related party transactions | 6 Months Ended |
Jun. 30, 2018 | |
Related party transactions | |
Related party transactions | Related party transactions On April 19, 2018, the members of the board of directors and the executive committee were offered new warrants under Warrant Plan 2018, subject to acceptance. As of the date of this report, the acceptance period for Warrant Plan 2018 is still ongoing, so the final number of warrants granted to members of the board of directors and the executive committee cannot be determined yet. Under Warrant Plan 2018, the warrants have an exercise term of eight years as of the date of the offer. The exercise price of the warrants is €79.88. Each warrant gives the right to subscribe for one new Galapagos share. As regards the directors, the warrants vest over a period of 36 months at a rate of 1/36th per month. As regards the other beneficiaries, the warrants vest only and fully on the first day of the fourth calendar year following the calendar year in which the grant was made. The warrants are not transferable and can in principle not be exercised prior to January 1, 2022. The table below sets forth the number of warrants offered under Warrant Plan 2018 to each member of the board and executive committee in office during the first six months of 2018: Name Title Number of 2018 warrants offered Onno van de Stolpe Chief Executive Officer; Executive director 100,000 Raj Parekh Non-executive director; Chairman of the board 15,000 Werner Cautreels Non-executive director 7,500 Harrold van Barlingen (*) Non-executive director - Howard Rowe Non-executive director 7,500 Katrine Bosley Non-executive director 7,500 Christine Mummery Non-executive director 7,500 Mary Kerr Non-executive director 7,500 Piet Wigerinck Chief Scientific Officer 60,000 Bart Filius Chief Operating Officer; Chief Financial Officer 80,000 Andre Hoekema Chief Business Officer 50,000 Walid Abi-Saab Chief Medical Officer 60,000 (*) Dr. Van Barlingen's mandate as director of Galapagos NV ended on April 24, 2018 During the first six months of 2018, there were no changes to related party transactions disclosed in the 2017 annual report that potentially had a material impact on the financials of the first six months of 2018. |
Events after the end of the rep
Events after the end of the reporting period | 6 Months Ended |
Jun. 30, 2018 | |
Events after the end of the reporting period | |
Events after the end of the reporting period | Events after the end of the reporting period On July 19, 2018, MorphoSys and Galapagos announced signing of a global exclusive license agreement with Novartis covering the development and commercialization of the joint program MOR106, a monoclonal antibody directed against IL-17C, which will be developed further in atopic dermatitis (AtD) and potentially other indications. MorphoSys and Galapagos will receive equal share of an up-front payment of €95 million and potential future milestone payments of up to approximately €850 million plus royalties up to low-teens to low-twenties. Novartis will bear all future research, development, manufacturing and commercialization costs related to MOR106. The agreement is subject to clearance by the US antitrust authorities under the Hart-Scott-Rodino Act, and will become effective as soon as this condition has been met. |
Basis of preparation (Policies)
Basis of preparation (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Basis of preparation | |
Basis of preparation | Basis of preparation These condensed consolidated interim financial statements have been prepared in accordance with IAS 34 ‘Interim Financial Reporting ’ as adopted by the European Union and as issued by the IASB. The condensed consolidated interim financial statements do not contain all information required for an annual report and should therefore be read in conjunction with Galapagos’ annual report 2017. |
Revenues and other income (Tabl
Revenues and other income (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenues and other income | |
Schedule of revenues | Six months ended June 30, 2018 2017 (Euro, in thousands) Recognition of non-refundable upfront payments and license fees € 52,753 € 30,952 Milestone payments 28,567 25,920 Reimbursement income 558 107 Other revenues 5,705 3,945 Total revenues € 87,583 € 60,925 |
Summary of recognition of the upfront, license fees and milestone payments | IAS 18 IFRS 15 IFRS 15 IAS 18 IAS 18 IFRS 15 Agreement Consideration Consideration Collaboration start date Outstanding Deferred income reclassified from equity following adoption of IFRS 15 Outstanding Revenue recognized, six months ended June 30, 2018 Revenue recognized, six months ended June 30, 2018 Revenue recognized, six months ended June 30, 2017 Outstanding balance in deferred income as at June 30, 2018 (USD, in thousands) (Euro, in thousands) (Euro, in thousands) Revenue recognition of considerations received prior to December 31, 2017 Gilead collaboration agreement for filgotinib - Upfront payment $ 300,000 € 275,558 January 2016 € 187,449 € 187,449 € 43,215 € 43,215 € 27,114 € 144,234 Gilead collaboration agreement for filgotinib - Subscription agreement (*) N.A. € 39,003 (*) January 2016 € 26,532 € 26,532 € 6,116 € 6,116 € 3,838 € 20,416 Servier collaboration agreement for osteoarthritis - License fee N.A. € 6,000 June 2010 € 5,362 € (5,362) € — € — € 766 € — € — AbbVie collaboration agreement for CF - Upfront payments $ 45,000 € 34,001 September 2013 € € 14,872 € 14,872 € 3,422 € — € — € 11,450 Total upfront and license fees: € 219,343 € 9,510 € 228,853 € 52,753 € 50,097 € 30,952 € 176,099 Gilead collaboration agreement for filgotinib - Milestone payments $ 70,000 € 64,435 January 2016 € 43,832 € 43,832 € 10,105 € — € 9,354 € 33,727 AbbVie collaboration agreement for CF - Milestone payments $ 77,500 € 68,310 September 2013 € 29,878 € 29,878 € 6,875 € — € 16,566 € 23,003 Total milestones: € 73,710 € 73,710 € 16,980 € — € 25,920 € 56,730 Total : € 219,343 € 83,220 € 302,563 € 69,734 € 50,097 € 56,872 € 232,829 Revenue recognition of considerations in the six months ended June 30, 2018 Gilead collaboration agreement for filgotinib - Milestone payments $ 15,000 € 12,418 January 2016 € 5,918 € 12,418 € — € 6,500 AbbVie collaboration agreement for CF - Milestone payments $ 10,000 € 8,548 September 2013 € 5,669 € 8,548 € — € 2,879 Total milestones: € 11,587 € 20,966 € — € 9,379 Grand total : € 219,343 € 83,220 € 302,563 € 81,321 € 71,063 € 56,872 € 242,208 |
Schedule of other income | Six months ended June 30, 2018 2017 (Euro, in thousands) Grant income € 825 € 424 Other income 13,464 11,682 Total other income € 14,289 € 12,106 |
Segment information (Tables)
Segment information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of operating segments [abstract] | |
Segment information | Segment information for the six months ended June 30, 2018 (Euro, in thousands) R&D Fee-for-services Inter-segment Group External revenue € 81,942 € 5,641 € 87,583 Internal revenue 4,126 € (4,126) Other income 14,287 2 14,289 Revenues & other income 96,229 9,770 (4,126) 101,872 Segment result (57,446) 2,200 (55,246) Unallocated expenses (1) (10,540) Operating loss (65,786) Financial (expenses)/income (2) 6,867 Result before tax (58,919) Income taxes (2) (137) Net loss € (59,056) (1) Unallocated expenses consist of expenses for warrant plans under IFRS 2 Share based payments. (2) Financial results and taxes information are not being provided to management in our management reporting as segment results and therefore, their aggregate amount is disclosed at the level of the group in our segment reporting. Segment information for the six months ended June 30, 2017 (Euro, in thousands) R&D Fee-for-services Inter-segment Group External revenue € 57,048 € 3,877 € 60,925 Internal revenue 2,475 € (2,475) Other income 12,094 12 12,106 Revenues & other income 69,142 6,364 (2,475) 73,031 Segment result (25,424) (510) (25,935) Unallocated expenses (1) (6,968) Operating loss (32,903) Financial (expenses)/income (2) (16,254) Result before tax (49,157) Income taxes (2) (92) Net loss € (49,249) (1) Unallocated expenses consist of expenses for warrant plans under IFRS 2 Share based payments. (2) Financial results and taxes information are not being provided to management in our management reporting as segment results and therefore, their aggregate amount is disclosed at the level of the group in our segment reporting. |
Liquid assets position (Tables)
Liquid assets position (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Liquid assets position | |
Schedule of cash and cash equivalents | June 30, December 31, 2018 2017 (Euro, in thousands) Cash at banks € 291,849 € 288,052 Term deposits 625,427 713,446 Money market funds 149,487 149,711 Cash on hand 3 3 Total cash and cash equivalents € 1,066,766 € 1,151,211 |
Capital increase (Tables)
Capital increase (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Capital increase | |
Schedule of history of the share capital | (Euro, in thousands, except share data) Number of shares Share Share Share capital Average exercise price warrants Closing share price on date of capital increase ( in Euro/ warrant) ( in Euro/ share) On January 1, 2018 50,936,778 € 233,414 € 993,025 € 1,226,439 March 20, 2018 : exercise of warrants 298,184 1,613 2,311 3,924 13.16 83.72 June 20, 2018 : exercise of warrants 102,801 556 781 1,337 13.01 85.00 On June 30, 2018 51,337,763 € 235,583 € 996,117 € 1,231,700 |
Contingencies and commitment (T
Contingencies and commitment (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Contingencies and commitment | |
Schedule of future minimum repayments and purchase commitments | On June 30, 2018 we had outstanding obligations for future minimum rent payments and purchase commitments, which become due as follows: Total Less than 1 - 3 3 - 5 More than 5 (Euro, in thousands) Operating lease obligations € 28,496 € 4,635 € 9,102 € 6,812 € 7,948 Purchase commitments 83,460 59,622 22,922 916 — Total contractual obligations & commitments € 111,956 € 64,256 € 32,024 € 7,728 € 7,948 On December 31, 2017, we had outstanding obligations for future minimum rent payments and purchase commitments, which become due as follows: Total Less than 1 - 3 3 - 5 More than 5 (Euro, in thousands) Operating lease obligations € 26,346 € 4,150 € 7,820 € 6,010 € 8,366 Purchase commitments 65,246 53,010 11,233 1,002 — Total contractual obligations & commitments € 91,592 € 57,160 € 19,053 € 7,012 € 8,366 |
Related party transactions (Tab
Related party transactions (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Related party transactions | |
Summary of warrants offered | Name Title Number of 2018 warrants offered Onno van de Stolpe Chief Executive Officer; Executive director 100,000 Raj Parekh Non-executive director; Chairman of the board 15,000 Werner Cautreels Non-executive director 7,500 Harrold van Barlingen (*) Non-executive director - Howard Rowe Non-executive director 7,500 Katrine Bosley Non-executive director 7,500 Christine Mummery Non-executive director 7,500 Mary Kerr Non-executive director 7,500 Piet Wigerinck Chief Scientific Officer 60,000 Bart Filius Chief Operating Officer; Chief Financial Officer 80,000 Andre Hoekema Chief Business Officer 50,000 Walid Abi-Saab Chief Medical Officer 60,000 (*) Dr. Van Barlingen's mandate as director of Galapagos NV ended on April 24, 2018 |
Significant accounting polici24
Significant accounting policies (Details) - EUR (€) € in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about intangible assets | ||
Retained earnings | € (343,796) | € (211,441) |
Cumulative fair value loss recognized in other comprehensive income | 600 | |
Fair value loss reclassified to accumulated losses | € (600) | |
Fair value gain recognized in profit and loss | 100 | |
IFRS 15 | ||
Disclosure of detailed information about intangible assets | ||
Retained earnings | € (83,200) |
Revenues and other income - Sum
Revenues and other income - Summary of revenues (Details) - EUR (€) € in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues and other income | ||||
Recognition of non-refundable upfront payments and license fees | € 52,753 | € 30,952 | ||
Milestone payments | 28,567 | 25,920 | ||
Reimbursement income | 558 | 107 | ||
Other revenues | 5,705 | 3,945 | ||
Total revenue | € 49,676 | € 26,933 | € 87,583 | € 60,925 |
Revenues and other income - Rec
Revenues and other income - Recognition of payments (Details) € in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018EUR (€) | Jun. 30, 2017EUR (€) | Jun. 30, 2018USD ($) | Jun. 30, 2018EUR (€) | Jun. 30, 2017EUR (€) | Jun. 30, 2018EUR (€) | Dec. 31, 2017EUR (€) | |
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Revenue recognized | € 49,676 | € 26,933 | € 87,583 | € 60,925 | |||
Retained earnings | € (343,796) | € (211,441) | |||||
Gilead Sciences, Inc | Collaboration Agreement for Filgotinib - Upfront Payments [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Upfront and license fees received | $ 300,000 | 275,558 | |||||
Gilead Sciences, Inc | Collaboration Agreement for Filgotinib Subscription Agreement [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Upfront and license fees received | 39,003 | ||||||
Gilead Sciences, Inc | Collaboration Agreement for Filgotinib - Milestone Payments - Considerations Received Prior to December 31, 2017 [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Milestone payments | 70,000 | 64,435 | |||||
Gilead Sciences, Inc | Collaboration Agreement for Filgotinib - Milestone Payments - Considerations Received in the six months ended June 30, 2018 [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Milestone payments | 15,000 | 12,418 | |||||
Servier | Collaboration Agreement For Osteoarthritis [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Upfront and license fees received | 6,000 | ||||||
AbbVie | Collaboration Agreement for CF Upfront Payments [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Upfront and license fees received | 45,000 | 34,001 | |||||
AbbVie | Collaboration Agreement for CF - Milestone Payments - Considerations Received Prior to December 31, 2017 [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Milestone payments | 77,500 | 68,310 | |||||
AbbVie | Collaboration Agreement for CF - Milestone Payments - Considerations Received in the six months ended June 30, 2018 [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Milestone payments | $ 10,000 | 8,548 | |||||
IAS18 | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Revenue recognized | 71,063 | 56,872 | |||||
Deferred income | 219,343 | ||||||
IAS18 | Upfront and Milestone Payments and License Fees [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Revenue recognized | 50,097 | 56,872 | |||||
Deferred income | 219,343 | ||||||
IAS18 | Upfront Payments and License Fees [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Revenue recognized | 50,097 | 30,952 | |||||
Deferred income | 219,343 | ||||||
IAS18 | Milestone Payments for Prior Period [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Revenue recognized | 25,920 | ||||||
IAS18 | Milestone Payments for Current Period [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Revenue recognized | 20,966 | ||||||
IAS18 | Gilead Sciences, Inc | Collaboration Agreement for Filgotinib - Upfront Payments [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Revenue recognized | 43,215 | 27,114 | |||||
Deferred income | 187,449 | ||||||
IAS18 | Gilead Sciences, Inc | Collaboration Agreement for Filgotinib Subscription Agreement [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Revenue recognized | 6,116 | 3,838 | |||||
Deferred income | 26,532 | ||||||
IAS18 | Gilead Sciences, Inc | Collaboration Agreement for Filgotinib - Milestone Payments - Considerations Received Prior to December 31, 2017 [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Revenue recognized | 9,354 | ||||||
IAS18 | Gilead Sciences, Inc | Collaboration Agreement for Filgotinib - Milestone Payments - Considerations Received in the six months ended June 30, 2018 [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Revenue recognized | 12,418 | ||||||
IAS18 | Servier | Collaboration Agreement For Osteoarthritis [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Revenue recognized | 766 | ||||||
Deferred income | 5,362 | ||||||
IAS18 | AbbVie | Collaboration Agreement for CF - Milestone Payments - Considerations Received Prior to December 31, 2017 [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Revenue recognized | € 16,566 | ||||||
IAS18 | AbbVie | Collaboration Agreement for CF - Milestone Payments - Considerations Received in the six months ended June 30, 2018 [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Revenue recognized | 8,548 | ||||||
IFRS 15 | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Revenue recognized | 81,321 | ||||||
Deferred income | 83,220 | ||||||
Retained earnings | (83,200) | ||||||
IFRS 15 | Upfront and Milestone Payments and License Fees [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Revenue recognized | 69,734 | ||||||
Deferred income | 83,220 | ||||||
IFRS 15 | Upfront Payments and License Fees [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Revenue recognized | 52,753 | ||||||
Deferred income | 9,510 | ||||||
IFRS 15 | Milestone Payments for Prior Period [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Revenue recognized | 16,980 | ||||||
Deferred income | 73,710 | ||||||
IFRS 15 | Milestone Payments for Current Period [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Revenue recognized | 11,587 | ||||||
IFRS 15 | Gilead Sciences, Inc | Collaboration Agreement for Filgotinib - Upfront Payments [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Revenue recognized | 43,215 | ||||||
IFRS 15 | Gilead Sciences, Inc | Collaboration Agreement for Filgotinib Subscription Agreement [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Revenue recognized | 6,116 | ||||||
IFRS 15 | Gilead Sciences, Inc | Collaboration Agreement for Filgotinib - Milestone Payments - Considerations Received Prior to December 31, 2017 [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Revenue recognized | 10,105 | ||||||
Deferred income | 43,832 | ||||||
IFRS 15 | Gilead Sciences, Inc | Collaboration Agreement for Filgotinib - Milestone Payments - Considerations Received in the six months ended June 30, 2018 [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Revenue recognized | 5,918 | ||||||
IFRS 15 | Servier | Collaboration Agreement For Osteoarthritis [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Deferred income | (5,362) | ||||||
IFRS 15 | AbbVie | Collaboration Agreement for CF Upfront Payments [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Revenue recognized | 3,422 | ||||||
Deferred income | 14,872 | ||||||
IFRS 15 | AbbVie | Collaboration Agreement for CF - Milestone Payments - Considerations Received Prior to December 31, 2017 [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Revenue recognized | 6,875 | ||||||
Deferred income | 29,878 | ||||||
IFRS 15 | AbbVie | Collaboration Agreement for CF - Milestone Payments - Considerations Received in the six months ended June 30, 2018 [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Revenue recognized | € 5,669 | ||||||
IFRS 15 | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Deferred income | 242,208 | 302,563 | |||||
IFRS 15 | Upfront and Milestone Payments and License Fees [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Deferred income | 232,829 | 302,563 | |||||
IFRS 15 | Upfront Payments and License Fees [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Deferred income | 176,099 | 228,853 | |||||
IFRS 15 | Milestone Payments for Prior Period [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Deferred income | 56,730 | 73,710 | |||||
IFRS 15 | Milestone Payments for Current Period [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Deferred income | 9,379 | ||||||
IFRS 15 | Gilead Sciences, Inc | Collaboration Agreement for Filgotinib - Upfront Payments [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Deferred income | 144,234 | 187,449 | |||||
IFRS 15 | Gilead Sciences, Inc | Collaboration Agreement for Filgotinib Subscription Agreement [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Deferred income | 20,416 | 26,532 | |||||
IFRS 15 | Gilead Sciences, Inc | Collaboration Agreement for Filgotinib - Milestone Payments - Considerations Received Prior to December 31, 2017 [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Deferred income | 33,727 | 43,832 | |||||
IFRS 15 | Gilead Sciences, Inc | Collaboration Agreement for Filgotinib - Milestone Payments - Considerations Received in the six months ended June 30, 2018 [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Deferred income | 6,500 | ||||||
IFRS 15 | AbbVie | Collaboration Agreement for CF Upfront Payments [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Deferred income | 11,450 | 14,872 | |||||
IFRS 15 | AbbVie | Collaboration Agreement for CF - Milestone Payments - Considerations Received Prior to December 31, 2017 [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Deferred income | 23,003 | € 29,878 | |||||
IFRS 15 | AbbVie | Collaboration Agreement for CF - Milestone Payments - Considerations Received in the six months ended June 30, 2018 [Member] | |||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Deferred income | € 2,879 |
Revenues and other income - Col
Revenues and other income - Collaboration with Gilead and AbbVie (Details) - EUR (€) € in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Non-current deferred income | € 67,427 | € 97,348 |
Service revenues | 5,700 | |
IFRS 15 | ||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Deferred income | 83,220 | |
Collaboration Agreement For Filgotinib [Member] | Gilead Sciences, Inc | ||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Deferred income | 204,900 | |
Non-current deferred income | 55,000 | |
Collaboration Agreement For Filgotinib [Member] | IFRS 15 | Gilead Sciences, Inc | ||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Deferred income recognized in revenue | 65,400 | |
Collaboration Agreement For CF [Member] | AbbVie | ||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Deferred income | 37,300 | |
Non-current deferred income | 12,400 | |
Collaboration Agreement For CF [Member] | IFRS 15 | AbbVie | ||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Deferred income recognized in revenue | € 16,000 | |
Collaboration Agreement For Osteoarthritis [Member] | IFRS 15 | Servier | ||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Deferred income | € (5,362) |
Revenues and other income - S28
Revenues and other income - Summary of other income (Details) - EUR (€) € in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues and other income | ||||
Grant income | € 825 | € 424 | ||
Other income | 13,464 | 11,682 | ||
Total other income | € 7,358 | € 6,235 | € 14,289 | € 12,106 |
Segment information (Details)
Segment information (Details) - EUR (€) € in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure of operating segments [line items] | ||||
Revenues | € 49,676 | € 26,933 | € 87,583 | € 60,925 |
Other income | 7,358 | 6,235 | 14,289 | 12,106 |
Total revenues and other income | 57,034 | 33,168 | 101,872 | 73,031 |
Operating loss | (33,750) | (21,676) | (65,786) | (32,903) |
Financial (expenses)/income | 6,867 | (16,254) | ||
Loss before tax | (21,698) | (35,550) | (58,919) | (49,157) |
Income taxes | (75) | (92) | (137) | (92) |
Net loss | € (21,773) | € (35,642) | (59,056) | (49,249) |
Operating segments [member] | ||||
Disclosure of operating segments [line items] | ||||
Operating loss | (55,246) | (25,935) | ||
Elimination of intersegment amounts [member] | ||||
Disclosure of operating segments [line items] | ||||
Revenues | (4,126) | (2,475) | ||
Total revenues and other income | (4,126) | (2,475) | ||
Unallocated amounts [member] | ||||
Disclosure of operating segments [line items] | ||||
Operating loss | (10,540) | (6,968) | ||
Research and Development Segment [Member] | ||||
Disclosure of operating segments [line items] | ||||
Revenues | 81,942 | 57,048 | ||
Other income | 14,287 | 12,094 | ||
Total revenues and other income | 96,229 | 69,142 | ||
Research and Development Segment [Member] | Operating segments [member] | ||||
Disclosure of operating segments [line items] | ||||
Operating loss | (57,446) | (25,424) | ||
Fee For Services Segment [Member] | ||||
Disclosure of operating segments [line items] | ||||
Revenues | 5,641 | 3,877 | ||
Other income | 2 | 12 | ||
Total revenues and other income | 9,770 | 6,364 | ||
Fee For Services Segment [Member] | Operating segments [member] | ||||
Disclosure of operating segments [line items] | ||||
Operating loss | 2,200 | (510) | ||
Fee For Services Segment [Member] | Elimination of intersegment amounts [member] | ||||
Disclosure of operating segments [line items] | ||||
Revenues | € (4,126) | € (2,475) |
Liquid assets position (Details
Liquid assets position (Details) € in Thousands, $ in Millions | Jun. 30, 2018USD ($) | Jun. 30, 2018EUR (€) | Dec. 31, 2017EUR (€) | Jun. 30, 2017EUR (€) | Dec. 31, 2016EUR (€) |
Liquid assets position | |||||
Cash at banks | € 291,849 | € 288,052 | |||
Term deposits | 625,427 | 713,446 | |||
Money market funds | 149,487 | 149,711 | |||
Cash on hand | 3 | 3 | |||
Total cash and cash equivalents | $ 243.7 | € 1,066,766 | € 1,151,211 | € 1,262,061 | € 973,241 |
Liquid assets position - Narrat
Liquid assets position - Narrative (Details) € in Thousands, $ in Millions | 6 Months Ended | |||||
Jun. 30, 2018EUR (€) | Jun. 30, 2017EUR (€) | Jun. 30, 2018USD ($) | Jun. 30, 2018EUR (€) | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | |
Cash and cash equivalents | ||||||
Cash and cash equivalents | € 1,262,061 | $ 243.7 | € 1,066,766 | € 1,151,211 | € 973,241 | |
Net increase (decrease) in cash and cash equivalents | € (84,445) | 288,820 | ||||
Cash reported, operating activities | (91,278) | (51,298) | ||||
Cash reported, financing activities | 5,254 | 352,773 | ||||
Cash reported, investing activities | (3,724) | 4,451 | ||||
Unrealized negative exchange rate differences | € 5,304 | € (17,107) | ||||
Term deposits | 625,427 | 713,446 | ||||
Cash investments in highly liquid money market funds | 149,487 | € 149,711 | ||||
France | ||||||
Cash and cash equivalents | ||||||
Research and development incentive receivables | 41,700 | |||||
Belgium | ||||||
Cash and cash equivalents | ||||||
Research and development incentive receivables | € 44,500 |
Capital increase (Details)
Capital increase (Details) | 6 Months Ended | |
Jun. 30, 2018EUR (€)EquityInstrumentsshares | Jun. 30, 2017EUR (€) | |
Disclosure of classes of share capital [line items] | ||
Balance at beginning of period, shares | shares | 50,936,778 | |
Balance at beginning of period | € 1,011,983,000 | € 758,701,000 |
Exercise of warrants | € 5,261,000 | 4,666,000 |
Balance at end of period, shares | shares | 51,337,763 | |
Balance at end of period | € 885,659,000 | 1,069,026,000 |
March 20, 2018 : exercise of warrants | ||
Disclosure of classes of share capital [line items] | ||
Exercise of warrants, shares | EquityInstruments | 298,184 | |
Average exercise price warrants | € 13.16 | |
Closing share price | 83.72 | |
June 20, 2018 : exercise of warrants | ||
Disclosure of classes of share capital [line items] | ||
Exercise of warrants | 102,801 | |
Average exercise price warrants | 13.01 | |
Closing share price | 85 | |
Share capital | ||
Disclosure of classes of share capital [line items] | ||
Balance at beginning of period | 233,414,000 | 223,928,000 |
Exercise of warrants | 2,169,000 | 1,618,000 |
Balance at end of period | 235,583,000 | 233,018,000 |
Share capital | March 20, 2018 : exercise of warrants | ||
Disclosure of classes of share capital [line items] | ||
Exercise of warrants | 1,613,000 | |
Share capital | June 20, 2018 : exercise of warrants | ||
Disclosure of classes of share capital [line items] | ||
Exercise of warrants | 556,000 | |
Share premium account | ||
Disclosure of classes of share capital [line items] | ||
Balance at beginning of period | 993,025,000 | 649,135,000 |
Exercise of warrants | 3,092,000 | 3,048,000 |
Balance at end of period | 996,117,000 | € 992,776,000 |
Share premium account | March 20, 2018 : exercise of warrants | ||
Disclosure of classes of share capital [line items] | ||
Exercise of warrants | 2,311,000 | |
Share premium account | June 20, 2018 : exercise of warrants | ||
Disclosure of classes of share capital [line items] | ||
Exercise of warrants | 781,000 | |
Share capital and share premium | ||
Disclosure of classes of share capital [line items] | ||
Balance at beginning of period | 1,226,439,000 | |
Balance at end of period | 1,231,700,000 | |
Share capital and share premium | March 20, 2018 : exercise of warrants | ||
Disclosure of classes of share capital [line items] | ||
Exercise of warrants | 3,924,000 | |
Share capital and share premium | June 20, 2018 : exercise of warrants | ||
Disclosure of classes of share capital [line items] | ||
Exercise of warrants | € 1,337,000 |
Contingencies and commitment (D
Contingencies and commitment (Details) - EUR (€) € in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Disclosure of finance lease and operating lease by lessee [line items] | ||
Operating lease obligations | € 28,496 | € 26,346 |
Purchase commitments | 83,460 | 65,246 |
Total contractual obligations and commitments | 111,956 | 91,592 |
Collaboration Agreement For Filgotinib [Member] | Gilead Sciences, Inc | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Purchase commitments | 102,100 | 129,000 |
Total contractual obligations and commitments | 5,600 | 10,100 |
Within one year | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Operating lease obligations | 4,635 | 4,150 |
Purchase commitments | 59,622 | 53,010 |
Total contractual obligations and commitments | 64,256 | 57,160 |
1-3 years | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Operating lease obligations | 9,102 | 7,820 |
Purchase commitments | 22,922 | 11,233 |
Total contractual obligations and commitments | 32,024 | 19,053 |
3-5 years | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Operating lease obligations | 6,812 | 6,010 |
Purchase commitments | 916 | 1,002 |
Total contractual obligations and commitments | 7,728 | 7,012 |
After five years | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Operating lease obligations | 7,948 | 8,366 |
Total contractual obligations and commitments | € 7,948 | € 8,366 |
Related party transactions - Na
Related party transactions - Narrative (Details) | 6 Months Ended |
Jun. 30, 2018EUR (€)EquityInstruments | |
Related party transactions | |
Exercise term of warrants | 8 years |
Exercise price of warrants | € | € 79.88 |
Number of shares subscribed if warrant is exercised | EquityInstruments | 1 |
Vesting period of warrants | 36 months |
Related party transactions - Su
Related party transactions - Summary of remuneration package (Details) | 6 Months Ended |
Jun. 30, 2018EquityInstruments | |
Onno van de Stolpe | |
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | |
Warrants offered | 100,000 |
Raj Parekh | |
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | |
Warrants offered | 15,000 |
Werner Cautreels | |
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | |
Warrants offered | 7,500 |
Howard Rowe | |
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | |
Warrants offered | 7,500 |
Katrine Bosley | |
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | |
Warrants offered | 7,500 |
Christine Mummery | |
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | |
Warrants offered | 7,500 |
Mary Kerr | |
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | |
Warrants offered | 7,500 |
Piet Wigerinck | |
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | |
Warrants offered | 60,000 |
Bart Filius | |
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | |
Warrants offered | 80,000 |
Andre Hoekema | |
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | |
Warrants offered | 50,000 |
Walid Abi-Saab | |
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | |
Warrants offered | 60,000 |
Events after the end of the r36
Events after the end of the reporting period (Details) - Global exclusive license agreement with Novartis [member] € in Millions | Jul. 19, 2018EUR (€) |
Disclosure of non-adjusting events after reporting period [line items] | |
Future upfront payments | € 95 |
Potential future milestone payments | € 850 |