GLPG - Earnings call transcript Q2 2022

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Operator

Good day and thank you for standing by. Welcome to the First Half 2022 Financial Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Sofie Van Gijsel. Please go ahead.

Sofie Van Gijsel

welcome results. the and Galapagos' webcast operator XXXX HX you, all audio to of Thank Van Investor Sofie I'm Gijsel, at reporting Galapagos. team Relations, representing the and download webcast be today. recorded is via website This accessible available replay and homepage for later on Galapagos will remind like we that during to forward-looking will webcast. I making statements everyone would be today's company environment. statements in the changes include developments These possible concerning forward-looking of the and competitive and future remarks pipeline and our industry company's forward-looking risks involve The and uncertainties. statements expressed or may differ maturely results statements. from Galapagos' in actual implied the results these Today's speakers Stoffels, Paul be COO and CEO; Filius, will and President. Bart Paul will will results. operational discuss the over financial highlights of HX and and go Bart the

with will see by Walid and Chief the XX turn that take with Bart Medical You estimate Abi-Saab, about to Manto, now Michele I'll Officer; And presentation it Q&A a minutes. Officer. Then screen. over it Chief Paul. Paul We remarks that, open Commercial will the joined prepared we'll and on to up

Paul Stoffels

Sofie half Thank you, this the year. first of review and welcome to

Let the happening back the expect of change and that think we JYSELECA good very year on probably to we we'll full in we'll lot later and come company. U.K. in year. to review made JAK we'll ongoing In -- the that UC and that practice for the me all We'll on say, a and approved are on. seen Japan by and U started is that the QX, end give QX, a where on inhibitors on is information That of the first focus insight have half I the good and hope company. you remember but progress with was you have in

a working very a the I April CEO with of a team for enthusiasm the company. long of on with a value-creating -- X First, a can together pipeline I we create company, in and on time which team how joined lot know as joining as

in think the of reimbursement are the proud RA X on In XX in results you in that are are the countries we I'm we pipeline, reviewing European that. about in now, kicked that way. of a accordingly. where JYSELECA this -- JYSELECA. can and First, allocation whole off sales. to We all pipeline very we review the got say, progress very Bart very we the our on that program in And I UC countries happy I following must of on for see capital proud will the

out. we highlight trials, in it the in early-stage hand, the that in order programs programs in exciting two to which have made and we is in are And where in so moved we acquiring CAR-T made oncology very a oncology. with products CAR-T, now with order both testing we'll on -- We on other a to and move our part clinical decisions the very Abound companies, to also CAR-T organization. most platform CellPoint the we resources the also point-of-care move we transformational on of into a to the bring value-creating which presentation But with but four focus discontinue can new

If pipeline on. we see you look you what will at and here the are working

in market. then of next we year. But the sales boost additional compounds First, Europe. from that accelerated we in hopefully in expect are to needed with inhibitor, and RA in given very this disease UC of Crohn's the highly half of the good the first be results have very as in JAK out data Phase Europe filgotinib And type that will III

have building Phase the it selected that, into a the results on We are bring starting TYKX clinic. with we chosen good in We'll the I. It come dermatomyositis. study back that. indication had XXXX, a on And to in

for looking is further in SIK indication several combinations, that. we entry we our decided the data the deciding and then can evaluating two under where before still XXXX our And with and are SIKX that compounds, we And by and volunteers. look -- move going to in are to bring We are healthy what compounds how have that SIK is one at now forward. see still we previously bring, teams. evaluation And what SIKX can

preclinical CAR-T the one now in then kidney to we CDXX And We compounds year which XXXX. program, As and make -- that indicated, decide through in whether next XXX, product SIKX/X first AboundBio next-gen not. of trials, go in in we of then CAR-T we Phase forward have expect the to in clinical with three four XXXX II is then the years and back and half committed three are or then CAR-Ts that. products. is fibrosis, transformational Still also come XXXX, next XXXX results we discontinue

on inflammation. As slide, you the see the two are first in

back we which compounds a -- XXXX The through and prioritization the were XXXX but second a in missed XXXX, not sorry, two review we other The are are to that indications review anymore fibrosis. returned we in we to And owners company. XXXX, deep also a I here. both to -- original fibrosis. and continuing And rights scientific are exercise. of the evaluate but still have the The on evaluating continue to

III the the It's drivers That with muscle the severe IL-XX disease TYKX is activity medical that. the of activity are on an XX study muscle shown incidence we hope for we doing estimated in Dermatomyositis pathways. unmet to with indication of to XXXX disease the dermatomyositis tolerated. compound per to a TYKX. of was are So TYKX, Ib a in Type -- papules weakness, and and as and The is a and chronic rash working combined the and the cases start skin to in end with aim X chose immune a the XXX,XXX. And well well of need key I, the clinical of teams the the interferons high in psoriasis as explore selected before it year. it Phase

starting TYKX on that's with words the So Abound. year. we are end of the few CellPoint A acquisitions of a new and indication the by the

end-to-end point-of-care manufacturing we which where can on with The a I with a approach, but all very that can And in by significant stage products The fully hem -- the CAR-Ts in next-generation need us capabilities go is as bring still complementary are -- X-day that As well capabilities -- as in and CAR-T second we And our hope the us process address presence working There points already to at Abound pharma with to as -- is unmet future a antibodies. is are with also with there important biopharma hopefully, today. and these the Abound And said, vein-to-vein One our clinical them. of Galapagos biological three CAR-Ts. CellPoint CAR-Ts would today. very of we each in Europe for a with with can three our of development brings is toxicity. durability with acquisition pipeline. it and commercial broader we a disruptive we capabilities supported access, integrated globally. is Abound,

to be to going no would get First, production that the value wait. vein-to-vein, the And one, rate, binders fresh redosing with the is their process. in today. process a likely, out, at therefore, and high the mortality. working the we to on a multi-specific. and high rate we and cells on relapse opportunity dropped hospitals of multiple rate antibodies to provides could leading second viable. manufacturing a to prevent global much hospitals current And value patients. constraints as heart often access durability. with logistics, rates people constructs centralized and scale and but CAR-T as redosing, high humanized most to Toxicity, a to for need system meaning for CAR-Ts accelerate that and with the there go in not own And is The marine or physicians patients are whole able and more most probably a access an CAR-T site lost to provide we X-day into working. constructs relapse time patients limited freezing There large cells and are priorities on use The going Durability, relapse very the use also on manage added need high the with very scale is therefore,

still but highly it's likely be and differentiator really can patients. to given have hopefully, it with how we be provide toxicity differentiator proved on hospitalization can cells is produced And that as intensive that, that, care can the at hospitals. with a a We well present reduce the as

scalable on GMP takes us transportation show point-of-care to XX, to XX-day opportunity then, there both on differentiation also days CAR-T the the days directions. is a CellPoint, with by we -- the how centralized of versus and investment. a to the that here which demonstration, if time, vein-to-vein two incubator where on an the the XX So in around gazette. can huge automated go rapid, combined using you We the see control and all right point-of-care it and efficient the scalable do us, we at moment the side, that And with release. consistently vein-to-vein. quality construct the you the seven process facility tool hospitals. that all do At vein-to-vein seven in fresh the cells production and model but is clinical freezing incubated, days course, in now there compare hospital including central for seven even trials And in up in integrated the the And allow will

platform the also a is hours as is big two of gazette, for And is very incubator. the the with done system as existing collects experienced which that, where very is And has which the and of we with now after the happening. the is quality end succeed out us in What slide. Lonza, second fully it's Cocoon of is monitors developed an whole collaboration system process. data enabler Next data. is excellent which One has CAR-T all the providing process closed released tool. CMO, production within this products it a The is the who built quality And a CellPoint which well gazette around elements.

production also multiple Abound were very side, team systems. they a as in in mark, a well is And space with also tool partnerships. of both record not is be both and ADC. very this many regulatory proven CAR-T much in very in light the compliant to experienced GMP the and infectious provided but able this a in On oncology antibodies, of type multiple antibodies FDA. for limited has needed that and And be as It's of a highly in produce environment the use you and partnerships, there, that today. a us was disease it proven manufacturing industry track brings did automated oncology multiple highly see this units extreme needed CAR-T CE with hospitals It to -- in will the type with CAR-T needs. in we

And we years. that, so which differentiated state is we three our indications different that us research team bring acquired to next goal in with will in a three allows three CAR-Ts the

year. human are with We use And we multifunctional and per multi-specific CAR-T that, their one fully capability. aiming for

We combine where we also Galapagos, have our the and antibodies conjugates that access bispecific antibody and drug biology chemistry innovating will with help at us here chemistry. to can the with

that, Phase end-to-end we oncology capabilities efficacy two going I -- hopefully so Cocoon bringing talent improved that the are it with the And relapse. on brought we study working I/IIa in. and acquisitions, in-house well. which the cancer in and The We building with quickly is with we are CAR-T and on study, strengthen new preventing with very

in the Spain enrolling and patients of the in X Part We the at are the Belgium study. moment Netherlands,

have now four robust in CLL, program. We in very enrolled a five NHL,

to the it low-to-high, include three a in that follow-up at dose extensive escalation in where patients doses produced. do is lead dose will and that we seven be expansion dose days, locally vein-to-vein, dose. XX able then where from And to trials, from with X Part we'll the give then in with at patients to completed Phase the hospitals to and we a a low very clinical is going continue We trials XX the an to results. dose data to of cohort financial Bart, to as With now the year-end. dose Thank for over get a and in it able be the would like II before low-dose conclusion pivotal I meetings that, both is the upcoming go present you. dose. finding out the the And you

Bart Filius

the to operation. Europe. everyone you, commercial and afternoon you good numbers Paul bit a be a in and on as on the with and our to Thank Friday this of well afternoon in good morning, U.S. background you and Happy give as performance in our

reminder, if the first products. as On can So go we next to slide. JYSELECA, it's a our marketed

Gilead. back the We we've are also since authorization from marketing taken holder that

ulcerative in by year. countries XX reimbursing in this arthritis now are X Europe We UC is And to we of reimbursed the countries in going the end colitis. that be majority and vast of rheumatoid anticipate Western

the level €XX were maybe second the first first until And on Germany And well. QX basically revenues of in in with additional compared that, say good few the the take this quarter good slide, year. part and the €XX drug make in Phase the guidance. lastly, quarterly actually market SOBI life fourth which the bit a got where cycle a has you year. indication So becoming more is optimistic the We There's and for quarter million realized can €XX And beginning range of next go million line in million that XXXX, countries indication on the quarter first in the where how have in straight-line 'XX from JYSELECA. performance €XX the the €XX year. a last quarter in us year hopefully of we of of year half that full at see first about extra from sales the the in in market. a we've we'll €XX of with process that now be an Actually, our quarter, in to also disease million, Europe. a it's when a of the the half is going of of growth sales. the few of the the growth that seen first I'll million the year we words in of everyone, we next a very an million clear month to second second data milestone III quarter-on-quarter the should And time been between now top as in on enable million that €XX received we've we anticipated to noteworthy seconds. to in in Crohn's a the of And reached up But extrapolation of for starting first in quarter Eastern

So the is traction. also part starting of to that business gain

that. pleased So very with

a On I UC. the on next of as the promised bit slide, detail,

German share our market in see essentially UC we left lenses. is market Here, the in what's two, on different the three in

First dynamic we the at of all, share, market look obviously.

of classes, share are terms the in is treatment but So obviously option. There, these but initiations of overall XX% are patients, that a this biologics, for noteworthy is we including small our in the and with patients is new molecules. eligible XX% actually market is not leader switch including JAKs, across category this just among

remission you So with suboptimal and truly the in therapies really on concerns this gives Still indication, persist. this the still patients to corticosteroids, a require the again the is unmet remain on UC. need what flavor rates are in right. complex reflected are to Many patients treatments as safety

in colitis. if that's And it's early the we on then, JYSELECA, further pickup ulcerative Commercial on in reflected in of that as but Germany. elements need move and And have on those also also commercial think Michele a Manto, for the financials. that's get for Germany in Officer with proposition days Chief that we is good four I the our But So I to unmet questions address side. if any obviously, very move available we even

say, should million. has is quarter for I operating Our That cash burn. our been cash for year, half the -- the burn €XXX

million a all, positive we effects. bit currency exercise the first a far in, the exclude usual, We As had couple to elements left. translation warrant there little on a of of €XX

know, against portion has euro. the balance we dollar dollars. a keep cash our in you appreciated As of The

by and highlight euros, year. at we for half We and €XX first in to million sign we able were effect which then, announcements. CellPoint report And a acquisitions, of them translation is the also the the of we moment the favorable get As actually close AboundBio.

with and the €XXX cash that and in burn €XXX second that spent that June operating cash cash of end million we million. the on was of remains So burn at the quarter the

we our cash full that by full million. year towards and Our year have cash burn €XX guidance increased burn,

We've that's brings range of €XXX increase million the we landed And now range of costs. that mentioned the of incorporate €XXX all million operating end the when our that CellPoint I would against I also some million through €X.X which a cash end At said preannounced between the Abound, €XX and additional we very of to at of €XX million. June €XX think I million. healthy June, our and at a billion. balance at acquisitions time,

and both next other million. still which long marketing and of the €XX of in both sorry, were on side. million XXXX. a highlights transactions, that there Japan the on in is the portion million, driven relating and higher operating them good milestones expenses Gilead And for quarter. well. €XXX from recognition sales then maybe on case the still for in too is The JYSELECA are are half from with On €X the slide, the big XXXX, The sales the for our XX%. €XXX year on of That's P&L. bit dwell to there I effect that revenue royalties -- costs Gilead larger revenues year the the income, no we the sharing and and of government the A but the SOBI commercial by million the the won't as that business longer then

million €XX in P&L. XXXX we to R&D and is going was OncoArendi And that we've is which with marketing the as our that result, the is first which of company. before up. of back sales impairment that of transaction impairment handed taken So line for the half relates second the which noteworthy then year molecule And a line net element, the for taken the an describing to we've Paul included

efforts is a with obviously, currency of line conclude to financial €XX million is the by then by loss a last €XX good, protect negative, I net our bottom the extent million effects. And to large income driven here slide. which Our

we Our But still of strategic review. scientific strategic start bit into reflection We the what's go our a say, later upcoming. on, the years. the year, and of when second first, give of priorities. still in midst to We're the half let's XXXX,

R&D we that this terms with there's So result in doing think, that I all to a work, more that we're the Day where are are join our be strategic future. of to U.S. the October -- for of going are on we've that in to we a review. outcome Xth but you to going update, discontinuations And about Capital organize also how number more of presentation, inviting the announced of we're this scientific Markets about and an of this holding the details give

on very were focused Abound to continues want business do very general the and believe remains to and We the do We success on JYSELECA sense. there's CellPoint a restore pipeline sure in agenda, need grow. powerful our desire obviously making also a have but we to much to developments. And the think we're transactions more execute we and to additional also

guidance already talked the be sure number €X.X for we key get want to across for there which had And we EU. in promised catalyst We reflection. develop billion make us company, for which pipeline make a as therapeutic are peak it to where sure we the those areas. sales to so later Our years, I a JYSELECA then numbers about, objectives really the is

innovation done who both And especially our more I as there, Thanks, there's on then through Q&A. that, cell X. But CAR-Ts multiple thirdly, to innovation years focus in us well. again, for come the So updates therapy R&D is as external the everyone. again, internal with a differentiated also on it on through to more guide can well. October give building through be core back us Sofie point-of-care a network to priority but with And after

Sofie Van Gijsel

Operator your ask Abrahams question line portion Thanks Instructions] today presentation RBC. of to first open conference And from [Operator to Brian from comes very much. the the That audio I call. concludes the today's for now would up operator Q&A. like

Brian Abrahams

what a I guess sort terms you could pipeline? reflects your the assets of that much bit I the to as I decision more What process? to indications looking strategy deprioritizations for in prioritize about bigger forward? of moving little you've And the focusing if this picture, what you're pipeline. continue maybe going be within in going announced you're talk asset-specific be bigger wondering you guess, some be rationale, overall of picture, you'll should more we on? forward the looking is overall an Or this for was how

Paul Stoffels

Yes.

to can create real answer a we competitive then competitive will global needs this. differentiated and we compounds medical Let how we market see is and on market then at addressing significant first, me that give very with a look value highly on -- base logic focus are value. added high-level on where but products make which the which We in

For focus. that, will focus be on you definitely, need a continue inflammation. And to our to have

technologies, and oncology, solid. you are we in indications probably expand As entered oncology specific future, into with that have to specific CAR-Ts seen we with the in to further going

molecules We in and in -- also small a have biologics are a good oncology. good building we capability

oncology careful also But So Galapagos, we, and evaluating difference molecules differentiated value a to a significant patients be can to with very again, are our bring as then which will and shareholders. make how focus.

-- limited can long-term, limited environment from validated it a of validated our highly carefully challenging are perspective, a that whether -- of no portfolio targets with challenging or validated highly to endpoints. allocation and looking a but our as fibrosis at continue evaluate capital and We is be portfolio. part continuing part -- We as to

to in earlier. look here. the not then So assets be a pipeline of 'XX-'XX we'll how timeline frame and because the goal within focus, time carefully our and earlier. We can at the area we therapeutic that at It's hope good that's look deliver

Operator

your America. comes Bank of from Gerberry of line the from Jason And question next

Jason Gerberry

on one just XXX. First

JAKX you even versus Pfizer's which in but inhibition there's of dermatomyositis. think the molecule I it's scale you anything days from on there approach early in if Just just data are to how important? how your investment is dual the Phase you your see can that year plan And you cell III as into so? their differences moving derisking not about curious talk that therapy know potentially time or pharmacological terms get I'm then needed, next dual you for differentiating over front, any important TYKX or sure approach the

Walid Abi-Saab

right. All

question then I With first on Paul. the and pass to on it XXXX

TYKX. Regarding JAKX the compound from Pfizer, that's

with showing there's this TYKX. think it JAKX profile data of some been I

in case, However, XXXX, our our a TYKX is molecule inhibitor. selective

think some I dermatomyositis profile, significant inhibition questions one very particularly interferon clear that safety will But has time, additional a element how blocking the JAK around take consideration play of same at not there's the an different to here. that into will I'm in And in the of alpha. an add in have the In we it. based inhibition. to line TYKX will Whether a clearly compound into case, Pfizer in will with again, the have be the of profile that compound shown XXXX, have risk-benefit we our judged psoriasis active from on results have the specificity right demonstrating, data.

that pharmacodynamic safety are in doses In These have we used ex-vivo pharmacodynamic to Phase demonstrated the move activity has positive have we in profile. demonstrated the assays but addition, forward on evidence I. profile seen also were electing engagement dose at we and that tolerability of and these and test

success II pass With we overall, this the about selectivity TYKX So based the study. to on positive, we our I'll that, that, with are in and Phase quite And feel our Paul. it of on particularly indication. likely proceeding

Paul Stoffels

the the CAR-T Well, with investment regard this. there over to in elements are to time, two

existing dollars market. even stable millions very can hundreds a of scalable, deploy of which that's need before we is a working where us offers start Lonza don't in we to platform the with collaboration Our

it's So with collaboration Lonza. a

-- volunteers very investment we platform now. but to patient focus development, that, think have product. provides at for new the the competitive market. But the as we us During to, validated We with and will the to order well cover in with is of development clinical time stable the moment, a that course, we on of with functions have also trials, get the CAR-Ts

scaled system attractive clinical hospitals in in have to way have of competitive very collaborate where hospitals for a We that. trials, will we a can very doing

the where will Lonza existing platform a built step in the as can with clinical on trials combination give build the ourselves the several to instrument we indications us step in capabilities well So functioning run by as parallel. we've different

think trials here can well take getting as collaboration as which this speed of clinical in we way I good us cost-effective very Lonza will with the a to space. give the

Operator

Your the of Mabbutt line next question Charlie from Bernstein. comes from

Charlie Mabbutt

I'm Charlie Mabbutt from Bernstein.

discussing II proof TYKX. of other then So different for II in I'm can hear the sort for you year-on-year And that in of they in versus And for difference R&D TYKXs, makes if to a readout concept? interested this you internally? the I line. use other firstly, if on think Phase it before also you'd are go wait what indications starting a I'm wondering trials? a the halved selective for competition Toledo the has secondly, if then And indication noticed Phase your spend the to

terms of the in program? So should this your we read in confidence into anything

Walid Abi-Saab

both take Thank -- you, Walid, three I'll questions. all It's Charlie.

see you've to FDA taken JAK the questions -- as and externally from TYKX member other inhibitors in the could that's be particular for us way family. teams deucra but our also towards the is in actually going taken regulatory TYKX we And blockade have psoriasis giving perform BMS good and way understand decide -- we of of back the PDUFA to positive read fact be interferon-driven rest We're essentially data JAKX. particularly upcoming not There another for whether interpreting process. is quite might that and disconnection from our on indications end date discussing came dermatomyositis in a reason ulcerative indication. compound. rationale as evaluating evaluating where interferon we were wait of internally bit which and we psoriasis which with in out that is the and we TYKX were inhibitors forward, pause. step data order and have colitis essentially which liberal not alpha. good looked for that environment, compound for taking did rather not the the forward, we our is We essentially the of but the for indication. disease have is a with We felt action, there success going we've TYKX rationale that that to deucra TYKX, of we'd between look hasty whether experts a why a based seen going there's on we we're the clear is September mechanism Then in whether at do And for at so be into to still pertains still with to and -- So of a out it the

is very still that screen happy lupus and lupus we to from our is see showing positive on data deucravacitinib the radar data. indication recent Another were

the overall in on in agenda. about, context with investment will as evaluating our forward talking be the lupus moving It's we discussing XXXX. been pipeline, we've with So the of

will necessarily dermatomyositis Talking discuss. will us the be to about of move but options were table for on to not forward we the results before having Toledo those We program. wait that the for

in results. I that had this to one think data in forward data of they no heard. were -- it's we with take clinical as evaluating had. that compound, that you've generated small particular, studies We we're but mixed the that have compound move secret We some need stock nature

molecule not objective positive the to We inhibitor, on we were competitive. if well. enough you ulcerative as were the with some SIKX/X had But that There psoriasis they that but have with in were achieved hypothesis. good the test data not remember, we encouraging exposures results XXXX, in measures colitis

leaders think of still were is bring I a platform. slowed it that this this. able take when the discuss I positive molecules is patients enough its down total other the to we we I fair and decision be our before. ahead been have of selectivity and and We we be understanding we risk to to think totality heterocyclic And inflammation. better the in go. late-stage role series of say going whether conclude from SIKX/X evaluate we're a able further inhibition But the will are there whether it's light to that in be appropriate platform. year evaluate go benefit actually have versus SIK or SIKX index we for the we to SIKX not to have discovery position way the forward to R&D think fully that, in to full-stream trying in should the said to to a as are And in more the if that we Having one of the will later we speak in We

So a I and with to patient more details come forward. you with we but be think the way more rationale will have little for back bit us

Operator

comes your Gordon from of question from the JPMorgan. And James next line

James Gordon

A James questions, couple Gordon JPMorgan. from of please.

was First one JYSELECA.

sales. this haven't the saw So you year's took peak but I up you guide EU increased

versus question your could up profit So is October that Can what Second So that? the overly changed as about about the X million peak think are think being about actually it's final the collaboration let's thinking for question just €XXX goes us sales Or model then for now? a all, with So R&D possibility properly? be there haven't modeling? sales to in you of consensus actually case CAR-T. higher and longer-term it could And expectations amount modeling Galapagos the end How was loans? cautious at say initial on the there was you profitability? third how we that that as the help is how that to much How of do sales. event. of

you to what in bit you're might be Is find we're assets to the about any out terms going Could we're clinical please? event, a In by you to event, that going hear elaborate at start? then there planning about? on data? have been nice new that talk significant of further to a it that to you're going what at actually things more And able is

Paul Stoffels

I got the questions. your first think of we two

not we one third could understand. The

James Gordon

data? forward there one to R&D to be trials Is what was license? significant should CMD. we about going you're is at the think it more you'll Or new about clinical third maybe to that you further the do or going assets What The event? start talking look

Paul Stoffels

Okay.

Walid Abi-Saab

a Should those questions, couple I take of Paul?

Paul Stoffels

Absolutely.

Walid Abi-Saab

So your -- sales expectation. sales peak our first question, on on peak James,

a after an great the million. early and of our by year too bit quarter full upgrade for guidance a it's think I €XX

out immediately there which So visit in we XXXX. peak then the is

a perceived this think in what are of of seeing sense we it's But in both in early. still quantitatively with how marketplace terms year, terms So the very in I of what in that's of terms too seeing sales. qualitative pleased terms are bit the we're we and obviously performance in

of and this happy we on that. cost say what between did a share of that the say, view. details to approach. announcement not that we us good Lonza, as the manufacturing believe did with centralized we But to believe position part we a would very that point with is how and as royalties I On model that the CellPoint what distribution the believe June believe that pay of and royalty that and and Actually, we between goods share that in royalty with differentiated giving the at our competitive Lonza in we're in compete But pay outcome. have the we opportunity we to that stage, others royalties that the have Hence, of think So very us we a to out I announcement is Lonza, distribution market Lonza. part will including including Lonza. of on of cost and with I June

that's we're So to Markets have the right terms that's, that But Capital far love think, I okay in details. last as I would think And go on to Day. not as answer now. you of point then the exactly now

very I think be interesting it's to going a day.

dive company of perspective really -- terms into strategy our going dermatomyositis. platform a going our terms and the I in across of of deep cell cell giving We're going going with insights the company market in give therapy JYSELECA. We're where indication also also to in around to the think we're platform thoughts do give going speakers. performance to insights go to on on external some the end We're choices. of some JYSELECA is

to be going it's think I day. So an and interesting extremely rich

Let's be do the set at beginning obviously, Day. not the Capital the five we will year. data is of when Markets and that coming from big coming next available on Crohn's, October say, yet the Therefore, up that's

Operator

comes from Stanley. question next Your the line of Matthew Morgan from Harrison

Matthew Harrison

a you wondering was us four through bit review? just the here. give of I how you you Obviously, little view are if on a portfolio compounds discontinued far could

be we And that think you've point to this should I do you we to therapeutic broad thinking of the set? made work Or do And are you thinking oncology. the obviously, additional into much sort have Should areas into how at be are? pivots know we about guess, about? more understand do secondarily, how now about pivot you Just where areas? therapeutic

Paul Stoffels

external what where we very on can opportunities bring review internal we Let business have me review the also we have but say, look internally at a extensive we moment. the in

So very biotech it short-term parallel, as us we're -- many at as looking the additional as in are goes looking opportunity portfolio assets the potential are partnerships great looking very the for now now for looking for is market and internally -- what well and strategically, evaluate prioritization companies to that. it's acquisitions a

we first we say, the are insights hopefully you. strategy, to as Day, see in on Where middle maybe key. able which on our on -- mainly yet inflammation. -- Markets and -- will And in the would in middle evaluate In internally are are have review be is fibrosis opportunities the the on we they Capital opportunities the be assets then are are not the and in will whether we'll there. in oncology if of and oncology oncology acquisition I'm And one-by-one, other and We allocation. the But focus are give this to -- both by acquisitions on assets company still moment we we'll capital we compounds inflammation let's disease select and the at long-term past, infectious in the in and the word or and next like, licensing. oncology at said looking but as review inflammation, reporting you valuable further be there of is the

Operator

comes question the from of Nadeau Phil next Cowen. from Your line

Philip Nadeau

And The the strong Galapagos' question a you areas? long-term the then specific on indications drove is this out RA of later EU second, it you how they or mentioned year. potential? review? maybe conclusion go could scenarios the coming for potential impact the bit Could opinion into specific JYSELECA's more Was that about product What review is UC on growth? what And geographic detail JYSELECA. quarter-over-quarter versus

Michele Manto

And It's Michele speaking. for then [indiscernible] to then I considerations question on there. I'll on take the in think the for pass some I'll first JYSELECA believe some conclusions quarter.

quarter. been yes, So it's a strong

at seen days variable end last first the Germany the especially the acceleration. is it the launch comes needs that had reimbursement approval for of after year. from the of that of course, And the countries You've early indication. immediately different UC this actually, But contributed, has EMA

is has compare a the different which but So now of of X.X the array at it's very a activation come now on strong acceleration full of by part to contribution course, market level geographies. Other the the with years.

those timelines fastest have timeline competitive, last countries strong so long Italy and of those So countries really benchmarks. which come in and at like and into benchmarked which with we came regional online the typically JAKs very against the reimbursement against they really the national still very Spain have year. reimbursement And is we we end

So said to units when with of transition the better also the that's countries -- say, prelaunch, course, across which the with seen Also, two, so years been engagement would the of two pleasant three planning is, and seen in we or we've Gilead from I fruition. past teams, from an to engagement country. [indiscernible]. the acceleration we've largest in through also see upcoming coming the years integration in with strong stake an lockdown the that coming customer after full period Germany the that's strongly

say strong So there that to we that dynamic is a see.

for future. for us continue also that to seeing confidence this dynamic increase the with year, the target this So brought to

position, regulatory Walid, pass you. the to I For will

Walid Abi-Saab

questions. is on the has to difficult us it's We're This working procedure Yes. their and Thanks, its Look, really to take course. with comment answering potential Michele. and a for that it EMA outcomes. collaborating

interest will very their time, PRAC on speculate of But expect process by we to feedback has to through same the end go for been potential outcomes. special really this year. a was before the for health the with be to difficult us we've been in for the and of none As then, have years it monitoring of events imagine, discussion time. you are that some These them about but can adverse authorities at surprise. and

Operator

Securities. [Operator question Jeroen next the Van Instructions] from from the line Bossche And den KBC comes of

Jeroen Van den Bossche

the strong performance. on two very Congrats questions. quick Maybe

was the your this? BD I'm you question hospital could requirements? into burn XXXX beyond? other GMP expansion still say then by communicated where, that in using more be more future, are CAR-T see advantages And that this the majority at those of the who Galapagos? to also Maybe target the percentage you the of the would that hospitals going And of approach, now a for to manage be decentralized there will obviously, do the discussed. of on legal past? knowledge, is on were activities will the the lot hospitals situation CAR-Ts is ready GMP you With And as cash Or of looking and Which Would be that materials? will the be manufacturer how setting? through

Bart Filius

Let me cash BD question, first burn. maybe Jeroen, the on the take longer-term activities for the the and implications

breakeven overview of and past still and So R&D as very a phone, everyone reminder, our that we've can And achieved on be million was in is shown And about in the XXXX envelope that were then anticipate distribution. the commercial still €XXX terms we spend million, in slides. what in that spend. those highlighting was we resulting an [ph] R&D on valid, our of for €XXX the JYSELECA

that full say go to the this right and right behind we're take say, by. if envelope expenses because I've going think we'll accordingly. that, envelope we to programs. times change. commitment to meaningful the and There that fairness, increase because sure might do in beyond in obviously that made that let's of invest I is we those the if envelope no change -- and we clear Now that make the And we BD It want obviously all not is several our might

will also projects. evolve, for we'll numbers the And that I want on or make for should follow take give then will evolves, good Obviously, guidance after on put BD XXXX we'll to Paul, to and more So we'll those obviously front. precise take And money later you sure good CAR-T? if do XXXX.

Paul Stoffels

of patients. product. marketing Galapagos -- take decentralize, a benefit the Jeroen, of very we and can proposal the responsible the No, it's will attractive as manufacturing the especially be authorization be to say, The I for you for will release holder

that. requirements a we at based -- So to the us release and check release information to allows for able quality do GMP centralized to have that, on instruments responsible system we'll hospitals can do received the on be around and the we because and will the world we from the the training be

a be is People who and there do on as So can time release just data from hours system this CellPoint. a do the and the a not integrated we us us very work give will that to to strong of will which within inspected. system manufacturing trained it proposal will within today And GMP, manages that It's we'll that. well think a frame and also of four been a with be And is strong the local -- strong a it system we the quality manufacturing train includes control has this the hospitals manufacturing. have quality what product quality fully this time. but I a in already. are as very all after that's completed But proposal release allow three, from

but responsibility authorization will we as which holder, responsible marketing in So that our the it's is -- patients receive. the are product end the for

Operator

Dane line comes And the the Raymond James. of question from Leone from next

Dane Leone

it's you, a there and like space making the portfolio us been has for in but into are what that then no And this to As kinase basis or still endeavor. the indications? Galapagos the very stated much possibilities about how And currently we feels usable for is is, very look obviously to CAR-T it's for investors, targets preview real ahead the at new are not concept in unveil and you ability question proof competitive. novel ability to with salt it days go in of Paul can the your the library R&D TYKX majority Day to and portfolio many of compound there's early and high-risk in October, just your the years and

internal is the be there assets exist, they the aggressive a really if needs differentiated think to where move not within of And company on front. more So be currently compound then needs don't the the and brought of still valuation if the I out eyes of BD to investors, there library.

So might on still I that putting your unveiled October? yet it all assets that secondly, that in what's view asset we be the one, pipeline together, differentiated additional acquisitions? then to in there's updated external what's see And guess, conviction your are

Paul Stoffels

small how insight we deep we from very because in we we'll we you CAR-T finished a will long are are our -- in of Well, going review. with internal that can on insight people and Because first a will in fast really insights you on the will CAR-Ts that prospects have. what -- whatever they results show perspective at hopefully also bring in CAR-T business have go development can where We'll to we pipeline, always differentiated. And full point-of-care certain lot both of time a and safety who we bring lines at on at Then the -- capabilities, insights We not can We are can we in bring some we'll next-gen able you on to moment an today to able we especially our yet from capabilities, and what from good and have not you they space compounds give when. into -- give in the but efficacy, from and enough a if our -- bring difficult And go pursue products a decide -- why molecule are on market give to of It's the and outside. the disclose can much will from the starting we the view on we pipeline we status can be the concluded. is competitive but which think be what a in significant insight opportunities can't on. provide also not show the very but from we results life still capabilities we that data some are efficacy insight. you as both the are see next. least is give with by And update show the biomarkers first insights study on new testing. our new we'll some give a indications we'll first strategic approaching can CAR-T, additional to there the us we to biological And to good -- partnership capabilities the interest give that as see in moment. from have

indication not be of to conclude we if give you to next to Hopefully, are be looking we'll goal. review. we'll the what an if can pipeline good we Bart, That So our is a that in to we able strategy add and give over we're from in But them. on accelerated focused very can creation strategy years. anything side? three clearly extreme give value confidence the able your deliver. them, we'll concluded, an bring But we space we're

Bart Filius

No.

Operator

of from comes today question Jefferies. Rosie the line from Turner last your And

Rosie Turner

more one if Just XXXX, on I may.

thinking about broader kind the market Just in of dermatomyositis. dynamics

how IG I in Just thinking not same because we've indication. the study Phase in reading CSL think out got the from albeit XXXX also and got Ultomiris we've coming think an that III, until about out plays

the is terms total So give size in fitting of if I'm of paradigm? of then you us just kind any size? just wondering you of where terms the the revenue see within potential And in indication kind TYKX in could of treatment

Walid Abi-Saab

and good no believe particularly on need. market alpha we of evaluated success approved one, second the take unmet So first the what's you TYKX then, a pathways maybe should see commercial element. interferon we the Michele, that maybe is mechanism space. treatment. the medical oral we space, tackle I'll the effects clear around Currently, give likelihood for on the part large When a IV, of us inhibitor, there's with in And action inhibiting that very in

competitors who haven't III, on commenting we data. moving are into seen other Phase very a II Phase think really convincing I

right in But that move these don't likelihood indications. and provide at to, be to end whether So we into we we there. compare have had remain positive disadvantage sometimes risk-benefit we'll with think of And and the the straight see data efficacy that think looked of a a companies we available this at good of that very clinical we we studies is the larger take profile to we studies. at and going success terms would can risk

we a I'll do it, on run to profile and take And that we it step have And end pass to end. Michele if we that's to risk-benefit see the first of from commercial have the positive there. for but study. We will the at then need the it

Michele Manto

Yes.

as So indicated. Walid this is need, area an of unmet high

So standard of care also quite is limited. the current

So having offers area about price some I would now timing plan interesting early. that a possibilities. be launch might build. that can this that the But of I say for say a fully an is what that's to that, bit

treatment drugs well building all in a potential set use. be the friend the high So -- are follow-up for not rate and with of value also as patient-friendly to is existing have market the which of and high to there actually terms diagnose customer

further come play able there We a share. oral numbers more be component to big the into on competition profile solid that. the will to a the also have with that role and view to So need then

Operator

now Sofie back hand will the to over remarks. I call for closing

Sofie Van Gijsel

participating we Please all much. have call. to will in-person That's October which feel as questions very hope great reach R&D day. today's had rest Thanks IR York you if still out X our in for update to we New and we Thank to a an for event. free on team at have your all the time and welcome you of have what you

Operator

for concludes Thank participating. conference you today's call. This you. Thank

You may now disconnect.

Galapagos (GLPG) 6 Aug 222022 Q2 Earnings call transcript