Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document and Entity Information [Abstract] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2019 |
Entity Registrant Name | GALAPAGOS NV |
Entity Common Stock, Shares Outstanding | 64,666,802 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Central Index Key | 0001421876 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Consolidated Statement of Finan
Consolidated Statement of Financial Position € in Thousands, $ in Millions | Dec. 31, 2019EUR (€) | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) |
Assets | |||
Intangible assets | € 24,927 | € 3,632 | € 2,495 |
Property Plant And Equipment Carrying Amount Total | 66,052 | 23,137 | 16,692 |
Deferred tax assets | 4,205 | 2,514 | 1,978 |
Non-current R&D incentives receivables | 93,407 | 73,443 | 64,001 |
Other non-current assets | 14,091 | 7,919 | 3,461 |
Non-current assets | 202,682 | 110,645 | 88,627 |
Trade and other receivables | 54,009 | 18,609 | 27,966 |
Current R&D incentives receivables | 21,949 | 11,203 | 11,782 |
Current financial investments | 3,919,216 | ||
Cash and cash equivalents | 1,861,616 | 1,290,796 | 1,151,211 |
Other current assets | 9,138 | 8,244 | 6,688 |
Current assets | 5,865,927 | 1,328,851 | 1,197,647 |
Total assets | 6,068,609 | 1,439,496 | 1,286,274 |
Equity and liabilities | |||
Share capital | 287,282 | 236,540 | 233,414 |
Share premium account | 2,703,583 | 1,277,780 | 993,025 |
Other reserves | (4,842) | (735) | (1,260) |
Translation differences | (1,142) | (1,557) | (1,754) |
Accumulated losses | (109,223) | (297,779) | (211,441) |
Total equity | 2,875,658 | 1,214,249 | 1,011,983 |
Retirement benefit liabilities | 8,263 | 3,764 | 3,582 |
Non-current lease liabilities | 19,558 | ||
Other non-current liabilities | 6,989 | 1,578 | 1,662 |
Non-current deferred income | 2,586,348 | 97,348 | |
Non-current liabilities | 2,621,158 | 5,342 | 102,592 |
Current lease liabilities | 5,826 | 9 | |
Trade and other liabilities | 143,434 | 68,928 | 48,281 |
Current tax payable | 2,037 | 1,175 | 865 |
Current financial instruments | 6,198 | ||
Current deferred income | 414,298 | 149,801 | 122,544 |
Current liabilities | 571,793 | 219,905 | 171,699 |
Total liabilities | 3,192,951 | 225,247 | 274,291 |
Total equity and liabilities | € 6,068,609 | € 1,439,496 | € 1,286,274 |
Consolidated Statement of Opera
Consolidated Statement of Operations - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated Statement of Operations | |||
Revenues | € 844,985 | € 288,836 | € 127,087 |
Other income | 50,905 | 29,009 | 28,830 |
Total revenues and other income | 895,890 | 317,845 | 155,918 |
Research and development expenses | (427,320) | (322,875) | (218,502) |
General and administrative expenses | (73,701) | (35,631) | (24,415) |
Sales and marketing expenses | (24,577) | (4,146) | (2,803) |
Total operating expenses | (525,597) | (362,652) | (245,720) |
Operating income/loss (-) | 370,292 | (44,807) | (89,802) |
Fair value re-measurement of share subscription agreement and warrants | (181,644) | ||
Other financial income | 21,482 | 18,335 | 4,877 |
Other financial expenses | (60,071) | (2,737) | (30,582) |
Income/loss (-) before tax | 150,060 | (29,209) | (115,507) |
Income taxes | (214) | (50) | (198) |
Net income/loss (-) | 149,845 | (29,259) | (115,704) |
Net income/loss (-) attributable to: Owners of the parent | € 149,845 | € (29,259) | € (115,704) |
Basic income/loss (-) per share | € 2.60 | € (0.56) | € (2.34) |
Diluted income/loss (-) per share | € 2.49 | € (0.56) | € (2.34) |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income/Loss - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated Statement of Comprehensive Income/Loss | |||
Net income/loss (-) | € 149,845 | € (29,259) | € (115,704) |
Items that will not be reclassified subsequently to profit or loss: | |||
Re-measurement of defined benefit obligation | (4,107) | (94) | (40) |
Items that may be reclassified subsequently to profit or loss: | |||
Fair value adjustment of financial assets available-for-sale | (220) | ||
Translation differences, arisen from translating foreign activities | 415 | 197 | (664) |
Other comprehensive income/loss (-), net of income tax | (3,692) | 103 | (924) |
Total comprehensive income/loss (-) attributable to: Owners of the parent | € 146,154 | € (29,155) | € (116,629) |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - EUR (€) € in Thousands | Share capital.Warrant AGilead | Share capital. | Share premium accountWarrant AGilead | Share premium account | Translation differences | Other reserves | Accumulated losses | Warrant AGilead | Total |
Balance at beginning of period at Dec. 31, 2016 | € 223,928 | € 649,135 | € (1,090) | € (1,000) | € (112,272) | € 758,701 | |||
Net income/loss (-) | (115,704) | (115,704) | |||||||
Other comprehensive income / loss (-) | (664) | (260) | (924) | ||||||
Total comprehensive income / loss (-) | (664) | (260) | (115,704) | (116,629) | |||||
Share-based compensation | 16,536 | 16,536 | |||||||
Issue of new shares | 23,331 | 340,593 | 363,924 | ||||||
Share issue costs | (15,837) | (15,837) | |||||||
Exercise of warrants | 1,992 | 3,296 | 5,288 | ||||||
Balance at end of period at Dec. 31, 2017 | 233,414 | 993,025 | (1,754) | (1,260) | (211,441) | 1,011,983 | |||
Restated total equity at January 1 | 233,414 | 993,025 | (1,754) | (641) | (295,280) | 928,766 | |||
Change in accounting policy (IFRS 15) at Dec. 31, 2017 | (83,220) | (83,220) | |||||||
Change in accounting policy (IFRS 9) at Dec. 31, 2017 | 619 | (619) | |||||||
Net income/loss (-) | (29,259) | (29,259) | |||||||
Other comprehensive income / loss (-) | 197 | (94) | 103 | ||||||
Total comprehensive income / loss (-) | 197 | (94) | (29,259) | (29,155) | |||||
Share-based compensation | 26,757 | 26,757 | |||||||
Issue of new shares | 16,021 | 280,167 | 296,188 | ||||||
Share issue costs | (15,964) | (15,964) | |||||||
Exercise of warrants | 3,069 | 4,588 | 7,657 | ||||||
Balance at end of period at Dec. 31, 2018 | 236,540 | 1,277,780 | (1,557) | (735) | (297,779) | 1,214,249 | |||
Restated total equity at January 1 | 236,540 | 1,277,780 | (1,557) | (735) | (297,363) | 1,214,665 | |||
Change in accounting policy (IFRS 16) at Dec. 31, 2018 | 416 | 416 | |||||||
Net income/loss (-) | 149,845 | 149,845 | |||||||
Other comprehensive income / loss (-) | 415 | (4,107) | (3,692) | ||||||
Total comprehensive income / loss (-) | 415 | (4,107) | 149,845 | 146,154 | |||||
Share-based compensation | 38,297 | 38,297 | |||||||
Derecognition of financial liability from share subscription agreement and warrant A | 135,702 | 135,702 | |||||||
Issue of new shares | 36,945 | 923,142 | 960,087 | ||||||
Share issue costs | (4,447) | (4,447) | |||||||
Exercise of warrants | € 14,162 | 4,082 | € 353,873 | 13,085 | € 368,035 | 17,167 | |||
Balance at end of period at Dec. 31, 2019 | € 287,282 | € 2,703,583 | € (1,142) | € (4,842) | € (109,223) | € 2,875,658 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows € in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019EUR (€) | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net income/loss (-) | € 149,845 | € (29,259) | € (115,704) |
Adjustment for non-cash transactions | 248,027 | 21,753 | 48,301 |
Adjustment for items to disclose separately under operating cash flow | (7,731) | (4,389) | (1,912) |
Adjustment for items to disclose under investing and financing cash flows | (5,061) | (668) | |
Change in working capital other than deferred income | 12,698 | 19,922 | (12,862) |
Increase / decrease (-) in deferred income | 2,804,202 | (153,312) | (65,722) |
Cash generated/used (-) in operations | 3,201,980 | (145,953) | (147,899) |
Interest paid | (1,158) | (1,063) | (273) |
Interest received | 7,852 | 4,558 | 1,341 |
Income taxes paid | (57) | (8) | (199) |
Net cash flows generated/used (-) in operating activities | 3,208,617 | (142,466) | (147,030) |
Purchase of property, plant and equipment | (22,385) | (10,392) | (5,312) |
Purchase of and expenditure in intangible fixed assets | (23,300) | (3,325) | (2,125) |
Proceeds from disposal of intangible assets | 1 | ||
Proceeds from disposal of property, plant and equipment | 7 | ||
Increase in current financial investments | (4,787,284) | ||
Interest received related to current financial investments | 5,059 | ||
Decrease in current financial investments | 1,063,344 | ||
Decrease in restricted cash | 6,510 | ||
Acquisition of financial assets held at fair value through profit or loss | (177) | (4,559) | |
Proceeds from sale of financial assets held at fair value through profit or loss | 82 | 2,361 | 372 |
Net cash flows used in investing activities | (3,764,660) | (15,914) | (549) |
Payment of lease liabilities and other debts | (5) | (65) | |
Payment of lease liabilities and other debts | (5,091) | ||
Proceeds from capital and share premium increases, gross amount | 960,087 | 296,188 | 363,924 |
Issue cost paid, related to capital and share premium increases | (4,447) | (15,964) | (15,790) |
Proceeds from capital and share premium increases from exercise of warrants | 17,167 | 7,657 | 5,288 |
Net cash flows generated in financing activities | 1,335,751 | 287,876 | 353,357 |
Increase in cash and cash equivalents | 779,708 | 129,497 | 205,779 |
Cash and cash equivalents at beginning of year | 1,290,796 | 1,151,211 | 973,241 |
Transfer to current financial investments | (198,922) | ||
Effect of exchange rate differences on cash and cash equivalents | (9,966) | 10,089 | (27,808) |
Cash and cash equivalents at end of year | 1,861,616 | € 1,290,796 | € 1,151,211 |
Warrant A | Gilead | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Proceeds from capital and share premium increases from exercise of warrants | € 368,035 |
Consolidated Statement of Cas_2
Consolidated Statement of Cash Flows, Current Financial Investments € in Thousands, $ in Millions | Dec. 31, 2019EUR (€) | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) |
Consolidated Statement of Cash Flows | |||
Current financial investments. | € 3,919,216 | ||
Cash and cash equivalents | 1,861,616 | € 1,290,796 | € 1,151,211 |
Current financial investments and cash and cash equivalents | € 5,780,832 | € 1,290,796 | € 1,151,211 |
General information
General information | 12 Months Ended |
Dec. 31, 2019 | |
General information. | |
General information | Notes to Consolidated Financial Statements 1. General information Galapagos NV is a limited liability company incorporated in Belgium and has its registered office at Generaal De Wittelaan L11 A3, 2800 Mechelen, Belgium. In the notes to the consolidated financial statements, references to “we,” “us,” “the group” or “Galapagos” include Galapagos NV together with its subsidiaries. R&D The research and development (“R&D”) operations are specialized in the discovery and development of small molecules. Our ambition is to become a leading global biotechnology company focused on the development and commercialization of novel medicines. Our strategy is to leverage our unique and proprietary target discovery platform, which facilitates our discovery and development of therapies with novel modes of action. The components of the operating result presented in the financial statements include the following companies: Galapagos NV, Galapagos Biopharma Belgium BV, Galapagos Real Estate 1 BV and Galapagos Real Estate 2 BV (Mechelen, Belgium); Galapagos SASU (Romainville, France); Galapagos B.V., Galapagos Biopharma Netherlands B.V. and Galapagos Real Estate Netherlands B.V. (Leiden, the Netherlands); Fidelta d.o.o. (Zagreb, Croatia); Galapagos, Inc. and its subsidiary Xenometrix, Inc. (United States); BioFocus DPI AG and Galapagos GmbH (Basel, Switzerland); Galapagos Biotech Ltd. (Cambridge, UK), Galapagos Biopharma Germany GmbH (München, Germany), Galapagos Biopharma Spain S.L.U. (Madrid, Spain) and Galapagos Biopharma Italy S.r.l. (Milan, Italy). Our operations had 1,003 employees as at December 31, 2019 working in the operating facilities in Mechelen (the Belgian headquarters), the Netherlands, France, Croatia, Switzerland, the United States and United Kingdom. |
Summary of significant transact
Summary of significant transaction | 12 Months Ended |
Dec. 31, 2019 | |
Summary of significant transaction | |
Summary of significant transaction | 2. Summary of significant transaction On July 14, 2019 we and Gilead announced that we had entered into a 10-year global research and development collaboration. Through this agreement, Gilead gained exclusive access to our innovative portfolio of compounds, including six molecules currently in clinical trials, more than 20 preclinical programs and a proven drug discovery platform. The transaction was subject to certain closing conditions, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and receipt of merger control approval from the Austrian Federal Competition Authority. On August 23, 2019 all approvals were obtained and the transaction was closed. We received an upfront payment €3,569.8 million ($3.95 billion) and a €960.1 million ($1.1 billion) equity investment from Gilead. On November 6, 2019 Gilead exercised warrant A, which resulted in an additional equity investment of €368.0 million. We will use the proceeds to expand and accelerate our research and development programs. We identified the following three performance obligations: (i) the transfer of an extended license on GLPG1690, (ii) the granting of exclusive access to our drug discovery platform (i.e. the IP, technology, expertise and capabilities) during the collaboration period and exclusive option rights on our current and future clinical programs after Phase 2 (or, in certain circumstances, the first Phase 3 study) outside Europe and (iii) an increased cost share from 20/80 to 50/50 on the global development activities of filgotinib, until we reach the new, increased, joint predetermined level of costs, as a result of the revised license and collaboration agreement. As part of the collaboration, Gilead also received option rights for GLPG1972, a Phase 2b candidate for osteoarthritis, in the United States. We refer to the Critical accounting judgments and key sources of estimation uncertainty section (note 4) explaining critical judgments in applying accounting policies. Gilead also proposed two individuals for our board of directors, which were nominated during the special general meeting of shareholders of October 22, 2019. Terms of the collaboration We will fund and lead all discovery and development autonomously until the end of Phase 2. After the completion of a qualifying Phase 2 study (or, in certain circumstances, the first Phase 3 study), Gilead will have the option to acquire a license to the compound outside Europe. If the option is exercised, we and Gilead will co-develop the compound and share costs equally. Gilead will maintain option rights to our programs through the 10-year term of the collaboration. This term can be extended for up to an additional three years thereafter for those programs, if any, that have entered clinical development prior to the end of the collaboration term. On top, a final term extension can be granted in certain circumstances. If GLPG1690 is approved in the United States, Gilead will pay us an additional $325 million regulatory milestone fee. For GLPG1972, after the completion of the ongoing Phase 2b study in osteoarthritis, Gilead has the option to pay a $250 million fee to license the compound in the United States. If certain secondary efficacy endpoints for GLPG1972 are met, Gilead will pay us up to an additional $200 million. Following opt-in on GLPG1972, we are eligible to receive up to $550 million in regulatory and sales based milestones. For all other programs resulting from the collaboration, Gilead will make a $150 million opt-in payment per program and will owe no subsequent milestones. We will receive tiered royalties ranging from 20-24% on net sales of all our products licensed by Gilead in all countries outside Europe as part of the agreement. Filgotinib collaboration Under the revised agreement, we will have greater involvement in filgotinib’s global strategy and participate more broadly in the commercialization of the product in Europe, providing the opportunity to build a commercial presence on an accelerated timeline. We and Gilead will co-commercialize filgotinib in France, Germany, Italy, Spain and the United Kingdom and retain the 50/50 profit share in these countries that was part of the original filgotinib license agreement, and under the revised agreement, we will have an expanded commercial role. We will be the lead commercialization party for filgotinib in France, Italy and Spain for rheumatology indications and Gilead will be the lead commercialization party for gastro indications. In Germany and the United Kingdom, Gilead will lead the rheumatology indications and Galapagos will lead the gastro indications. We retain exclusive commercialization responsibility in Belgium, the Netherlands and Luxembourg, where the 50/50 profit share also applies. The companies will share future global development costs for filgotinib equally until a predetermined level, in lieu of the 80/20 cost split provided by the original agreement. Other terms of the original license agreement remain in effect, including the remaining $640 million in development and regulatory milestones , sales-based milestone payments of up to $600 million and tiered royalties ranging from 20-30% payable in territories outside of Belgium, France, Germany, Italy, Luxembourg, the Netherlands, Spain and the United Kingdom. In addition, we achieved two milestones in December 2019 totaling $30 million. Terms of the equity investment As part of the research and development collaboration Gilead also entered into a share subscription agreement with us. Gilead’s equity investment consisted of a subscription for new Galapagos shares at a price of €140.59 per share, representing at July 14, 2019 a 20% premium to Galapagos’ 30-day, volume-weighted average price. This equity subscription took place at closing of the transaction, on August 23, 2019 and increased Gilead’s stake in Galapagos from approximately 12.3% to 22.04% of the then issued and outstanding shares in Galapagos. In addition, the extraordinary general meeting of shareholders of October 22, 2019 approved the issuance of warrant A and initial warrant B allowing Gilead to further increase its ownership of Galapagos to up to 29.9% of the company’s issued and outstanding shares. The initial warrant B has a term of five years and an exercise price per share equal to the greater of (i) 120% multiplied by the arithmetic mean of the 30-day daily volume weighted average trading price of Galapagos’ shares as traded on Euronext Brussels and Euronext Amsterdam, and (ii) EUR 140.59. Subsequent warrant B is still subject to approval by an extraordinary general meeting of shareholders. This extraordinary general meeting of shareholders shall take place between 57 and 59 months of the closing of the subscription agreement and this warrant will have substantially similar terms, including as to exercise price, to the initial warrant B. The agreement also includes a 10-year standstill restricting Gilead’s ability to propose a business combination with or acquisition of Galapagos or increase its stake in Galapagos beyond 29.9% of the company’s issued and outstanding shares, subject to limited exceptions. On November 6, 2019 Gilead exercised warrant A and increased its ownership in Galapagos to 25.10% of the then outstanding shares. Gilead further increased its ownership to 25.84% at December 31, 2019. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2019 | |
Significant accounting policies | |
Significant accounting policies | 3. Significant accounting policies Our principal accounting policies are summarized below. BASIS OF PREPARATION AND GOING CONCERN ASSUMPTION The consolidated financial statements are prepared in accordance with the International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board (IASB) and the interpretations issued by the IASB’s International Financial Reporting Interpretation Committee. The consolidated financial statements provide a general overview of our activities and the results achieved. They give a true and fair view of our financial position, our financial performance and cash flows, on a going concern basis. NEW STANDARDS AND INTERPRETATIONS APPLICABLE FOR THE ANNUAL PERIOD BEGINNING ON JANUARY 1, 2019 ▪ IFRS 16 Leases The above new applicable standard affected the consolidated financial statements as follows: IFRS 16 Leases We adopted IFRS 16 on January 1, 2019, in accordance with the transitional provisions of IFRS 16, using the modified retrospective approach. Consequently, the cumulative effect of adopting IFRS 16 was recognized as an adjustment to the opening balance of retained earnings as at January 1, 2019, with no restatement of the comparative figures. On adoption of IFRS 16, we recognized lease liabilities in relation to leases which had previously been classified as ‘operating leases’ under IAS 17. These liabilities were measured at the present value of the remaining lease payments and discounted using our incremental borrowing rate as of January 1, 2019. Our weighted average incremental borrowing rate applied to the lease liabilities on January 1, 2019 was 1.55%. The differences between our total operating lease commitments as reported in note 26 of our consolidated financial statements of December 31, 2018 and the total lease liabilities recognized in our statement of financial position as at January 1, 2019 are summarized below. (Euro, in thousands) Operating lease commitments disclosed as at December 31, 2018 € 27,704 Less : discounting effect using the lessee's incremental borrowing rate at the date of initial application (1,223) Less : other (569) Lease liability recognized as at January 1, 2019 25,912 Of which are : current lease liabilities 4,516 non-current lease liabilities € 21,396 The change in accounting policy affected the statement of financial position as at January 1, 2019 as follows: January 1, 2019 (Euro, in thousands) Property, plant and equipment (right-of-use assets) € 26,406 Other current assets (prepaid expenses) (494) Effect on total assets 25,912 Accumulated losses 416 Lease liabilities (current and non-current) 25,912 Deferred income (416) Effect on total equity and liabilities € 25,912 We applied the following practical expedients, as permitted by IFRS 16, on transition date: ▪ Reliance on the previous definition of a lease (as provided by IAS 17) for all contracts that existed on the date of initial application; ▪ The use of a single discount rate to a portfolio of leases with reasonably similar characteristics; ▪ Reliance on previous assessments on whether leases are onerous instead of performing an impairment review; ▪ The accounting for operating leases with a remaining lease term of less than 12 months as at January 1, 2019 as short-term leases; ▪ No recognition of right-of-use assets and liabilities for leases of low value assets. We refer to our updated accounting policy on leases as a result of the adoption of IFRS 16. Other new standards and interpretations applicable for the annual period beginning on January 1, 2019 did not have any impact on our consolidated financial statements. NEW STANDARDS AND INTERPRETATIONS APPLIED FOR THE ANNUAL PERIOD BEGINNING ON JANUARY 1, 2018 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 IFRS 15 on January 1, 2018, our consolidated accumulated losses and deferred income were both increased by €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 note 6 “Total revenues and other income” for further detail. The impact of the adoption of IFRS 15 on the consolidated financial statements for the year ended December 31, 2018 is detailed in the table below and is due to changes in the accounting policy for revenue recognition compared to prior accounting standards. (Euro, in thousands, except per share data) Statement of operations Year ended December 31, 2018 As reported Balances in accordance with IAS 18 Effect of change higher / lower (-) Revenues € 288,836 € 232,800 € 56,036 Loss before tax (29,209) (85,245) 56,036 Income taxes (50) (50) — Net loss € (29,259) € (85,295) € 56,036 Basic & diluted loss per share € (0.56) € (1.64) € 1.08 Statement of financial position December 31, 2018 Deferred income € 149,801 € 122,617 € 27,184 Accumulated losses € (297,779) € (270,595) € (27,184) IFRS 9 Financial Instruments The only financial instrument held by the group subject to change in accounting treatment following the adoption of IFRS 9 – Financial Instruments, was the equity investment in a listed company classified as an 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 IFRS 9 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 or loss, the cumulative fair value loss of €0.6 million previously recognized in other comprehensive income was reclassified to accumulated losses. Other new standards and interpretations applicable for the annual period beginning on January 1, 2018 did not have any impact on our consolidated financial statements. STANDARDS AND INTERPRETATIONS PUBLISHED, BUT NOT YET APPLICABLE FOR THE ANNUAL PERIOD BEGINNING ON JANUARY 1, 2019 A number of new standards are effective for annual periods beginning on or after January 1, 2020 with earlier adoption permitted. However we have not early adopted new or amended standards in preparing our consolidated financial statements. Of the standards that are not yet effective, we expect no standard to have a material impact on our financial statements in the period of initial application. · IFRS 17 Insurance contracts (applicable for annual periods beginning on or after January 1, 2021, but not yet endorsed in the EU) · Amendments to References to the Conceptual Framework in IFRS Standards (applicable for annual periods beginning on or after January 1, 2020) · Definition of a Business (Amendments to IFRS 3) (applicable for annual periods beginning on or after January 1, 2020, but not yet endorsed in the EU) · Definition of Material (Amendments to IAS 1 and IAS 8) (applicable for annual periods beginning on or after January 1, 2020) · Amendments to IFRS 9, IAS 39 and IFRS 7: Interest Rate Benchmark Reform (applicable for annual periods beginning on or after January 1, 2020) · Amendments to IAS 1 Presentation of Financial Statements: Classification of liabilities as current or non-current (applicable for annual periods beginning on or after January 1, 2022, but not yet endorsed in the EU) CONSOLIDATED REPORTING The consolidated financial statements comprise the financial statements of Galapagos NV and entities controlled by Galapagos NV. Control is achieved where Galapagos NV has the power to direct the relevant activities of another entity so as to obtain benefits from its activities. The results of subsidiaries are included in the statement of operations and statement of comprehensive income from the effective date of acquisition up to the date when control ceases to exist. Where necessary, adjustments are made to the financial statements of subsidiaries to ensure consistency with our accounting policies. All intra-group transactions, balances, income and expenses are eliminated when preparing the consolidated financial statements. INTANGIBLE ASSETS Expenditure on research activities is recognized as an expense in the period in which it is incurred. An internally generated intangible asset arising from our development activities is recognized only if all of the following conditions are met: · Technically feasible to complete the intangible asset so that it will be available for use or sale · We have the intention to complete the intangible assets and use or sell it · We have the ability to use or sell the intangible assets · The intangible asset will generate probable future economic benefits, or indicate the existence of a market · Adequate technical, financial and other resources to complete the development are available · We are able to measure reliably the expenditure attributable to the intangible asset during its development The amount capitalized as internally generated intangible assets is the sum of the development costs incurred as of the date that the asset meets the conditions described above. Because of risks and uncertainties inherent to the regulatory authorizations and to the development process itself, management estimates that the conditions for capitalization are not met until we obtain regulatory approval from the competent authorities. Currently we don’t own products that have obtained regulatory approval and this has resulted in all development costs being recognized as an expense in the period in which they are incurred. Intellectual property, which comprises patents, licenses and rights, is measured internally at purchase cost and is amortized on a straight-line basis over the estimated useful life as from the time they are available for use, generally on the following bases: · Customer relationships: 1–10 years · In process technology: 3–5 years · Software & databases: 3–5 years · Brands, licenses, patents & know how: 5–15 years In the event an asset has an indefinite life, this fact is disclosed along with the reasons for being deemed to have an indefinite life. Intangible assets with an indefinite usefull life and intangible assets which are not yet available for use are tested for impairment annually, and whenever there is an indication that the asset might be impaired. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are recognized at cost less accumulated depreciation and any impairment loss. Depreciation is recognized so as to write off the cost of assets over their useful lives, using the straight-line method, on the following bases: · Installation & machinery: 3–15 years · Furniture, fixtures & vehicles: 4–10 years Any gain or loss incurred at the disposal of an asset is determined as the difference between the sale proceeds and the carrying amount of the asset, and is recognized in profit or loss. LEASEHOLD IMPROVEMENTS Leasehold improvements are depreciated over the term of the lease, unless a shorter useful life is expected. FINANCIAL INSTRUMENTS Financial assets and financial liabilities are recognized on our balance sheet when we become a party to the contractual provisions of the instrument. We do not actively use currency derivatives to hedge planned future cash flows, nor do we make use of forward foreign exchange contracts, outside of the Gilead transaction, fully settled at December 31, 2019. Additionally, we don’t have financial debts at December 31, 2019. (i) Financial assets Financial assets are initially recognized either at fair value or at their transaction price. All recognized financial assets will subsequently be measured at either amortized cost or fair value under IFRS 9 on the basis of both our business model for managing the financial assets and the contractual cash flow characteristics of the financial asset. · a financial asset that (i) is held within a business model whose objective is to collect the contractual cash flows and (ii) has contractual cash flows that are solely payments of principal and interest on the principal amount outstanding is measured at amortized cost (net of any write down for impairment), unless the asset is designated at fair value through profit or loss (FVTPL) under the fair value option; · a financial asset that (i) is held within a business model whose objective is achieved both by collecting contractual cash flows and selling financial assets and (ii) has contractual terms that give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding, is measured at fair value through other comprehensive income (FVTOCI), unless the asset is designated at FVTPL under the fair value option; · all other financial assets are measured at FVTPL. A financial asset is classified as current when the cash flows expected to flow from the instrument mature within one year. We derecognize a financial asset when the contractual rights to the cash flows from the asset expire, or we transfer the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. We classify non-derivative financial assets into the following categories: - - Financial assets at fair value through profit or loss Financial assets are designated at fair value through profit or loss if we manage such investments and make purchase and sale decisions based on their fair value in accordance with the our investment strategy. Attributable transaction costs are recognized in profit or loss as incurred. Financial assets at fair value through profit or loss are measured at fair value, and changes therein, which take into account any dividend income, are recognized in profit or loss. Equity instruments We hold investments in equity instruments, which based on IFRS 9, are designated as financial assets at fair value through profit or loss, which qualify for level 1 fair value measurement based upon the closing price of such securities on Euronext at each reporting date. Current financial investments Current financial investments include financial assets measured at fair value through profit or loss and comprise short term bond funds that have a maturity equal or less than 12 months, and money market funds. Cash equivalents measured at fair value through profit or loss Cash equivalents measured at fair value through profit or loss may comprise short-term deposits, bonds and money market funds that are readily convertible to cash and are subject to an insignificant risk of changes in value. These financial assets are used by us in the management of our short-term commitments. Financial assets at amortized cost Receivables Receivables are designated as financial assets measured at amortized cost. They are initially measured either at fair value or at transaction price, in the absence of a significant financing component. All receivables are subsequently measured in the balance sheet at amortized cost, which generally corresponds to nominal value less expected credit loss provision. Receivables mainly comprise trade and other receivables and current/non-current R&D incentives receivables. The R&D incentives receivables relate to refunds resulting from R&D incentives on research and development expenses in France and Belgium. Research and development incentives receivables are discounted over the period until maturity date according to the appropriate discount rates. Cash Cash are financial assets measured at amortized cost and comprise cash balances and short-term deposits with maturities of three months or less from the acquisition date that are subject to an insignificant risk of changes in their value and are used by us in the management of our short-term commitments. Cash equivalents measured at amortized costs Cash equivalents measured at amortized cost comprise short-term deposits that are readily convertible to cash and are subject to an insignificant risk of changes in value. These financial assets are used by us in the management of our short-term commitments. Cash and cash equivalents exclude restricted cash, which is presented in the line other non-current assets in the statement of financial position. (ii) Financial liabilities Financial liabilities are initially measured either at fair value or at their transaction price. Subsequent to initial recognition, financial liabilities are measured at amortized cost. Financial liabilities mainly comprise trade and other liabilities. Trade and other liabilities are comprised of liabilities that are due less than one year from the balance sheet date and are in general not interest bearing and settled on an ongoing basis during the financial year. They also include accrued expense related to our research and development project costs. We derecognize a financial liability when its contractual obligations are discharged, cancelled or expire. (iii) Financial instruments: derivative assets/liabilities Financial assets and financial liabilities are recognized on our balance sheet when we become a party to the contractual provisions of the instrument. Derivative assets and liabilities are initially measured at fair value. After initial measurement we will measure the derivatives at fair value through profit or loss. TAXATION Income tax in the profit or loss accounts represents the sum of the current tax and deferred tax. Current tax is the expected tax payable on the taxable profit of the year. The taxable profit of the year differs from the profit as reported in the financial statements as it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. Our liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred income tax is provided in full, using the liability-method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. However, the deferred income tax is not accounted for if it arises from the initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit nor loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. Deferred tax assets are recognized to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. As such, a deferred tax asset for the carry forward of unused tax losses will be recognized to the extent that is probable that future taxable profits will be available. FOREIGN CURRENCIES · Functional and presentation currency Items included in the financial statements of each of our entities are valued using the currency of the primary economic environment in which the entity operates. The consolidated financial statements are presented in Euros, which is our presentation currency. · Transactions and balances in foreign currency Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of transaction. We use monthly transaction rates based on the closing exchange rates of the foreign currencies on the last business day of the month preceding the date of the transaction. Foreign currency gains and losses resulting from the settlement of such transactions and from the translation at closing rates of monetary assets and liabilities denominated in foreign currencies are recognized in the financial result in the statement of operations. Non-monetary assets and liabilities measured at historical cost that are denominated in foreign currencies are translated using the exchange rate at the date of the transaction. · Financial statements of foreign group companies The results and financial position of all our entities that have a functional currency different from Euro are translated as follows: · Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet; · Income and expenses for each statement of operations are translated at average exchange rates; · All resulting cumulative exchange differences are recognized as a separate component of equity; · Such cumulative exchange differences are recognized in profit or loss in the period in which the foreign operation is disposed of. RECOGNITION OF EXPENSES LINKED TO CLINICAL TRIAL MILESTONES We recognize expenses specifically linked to clinical trial milestones with regard to patient recruitment and patient treatment (i.e. completion), incurred in carrying out clinical trials, in line with actual patient recruitment or treatment at each period end, in reference to the milestone targets for patient recruitment or treatment. This involves the calculation of clinical trial accruals at each period end, for which an estimation of the expected full clinical trial milestone cost is required, as well as the current stage of patient recruitment or treatment. Clinical trials usually take place over extended time periods and typically involve a set-up phase, a recruitment phase and a completion phase which ends upon the receipt of a final report containing full statistical analysis of trial results. Accruals for patient recruitment and patient completion are prepared separately for each clinical trial in progress and take into consideration the stage of completion of each trial including the number of patients that have entered the trial and the number of patients that have been treated in the trial. In all cases, the full cost of each trial is expensed by the time the final report is received. REVENUE RECOGNITION Revenues to date have consisted principally of milestones, license fees and non-refundable upfront fees received in connection with collaboration and license agreements. We also generate revenue from our fee-for-service activities. The revenue recognition policies can be summarized as follows: We recognize revenue when our customer obtains control of promised goods or services, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. To determine revenue recognition for agreements that we determine are within the scope of IFRS 15, we perform the following five steps: (i) identify the contract In our current agreements with customers we are mainly transferring licenses on our IP and in some cases this is combined with access rights and/or providing research and development services and/or cost sharing mechanisms. In some cases our collaborations also include an equity subscription component. If this is the case, we analyze if the criteria to combine contracts, as set out by IFRS 15, are met. (ii) identify the performance obligations in the contract Depending on the type of the agreement, there can be one or more distinct performance obligations under IFRS 15. This is based on an assessment of whether the promises in an agreement are capable of being distinct and are distinct from the other promises to transfer goods and/or services in the context of the contract. For some of our agreements we combine the transfer of the license with the performance of research and development activities because we consider that the license is not capable of being distinct and is not distinct in the context of the contract. (iii) determine the transaction price Collaboration and license agreements with our commercial partners for research and development activities generally include non-refundable upfront fees; milestone payments, the receipt of which is dependent upon the achievement of certain clinical, regulatory or commercial milestones; license fees, royalties on sales and sometimes reimbursement income or profits sharing arrangements. a/ License fees or upfront payments If the license to our intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, we recognize revenues from non-refundable upfront fees allocated to the license at the point in time the license is transferred to the customer and the customer has the right to use the license. For licenses that are bundled with other promises, we utilize judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time. If over time, revenue is then recognized based on a pattern that best reflects the transfer of control of the service to the customer. b/ Milestone Payments other than sales based milestones A milestone payment is only included in the transaction price to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved . We estimate the amount to be included in the transaction price using the most likely amount method, where milestone payments are included in the transaction price upon achievement of the milestone event . The transaction price is then allocated to each performance obligation on a stand-alone selling price basis, for which we recognize revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, we re-evaluate the probability of achievement of such milestones and any related constraint, and if necessary, adjust our estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect revenue and earnings in the period of adjustment. c/ Reimbursement Income for R&D Services Collaboration and license agreements may include reimbursement or cost sharing for research and development services: such as outsourcing costs and payment for FTEs at contractual rates. R&D services are performed and satisfied over time given that the customer simultaneously receives and consumes the benefits provided by us. Such costs reimbursements received are recognized in revenues when costs are incurred and agreed by the parties when we are acting as a principal in the scope of our stake of the R&D activities. If the later condition is not fulfilled, costs reimbursements are accounted for as a decrease of the related expenses. d/ Sales based milestone payment and Royalties License and collaboration agreements include sales-based royalties, including commercial milestone payments based on the level of sales, and the license has been deemed to be the predominant item to which the royalties relate. Related revenue is recognized as the subsequent underlying sales occur. (iv) allocate the transaction price to the performance obligations in the contract We allocate the transaction price to each performance obligation identified in the contract based upon the stand-alone selling price. The stand-alone selling price of each performance obligation is estimated by using one of the following methods: adjusted market assessment approach, the expected cost plus a margin approach or the residual approach. If management assesses that there is only one single performance obligation, the entire transaction price would be allocated to this performance obligation. (v) recognize revenue when (or as) the entity satisfies a performance obligation Revenue is recognized when our customer obtains control of the goods and/or services foreseen in the contracts. The control can be transferred over time or at a point in time – which results in recognition of revenue over time or at a point in time. In case of revenue recognition over time, we use either an input model that considers estimates of the percentage of total research and development costs that are completed each period compared to the total estimated costs (percentage of completion method) or we apply an output method to measure the progress of the satisfaction of the underlying performance obligation. In other cases, depending on specific circumstances, we recognize revenue on a straight-line basis over the estimated term of the performance obligation. We refer to note 6 for detailed information per agreement and to our Critical judgments in applying accounting policies for more information. Contract costs Contract costs are those costs we incur in order to obtain a contract with a customer that we would not have incurred if the contract has not been obtained and are capitalized as intangible assets only if they are expected to be recoverable. Capitalized contract costs are amortized on a systematic basis that reflects the pattern of transfer of the related promised goods or services to the customer. Costs that we would have incurred regardless of whether the contract is obtained or those costs that are not directly related to obtaining a contract would not be capitalized. Revenue recognition policies applicable to periods ended December 31, 2017 and prior The revenue recognition policies applicable to periods ended December 31, 2017 and prior, can be summarized as follows: Upfront payments Non-refundable, upfront payments received in connection with research and development collaboration agreements are deferred and recognized over the relevant, required periods of our involvement. The payments and our involvement relate to a contractually defined phase of the project. At inception, management estimates the period of our involvement as well as the cost involved in the project. Upfront payments are recognized over the estimated period of involvement, either on a straight line basis or based on the cost incurred under the project if such cost can be reliably estimated. Periodically we reassess the estimated time and our cost to complete the project phase and adjust the time period over which the revenue is deferred accordingly. Milestone payments Research milestone payments are recognized as revenues when achieved. In addition, the payments have to be acquired irrevocably and the milestone payment amount needs to be substantive and commensurate with the magnitude of the related achievement. Milestone payments that are not substantive, not commensurate or that are not irrevocable are recorded as deferred revenue. Revenue from these activities can vary significantly from period to period due to the timing of milestones. Reimbursement income Cost reimbursements resulti |
Critical accounting judgments a
Critical accounting judgments and key sources of estimation uncertainty | 12 Months Ended |
Dec. 31, 2019 | |
Critical accounting judgments and key sources of estimation uncertainty | |
Critical accounting judgments and key sources of estimation uncertainty | 4 . Critical accounting judgments and key sources of estimation uncertainty In the application of the accounting policies, we are required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. Our estimates and assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revisions and future periods if the revision affects both current and future periods. The following are the critical judgments that we have made in the process of applying the accounting policies and that have the most significant effect on the amounts recognized in the consolidated financial statements presented elsewhere in this annual report. Critical judgments in applying accounting policies Accounting for warrant A and warrant B granted to Gilead Warrant A and warrant B were granted to Gilead in combination with the signing of the collaboration agreement on July 14, 2019. As the issuance of warrants A and B was subject to the approval of our shareholders, management concluded that a financial instrument as defined under IAS 32 could not be recognized until such approval was received. We considered that the transaction price included a premium paid by Gilead (through the upfront payment) to acquire the warrants in the future, upon approval by the shareholders. On August 23, 2019, the closing date of the transaction, we received from Gilead the upfront payment that included a premium for the future issuance of the warrants. In accordance with IFRS 15, on August 23, 2019, we recorded a contract liability ("warrant issuance liability") for the expected value of the warrants. We measured both warrants at fair value and recognized a warrant issuance liability at closing of the transaction for the same amount (as part of the current deferred income line). This liability is re-measured at each reporting period with a corresponding impact on the allocation of the transaction price to the performance obligation relating to the drug discovery platform until the time the warrants are approved and issued. The issuance of warrant A and initial warrant B was approved by the extraordinary general meeting of shareholders of October 22, 2019. Upon issuance of warrant A and initial warrant B, on October 22, 2019, the part of the contract liability related to warrant A and initial warrant B was reclassified into a financial liability (derivative) measured at fair value through profit or loss in accordance with IFRS 9. Had management concluded warrant A and warrant B could have been recognized as derivatives upon closing of the transaction changes in the fair value of the derivatives would have been recognized through profit and loss rather than as an adjustment to the transaction price. This would have resulted in an increase of fair value re-measurement for the warrants by €12.9 million (fair value gain), and a decrease of the deferred income at December 31, 2019 by €28.6 million, resulting in a decrease in revenue recognized in current period by €0.5 million. As of December 31, 2019, subsequent warrant B is still subject to approval by an extraordinary general meeting of shareholders. IFRS 15 – Revenue recognition Gilead Our critical judgments were as follows: Determination of the total transaction price ▪ In connection with this agreement with Gilead, we recognized a deferred income and an offsetting current financial asset (derivative) of €85.6 million upon signing of the share subscription agreement with Gilead as required under IFRS 9. The deferred income has been added to the transaction price at inception of the agreement because it is considered to be part of the overall consideration received for the three performance obligations. It has been allocated to the drug discovery platform and will be recognized as revenue over the next ten years. Had we concluded that the equity subscription should be accounted for as a separate transaction the entire amount of €85.6 million would have been additionally recorded as equity and future revenue reduced by the same amount. Performance obligation: License on GLPG1690 ▪ The transaction price allocated to this performance obligation reflects our assessment of the stand-alone selling price of this performance obligation and was valued based on a discounted cash flow approach including, amongst others, assumptions on the estimated market share and size, peak sales and probability of success. Changes in these assumptions would have impacted the estimate of the stand-alone selling price of this performance obligation. This would have resulted in a reallocation of the transaction price between this performance obligation, for which revenue is recognized at a point in time, and the drug discovery platform, for which revenue is recognized on a straight-line basis over ten years. ▪ After granting the license for GLPG1690, we share further development costs equally with Gilead. Gilead is not assessed as a customer but as a collaboration partner, as such this part of the collaboration is not in scope of IFRS 15. Any cost reimbursement from our collaboration partner is not recognized as revenue but accounted for as a decrease of the related expenses. Had management concluded that the transaction was within scope of IFRS 15, the reimbursement from our collaboration partner for the year ended December 31, 2019 of €17.7 million would have been presented as revenue instead of an offset of the related expenses. Performance obligation: Filgotinib amendment ▪ The standalone selling price of the Filgotinib amendment was determined through the cost-plus-margin approach. Management estimated that an appropriate margin is indirectly embedded in the increased involvement in the global strategy of filgotinib and the broader commercialization role in the Benelux and EU5 countries. Had a different margin been estimated the transaction price allocated to the performance obligation from the filgotinib amendment would have been different with a corresponding adjustment to the revenue allocated to the drug discovery platform. This would have resulted in a reallocation of revenue between current periods and future periods, given the transaction price allocated to the performance obligation from the filgotinib amendment will be recognized over a shorter period as compared to the 10-year recognition pattern of the transaction price allocated to the drug discovery platform. Financing component ▪ There are two performance obligations determined in the agreement with Gilead for which the period between the transfer of the promised goods/services to Gilead and the payment of the underlying consideration by Gilead exceeds one year, being the performance obligation relating to the drug discovery platform and the performance obligation resulting from the filgotinib amendment. Although the consideration paid for the drug discovery platform will be recognized over a period of 10 years as from receipt of the funds, management concluded not to consider any financing component for this performance obligation as the granting of an exclusive access and option rights on day one is the predominant value of the drug discovery platform performance obligation. As a consequence, management has considered it is only appropriate to adjust the part of the transaction price that was allocated to the filgotinib performance obligation, for the time value of money. Had no financing component been applied for the performance obligation resulting from the filgotinib amendment, this would have resulted in a decrease of €6.9 million in interest expenses, a decrease in revenue recognition of €11.8 million and a decrease in current and non-current deferred income of €4.9 million for the year ended December 31, 2019. |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2019 | |
Segment information | |
Segment information | 5. Segment information There are two reportable segments, R&D and fee-for-service business. Segment information for year 2019 (Euro, in thousands) R&D Fee-for-services Inter-segment Group External revenue € 834,901 € 10,084 € 844,985 Internal revenue 6,742 € (6,742) Other income 50,905 — 50,905 Revenues & other income 885,806 16,826 (6,742) 895,890 Segment result 407,464 1,125 408,589 Unallocated expenses (1) (38,297) Operating income 370,292 Financial (expenses)/income (220,233) Result before tax 150,060 Income taxes (214) Net income € 149,845 (1) The unallocated expenses of €38 ,297 thousand comprise warrant costs. Segment information for year 2018 (Euro, in thousands) R&D Fee-for-services Inter-segment Group External revenue € 278,666 € 10,170 € 288,836 Internal revenue 8,508 € (8,508) Other income 29,000 9 29,009 Revenues & other income 307,666 18,687 (8,508) 317,845 Segment result (19,734) 1,751 (17,983) Unallocated expenses (1) (26,824) Operating loss (44,807) Financial (expenses)/income 15,598 Result before tax (29,209) Income taxes (50) Net loss € (29,259) (1) The unallocated expenses of €26,824 thousand principally comprise of €26,757 thousand of warrant costs. Segment information for year 2017 (Euro, in thousands) R&D Fee-for-services Inter-segment Group External revenue € 118,262 € 8,825 € 127,087 Internal revenue 5,104 € (5,104) Other income 28,815 15 28,830 Revenues & other income 147,077 13,945 (5,104) 155,918 Segment result (73,610) 86 (73,524) Unallocated expenses (1) (16,278) Operating loss (89,802) Financial (expenses)/income (25,705) Result before tax (115,507) Income taxes (198) Net loss € (115,704) (1) The unallocated expenses of €16,278 thousand principally comprise of €16,536 thousand of warrant costs. Segment assets and liabilities are not information being provided to the chief operating decision maker on a recurring basis. This information is therefore not disclosed in our segment information. GEOGRAPHICAL INFORMATION In 2017, 2018 and 2019, our operations were mainly located in Belgium, Croatia, France and the Netherlands. Following table summarizes the revenues by destination of customer: Year ended December 31, 2019 2018 2017 (Euro, in thousands) North America € 795,605 € 117,609 € 82,050 Europe 49,018 171,113 45,037 Asia Pacific 362 114 — Total € 844,985 € 288,836 € 127,087 Following table summarizes the revenues by major customers: Year ended December 31, 2019 2018 2017 Spilt up of revenues by major customers (Euro, in % (Euro, in % (Euro, in % Gilead: North America (1) € 793,873 € 116,640 € 80,687 Europe (1) (4,570) -1% 7,793 AbbVie: Europe 26,356 89,936 34,049 Novartis: Europe 19,177 55,218 Les Laboratoires Servier: Europe — 9,000 67 Total revenues from major customers € 834,836 € 278,587 114,804 (1) Following the contract amendment, the revenue recognized for filgotinib for the year ended December 31, 2019, included a negative catch-up effect on closing date of €245.9 million resulting from the decrease in the percentage of completion applied to previously received upfront and milestones for that program. As of December 31, 2019, we held €203 million of non-current assets (€110 million in 2018; €89 million in 2017) distributed as follows: · Belgium: €133 million (€64 million in 2018; €47 million in 2017) · France: €54 million (€36 million in 2018; €34 million in 2017) · Croatia: €7 million (€5 million in 2018; €4 million in 2017) · The Netherlands: €8 million (€4 million in 2018; €4 million in 2017) · Switzerland: €1 million (nil in 2018 and 2017) The increase in non-current assets in 2019 as compared to 2018 was mainly explained by (i) an increase in property, plant & equipment explained by new acquisitions in 2019 but also by the recognition of right-of-use assets following the adoption of IFRS 16 Leases, (ii) an increase in intangible assets due to new acquisitions and capitalization of contract costs linked to the collaboration agreement with Gilead, and (iii) an increase in non-current R&D incentives receivables (see note 16). |
Total revenues and other income
Total revenues and other income | 12 Months Ended |
Dec. 31, 2019 | |
Total revenues and other income | |
Total revenues and other income | 6. Total revenues and other income REVENUES The following table summarizes the revenues for the years ended December 31, 2019, 2018 and 2017. Year ended December 31, 2019 2018 2017 (Euro, in thousands) Recognition of non-refundable upfront payments and license fees € 812,058 € 196,486 € 71,971 Milestone payments 2,878 73,394 42,950 Reimbursement income 19,900 8,722 3,273 Other revenues 10,150 10,233 8,893 Total revenues € 844,985 € 288,836 € 127,087 The following table summarizes details of revenues for the years ended 31 December 2019 and 2018 by collaboration and by category of revenue: upfront payments and license fees, milestone payments, reimbursement income, and other revenues. Over time Point in time 2019 2018 (Euro, in (Euro, in thousands) thousands) Recognition of non-refundable upfront payments and license fees € € Gilead collaboration agreement for GLPG1690 - Gilead collaboration agreement for filgotinib (1) Gilead collaboration agreement for drug discovery platform - AbbVie collaboration agreement for CF Novartis collaboration agreement for MOR106 - Milestone payments Gilead collaboration agreement for filgotinib (1) AbbVie collaboration agreement for CF Servier collaboration agreement for osteoarthritis - Reimbursement income Novartis collaboration agreement for MOR106 AbbVie collaboration agreement for CF Other reimbursement income - Other revenues Fee-for-services revenues Other revenues Total revenues € 844,985 € 288,836 (1) Following the contract amendment, the revenue recognized for filgotinib for the year ended December 31, 2019, included a negative catch-up effect at closing date of €245.9 million, resulting from the decrease in the percentage of completion applied to previously received upfront and milestones for that program. The upfront payment received from Gilead in connection with the Option, License and Collaboration agreement signed on July 14, 2019 of €3,569.8 million ($3.95 billion) and the impact of the initial valuation of the derivative financial instrument triggered by the share subscription agreement with Gilead were allocated to the performance obligations identified as follows: (Euro, in thousands) Allocation of transaction price Upfront received € 3,569,815 Impact initial valuation of share subscription 85,601 3,655,416 Less : Warrants issuance liabilities Warrant A (43,311) Initial warrant B (2,545) Subsequent warrant B (16,184) 3,593,376 Allocation to performance obligations GLPG1690 666,967 Filgotinib additional consideration (1) 641,663 Drug discovery platform (10 years) € 2,284,747 (1)With regard to the additional consideration received for the extended cost sharing for filgotinib, we assume the existence of a significant financing component estimated to €44.5 million reflecting the time value of money on the estimated recognition period. On the closing date of the transaction (August 23, 2019) we concluded that the upfront payment implicitly included a premium for the future issuance of warrant A and initial and subsequent warrant B. The expected value of the warrants to be issued is treated as a contract liability ("warrant issuance liability") and reducing the transaction price until approval date of the issuance of the underlying warrants. As from approval date, the allocation of the upfront payment to the respective warrant becomes fixed and future changes in the fair value of the respective warrant will be recognized in profit or loss. As such, the part of the upfront payment allocated to the warrant A and initial warrant B reflects the fair value of these financial liabilities at the warrant approval date (October 22, 2019). The value allocated to the subsequent warrant B reflects the fair value of the underlying liability at December 31, 2019 since this warrant is not yet approved for issuance. A summary of all current contracts with customers is given below: Collaboration with Gilead On July 14, 2019 we and Gilead announced that we had entered into a 10-year global research and development collaboration. Through this agreement, Gilead gained exclusive access to our innovative portfolio of compounds, including six molecules currently in clinical trials, more than 20 preclinical programs and a proven drug discovery platform. We refer to note 2 Summary of significant transaction for more detailed information. As part of this deal, our existing license and collaboration agreement for filgotinib with Gilead was also amended. Under this revised filgotinib agreement, we have greater involvement in filgotinib’s global strategy and participate more broadly in the commercialization of the product in Europe, providing the opportunity to build a commercial presence on an accelerated timeline. We concluded as follows: Determination of the total transaction price · In connection with this agreement with Gilead, we recognized a deferred income and an offsetting current financial asset (derivative) of €85.6 million upon signing of the share subscription agreement with Gilead as required under IFRS 9. The deferred income has been added to the transaction price at inception of the agreement because it is considered to be part of the overall consideration received for the three performance obligations. · We considered that the transaction price included a premium paid by Gilead (through the upfront payment) to acquire warrants (warrant A and warrant B) in the future, upon approval by the shareholders. We measured both warrants at fair value and recognized a warrant issuance liability at closing of the transaction for the same amount (as part of the current deferred income line). This liability is re-measured at each reporting period with a corresponding impact on the allocation of the transaction price to the performance obligation relating to the drug discovery platform. Financing component · There are two performance obligations determined in the agreement with Gilead for which the period between the transfer of the promised goods/services to Gilead and the payment of the underlying consideration by Gilead exceeds one year, being the performance obligation relating to the drug discovery platform and the performance obligation resulting from the filgotinib amendment. Although the consideration paid for the drug discovery platform will be recognized over a period of 10 years as from receipt of the funds, management concluded not to consider any financing component for this performance obligation as the granting of an exclusive access and option rights on day one is the predominant value of the drug discovery platform performance obligation. As a consequence, management has considered it is only appropriate to adjust the part of the transaction price that was allocated to the filgotinib performance obligation, for the time value of money. License on GLPG1690 · The transaction price allocated to this performance obligation reflects our assessment of the stand-alone selling price of this performance obligation and was valued based on a discounted cash flow approach including, amongst others, assumptions on the estimated market share and size, peak sales and probability of success. · This performance obligation is completely satisfied at December 31, 2019. As such, future milestones (other than sales based milestones) payments will be included and recognized in the transaction price to the extent that it is highly probable that a significant reversal of revenue will not occur. Future royalties will be recognized as revenue as the subsequent underlying sales occur. · After granting the license for GLPG1690, we will share Phase 3 costs equally with Gilead. Any cost reimbursement from Gilead is not recognized as revenue but accounted as a decrease of the related expenses. Filgotinib amendment · There is one single performance obligation under 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 standalone selling price of the filgotinib amendment was determined through the cost-plus-margin approach. Management estimated that an appropriate margin is indirectly embedded in the increased involvement in the global strategy of filgotinib and the broader commercialization role in the Benelux and EU5 countries. · The transaction price 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 to the extent that it is highly probable that a significant reversal of revenue will not occur. Sales based milestones and sales based royalties are a part of the arrangement but are not yet included in our revenues as our program is still in Phase 3 of development. · Revenues are recognized over time through satisfaction of the performance obligation. The "cost-to-cost" input model is applied to measure the progress of the satisfaction of this performance obligation. The predetermined level of costs has increased compared to the original agreement and as a result, the percentage of completion has decreased leading to the recognition in revenue of a negative cumulative catch-up effect in 2019. · We expect to recognize revenues from the current transaction price over time in future periods until satisfactory of this performance obligation based on the cost-to-cost model. Access rights to the drug discovery platform, option rights and R&D activities · The revenue allocated to the drug discovery platform will be recognized over time as Gilead receives exclusive access to our drug discovery platform and option rights on our current and future pipeline as well as R&D activities during the collaboration term. Management concluded that an equal spread over the collaboration period is the most reliable and appropriate recognition method. · Management assessed the appropriate period over which to recognize the drug discovery platform revenue to be 10 years. This is because we granted exclusive rights over a 10-year period. However, if at the end of the 10-year period, some programs in existence as of this time would have reached the clinic (i.e. IND filed with regulatory authorities), the rights for those specific programs may be extended, for a maximum of three years. We will reassess this critical estimate at each year-end based on the evolution of our pipeline. Collaboration with Servier In 2010 we signed a license and collaboration agreement with Servier in the field of osteoarthritis. Any increase in the transaction price from future potential development and regulatory milestones, sales based milestones and royalties, will be allocated to the license and will be fully recognized as revenue at a point in time when achieved, as our performance obligation towards Servier has been fully satisfied. The contract signed with Servier on May 8, 2018 takes over the terms of the previous agreement but additionally includes the framework of a joint Phase 2 clinical trial program in which both parties collaborate, share costs and mutually exchange services. We concluded that this contract modification was not in the scope of IFRS 15 because there is a mutual exchange of services between Servier and Galapagos, Servier is not assessed as a customer but as a collaboration partner. Any cost reimbursement from our collaboration partner is not recognized as revenue but accounted for as a decrease of the related expenses. Collaboration with Novartis Together with our collaboration partner MorphoSys, we closed a license agreement with Novartis for MOR106 in July 2018. MorphoSys and we received an equal share of an upfront payment of €95 million and were entitled to potential future milestone payments and royalties. Novartis would bear all future research, development, manufacturing and commercialization costs related to MOR106. Costs reimbursements received from Novartis were recognized in revenues when costs were incurred and agreed by the parties as we were acting as a principal in the scope of the performance of the R&D activities. On October 28, 2019, we announced the end of the clinical development program of MOR106 in AtD. On December 17, 2019, Novartis sent us a termination notice, informing us of its decision to terminate the agreement in its entirety. The notice period for such termination is still ongoing, but we expect that such termination will become effective later this year. Collaboration with AbbVie We concluded as follows for the related revenue recognition: · There was one single performance obligation under IFRS 15: the transfer of a license combined with performance of R&D activities. This was because we considered that the license was not capable of being distinct and was not distinct in the context of the contract. · The transaction price of our agreement with AbbVie was composed of a fixed part, being upfront license fees, and a variable part, being milestone payments and cost reimbursements for R&D activities delivered. Milestone payments were only included in the transaction price to the extent that it was highly probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is subsequently resolved. Given the nature of our industry, we only consider this once the milestone event is achieved. Sales based milestones and sales based royalties are a part of our arrangement but are not yet included in our revenues. · 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 were recognized in revenues when costs were incurred and agreed by the parties as we were acting as a principal in the scope of our stake of the R&D activities of this license and collaboration agreements. · The second amended and restated collaboration agreement signed on October 24, 2018 was assessed to be a contract modification including a change in scope and in pricing as the remaining goods or services were not distinct and form part of the single performance obligation that was partially satisfied at the date of the contract modification. We concluded that we must account for this second amended and restated collaboration agreement as if it was part of the existing contract and recognized an adjustment to revenue to reflect the contract modification on the transaction price and on the measure of progress towards satisfaction of the performance obligation. The performance obligation related to this agreement is considered being fully satisfied at December 31, 2019. For the years ended December 31, 2018 and 2017 The following table summarizes the revenue recognition of upfront payments, license fees and milestone payments for the years ended December 31, 2018 and 2017, as well as the impact of the adoption of IFRS 15. The revenues recognized for the years ended December 31, 2018 presented under the IFRS 15 standard as well as under the former applicable IAS 18 standard, with a comparison to the year ended December 31, 2017 under the former applicable IAS 18 standard. IAS 18 IFRS 15 IFRS 15 IAS 18 IAS 18 IFRS 15 Agreement Consideration Consideration Collaboration Outstanding Deferred income reclassified from equity following adoption of IFRS 15 Outstanding Revenue recognized, year ended December 31, 2018 Revenue recognized, year ended December 31, 2018 Revenue recognized, year ended December 31, 2017 Outstanding balance in deferred income as at December 31, 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 € 84,806 € 84,806 € 62,488 € 102,643 Gilead collaboration agreement for filgotinib - Subscription agreement (*) N.A. € 39,003 (*) January 2016 € 26,532 € 26,532 € 12,004 € 12,004 € 8,845 € 14,528 Servier collaboration agreement for osteoarthritis - License fee N.A. € 6,000 June 2010 € 5,362 € (5,362) € — € — € 1,532 € 638 € — AbbVie collaboration agreement for CF - Upfront payments $ 45,000 € 34,001 September 2013 € € 14,872 € 14,872 € 14,140 € — € — € 732 Total upfront payments and license fees: € 219,343 € 9,510 € 228,853 € 110,950 € 98,342 € 71,971 € 117,903 Gilead collaboration agreement for filgotinib - Milestone payments $ 70,000 € 64,435 January 2016 € 43,832 € 43,832 € 19,831 € — € 9,354 € 24,001 AbbVie collaboration agreement for CF - Milestone payments $ 77,500 € 68,310 September 2013 € 29,878 € 29,878 € 28,406 € — € 33,596 € 1,471 Total milestones: € 73,710 € 73,710 € 48,237 € — € 42,950 € 25,472 Total : € 219,343 € 83,220 € 302,563 € 159,187 € 98,342 € 114,921 € 143,375 Revenue recognition of considerations in the year ended December 31, 2018 Novartis collaboration agreement for MOR106 - Upfront payment N.A. € 47,500 September 2018 € 47,500 € 47,500 € — AbbVie collaboration agreement for CF - Upfront payment $ 45,000 € 38,874 September 2013 € 38,037 € 38,037 € 837 Total upfront payments and license fees: € 85,537 € 85,537 € 837 Gilead collaboration agreement for filgotinib - Milestone payments $ 15,000 € 12,418 January 2016 € 7,793 € 12,418 € 4,625 AbbVie collaboration agreement for CF - Milestone payments $ 10,000 € 8,548 September 2013 € 8,364 € 8,548 € 184 Servier collaboration agreement for osteoarthritis - Milestone payment N.A. € 9,000 June 2010 € 9,000 € 9,000 € — Total milestones: € 25,157 € 29,966 € 4,809 Total : € 110,694 € 115,503 € 5,646 Grand total : upfront payments and license fees and milestones € 269,881 € 213,845 € 149,021 (*) deferred income of €39 million recognized upon signing of the share subscription agreement with Gilead as required under IAS 39 IFRS 15 Over time Point in time 2018 2017 Over time Point in time (Euro, in (Euro, in thousands) thousands) Recognition of non-refundable upfront payments and license fees € Gilead collaboration agreement for GLPG1690 Gilead collaboration agreement for filgotinib Gilead collaboration agreement for drug discovery platform AbbVie collaboration agreement for CF - Novartis collaboration agreement for MOR106 - Servier collaboration agreement for osteoarthritis - Milestone payments Gilead collaboration agreement for filgotinib AbbVie collaboration agreement for CF Servier collaboration agreement for osteoarthritis - Reimbursement income Novartis collaboration agreement for MOR106 - AbbVie collaboration agreement for CF Servier collaboration agreement for osteoarthritis - Other reimbursement income Other revenues Fee-for-services revenues Other revenues Total revenues 288,836 € 127,087 OTHER INCOME The following table summarizes other income for the years ended December 31, 2019, 2018 and 2017. Year ended December 31, 2019 2018 2017 (Euro, in thousands) Grant income € 6,549 € 1,609 € 1,045 R&D incentives 43,923 26,912 26,808 Other income 433 488 977 Total other income € 50,905 € 29,009 € 28,830 |
Operating costs
Operating costs | 12 Months Ended |
Dec. 31, 2019 | |
Operating costs | |
Operating costs | 7. Operating costs Operating result has been calculated after charging (-) / crediting: RESEARCH AND DEVELOPMENT EXPENDITURE The following table summarizes research and development expenditure for the years ended December 31, 2019, 2018 and 2017. Year ended December 31, 2019 2018 2017 (Euro, in thousands) Personnel costs € (124,260) € (81,352) € (59,950) Subcontracting (249,926) (197,644) (123,054) Disposables and lab fees and premises costs (23,880) (25,525) (22,277) Depreciation (10,874) (5,655) (3,679) Other operating expenses (18,380) (12,699) (9,542) Total R&D expenses € (427,320) € (322,875) € (218,502) All research and development expenditures are tracked against detailed budgets and allocated by individual project. The table below summarizes our research and development expenditure for the years ended December 31, 2019, 2018 and 2017, broken down by program. Year ended December 31, 2019 2018 2017 (Euro, in thousands) Filgotinib program € (100,032) € (66,138) € (53,212) IPF program on GLPG1690 (75,951) (72,718) (16,190) OA program on GLPG1972 (19,958) (15,751) (7,317) Toledo program (47,204) (20,967) (8,075) CF program (3,897) (30,137) (46,192) AtD program on MOR106 (24,051) (14,999) (8,404) Other programs (156,227) (102,165) (79,113) Total R&D expenses € (427,320) € (322,875) € (218,502) GENERAL AND ADMINISTRATIVE EXPENSES The following table summarizes the general and administrative expenses for the years ended December 31, 2019, 2018 and 2017. Year ended December 31, 2019 2018 2017 (Euro, in thousands) Personnel costs and directors fees € (51,906) € (25,495) € (17,756) Depreciation (1,513) (513) (606) Legal and professional fees (11,775) (4,284) (2,427) Other operating expenses (8,506) (5,339) (3,626) Total general and administrative expenses € (73,701) € (35,631) € (24,415) SALES AND MARKETING EXPENSES The following table summarizes the sales and marketing expenses for the years ended December 31, 2019, 2018 and 2017. Year ended December 31, 2019 2018 2017 (Euro, in thousands) Personnel costs € (7,558) € (2,282) € (2,156) Depreciation (61) — — External outsourcing costs (15,722) (1,284) (42) Other operating expenses (1,236) (580) (604) Total sales and marketing expenses € (24,577) € (4,146) € (2,803) |
Staff costs
Staff costs | 12 Months Ended |
Dec. 31, 2019 | |
Staff costs | |
Staff costs | 8. Staff costs The following table illustrates the personnel costs for the years 2019, 2018 and 2017. Year ended December 31, 2019 2018 2017 (Euro, in thousands) Wages and salaries € (116,408) € (61,619) € (46,677) Social security costs (16,858) (11,003) (9,081) Pension costs (4,715) (2,994) (2,175) Other personnel costs (39,109) (27,375) (16,465) Total personnel costs € (177,090) € (102,991) € (74,398) The other personnel costs mainly related to costs for warrants granted of €32.5 million (2018: €21.3 million, 2017: €11.8 million). For the costs of warrants granted, see note 28. |
Fair value re-measurement of sh
Fair value re-measurement of share subscription agreement and warrants granted to Gilead | 12 Months Ended |
Dec. 31, 2019 | |
Fair value re-measurement of share subscription agreement and warrants granted to Gilead | |
Fair value re-measurement of share subscription agreement and warrants granted to Gilead | 9. Fair value re-measurement of share subscription agreement and warrants granted to Gilead Total fair value re-measurement for the year ended December 31, 2019, can be split up as follows: Year ended December 31, 2019 (Euro, in thousands) Fair value re-measurement of the share subscription agreement € Fair value re-measurement of warrant A Fair value re-measurement of initial warrant B Total fair value re-measurement of share subscription agreement and warrants € (181,644) Fair value re-measurement of the Gilead share subscription agreement (Euro, in thousands) Fair value of financial asset at signing date € 85,601 Change in fair value recorded in profit or loss Fair value of financial liability at closing date Derecognition at closing date Fair value on December 31, 2019 € — Fair value re-measurement of the financial instrument related to the issuance of warrant A (Euro, in thousands) Fair value of financial liability at warrant approval date € (43,311) Change in fair value recorded in profit or loss Derecognition at warrant A exercise date Fair value on December 31, 2019 € — Fair value re-measurement of the financial instrument related to the issuance of initial warrant B (Euro, in thousands) Fair value of financial liability at warrant approval date € (2,545) Change in fair value recorded in profit or loss Fair value on December 31, 2019 € (6,198) |
Other financial income _ expens
Other financial income / expenses | 12 Months Ended |
Dec. 31, 2019 | |
Other financial income / expenses | |
Other financial income / expenses | 10. Other financial income / expenses The following table summarizes other financial income and expense for the years ended December 31, 2019, 2018 and 2017. Year ended December 31, 2019 2018 2017 (Euro, in thousands) Other financial income: Interest on bank deposit € 14,306 € 5,219 € 3,045 Effect of discounting long term R&D incentives receivables 93 199 — Currency exchange gain 850 11,027 1,797 Fair value gain on financial assets held at fair value through profit or loss 5,355 1,203 — Fair value gain on current financial investments 611 — — Gain upon sale of financial assets held at fair value through profit or loss 2 668 — Other finance income 264 19 34 Total other financial income 21,482 18,335 4,877 Other financial expenses: Interest expenses (1,302) (780) (936) Effect of discounting long term deferred income (6,900) — — Currency exchange loss (47,769) (1,174) (29,176) Fair value loss on current financial investments (3,700) — — Other finance charges (400) (782) (469) Total other financial expense (60,071) (2,737) (30,582) Total net other financial expense (-)/ income € (38,589) € 15,598 € (25,705) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Income Taxes | 11. Income taxes INCOME TAXES The following table summarizes the income tax recognized in profit or loss for the years ended December 31, 2019, 2018 and 2017. Year ended December 31, 2019 2018 2017 (Euro, in thousands) Current tax € (1,372) € (584) € (218) Deferred tax 1,158 535 20 Income taxes € (214) € (50) € (198) TAX LIABILITIES The below table illustrates the tax liabilities related captions in the consolidated statement of financial positionas at December 31, 2019, 2018 and 2017. December 31, 2019 2018 2017 (Euro, in thousands) Current tax payable € 2,037 € 1,175 € 865 Total tax liabilities € 2,037 € 1,175 € 865 On December 31, 2018 and December 31, 2019, €1.2 million and €2.0 million of tax liabilities were primarily related to respectively five and four of our subsidiaries operating on a cost plus basis. TAXES RECOGNIZED IN STATEMENT OF OPERATIONS For the purpose of the disclosure below corporation tax was calculated at 29.58% (2018: 29.58%, 2017: 34%)—which is the tax rate applied in Belgium—on the estimated assessable profit for the year. The applied tax rate for other territorial jurisdictions was the tax rate that is applicable in these respective territorial jurisdictions on the estimated taxable result of the accounting year. Year ended December 31, 2019 2018 2017 (Euro, in thousands) Income/loss (-) before tax € 150,060 € (29,209) € (115,507) Income tax debit/credit (-), calculated using the Belgian statutory tax rate on the accounting income/loss (-) before tax (theoretical) 44,388 (8,640) (39,261) Tax expenses/income (-) in statement of operations (effective) 214 50 198 Difference in tax expense/income to explain € (44,173) € 8,690 € 39,458 Effect of tax rates in other jurisdictions € 831 € 411 € 14 Effect of non taxable revenues (13,079) (11,558) (11,277) Effect of share based payment expenses without tax impact 10,318 7,530 5,317 Effect of expenses/income (-) not subject to tax 53,270 382 102 Effect of non tax deductible expenses 795 945 404 Effect of recognition of previously non recognized deferred tax assets (2,286) (1,977) (414) Effect of change in tax rates — — 181 Effect of tax losses (utilized) reversed (136) (150) (763) Effect of under or over provision in prior periods 30 — — Effect of non recognition of deferred tax assets 47,413 13,108 45,895 Effect of derecognition of previously recognized deferred tax assets 106 — — Effect of use of IID (141,435) — — Total explanations € (44,173) € 8,690 € 39,458 Non-taxable revenues for the years ended December 31, 2019, 2018 and 2017 related to non-taxable subsidies and tax credits. Expenses/income (-) not subject to tax for the year ended December 31, 2019 mainly consisted of the fair value re-measurement of the derivative financial liabilities related to the share subscription agreement and the warrants granted to Gilead (see note 9). The use of the IID for the year ended December 31, 2019 referred to the “innovation income deduction” regime in Belgium. This regime allows net profits attributable to revenue from among others patented products (or products for which the patent application is pending) to be taxed at a lower effective tax rate than other revenues. The effective tax rate can thus be reduced up to 4.4% (3.75% as of January 1, 2020). |
Income_loss (-) per share
Income/loss (-) per share | 12 Months Ended |
Dec. 31, 2019 | |
Income/loss (-) per share | |
Income/loss (-) per share | 12. Income/loss (-) per share Basic income/loss (-) per share is calculated by dividing the net income/loss (-) attributable to shareholders by the weighted average number of ordinary shares outstanding during the year. Diluted income/loss (-) per share is calculated based on the weighted average number of shares (diluted) also considering outstanding warrants, for which our average share price of the year was higher than the exercise price. The possible increase in the number of shares resulting from the outstanding initial warrant B has not been included in the calculation of the diluted income per share as at December 31, 2019 because they were antidilutive. Income/loss (-) per share Year ended December 31, 2019 2018 2017 Income/loss (-) per share: Net income/loss (-) attributable to owners of the parent (Euro, in thousands) € 149,845 € (29,259) € (115,704) Number of shares (thousands) Weighted average number of shares for the purpose of basic income/loss (-) per share 57,614 52,113 49,479 Basic income/loss (-) per share (Euros) € 2.60 € (0.56) € (2.34) Net income/loss (-) attributable to owners of the parent (Euro, in thousands) € 149,845 € (29,259) € (115,704) Number of shares (thousands) Weighted average number of shares for the purpose of diluted income/loss (-) per share 57,614 52,113 49,479 Number of dilutive potential ordinary shares 2,498 — — Diluted income/loss (-) per share (Euros) € 2.49 € (0.56) € (2.34) As our operations reported a net loss in 2018 and 2017, the outstanding warrants (specified in note 28) have an anti-dilutive effect rather than a dilutive effect. Consequently, basic and diluted loss per share were the same for 2018 and 2017. |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2019 | |
Intangible assets | |
Intangible assets | 13. Intangible assets In process Software & Brands, Contract costs Total (Euro, in thousands) Acquisition value On January 1 , 2017 € 5,561 € 7,185 € 1,523 € — € 14,269 Additions 1,500 623 2 2,125 Sales and disposals (100) (100) Translation differences (212) (212) On December 31, 2017 7,061 7,496 1,525 — 16,082 Additions 1,561 1,763 3,325 Sales and disposals (7,061) (20) (569) (7,650) Translation differences 74 74 On December 31, 2018 — 9,111 2,719 — 11,832 Additions 5,463 2,453 15,384 23,300 Sales and disposals (64) (64) Translation differences 31 31 On December 31, 2019 — 14,541 5,172 15,384 35,099 Amortization and impairment On January 1 , 2017 5,561 6,182 1,501 — 13,246 Amortization 644 8 652 Sales and disposals (99) (99) Translation differences (212) (212) On December 31, 2017 5,561 6,514 1,509 — 13,587 Amortization 417 681 9 1,107 Impairment 1,083 1,083 Sales and disposals (7,061) (20) (569) (7,650) Translation differences 74 74 On December 31, 2018 — 7,250 949 — 8,200 Amortization 816 678 512 2,006 Sales and disposals (63) (63) Translation differences 31 31 On December 31, 2019 — 8,034 1,626 512 10,173 Carrying amount On December 31, 2017 € 1,500 € 982 € 16 € — € 2,495 On December 31, 2018 € — € 1,862 € 1,771 € — € 3,632 On December 31, 2019 € — € 6,507 € 3,546 € 14,872 € 24,927 On December 31, 2019, our balance sheet did not hold any internally generated assets capitalized as intangible asset. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment | |
Property, plant and equipment | 14. Property, plant and equipment FULLY OWNED Land & Installation & Furniture, Other Total (Euro, in thousands) Acquisition value On January 1 , 2017 € 4,412 € 29,733 € 2,973 € 505 € 37,624 Additions 324 3,178 246 1,564 5,312 Sales and disposals (844) (17) (861) Reclassifications 881 (881) — Translation differences 112 7 1 120 On December 31, 2017 4,736 33,060 3,209 1,189 42,195 Additions 275 4,674 1,039 4,404 10,392 Sales and disposals (486) (826) (1,311) Reclassifications 753 13 (766) — Translation differences 29 16 46 On December 31, 2018 5,011 38,031 3,452 4,827 51,321 Additions 273 6,382 649 15,076 22,380 Sales and disposals (1,521) (97) (1,618) Reclassifications 1,792 3 (1,795) — Reclassifications to right of use (251) (251) Translation differences (30) 22 (8) On December 31, 2019 5,284 44,655 4,028 17,856 71,823 Depreciations and impairment On January 1 , 2017 2,025 18,252 2,184 203 22,663 Depreciation 316 3,027 234 55 3,633 Sales and disposals (838) (17) (855) Translation differences 1 53 7 61 On December 31, 2017 2,342 20,495 2,407 258 25,502 Depreciation 344 3,377 236 17 3,974 Sales and disposals (485) (826) (1,310) Translation differences 16 2 18 On December 31, 2018 2,686 23,403 1,819 275 28,184 Depreciation 394 4,018 399 7 4,818 Sales and disposals (1,521) (99) (1,620) Reclassifications to right of use (251) (251) Translation differences (15) (15) On December 31, 2019 3,080 25,885 2,119 31 31,117 Carrying amount On December 31, 2017 € 2,394 € 12,565 € 802 € 930 € 16,692 On December 31, 2018 € 2,325 € 14,628 € 1,632 € 4,552 € 23,137 On December 31, 2019 € 2,204 € 18,770 € 1,909 € 17,825 € 40,707 RIGHT-OF-USE Land & Installation & Furniture, Total (Euro, in thousands) Acquisition value On December 31, 2018 € — € — € — € — Change in accounting policy ( modified retrospective application IFRS 16) 24,056 219 2,130 26,406 Restated balance on January 1, 2019 24,056 219 2,130 26,406 Additions 3,270 84 1,176 4,530 Reclassifications to right of use 251 251 Translation differences 38 38 On December 31, 2019 27,364 554 3,307 31,225 Depreciations and impairment On December 31, 2018 — Depreciation 4,666 91 867 5,624 Reclassifications to right of use 251 251 Translation differences 4 4 On December 31, 2019 4,670 342 867 5,879 Carrying amount On December 31, 2019 € 22,694 € 212 € 2,440 € 25,345 Carrying amount on December 31, 2019 Property, plant and equipment fully owned € 40,707 Right-of-use 25,345 Total property, plant and equipment € 66,052 Due to adoption of IFRS 16 on January 1, 2019 we recognized an opening balance of right-of-use assets of €26.4 million on the balance sheet. There are no pledged items of property, plant and equipment. There are also no restrictions in use on any items of property, plant and equipment. |
Other non-current assets
Other non-current assets | 12 Months Ended |
Dec. 31, 2019 | |
Other non-current assets | |
Other non-current assets | 15. Other non-current assets Other non-current assets consisted of non-current restricted cash, financial assets held at fair value through profit or loss and other non-current assets. December 31, 2019 2018 2017 (Euro, in thousands) Non-current restricted cash € 1,418 € 1,276 € 1,158 Financial assets held at fair value through profit or loss 11,275 6,000 1,754 Other non-current assets 1,399 643 549 Total other non-current assets € 14,091 € 7,919 € 3,461 Restricted cash on December 31, 2019 was composed of bank guarantees on real estate lease obligations in Belgium and in the Netherlands for €0.9 million and €0.5 million respectively. Restricted cash on December 31, 2018 was composed of bank guarantees on real estate lease obligations in Belgium and in the Netherlands for €0.7 million and €0.6 million respectively. Financial assets held at fair value through profit or loss consisted of equity instruments of listed companies. We have no restrictions on the sale of these equity instruments and the assets are not pledged under any of our liabilities. These instruments are designated as financial assets held at fair value through profit or loss which qualify for level 1 fair value measurement based upon the closing price of such securities on Euronext at each reporting date. Fair value changes on financial assets with fair value through profit or loss are recognized directly in profit or loss, in other financial income/other financial expenses. The table below illustrates these financial assets held at fair value through profit or loss as at December 31, 2019, 2018 and 2017. December 31, 2019 2018 2017 (Euro, in thousands) Costs at January 1 € 4,818 € 2,373 € 2,750 Acquisitions of the year — 4,736 — Disposals of the year (82) (2,291) (377) Costs at December 31, 4,736 4,818 2,373 Fair value adjustment at January 1 1,182 (619) (399) Cancellation of fair value adjustment following disposal 2 598 55 Fair value adjustment of the year 5,355 1,203 (275) Fair value adjustment at December 31, 6,539 1,182 (619) Net book value at December 31, € 11,275 € 6,000 € 1,754 |
Research and Development incent
Research and Development incentives receivables | 12 Months Ended |
Dec. 31, 2019 | |
Research and Development incentives receivables | |
Research and Development incentives receivables | 16. Research and Development incentives receivables The table below illustrates the R&D incentives receivables related captions in the balance sheet at December 31, 2019, 2018 and 2017: December 31, 2019 2018 2017 (Euro, in thousands) Non-current R&D incentives receivables € 93,407 € 73,443 € 64,001 Current R&D incentives receivables 21,949 11,203 11,782 Total R&D incentives receivables € 115,356 € 84,646 € 75,783 The R&D incentives receivables are future expected refunds or tax deductions resulting from R&D incentives on research and development expenses in France and Belgium. Non-current R&D incentives receivables are reported at their net present value and are therefore discounted over the period until maturity date. The table below provides detailed information on the maturity of the non-current R&D incentives receivables reported in our balance sheet at December 31, 2019. Non-current R&D incentives receivables December 31, 2019 Maturity date 2021 2022 2023 2024 2025-2029 Total (Euro, in thousands) French non-current R&D incentives receivables - discounted value € 9,668 € 10,223 € 11,913 € 31,804 Belgian non-current R&D incentives receivables - discounted value 4,881 5,734 7,534 € 10,190 € 33,263 61,603 Total non-current R&D incentives receivables - discounted value € 14,549 € 15,957 € 19,447 € 10,190 € 33,263 € 93,407 |
Trade and other receivables and
Trade and other receivables and other current assets | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other receivables and other current assets | |
Trade and other receivables and other current assets | 17. Trade and other receivables and other current assets December 31, 2019 2018 2017 (Euro, in thousands) Trade receivables € 39,603 € 9,206 € 22,133 Prepayments 292 142 543 Other receivables 14,114 9,261 5,289 Trade and other receivables 54,009 18,609 27,966 Inventories 255 276 279 Accrued income 4,443 3,863 2,584 Deferred charges 4,439 4,104 3,825 Other current assets 9,138 8,244 6,688 Total trade and other receivables & other current assets € 63,147 € 26,852 € 34,653 The carrying amount of trade and other receivables approximates their fair value. Other current assets mainly included accrued income from subsidy projects and deferred charges. On December 31, 2019, we did not have any provision for expected credit losses. |
Current financial investments
Current financial investments | 12 Months Ended |
Dec. 31, 2019 | |
Current financial investments | |
Current financial investments | 18. Current financial investments On December 31, 2019, our current financial investments amounted to €3,919.2 million compared to nil at December 31, 2018 and at December 31, 2017. These current financial investments include a short-term bond fund and money market funds. The short-term bond fund has a minimum recommended investment horizon of six months. The money market funds are highly liquid investments that can be readily convertible to cash and are subject to an insignificant risk of changes in value but they cannot be classified as cash equivalents because they are not used by us for meeting short-term cash commitments. On December 31, 2019, our current financial investments included $850.5 million held in USD, which could generate a foreign currency exchange gain or loss in our financial results in accordance with the fluctuation of the EUR/USD exchange rate as our functional currency is EUR. We refer to note 31 for more information on these current financial investments. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2019 | |
Cash and cash equivalents. | |
Cash and cash equivalents | 19. Cash and cash equivalents December 31, 2019 2018 2017 (Euro, in thousands) Cash at banks € 907,939 € 358,016 € 288,052 Term deposits 953,677 733,537 713,446 Money market funds — 199,243 149,711 Cash on hand — — 3 Total cash and cash equivalents € 1,861,616 € 1,290,796 € 1,151,211 As at December 31, 2019, the money market funds were no longer classified as cash equivalents but as current financial investments because we no longer used them for meeting short-term cash commitments. Cash and cash equivalents may comprise 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 monitors and optimizes our liquidity position. 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 €953.7 million of term deposits which all had an original maturity longer than three months. All cash and cash equivalents are available upon maximum three month notice period and without significant penalty. 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. On December 31, 2019 our cash and cash equivalents included $656.9 million held in U.S.dollars, which could generate a foreign currency 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. |
Share capital
Share capital | 12 Months Ended |
Dec. 31, 2019 | |
Share capital | |
Share capital | 20. Share capital 2019 2018 2017 (Euro, in thousands) On January 1 € 236,540 € 233,414 € 223,928 Share capital increase 55,189 19,090 25,323 Costs of capital increase (4,447) (15,964) (15,837) Share capital on December 31, € 287,282 € 236,540 € 233,414 Aggregate share capital € 349,789 € 294,600 € 275,510 Costs of capital increase (accumulated) (62,507) (58,060) (42,096) Share capital on December 31, € 287,282 € 236,540 € 233,414 Costs of capital increases are netted against the proceeds of capital increases, in accordance with IAS 32—Financial instruments: disclosure and presentation. HISTORY OF SHARE CAPITAL The history of the share capital of Galapagos NV between January 1, 2017 and December 31, 2019 is as follows: Date Share capital Share capital Number of Aggregate Aggregate January 1, 2017 46,256 € 250,187 April 6, 2017 € 1,337 247 April 21, 2017 € 23,331 4,313 June 20, 2017 281 52 September 21, 2017 152 28 November 23, 2017 222 41 December 31, 2017 50,937 275,510 March 20, 2018 1,613 298 June 20, 2018 556 103 September 17, 2018 2,961 October 3, 2018 733 135 November 23, 2018 167 31 December 31, 2018 54,466 294,600 March 20, 2019 808 149 June 20, 2019 1,127 208 August 23, 2019 September 18, 2019 1,632 302 November 6, 2019 14,162 2,618 November 25, 2019 515 95 December 31, 2019 64,667 € 349,789 On December 31, 2019, Galapagos NV’s share capital amounted to €349,789 thousand, represented by 64,666,802 shares. All shares were issued, fully paid up and of the same class. All of the share issuances listed above were for cash consideration. The below table summarizes the capital increases for the years 2017, 2018 and 2019. (Euro, in thousands, except share data) Number of shares Share Share Share capital Average Closing (in Euro/ warrant) (in Euro/ share) On January 1, 2017 46,256,078 € 223,928 € 649,135 € 873,063 April 6, 2017 : exercise of warrants 247,070 1,337 2,697 4,034 16.33 84.60 April 21, 2017 : U.S. public offering ADSs (fully paid) 4,312,500 23,331 340,593 363,924 81.34 Underwriter discounts and offering expenses (paid) (15,790) (15,790) Offering expenses still to be paid at December 31, 2017 (47) (47) Total U.S. public offering 4,312,500 7,494 340,593 348,087 June 20, 2017 : exercise of warrants 52,030 281 350 632 12.14 70.66 September 21, 2017 : exercise of warrants 28,100 152 117 269 9.55 84.62 November 23, 2017 : exercise of warrants 41,000 222 132 354 8.63 77.53 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 September 17, 2018 : U.S. public offering ADSs (fully paid) 2,961,373 16,021 280,167 296,188 Underwriter discounts and offering expenses (paid) (15,964) (15,964) Total U.S. public offering 2,961,373 57 280,167 280,224 99.68 October 3, 2018 : exercise of warrants 135,485 733 1,281 2,014 14.86 94.32 November 23, 2018 : exercise of warrants 30,800 167 215 382 12.40 88.90 On December 31, 2018 54,465,421 236,540 1,277,780 1,514,320 March 20, 2019 : exercise of warrants 149,370 808 2,673 3,481 23.30 90.32 June 20, 2019 : exercise of warrants 208,310 1,127 3,198 4,325 20.76 113.55 August 23, 2019 : share subscription by Gilead Ordinary shares (fully paid) 6,828,985 36,945 923,142 960,087 148.90 Derecognition of financial liability from share subscription agreement 56,749 56,749 Underwriter discounts and offering expenses (paid) (4,447) (4,447) Total share subscription by Gilead 6,828,985 32,498 979,891 1,012,389 September 18, 2019 : exercise of warrants 301,745 1,632 5,043 6,675 22.12 145.25 November 6, 2019 : exercise of warrant A by Gilead Exercise of warrant A 2,617,791 14,162 353,873 368,035 Derecognition of financial liability related to warrant A 78,953 Total exercise of warrant A by Gilead 2,617,791 14,162 432,826 368,035 140.59 170.75 November 25, 2019 : exercise of warrants 95,180 515 2,172 2,687 28.23 172.95 On December 31, 2019 64,666,802 € 287,282 € 2,703,583 € 2,911,912 Other information Ordinary shares Total Par value of shares (€) 5.41 5.41 The board of directors is authorized for a period of five years starting from the date of publication in the Annexes to the Belgian State Gazette of the shareholders’ resolution that granted the renewed authorization, to increase the share capital of Galapagos NV within the framework of the authorized capital through contributions in kind or in cash, with limitation or cancellation of the shareholders’ preferential subscription rights. Said authorization can be renewed. The authorized capital of Galapagos consists of two parts. A general authorization for capital increases up to 20% of the share capital at the time of convening the shareholders’ meeting of October 22, 2019 (i.e. €67,022,402.04) was renewed and is valid for a period of five years from the date of publication of this renewal in the Annexes to the Belgian State Gazette, i.e. November 13, 2019. A specific authorization for capital increases of more than 20% and up to 33% of the share capital at the time of the convening the shareholders' meeting of April 25, 2017 (i.e. €82,561,764.93), was renewed and is valid for a period of five years from the date of publication of this renewal in the Annexes to the Belgian State Gazette, i.e. May 31, 2017. This specific part of the authorized capital can, however, only be used in a number of specific circumstances and upon a resolution of the board of directors that all independent directors (within the meaning of article 526 ter of the Belgian Companies Code, resp. article 7:87 of the New Belgian Companies Code) approve. The board of directors is currently not authorized to increase the share capital after notification by the FSMA (Financial Services and Markets Authority) of a public takeover bid on Galapagos NV’s shares. As of December 31, 2019, an amount of €67,022,402.04 still remained available under the general part of the authorized capital and an amount of €13,717,929.80 remained available under the specific part of the authorized capital. |
Deferred tax
Deferred tax | 12 Months Ended |
Dec. 31, 2019 | |
Deferred tax | |
Deferred tax | 21. Deferred tax December 31, 2019 2018 2017 (Euro, in thousands) Recognized deferred tax assets and liabilities Assets € 4,205 € 2,514 € 1,978 Liabilities € — € — € — Deferred tax assets unrecognized € 289,833 € 223,377 € 164,079 Deferred taxes in the consolidated statement of operations € 1,158 € 535 € 20 Tax benefit arising from previously unrecognized tax assets used to reduce deferred tax expense (+) 1,537 1,973 414 Deferred tax expenses relating to change in tax rates — — (181) Deferred tax expenses relating to use of previously recognized deferred tax assets (379) (1,438) (213) The total amount of tax attributes and deductible temporary differences at December 31, 2019 amounted to €1,179.0 million. This is composed of i) consolidated tax losses carried forward and deductible temporary differences at December 31, 2019 amounting to €953.3 million (2018: € 688.7 million; 2017: € 567 million), and (ii) innovation income deduction and investment deduction carried forward at December 31, 2019 amounting to €225.7 million (2018: €196.4 million; 2017: €107.4 million). The available statutory tax losses carried forward that can be offset against future statutory taxable profits amounted to €374.1 million on December 31, 2019. These statutory tax losses can be compensated with future statutory profits for an indefinite period except for an amount of €7.2 million in Croatia and the United States with expiry date between 2020 and 2028. On December 31, 2019, the available tax losses carried forward in Galapagos NV (Belgium) amounted to €3 07.7 million. In addition to the latter, Galapagos NV (Belgium) also benefits from the Belgian innovation income deduction regime which led to report, on December 31, 2019, a carried forward tax deduction of €224 .7 million (2018: €195.4 million; 2017: €106.4 million ) that can also be offset against future statutory taxable results. In addition, Galapagos NV (Belgium) also has available investment deduction carried forward of €1 million (2018 and 2017: €1 million) that can be offset against future taxable profits. There is no limit in time for the innovation income deduction and investment deduction carried forward. With the exception of 2019, we have a history of losses. Excluding the impact of possible sales related revenues for filgotinib (which is subject to regulatory approval), we forecast to continue incurring taxable losses in the foreseeable future as we continue to invest in clinical and preclinical development programs and discovery platforms. Consequently, no deferred tax asset was set up as at December 31, 2019, except for two subsidiaries operating on a cost plus basis and for our fee-for-service business for which deferred tax assets were recognized for €4.2 million (2018: €2.5 million and 2017: €2.0 million). |
Lease liabilities
Lease liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Lease liabilities. | |
Lease liabilities | 22. Lease liabilities On adoption of IFRS 16 on January 1, 2019, we recognized lease liabilities in relation to leases, which had previously been classified as ‘operating leases’ under IAS 17. December 31, December 31, 2019 2018 2017 2019 2018 2017 (Euro, in thousands) (Euro, in thousands) Lease payments Present value of lease payments Lease liabilities Within one year € 6,189 € 9 € 5,826 € 9 In the second to fifth years inclusive 16,320 15,783 After five years 3,844 3,775 € 26,353 - € 9 € 25,384 - € 9 Less future finance charges Present value of lease liabilities € 25,384 - € 9 Less amount due for settlement within 12 months Amount due for settlement after 12 months € 19,558 - € - |
Trade and other liabilities
Trade and other liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other liabilities | |
Trade and other liabilities | 23. Trade and other liabilities December 31, 2019 2018 2017 (Euro, in thousands) Trade and other liabilities € 142,510 € 68,038 € 47,122 Other non-current liabilities 6,989 1,578 1,662 Accrued charges 923 890 1,159 Total trade and other liabilities € 150,422 € 70,506 € 49,942 |
Deferred income
Deferred income | 12 Months Ended |
Dec. 31, 2019 | |
Deferred income | |
Deferred income | 24. Deferred income The table below illustrates the deferred income captions in the balance sheet as at December 31, 2019 and 2018. December 31, 2019 2018 2017 (Euro, in thousands) Deferred income related to contracts Gilead collaboration agreement for filgotinib € 780,261 € 145,798 € 213,981 Gilead collaboration agreement for drug discovery platform (1) 2,220,013 AbbVie collaboration for CF 3,223 Servier collaboration agreement for osteoarthritis 5,362 Deferred income related to contracts in our fee-for-service segment 362 471 248 Other deferred income (grants) 10 309 301 Total deferred income ( long term & current) € 3,000,646 € 149,801 € 219,892 (1) This amount comprises an issuance liability for subsequent warrant B of €16,184 thousand. The movement in the non-current and current deferred income is detailed in the table below. Total Gilead collaboration agreement for filgotinib Gilead collaboration agreement for GLPG1690 Gilead collaboration agreement for drug discovery platform (2) AbbVie collaboration agreement for CF Servier collaboration agreement for osteoarthritis Deferred income related to contracts in our fee-for-service segment Other (Euro, in thousands) On Januari 1, 2017 € 285,612 € 285,313 € 47 € 252 Upfront/license fees received 6,000 € 6,000 Revenue recognition of upfront/license fees (71,971) (71,333) (638) Other movements 250 202 48 On December 31, 2017 219,892 213,981 € — € — € — 5,362 248 300 Reclassified from equity following adoption of IFRS 15 83,220 43,832 44,749 (5,362) Upfront received 38,874 38,874 Milestones received 20,965 12,417 8,548 Revenue recognition of upfront (148,985) (96,809) (52,176) Revenue recognition of milestones (64,394) (27,623) (36,771) Other movements 229 222 7 On December 31, 2018 149,801 145,798 — — 3,224 — 471 308 Upfront received and impact of initial valuation of share subscription 3,655,416 641,663 666,967 2,346,787 Milestones received 49,727 27,317 22,410 Significant financing component 6,900 6,900 Revenue recognition of upfront (1,009,663) (260,207) (666,967) (80,918) (1,570) Revenue recognition of milestones (51,156) (27,092) (24,064) Catch-up effect on closing date (1) 245,883 245,883 Other movements (46,262) (45,856) (109) (297) On December 31, 2019 € 3,000,646 € 780,261 € — € 2,220,013 € — € — € 362 € 10 (1) Following the contract amendment, the revenue recognized for filgotinib for the year ended December 31, 2019 included a negative catch-up effect resulting from the decrease in the percentage of completion applied to previously received upfront and milestones for that program. (2) The upfront received and the outstanding balance at December 31, 2019 comprise the issuance liabilities for the warrants and the upfront payment allocated to the drug discovery platform. Other movements include the derecognition of warrant issuance liabilities through the share premium account. The outstanding deferred income balance at December 31, 2019 included €780.3 million related to the collaboration agreement with Gilead for filgotinib (€594.7 million classified as long term deferred income), €2,2 20 . 0 million, including €16.2 million warrant issuance liability related to subsequent warrant B, related to the collaboration agreement with Gilead for the drug discovery platform (€1,991.6 million classified as long term deferred income) and €0.4 million related to our fee-for-service segment. We refer to note 6 for a detail of the allocation of the transaction price received from Gilead. The adoption of IFRS 15 on January 1, 2018, resulted in a timing difference of revenue recognition between IAS 18 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. The outstanding deferred income balance at December 31, 2018 was all short term and included €145.8 million deferred income related to filgotinib, €3.2 million deferred income related to the collaboration agreement with AbbVie for CF, €0.5 million related to our fee-for-service segment , and €0.3 million deferred grant income. |
Operating Cash Flow
Operating Cash Flow | 12 Months Ended |
Dec. 31, 2019 | |
Consolidated Statement of Cash Flows | |
Operating Cash Flow | 25 . Operating Cash Flow The following table details the adjustments related to the operating cash flow: December 31, 2019 2018 2017 (Euro, in thousands) Adjustment for non-cash transactions Depreciation and amortization € 12,448 € 5,081 € 4,285 Impairment loss 1,083 Share-based compensation expenses 38,297 26,757 16,536 Decrease (-)/increase in retirement benefit obligations and provisions (156) 99 23 Unrealized exchange losses/gains (-) and non-cash other financial expenses 11,169 (10,063) 27,457 Discounting effect of deferred income 6,900 Fair value re-measurement of share subscription agreement and warrants 181,644 Net fair value adjustment current financial investments 3,081 Fair value adjustment financial assets held at fair value through profit or loss (5,355) (1,203) Total adjustment for non-cash transactions € 248,027 € 21,753 € 48,301 Adjustment for items to disclose separately under operating cash flow Interest expense € 1,302 € 780 € 936 Interest income (9,247) (5,219) (3,045) Tax expense 214 50 198 Total adjustment for items to disclose separately under operating cash flow € (7,731) € (4,389) € (1,912) Adjustment for items to disclose under investing and financing cash flows Gain on sale of assets € (2) € (668) € Interest income on current financial investments (5,059) Total adjustment for items to disclose separately under investing and financing cash flow € (5,061) € (668) € — Change in working capital other than deferred income Decrease in inventories € 20 € 3 € 22 Increase in receivables (67,263) (76) (27,656) Increase in liabilities 79,940 19,996 14,772 Total change in working capital other than deferred income € 12,698 € 19,922 € (12,862) |
Off-balance sheet arrangements
Off-balance sheet arrangements | 12 Months Ended |
Dec. 31, 2019 | |
Off-balance sheet arrangements | |
Off-balance sheet arrangements | 26. Off-balance sheet arrangements CONTRACTUAL OBLIGATIONS AND COMMITMENTS We entered into lease agreements for offices, laboratories and cars. As a consequence of the adoption of IFRS 16 Leases, on 1 January 2019, lease obligations in the scope of the new standard are presented as lease liabilities in the statements of financial position and no longer disclosed separately as off-balance sheet commitments. We refer to note 22 for a breakdown of our lease liabilities. On December 31, 2019, we had outstanding obligations for future purchase commitments, which become due as follows: Total Less than 1 - 3 3 - 5 More than 5 (Euro, in thousands) Purchase commitments € 251,670 € 175,006 € 70,675 € 5,989 € — On December 31, 2019 we were committed to two leases which have not yet started. The total future cash outflows for leases that had not yet commenced were as follows: Total Less than 1 - 3 3 - 5 More than 5 (Euro, in thousands) Lease commitments not yet commenced € 8,986 € 5,793 € 1,502 € 1,502 € 188 In addition we have engaged a property developer for the construction of the new building in Leiden. On December 31, 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 € 27,704 € 4,722 € 10,024 € 6,234 € 6,724 Purchase commitments (*) 222,033 121,139 81,879 19,014 — Total contractual obligations & commitments € 249,737 € 125,862 € 91,903 € 25,248 € 6,724 (*) Subsequent to the issuance of our consolidated financial statements for the year ended December 31, 2018, we noted that the total of our purchase commitments as disclosed in note 26 to our consolidated financial statements for the year ended December 31, 2018 was understated by €22.5 million. In addition, the split based on the expected due date was not presented correctly. Management assessed the materiality of the errors from a quantitative and qualitative perspective and concluded that the correction was not material to our previously issued consolidated financial statements. We elected to adjust the historical consolidated financial information presented in this disclosure note to reflect the correction of this error. Since the revisions were not material, no amendments to previously filed reports were required. The total purchase commitments due within 1 year were understated by €14.6 million, those due within 1-3 year were understated by €29.2 million and the ones becoming due within 3-5 years were overstated by €21.3 million. Each affected item within this line relating to this correction has been adjusted. 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 €614.1 million at December 31, 2019 (€74.0 million at December 31, 2018, €129.0 million at December 31, 2017), for which we have direct purchase commitments of €27.5 million at December 31, 2019 (€20.3 million at December 31, 2018, €10.1 million at December 31, 2017) reflected in the tables above. |
Contingent assets and liabiliti
Contingent assets and liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Contingent assets and liabilities | |
Contingent assets and liabilities | 27. Contingent assets and liabilities On March 13, 2014, we announced the signing of a definitive agreement to sell the service division operations to Charles River Laboratories International, Inc. or CRL for a total consideration of up to €134 million. CRL agreed to pay us an immediate cash consideration of €129 million. The potential earn-out of €5 million due upon achievement of a revenue target 12 months after transaction closing was not achieved. Approximately 5% of the total consideration, including price adjustments, was being held on an escrow account. Four claims have been introduced by CRL, which have all been settled for a total amount of €1.3 million. In the first half of 2017 the remaining balance of €6.6 million was released in full, as final agreement between the parties was reached. Following the divestment, we remained guarantor until early February 2017 in respect of the lease obligations for certain U.K. premises. Finally, following common practice, we have given customary representations and warranties which are capped and limited in time (since April 1, 2016, CRL can only introduce a claim covered by the Tax Deed (during a period of 5 years), other claims related to the sale cannot be submitted anymore). In December 2015, we entered into a license and collaboration agreement to co-develop filgotinib with Gilead in rheumatoid arthritis, Crohn’s disease, ulcerative colitis and other indications. Due to the revised license and collaboration agreement related to filgotinib, that became effective in August 2019, we are responsible for funding 50% of the associated global development costs of the program. We have retained a mechanism to give us cost protection as we are no longer obliged to bear any further costs if they exceed the joint predetermined level. In addition, we are eligible to receive $640 million in development and regulatory milestones, sales-based milestone payments of up to $600 million and tiered royalties ranging from 20-30% payable in territories outside of Belgium, France, Germany, Italy, Luxembourg, the Netherlands, Spain and the United Kingdom. In addition, we achieved two milestones in December 2019 totaling $30 million. As a result of the Option, License and Collaboration agreement signed with Gilead in July 2019, we share further development costs for GLPG1690 equally with Gilead. We are also entitled to an additional milestone for GLPG1690 upon approval in the United States and we are eligible to receive tiered royalties ranging from 20-24% on net sales of GLPG1690 by Gilead in all countries outside Europe. As explained in the summary of the significant transaction in note 2 to our consolidated financial statements, Gilead received exclusive option rights to acquire a license on compounds. Exercising such an option would trigger an opt-in payment, a 50-50 cost share mechanism for the future development activities, development and sales milestones and royalties. |
Warrant Plans
Warrant Plans | 12 Months Ended |
Dec. 31, 2019 | |
Warrant plans | |
Warrant plans | 28. Warrant plans Presented below is a summary of warrant activities for the reported periods. Various warrant plans were approved for the benefit of our employees, and for directors and independent consultants of Galapagos NV. For warrant plans issued prior to 2011, the warrants offered to the employees and independent consultants vest according to the following schedule: 10% of the warrants vest on the date of the grant; an additional 10% vest at the first anniversary of the grant; an additional 20% vest at the second anniversary of the grant; an additional 20% vest at the third anniversary of the grant; and an additional 40% vest at the end of the third calendar year following the grant. The warrants granted under warrant plans created from 2011 onwards vest at the end of the third calendar year following the year of the grant, with no intermediate vesting, with the exception of the warrants granted under Warrant Plan 2015 (B), Warrant Plan 2015 RMV, and Warrant Plan 2016 (B), which vest on the third anniversary of the notary deed enacting the acceptance and issuance of the warrants. The warrants offered to directors vest over a period of 36 months at a rate of 1/36 th per month. Warrants cannot be exercised before the end of the third calendar year following the year of the grant, except for warrants granted under Warrant Plan 2015 (B), Warrant Plan 2015 RMV, and Warrant Plan 2016 (B), which become exercisable on the third anniversary of the notary deed enacting the acceptance and issuance of the warrants. In the event of a change of control over Galapagos NV, all outstanding warrants vest immediately and will be immediately exercisable. The table below sets forth a summary of warrants outstanding and exercisable at December 31, 2019, per warrant plan: Outstanding Outstanding Exercisable per Granted Exercised Forfeited Expired per per Allocation Expiry Exercise January 1, during during during during December 31, December 31, Warrant plan date date price (€) 2019 year year year year 2019 2019 2006 BNL 21/12/2007 20/12/2020 7.12 1,050 1,050 1,050 2007 28/06/2007 27/06/2020 8.65 29,374 (29,374) — — 2007 RMV 25/10/2007 24/10/2020 8.65 24,550 (9,570) 14,980 14,980 2008 26/06/2008 25/06/2021 5.6 77,100 (75,735) 1,365 1,365 2011 23/05/2011 22/05/2019 9.95 37,500 (37,500) — — 2012 03/09/2012 02/09/2020 14.19 110,040 (30,000) 80,040 80,040 2013 16/05/2013 15/05/2021 19.38 195,560 (75,126) 120,434 120,434 2014 25/07/2014 24/07/2022 14.54 347,560 (95,220) 252,340 252,340 2014 (B) 14/10/2014 13/10/2022 11.93 60,000 (60,000) — — 2015 30/04/2015 29/04/2023 28.75 515,053 (232,580) 282,473 282,473 2015 (B) 22/12/2015 21/12/2023 49.00 399,000 (69,500) 329,500 329,500 2015 RMV 22/12/2015 21/12/2023 49.00 97,500 (40,000) 57,500 57,500 2016 01/06/2016 31/05/2024 46.10 504,250 504,250 2016 RMV 01/06/2016 31/05/2024 46.10 120,000 120,000 2016 (B) 20/01/2017 19/01/2025 62.50 150,000 150,000 2017 17/05/2017 16/05/2025 80.57 595,500 595,500 2017 RMV 17/05/2017 16/05/2025 80.57 127,500 127,500 2018 19/04/2018 18/04/2026 79.88 1,097,745 (12,500) 1,085,245 2018 RMV 19/04/2018 18/04/2026 79.88 137,500 137,500 2019 10/04/2019 09/04/2027 95.11 1,504,940 (18,250) 1,486,690 2019 RMV 10/04/2019 09/04/2027 95.11 194,750 194,750 Total 4,626,782 1,699,690 (754,605) (30,750) — 5,541,117 1,139,682 Weighted average exercise Warrants price (Euro) Outstanding on January 1, 2017 3,466,407 € 27.1 Exercisable on December 31, 2016 669,704 10.3 Granted during the period 873,000 77.5 Forfeited during the year — Exercised during the period (368,200) 14.4 Expired during the year (400) 19.4 Outstanding on December 31, 2017 3,970,807 € 39.3 Exercisable on December 31, 2017 763,344 13.7 Granted during the period 1,235,245 79.9 Forfeited during the year (12,000) 43.2 Exercised during the period (567,270) 13.5 Expired during the year — Outstanding on December 31, 2018 4,626,782 € 53.3 Exercisable on December 31, 2018 882,734 14.0 Granted during the period 1,699,690 95.1 Forfeited during the year (30,750) 88.9 Exercised during the period (754,605) 22.8 Expired during the year — Outstanding on December 31, 2019 5,541,117 € 70.1 Exercisable on December 31, 2019 1,139,682 30.2 The table below sets forth the inputs into the valuation of the warrants. 2019 2019 RMV 2018 2018 RMV 2017 2017 RMV April 19 April 19 April 18 April 18 May 17 May 17 Exercise Price (€) € 95.11 € 95.11 € 79.88 € 79.88 € 80.57 € 80.57 Weighted average share price at acceptance date (€) € 107.05 € 107.45 € 84.88 € 84.88 € 68.67 € 68.67 Weighted average fair value on the acceptance date (€) € 40.04 € 40.05 € 38.39 € 38.39 € 26.86 € 26.80 Weighted average estimated volatility (%) 35.86 35.63 39.44 39.44 40.06 40.08 Weighted average expected life of the warrant (years) 6 6 8 8 8 8 Weighted average risk free rate (%) (0.27) (0.28) 0.51 0.51 0.33 0.29 Expected dividends None None None None None None Warrant Plans The exercise price of the warrants is determined pursuant to the applicable provisions of the Belgian Companies Code. The weighted average estimated volatility is calculated on the basis of the implied volatility of the share price over the expected life of the warrants. The weighted average expected life of the warrant is calculated as the estimated duration until exercise, taking into account the specific features of the plans. Our share based compensation expense in 2019 amounted to €38,297 thousand (2018: €2 6,757 thousand; 2017: €16,536 thousand). The following table provides an overview of the outstanding warrants per category of warrant holders at December 31, 2019, 2018 and 2017. Category December 31, 2019 2018 2017 (in number of warrants) Non-executive directors 222,600 216,780 216,060 Executive team 2,171,874 2,139,374 2,039,374 Other 3,146,643 2,270,628 1,715,373 Total warrants outstanding 5,541,117 4,626,782 3,970,807 The outstanding warrants at the end of the accounting period have an average exercise price of €7 0.09 (2018: €53.30; 2017: €39.32) and a weighted average remaining expected life of 1,439 days (2018: 1,500 days; 2017: 1,441 days). |
Related parties
Related parties | 12 Months Ended |
Dec. 31, 2019 | |
Related parties | |
Related parties | 29. Related parties Relationship and transactions with entities with (joint) control of, or significant influence over, Galapagos Gilead Gilead is exercising significant influence over Galapagos as from the equity subscription on August 23, 2019. As a result of the equity subscription we received a transparency notification from Gilead on August 28, 2019 confirming they held 22.04% of the then issued and outstanding shares of Galapagos. The presumption of significant influence is also confirmed by the fact that Gilead has the right, for as long as it holds more than 20% of Galapagos’ share capital, to appoint two Investor Board Designees to Galapagos’ board of directors. The following balances are outstanding at the end of the reporting period in relation to Gilead: December 31, 2019 (Euro, in thousands) Trade and other receivables € 31,645 Trade and other payables € 39,100 The trade and other receivables balances mainly relate to €13.4 million cost reimbursement for GLPG1690 and €18.2 million relating to the development milestone payment triggered by the NDA submission in December 2019. The outstanding liabilities mainly relate to the cross charges relating to the development of filgotinib in the fourth quarter of 2019 (€30.9 million) and €8.2 million related to sales and marketing expenses. On July 14, 2019, we entered into a 10-year global research and development collaboration with Gilead. In connection with our entry into the option, license and collaboration agreement, we received an upfront payment of $3.95 billion (€3.6 billion) and a €960 million ($1.1 billion) equity investment from Gilead (see note 20). In connection with this share subscription agreement, we recognized a deferred income and an offsetting current financial asset (derivative) of €85.6 million upon signing of the share subscription agreement with Gilead as required under IFRS 9. The deferred income has been added to the transaction price at inception of the agreement. In connection with entering into the option, license and collaboration agreement in July 2019, we also amended certain terms of our existing agreement with Gilead governing filgotinib. In addition, the extraordinary general meeting of shareholders of October 22, 2019 approved the issuance of warrant A and initial warrant B to Gilead allowing them to further increase its ownership of Galapagos to up to 29.9% of the company’s issued and outstanding shares. Subsequent warrant B is still subject to approval by an extraordinary general meeting of shareholders. This extraordinary general meeting of shareholders shall take place between 57 and 59 months of the closing of the subscription agreement and this warrant will have substantially similar terms, including as to exercise price, to the initial warrant B. On November 6, 2019 Gilead exercised warrant A, which resulted in an additional equity investment of €368.0 million. By exercising warrant A Gilead increased its ownership in Galapagos to 25.10% of the then outstanding shares. Gilead further increased its ownership to 25.84% at December 31, 2019. This has resulted in a total transaction price of €3,655 million that has been allocated to the three performance obligations and the warrant issuance liabilities (see note 6). During 2019 we already recognized in revenue the entire transaction price allocated to the license on GLPG1690 (€667 million), €81 million relating to the performance obligation for the drug discovery platform and a total of €41 million representing the total impact on our revenues coming from the initial and amended filgotinib performance obligation. The latter consists of upfront payments and milestone payments that were recognized in accordance with the percentage of completion of the underlying performance obligation. Furthermore, we recognized €17.7 million of cost reimbursements from Gilead with respect to the development of GLPG1690 as a decrease of the related expenses (on the line research and development expenditure). An amount of €72.0 million relating to cross charges from Gilead relating to filgotinib was recognized as expense on the line research and development expenditure. Finally, we recognized €8.2 million of sales & marketing expenses relating to our 50/50 cost share mechanism with Gilead for expenses incurred in preparation for the co-promotion activities for filgotinib. As at December 31, 2019 we have two outstanding performance obligations under IFRS 15 towards Gilead, being the performance obligation related to our drug discovery platform and the performance obligation relating to filgotinib. This results in an outstanding deferred income balance of €2.2 billion for the drug discovery platform (including the warrant issuance liability relating to subsequent warrant B) and €780 million for the performance obligation relating to filgotinib. A detailed explanation of our transactions with Gilead in 2019 can be found in the section titled Agreements with major Galapagos NV shareholders. There are no other shareholders or other entities who, solely or jointly, control Galapagos or exercise significant influence over Galapagos. Relationship and transactions with subsidiaries Please see Note 30 for an overview of the consolidated companies of the group, which are all wholly-owned subsidiaries of Galapagos NV. Intercompany transactions between Galapagos NV and its subsidiaries, and amongst the subsidiaries, have been eliminated in the consolidation and are not disclosed in this note. Relationship and transactions with key management personnel Our key management personnel consists of the members of our executive committee and the members of our board of directors. All amounts mentioned in this section are based on expenses recognized in the financial statements for the relevant financial year. Remuneration of key management personnel On December 31, 2019, our executive committee had five members: Mr. Onno van de Stolpe, Mr. Bart Filius, Dr. Piet Wigerinck, Dr. Andre Hoekema and Dr. Walid Abi-Saab. They provide their services to us on a full-time basis. On December 31, 2019, our board of directors consisted of eight members: Mr. Onno van de Stolpe, Dr. Raj Parekh, Mr. Howard Rowe, Ms. Katrine Bosley, Dr. Mary Kerr, Mr. Peter Guenter, Mr. Daniel O’Day and Dr. Linda Higgins. Dr. Werner Cautreels’ and Dr. Christine Mummery’s mandates as directors expired immediately after the annual shareholders’ meeting of April 30, 2019. Only the CEO is a member of both the executive committee and the board of directors. Our CEO does not receive any special remuneration for his board membership, as this is part of his total remuneration package in his capacity as member of the executive committee. The remuneration package of the members of key management personnel comprises: Year ended December 31, 2019 2018 2017 Remuneration of key management personnel: Euro, in thousands (except for the number of warrants and RSUs) Short-term benefits for executive committee members as a group € 14,129 € 2,909 € 2,477 Gross salary 2,121 1,920 1,639 Employer social security on gross salary 61 125 31 Cash bonus (*) 1,230 757 697 Exceptional bonus 10,500 Employer social security on exceptional bonus 108 Other short-term benefits 109 107 110 Long-term benefits for executive committee members as a group (1) 1,874 1,812 1,217 Board fees and other short-term benefits for directors Raj Parekh 90 92 91 Harrold van Barlingen (2) 15 45 Howard Rowe 55 53 45 Werner Cautreels (3) 15 48 55 Katrine Bosley 45 45 45 Christine Mummery (3) 13 40 41 Mary Kerr 45 46 41 Peter Guenter (4) 30 Daniel O'Day (5) Linda Higgins (5) Post-employment benefits (6) 323 305 248 Total benefits excluding warrants and RSUs (7) € 16,619 € 5,346 € 4,305 Number of warrants granted in the year Executive committee members as a group 315,000 350,000 475,000 Raj Parekh 15,000 15,000 15,000 Harrold van Barlingen (2) 7,500 Howard Rowe 7,500 7,500 7,500 Werner Cautreels (3) 7,500 7,500 Katrine Bosley 7,500 7,500 7,500 Christine Mummery (3) 7,500 7,500 Mary Kerr 7,500 7,500 7,500 Peter Guenter (4) 7,500 Daniel O'Day (5) Linda Higgins (5) Total number of warrants granted in the year 360,000 402,500 535,000 Total cost of warrants granted in the year € 14,236 € 15,507 € 15,699 Number of RSUs granted in the year (8) 183,450 Total number of RSUs granted in the year 183,450 (1) Only executive committee members are granted long-term benefits. Pursuant to the Senior Management Bonus Scheme, these consist of the deferred part of the bonus from 3 years ago (2) Dr. Van Barlingen's director's mandate expired on April 24, 2018 (3) Director's mandate expired on April 30, 2019 (4) Mr. Guenter's director's mandate began on April 30, 2019 (5) Director's mandate began on October 22, 2019 (6) Only executive committee members are granted post-employment benefits (7) For 2018, this amount excludes an amount of €20.1 thousand tax advisory services that is included in the amount of €107 thousand other short-term benefits (8) This is the sum of the RSUs awarded during financial year 2019, excluding the RSUs representing the deferred portion of the bonus for 2019 (still to be granted). Only executive committee members were awarded RSUs (*) For 2017, this amount includes an amount of €5 employer social security OTHER No loans, quasi-loans or other guarantees were given by Galapagos NV or any of its subsidiaries to members of the board and of the executive committee. We have not entered into transactions with our key management personnel, other than as described above with respect to remuneration arrangements relating to the exercise of their mandates as members of the executive committee and the board of directors. |
Consolidated companies as of De
Consolidated companies as of December 31, 2019 | 12 Months Ended |
Dec. 31, 2019 | |
Consolidated companies as of December 31, 2019 | |
Consolidated companies as of December 31, 2019 | 30. Consolidated companies as of December 31, 2019 Year ended December 31, 2019 2018 2017 Name of the subsidiary Country % voting right Change in % % voting right % voting right BioFocus DPI AG in liquidation Switzerland 100% 100% 100% Galapagos Biopharma Belgium BV Belgium 100% 100% Galapagos Biopharma Netherlands B.V. The Netherlands 100% 100% Galapagos Biopharma Spain S.L.U Spain 100% 100% Galapagos Biopharma Italy S.r.l. Italy 100% 100% Galapagos Biopharma Germany GmbH Germany 100% 100% Galapagos B.V. The Netherlands 100% 100% 100% Galapagos Biotech Ltd. (formerly Inpharmatica Ltd.) United Kingdom 100% 100% 100% Galapagos GmbH Switzerland 100% 100% 100% Galapagos, Inc. (formerly Biofocus, Inc.) United States 100% 100% 100% Galapagos NV Belgium Parent company Parent company Parent company Galapagos Real Estate 1 BV Belgium 100% 100% Galapagos Real Estate 2 BV Belgium 100% 100% Galapagos Real Estate Netherlands B.V. The Netherlands 100% 100% Galapagos SASU France 100% 100% 100% Fidelta d.o.o. Croatia 100% 100% 100% Xenometrix, Inc. in liquidation United States 100% 100% 100% In the fourth quarter of 2018 we incorporated two new legal entities in Mechelen, Belgium: Galapagos Real Estate 1 BV and Galapagos Real Estate 2 BV. In 2019 we incorporated the following legal entities: Galapagos Biopharma Belgium BV, Galapagos Biopharma Netherlands B.V., Galapagos Biopharma Spain S.L.U., Galapagos Biopharma Italy S.r.l., Galapagos Biopharma Germany GmbH and Galapagos Real Estate Netherlands B.V. There are no significant restrictions on the group’s ability to access or use assets and settle liabilities of one of the group’s subsidiaries. |
Financial risk management
Financial risk management | 12 Months Ended |
Dec. 31, 2019 | |
Financial risk management | |
Financial risk management | 31. Financial risk management Financial risk factors Our financial risks are managed centrally. Our finance department coordinates the access to national and international financial markets and considers and manages continuously the financial risks concerning our activities. These relate to the financial markets risk, credit risk, liquidity risk and currency risk. There are no other important risks, such as interest rate risk on borrowings, because we have nearly no financial debt and have a strong cash and cash equivalents and current financial investments balance. We do not buy or trade financial instruments for speculative purposes. Categories of financial assets and liabilities: December 31, 2019 2018 2017 (Euro, in thousands) Financial assets held at fair value through profit or loss Equity instruments € 11,275 € 6,000 € 1,754 Current financial investments 3,919,216 — — Financial assets at amortised cost Cash and cash equivalents 1,861,616 1,290,796 1,151,211 Restricted cash (current and non-current) 1,418 1,276 1,158 Trade and other receivables (excl prepayments) 53,717 18,467 27,422 Total financial assets € 5,847,242 € 1,316,539 € 1,181,545 Financial liabilities held at fair value through profit or loss Current financial instruments € 6,198 € — € — Financial liabilities at amortised cost Trade & other liabilities 142,510 68,038 47,122 Other non-current liabilities 6,914 1,502 1,597 Lease liabilities 25,384 — 9 Total financial liabilities € 181,006 € 69,540 € 48,727 The carrying amounts of trade and other payables and trade and other receivables are considered to be the same as their fair values, due to their short-term nature. Financial assets held at fair value through profit or loss Financial assets held at fair value through profit or loss consisted of equity instruments of listed companies and current financial investments. We have no restrictions on the sale of these equity instruments and the assets are not pledged under any of our liabilities. These instruments are classified as financial assets held at fair value adjustment through profit or loss which qualify for level 1 fair value measurement based upon the closing price of the securities on Euronext at each reporting date. The market price of those shares might face fluctuations and might be affected by a variety of factors, such as the global economic situation, the business development of competitors, sector mergers and acquisitions; it is difficult to mitigate this risk. Current financial investments include a short-term bond fund and money market funds in EUR and USD, which all classify for level 1 fair value measurement. Liquidity risk Our current financial investments and cash and cash equivalents amounted to €5,780.8 million on December 31, 2019. Management forecasts our liquidity requirements to ensure that there is sufficient cash to meet operational needs. We have no credit lines. Such forecasting is based on realistic assumptions with regards to milestone and upfront payments to be received, taking into account our past track record, including the assumption that not all new projects that are being planned will be realized. All our current financial investments and cash and cash equivalents have only an insignificant liquidity risk as they are all convertible upon a maximum three month notice period and without incurring a significant penalty. Credit risk The term “credit risk” refers to the risk that counterparty will default on its contractual obligations resulting in financial loss. The trade receivables consist of a limited amount of creditworthy customers, many of which are large pharmaceutical companies, spread over different geographical areas. To limit the risk of financial losses, a policy of only dealing with creditworthy counterparties has been developed. We grant credit to our clients in the framework of our normal business activities. Usually, we require no pledge or other collateral to cover the amounts due. Management continuously evaluates the client portfolio for creditworthiness. All our receivables are considered collectable. We applied the IFRS 9 simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance for all receivables. To measure the expected credit losses, receivables have been grouped based on credit risk characteristics and the days past due. The provision for expected credit losses was not significant given that there have been no credit losses over the last three years and the high quality nature of our customers. Aging balance of receivables that are due, but that are still considered collectable: December 31, 2019 2018 2017 (Euro, in thousands) 60 - 90 days € 87 € 236 € — 90 - 120 days — 12 1 more than 120 days € — € — € — Our cash and cash equivalents are invested primarily in saving and deposit accounts. For banks and financial institutions, only independently rated parties with a minimum rating of ‘A’ are accepted at the beginning of the term. Our current financial investments are also kept within different financial institutions and include short-term bond funds and money market funds with credit ratings ranging from AAA to A- at the beginning of the investment. All of these current financial investments are investments in a basket of funds so there is no individual credit risk involved. Interest rate risk The only variable interest-bearing financial instruments are cash and cash equivalents and current financial investments. Changes in interest rates may cause variations in interest income and expenses resulting from short term interest-bearing assets. Management does not expect the short term interest rates to decrease significantly in the immediate foreseeable future, which limits the interest exposure on our cash and cash equivalents and current financial investments. Effect of interest rate fluctuation A 100 basis point increase in interest rates at balance sheet date would have increased profit or loss, and equity, by approximately €57.8 million (2018: €12.9 million; 2017: €11.5 million); a 100 basis point decrease in interest rates would have decreased profit or loss, and equity, by approximately €57.8 million (2018: €12.9 million; 2017: €11.5 million). Foreign exchange risk We are exposed to foreign exchange risk arising from various currency exposures. Our principal functional currency is euro, but we receive payments from our collaboration partners Gilead and AbbVie in U.S. dollars and acquire some consumables and materials in U.S. dollars, Swiss Francs, GB Pounds and Croatian Kuna. To limit this risk, we attempt to align incoming and outgoing cash flows in currencies other than EUR. In addition, contracts closed by our different entities are mainly in the functional currencies of that entity, except for the collaboration agreements signed with Gilead and AbbVie for which payments are denominated in U.S. dollars. The exchange rate risk in case of a 10% change in the exchange rate amounts to: December 31, 2019 2018 2017 Net book value (Euro, in thousands) Increase in Euros - U.S. Dollars € (133,373) € (27,200) € (21,083) Increase in Euros - GB Pounds 113 100 122 Increase in Euros - CH Francs 538 208 203 Increase in Euros - HR Kunas 650 611 (185) Increase in U.S. Dollars - GB Pounds € (894) € (923) € (831) The exchange rate risk on the U.S. dollar is primarily related to our cash and cash equivalents and current financial investments held in U.S dollars. Capital risk factors We manage our capital to safeguard that we will be able to continue as a going concern. At the same time, we want to ensure the return to our shareholders through the results from our research and development activities. Our capital structure consists of current financial investments, cash and cash equivalents, financial debt (we only have leasing debts as of December 31, 2019), and equity attributed to the holders of our equity instruments, such as capital, reserves and results carried forward, as mentioned in the consolidated statement of changes in equity. We manage our capital structure and make the necessary adjustments in the light of changes of economic circumstances, the risk characteristics of underlying assets and the projected cash needs of the current research and development activities. The adequacy of the capital structure will depend on many factors, including scientific progress in the research and development programs, the magnitude of those programs, the commitments to existing and new clinical CROs, the ability to establish new alliance or collaboration agreements, the capital expenditures, market developments and any future acquisition. Neither Galapagos NV nor any of its subsidiaries are subject to any externally imposed capital requirements, other than those imposed by generally applicable company law requirements. |
Auditor's remuneration
Auditor's remuneration | 12 Months Ended |
Dec. 31, 2019 | |
Auditor's remuneration | |
Auditor's remuneration | 32. Auditor’s remuneration The statutory auditor’s fees for carrying out his mandate at group level amounted to €1,406.8 thousand in 2019 (2018: €414.6 thousand). The fees for audit-related services executed by the statutory auditor, related to the performance of the audit or review of the company’s affiliates financial statements, amounted to €29.2 thousand (2018: nil). Audit-related services executed by persons related to the statutory auditor for carrying out an auditor’s mandate at the level of the Company’s affiliates amounted to €29.2 thousand in 2019 (2018: €27.5 thousand). Other fees related to audit-related fees, in particular related to legal assignments, which generally the auditor provides, amounted to €43.0 thousand in 2019 (2018: €92.1 thousand). Other fees related to non-audit services executed by the statutory auditor, in particular related to services provided ahead of the commercial phase, amounted to €148.2 thousand in 2019. Other fees related to non-audit services executed by persons related to the statutory auditor amounted to €46.6 thousand in 2019 and related to IT services (2018: €134.8 thousand). The audit committee and the board of directors are of the opinion that these non-audit services do not affect the independence of the statutory auditor in the performance of his audit. The abovementioned additional fees were fully approved by the audit committee in accordance with article 133 §6 of the Belgian Companies Code. |
Events after balance sheet date
Events after balance sheet date | 12 Months Ended |
Dec. 31, 2019 | |
Events after balance sheet date | |
Events after balance sheet date | 33. Events after balance sheet date On March 17, 2020, 152,220 warrants were exercised (with an average exercise price of € 35.18 per warrant), of which 15,000 warrants were exercised by our CEO, 15,000 warrants by other members of our executive committee, and 1 7,520 warrants by other members of our board of directors. This resulted in a share capital increase (including issuance premium) of €5,354,538.80 and the issuance of 152,220 new ordinary shares. The closing price of our share on March 17, 2020, was € 141.40 . |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Significant accounting policies | |
Basis Of Presentation And Going Concern Assumption | BASIS OF PREPARATION AND GOING CONCERN ASSUMPTION The consolidated financial statements are prepared in accordance with the International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board (IASB) and the interpretations issued by the IASB’s International Financial Reporting Interpretation Committee. The consolidated financial statements provide a general overview of our activities and the results achieved. They give a true and fair view of our financial position, our financial performance and cash flows, on a going concern basis. |
New Standards and Interpretations Applicable for the Annual Period | NEW STANDARDS AND INTERPRETATIONS APPLICABLE FOR THE ANNUAL PERIOD BEGINNING ON JANUARY 1, 2019 ▪ IFRS 16 Leases The above new applicable standard affected the consolidated financial statements as follows: IFRS 16 Leases We adopted IFRS 16 on January 1, 2019, in accordance with the transitional provisions of IFRS 16, using the modified retrospective approach. Consequently, the cumulative effect of adopting IFRS 16 was recognized as an adjustment to the opening balance of retained earnings as at January 1, 2019, with no restatement of the comparative figures. On adoption of IFRS 16, we recognized lease liabilities in relation to leases which had previously been classified as ‘operating leases’ under IAS 17. These liabilities were measured at the present value of the remaining lease payments and discounted using our incremental borrowing rate as of January 1, 2019. Our weighted average incremental borrowing rate applied to the lease liabilities on January 1, 2019 was 1.55%. The differences between our total operating lease commitments as reported in note 26 of our consolidated financial statements of December 31, 2018 and the total lease liabilities recognized in our statement of financial position as at January 1, 2019 are summarized below. (Euro, in thousands) Operating lease commitments disclosed as at December 31, 2018 € 27,704 Less : discounting effect using the lessee's incremental borrowing rate at the date of initial application (1,223) Less : other (569) Lease liability recognized as at January 1, 2019 25,912 Of which are : current lease liabilities 4,516 non-current lease liabilities € 21,396 The change in accounting policy affected the statement of financial position as at January 1, 2019 as follows: January 1, 2019 (Euro, in thousands) Property, plant and equipment (right-of-use assets) € 26,406 Other current assets (prepaid expenses) (494) Effect on total assets 25,912 Accumulated losses 416 Lease liabilities (current and non-current) 25,912 Deferred income (416) Effect on total equity and liabilities € 25,912 We applied the following practical expedients, as permitted by IFRS 16, on transition date: ▪ Reliance on the previous definition of a lease (as provided by IAS 17) for all contracts that existed on the date of initial application; ▪ The use of a single discount rate to a portfolio of leases with reasonably similar characteristics; ▪ Reliance on previous assessments on whether leases are onerous instead of performing an impairment review; ▪ The accounting for operating leases with a remaining lease term of less than 12 months as at January 1, 2019 as short-term leases; ▪ No recognition of right-of-use assets and liabilities for leases of low value assets. We refer to our updated accounting policy on leases as a result of the adoption of IFRS 16. Other new standards and interpretations applicable for the annual period beginning on January 1, 2019 did not have any impact on our consolidated financial statements. NEW STANDARDS AND INTERPRETATIONS APPLIED FOR THE ANNUAL PERIOD BEGINNING ON JANUARY 1, 2018 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 IFRS 15 on January 1, 2018, our consolidated accumulated losses and deferred income were both increased by €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 note 6 “Total revenues and other income” for further detail. The impact of the adoption of IFRS 15 on the consolidated financial statements for the year ended December 31, 2018 is detailed in the table below and is due to changes in the accounting policy for revenue recognition compared to prior accounting standards. (Euro, in thousands, except per share data) Statement of operations Year ended December 31, 2018 As reported Balances in accordance with IAS 18 Effect of change higher / lower (-) Revenues € 288,836 € 232,800 € 56,036 Loss before tax (29,209) (85,245) 56,036 Income taxes (50) (50) — Net loss € (29,259) € (85,295) € 56,036 Basic & diluted loss per share € (0.56) € (1.64) € 1.08 Statement of financial position December 31, 2018 Deferred income € 149,801 € 122,617 € 27,184 Accumulated losses € (297,779) € (270,595) € (27,184) IFRS 9 Financial Instruments The only financial instrument held by the group subject to change in accounting treatment following the adoption of IFRS 9 – Financial Instruments, was the equity investment in a listed company classified as an 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 IFRS 9 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 or loss, the cumulative fair value loss of €0.6 million previously recognized in other comprehensive income was reclassified to accumulated losses. Other new standards and interpretations applicable for the annual period beginning on January 1, 2018 did not have any impact on our consolidated financial statements. |
Standards And Interpretations Published But Not Yet Applicable For The Annual Period | STANDARDS AND INTERPRETATIONS PUBLISHED, BUT NOT YET APPLICABLE FOR THE ANNUAL PERIOD BEGINNING ON JANUARY 1, 2019 A number of new standards are effective for annual periods beginning on or after January 1, 2020 with earlier adoption permitted. However we have not early adopted new or amended standards in preparing our consolidated financial statements. Of the standards that are not yet effective, we expect no standard to have a material impact on our financial statements in the period of initial application. · IFRS 17 Insurance contracts (applicable for annual periods beginning on or after January 1, 2021, but not yet endorsed in the EU) · Amendments to References to the Conceptual Framework in IFRS Standards (applicable for annual periods beginning on or after January 1, 2020) · Definition of a Business (Amendments to IFRS 3) (applicable for annual periods beginning on or after January 1, 2020, but not yet endorsed in the EU) · Definition of Material (Amendments to IAS 1 and IAS 8) (applicable for annual periods beginning on or after January 1, 2020) · Amendments to IFRS 9, IAS 39 and IFRS 7: Interest Rate Benchmark Reform (applicable for annual periods beginning on or after January 1, 2020) · Amendments to IAS 1 Presentation of Financial Statements: Classification of liabilities as current or non-current (applicable for annual periods beginning on or after January 1, 2022, but not yet endorsed in the EU) |
Consolidated Reporting | CONSOLIDATED REPORTING The consolidated financial statements comprise the financial statements of Galapagos NV and entities controlled by Galapagos NV. Control is achieved where Galapagos NV has the power to direct the relevant activities of another entity so as to obtain benefits from its activities. The results of subsidiaries are included in the statement of operations and statement of comprehensive income from the effective date of acquisition up to the date when control ceases to exist. Where necessary, adjustments are made to the financial statements of subsidiaries to ensure consistency with our accounting policies. All intra-group transactions, balances, income and expenses are eliminated when preparing the consolidated financial statements. |
Intangible Assets | INTANGIBLE ASSETS Expenditure on research activities is recognized as an expense in the period in which it is incurred. An internally generated intangible asset arising from our development activities is recognized only if all of the following conditions are met: · Technically feasible to complete the intangible asset so that it will be available for use or sale · We have the intention to complete the intangible assets and use or sell it · We have the ability to use or sell the intangible assets · The intangible asset will generate probable future economic benefits, or indicate the existence of a market · Adequate technical, financial and other resources to complete the development are available · We are able to measure reliably the expenditure attributable to the intangible asset during its development The amount capitalized as internally generated intangible assets is the sum of the development costs incurred as of the date that the asset meets the conditions described above. Because of risks and uncertainties inherent to the regulatory authorizations and to the development process itself, management estimates that the conditions for capitalization are not met until we obtain regulatory approval from the competent authorities. Currently we don’t own products that have obtained regulatory approval and this has resulted in all development costs being recognized as an expense in the period in which they are incurred. Intellectual property, which comprises patents, licenses and rights, is measured internally at purchase cost and is amortized on a straight-line basis over the estimated useful life as from the time they are available for use, generally on the following bases: · Customer relationships: 1–10 years · In process technology: 3–5 years · Software & databases: 3–5 years · Brands, licenses, patents & know how: 5–15 years In the event an asset has an indefinite life, this fact is disclosed along with the reasons for being deemed to have an indefinite life. Intangible assets with an indefinite usefull life and intangible assets which are not yet available for use are tested for impairment annually, and whenever there is an indication that the asset might be impaired. |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are recognized at cost less accumulated depreciation and any impairment loss. Depreciation is recognized so as to write off the cost of assets over their useful lives, using the straight-line method, on the following bases: · Installation & machinery: 3–15 years · Furniture, fixtures & vehicles: 4–10 years Any gain or loss incurred at the disposal of an asset is determined as the difference between the sale proceeds and the carrying amount of the asset, and is recognized in profit or loss. |
Leasehold Improvements | LEASEHOLD IMPROVEMENTS Leasehold improvements are depreciated over the term of the lease, unless a shorter useful life is expected. |
Financial Instruments | FINANCIAL INSTRUMENTS Financial assets and financial liabilities are recognized on our balance sheet when we become a party to the contractual provisions of the instrument. We do not actively use currency derivatives to hedge planned future cash flows, nor do we make use of forward foreign exchange contracts, outside of the Gilead transaction, fully settled at December 31, 2019. Additionally, we don’t have financial debts at December 31, 2019. (i) Financial assets Financial assets are initially recognized either at fair value or at their transaction price. All recognized financial assets will subsequently be measured at either amortized cost or fair value under IFRS 9 on the basis of both our business model for managing the financial assets and the contractual cash flow characteristics of the financial asset. · a financial asset that (i) is held within a business model whose objective is to collect the contractual cash flows and (ii) has contractual cash flows that are solely payments of principal and interest on the principal amount outstanding is measured at amortized cost (net of any write down for impairment), unless the asset is designated at fair value through profit or loss (FVTPL) under the fair value option; · a financial asset that (i) is held within a business model whose objective is achieved both by collecting contractual cash flows and selling financial assets and (ii) has contractual terms that give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding, is measured at fair value through other comprehensive income (FVTOCI), unless the asset is designated at FVTPL under the fair value option; · all other financial assets are measured at FVTPL. A financial asset is classified as current when the cash flows expected to flow from the instrument mature within one year. We derecognize a financial asset when the contractual rights to the cash flows from the asset expire, or we transfer the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. We classify non-derivative financial assets into the following categories: - - Financial assets at fair value through profit or loss Financial assets are designated at fair value through profit or loss if we manage such investments and make purchase and sale decisions based on their fair value in accordance with the our investment strategy. Attributable transaction costs are recognized in profit or loss as incurred. Financial assets at fair value through profit or loss are measured at fair value, and changes therein, which take into account any dividend income, are recognized in profit or loss. Equity instruments We hold investments in equity instruments, which based on IFRS 9, are designated as financial assets at fair value through profit or loss, which qualify for level 1 fair value measurement based upon the closing price of such securities on Euronext at each reporting date. Current financial investments Current financial investments include financial assets measured at fair value through profit or loss and comprise short term bond funds that have a maturity equal or less than 12 months, and money market funds. Cash equivalents measured at fair value through profit or loss Cash equivalents measured at fair value through profit or loss may comprise short-term deposits, bonds and money market funds that are readily convertible to cash and are subject to an insignificant risk of changes in value. These financial assets are used by us in the management of our short-term commitments. Financial assets at amortized cost Receivables Receivables are designated as financial assets measured at amortized cost. They are initially measured either at fair value or at transaction price, in the absence of a significant financing component. All receivables are subsequently measured in the balance sheet at amortized cost, which generally corresponds to nominal value less expected credit loss provision. Receivables mainly comprise trade and other receivables and current/non-current R&D incentives receivables. The R&D incentives receivables relate to refunds resulting from R&D incentives on research and development expenses in France and Belgium. Research and development incentives receivables are discounted over the period until maturity date according to the appropriate discount rates. Cash Cash are financial assets measured at amortized cost and comprise cash balances and short-term deposits with maturities of three months or less from the acquisition date that are subject to an insignificant risk of changes in their value and are used by us in the management of our short-term commitments. Cash equivalents measured at amortized costs Cash equivalents measured at amortized cost comprise short-term deposits that are readily convertible to cash and are subject to an insignificant risk of changes in value. These financial assets are used by us in the management of our short-term commitments. Cash and cash equivalents exclude restricted cash, which is presented in the line other non-current assets in the statement of financial position. (ii) Financial liabilities Financial liabilities are initially measured either at fair value or at their transaction price. Subsequent to initial recognition, financial liabilities are measured at amortized cost. Financial liabilities mainly comprise trade and other liabilities. Trade and other liabilities are comprised of liabilities that are due less than one year from the balance sheet date and are in general not interest bearing and settled on an ongoing basis during the financial year. They also include accrued expense related to our research and development project costs. We derecognize a financial liability when its contractual obligations are discharged, cancelled or expire. (iii) Financial instruments: derivative assets/liabilities Financial assets and financial liabilities are recognized on our balance sheet when we become a party to the contractual provisions of the instrument. Derivative assets and liabilities are initially measured at fair value. After initial measurement we will measure the derivatives at fair value through profit or loss. |
Taxation | TAXATION Income tax in the profit or loss accounts represents the sum of the current tax and deferred tax. Current tax is the expected tax payable on the taxable profit of the year. The taxable profit of the year differs from the profit as reported in the financial statements as it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. Our liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred income tax is provided in full, using the liability-method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. However, the deferred income tax is not accounted for if it arises from the initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit nor loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. Deferred tax assets are recognized to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. As such, a deferred tax asset for the carry forward of unused tax losses will be recognized to the extent that is probable that future taxable profits will be available. |
Foreign Currencies | FOREIGN CURRENCIES · Functional and presentation currency Items included in the financial statements of each of our entities are valued using the currency of the primary economic environment in which the entity operates. The consolidated financial statements are presented in Euros, which is our presentation currency. · Transactions and balances in foreign currency Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of transaction. We use monthly transaction rates based on the closing exchange rates of the foreign currencies on the last business day of the month preceding the date of the transaction. Foreign currency gains and losses resulting from the settlement of such transactions and from the translation at closing rates of monetary assets and liabilities denominated in foreign currencies are recognized in the financial result in the statement of operations. Non-monetary assets and liabilities measured at historical cost that are denominated in foreign currencies are translated using the exchange rate at the date of the transaction. · Financial statements of foreign group companies The results and financial position of all our entities that have a functional currency different from Euro are translated as follows: · Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet; · Income and expenses for each statement of operations are translated at average exchange rates; · All resulting cumulative exchange differences are recognized as a separate component of equity; · Such cumulative exchange differences are recognized in profit or loss in the period in which the foreign operation is disposed of. |
Recognition Of Expenses Linked To Clinical Trial Milestones | RECOGNITION OF EXPENSES LINKED TO CLINICAL TRIAL MILESTONES We recognize expenses specifically linked to clinical trial milestones with regard to patient recruitment and patient treatment (i.e. completion), incurred in carrying out clinical trials, in line with actual patient recruitment or treatment at each period end, in reference to the milestone targets for patient recruitment or treatment. This involves the calculation of clinical trial accruals at each period end, for which an estimation of the expected full clinical trial milestone cost is required, as well as the current stage of patient recruitment or treatment. Clinical trials usually take place over extended time periods and typically involve a set-up phase, a recruitment phase and a completion phase which ends upon the receipt of a final report containing full statistical analysis of trial results. Accruals for patient recruitment and patient completion are prepared separately for each clinical trial in progress and take into consideration the stage of completion of each trial including the number of patients that have entered the trial and the number of patients that have been treated in the trial. In all cases, the full cost of each trial is expensed by the time the final report is received. |
Revenue Recognition | REVENUE RECOGNITION Revenues to date have consisted principally of milestones, license fees and non-refundable upfront fees received in connection with collaboration and license agreements. We also generate revenue from our fee-for-service activities. The revenue recognition policies can be summarized as follows: We recognize revenue when our customer obtains control of promised goods or services, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. To determine revenue recognition for agreements that we determine are within the scope of IFRS 15, we perform the following five steps: (i) identify the contract In our current agreements with customers we are mainly transferring licenses on our IP and in some cases this is combined with access rights and/or providing research and development services and/or cost sharing mechanisms. In some cases our collaborations also include an equity subscription component. If this is the case, we analyze if the criteria to combine contracts, as set out by IFRS 15, are met. (ii) identify the performance obligations in the contract Depending on the type of the agreement, there can be one or more distinct performance obligations under IFRS 15. This is based on an assessment of whether the promises in an agreement are capable of being distinct and are distinct from the other promises to transfer goods and/or services in the context of the contract. For some of our agreements we combine the transfer of the license with the performance of research and development activities because we consider that the license is not capable of being distinct and is not distinct in the context of the contract. (iii) determine the transaction price Collaboration and license agreements with our commercial partners for research and development activities generally include non-refundable upfront fees; milestone payments, the receipt of which is dependent upon the achievement of certain clinical, regulatory or commercial milestones; license fees, royalties on sales and sometimes reimbursement income or profits sharing arrangements. a/ License fees or upfront payments If the license to our intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, we recognize revenues from non-refundable upfront fees allocated to the license at the point in time the license is transferred to the customer and the customer has the right to use the license. For licenses that are bundled with other promises, we utilize judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time. If over time, revenue is then recognized based on a pattern that best reflects the transfer of control of the service to the customer. b/ Milestone Payments other than sales based milestones A milestone payment is only included in the transaction price to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved . We estimate the amount to be included in the transaction price using the most likely amount method, where milestone payments are included in the transaction price upon achievement of the milestone event . The transaction price is then allocated to each performance obligation on a stand-alone selling price basis, for which we recognize revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, we re-evaluate the probability of achievement of such milestones and any related constraint, and if necessary, adjust our estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect revenue and earnings in the period of adjustment. c/ Reimbursement Income for R&D Services Collaboration and license agreements may include reimbursement or cost sharing for research and development services: such as outsourcing costs and payment for FTEs at contractual rates. R&D services are performed and satisfied over time given that the customer simultaneously receives and consumes the benefits provided by us. Such costs reimbursements received are recognized in revenues when costs are incurred and agreed by the parties when we are acting as a principal in the scope of our stake of the R&D activities. If the later condition is not fulfilled, costs reimbursements are accounted for as a decrease of the related expenses. d/ Sales based milestone payment and Royalties License and collaboration agreements include sales-based royalties, including commercial milestone payments based on the level of sales, and the license has been deemed to be the predominant item to which the royalties relate. Related revenue is recognized as the subsequent underlying sales occur. (iv) allocate the transaction price to the performance obligations in the contract We allocate the transaction price to each performance obligation identified in the contract based upon the stand-alone selling price. The stand-alone selling price of each performance obligation is estimated by using one of the following methods: adjusted market assessment approach, the expected cost plus a margin approach or the residual approach. If management assesses that there is only one single performance obligation, the entire transaction price would be allocated to this performance obligation. (v) recognize revenue when (or as) the entity satisfies a performance obligation Revenue is recognized when our customer obtains control of the goods and/or services foreseen in the contracts. The control can be transferred over time or at a point in time – which results in recognition of revenue over time or at a point in time. In case of revenue recognition over time, we use either an input model that considers estimates of the percentage of total research and development costs that are completed each period compared to the total estimated costs (percentage of completion method) or we apply an output method to measure the progress of the satisfaction of the underlying performance obligation. In other cases, depending on specific circumstances, we recognize revenue on a straight-line basis over the estimated term of the performance obligation. We refer to note 6 for detailed information per agreement and to our Critical judgments in applying accounting policies for more information. Contract costs Contract costs are those costs we incur in order to obtain a contract with a customer that we would not have incurred if the contract has not been obtained and are capitalized as intangible assets only if they are expected to be recoverable. Capitalized contract costs are amortized on a systematic basis that reflects the pattern of transfer of the related promised goods or services to the customer. Costs that we would have incurred regardless of whether the contract is obtained or those costs that are not directly related to obtaining a contract would not be capitalized. Revenue recognition policies applicable to periods ended December 31, 2017 and prior The revenue recognition policies applicable to periods ended December 31, 2017 and prior, can be summarized as follows: Upfront payments Non-refundable, upfront payments received in connection with research and development collaboration agreements are deferred and recognized over the relevant, required periods of our involvement. The payments and our involvement relate to a contractually defined phase of the project. At inception, management estimates the period of our involvement as well as the cost involved in the project. Upfront payments are recognized over the estimated period of involvement, either on a straight line basis or based on the cost incurred under the project if such cost can be reliably estimated. Periodically we reassess the estimated time and our cost to complete the project phase and adjust the time period over which the revenue is deferred accordingly. Milestone payments Research milestone payments are recognized as revenues when achieved. In addition, the payments have to be acquired irrevocably and the milestone payment amount needs to be substantive and commensurate with the magnitude of the related achievement. Milestone payments that are not substantive, not commensurate or that are not irrevocable are recorded as deferred revenue. Revenue from these activities can vary significantly from period to period due to the timing of milestones. Reimbursement income Cost reimbursements resulting from license and collaboration agreements with our commercial partners are recognized as reimbursement income in revenue as the related costs are incurred and upon agreement by the parties involved. The corresponding expenses are included in research and development expenditure. Cost reimbursements from collaboration in which we share equally in the risks and benefits associated with development of a specific drug with a collaboration partner are recognized as decrease of the related incurred research and development expenditure. Licenses Revenues from term licenses are spread over the period to which the licenses relate, reflecting the obligation over the term, to update content and provide ongoing maintenance. Revenues from perpetual licenses are recognized immediately upon sale to the extent that there are no further obligations. Royalties Royalty revenues are recognized when we can reliably estimate such amounts and collectability is reasonably assured. As such, we generally recognize royalty revenues in the period in which the licensees are reporting the royalties to us through royalty reports, that is, royalty revenues are generally recognized in arrears, i.e. after the period in which sales by the licensees occurred. Under this accounting policy, the royalty revenues we report are not based upon our estimates and such royalty revenues are typically reported in the same period in which we receive payment from our licensees. OTHER INCOME Grants and R&D incentives As we carry out extensive research and development activities, we benefit from various grants and R&D incentives from certain governmental agencies. These grants and R&D incentives generally aim to partly reimburse (approved) expenditures incurred in our research and development efforts and are credited to the statement of operations, under other income, when the relevant expenditure has been incurred and there is reasonable assurance that the grants or R&D incentives are receivable. |
Equity Instruments | EQUITY INSTRUMENTS Equity instruments issued by us are measured by the fair value of the proceeds received, net of direct issue costs. |
Employee Benefits | EMPLOYEE BENEFITS a/ Defined contribution plans Contributions to defined contribution pension plans are recognized as an expense in the statement of operations as incurred. b/ Defined benefit plans For defined retirement benefit plans, the cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting period. Re-measurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding interest), is reflected immediately in the statement of financial position with a charge or credit recognized in other comprehensive income in the period in which they occur. Re-measurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss. Past service cost is recognized in profit or loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset. Defined benefit costs are categorized as follows: · Service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements) · Net interest expenses or income · Re-measurement The retirement benefit obligation recognized in the consolidated statement of financial position represents the actual deficit or surplus in the defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or a reduction in future contributions to the plans. A liability for a termination benefit is recognized at the earlier of when we can no longer withdraw the offer of the termination benefit and when we recognize any related restructuring costs. c/ Staff bonus plan We recognize an expense in the statement of operations for staff bonus plans. d/ Management bonus plan (I) The executive committee members, together with other senior managers, are eligible to receive bonuses under the Senior Management Bonus Scheme established in 2006. Pursuant to the rules of the Senior Management Bonus Scheme, 50% of the bonus is paid immediately around year-end and the payment of the remaining 50% is deferred for three years. The deferred 50% component is dependent on the Galapagos share price change relative to the Next Biotech Index (which tracks Euronext-listed biotech companies). The Galapagos share price and the Next Biotech Index at the start and end of the 3‑year period is calculated by the average price over the preceding and last month of the 3‑year period, respectively. · If the Galapagos share price change is better than or equal to the change in the Next Biotech Index, the deferred bonus will be adjusted by the share price increase/decrease percentage and paid out · If the Galapagos share price change is up to 10% worse than the change in the Next Biotech Index, 50% of the deferred bonus will be adjusted by the share price increase/decrease percentage and paid out, and the remainder will be forfeited · If the Galapagos share price change is more than 10% worse than the change in the Next Biotech Index the deferred bonus will be forfeited The possible payment of the deferred component of the Senior Management Bonus Schemes within three years is recognized at the moment that the bonus amount is determined, based on the fair value of the liability at each reporting period. The fair value of the liability is measured by use of the Monte Carlo valuation model taking into consideration (a) the average reference price of the Galapagos share and Next Biotech Index, (b) the average price of the reporting period of the Galapagos share and the Next Biotech Index, (c) the simulation of the evolution of the Galapagos share price and the Next Biotech Index based on their volatility and correlation until maturity of the bonus, (d) the applicable discount rates at the end of the reporting period and (e) the probability of the number of beneficiaries assumed to stay with us until maturity of the bonus. The changes in fair value are recognized in profit or loss for the period. (II) The executive committee members, together with other senior managers are eligible to receive a bonus based on achievement of personal and corporate objectives. This bonus is paid in cash. |
Share-Based Payments | SHARE-BASED PAYMENTS a/ Equity-settled share based payments We grant equity-settled incentives to certain employees, directors and consultants in the form of warrants. Equity-settled warrants are measured at fair value at the date of acceptance. The fair value determined at the acceptance date of the warrants is expensed over time until the end of the vesting period, based on our estimate of warrants that are expected to be exercised. Fair value is measured by use of the Black & Scholes model. The expected life used in the model has been adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions, and behavioral considerations. b/ Long-term incentive plans in RSU’s (Restricted Stock Units) Executive committee members and other employees were granted RSU’s in 2019. An RSU is a grant that takes the form of a promise that employees will receive Galapagos stock in the future and it will be payable, at the company’s discretion in cash or in shares, upon completion of a certain vesting period. Each RSU reflects the value of one Galapagos share. The RSU’s are measured based on the average share price over the 30-calendar day period preceding the measurement date. We recognize the corresponding expense and liability over the vesting period. The fair value of the liability is re-measured at each reporting date because currently it is management’s intention to settle the RSU’s in cash. |
Provisions | PROVISIONS Provisions are recognized on the balance sheet when we have a present obligation as a result of a past event; when it is probable that an outflow of resources embodying economic benefits will be required to settle the obligations and a reliable estimate can be made of the amount of the obligations. The amount recognized as a provision is the best estimate of the expenditure required to settle the present obligation at the balance sheet date. If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of the money and, when appropriate, the risk specific to the liability. |
Leases | LEASES As explained in the beginning of this note, we adopted IFRS 16 on January 1, 2019, resulting in a change in our accounting policy. Accounting policy as from January 1, 2019 All leases are accounted for by recognizing a right-of-use asset and a corresponding lease liability except for: - Leases of low value assets; and - Leases with a duration of 12 months or less Liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the lease payments that are not paid at the commencement date, discounted using the rate implicit in the lease. If this rate cannot be readily determined, we will apply the incremental borrowing rate. The lease payments can include fixed payments, variable payments that depend on an index or rate known at the commencement date, expected residual value guarantees, termination penalties and extension option payments or purchase options if we are reasonably certain to exercise this option. After initial recognition, the lease liability will be measured at amortized cost using the discount rate determined at commencement and will be re-measured (with a corresponding adjustment to the related right-of-use asset) when there is a change in future lease payments in case of renegotiation, changes of an index or rate or in case of reassessment of options. At the commencement date, the right-of-use assets are measured at cost, comprising the amount of the initial lease liability, initial direct costs and the expected dismantling and removing costs (when we incur an obligation for these costs), less any lease incentives received from the lessors. After initial recognition, the right-of-use assets are measured at cost and depreciated over the shorter of the underlying asset's useful life and the lease term on a straight-line basis. The right-of-use assets will be adjusted for any re-measurements of the lease liability as a result of lease modifications. The right-of-use assets are subject to impairment testing if there is an indicator for impairment, as for property, plant and equipment. The right-of-use assets are presented in the statement of financial position under the caption “Property, plant and equipment” and the lease liabilities are presented as current and non-current lease liabilities. In determining the lease term, we consider all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. We only include extension options (or periods after termination options) in the lease term if the lease is reasonably certain to be extended (or not terminated). The assessment is reviewed if a significant event or a significant change in circumstances occurs which affects this assessment and that is within our control. Each lease payment is allocated between the liability and financial expenses. The finance cost is charged to the income statement over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. Accounting policy until January 1, 2019 Until the end of 2018, leases of property, plant and equipment were classified as either finance or operating leases. Leases were classified as finance leases whenever the terms of the lease substantially transferred all the risks and rewards of ownership to the lessee. All other leases were classified as operating leases. Assets held under finance leases were recognized as our assets at their fair value or, if lower, at the present value of the minimum lease payments, each determined at the inception of the lease. These assets held under finance leases were depreciated over their useful lives on the same bases as owned assets or, where shorter, over the term of the related lease agreement. The corresponding liability to the lessor was included in the balance sheet as a finance lease obligation. The payments were divided proportionally between the financial costs and a diminution of the outstanding balance of the obligation, so that the periodic interest rate on the outstanding balance of the obligation would be constant. Interest was recognized in the income statement, unless it was directly attributable to the corresponding asset, in which case it was capitalized. Rents paid on operating leases were charged to income on a straight-line basis over the term of the relevant lease. Benefits received and receivable as an incentive to enter into an operating lease were also spread on a straight-line basis over the lease term. |
Impairment | IMPAIRMENT (i) Financial assets The impairment loss of a financial asset measured at amortized cost is calculated based on the expected loss model. For trade receivables, in the absence of a significant financing component, the loss allowance is measured at an amount equal to lifetime expected credit losses. Those are the expected credit losses that result from all possible default events over the expected life of those trade receivables. Impairment losses are recognized in the consolidated statement of operations. (ii) Property, plant and equipment and intangible assets At each balance sheet date, we review the carrying amount of our tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where the asset does not generate cash flows that are independent from other assets, we estimate the recoverable amount of the cash-generating unit to which the asset belongs. If the recoverable amount of an asset or cash generating unit is estimated to be less than the carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognized as an expense immediately. When an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined, had no impairment loss been recognized for the asset in prior years. A reversal of an impairment loss resulting from a sale of a subsidiary is recognized as income. In other cases impairment losses of goodwill are never reversed. |
Net Income / Loss Per Share | NET INCOME / LOSS PER SHARE Basic net income/loss per share is computed based on the weighted average number of shares outstanding during the period. Diluted net income per share is computed based on the weighted average number of shares outstanding including the dilutive effect of warrants, if any. |
Segment Reporting | SEGMENT REPORTING Segment results include revenue and expenses directly attributable to a segment and the relevant portion of revenue and expenses that can be allocated on a reasonable basis to a segment. We don’t report assets and liabilities by segment as this information is not regularly provided to the chief operating decision maker. We have only two segments (see note 5). |
Significant accounting polici_3
Significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Significant accounting policies | |
Schedule of differences between operating lease commitments as reported as per IAS 17 and after adoption IFRS 16 | (Euro, in thousands) Operating lease commitments disclosed as at December 31, 2018 € 27,704 Less : discounting effect using the lessee's incremental borrowing rate at the date of initial application (1,223) Less : other (569) Lease liability recognized as at January 1, 2019 25,912 Of which are : current lease liabilities 4,516 non-current lease liabilities € 21,396 |
Schedule of impact of new accounting standards on financials | (Euro, in thousands, except per share data) Statement of operations Year ended December 31, 2018 As reported Balances in accordance with IAS 18 Effect of change higher / lower (-) Revenues € 288,836 € 232,800 € 56,036 Loss before tax (29,209) (85,245) 56,036 Income taxes (50) (50) — Net loss € (29,259) € (85,295) € 56,036 Basic & diluted loss per share € (0.56) € (1.64) € 1.08 Statement of financial position December 31, 2018 Deferred income € 149,801 € 122,617 € 27,184 Accumulated losses € (297,779) € (270,595) € (27,184) |
IFRS 16 | |
Significant accounting policies | |
Schedule of change in accounting policy | The change in accounting policy affected the statement of financial position as at January 1, 2019 as follows: January 1, 2019 (Euro, in thousands) Property, plant and equipment (right-of-use assets) € 26,406 Other current assets (prepaid expenses) (494) Effect on total assets 25,912 Accumulated losses 416 Lease liabilities (current and non-current) 25,912 Deferred income (416) Effect on total equity and liabilities € 25,912 |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment information | |
Segment information | Segment information for year 2019 (Euro, in thousands) R&D Fee-for-services Inter-segment Group External revenue € 834,901 € 10,084 € 844,985 Internal revenue 6,742 € (6,742) Other income 50,905 — 50,905 Revenues & other income 885,806 16,826 (6,742) 895,890 Segment result 407,464 1,125 408,589 Unallocated expenses (1) (38,297) Operating income 370,292 Financial (expenses)/income (220,233) Result before tax 150,060 Income taxes (214) Net income € 149,845 (1) The unallocated expenses of €38 ,297 thousand comprise warrant costs. Segment information for year 2018 (Euro, in thousands) R&D Fee-for-services Inter-segment Group External revenue € 278,666 € 10,170 € 288,836 Internal revenue 8,508 € (8,508) Other income 29,000 9 29,009 Revenues & other income 307,666 18,687 (8,508) 317,845 Segment result (19,734) 1,751 (17,983) Unallocated expenses (1) (26,824) Operating loss (44,807) Financial (expenses)/income 15,598 Result before tax (29,209) Income taxes (50) Net loss € (29,259) (1) The unallocated expenses of €26,824 thousand principally comprise of €26,757 thousand of warrant costs. Segment information for year 2017 (Euro, in thousands) R&D Fee-for-services Inter-segment Group External revenue € 118,262 € 8,825 € 127,087 Internal revenue 5,104 € (5,104) Other income 28,815 15 28,830 Revenues & other income 147,077 13,945 (5,104) 155,918 Segment result (73,610) 86 (73,524) Unallocated expenses (1) (16,278) Operating loss (89,802) Financial (expenses)/income (25,705) Result before tax (115,507) Income taxes (198) Net loss € (115,704) (1) The unallocated expenses of €16,278 thousand principally comprise of €16,536 thousand of warrant costs. |
Summary of revenues by destination | Year ended December 31, 2019 2018 2017 (Euro, in thousands) North America € 795,605 € 117,609 € 82,050 Europe 49,018 171,113 45,037 Asia Pacific 362 114 — Total € 844,985 € 288,836 € 127,087 |
Summary of revenues by major customers | Year ended December 31, 2019 2018 2017 Spilt up of revenues by major customers (Euro, in % (Euro, in % (Euro, in % Gilead: North America (1) € 793,873 € 116,640 € 80,687 Europe (1) (4,570) -1% 7,793 AbbVie: Europe 26,356 89,936 34,049 Novartis: Europe 19,177 55,218 Les Laboratoires Servier: Europe — 9,000 67 Total revenues from major customers € 834,836 € 278,587 114,804 Following the contract amendment, the revenue recognized for filgotinib for the year ended December 31, 2019, included a negative catch-up effect on closing date of €245.9 million resulting from the decrease in the percentage of completion applied to previously received upfront and milestones for that program. |
Total revenues and other inco_2
Total revenues and other income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Total revenues and other income | |
Summary of Revenues | Year ended December 31, 2019 2018 2017 (Euro, in thousands) Recognition of non-refundable upfront payments and license fees € 812,058 € 196,486 € 71,971 Milestone payments 2,878 73,394 42,950 Reimbursement income 19,900 8,722 3,273 Other revenues 10,150 10,233 8,893 Total revenues € 844,985 € 288,836 € 127,087 |
Revenue by collaboration and by category of revenue | The following table summarizes details of revenues for the years ended 31 December 2019 and 2018 by collaboration and by category of revenue: upfront payments and license fees, milestone payments, reimbursement income, and other revenues. Over time Point in time 2019 2018 (Euro, in (Euro, in thousands) thousands) Recognition of non-refundable upfront payments and license fees € € Gilead collaboration agreement for GLPG1690 - Gilead collaboration agreement for filgotinib (1) Gilead collaboration agreement for drug discovery platform - AbbVie collaboration agreement for CF Novartis collaboration agreement for MOR106 - Milestone payments Gilead collaboration agreement for filgotinib (1) AbbVie collaboration agreement for CF Servier collaboration agreement for osteoarthritis - Reimbursement income Novartis collaboration agreement for MOR106 AbbVie collaboration agreement for CF Other reimbursement income - Other revenues Fee-for-services revenues Other revenues Total revenues € 844,985 € 288,836 (1) Following the contract amendment, the revenue recognized for filgotinib for the year ended December 31, 2019, included a negative catch-up effect at closing date of €245.9 million, resulting from the decrease in the percentage of completion applied to previously received upfront and milestones for that program. |
Summary of allocation of transaction price | (Euro, in thousands) Allocation of transaction price Upfront received € 3,569,815 Impact initial valuation of share subscription 85,601 3,655,416 Less : Warrants issuance liabilities Warrant A (43,311) Initial warrant B (2,545) Subsequent warrant B (16,184) 3,593,376 Allocation to performance obligations GLPG1690 666,967 Filgotinib additional consideration (1) 641,663 Drug discovery platform (10 years) € 2,284,747 (1)With regard to the additional consideration received for the extended cost sharing for filgotinib, we assume the existence of a significant financing component estimated to €44.5 million reflecting the time value of money on the estimated recognition period. |
Schedule of revenues | For the years ended December 31, 2018 and 2017 The following table summarizes the revenue recognition of upfront payments, license fees and milestone payments for the years ended December 31, 2018 and 2017, as well as the impact of the adoption of IFRS 15. The revenues recognized for the years ended December 31, 2018 presented under the IFRS 15 standard as well as under the former applicable IAS 18 standard, with a comparison to the year ended December 31, 2017 under the former applicable IAS 18 standard. IAS 18 IFRS 15 IFRS 15 IAS 18 IAS 18 IFRS 15 Agreement Consideration Consideration Collaboration Outstanding Deferred income reclassified from equity following adoption of IFRS 15 Outstanding Revenue recognized, year ended December 31, 2018 Revenue recognized, year ended December 31, 2018 Revenue recognized, year ended December 31, 2017 Outstanding balance in deferred income as at December 31, 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 € 84,806 € 84,806 € 62,488 € 102,643 Gilead collaboration agreement for filgotinib - Subscription agreement (*) N.A. € 39,003 (*) January 2016 € 26,532 € 26,532 € 12,004 € 12,004 € 8,845 € 14,528 Servier collaboration agreement for osteoarthritis - License fee N.A. € 6,000 June 2010 € 5,362 € (5,362) € — € — € 1,532 € 638 € — AbbVie collaboration agreement for CF - Upfront payments $ 45,000 € 34,001 September 2013 € € 14,872 € 14,872 € 14,140 € — € — € 732 Total upfront payments and license fees: € 219,343 € 9,510 € 228,853 € 110,950 € 98,342 € 71,971 € 117,903 Gilead collaboration agreement for filgotinib - Milestone payments $ 70,000 € 64,435 January 2016 € 43,832 € 43,832 € 19,831 € — € 9,354 € 24,001 AbbVie collaboration agreement for CF - Milestone payments $ 77,500 € 68,310 September 2013 € 29,878 € 29,878 € 28,406 € — € 33,596 € 1,471 Total milestones: € 73,710 € 73,710 € 48,237 € — € 42,950 € 25,472 Total : € 219,343 € 83,220 € 302,563 € 159,187 € 98,342 € 114,921 € 143,375 Revenue recognition of considerations in the year ended December 31, 2018 Novartis collaboration agreement for MOR106 - Upfront payment N.A. € 47,500 September 2018 € 47,500 € 47,500 € — AbbVie collaboration agreement for CF - Upfront payment $ 45,000 € 38,874 September 2013 € 38,037 € 38,037 € 837 Total upfront payments and license fees: € 85,537 € 85,537 € 837 Gilead collaboration agreement for filgotinib - Milestone payments $ 15,000 € 12,418 January 2016 € 7,793 € 12,418 € 4,625 AbbVie collaboration agreement for CF - Milestone payments $ 10,000 € 8,548 September 2013 € 8,364 € 8,548 € 184 Servier collaboration agreement for osteoarthritis - Milestone payment N.A. € 9,000 June 2010 € 9,000 € 9,000 € — Total milestones: € 25,157 € 29,966 € 4,809 Total : € 110,694 € 115,503 € 5,646 Grand total : upfront payments and license fees and milestones € 269,881 € 213,845 € 149,021 (*) deferred income of €39 million recognized upon signing of the share subscription agreement with Gilead as required under IAS 39 IFRS 15 Over time Point in time 2018 2017 Over time Point in time (Euro, in (Euro, in thousands) thousands) Recognition of non-refundable upfront payments and license fees € Gilead collaboration agreement for GLPG1690 Gilead collaboration agreement for filgotinib Gilead collaboration agreement for drug discovery platform AbbVie collaboration agreement for CF - Novartis collaboration agreement for MOR106 - Servier collaboration agreement for osteoarthritis - Milestone payments Gilead collaboration agreement for filgotinib AbbVie collaboration agreement for CF Servier collaboration agreement for osteoarthritis - Reimbursement income Novartis collaboration agreement for MOR106 - AbbVie collaboration agreement for CF Servier collaboration agreement for osteoarthritis - Other reimbursement income Other revenues Fee-for-services revenues Other revenues Total revenues 288,836 € 127,087 |
Schedule of other income | Year ended December 31, 2019 2018 2017 (Euro, in thousands) Grant income € 6,549 € 1,609 € 1,045 R&D incentives 43,923 26,912 26,808 Other income 433 488 977 Total other income € 50,905 € 29,009 € 28,830 |
Operating costs (Tables)
Operating costs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Operating costs | |
Summary of research and development expenditure | Year ended December 31, 2019 2018 2017 (Euro, in thousands) Personnel costs € (124,260) € (81,352) € (59,950) Subcontracting (249,926) (197,644) (123,054) Disposables and lab fees and premises costs (23,880) (25,525) (22,277) Depreciation (10,874) (5,655) (3,679) Other operating expenses (18,380) (12,699) (9,542) Total R&D expenses € (427,320) € (322,875) € (218,502) |
Summary of research and development expenditure by program | Year ended December 31, 2019 2018 2017 (Euro, in thousands) Filgotinib program € (100,032) € (66,138) € (53,212) IPF program on GLPG1690 (75,951) (72,718) (16,190) OA program on GLPG1972 (19,958) (15,751) (7,317) Toledo program (47,204) (20,967) (8,075) CF program (3,897) (30,137) (46,192) AtD program on MOR106 (24,051) (14,999) (8,404) Other programs (156,227) (102,165) (79,113) Total R&D expenses € (427,320) € (322,875) € (218,502) |
Summary of general and administrative expenses | Year ended December 31, 2019 2018 2017 (Euro, in thousands) Personnel costs and directors fees € (51,906) € (25,495) € (17,756) Depreciation (1,513) (513) (606) Legal and professional fees (11,775) (4,284) (2,427) Other operating expenses (8,506) (5,339) (3,626) Total general and administrative expenses € (73,701) € (35,631) € (24,415) |
Summary of sales and marketing expenses | Year ended December 31, 2019 2018 2017 (Euro, in thousands) Personnel costs € (7,558) € (2,282) € (2,156) Depreciation (61) — — External outsourcing costs (15,722) (1,284) (42) Other operating expenses (1,236) (580) (604) Total sales and marketing expenses € (24,577) € (4,146) € (2,803) |
Staff costs (Tables)
Staff costs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Staff costs | |
Staff costs | Year ended December 31, 2019 2018 2017 (Euro, in thousands) Wages and salaries € (116,408) € (61,619) € (46,677) Social security costs (16,858) (11,003) (9,081) Pension costs (4,715) (2,994) (2,175) Other personnel costs (39,109) (27,375) (16,465) Total personnel costs € (177,090) € (102,991) € (74,398) |
Fair value re-measurement of _2
Fair value re-measurement of share subscription agreement and warrants granted to Gilead (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair value re-measurement of share subscription agreement and warrants granted to Gilead | |
Schedule of fair value re-measurement of the financial instrument related to the share subscription agreement, issuance of warrant A and B | Year ended December 31, 2019 (Euro, in thousands) Fair value re-measurement of the share subscription agreement € Fair value re-measurement of warrant A Fair value re-measurement of initial warrant B Total fair value re-measurement of share subscription agreement and warrants € (181,644) Fair value re-measurement of the Gilead share subscription agreement (Euro, in thousands) Fair value of financial asset at signing date € 85,601 Change in fair value recorded in profit or loss Fair value of financial liability at closing date Derecognition at closing date Fair value on December 31, 2019 € — Fair value re-measurement of the financial instrument related to the issuance of warrant A (Euro, in thousands) Fair value of financial liability at warrant approval date € (43,311) Change in fair value recorded in profit or loss Derecognition at warrant A exercise date Fair value on December 31, 2019 € — Fair value re-measurement of the financial instrument related to the issuance of initial warrant B (Euro, in thousands) Fair value of financial liability at warrant approval date € (2,545) Change in fair value recorded in profit or loss Fair value on December 31, 2019 € (6,198) |
Other financial income _ expe_2
Other financial income / expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other financial income / expenses | |
Schedule of other financial income and expense | Year ended December 31, 2019 2018 2017 (Euro, in thousands) Other financial income: Interest on bank deposit € 14,306 € 5,219 € 3,045 Effect of discounting long term R&D incentives receivables 93 199 — Currency exchange gain 850 11,027 1,797 Fair value gain on financial assets held at fair value through profit or loss 5,355 1,203 — Fair value gain on current financial investments 611 — — Gain upon sale of financial assets held at fair value through profit or loss 2 668 — Other finance income 264 19 34 Total other financial income 21,482 18,335 4,877 Other financial expenses: Interest expenses (1,302) (780) (936) Effect of discounting long term deferred income (6,900) — — Currency exchange loss (47,769) (1,174) (29,176) Fair value loss on current financial investments (3,700) — — Other finance charges (400) (782) (469) Total other financial expense (60,071) (2,737) (30,582) Total net other financial expense (-)/ income € (38,589) € 15,598 € (25,705) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Income tax recognized in profit or loss | Year ended December 31, 2019 2018 2017 (Euro, in thousands) Current tax € (1,372) € (584) € (218) Deferred tax 1,158 535 20 Income taxes € (214) € (50) € (198) |
Tax Liabilities | December 31, 2019 2018 2017 (Euro, in thousands) Current tax payable € 2,037 € 1,175 € 865 Total tax liabilities € 2,037 € 1,175 € 865 |
Tax reconciled to the accounting result | Year ended December 31, 2019 2018 2017 (Euro, in thousands) Income/loss (-) before tax € 150,060 € (29,209) € (115,507) Income tax debit/credit (-), calculated using the Belgian statutory tax rate on the accounting income/loss (-) before tax (theoretical) 44,388 (8,640) (39,261) Tax expenses/income (-) in statement of operations (effective) 214 50 198 Difference in tax expense/income to explain € (44,173) € 8,690 € 39,458 Effect of tax rates in other jurisdictions € 831 € 411 € 14 Effect of non taxable revenues (13,079) (11,558) (11,277) Effect of share based payment expenses without tax impact 10,318 7,530 5,317 Effect of expenses/income (-) not subject to tax 53,270 382 102 Effect of non tax deductible expenses 795 945 404 Effect of recognition of previously non recognized deferred tax assets (2,286) (1,977) (414) Effect of change in tax rates — — 181 Effect of tax losses (utilized) reversed (136) (150) (763) Effect of under or over provision in prior periods 30 — — Effect of non recognition of deferred tax assets 47,413 13,108 45,895 Effect of derecognition of previously recognized deferred tax assets 106 — — Effect of use of IID (141,435) — — Total explanations € (44,173) € 8,690 € 39,458 |
Income_loss (-) per share (Tabl
Income/loss (-) per share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income/loss (-) per share | |
Schedule of income/loss per share | Year ended December 31, 2019 2018 2017 Income/loss (-) per share: Net income/loss (-) attributable to owners of the parent (Euro, in thousands) € 149,845 € (29,259) € (115,704) Number of shares (thousands) Weighted average number of shares for the purpose of basic income/loss (-) per share 57,614 52,113 49,479 Basic income/loss (-) per share (Euros) € 2.60 € (0.56) € (2.34) Net income/loss (-) attributable to owners of the parent (Euro, in thousands) € 149,845 € (29,259) € (115,704) Number of shares (thousands) Weighted average number of shares for the purpose of diluted income/loss (-) per share 57,614 52,113 49,479 Number of dilutive potential ordinary shares 2,498 — — Diluted income/loss (-) per share (Euros) € 2.49 € (0.56) € (2.34) |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Intangible assets | |
Schedule of intangible assets | In process Software & Brands, Contract costs Total (Euro, in thousands) Acquisition value On January 1 , 2017 € 5,561 € 7,185 € 1,523 € — € 14,269 Additions 1,500 623 2 2,125 Sales and disposals (100) (100) Translation differences (212) (212) On December 31, 2017 7,061 7,496 1,525 — 16,082 Additions 1,561 1,763 3,325 Sales and disposals (7,061) (20) (569) (7,650) Translation differences 74 74 On December 31, 2018 — 9,111 2,719 — 11,832 Additions 5,463 2,453 15,384 23,300 Sales and disposals (64) (64) Translation differences 31 31 On December 31, 2019 — 14,541 5,172 15,384 35,099 Amortization and impairment On January 1 , 2017 5,561 6,182 1,501 — 13,246 Amortization 644 8 652 Sales and disposals (99) (99) Translation differences (212) (212) On December 31, 2017 5,561 6,514 1,509 — 13,587 Amortization 417 681 9 1,107 Impairment 1,083 1,083 Sales and disposals (7,061) (20) (569) (7,650) Translation differences 74 74 On December 31, 2018 — 7,250 949 — 8,200 Amortization 816 678 512 2,006 Sales and disposals (63) (63) Translation differences 31 31 On December 31, 2019 — 8,034 1,626 512 10,173 Carrying amount On December 31, 2017 € 1,500 € 982 € 16 € — € 2,495 On December 31, 2018 € — € 1,862 € 1,771 € — € 3,632 On December 31, 2019 € — € 6,507 € 3,546 € 14,872 € 24,927 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment | |
Schedule of property, plant and equipment – Fully owned | FULLY OWNED Land & Installation & Furniture, Other Total (Euro, in thousands) Acquisition value On January 1 , 2017 € 4,412 € 29,733 € 2,973 € 505 € 37,624 Additions 324 3,178 246 1,564 5,312 Sales and disposals (844) (17) (861) Reclassifications 881 (881) — Translation differences 112 7 1 120 On December 31, 2017 4,736 33,060 3,209 1,189 42,195 Additions 275 4,674 1,039 4,404 10,392 Sales and disposals (486) (826) (1,311) Reclassifications 753 13 (766) — Translation differences 29 16 46 On December 31, 2018 5,011 38,031 3,452 4,827 51,321 Additions 273 6,382 649 15,076 22,380 Sales and disposals (1,521) (97) (1,618) Reclassifications 1,792 3 (1,795) — Reclassifications to right of use (251) (251) Translation differences (30) 22 (8) On December 31, 2019 5,284 44,655 4,028 17,856 71,823 Depreciations and impairment On January 1 , 2017 2,025 18,252 2,184 203 22,663 Depreciation 316 3,027 234 55 3,633 Sales and disposals (838) (17) (855) Translation differences 1 53 7 61 On December 31, 2017 2,342 20,495 2,407 258 25,502 Depreciation 344 3,377 236 17 3,974 Sales and disposals (485) (826) (1,310) Translation differences 16 2 18 On December 31, 2018 2,686 23,403 1,819 275 28,184 Depreciation 394 4,018 399 7 4,818 Sales and disposals (1,521) (99) (1,620) Reclassifications to right of use (251) (251) Translation differences (15) (15) On December 31, 2019 3,080 25,885 2,119 31 31,117 Carrying amount On December 31, 2017 € 2,394 € 12,565 € 802 € 930 € 16,692 On December 31, 2018 € 2,325 € 14,628 € 1,632 € 4,552 € 23,137 On December 31, 2019 € 2,204 € 18,770 € 1,909 € 17,825 € 40,707 |
Schedule of property, plant and equipment – Right of use | RIGHT-OF-USE Land & Installation & Furniture, Total (Euro, in thousands) Acquisition value On December 31, 2018 € — € — € — € — Change in accounting policy ( modified retrospective application IFRS 16) 24,056 219 2,130 26,406 Restated balance on January 1, 2019 24,056 219 2,130 26,406 Additions 3,270 84 1,176 4,530 Reclassifications to right of use 251 251 Translation differences 38 38 On December 31, 2019 27,364 554 3,307 31,225 Depreciations and impairment On December 31, 2018 — Depreciation 4,666 91 867 5,624 Reclassifications to right of use 251 251 Translation differences 4 4 On December 31, 2019 4,670 342 867 5,879 Carrying amount On December 31, 2019 € 22,694 € 212 € 2,440 € 25,345 Carrying amount on December 31, 2019 Property, plant and equipment fully owned € 40,707 Right-of-use 25,345 Total property, plant and equipment € 66,052 |
Other non-current assets (Table
Other non-current assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other non-current assets | |
Schedule of other non-current assets | December 31, 2019 2018 2017 (Euro, in thousands) Non-current restricted cash € 1,418 € 1,276 € 1,158 Financial assets held at fair value through profit or loss 11,275 6,000 1,754 Other non-current assets 1,399 643 549 Total other non-current assets € 14,091 € 7,919 € 3,461 |
Schedule of financial assets held at fair value through profit or loss | December 31, 2019 2018 2017 (Euro, in thousands) Costs at January 1 € 4,818 € 2,373 € 2,750 Acquisitions of the year — 4,736 — Disposals of the year (82) (2,291) (377) Costs at December 31, 4,736 4,818 2,373 Fair value adjustment at January 1 1,182 (619) (399) Cancellation of fair value adjustment following disposal 2 598 55 Fair value adjustment of the year 5,355 1,203 (275) Fair value adjustment at December 31, 6,539 1,182 (619) Net book value at December 31, € 11,275 € 6,000 € 1,754 |
Research and Development ince_2
Research and Development incentives receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Research and Development incentives receivables | |
Schedule of the classifications of R&D incentives receivables | December 31, 2019 2018 2017 (Euro, in thousands) Non-current R&D incentives receivables € 93,407 € 73,443 € 64,001 Current R&D incentives receivables 21,949 11,203 11,782 Total R&D incentives receivables € 115,356 € 84,646 € 75,783 |
Schedule of maturities of non-current R&D incentives receivables | December 31, 2019 Maturity date 2021 2022 2023 2024 2025-2029 Total (Euro, in thousands) French non-current R&D incentives receivables - discounted value € 9,668 € 10,223 € 11,913 € 31,804 Belgian non-current R&D incentives receivables - discounted value 4,881 5,734 7,534 € 10,190 € 33,263 61,603 Total non-current R&D incentives receivables - discounted value € 14,549 € 15,957 € 19,447 € 10,190 € 33,263 € 93,407 |
Trade and other receivables a_2
Trade and other receivables and other current assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other receivables and other current assets | |
Schedule of trade and other receivables and other current assets | December 31, 2019 2018 2017 (Euro, in thousands) Trade receivables € 39,603 € 9,206 € 22,133 Prepayments 292 142 543 Other receivables 14,114 9,261 5,289 Trade and other receivables 54,009 18,609 27,966 Inventories 255 276 279 Accrued income 4,443 3,863 2,584 Deferred charges 4,439 4,104 3,825 Other current assets 9,138 8,244 6,688 Total trade and other receivables & other current assets € 63,147 € 26,852 € 34,653 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash and cash equivalents. | |
Schedule of cash and cash equivalents | December 31, 2019 2018 2017 (Euro, in thousands) Cash at banks € 907,939 € 358,016 € 288,052 Term deposits 953,677 733,537 713,446 Money market funds — 199,243 149,711 Cash on hand — — 3 Total cash and cash equivalents € 1,861,616 € 1,290,796 € 1,151,211 |
Share capital (Tables)
Share capital (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share capital | |
Schedule of reconciliation of share capital | 2019 2018 2017 (Euro, in thousands) On January 1 € 236,540 € 233,414 € 223,928 Share capital increase 55,189 19,090 25,323 Costs of capital increase (4,447) (15,964) (15,837) Share capital on December 31, € 287,282 € 236,540 € 233,414 Aggregate share capital € 349,789 € 294,600 € 275,510 Costs of capital increase (accumulated) (62,507) (58,060) (42,096) Share capital on December 31, € 287,282 € 236,540 € 233,414 |
Schedule of history of the share capital | Date Share capital Share capital Number of Aggregate Aggregate January 1, 2017 46,256 € 250,187 April 6, 2017 € 1,337 247 April 21, 2017 € 23,331 4,313 June 20, 2017 281 52 September 21, 2017 152 28 November 23, 2017 222 41 December 31, 2017 50,937 275,510 March 20, 2018 1,613 298 June 20, 2018 556 103 September 17, 2018 2,961 October 3, 2018 733 135 November 23, 2018 167 31 December 31, 2018 54,466 294,600 March 20, 2019 808 149 June 20, 2019 1,127 208 August 23, 2019 September 18, 2019 1,632 302 November 6, 2019 14,162 2,618 November 25, 2019 515 95 December 31, 2019 64,667 € 349,789 |
Summary of capital increases | (Euro, in thousands, except share data) Number of shares Share Share Share capital Average Closing (in Euro/ warrant) (in Euro/ share) On January 1, 2017 46,256,078 € 223,928 € 649,135 € 873,063 April 6, 2017 : exercise of warrants 247,070 1,337 2,697 4,034 16.33 84.60 April 21, 2017 : U.S. public offering ADSs (fully paid) 4,312,500 23,331 340,593 363,924 81.34 Underwriter discounts and offering expenses (paid) (15,790) (15,790) Offering expenses still to be paid at December 31, 2017 (47) (47) Total U.S. public offering 4,312,500 7,494 340,593 348,087 June 20, 2017 : exercise of warrants 52,030 281 350 632 12.14 70.66 September 21, 2017 : exercise of warrants 28,100 152 117 269 9.55 84.62 November 23, 2017 : exercise of warrants 41,000 222 132 354 8.63 77.53 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 September 17, 2018 : U.S. public offering ADSs (fully paid) 2,961,373 16,021 280,167 296,188 Underwriter discounts and offering expenses (paid) (15,964) (15,964) Total U.S. public offering 2,961,373 57 280,167 280,224 99.68 October 3, 2018 : exercise of warrants 135,485 733 1,281 2,014 14.86 94.32 November 23, 2018 : exercise of warrants 30,800 167 215 382 12.40 88.90 On December 31, 2018 54,465,421 236,540 1,277,780 1,514,320 March 20, 2019 : exercise of warrants 149,370 808 2,673 3,481 23.30 90.32 June 20, 2019 : exercise of warrants 208,310 1,127 3,198 4,325 20.76 113.55 August 23, 2019 : share subscription by Gilead Ordinary shares (fully paid) 6,828,985 36,945 923,142 960,087 148.90 Derecognition of financial liability from share subscription agreement 56,749 56,749 Underwriter discounts and offering expenses (paid) (4,447) (4,447) Total share subscription by Gilead 6,828,985 32,498 979,891 1,012,389 September 18, 2019 : exercise of warrants 301,745 1,632 5,043 6,675 22.12 145.25 November 6, 2019 : exercise of warrant A by Gilead Exercise of warrant A 2,617,791 14,162 353,873 368,035 Derecognition of financial liability related to warrant A 78,953 Total exercise of warrant A by Gilead 2,617,791 14,162 432,826 368,035 140.59 170.75 November 25, 2019 : exercise of warrants 95,180 515 2,172 2,687 28.23 172.95 On December 31, 2019 64,666,802 € 287,282 € 2,703,583 € 2,911,912 |
Summary of other information | Ordinary shares Total Par value of shares (€) 5.41 5.41 |
Deferred tax (Tables)
Deferred tax (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred tax | |
Schedule of deferred tax | December 31, 2019 2018 2017 (Euro, in thousands) Recognized deferred tax assets and liabilities Assets € 4,205 € 2,514 € 1,978 Liabilities € — € — € — Deferred tax assets unrecognized € 289,833 € 223,377 € 164,079 Deferred taxes in the consolidated statement of operations € 1,158 € 535 € 20 Tax benefit arising from previously unrecognized tax assets used to reduce deferred tax expense (+) 1,537 1,973 414 Deferred tax expenses relating to change in tax rates — — (181) Deferred tax expenses relating to use of previously recognized deferred tax assets (379) (1,438) (213) |
Lease liabilities (Tables)
Lease liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Lease liabilities. | |
Schedule of lease liabilities | December 31, December 31, 2019 2018 2017 2019 2018 2017 (Euro, in thousands) (Euro, in thousands) Lease payments Present value of lease payments Lease liabilities Within one year € 6,189 € 9 € 5,826 € 9 In the second to fifth years inclusive 16,320 15,783 After five years 3,844 3,775 € 26,353 - € 9 € 25,384 - € 9 Less future finance charges Present value of lease liabilities € 25,384 - € 9 Less amount due for settlement within 12 months Amount due for settlement after 12 months € 19,558 - € - |
Trade and other liabilities (Ta
Trade and other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other liabilities | |
Schedule of trade and other liabilities | December 31, 2019 2018 2017 (Euro, in thousands) Trade and other liabilities € 142,510 € 68,038 € 47,122 Other non-current liabilities 6,989 1,578 1,662 Accrued charges 923 890 1,159 Total trade and other liabilities € 150,422 € 70,506 € 49,942 |
Deferred income (Tables)
Deferred income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred income | |
Schedule of deferred income | December 31, 2019 2018 2017 (Euro, in thousands) Deferred income related to contracts Gilead collaboration agreement for filgotinib € 780,261 € 145,798 € 213,981 Gilead collaboration agreement for drug discovery platform (1) 2,220,013 AbbVie collaboration for CF 3,223 Servier collaboration agreement for osteoarthritis 5,362 Deferred income related to contracts in our fee-for-service segment 362 471 248 Other deferred income (grants) 10 309 301 Total deferred income ( long term & current) € 3,000,646 € 149,801 € 219,892 (1) This amount comprises an issuance liability for subsequent warrant B of €16,184 thousand. |
Schedule of movement in the non-current and current deferred income | Total Gilead collaboration agreement for filgotinib Gilead collaboration agreement for GLPG1690 Gilead collaboration agreement for drug discovery platform (2) AbbVie collaboration agreement for CF Servier collaboration agreement for osteoarthritis Deferred income related to contracts in our fee-for-service segment Other (Euro, in thousands) On Januari 1, 2017 € 285,612 € 285,313 € 47 € 252 Upfront/license fees received 6,000 € 6,000 Revenue recognition of upfront/license fees (71,971) (71,333) (638) Other movements 250 202 48 On December 31, 2017 219,892 213,981 € — € — € — 5,362 248 300 Reclassified from equity following adoption of IFRS 15 83,220 43,832 44,749 (5,362) Upfront received 38,874 38,874 Milestones received 20,965 12,417 8,548 Revenue recognition of upfront (148,985) (96,809) (52,176) Revenue recognition of milestones (64,394) (27,623) (36,771) Other movements 229 222 7 On December 31, 2018 149,801 145,798 — — 3,224 — 471 308 Upfront received and impact of initial valuation of share subscription 3,655,416 641,663 666,967 2,346,787 Milestones received 49,727 27,317 22,410 Significant financing component 6,900 6,900 Revenue recognition of upfront (1,009,663) (260,207) (666,967) (80,918) (1,570) Revenue recognition of milestones (51,156) (27,092) (24,064) Catch-up effect on closing date (1) 245,883 245,883 Other movements (46,262) (45,856) (109) (297) On December 31, 2019 € 3,000,646 € 780,261 € — € 2,220,013 € — € — € 362 € 10 (1) Following the contract amendment, the revenue recognized for filgotinib for the year ended December 31, 2019 included a negative catch-up effect resulting from the decrease in the percentage of completion applied to previously received upfront and milestones for that program. The upfront received and the outstanding balance at December 31, 2019 comprise the issuance liabilities for the warrants and the upfront payment allocated to the drug discovery platform. Other movements include the derecognition of warrant issuance liabilities through the share premium account. |
Operating Cash Flow (Tables)
Operating Cash Flow (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Consolidated Statement of Cash Flows | |
Adjustments related to operating cash flow | December 31, 2019 2018 2017 (Euro, in thousands) Adjustment for non-cash transactions Depreciation and amortization € 12,448 € 5,081 € 4,285 Impairment loss 1,083 Share-based compensation expenses 38,297 26,757 16,536 Decrease (-)/increase in retirement benefit obligations and provisions (156) 99 23 Unrealized exchange losses/gains (-) and non-cash other financial expenses 11,169 (10,063) 27,457 Discounting effect of deferred income 6,900 Fair value re-measurement of share subscription agreement and warrants 181,644 Net fair value adjustment current financial investments 3,081 Fair value adjustment financial assets held at fair value through profit or loss (5,355) (1,203) Total adjustment for non-cash transactions € 248,027 € 21,753 € 48,301 Adjustment for items to disclose separately under operating cash flow Interest expense € 1,302 € 780 € 936 Interest income (9,247) (5,219) (3,045) Tax expense 214 50 198 Total adjustment for items to disclose separately under operating cash flow € (7,731) € (4,389) € (1,912) Adjustment for items to disclose under investing and financing cash flows Gain on sale of assets € (2) € (668) € Interest income on current financial investments (5,059) Total adjustment for items to disclose separately under investing and financing cash flow € (5,061) € (668) € — Change in working capital other than deferred income Decrease in inventories € 20 € 3 € 22 Increase in receivables (67,263) (76) (27,656) Increase in liabilities 79,940 19,996 14,772 Total change in working capital other than deferred income € 12,698 € 19,922 € (12,862) |
Off-balance sheet arrangements
Off-balance sheet arrangements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Off-balance sheet arrangements | |
Schedule of outstanding obligation for future lease and purchase commitments | We entered into lease agreements for offices, laboratories and cars. As a consequence of the adoption of IFRS 16 Leases, on 1 January 2019, lease obligations in the scope of the new standard are presented as lease liabilities in the statements of financial position and no longer disclosed separately as off-balance sheet commitments. We refer to note 22 for a breakdown of our lease liabilities. On December 31, 2019, we had outstanding obligations for future purchase commitments, which become due as follows: Total Less than 1 - 3 3 - 5 More than 5 (Euro, in thousands) Purchase commitments € 251,670 € 175,006 € 70,675 € 5,989 € — |
Schedule of future cash outflows for leases that had not yet commenced | On December 31, 2019 we were committed to two leases which have not yet started. The total future cash outflows for leases that had not yet commenced were as follows: Total Less than 1 - 3 3 - 5 More than 5 (Euro, in thousands) Lease commitments not yet commenced € 8,986 € 5,793 € 1,502 € 1,502 € 188 |
Schedule of future minimum rent payments and purchase commitments | On December 31, 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 € 27,704 € 4,722 € 10,024 € 6,234 € 6,724 Purchase commitments (*) 222,033 121,139 81,879 19,014 — Total contractual obligations & commitments € 249,737 € 125,862 € 91,903 € 25,248 € 6,724 (*) Subsequent to the issuance of our consolidated financial statements for the year ended December 31, 2018, we noted that the total of our purchase commitments as disclosed in note 26 to our consolidated financial statements for the year ended December 31, 2018 was understated by €22.5 million. In addition, the split based on the expected due date was not presented correctly. Management assessed the materiality of the errors from a quantitative and qualitative perspective and concluded that the correction was not material to our previously issued consolidated financial statements. We elected to adjust the historical consolidated financial information presented in this disclosure note to reflect the correction of this error. Since the revisions were not material, no amendments to previously filed reports were required. The total purchase commitments due within 1 year were understated by €14.6 million, those due within 1-3 year were understated by €29.2 million and the ones becoming due within 3-5 years were overstated by €21.3 million. Each affected item within this line relating to this correction has been adjusted. 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 |
Warrant plans (Tables)
Warrant plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Warrant plans | |
Schedule of summary of warrants outstanding and exercisable per warrant plan | Outstanding Outstanding Exercisable per Granted Exercised Forfeited Expired per per Allocation Expiry Exercise January 1, during during during during December 31, December 31, Warrant plan date date price (€) 2019 year year year year 2019 2019 2006 BNL 21/12/2007 20/12/2020 7.12 1,050 1,050 1,050 2007 28/06/2007 27/06/2020 8.65 29,374 (29,374) — — 2007 RMV 25/10/2007 24/10/2020 8.65 24,550 (9,570) 14,980 14,980 2008 26/06/2008 25/06/2021 5.6 77,100 (75,735) 1,365 1,365 2011 23/05/2011 22/05/2019 9.95 37,500 (37,500) — — 2012 03/09/2012 02/09/2020 14.19 110,040 (30,000) 80,040 80,040 2013 16/05/2013 15/05/2021 19.38 195,560 (75,126) 120,434 120,434 2014 25/07/2014 24/07/2022 14.54 347,560 (95,220) 252,340 252,340 2014 (B) 14/10/2014 13/10/2022 11.93 60,000 (60,000) — — 2015 30/04/2015 29/04/2023 28.75 515,053 (232,580) 282,473 282,473 2015 (B) 22/12/2015 21/12/2023 49.00 399,000 (69,500) 329,500 329,500 2015 RMV 22/12/2015 21/12/2023 49.00 97,500 (40,000) 57,500 57,500 2016 01/06/2016 31/05/2024 46.10 504,250 504,250 2016 RMV 01/06/2016 31/05/2024 46.10 120,000 120,000 2016 (B) 20/01/2017 19/01/2025 62.50 150,000 150,000 2017 17/05/2017 16/05/2025 80.57 595,500 595,500 2017 RMV 17/05/2017 16/05/2025 80.57 127,500 127,500 2018 19/04/2018 18/04/2026 79.88 1,097,745 (12,500) 1,085,245 2018 RMV 19/04/2018 18/04/2026 79.88 137,500 137,500 2019 10/04/2019 09/04/2027 95.11 1,504,940 (18,250) 1,486,690 2019 RMV 10/04/2019 09/04/2027 95.11 194,750 194,750 Total 4,626,782 1,699,690 (754,605) (30,750) — 5,541,117 1,139,682 |
Schedule of summary of warrants outstanding and exercisable | Weighted average exercise Warrants price (Euro) Outstanding on January 1, 2017 3,466,407 € 27.1 Exercisable on December 31, 2016 669,704 10.3 Granted during the period 873,000 77.5 Forfeited during the year — Exercised during the period (368,200) 14.4 Expired during the year (400) 19.4 Outstanding on December 31, 2017 3,970,807 € 39.3 Exercisable on December 31, 2017 763,344 13.7 Granted during the period 1,235,245 79.9 Forfeited during the year (12,000) 43.2 Exercised during the period (567,270) 13.5 Expired during the year — Outstanding on December 31, 2018 4,626,782 € 53.3 Exercisable on December 31, 2018 882,734 14.0 Granted during the period 1,699,690 95.1 Forfeited during the year (30,750) 88.9 Exercised during the period (754,605) 22.8 Expired during the year — Outstanding on December 31, 2019 5,541,117 € 70.1 Exercisable on December 31, 2019 1,139,682 30.2 |
Schedule of summary of warrants outstanding by category | 2019 2019 RMV 2018 2018 RMV 2017 2017 RMV April 19 April 19 April 18 April 18 May 17 May 17 Exercise Price (€) € 95.11 € 95.11 € 79.88 € 79.88 € 80.57 € 80.57 Weighted average share price at acceptance date (€) € 107.05 € 107.45 € 84.88 € 84.88 € 68.67 € 68.67 Weighted average fair value on the acceptance date (€) € 40.04 € 40.05 € 38.39 € 38.39 € 26.86 € 26.80 Weighted average estimated volatility (%) 35.86 35.63 39.44 39.44 40.06 40.08 Weighted average expected life of the warrant (years) 6 6 8 8 8 8 Weighted average risk free rate (%) (0.27) (0.28) 0.51 0.51 0.33 0.29 Expected dividends None None None None None None |
Overview of outstanding warrants | December 31, 2019 2018 2017 (in number of warrants) Non-executive directors 222,600 216,780 216,060 Executive team 2,171,874 2,139,374 2,039,374 Other 3,146,643 2,270,628 1,715,373 Total warrants outstanding 5,541,117 4,626,782 3,970,807 |
Related parties (Tables)
Related parties (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related parties | |
Summary of outstanding balances | December 31, 2019 (Euro, in thousands) Trade and other receivables € 31,645 Trade and other payables € 39,100 |
Summary of remuneration package of the members of key management personnel | Year ended December 31, 2019 2018 2017 Remuneration of key management personnel: Euro, in thousands (except for the number of warrants and RSUs) Short-term benefits for executive committee members as a group € 14,129 € 2,909 € 2,477 Gross salary 2,121 1,920 1,639 Employer social security on gross salary 61 125 31 Cash bonus (*) 1,230 757 697 Exceptional bonus 10,500 Employer social security on exceptional bonus 108 Other short-term benefits 109 107 110 Long-term benefits for executive committee members as a group (1) 1,874 1,812 1,217 Board fees and other short-term benefits for directors Raj Parekh 90 92 91 Harrold van Barlingen (2) 15 45 Howard Rowe 55 53 45 Werner Cautreels (3) 15 48 55 Katrine Bosley 45 45 45 Christine Mummery (3) 13 40 41 Mary Kerr 45 46 41 Peter Guenter (4) 30 Daniel O'Day (5) Linda Higgins (5) Post-employment benefits (6) 323 305 248 Total benefits excluding warrants and RSUs (7) € 16,619 € 5,346 € 4,305 Number of warrants granted in the year Executive committee members as a group 315,000 350,000 475,000 Raj Parekh 15,000 15,000 15,000 Harrold van Barlingen (2) 7,500 Howard Rowe 7,500 7,500 7,500 Werner Cautreels (3) 7,500 7,500 Katrine Bosley 7,500 7,500 7,500 Christine Mummery (3) 7,500 7,500 Mary Kerr 7,500 7,500 7,500 Peter Guenter (4) 7,500 Daniel O'Day (5) Linda Higgins (5) Total number of warrants granted in the year 360,000 402,500 535,000 Total cost of warrants granted in the year € 14,236 € 15,507 € 15,699 Number of RSUs granted in the year (8) 183,450 Total number of RSUs granted in the year 183,450 (1) Only executive committee members are granted long-term benefits. Pursuant to the Senior Management Bonus Scheme, these consist of the deferred part of the bonus from 3 years ago (2) Dr. Van Barlingen's director's mandate expired on April 24, 2018 (3) Director's mandate expired on April 30, 2019 (4) Mr. Guenter's director's mandate began on April 30, 2019 (5) Director's mandate began on October 22, 2019 (6) Only executive committee members are granted post-employment benefits (7) For 2018, this amount excludes an amount of €20.1 thousand tax advisory services that is included in the amount of €107 thousand other short-term benefits (8) This is the sum of the RSUs awarded during financial year 2019, excluding the RSUs representing the deferred portion of the bonus for 2019 (still to be granted). Only executive committee members were awarded RSUs (*) For 2017, this amount includes an amount of €5 employer social security |
Consolidated companies as of _2
Consolidated companies as of December 31, 2019 (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Consolidated companies as of December 31, 2019 | |
Disclosure of voting rights in consolidated companies | Year ended December 31, 2019 2018 2017 Name of the subsidiary Country % voting right Change in % % voting right % voting right BioFocus DPI AG in liquidation Switzerland 100% 100% 100% Galapagos Biopharma Belgium BV Belgium 100% 100% Galapagos Biopharma Netherlands B.V. The Netherlands 100% 100% Galapagos Biopharma Spain S.L.U Spain 100% 100% Galapagos Biopharma Italy S.r.l. Italy 100% 100% Galapagos Biopharma Germany GmbH Germany 100% 100% Galapagos B.V. The Netherlands 100% 100% 100% Galapagos Biotech Ltd. (formerly Inpharmatica Ltd.) United Kingdom 100% 100% 100% Galapagos GmbH Switzerland 100% 100% 100% Galapagos, Inc. (formerly Biofocus, Inc.) United States 100% 100% 100% Galapagos NV Belgium Parent company Parent company Parent company Galapagos Real Estate 1 BV Belgium 100% 100% Galapagos Real Estate 2 BV Belgium 100% 100% Galapagos Real Estate Netherlands B.V. The Netherlands 100% 100% Galapagos SASU France 100% 100% 100% Fidelta d.o.o. Croatia 100% 100% 100% Xenometrix, Inc. in liquidation United States 100% 100% 100% |
Financial risk management (Tabl
Financial risk management (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial risk management | |
Disclosure of categories of material financial assets and liabilities | December 31, 2019 2018 2017 (Euro, in thousands) Financial assets held at fair value through profit or loss Equity instruments € 11,275 € 6,000 € 1,754 Current financial investments 3,919,216 — — Financial assets at amortised cost Cash and cash equivalents 1,861,616 1,290,796 1,151,211 Restricted cash (current and non-current) 1,418 1,276 1,158 Trade and other receivables (excl prepayments) 53,717 18,467 27,422 Total financial assets € 5,847,242 € 1,316,539 € 1,181,545 Financial liabilities held at fair value through profit or loss Current financial instruments € 6,198 € — € — Financial liabilities at amortised cost Trade & other liabilities 142,510 68,038 47,122 Other non-current liabilities 6,914 1,502 1,597 Lease liabilities 25,384 — 9 Total financial liabilities € 181,006 € 69,540 € 48,727 |
Disclosure of aging balance of receivables | December 31, 2019 2018 2017 (Euro, in thousands) 60 - 90 days € 87 € 236 € — 90 - 120 days — 12 1 more than 120 days € — € — € — |
Foreign exchange risk | |
Financial risk management | |
Disclosure of sensitivity of exchange rate risk | December 31, 2019 2018 2017 Net book value (Euro, in thousands) Increase in Euros - U.S. Dollars € (133,373) € (27,200) € (21,083) Increase in Euros - GB Pounds 113 100 122 Increase in Euros - CH Francs 538 208 203 Increase in Euros - HR Kunas 650 611 (185) Increase in U.S. Dollars - GB Pounds € (894) € (923) € (831) |
General information (Details)
General information (Details) | Dec. 31, 2019employee |
General information. | |
Number of employees | 1,003 |
Summary of significant transa_2
Summary of significant transaction (Details) € / shares in Units, € in Thousands, $ in Millions | Nov. 06, 2019EUR (€) | Oct. 22, 2019individual€ / shares | Aug. 23, 2019USD ($) | Aug. 23, 2019EUR (€) | Jul. 14, 2019€ / shares | Jul. 14, 2019USD ($)Programitem | Jul. 13, 2019 | Aug. 31, 2019 | Dec. 31, 2019USD ($)Milestone | Dec. 31, 2019EUR (€)Milestone€ / shares | Dec. 31, 2018EUR (€)€ / shares | Dec. 31, 2017EUR (€)€ / shares | Aug. 23, 2019EUR (€) |
Summary of significant transaction | |||||||||||||
Global research and development collaboration term | 10 years | ||||||||||||
Number of molecules | item | 6 | ||||||||||||
Number of preclinical programs | Program | 20 | ||||||||||||
Upfront payment received | $ 3,950 | € 3,569,800 | |||||||||||
Equity investment received | $ 1,100 | € 960,100 | |||||||||||
Additional equity investment from warrant exercise | € | € 17,167 | € 7,657 | € 5,288 | ||||||||||
Cost Share For Global Development Activities | 50.00% | 50.00% | |||||||||||
Number of directors represented as board members | individual | 2 | ||||||||||||
Option rights period | 10 years | ||||||||||||
Extension option rights period | 3 years | ||||||||||||
Opt-in payments to be received for each program | $ 150 | ||||||||||||
Average exercise price warrants | € / shares | € 22.8 | € 13.5 | € 14.4 | ||||||||||
GLPG 1690 License | |||||||||||||
Summary of significant transaction | |||||||||||||
Regulatory milestone fee | 325 | ||||||||||||
GLPG 1972 License | |||||||||||||
Summary of significant transaction | |||||||||||||
Regulatory milestone fee | 550 | ||||||||||||
Additional milestone fee | $ 200 | ||||||||||||
Filgotinib drug license | |||||||||||||
Summary of significant transaction | |||||||||||||
Future global development cost sharing ratio before predetermined level | 80.00% | ||||||||||||
Development and regulatory milestones | $ 640 | ||||||||||||
Sales based milestone payment | 600 | ||||||||||||
Number of milestone payments achieved | Milestone | 2 | 2 | |||||||||||
Proceeds from milestone payments | $ 30 | ||||||||||||
United States | GLPG 1972 License | |||||||||||||
Summary of significant transaction | |||||||||||||
Milestone fee on election of option to license | $ 250 | ||||||||||||
France, Germany, Italy, Spain and the United Kingdom | Filgotinib drug license | |||||||||||||
Summary of significant transaction | |||||||||||||
Profit sharing ratio | 50.00% | ||||||||||||
Belgium, the Netherlands and Luxembourg | Filgotinib drug license | |||||||||||||
Summary of significant transaction | |||||||||||||
Profit sharing ratio | 50.00% | ||||||||||||
Minimum | |||||||||||||
Summary of significant transaction | |||||||||||||
Cost Share For Global Development Activities | 20.00% | 20.00% | |||||||||||
Minimum | Outside Europe | |||||||||||||
Summary of significant transaction | |||||||||||||
Tiered royalty Percentage | 20.00% | ||||||||||||
Minimum | Outside Europe | GLPG 1690 License | |||||||||||||
Summary of significant transaction | |||||||||||||
Tiered royalty Percentage | 20.00% | ||||||||||||
Minimum | Countries outside of Belgium, France, Germany, Italy, Luxembourg, the Netherlands, Spain and the United Kingdom | Filgotinib drug license | |||||||||||||
Summary of significant transaction | |||||||||||||
Tiered royalty Percentage | 20.00% | 20.00% | |||||||||||
Maximum | |||||||||||||
Summary of significant transaction | |||||||||||||
Cost Share For Global Development Activities | 50.00% | 50.00% | |||||||||||
Maximum | Outside Europe | |||||||||||||
Summary of significant transaction | |||||||||||||
Tiered royalty Percentage | 24.00% | ||||||||||||
Maximum | Outside Europe | GLPG 1690 License | |||||||||||||
Summary of significant transaction | |||||||||||||
Tiered royalty Percentage | 24.00% | ||||||||||||
Maximum | Countries outside of Belgium, France, Germany, Italy, Luxembourg, the Netherlands, Spain and the United Kingdom | Filgotinib drug license | |||||||||||||
Summary of significant transaction | |||||||||||||
Tiered royalty Percentage | 30.00% | 30.00% | |||||||||||
Gilead | |||||||||||||
Summary of significant transaction | |||||||||||||
Share price | € / shares | € 140.59 | ||||||||||||
Premium | 20.00% | ||||||||||||
Volume of days | 30 days | ||||||||||||
Percentage of stake | 25.10% | 22.04% | 12.30% | 25.84% | 25.84% | ||||||||
Restricting Gilead's ability to seek to acquire | 10 years | ||||||||||||
Maximum share holding percentage | 29.90% | ||||||||||||
Gilead | Filgotinib drug license | |||||||||||||
Summary of significant transaction | |||||||||||||
Future global development cost sharing ratio before predetermined level | 20.00% | ||||||||||||
Gilead | France, Germany, Italy, Spain and the United Kingdom | Filgotinib drug license | |||||||||||||
Summary of significant transaction | |||||||||||||
Profit sharing ratio | 50.00% | ||||||||||||
Gilead | Belgium, the Netherlands and Luxembourg | Filgotinib drug license | |||||||||||||
Summary of significant transaction | |||||||||||||
Profit sharing ratio | 50.00% | ||||||||||||
Gilead | Minimum | |||||||||||||
Summary of significant transaction | |||||||||||||
EGM Conducted period | 57 months | ||||||||||||
Gilead | Maximum | |||||||||||||
Summary of significant transaction | |||||||||||||
Percentage of stake | 29.90% | ||||||||||||
EGM Conducted period | 59 months | ||||||||||||
Warrant A | Gilead | |||||||||||||
Summary of significant transaction | |||||||||||||
Additional equity investment from warrant exercise | € | € 368,000 | ||||||||||||
Warrant B | |||||||||||||
Summary of significant transaction | |||||||||||||
Multiplier used to calculate exercise price per share | 120.00% | ||||||||||||
Initial term of the warrant | 5 years | ||||||||||||
Average exercise price warrants | € / shares | € 140.59 | ||||||||||||
Volume of days | 30 days |
Significant accounting polici_4
Significant accounting policies (Details) - EUR (€) € in Thousands | Jan. 01, 2018 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about adoption of IFRS 16 | |||||
Operating lease commitments disclosed as at December 31, 2018 | € 27,704 | € 26,346 | |||
Lease liability | 9 | ||||
Current lease liabilities | € 5,826 | 9 | |||
Non-current lease liabilities | 19,558 | ||||
Change in accounting policy affected the statement of financial position | |||||
Property, plant and equipment (right-of-use assets) | 40,707 | 23,137 | 16,692 | ||
Other current assets (prepaid expenses) | (9,138) | (8,244) | (6,688) | ||
Total assets | 6,068,609 | 1,439,496 | 1,286,274 | ||
Accumulated losses | (109,223) | (297,779) | (211,441) | ||
Lease liabilities (current and non-current) | 9 | ||||
Deferred income | (414,298) | (149,801) | (122,544) | ||
Total equity and liabilities | 6,068,609 | 1,439,496 | 1,286,274 | ||
IFRS 16 | |||||
Disclosure of detailed information about adoption of IFRS 16 | |||||
Weighted average incremental borrowing rate | 1.55% | ||||
Operating lease commitments disclosed as at December 31, 2018 | € 27,704 | ||||
Less : discounting effect using the lessee's incremental borrowing rate at the date of initial application | € (1,223) | ||||
Less : other | (569) | ||||
Lease liability | 25,384 | 25,912 | |||
Current lease liabilities | 5,826 | 4,516 | 9 | ||
Non-current lease liabilities | 19,558 | 21,396 | |||
Change in accounting policy affected the statement of financial position | |||||
Property, plant and equipment (right-of-use assets) | 26,406 | ||||
Other current assets (prepaid expenses) | (494) | ||||
Total assets | 25,912 | ||||
Accumulated losses | 416 | ||||
Lease liabilities (current and non-current) | € 25,384 | 25,912 | |||
Deferred income | (416) | ||||
Total equity and liabilities | € 25,912 | ||||
IFRS 15 | |||||
Change in accounting policy affected the statement of financial position | |||||
Accumulated losses | € 83,200 | ||||
Deferred income | 83,200 | ||||
IFRS 9 | |||||
Change in accounting policy affected the statement of financial position | |||||
Fair value loss reclassified to accumulated losses | € 600 | ||||
IAS 39 | |||||
Change in accounting policy affected the statement of financial position | |||||
Cumulative fair value loss recognized in other comprehensive income | € 600 |
Significant accounting polici_5
Significant accounting policies - Impact of adoption of IFRS 15 (Details) - EUR (€) € / shares in Units, € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of initial application of standards or interpretations [line items] | |||
Revenues | € 844,985 | € 288,836 | € 127,087 |
Loss before tax | 150,060 | (29,209) | (115,507) |
Income taxes | (214) | (50) | (198) |
Net income/loss (-) | 149,845 | € (29,259) | (115,704) |
Basic and diluted loss per share | € (0.56) | ||
Deferred income | 414,298 | € 149,801 | 122,544 |
Retained earnings / accumulated losses (-) | € (109,223) | (297,779) | (211,441) |
IAS18 | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Revenues | 232,800 | € 127,087 | |
Loss before tax | (85,245) | ||
Income taxes | (50) | ||
Net income/loss (-) | € (85,295) | ||
Basic and diluted loss per share | € (1.64) | ||
Deferred income | € 122,617 | ||
Retained earnings / accumulated losses (-) | (270,595) | ||
Effect of change between IFRS 15 and IAS 18 | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Revenues | 56,036 | ||
Loss before tax | 56,036 | ||
Net income/loss (-) | € 56,036 | ||
Basic and diluted loss per share | € 1.08 | ||
Deferred income | € 27,184 | ||
Retained earnings / accumulated losses (-) | € (27,184) |
Significant accounting polici_6
Significant accounting policies - Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Customer relationships | Minimum | |
Disclosure of detailed information about intangible assets | |
Useful lives | 1 year |
Customer relationships | Maximum | |
Disclosure of detailed information about intangible assets | |
Useful lives | 10 years |
In process technology | Minimum | |
Disclosure of detailed information about intangible assets | |
Useful lives | 3 years |
In process technology | Maximum | |
Disclosure of detailed information about intangible assets | |
Useful lives | 5 years |
Software and databases | Minimum | |
Disclosure of detailed information about intangible assets | |
Useful lives | 3 years |
Software and databases | Maximum | |
Disclosure of detailed information about intangible assets | |
Useful lives | 5 years |
Brands, licenses, patents and know-how | Minimum | |
Disclosure of detailed information about intangible assets | |
Useful lives | 5 years |
Brands, licenses, patents and know-how | Maximum | |
Disclosure of detailed information about intangible assets | |
Useful lives | 15 years |
Significant accounting polici_7
Significant accounting policies - Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Minimum | Installation and machinery | |
Disclosure of detailed information about property, plant and equipment | |
Useful lives | 3 years |
Minimum | Furniture, fixtures & vehicles | |
Disclosure of detailed information about property, plant and equipment | |
Useful lives | 4 years |
Maximum | Installation and machinery | |
Disclosure of detailed information about property, plant and equipment | |
Useful lives | 15 years |
Maximum | Furniture, fixtures & vehicles | |
Disclosure of detailed information about property, plant and equipment | |
Useful lives | 10 years |
Significant accounting polici_8
Significant accounting policies - Employee Benefits (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Significant accounting policies | ||
Percentage of bonus paid immediately around year-end, Senior Management Bonus Scheme | 50.00% | 50.00% |
Percentage of deferred bonus paid for three years, Senior Management Bonus Scheme | 50.00% | 50.00% |
Term of deferrment for the remaining 50% bonus payment, Senior Management Bonus Scheme | 3 years | 3 years |
Share price below threshold in which the deferred bonus will be adjusted and the remainder will be forfeited | 10.00% | 10.00% |
Share price above threshold in which the deferred bonus will be forfeited | 10.00% | 10.00% |
Significant accounting polici_9
Significant accounting policies - Segment Reporting (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
Significant accounting policies | |
Number of reportable segments | 2 |
Critical accounting judgments_2
Critical accounting judgments and key sources of estimation uncertainty - IFRS 15 – Revenue recognition Gilead (Details) € in Millions | 12 Months Ended | |
Dec. 31, 2019EUR (€)item | Jul. 14, 2019EUR (€) | |
Critical accounting estimates and judgments | ||
Fair value gain warrant A & B as derivatives | € 12.9 | |
Decrease of the deferred income warrant a & b as derivatives | (28.6) | |
Decrease in revenue recognized in current period warrant a & b as derivatives | (0.5) | |
Equity increase and future revenue reduction | 85.6 | |
Revenue from contracts with customers related to glpg1690 | € 17.7 | |
Drug discovery platform revenue period | 10 years | |
Decrease in interest expenses | € (6.9) | |
Decrease in revenue recognition | (11.8) | |
Decrease in current and non-current deferred income | € (4.9) | |
Gilead | ||
Critical accounting estimates and judgments | ||
Number of performance obligations exceeding one year | item | 2 | |
Period recognized to consideration paid for the platform | 10 years | |
Gilead | Derivative financial instrument | ||
Critical accounting estimates and judgments | ||
Offsetting short term financial asset (derivative) | € 85.6 | |
Number of performance obligations exceeding one year | item | 3 |
Segment information (Details)
Segment information (Details) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019EUR (€)segment | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | |
Disclosure of operating segments [line items] | |||
Number of reportable segments | segment | 2 | ||
Revenues | € 844,985 | € 288,836 | € 127,087 |
Other income | 50,905 | 29,009 | 28,830 |
Total revenues and other income | 895,890 | 317,845 | 155,918 |
Operating income/loss (-) | 370,292 | (44,807) | (89,802) |
Financial (expenses)/income | (220,233) | 15,598 | (25,705) |
Income/loss (-) before tax | 150,060 | (29,209) | (115,507) |
Income taxes | (214) | (50) | (198) |
Net income/loss (-) | 149,845 | (29,259) | (115,704) |
Segment result | |||
Disclosure of operating segments [line items] | |||
Operating income/loss (-) | 408,589 | (17,983) | (73,524) |
Elimination of Inter segment amounts total | |||
Disclosure of operating segments [line items] | |||
Revenues | (6,742) | (8,508) | (5,104) |
Total revenues and other income | (6,742) | (8,508) | (5,104) |
Unallocated amounts | |||
Disclosure of operating segments [line items] | |||
Operating income/loss (-) | (38,297) | (26,824) | (16,278) |
Warrant costs | |||
Disclosure of operating segments [line items] | |||
Operating income/loss (-) | (26,757) | (16,536) | |
Research and Development Segment | |||
Disclosure of operating segments [line items] | |||
Revenues | 834,901 | 278,666 | 118,262 |
Other income | 50,905 | 29,000 | 28,815 |
Total revenues and other income | 885,806 | 307,666 | 147,077 |
Research and Development Segment | Segment result | |||
Disclosure of operating segments [line items] | |||
Operating income/loss (-) | 407,464 | (19,734) | (73,610) |
Fee for services segment | |||
Disclosure of operating segments [line items] | |||
Revenues | 10,084 | 10,170 | 8,825 |
Other income | 9 | 15 | |
Total revenues and other income | 16,826 | 18,687 | 13,945 |
Fee for services segment | Segment result | |||
Disclosure of operating segments [line items] | |||
Operating income/loss (-) | 1,125 | 1,751 | 86 |
Fee for services segment | Elimination of intersegment amounts | |||
Disclosure of operating segments [line items] | |||
Revenues | € 6,742 | € 8,508 | € 5,104 |
Segment information - Major cus
Segment information - Major customers (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of major customers [line items] | |||
Revenue | € 844,985 | € 288,836 | € 127,087 |
North America | |||
Disclosure of major customers [line items] | |||
Revenue | 795,605 | 117,609 | 82,050 |
Europe | |||
Disclosure of major customers [line items] | |||
Revenue | 49,018 | 171,113 | € 45,037 |
Asia Pacific | |||
Disclosure of major customers [line items] | |||
Revenue | 362 | € 114 | |
Gilead | North America | |||
Disclosure of major customers [line items] | |||
Percentage of entity's revenue | 80687.00% | ||
Gilead | North America and Europe | |||
Disclosure of major customers [line items] | |||
Negative catch-up effect on closing date resulting from the decrease in the percentage of completion applied to previously received upfront and milestones | € 245,900 | ||
AbbVie | Europe | |||
Disclosure of major customers [line items] | |||
Percentage of entity's revenue | 34049.00% | ||
Les Laboratoires Servier | Europe | |||
Disclosure of major customers [line items] | |||
Percentage of entity's revenue | 67.00% | ||
Revenues by major customers | |||
Disclosure of major customers [line items] | |||
Percentage of entity's revenue | 114804.00% |
Segment information - Non-curre
Segment information - Non-current assets by location (Details) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of geographical areas [line items] | |||
Non-current assets | € 202,682 | € 110,645 | € 88,627 |
Belgium | |||
Disclosure of geographical areas [line items] | |||
Non-current assets | 133,000 | 64,000 | 47,000 |
France | |||
Disclosure of geographical areas [line items] | |||
Non-current assets | 54,000 | 36,000 | 34,000 |
Croatia | |||
Disclosure of geographical areas [line items] | |||
Non-current assets | 7,000 | 5,000 | 4,000 |
The Netherlands | |||
Disclosure of geographical areas [line items] | |||
Non-current assets | 8,000 | 4,000 | 4,000 |
Switzerland | |||
Disclosure of geographical areas [line items] | |||
Non-current assets | € 1,000 | € 0 | € 0 |
Total revenues and other inco_3
Total revenues and other income - Disaggregation of revenues (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Recognition of non-refundable upfront payments and license fees | € 812,058 | € 196,486 | € 71,971 |
Milestone payments | 2,878 | 73,394 | 42,950 |
Reimbursement income | 19,900 | 8,722 | 3,273 |
Other revenues | 10,150 | 10,233 | 8,893 |
Revenues | 844,985 | 288,836 | 127,087 |
Research and Development Segment | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenues | 834,901 | 278,666 | 118,262 |
Fee for services segment | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenues | 10,084 | 10,170 | 8,825 |
Other | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Reimbursement income | 16 | ||
Other revenues | 66 | 63 | |
Over time | Fee for services segment | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Other revenues | 10,084 | 10,170 | |
IFRS 15 | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Recognition of non-refundable upfront payments and license fees | 196,486 | ||
Milestone payments | 73,394 | ||
Reimbursement income | 8,722 | ||
Other reimbursement income | 16 | ||
Other revenues | 10,233 | ||
Revenues | 288,836 | ||
IFRS 15 | Other | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Other revenues | 63 | ||
IFRS 15 | Over time | Fee for services segment | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Other revenues | 10,170 | ||
IFRS 15 | Gilead | Over time | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Recognition of non-refundable upfront payments and license fees | 96,809 | ||
Milestone payments | 27,623 | ||
IFRS 15 | AbbVie | Over time | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Recognition of non-refundable upfront payments and license fees | 52,176 | ||
Milestone payments | 36,771 | ||
Reimbursement income | 989 | ||
IFRS 15 | Novartis | Over time | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Reimbursement income | 7,718 | ||
IFRS 15 | Novartis | Point in time | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Recognition of non-refundable upfront payments and license fees | 47,500 | ||
IFRS 15 | Servier | Point in time | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Milestone payments | 9,000 | ||
IAS18 | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Recognition of non-refundable upfront payments and license fees | 71,971 | ||
Milestone payments | 42,950 | ||
Reimbursement income | 3,273 | ||
Other reimbursement income | 4 | ||
Other revenues | 8,893 | ||
Revenues | 232,800 | 127,087 | |
IAS18 | Other | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Other revenues | 68 | ||
IAS18 | Over time | Fee for services segment | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Other revenues | 8,825 | ||
IAS18 | Gilead | Over time | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Recognition of non-refundable upfront payments and license fees | 71,333 | ||
IAS18 | Gilead | Point in time | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Milestone payments | 9,354 | ||
IAS18 | AbbVie | Point in time | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Milestone payments | 33,596 | ||
Reimbursement income | 453 | ||
IAS18 | Servier | Over time | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Recognition of non-refundable upfront payments and license fees | 638 | ||
IAS18 | Servier | Point in time | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Reimbursement income | € 2,816 | ||
Gilead collaboration agreement for GLPG 1690 | Gilead | Point in time | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Recognition of non-refundable upfront payments and license fees | 666,968 | ||
Collaboration agreement for filgotinib | Gilead | Over time | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Recognition of non-refundable upfront payments and license fees | 62,602 | 96,809 | |
Milestone payments | (21,187) | 27,623 | |
Collaboration agreement for CF | AbbVie | Over time | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Recognition of non-refundable upfront payments and license fees | 1,569 | 52,176 | |
Milestone payments | 24,065 | 36,771 | |
Reimbursement income | 723 | 989 | |
Servier collaboration agreement for osteoarthritis | Servier | Point in time | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Milestone payments | 9,000 | ||
Gilead collaboration agreement for drug discovery platform | Gilead | Over time | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Recognition of non-refundable upfront payments and license fees | 80,918 | ||
Collaboration agreement for MOR106 | Novartis | Over time | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Reimbursement income | € 19,177 | 7,718 | |
Collaboration agreement for MOR106 | Novartis | Point in time | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Recognition of non-refundable upfront payments and license fees | € 47,500 |
Total revenues and other inco_4
Total revenues and other income - Allocation of transaction price (Details) € in Thousands, $ in Millions | Jul. 14, 2019USD ($) | Jul. 14, 2019EUR (€) | Jul. 14, 2019EUR (€)Programitem | Jul. 31, 2018EUR (€) | Dec. 31, 2019EUR (€)item |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Upfront received | $ 3,950 | € 3,569,800 | |||
Estimated significant financing component | € 44,500 | ||||
Drug discovery platform revenue period | 10 years | ||||
Global research and development collaboration term | 10 years | ||||
Number of molecules | item | 6 | ||||
Number of preclinical programs | Program | 20 | ||||
Period over which to recognize the drug discovery platform revenue | 10 years | ||||
Maximum extension period for specific program | 3 years | ||||
Filgotinib additional consideration | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Number of performance obligations exceeding one year | item | 1 | ||||
Subsequent warrant B | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Total transaction price | € (16,184) | ||||
Novartis | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Upfront received | € 95,000 | ||||
Gilead | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Upfront received | 3,569,815 | ||||
Impact initial valuation of share subscription | 85,601 | ||||
Total transaction price | 3,655,416 | ||||
Allocation to performance obligations | € 3,593,376 | ||||
Number of performance obligations exceeding one year | item | 2 | ||||
Period recognized to consideration paid for the platform | 10 years | ||||
Gilead | Warrant A | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Total transaction price | € (43,311) | ||||
Gilead | Initial Warrant B | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Total transaction price | (2,545) | ||||
Gilead | Subsequent warrant B | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Total transaction price | (16,184) | ||||
Gilead | GLPG1690 | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Allocation to performance obligations | 666,967 | ||||
Gilead | Filgotinib additional consideration | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Allocation to performance obligations | 641,663 | ||||
Gilead | Drug discovery platform (10 years) | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Allocation to performance obligations | € 2,284,747 | ||||
Gilead | Derivative financial instrument | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Number of performance obligations exceeding one year | item | 3 | ||||
Offsetting short term financial asset (derivative) | € 85,600 | € 85,600 |
Total revenues and other inco_5
Total revenues and other income - Recognition of payments (Details) € in Thousands, $ in Thousands | Aug. 23, 2019USD ($) | Aug. 23, 2019EUR (€) | Jul. 14, 2019USD ($) | Jul. 14, 2019EUR (€) | Dec. 31, 2019EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) |
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Upfront received | $ 3,950,000 | € 3,569,800 | ||||||||
Upfront Payment Received | $ 3,950,000 | € 3,569,800 | ||||||||
Deferred income | € 3,000,646 | € 149,801 | € 219,892 | € 285,612 | ||||||
Revenue recognized | 844,985 | 288,836 | 127,087 | |||||||
Gilead | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Upfront received | € 3,569,815 | |||||||||
Gilead | Collaboration agreement for filgotinib, Milestone payments, Current Period [member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Upfront received | $ | $ 15,000 | |||||||||
Upfront Payment Received | 12,418 | |||||||||
Gilead | Collaboration agreement for filgotinib, Upfront payment, Prior Period [member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Upfront received | $ | $ 300,000 | |||||||||
Upfront Payment Received | 275,558 | |||||||||
Gilead | Collaboration agreement for filgotinib, Subscription agreement, Prior Period [member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Upfront Payment Received | 39,003 | |||||||||
Deferred income | 39,000 | |||||||||
Gilead | Collaboration agreement for filgotinib, Milestone payments, Prior Period [member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Upfront received | $ | 70,000 | |||||||||
Upfront Payment Received | 64,435 | |||||||||
Servier | Collaboration agreement for osteoarthritis, Milestone payment, Current Period [member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Upfront Payment Received | 9,000 | |||||||||
Servier | Collaboration agreement for osteoarthritis, License fee, Prior Period [member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Upfront Payment Received | 6,000 | |||||||||
AbbVie | Collaboration agreement for CF, Upfront payment, Current Period [member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Upfront received | $ | 45,000 | |||||||||
Upfront Payment Received | 38,874 | |||||||||
AbbVie | Collaboration agreement for CF, Milestone payments, Current Period [member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Upfront received | $ | $ 10,000 | |||||||||
Upfront Payment Received | 8,548 | |||||||||
AbbVie | Collaboration agreement for CF, Upfront payments, Prior Period [member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Upfront received | $ | 45,000 | |||||||||
Upfront Payment Received | 34,001 | |||||||||
AbbVie | Collaboration agreement for CF, Milestone payments, Prior Period [member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Upfront received | $ | $ 77,500 | |||||||||
Upfront Payment Received | 68,310 | |||||||||
Novartis | Collaboration Agreement for MOR106, Upfront Payment, Current Period [Member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Upfront Payment Received | 47,500 | |||||||||
IAS18 | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Revenue recognized | 232,800 | 127,087 | ||||||||
IAS18 | Upfront and Milestone Payments and License Fees [Member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Revenue recognized | 213,845 | |||||||||
IAS18 | Upfront and Milestone Payments and License Fees Current Period [Member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Revenue recognized | 115,503 | |||||||||
IAS18 | Upfront Payments and License Fees, Current Period [Member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Revenue recognized | 85,537 | |||||||||
IAS18 | Milestone Payments for Current Period [Member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Revenue recognized | 29,966 | |||||||||
IAS18 | Upfront and Milestone Payments and License Fees, Prior Period [Member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Deferred income | 219,343 | |||||||||
Revenue recognized | 98,342 | 114,921 | ||||||||
IAS18 | Upfront Payments and License Fees, Prior Period [Member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Deferred income | 219,343 | |||||||||
Revenue recognized | 98,342 | 71,971 | ||||||||
IAS18 | Milestone Payments for Prior Period [Member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Revenue recognized | 42,950 | |||||||||
IAS18 | Gilead | Collaboration agreement for filgotinib, Milestone payments, Current Period [member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Revenue recognized | 12,418 | |||||||||
IAS18 | Gilead | Collaboration agreement for filgotinib, Upfront payment, Prior Period [member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Deferred income | 187,449 | |||||||||
Revenue recognized | 84,806 | 62,488 | ||||||||
IAS18 | Gilead | Collaboration agreement for filgotinib, Subscription agreement, Prior Period [member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Deferred income | 26,532 | |||||||||
Revenue recognized | 12,004 | 8,845 | ||||||||
IAS18 | Gilead | Collaboration agreement for filgotinib, Milestone payments, Prior Period [member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Revenue recognized | 9,354 | |||||||||
IAS18 | Servier | Collaboration agreement for osteoarthritis, Milestone payment, Current Period [member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Revenue recognized | 9,000 | |||||||||
IAS18 | Servier | Collaboration agreement for osteoarthritis, License fee, Prior Period [member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Deferred income | 5,362 | |||||||||
Revenue recognized | 1,532 | 638 | ||||||||
IAS18 | AbbVie | Collaboration agreement for CF, Upfront payment, Current Period [member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Revenue recognized | 38,037 | |||||||||
IAS18 | AbbVie | Collaboration agreement for CF, Milestone payments, Current Period [member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Revenue recognized | 8,548 | |||||||||
IAS18 | AbbVie | Collaboration agreement for CF, Milestone payments, Prior Period [member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Revenue recognized | 33,596 | |||||||||
IAS18 | Novartis | Collaboration Agreement for MOR106, Upfront Payment, Current Period [Member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Revenue recognized | 47,500 | |||||||||
IFRS 15 | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Revenue recognized | 288,836 | |||||||||
IFRS 15 | Upfront and Milestone Payments and License Fees [Member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Deferred income | 149,021 | |||||||||
Revenue recognized | 269,881 | |||||||||
IFRS 15 | Upfront and Milestone Payments and License Fees Current Period [Member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Deferred income | 5,646 | |||||||||
Revenue recognized | 110,694 | |||||||||
IFRS 15 | Upfront Payments and License Fees, Current Period [Member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Deferred income | 837 | |||||||||
Revenue recognized | 85,537 | |||||||||
IFRS 15 | Milestone Payments for Current Period [Member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Deferred income | 4,809 | |||||||||
Revenue recognized | 25,157 | |||||||||
IFRS 15 | Upfront and Milestone Payments and License Fees, Prior Period [Member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Deferred income | 143,375 | 302,563 | ||||||||
Deferred income reclassified from equity | 83,220 | |||||||||
Revenue recognized | 159,187 | |||||||||
IFRS 15 | Upfront Payments and License Fees, Prior Period [Member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Deferred income | 117,903 | 228,853 | ||||||||
Deferred income reclassified from equity | 9,510 | |||||||||
Revenue recognized | 110,950 | |||||||||
IFRS 15 | Milestone Payments for Prior Period [Member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Deferred income | 25,472 | 73,710 | ||||||||
Deferred income reclassified from equity | 73,710 | |||||||||
Revenue recognized | 48,237 | |||||||||
IFRS 15 | Gilead | Collaboration agreement for filgotinib, Milestone payments, Current Period [member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Deferred income | 4,625 | |||||||||
Revenue recognized | 7,793 | |||||||||
IFRS 15 | Gilead | Collaboration agreement for filgotinib, Upfront payment, Prior Period [member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Deferred income | 102,643 | 187,449 | ||||||||
Revenue recognized | 84,806 | |||||||||
IFRS 15 | Gilead | Collaboration agreement for filgotinib, Subscription agreement, Prior Period [member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Deferred income | 14,528 | 26,532 | ||||||||
Revenue recognized | 12,004 | |||||||||
IFRS 15 | Gilead | Collaboration agreement for filgotinib, Milestone payments, Prior Period [member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Deferred income | 24,001 | 43,832 | ||||||||
Deferred income reclassified from equity | 43,832 | |||||||||
Revenue recognized | 19,831 | |||||||||
IFRS 15 | Servier | Collaboration agreement for osteoarthritis, Milestone payment, Current Period [member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Revenue recognized | 9,000 | |||||||||
IFRS 15 | Servier | Collaboration agreement for osteoarthritis, License fee, Prior Period [member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Deferred income reclassified from equity | (5,362) | |||||||||
IFRS 15 | AbbVie | Collaboration agreement for CF, Upfront payment, Current Period [member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Deferred income | 837 | |||||||||
Revenue recognized | 38,037 | |||||||||
IFRS 15 | AbbVie | Collaboration agreement for CF, Milestone payments, Current Period [member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Deferred income | 184 | |||||||||
Revenue recognized | 8,364 | |||||||||
IFRS 15 | AbbVie | Collaboration agreement for CF, Upfront payments, Prior Period [member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Deferred income | 732 | 14,872 | ||||||||
Deferred income reclassified from equity | 14,872 | |||||||||
Revenue recognized | 14,140 | |||||||||
IFRS 15 | AbbVie | Collaboration agreement for CF, Milestone payments, Prior Period [member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Deferred income | 1,471 | 29,878 | ||||||||
Deferred income reclassified from equity | € 29,878 | |||||||||
Revenue recognized | 28,406 | |||||||||
IFRS 15 | Novartis | Collaboration Agreement for MOR106, Upfront Payment, Current Period [Member] | ||||||||||
IFRS Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Revenue recognized | € 47,500 |
Total revenues and other inco_6
Total revenues and other income - Summary of other income (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Total revenues and other income | |||
Grant income | € 6,549 | € 1,609 | € 1,045 |
R&D incentives | 43,923 | 26,912 | 26,808 |
Other income | 433 | 488 | 977 |
Total other income | € 50,905 | € 29,009 | € 28,830 |
Operating costs - Summary of re
Operating costs - Summary of research and development expenditure (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating costs | |||
Personnel costs | € (124,260) | € (81,352) | € (59,950) |
Subcontracting | (249,926) | (197,644) | (123,054) |
Disposables and lab fees and premise costs | (23,880) | (25,525) | (22,277) |
Depreciation | (10,874) | (5,655) | (3,679) |
Other operating expenses | (18,380) | (12,699) | (9,542) |
Total R&D expenses | € (427,320) | € (322,875) | € (218,502) |
Operating costs - Summary of _2
Operating costs - Summary of research and development expenditure by program (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating costs | |||
Total research and development expenditure | € (427,320) | € (322,875) | € (218,502) |
Filgotinib program | |||
Operating costs | |||
Total research and development expenditure | (100,032) | (66,138) | (53,212) |
IPF program on GLPG1690 | |||
Operating costs | |||
Total research and development expenditure | (75,951) | (72,718) | (16,190) |
OA program on GLPG1972 | |||
Operating costs | |||
Total research and development expenditure | (19,958) | (15,751) | (7,317) |
Toledo Program | |||
Operating costs | |||
Total research and development expenditure | (47,204) | (20,967) | (8,075) |
CF program | |||
Operating costs | |||
Total research and development expenditure | (3,897) | (30,137) | (46,192) |
AtD program on MOR106 | |||
Operating costs | |||
Total research and development expenditure | (24,051) | (14,999) | (8,404) |
Other programs | |||
Operating costs | |||
Total research and development expenditure | € (156,227) | € (102,165) | € (79,113) |
Operating costs - Summary of ge
Operating costs - Summary of general and administrative expenses (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating costs | |||
Personnel costs and directors fees | € (51,906) | € (25,495) | € (17,756) |
Depreciation | (1,513) | (513) | (606) |
Legal and professional fees | (11,775) | (4,284) | (2,427) |
Other operating expenses | (8,506) | (5,339) | (3,626) |
Total general and administrative expenses | € (73,701) | € (35,631) | € (24,415) |
Operating costs - Summary of sa
Operating costs - Summary of sales and marketing expenses (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating costs | |||
Personnel costs | € (7,558) | € (2,282) | € (2,156) |
Depreciation | (61) | ||
External outsourcing costs | (15,722) | (1,284) | (42) |
Other operating expenses | (1,236) | (580) | (604) |
Total sales and marketing expenses | € (24,577) | € (4,146) | € (2,803) |
Staff costs (Details)
Staff costs (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Staff costs | |||
Wages and salaries | € (116,408) | € (61,619) | € (46,677) |
Social security costs | (16,858) | (11,003) | (9,081) |
Pension costs | (4,715) | (2,994) | (2,175) |
Other personnel costs | (39,109) | (27,375) | (16,465) |
Total personnel costs | (177,090) | (102,991) | (74,398) |
Costs for warrants granted | € 32,500 | € 21,300 | € 11,800 |
Fair value re-measurement of _3
Fair value re-measurement of share subscription agreement and warrants granted to Gilead - Financial assets (Details) - EUR (€) € in Thousands | Nov. 06, 2019 | Nov. 06, 2019 | Aug. 23, 2019 | Dec. 31, 2019 | Aug. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jul. 14, 2019 |
Disclosure of fair value measurement of assets [line items] | |||||||||
Upfront payments | € 38,874 | € 6,000 | |||||||
Share subscription increase | € 960,087 | 296,188 | 363,924 | ||||||
Fair value of financial asset at inception related to the share subscription agreement with Gilead | € 5,847,242 | 5,847,242 | 1,316,539 | 1,181,545 | |||||
Fair value of financial liability related to the share subscription agreement with Gilead | (69,540) | (48,727) | |||||||
Change in fair value related to the share subscription agreement and warrants with/granted to Gilead | (181,644) | ||||||||
Fair value of financial liability | (181,006) | (181,006) | € (69,540) | € (48,727) | |||||
Current financial liabilities related to the share subscription agreement | 6,198 | 6,198 | |||||||
Derivative financial instrument | Gilead | Level 3 | |||||||||
Disclosure of fair value measurement of assets [line items] | |||||||||
Fair value of financial asset at inception related to the share subscription agreement with Gilead | 0 | 0 | € 85,601 | ||||||
Change in fair value related to the share subscription agreement and warrants with/granted to Gilead | € (142,350) | ||||||||
Fair value of financial liability | € (56,749) | ||||||||
Derecognition of the financial asset through the share premium account related to the share subscription agreement with Gilead | € 56,749 | ||||||||
Fair value re-measurement of the share subscription agreement | |||||||||
Disclosure of fair value measurement of assets [line items] | |||||||||
Change in fair value related to the share subscription agreement and warrants with/granted to Gilead | (142,350) | ||||||||
Fair value re-measurement of the financial instrument related to the issuance of warrant A | |||||||||
Disclosure of fair value measurement of assets [line items] | |||||||||
Change in fair value related to the share subscription agreement and warrants with/granted to Gilead | (35,642) | ||||||||
Fair value re-measurement of the financial instrument related to the issuance of warrant A | Gilead | Warrant A | |||||||||
Disclosure of fair value measurement of assets [line items] | |||||||||
Fair value of financial liability related to the share subscription agreement with Gilead | € (43,311) | (43,311) | |||||||
Change in fair value related to the share subscription agreement and warrants with/granted to Gilead | (35,642) | ||||||||
Fair value of financial liability | 0 | 0 | |||||||
Derecognition of the financial asset through the share premium account related to the share subscription agreement with Gilead | € 78,953 | ||||||||
Fair value re-measurement of the financial instrument related to the issuance of initial warrant B | |||||||||
Disclosure of fair value measurement of assets [line items] | |||||||||
Change in fair value related to the share subscription agreement and warrants with/granted to Gilead | (3,653) | ||||||||
Fair value re-measurement of the financial instrument related to the issuance of initial warrant B | Gilead | Warrant B | |||||||||
Disclosure of fair value measurement of assets [line items] | |||||||||
Fair value of financial liability related to the share subscription agreement with Gilead | € (2,545) | (2,545) | |||||||
Change in fair value related to the share subscription agreement and warrants with/granted to Gilead | (3,653) | ||||||||
Fair value of financial liability | € (6,198) | € (6,198) |
Other financial income _ expe_3
Other financial income / expenses (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other financial income: | |||
Interest on bank deposit | € 14,306 | € 5,219 | € 3,045 |
Effect of discounting long term R&D incentives receivables | 93 | 199 | |
Currency exchange gain | 850 | 11,027 | 1,797 |
Fair value gain on financial assets held at fair value through profit or loss | 5,355 | 1,203 | |
Fair value gain on current financial investments | 611 | ||
Gain upon sale of financial assets held at fair value through profit or loss | 2 | 668 | |
Other finance income | 264 | 19 | 34 |
Total other financial income | 21,482 | 18,335 | 4,877 |
Other financial expenses: | |||
Interest expenses | (1,302) | (780) | (936) |
Effect of discounting long term deferred income | (6,900) | ||
Currency exchange loss | (47,769) | (1,174) | (29,176) |
Fair value loss on current financial investments | (3,700) | ||
Other finance charges | (400) | (782) | (469) |
Total other financial expense | (60,071) | (2,737) | (30,582) |
Total other net financial expense (-)/ income | € (38,589) | € 15,598 | € (25,705) |
Income Taxes - Summary of incom
Income Taxes - Summary of income tax recognized (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes | |||
Current tax | € (1,372) | € (584) | € (218) |
Deferred tax | 1,158 | 535 | 20 |
Total taxes | € (214) | € (50) | € (198) |
Income Taxes - Schedule of tax
Income Taxes - Schedule of tax liabilities (Details) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019EUR (€)subsidiary | Dec. 31, 2018EUR (€)subsidiary | Dec. 31, 2017EUR (€) | |
Income Taxes | |||
Current tax payable | € 2,037 | € 1,175 | € 865 |
Total tax liabilities | € 2,037 | € 1,175 | € 865 |
Number of subsidiaries operating on a cost plus basis | subsidiary | 4 | 5 |
Income Taxes - Summary of inc_2
Income Taxes - Summary of income tax reconciliation (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes | |||
Income/ loss (-) before tax | € 150,060 | € (29,209) | € (115,507) |
Income tax debit / credit (-), calculated using the Belgian statutory tax rate on the accounting income / loss (-) before tax (theoretical) | 44,388 | (8,640) | (39,261) |
Tax expenses / income (-) in statement of operations (effective) | 214 | 50 | 198 |
Difference in tax expense / income to explain | (44,173) | 8,690 | 39,458 |
Effect of tax rates in other jurisdictions | 831 | 411 | 14 |
Effect of non taxable revenues | (13,079) | (11,558) | (11,277) |
Effect of share based payment expenses without tax impact | 10,318 | 7,530 | 5,317 |
Impact of expenses/income not subject to tax | 53,270 | 382 | 102 |
Effect of non tax deductible expenses | 795 | 945 | 404 |
Effect of recognition of previously non recognized deferred tax assets | (2,286) | (1,977) | (414) |
Effect of change in tax rates | 181 | ||
Effect of tax losses (utilized) reversed | (136) | (150) | (763) |
Effect of under or over provisions in prior periods | 30 | ||
Effect of non recognition of deferred tax assets | 47,413 | 13,108 | 45,895 |
Effect of derecognition of previously recognized deferred tax assets | 106 | ||
Effect of use of IID | (141,435) | ||
Total explanations | € (44,173) | € 8,690 | € 39,458 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | Jan. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Effect of change in effective tax rate due to use of IID | 3.75% | 4.40% | ||
Belgium | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Applicable tax rate | 29.58% | 29.58% | 34.00% |
Income_loss (-) per share (Deta
Income/loss (-) per share (Details) - EUR (€) € / shares in Units, € in Thousands, shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income/loss (-) per share: Basic | |||
Net income/loss (-) attributable to owners of the parent (Euro, in thousands) | € 149,845 | € (29,259) | € (115,704) |
Weighted average number of shares for the purpose of income/loss (-) per share | 57,614 | 52,113 | 49,479 |
Basic income/loss (-) per share | € 2.60 | € (0.56) | € (2.34) |
Income/loss per share: Diluted | |||
Net income/loss (-) attributable to owners of the parent (Euro, in thousands) | € 149,845 | € (29,259) | € (115,704) |
Weighted average number of shares for the purpose of income/loss (-) per share | 57,614 | 52,113 | 49,479 |
Number of dilutive potential ordinary shares | 2,498 | ||
Diluted income/loss (-) per share | € 2.49 | € (0.56) | € (2.34) |
Intangible assets (Details)
Intangible assets (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | € 3,632 | € 2,495 | |
Ending balance | 24,927 | 3,632 | € 2,495 |
Acquisition value | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | 11,832 | 16,082 | 14,269 |
Additions | 23,300 | 3,325 | 2,125 |
Sales and disposals | (64) | (7,650) | (100) |
Translation differences | 31 | 74 | (212) |
Ending balance | 35,099 | 11,832 | 16,082 |
Accumulated impairment | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | 8,200 | 13,587 | 13,246 |
Amortization | 2,006 | 1,107 | 652 |
Impairment | 1,083 | ||
Sales and disposals | (63) | (7,650) | (99) |
Translation differences | 31 | 74 | (212) |
Ending balance | 10,173 | 8,200 | 13,587 |
In process technology | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | 1,500 | ||
Ending balance | 1,500 | ||
In process technology | Acquisition value | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | 7,061 | 5,561 | |
Additions | 1,500 | ||
Sales and disposals | (7,061) | ||
Ending balance | 7,061 | ||
In process technology | Accumulated impairment | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | 5,561 | 5,561 | |
Amortization | 417 | ||
Impairment | 1,083 | ||
Sales and disposals | (7,061) | ||
Ending balance | 5,561 | ||
Software and databases | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | 1,862 | 982 | |
Ending balance | 6,507 | 1,862 | 982 |
Software and databases | Acquisition value | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | 9,111 | 7,496 | 7,185 |
Additions | 5,463 | 1,561 | 623 |
Sales and disposals | (64) | (20) | (100) |
Translation differences | 31 | 74 | (212) |
Ending balance | 14,541 | 9,111 | 7,496 |
Software and databases | Accumulated impairment | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | 7,250 | 6,514 | 6,182 |
Amortization | 816 | 681 | 644 |
Sales and disposals | (63) | (20) | (99) |
Translation differences | 31 | 74 | (212) |
Ending balance | 8,034 | 7,250 | 6,514 |
Brands, licenses, patents and know-how | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | 1,771 | 16 | |
Ending balance | 3,546 | 1,771 | 16 |
Brands, licenses, patents and know-how | Acquisition value | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | 2,719 | 1,525 | 1,523 |
Additions | 2,453 | 1,763 | 2 |
Sales and disposals | (569) | ||
Ending balance | 5,172 | 2,719 | 1,525 |
Brands, licenses, patents and know-how | Accumulated impairment | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | 949 | 1,509 | 1,501 |
Amortization | 678 | 9 | 8 |
Sales and disposals | (569) | ||
Ending balance | 1,626 | € 949 | € 1,509 |
Contract costs | |||
Disclosure of detailed information about intangible assets [line items] | |||
Ending balance | 14,872 | ||
Contract costs | Acquisition value | |||
Disclosure of detailed information about intangible assets [line items] | |||
Additions | 15,384 | ||
Ending balance | 15,384 | ||
Contract costs | Accumulated impairment | |||
Disclosure of detailed information about intangible assets [line items] | |||
Amortization | 512 | ||
Ending balance | € 512 |
Property, plant and equipment -
Property, plant and equipment - Fully Owned (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | € 23,137 | € 16,692 | |
Ending balance | 40,707 | 23,137 | € 16,692 |
Acquisition value | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 51,321 | 42,195 | 37,624 |
Additions | 22,380 | 10,392 | 5,312 |
Sales and disposals | (1,618) | (1,311) | (861) |
Translation differences | (8) | 46 | 120 |
Reclassifications to right of use | (251) | ||
Ending balance | 71,823 | 51,321 | 42,195 |
Amortization, depreciations and impairment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 28,184 | 25,502 | 22,663 |
Sales and disposals | (1,620) | (1,310) | (855) |
Translation differences | (15) | 18 | 61 |
Depreciation | 4,818 | 3,974 | 3,633 |
Reclassifications to right of use | (251) | ||
Ending balance | 31,117 | 28,184 | 25,502 |
Land and building improvements | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 2,325 | 2,394 | |
Ending balance | 2,204 | 2,325 | 2,394 |
Land and building improvements | Acquisition value | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 5,011 | 4,736 | 4,412 |
Additions | 273 | 275 | 324 |
Ending balance | 5,284 | 5,011 | 4,736 |
Land and building improvements | Amortization, depreciations and impairment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 2,686 | 2,342 | 2,025 |
Translation differences | 1 | ||
Depreciation | 394 | 344 | 316 |
Ending balance | 3,080 | 2,686 | 2,342 |
Installation and machinery | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 14,628 | 12,565 | |
Ending balance | 18,770 | 14,628 | 12,565 |
Installation and machinery | Acquisition value | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 38,031 | 33,060 | 29,733 |
Additions | 6,382 | 4,674 | 3,178 |
Sales and disposals | (1,521) | (486) | (844) |
Reclassifications | 1,792 | 753 | 881 |
Translation differences | (30) | 29 | 112 |
Ending balance | 44,655 | 38,031 | 33,060 |
Installation and machinery | Amortization, depreciations and impairment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 23,403 | 20,495 | 18,252 |
Sales and disposals | (1,521) | (485) | (838) |
Translation differences | (15) | 16 | 53 |
Depreciation | 4,018 | 3,377 | 3,027 |
Ending balance | 25,885 | 23,403 | 20,495 |
Furniture, fixtures & vehicles | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 1,632 | 802 | |
Ending balance | 1,909 | 1,632 | 802 |
Furniture, fixtures & vehicles | Acquisition value | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 3,452 | 3,209 | 2,973 |
Additions | 649 | 1,039 | 246 |
Sales and disposals | (97) | (826) | (17) |
Reclassifications | 3 | 13 | |
Translation differences | 22 | 16 | 7 |
Ending balance | 4,028 | 3,452 | 3,209 |
Furniture, fixtures & vehicles | Amortization, depreciations and impairment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 1,819 | 2,407 | 2,184 |
Sales and disposals | (99) | (826) | (17) |
Translation differences | 2 | 7 | |
Depreciation | 399 | 236 | 234 |
Ending balance | 2,119 | 1,819 | 2,407 |
Other tangible assets | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 4,552 | 930 | |
Ending balance | 17,825 | 4,552 | 930 |
Other tangible assets | Acquisition value | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 4,827 | 1,189 | 505 |
Additions | 15,076 | 4,404 | 1,564 |
Reclassifications | (1,795) | (766) | (881) |
Translation differences | 1 | ||
Reclassifications to right of use | (251) | ||
Ending balance | 17,856 | 4,827 | 1,189 |
Other tangible assets | Amortization, depreciations and impairment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 275 | 258 | 203 |
Depreciation | 7 | 17 | 55 |
Reclassifications to right of use | (251) | ||
Ending balance | € 31 | € 275 | € 258 |
Property, plant and equipment_2
Property, plant and equipment - Right of Use (Details) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | € 23,137 | € 16,692 | ||
Ending balance | € 40,707 | 40,707 | 23,137 | € 16,692 |
RIGHT OF USE | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Ending balance | 25,345 | 25,345 | ||
Acquisition value | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 51,321 | 42,195 | 37,624 | |
Additions | 22,380 | 10,392 | 5,312 | |
Sales and disposals | (1,618) | (1,311) | (861) | |
Reclassifications to right of use | 251 | |||
Translation differences | (8) | 46 | 120 | |
Ending balance | 71,823 | 71,823 | 51,321 | 42,195 |
Acquisition value | RIGHT OF USE | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Additions | 4,530 | |||
Reclassifications to right of use | 251 | |||
Translation differences | 38 | |||
Ending balance | 31,225 | 31,225 | ||
Acquisition value | Restated equity (modified retrospective application IFRS) | RIGHT OF USE | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 26,406 | |||
Acquisition value | IFRS 16 | RIGHT OF USE | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 26,406 | |||
Amortization, depreciations and impairment | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 28,184 | 25,502 | 22,663 | |
Sales and disposals | (1,620) | (1,310) | (855) | |
Reclassifications to right of use | 251 | |||
Translation differences | (15) | 18 | 61 | |
Depreciation | 4,818 | 3,974 | 3,633 | |
Ending balance | 31,117 | 31,117 | 28,184 | 25,502 |
Amortization, depreciations and impairment | RIGHT OF USE | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Reclassifications to right of use | 251 | |||
Translation differences | 4 | |||
Depreciation | 5,624 | |||
Ending balance | (5,879) | (5,879) | ||
Land and building | RIGHT OF USE | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Ending balance | 22,694 | 22,694 | ||
Land and building | Acquisition value | RIGHT OF USE | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Additions | 3,270 | |||
Translation differences | 38 | |||
Ending balance | 27,364 | 27,364 | ||
Land and building | Acquisition value | Restated equity (modified retrospective application IFRS) | RIGHT OF USE | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 24,056 | |||
Land and building | Acquisition value | IFRS 16 | RIGHT OF USE | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 24,056 | |||
Land and building | Amortization, depreciations and impairment | RIGHT OF USE | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Translation differences | 4 | |||
Depreciation | 4,666 | |||
Ending balance | (4,670) | (4,670) | ||
Installation and machinery | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 14,628 | 12,565 | ||
Ending balance | 18,770 | 18,770 | 14,628 | 12,565 |
Installation and machinery | RIGHT OF USE | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Ending balance | 212 | 212 | ||
Installation and machinery | Acquisition value | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 38,031 | 33,060 | 29,733 | |
Additions | 6,382 | 4,674 | 3,178 | |
Sales and disposals | (1,521) | (486) | (844) | |
Reclassifications | 1,792 | 753 | 881 | |
Translation differences | (30) | 29 | 112 | |
Ending balance | 44,655 | 44,655 | 38,031 | 33,060 |
Installation and machinery | Acquisition value | RIGHT OF USE | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Additions | 84 | |||
Reclassifications to right of use | 251 | |||
Ending balance | 554 | 554 | ||
Installation and machinery | Acquisition value | Restated equity (modified retrospective application IFRS) | RIGHT OF USE | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 219 | |||
Installation and machinery | Acquisition value | IFRS 16 | RIGHT OF USE | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 219 | |||
Installation and machinery | Amortization, depreciations and impairment | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 23,403 | 20,495 | 18,252 | |
Sales and disposals | (1,521) | (485) | (838) | |
Translation differences | (15) | 16 | 53 | |
Depreciation | 4,018 | 3,377 | 3,027 | |
Ending balance | 25,885 | 25,885 | 23,403 | 20,495 |
Installation and machinery | Amortization, depreciations and impairment | RIGHT OF USE | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Reclassifications to right of use | 251 | |||
Depreciation | 91 | |||
Ending balance | (342) | (342) | ||
Furniture, fixtures & vehicles | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 1,632 | 802 | ||
Ending balance | 1,909 | 1,909 | 1,632 | 802 |
Furniture, fixtures & vehicles | RIGHT OF USE | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Ending balance | 2,440 | 2,440 | ||
Furniture, fixtures & vehicles | Acquisition value | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 3,452 | 3,209 | 2,973 | |
Additions | 649 | 1,039 | 246 | |
Sales and disposals | (97) | (826) | (17) | |
Reclassifications | 3 | 13 | ||
Translation differences | 22 | 16 | 7 | |
Ending balance | 4,028 | 4,028 | 3,452 | 3,209 |
Furniture, fixtures & vehicles | Acquisition value | RIGHT OF USE | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Additions | 1,176 | |||
Ending balance | 3,307 | 3,307 | ||
Furniture, fixtures & vehicles | Acquisition value | Restated equity (modified retrospective application IFRS) | RIGHT OF USE | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 2,130 | |||
Furniture, fixtures & vehicles | Acquisition value | IFRS 16 | RIGHT OF USE | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 2,130 | |||
Furniture, fixtures & vehicles | Amortization, depreciations and impairment | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 1,819 | 2,407 | 2,184 | |
Sales and disposals | (99) | (826) | (17) | |
Translation differences | 2 | 7 | ||
Depreciation | 399 | 236 | 234 | |
Ending balance | 2,119 | 2,119 | € 1,819 | € 2,407 |
Furniture, fixtures & vehicles | Amortization, depreciations and impairment | RIGHT OF USE | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Depreciation | 867 | |||
Ending balance | € (867) | € (867) |
Property, plant and equipment_3
Property, plant and equipment - Carrying Amount (Details) - EUR (€) € in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Property, plant and equipment | ||||
Property, plant and equipment fully owned | € 40,707 | |||
Right-of-use assets | 25,345 | € 26,400 | ||
Total property, plant and equipment | € 66,052 | € 23,137 | € 16,692 |
Other non-current assets - Summ
Other non-current assets - Summary (Details) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Other non-current assets | |||
Non-current restricted cash | € 1,418 | € 1,276 | € 1,158 |
Financial assets held at fair value through profit or loss | 11,275 | 6,000 | 1,754 |
Other non-current assets | 1,399 | 643 | 549 |
Total other non-current assets | 14,091 | 7,919 | € 3,461 |
Belgium | |||
Other non-current assets | |||
Non-current restricted cash | 900 | 700 | |
The Netherlands | |||
Other non-current assets | |||
Non-current restricted cash | € 500 | € 600 |
Other non-current assets - Fina
Other non-current assets - Financial assets held at fair value through profit or loss (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of fair value remeasurement | |||
Net book value at December 31, | € 11,275 | € 6,000 | € 1,754 |
Financial assets. | |||
Reconciliation of fair value remeasurement | |||
Costs at January 1 | 4,818 | 2,373 | 2,750 |
Acquisitions of the year | 4,736 | ||
Disposals of the year | (82) | (2,291) | (377) |
Costs at December 31, | 4,736 | 4,818 | 2,373 |
Net book value at December 31, | 11,275 | 6,000 | 1,754 |
Financial assets. | Level 1 | |||
Reconciliation of fair value remeasurement | |||
Fair value adjustment at January 1 | 1,182 | (619) | (399) |
Cancellation of fair value adjustment following disposal | 2 | 598 | 55 |
Fair value adjustment of the year | 5,355 | 1,203 | (275) |
Fair value adjustment at December 31, | € 6,539 | € 1,182 | € (619) |
Research and Development ince_3
Research and Development incentives receivables - Current and non-current (Details) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of financial assets [line items] | |||
Non-current R&D incentives receivables-discounted value | € 93,407 | € 73,443 | € 64,001 |
Current R&D incentives receivables | 21,949 | 11,203 | 11,782 |
Total R&D incentives receivables | 115,356 | € 84,646 | € 75,783 |
France | |||
Disclosure of financial assets [line items] | |||
Non-current R&D incentives receivables-discounted value | 31,804 | ||
Belgium | |||
Disclosure of financial assets [line items] | |||
Non-current R&D incentives receivables-discounted value | € 61,603 |
Research and Development ince_4
Research and Development incentives receivables - Maturities (Details) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of financial assets [line items] | |||
Non-current R&D incentives receivables-discounted value | € 93,407 | € 73,443 | € 64,001 |
France | |||
Disclosure of financial assets [line items] | |||
Non-current R&D incentives receivables-discounted value | 31,804 | ||
Belgium | |||
Disclosure of financial assets [line items] | |||
Non-current R&D incentives receivables-discounted value | 61,603 | ||
Later than one year and not later than two years [member] | |||
Disclosure of financial assets [line items] | |||
Non-current R&D incentives receivables-discounted value | 14,549 | ||
Later than one year and not later than two years [member] | France | |||
Disclosure of financial assets [line items] | |||
Non-current R&D incentives receivables-discounted value | 9,668 | ||
Later than one year and not later than two years [member] | Belgium | |||
Disclosure of financial assets [line items] | |||
Non-current R&D incentives receivables-discounted value | 4,881 | ||
Later than two years and not later than three years [member] | |||
Disclosure of financial assets [line items] | |||
Non-current R&D incentives receivables-discounted value | 15,957 | ||
Later than two years and not later than three years [member] | France | |||
Disclosure of financial assets [line items] | |||
Non-current R&D incentives receivables-discounted value | 10,223 | ||
Later than two years and not later than three years [member] | Belgium | |||
Disclosure of financial assets [line items] | |||
Non-current R&D incentives receivables-discounted value | 5,734 | ||
Later than three years and not later than four years [member] | |||
Disclosure of financial assets [line items] | |||
Non-current R&D incentives receivables-discounted value | 19,447 | ||
Later than three years and not later than four years [member] | France | |||
Disclosure of financial assets [line items] | |||
Non-current R&D incentives receivables-discounted value | 11,913 | ||
Later than three years and not later than four years [member] | Belgium | |||
Disclosure of financial assets [line items] | |||
Non-current R&D incentives receivables-discounted value | 7,534 | ||
Later than four years and not later than five years [member] | |||
Disclosure of financial assets [line items] | |||
Non-current R&D incentives receivables-discounted value | 10,190 | ||
Later than four years and not later than five years [member] | Belgium | |||
Disclosure of financial assets [line items] | |||
Non-current R&D incentives receivables-discounted value | 10,190 | ||
Later than five years and not later than ten years [member] | |||
Disclosure of financial assets [line items] | |||
Non-current R&D incentives receivables-discounted value | 33,263 | ||
Later than five years and not later than ten years [member] | Belgium | |||
Disclosure of financial assets [line items] | |||
Non-current R&D incentives receivables-discounted value | € 33,263 |
Trade and other receivables a_3
Trade and other receivables and other current assets (Details) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Trade and other receivables and other current assets | |||
Trade receivables | € 39,603 | € 9,206 | € 22,133 |
Prepayments | 292 | 142 | 543 |
Other receivables | 14,114 | 9,261 | 5,289 |
Trade and other receivables | 54,009 | 18,609 | 27,966 |
Inventories | 255 | 276 | 279 |
Accrued income | 4,443 | 3,863 | 2,584 |
Deferred charges | 4,439 | 4,104 | 3,825 |
Other current assets | 9,138 | 8,244 | 6,688 |
Total trade and other receivables & other current assets | € 63,147 | € 26,852 | € 34,653 |
Current financial investments (
Current financial investments (Details) - 12 months ended Dec. 31, 2019 € in Thousands, $ in Millions | USD ($) | EUR (€) |
Current financial investments | ||
Current financial investments | € | € 3,919,216 | |
Short term bond fund minimum investment period | 6 months | |
Current financial investments held in USD | $ | $ 850.5 |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) € in Thousands, $ in Millions | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) |
Cash and cash equivalents. | |||||
Cash at banks | € 907,939 | € 358,016 | € 288,052 | ||
Term deposits | 953,677 | 733,537 | 713,446 | ||
Money market funds | 199,243 | 149,711 | |||
Cash on hand | 3 | ||||
Total cash and cash equivalents | $ 656.9 | € 1,861,616 | € 1,290,796 | € 1,151,211 | € 973,241 |
Cash and cash equivalents - Nar
Cash and cash equivalents - Narrative (Details) € in Thousands, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | |
Cash and cash equivalents. | |||||
Term deposits | € 953,677 | € 733,537 | € 713,446 | ||
Cash and cash equivalents held in USD | $ 656.9 | € 1,861,616 | € 1,290,796 | € 1,151,211 | € 973,241 |
Maturity Period | 3 months |
Share capital - Reconciliation
Share capital - Reconciliation (Details) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Balance at beginning of period | € 1,214,249 | € 1,011,983 | € 758,701 | |
Costs of capital increase | (4,447) | (15,964) | (15,837) | |
Aggregate share capital | 349,789 | 294,600 | 275,510 | € 250,187 |
Balance at end of period | 2,875,658 | 1,214,249 | 1,011,983 | 758,701 |
Share capital. | ||||
Balance at beginning of period | 236,540 | 233,414 | 223,928 | |
Share capital increase | 55,189 | 19,090 | 25,323 | |
Costs of capital increase | (4,447) | (15,964) | (15,837) | |
Aggregate share capital | 349,789 | 294,600 | 275,510 | |
Costs of capital increase (accumulated) | (62,507) | (58,060) | (42,096) | |
Balance at end of period | € 287,282 | € 236,540 | € 233,414 | € 223,928 |
Share capital - History (Detail
Share capital - History (Details) - EUR (€) € in Thousands, shares in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
History of the share capital | ||||
Aggregate number of shares after transaction | 64,667 | 54,466 | 50,937 | 46,256 |
Aggregate share capital after transaction | € 349,789 | € 294,600 | € 275,510 | € 250,187 |
April 6, 2017 | ||||
History of the share capital | ||||
Share capital increase warrants | € 1,337 | |||
Number of shares issued | 247 | |||
April 21, 2017 | ||||
History of the share capital | ||||
Share capital increase new shares | € 23,331 | |||
Number of shares issued | 4,313 | |||
June 20, 2017 | ||||
History of the share capital | ||||
Share capital increase warrants | € 281 | |||
Number of shares issued | 52 | |||
September 21, 2017 | ||||
History of the share capital | ||||
Share capital increase warrants | € 152 | |||
Number of shares issued | 28 | |||
November 23, 2017 | ||||
History of the share capital | ||||
Share capital increase warrants | € 222 | |||
Number of shares issued | 41 | |||
March 20, 2018 | ||||
History of the share capital | ||||
Share capital increase warrants | € 1,613 | |||
Number of shares issued | 298 | |||
June 20, 2018 | ||||
History of the share capital | ||||
Share capital increase warrants | € 556 | |||
Number of shares issued | 103 | |||
September 17, 2018 | ||||
History of the share capital | ||||
Share capital increase new shares | € 16,021 | |||
Number of shares issued | 2,961 | |||
October 3, 2018 | ||||
History of the share capital | ||||
Share capital increase warrants | € 733 | |||
Number of shares issued | 135 | |||
November 23, 2018 | ||||
History of the share capital | ||||
Share capital increase warrants | € 167 | |||
Number of shares issued | 31 | |||
March 20, 2019 | ||||
History of the share capital | ||||
Share capital increase warrants | € 808 | |||
Number of shares issued | 149 | |||
June 20, 2019 | ||||
History of the share capital | ||||
Share capital increase warrants | € 1,127 | |||
Number of shares issued | 208 | |||
August 23, 2019 | ||||
History of the share capital | ||||
Share capital increase new shares | € 36,945 | |||
Number of shares issued | 6,829 | |||
September 18, 2019 | ||||
History of the share capital | ||||
Share capital increase warrants | € 1,632 | |||
Number of shares issued | 302 | |||
November 6 2019 | ||||
History of the share capital | ||||
Share capital increase warrants | € 14,162 | |||
Number of shares issued | 2,618 | |||
November 25, 2019 | ||||
History of the share capital | ||||
Share capital increase warrants | € 515 | |||
Number of shares issued | 95 |
Share capital - History - Narra
Share capital - History - Narrative (Details) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share capital | ||||
Aggregate share capital | € 349,789 | € 294,600 | € 275,510 | € 250,187 |
Aggregate number of shares after transaction | 64,667,000 | 54,466,000 | 50,937,000 | 46,256,000 |
Number of shares | 64,666,802 | 54,465,421 | 50,936,778 | 46,256,078 |
Share capital - Capital increas
Share capital - Capital increase (Details) - EUR (€) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of classes of share capital [line items] | |||
Balance at beginning of period, shares | 54,465,421 | 50,936,778 | 46,256,078 |
Balance at beginning of period | € 1,214,249,000 | € 1,011,983,000 | € 758,701,000 |
Share capital | 287,282,000 | 236,540,000 | 233,414,000 |
Net issue of equity | 960,087,000 | 296,188,000 | 363,924,000 |
Share premium | 2,703,583,000 | 1,277,780,000 | 993,025,000 |
Exercise of warrants | € 17,167,000 | € 7,657,000 | € 5,288,000 |
Average exercise price warrants | € 22.8 | € 13.5 | € 14.4 |
Balance at end of period, shares | 64,666,802 | 54,465,421 | 50,936,778 |
Balance at end of period | € 2,875,658,000 | € 1,214,249,000 | € 1,011,983,000 |
Par value of shares | € 5.41 | ||
April 6, 2017 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants, shares | 247,070 | ||
Average exercise price warrants | € 16.33 | ||
Closing share price on date of capital increase | € 84.60 | ||
June 20, 2017 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants, shares | 52,030 | ||
Average exercise price warrants | € 12.14 | ||
Closing share price on date of capital increase | € 70.66 | ||
September 21, 2017 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants, shares | 28,100 | ||
Average exercise price warrants | € 9.55 | ||
Closing share price on date of capital increase | € 84.62 | ||
November 23, 2017 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants, shares | 41,000 | ||
Average exercise price warrants | € 8.63 | ||
Closing share price on date of capital increase | € 77.53 | ||
March 20, 2018 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants, shares | 298,184 | ||
Average exercise price warrants | € 13.16 | ||
Closing share price on date of capital increase | € 83.72 | ||
June 20, 2018 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants, shares | 102,801 | ||
Average exercise price warrants | € 13.01 | ||
Closing share price on date of capital increase | € 85 | ||
October 03, 2018 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants, shares | 135,485 | ||
Average exercise price warrants | € 14.86 | ||
Closing share price on date of capital increase | € 94.32 | ||
November 23, 2018 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants, shares | 30,800 | ||
Average exercise price warrants | € 12.40 | ||
Closing share price on date of capital increase | € 88.90 | ||
March 20, 2019 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants, shares | 149,370 | ||
Average exercise price warrants | € 23.30 | ||
Closing share price on date of capital increase | € 90.32 | ||
June 20, 2019 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants, shares | 208,310 | ||
Average exercise price warrants | € 20.76 | ||
Closing share price on date of capital increase | € 113.55 | ||
August 23, 2019 : share subscription by Gilead | |||
Disclosure of classes of share capital [line items] | |||
Issue of shares | 6,828,985 | ||
September 19, 2019 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants, shares | 301,745 | ||
Average exercise price warrants | € 22.12 | ||
Closing share price on date of capital increase | € 145.25 | ||
November 6, 2019 : exercise of warrant A by Gilead | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants, shares | 2,617,791 | ||
Average exercise price warrants | € 140.59 | ||
Closing share price on date of capital increase | € 170.75 | ||
November 25, 2019 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants, shares | 95,180 | ||
Average exercise price warrants | € 28.23 | ||
Closing share price on date of capital increase | € 172.95 | ||
Share capital. | |||
Disclosure of classes of share capital [line items] | |||
Balance at beginning of period | € 236,540,000 | € 233,414,000 | € 223,928,000 |
Net issue of equity | 36,945,000 | 16,021,000 | 23,331,000 |
Exercise of warrants | 4,082,000 | 3,069,000 | 1,992,000 |
Balance at end of period | 287,282,000 | 236,540,000 | 233,414,000 |
Share capital. | April 6, 2017 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants | 1,337,000 | ||
Share capital. | April 21, 2017 : U.S. public offering | |||
Disclosure of classes of share capital [line items] | |||
Underwriter discounts and offering expenses (paid) | (15,790,000) | ||
Offering expenses still to be paid | (47,000) | ||
Share capital. | June 20, 2017 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants | 281,000 | ||
Share capital. | September 21, 2017 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants | 152,000 | ||
Share capital. | November 23, 2017 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants | 222,000 | ||
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 capital. | October 03, 2018 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants | 733,000 | ||
Share capital. | November 23, 2018 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants | 167,000 | ||
Share capital. | March 20, 2019 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants | 808,000 | ||
Share capital. | June 20, 2019 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants | 1,127,000 | ||
Share capital. | August 23, 2019 : share subscription by Gilead | |||
Disclosure of classes of share capital [line items] | |||
Net issue of equity | 32,498,000 | ||
Underwriter discounts and offering expenses (paid) | (4,447,000) | ||
Share capital. | September 19, 2019 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants | 1,632,000 | ||
Share capital. | November 6, 2019 : exercise of warrant A by Gilead | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants | 14,162,000 | ||
Share capital. | November 25, 2019 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants | 515,000 | ||
Share premium account | |||
Disclosure of classes of share capital [line items] | |||
Balance at beginning of period | 1,277,780,000 | 993,025,000 | 649,135,000 |
Net issue of equity | 923,142,000 | 280,167,000 | 340,593,000 |
Exercise of warrants | 13,085,000 | 4,588,000 | 3,296,000 |
Balance at end of period | 2,703,583,000 | 1,277,780,000 | 993,025,000 |
Share premium account | April 6, 2017 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants | 2,697,000 | ||
Share premium account | June 20, 2017 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants | 350,000 | ||
Share premium account | September 21, 2017 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants | 117,000 | ||
Share premium account | November 23, 2017 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants | 132,000 | ||
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 premium account | October 03, 2018 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants | 1,281,000 | ||
Share premium account | November 23, 2018 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants | 215,000 | ||
Share premium account | March 20, 2019 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants | 2,673,000 | ||
Share premium account | June 20, 2019 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants | 3,198,000 | ||
Share premium account | August 23, 2019 : share subscription by Gilead | |||
Disclosure of classes of share capital [line items] | |||
Net issue of equity | 979,891,000 | ||
Derecognition of Financial Liability | 56,749,000 | ||
Share premium account | September 19, 2019 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants | 5,043,000 | ||
Share premium account | November 6, 2019 : exercise of warrant A by Gilead | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants | 432,826,000 | ||
Derecognition of Financial Liability | 78,953,000 | ||
Share premium account | November 25, 2019 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants | 2,172,000 | ||
Share capital and share premium | |||
Disclosure of classes of share capital [line items] | |||
Balance at beginning of period | 1,514,320,000 | 1,226,439,000 | 873,063,000 |
Balance at end of period | 2,911,912,000 | 1,514,320,000 | 1,226,439,000 |
Share capital and share premium | April 6, 2017 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants | 4,034,000 | ||
Share capital and share premium | April 21, 2017 : U.S. public offering | |||
Disclosure of classes of share capital [line items] | |||
Underwriter discounts and offering expenses (paid) | (15,790,000) | ||
Offering expenses still to be paid | (47,000) | ||
Share capital and share premium | June 20, 2017 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants | 632,000 | ||
Share capital and share premium | September 21, 2017 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants | 269,000 | ||
Share capital and share premium | November 23, 2017 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants | € 354,000 | ||
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 | ||
Share capital and share premium | October 03, 2018 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants | 2,014,000 | ||
Share capital and share premium | November 23, 2018 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants | € 382,000 | ||
Share capital and share premium | March 20, 2019 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants | 3,481,000 | ||
Share capital and share premium | June 20, 2019 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants | 4,325,000 | ||
Share capital and share premium | August 23, 2019 : share subscription by Gilead | |||
Disclosure of classes of share capital [line items] | |||
Net issue of equity | 1,012,389,000 | ||
Underwriter discounts and offering expenses (paid) | (4,447,000) | ||
Derecognition of Financial Liability | 56,749,000 | ||
Share capital and share premium | September 19, 2019 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants | 6,675,000 | ||
Share capital and share premium | November 6, 2019 : exercise of warrant A by Gilead | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants | 368,035,000 | ||
Share capital and share premium | November 25, 2019 : exercise of warrants | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants | € 2,687,000 | ||
Ordinary Shares | |||
Disclosure of classes of share capital [line items] | |||
Par value of shares | € 5.41 | ||
Ordinary Shares | August 23, 2019 : share subscription by Gilead | |||
Disclosure of classes of share capital [line items] | |||
Issue of shares | 6,828,985 | ||
Closing share price on date of capital increase | € 148.90 | ||
Ordinary Shares | Share capital. | August 23, 2019 : share subscription by Gilead | |||
Disclosure of classes of share capital [line items] | |||
Net issue of equity | € 36,945,000 | ||
Ordinary Shares | Share premium account | August 23, 2019 : share subscription by Gilead | |||
Disclosure of classes of share capital [line items] | |||
Net issue of equity | 923,142,000 | ||
Ordinary Shares | Share capital and share premium | August 23, 2019 : share subscription by Gilead | |||
Disclosure of classes of share capital [line items] | |||
Net issue of equity | € 960,087,000 | ||
American Depositary Receipts | |||
Disclosure of classes of share capital [line items] | |||
Issue of shares | 2,961,373 | ||
American Depositary Receipts | April 21, 2017 : U.S. public offering | |||
Disclosure of classes of share capital [line items] | |||
Issue of shares | 4,312,500 | ||
Closing share price on date of capital increase | € 81.34 | ||
American Depositary Receipts | Share capital. | |||
Disclosure of classes of share capital [line items] | |||
Net issue of equity | € 16,021,000 | ||
American Depositary Receipts | Share capital. | April 21, 2017 : U.S. public offering | |||
Disclosure of classes of share capital [line items] | |||
Net issue of equity | € 23,331,000 | ||
American Depositary Receipts | Share premium account | |||
Disclosure of classes of share capital [line items] | |||
Net issue of equity | 280,167,000 | ||
American Depositary Receipts | Share premium account | April 21, 2017 : U.S. public offering | |||
Disclosure of classes of share capital [line items] | |||
Net issue of equity | 340,593,000 | ||
American Depositary Receipts | Share capital and share premium | |||
Disclosure of classes of share capital [line items] | |||
Net issue of equity | € 296,188,000 | ||
American Depositary Receipts | Share capital and share premium | April 21, 2017 : U.S. public offering | |||
Disclosure of classes of share capital [line items] | |||
Net issue of equity | € 363,924,000 | ||
U.S. public offering | |||
Disclosure of classes of share capital [line items] | |||
Issue of shares | 2,961,373 | ||
Closing share price on date of capital increase | € 99.68 | ||
U.S. public offering | April 21, 2017 : U.S. public offering | |||
Disclosure of classes of share capital [line items] | |||
Issue of shares | 4,312,500 | ||
U.S. public offering | Share capital. | |||
Disclosure of classes of share capital [line items] | |||
Net issue of equity | € 57,000 | ||
Underwriter discounts and offering expenses (paid) | (15,964,000) | ||
U.S. public offering | Share capital. | April 21, 2017 : U.S. public offering | |||
Disclosure of classes of share capital [line items] | |||
Net issue of equity | € 7,494,000 | ||
U.S. public offering | Share premium account | |||
Disclosure of classes of share capital [line items] | |||
Net issue of equity | 280,167,000 | ||
U.S. public offering | Share premium account | April 21, 2017 : U.S. public offering | |||
Disclosure of classes of share capital [line items] | |||
Net issue of equity | 340,593,000 | ||
U.S. public offering | Share capital and share premium | |||
Disclosure of classes of share capital [line items] | |||
Net issue of equity | 280,224,000 | ||
Underwriter discounts and offering expenses (paid) | € (15,964,000) | ||
U.S. public offering | Share capital and share premium | April 21, 2017 : U.S. public offering | |||
Disclosure of classes of share capital [line items] | |||
Net issue of equity | € 348,087,000 | ||
Warrants | November 6, 2019 : exercise of warrant A by Gilead | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants, shares | 2,617,791 | ||
Warrants | Share capital. | November 6, 2019 : exercise of warrant A by Gilead | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants | € 14,162,000 | ||
Warrants | Share premium account | November 6, 2019 : exercise of warrant A by Gilead | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants | 353,873,000 | ||
Warrants | Share capital and share premium | November 6, 2019 : exercise of warrant A by Gilead | |||
Disclosure of classes of share capital [line items] | |||
Exercise of warrants | € 368,035,000 |
Share capital - Other informati
Share capital - Other information (Details) - EUR (€) | Oct. 22, 2019 | Apr. 25, 2017 | Dec. 31, 2019 |
Disclosure of classes of share capital [line items] | |||
Authorization period | 5 years | ||
Ordinary Shares | |||
Disclosure of classes of share capital [line items] | |||
Authorized capital, remained available under the general part | € 67,022,402,040 | ||
Authorized capital, remained available under the specific part | € 13,717,929,800 | ||
General authorization of share capital | |||
Disclosure of classes of share capital [line items] | |||
Authorization period | 5 years | ||
Authorized capital, approved | € 67,022,402,040 | ||
Percentage of share capital | 20.00% | ||
Specific authorization of share capital | |||
Disclosure of classes of share capital [line items] | |||
Authorization period | 5 years | ||
Authorized capital, approved | € 82,561,764,930 | ||
Specific authorization of share capital | Minimum | |||
Disclosure of classes of share capital [line items] | |||
Percentage of share capital | 20.00% | ||
Specific authorization of share capital | Maximum | |||
Disclosure of classes of share capital [line items] | |||
Percentage of share capital | 33.00% |
Deferred tax - Summary of defer
Deferred tax - Summary of deferred tax assets and liabilities (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred tax | |||
Deferred tax assets | € 4,205 | € 2,514 | € 1,978 |
Deferred tax assets unrecognized | 289,833 | 223,377 | 164,079 |
Deferred taxes in the consolidated statement of operations | 1,158 | 535 | 20 |
Tax benefit arising from previously unrecognized tax assets used to reduce deferred tax expense (+) | 1,537 | 1,973 | 414 |
Deferred tax expenses relating to change in tax rates | (181) | ||
Deferred tax expenses relating to use of previously recognized deferred tax assets | € (379) | € (1,438) | € (213) |
Deferred tax - Narrative (Detai
Deferred tax - Narrative (Details) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019EUR (€)subsidiary | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Total amount of tax attributes and deductible temporary differences | € 1,179,000 | ||
Tax losses carried forward and deductible temporary differences | 953,300 | € 688,700 | € 567,000 |
Amount of statutory tax losses carried forward for offset against future profits | 374,100 | ||
Carried forward innovation income to be offset against future income | 224,700 | 195,400 | 106,400 |
Deferred tax assets | € 4,205 | 2,514 | 1,978 |
Number of subsidiaries operating on cost-plus basis | subsidiary | 2 | ||
Expiry between 2020 and 2028 | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Amount of statutory tax losses carried forward for offset against future profits | € 7,200 | ||
Belgium. | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Amount of statutory tax losses carried forward for offset against future profits | 307,700 | ||
Investment Deduction | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Investment deduction | 1,000 | 1,000 | 1,000 |
Innovation Income Deduction And Investment Deduction | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Investment deduction | € 225,700 | € 196,400 | € 107,400 |
Lease liabilities (Details)
Lease liabilities (Details) - EUR (€) € in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2017 |
Lease liabilities | |||
Lease payments | € 9 | ||
Lease liability | 9 | ||
Less amount due for settlement within 12 months | € 5,826 | 9 | |
Amount due for settlement after 12 months | 19,558 | ||
Less than 1 year | |||
Lease liabilities | |||
Lease payments | 9 | ||
IFRS 16 | |||
Lease liabilities | |||
Lease payments | 26,353 | ||
Present value of lease payments | 25,384 | 9 | |
Less future finance charges | 969 | ||
Lease liability | 25,384 | € 25,912 | |
Less amount due for settlement within 12 months | 5,826 | 4,516 | 9 |
Amount due for settlement after 12 months | 19,558 | € 21,396 | |
IFRS 16 | Less than 1 year | |||
Lease liabilities | |||
Lease payments | 6,189 | ||
Present value of lease payments | 5,826 | € 9 | |
IFRS 16 | In the second to fifth years inclusive | |||
Lease liabilities | |||
Lease payments | 16,320 | ||
Present value of lease payments | 15,783 | ||
IFRS 16 | More than 5 years | |||
Lease liabilities | |||
Lease payments | 3,844 | ||
Present value of lease payments | € 3,775 |
Trade and other liabilities (De
Trade and other liabilities (Details) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Trade and other liabilities | |||
Trade and other liabilities. | € 142,510 | € 68,038 | € 47,122 |
Other non-current liabilities | 6,989 | 1,578 | 1,662 |
Accrued charges | 923 | 890 | 1,159 |
Total trade and other liabilities | € 150,422 | € 70,506 | € 49,942 |
Deferred income (Details)
Deferred income (Details) - EUR (€) € in Thousands | Jan. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred income related to contracts | |||||
Deferred income | € 3,000,646 | € 149,801 | € 219,892 | € 285,612 | |
Other deferred income (grants) | 10 | 309 | 301 | ||
Current deferred income | 414,298 | 149,801 | 122,544 | ||
Non-current deferred income | 2,586,348 | 97,348 | |||
Subsequent warrant B | |||||
Deferred income related to contracts | |||||
Non-current deferred income | 16,200 | ||||
IFRS 15 | |||||
Deferred income related to contracts | |||||
Increase in contract liability | € 83,200 | ||||
Current deferred income | € (83,200) | ||||
Collaboration agreement for filgotinib | |||||
Deferred income related to contracts | |||||
Deferred income | 145,800 | ||||
Gilead collaboration agreement for drug discovery platform | |||||
Deferred income related to contracts | |||||
Deferred income | 2,220,000 | ||||
Non-current deferred income | 1,991,600 | ||||
Grants [member] | |||||
Deferred income related to contracts | |||||
Deferred income | 300 | ||||
Subsequent warrant B | |||||
Deferred income related to contracts | |||||
Total transaction price | (16,184) | ||||
Gilead | |||||
Deferred income related to contracts | |||||
Total transaction price | 3,655,416 | ||||
Gilead | Subsequent warrant B | |||||
Deferred income related to contracts | |||||
Total transaction price | (16,184) | ||||
Gilead | Collaboration agreement for filgotinib | |||||
Deferred income related to contracts | |||||
Deferred income | 780,261 | 145,798 | 213,981 | 285,313 | |
Current deferred income | 780,300 | ||||
Non-current deferred income | 594,700 | ||||
Gilead | Gilead collaboration agreement for drug discovery platform | |||||
Deferred income related to contracts | |||||
Deferred income | 2,220,013 | ||||
AbbVie | Collaborative arrangement | |||||
Deferred income related to contracts | |||||
Deferred income | 3,223 | ||||
Servier | License [member] | |||||
Deferred income related to contracts | |||||
Deferred income | 5,362 | ||||
Fee for services segment | |||||
Deferred income related to contracts | |||||
Deferred income | 362 | € 471 | € 248 | € 47 | |
Current deferred income | € 400 |
Deferred income - Movement in t
Deferred income - Movement in the non-current and current deferred income (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Deferred Income [Line Items] | |||
Deferred income, beginning balance | € 149,801 | € 219,892 | € 285,612 |
Upfront/license fees received | 38,874 | 6,000 | |
Upfront received and impact of initial valuation of share subscription | 3,655,416 | ||
Milestones received | 49,727 | 20,965 | |
Significant financing component | 6,900 | ||
Revenue recognition of upfront/license fees | (1,009,663) | (148,985) | (71,971) |
Revenue recognition of milestones | (51,156) | (64,394) | |
Catch-up effect on closing date (1) | 245,883 | ||
Other movements | (46,262) | 229 | 250 |
Deferred income, ending balance | 3,000,646 | 149,801 | 219,892 |
Other | |||
Disclosure of Deferred Income [Line Items] | |||
Deferred income, beginning balance | 308 | 300 | 252 |
Other movements | (297) | 7 | 48 |
Deferred income, ending balance | 10 | 308 | 300 |
IFRS 15 | |||
Disclosure of Deferred Income [Line Items] | |||
Reclassified from equity following adoption of IFRS 15 | 83,220 | ||
Fee for services segment | |||
Disclosure of Deferred Income [Line Items] | |||
Deferred income, beginning balance | 471 | 248 | 47 |
Other movements | (109) | 222 | 202 |
Deferred income, ending balance | 362 | 471 | 248 |
Collaboration agreement for filgotinib | |||
Disclosure of Deferred Income [Line Items] | |||
Deferred income, beginning balance | 145,800 | ||
Deferred income, ending balance | 145,800 | ||
Collaboration agreement for filgotinib | Gilead | |||
Disclosure of Deferred Income [Line Items] | |||
Deferred income, beginning balance | 145,798 | 213,981 | 285,313 |
Upfront received and impact of initial valuation of share subscription | 641,663 | ||
Milestones received | 27,317 | 12,417 | |
Significant financing component | 6,900 | ||
Revenue recognition of upfront/license fees | (260,207) | (96,809) | (71,333) |
Revenue recognition of milestones | (27,092) | (27,623) | |
Catch-up effect on closing date (1) | 245,883 | ||
Deferred income, ending balance | 780,261 | 145,798 | 213,981 |
Collaboration agreement for filgotinib | IFRS 15 | Gilead | |||
Disclosure of Deferred Income [Line Items] | |||
Reclassified from equity following adoption of IFRS 15 | 43,832 | ||
Gilead collaboration agreement for GLPG 1690 | Gilead | |||
Disclosure of Deferred Income [Line Items] | |||
Upfront received and impact of initial valuation of share subscription | 666,967 | ||
Revenue recognition of upfront/license fees | (666,967) | ||
Gilead collaboration agreement for drug discovery platform | |||
Disclosure of Deferred Income [Line Items] | |||
Deferred income, ending balance | 2,220,000 | ||
Gilead collaboration agreement for drug discovery platform | Gilead | |||
Disclosure of Deferred Income [Line Items] | |||
Upfront received and impact of initial valuation of share subscription | 2,346,787 | ||
Revenue recognition of upfront/license fees | (80,918) | ||
Other movements | (45,856) | ||
Deferred income, ending balance | 2,220,013 | ||
AbbVie collaboration agreement for CF | AbbVie | |||
Disclosure of Deferred Income [Line Items] | |||
Deferred income, beginning balance | 3,224 | ||
Upfront/license fees received | 38,874 | ||
Milestones received | 22,410 | 8,548 | |
Revenue recognition of upfront/license fees | (1,570) | (52,176) | |
Revenue recognition of milestones | € (24,064) | (36,771) | |
Deferred income, ending balance | 3,224 | ||
AbbVie collaboration agreement for CF | IFRS 15 | AbbVie | |||
Disclosure of Deferred Income [Line Items] | |||
Reclassified from equity following adoption of IFRS 15 | 44,749 | ||
Servier collaboration agreement for osteoarthritis | Servier | |||
Disclosure of Deferred Income [Line Items] | |||
Deferred income, beginning balance | 5,362 | ||
Upfront/license fees received | 6,000 | ||
Revenue recognition of upfront/license fees | (638) | ||
Deferred income, ending balance | € 5,362 | ||
Servier collaboration agreement for osteoarthritis | IFRS 15 | Servier | |||
Disclosure of Deferred Income [Line Items] | |||
Reclassified from equity following adoption of IFRS 15 | € (5,362) |
Operating Cash Flow (Details)
Operating Cash Flow (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Adjustment for non-cash transactions | |||
Depreciation and amortization | € 12,448 | € 5,081 | € 4,285 |
Impairment loss | 1,083 | ||
Share-based compensation expenses | 38,297 | 26,757 | 16,536 |
Decrease (-)/increase in retirement benefit obligations and provisions | (156) | 99 | 23 |
Unrealized exchange losses/gains (-) and non-cash other financial expenses | 11,169 | (10,063) | 27,457 |
Discounting effect of deferred income | 6,900 | ||
Fair value re-measurement of share subscription agreement and warrants | 181,644 | ||
Net fair value adjustment current financial investments | 3,081 | ||
Fair value adjustment financial assets held at fair value through profit or loss | (5,355) | (1,203) | |
Total adjustment for non-cash transactions | 248,027 | 21,753 | 48,301 |
Interest expense | 1,302 | 780 | 936 |
Interest income | (9,247) | (5,219) | (3,045) |
Tax expense | 214 | 50 | 198 |
Total adjustment for items to disclose separately under operating cash flow | (7,731) | (4,389) | (1,912) |
Gain on sale of assets | (2) | (668) | |
Interest income on current financial investments | (5,059) | ||
Total adjustment for items to disclose separately under investing and financing cash flow | (5,061) | (668) | |
Decrease in inventories | 20 | 3 | 22 |
Increase in receivables | (67,263) | (76) | (27,656) |
Increase in liabilities | 79,940 | 19,996 | 14,772 |
Total change in working capital other than deferred income | € 12,698 | € 19,922 | € (12,862) |
Off-balance sheet arrangement_2
Off-balance sheet arrangements (Details) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019EUR (€)lease | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | |
Off-balance sheet arrangements | |||
Operating lease obligations | € 27,704 | € 26,346 | |
Purchase commitments | € 251,670 | 222,033 | 65,246 |
Total contractual obligations and commitments | 249,737 | 91,592 | |
Number of leases not yet commenced | lease | 2 | ||
Lease commitments not yet commenced | € 8,986 | ||
Purchase commitments understated | 22,500 | ||
Less than 1 year | |||
Off-balance sheet arrangements | |||
Operating lease obligations | 4,722 | 4,150 | |
Purchase commitments | 175,006 | 121,139 | 53,010 |
Total contractual obligations and commitments | 125,862 | 57,160 | |
Lease commitments not yet commenced | 5,793 | ||
Purchase commitments understated | 14,600 | ||
1-3 years | |||
Off-balance sheet arrangements | |||
Operating lease obligations | 10,024 | 7,820 | |
Purchase commitments | 70,675 | 81,879 | 11,233 |
Total contractual obligations and commitments | 91,903 | 19,053 | |
Lease commitments not yet commenced | 1,502 | ||
Purchase commitments understated | 29,200 | ||
3-5 years | |||
Off-balance sheet arrangements | |||
Operating lease obligations | 6,234 | 6,010 | |
Purchase commitments | 5,989 | 19,014 | 1,002 |
Total contractual obligations and commitments | 25,248 | 7,012 | |
Lease commitments not yet commenced | 1,502 | ||
Purchase commitments overstated | 21,300 | ||
More than 5 years | |||
Off-balance sheet arrangements | |||
Operating lease obligations | 6,724 | 8,366 | |
Total contractual obligations and commitments | 6,724 | 8,366 | |
Lease commitments not yet commenced | 188 | ||
Collaboration agreement for filgotinib | Gilead | |||
Off-balance sheet arrangements | |||
Purchase commitments | 27,500 | 20,300 | 10,100 |
Total contractual obligations and commitments | € 614,100 | € 74,000 | € 129,000 |
Contingent assets and liabili_2
Contingent assets and liabilities (Details) € in Millions, $ in Millions | Jul. 14, 2019USD ($) | Apr. 01, 2016 | Mar. 13, 2014EUR (€) | Dec. 31, 2019USD ($)Milestone | Aug. 31, 2019USD ($) | Jun. 30, 2017EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€)claim | Aug. 23, 2019 |
Total consideration | € | € 134 | ||||||||
Consideration received in cash | € | 129 | ||||||||
Potential earn out due upon achievement of a revenue target | € | € 5 | ||||||||
Number of months to achieve revenue target | 12 months | ||||||||
Percentage of consideration held in escrow | 5.00% | ||||||||
Number of claims | claim | 4 | ||||||||
Total settlement amount of claims | € | € 1.3 | ||||||||
Amount released from escrow | € | € 6.6 | ||||||||
Period a claim covered by tax deed can be introduced | 5 years | ||||||||
Cost share mechanism | 50.00% | ||||||||
Minimum | |||||||||
Cost share mechanism | 20.00% | ||||||||
Maximum | |||||||||
Cost share mechanism | 50.00% | ||||||||
Gilead | Filgotinib drug license | |||||||||
Funding in global development cost (as percentage) | 50.00% | ||||||||
Number of milestones achieved | Milestone | 2 | ||||||||
Potential development and regulatory milestones | $ | $ 640 | ||||||||
Achievement of milestone payments | $ | $ 30 | ||||||||
Gilead | Maximum | Filgotinib drug license | |||||||||
Sales based milestone payment | $ | $ 600 | ||||||||
Outside Europe | Minimum | |||||||||
Tiered royalty Percentage | 20.00% | ||||||||
Outside Europe | Maximum | |||||||||
Tiered royalty Percentage | 24.00% | ||||||||
Filgotinib drug license | |||||||||
Proceeds from milestone payments | $ | $ 30 | ||||||||
Sales based milestone payment | $ | $ 600 | ||||||||
Filgotinib drug license | Countries outside of Belgium, France, Germany, Italy, Luxembourg, the Netherlands, Spain and the United Kingdom | Minimum | |||||||||
Tiered royalty Percentage | 20.00% | 20.00% | |||||||
Filgotinib drug license | Countries outside of Belgium, France, Germany, Italy, Luxembourg, the Netherlands, Spain and the United Kingdom | Maximum | |||||||||
Tiered royalty Percentage | 30.00% | 30.00% | |||||||
GLPG 1690 License | Outside Europe | Minimum | |||||||||
Tiered royalty Percentage | 20.00% | ||||||||
GLPG 1690 License | Outside Europe | Maximum | |||||||||
Tiered royalty Percentage | 24.00% |
Warrant plans (Details)
Warrant plans (Details) | 12 Months Ended | ||||
Dec. 31, 2019EquityInstruments€ / shares | Dec. 31, 2018EquityInstruments€ / shares | Dec. 31, 2017EquityInstruments€ / shares | Dec. 31, 2010 | Dec. 31, 2016EquityInstruments€ / shares | |
Warrant Plans | |||||
Percentage of warrants vested for directors | 0.027% | ||||
Vesting period for directors | 36 months | ||||
Exercise Price | € / shares | € 70.09 | € 53.30 | € 39.32 | € 27.1 | |
Outstanding at the beginning of the year | 4,626,782 | 3,970,807 | 3,466,407 | ||
Granted during the period | 1,699,690 | 1,235,245 | 873,000 | ||
Exercised during the period | (754,605) | (567,270) | (368,200) | ||
Forfeited during the year | (30,750) | (12,000) | |||
Expired during the year | (400) | ||||
Outstanding at the end of the year | 5,541,117 | 4,626,782 | 3,970,807 | ||
Exercisable | 1,139,682 | 882,734 | 763,344 | 669,704 | |
2006 BNL allocated on December 2007 | |||||
Warrant Plans | |||||
Exercise Price | € / shares | € 7.12 | ||||
Outstanding at the beginning of the year | 1,050 | ||||
Outstanding at the end of the year | 1,050 | 1,050 | |||
Exercisable | 1,050 | ||||
2007 allocated on June 2007 | |||||
Warrant Plans | |||||
Exercise Price | € / shares | € 8.65 | ||||
Outstanding at the beginning of the year | 29,374 | ||||
Exercised during the period | (29,374) | ||||
Outstanding at the end of the year | 29,374 | ||||
2007 RMV allocated on October 2007 | |||||
Warrant Plans | |||||
Exercise Price | € / shares | € 8.65 | ||||
Outstanding at the beginning of the year | 24,550 | ||||
Exercised during the period | (9,570) | ||||
Outstanding at the end of the year | 14,980 | 24,550 | |||
Exercisable | 14,980 | ||||
2008 allocated on June 2008 | |||||
Warrant Plans | |||||
Exercise Price | € / shares | € 5.60 | ||||
Outstanding at the beginning of the year | 77,100 | ||||
Exercised during the period | (75,735) | ||||
Outstanding at the end of the year | 1,365 | 77,100 | |||
Exercisable | 1,365 | ||||
2011 allocated on May 2011 | |||||
Warrant Plans | |||||
Exercise Price | € / shares | € 9.95 | ||||
Outstanding at the beginning of the year | 37,500 | ||||
Exercised during the period | (37,500) | ||||
Outstanding at the end of the year | 37,500 | ||||
2012 allocated on September 2012 | |||||
Warrant Plans | |||||
Exercise Price | € / shares | € 14.19 | ||||
Outstanding at the beginning of the year | 110,040 | ||||
Exercised during the period | (30,000) | ||||
Outstanding at the end of the year | 80,040 | 110,040 | |||
Exercisable | 80,040 | ||||
2013 allocated on May 2013 | |||||
Warrant Plans | |||||
Exercise Price | € / shares | € 19.38 | ||||
Outstanding at the beginning of the year | 195,560 | ||||
Exercised during the period | (75,126) | ||||
Outstanding at the end of the year | 120,434 | 195,560 | |||
Exercisable | 120,434 | ||||
2014 allocated on July 2014 | |||||
Warrant Plans | |||||
Exercise Price | € / shares | € 14.54 | ||||
Outstanding at the beginning of the year | 347,560 | ||||
Exercised during the period | (95,220) | ||||
Outstanding at the end of the year | 252,340 | 347,560 | |||
Exercisable | 252,340 | ||||
2014 (B) allocated on October 2014 | |||||
Warrant Plans | |||||
Exercise Price | € / shares | € 11.93 | ||||
Outstanding at the beginning of the year | 60,000 | ||||
Exercised during the period | (60,000) | ||||
Outstanding at the end of the year | 60,000 | ||||
2015 allocated on April 2015 | |||||
Warrant Plans | |||||
Exercise Price | € / shares | € 28.75 | ||||
Outstanding at the beginning of the year | 515,053 | ||||
Exercised during the period | (232,580) | ||||
Outstanding at the end of the year | 282,473 | 515,053 | |||
Exercisable | 282,473 | ||||
2015 (B) allocated on December 2015 | |||||
Warrant Plans | |||||
Exercise Price | € / shares | € 49 | ||||
Outstanding at the beginning of the year | 399,000 | ||||
Exercised during the period | (69,500) | ||||
Outstanding at the end of the year | 329,500 | 399,000 | |||
Exercisable | 329,500 | ||||
2015 RMV allocated on December 2015 | |||||
Warrant Plans | |||||
Exercise Price | € / shares | € 49 | ||||
Outstanding at the beginning of the year | 97,500 | ||||
Exercised during the period | (40,000) | ||||
Outstanding at the end of the year | 57,500 | 97,500 | |||
Exercisable | 57,500 | ||||
2016 allocated on June 2016 | |||||
Warrant Plans | |||||
Exercise Price | € / shares | € 46.10 | ||||
Outstanding at the beginning of the year | 504,250 | ||||
Outstanding at the end of the year | 504,250 | 504,250 | |||
2016 RMV allocated on June 2016 | |||||
Warrant Plans | |||||
Exercise Price | € / shares | € 46.10 | ||||
Outstanding at the beginning of the year | 120,000 | ||||
Outstanding at the end of the year | 120,000 | 120,000 | |||
2016 (B) allocated on January 2017 | |||||
Warrant Plans | |||||
Exercise Price | € / shares | € 62.50 | ||||
Outstanding at the beginning of the year | 150,000 | ||||
Outstanding at the end of the year | 150,000 | 150,000 | |||
2017 allocated on May 2017 | |||||
Warrant Plans | |||||
Exercise Price | € / shares | € 80.57 | ||||
Outstanding at the beginning of the year | 595,500 | ||||
Outstanding at the end of the year | 595,500 | 595,500 | |||
2017 RMV allocated on May 2017 | |||||
Warrant Plans | |||||
Exercise Price | € / shares | € 80.57 | ||||
Outstanding at the beginning of the year | 127,500 | ||||
Outstanding at the end of the year | 127,500 | 127,500 | |||
2018 allocated on April 2018 | |||||
Warrant Plans | |||||
Exercise Price | € / shares | € 79.88 | ||||
Outstanding at the beginning of the year | 1,097,745 | ||||
Forfeited during the year | (12,500) | ||||
Outstanding at the end of the year | 1,085,245 | 1,097,745 | |||
2018 RMV allocated on April 2018 | |||||
Warrant Plans | |||||
Exercise Price | € / shares | € 79.88 | ||||
Outstanding at the beginning of the year | 137,500 | ||||
Outstanding at the end of the year | 137,500 | 137,500 | |||
2019 allocated on April 2019 | |||||
Warrant Plans | |||||
Exercise Price | € / shares | € 95.11 | ||||
Granted during the period | 1,504,940 | ||||
Forfeited during the year | (18,250) | ||||
Outstanding at the end of the year | 1,486,690 | ||||
2019 RMV allocated on April 2019 | |||||
Warrant Plans | |||||
Exercise Price | € / shares | € 95.11 | ||||
Granted during the period | 194,750 | ||||
Outstanding at the end of the year | 194,750 | ||||
Warrants vested on date of grant | |||||
Warrant Plans | |||||
Percentage of warrants vested for directors | 10.00% | ||||
Warrants vested on first anniversary | |||||
Warrant Plans | |||||
Percentage of warrants vested for directors | 10.00% | ||||
Warrants vested on second anniversary | |||||
Warrant Plans | |||||
Percentage of warrants vested for directors | 20.00% | ||||
Warrants vested on third anniversary | |||||
Warrant Plans | |||||
Percentage of warrants vested for directors | 20.00% | ||||
Warrants vested on end of third calendar year | |||||
Warrant Plans | |||||
Percentage of warrants vested for directors | 40.00% |
Warrant plans - Rollforward (De
Warrant plans - Rollforward (Details) | 12 Months Ended | |||
Dec. 31, 2019EquityInstruments€ / shares | Dec. 31, 2018EquityInstruments€ / shares | Dec. 31, 2017EquityInstruments€ / shares | Dec. 31, 2016EquityInstruments€ / shares | |
Warrant plans | ||||
Outstanding at the beginning of the year | EquityInstruments | 4,626,782 | 3,970,807 | 3,466,407 | |
Granted during the period | EquityInstruments | 1,699,690 | 1,235,245 | 873,000 | |
Forfeited during the year | EquityInstruments | (30,750) | (12,000) | ||
Exercised during the period | EquityInstruments | (754,605) | (567,270) | (368,200) | |
Expired during the year | EquityInstruments | (400) | |||
Outstanding at the end of the year | EquityInstruments | 5,541,117 | 4,626,782 | 3,970,807 | |
Exercisable | EquityInstruments | 1,139,682 | 882,734 | 763,344 | 669,704 |
Weighted average exercise price at beginning of the year | € / shares | € 53.30 | € 39.32 | € 27.1 | |
Granted during the period | € / shares | 95.1 | 79.9 | 77.5 | |
Forfeited during the year | € / shares | 88.9 | 43.2 | ||
Exercised during the period | € / shares | 22.8 | 13.5 | 14.4 | |
Expired during the year | € / shares | 19.4 | |||
Weighted average exercise price at end of the year | € / shares | 70.09 | 53.30 | 39.32 | |
Exercisable | € / shares | € 30.2 | € 14 | € 13.7 | € 10.3 |
Warrant plans - Valuation (Deta
Warrant plans - Valuation (Details) - EUR (€) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Warrant Plans | |||
Share based compensation expense | € 38,297,000 | € 26,757,000 | € 16,536,000 |
2019 allocated on April 2019 | |||
Warrant Plans | |||
Exercise Price | € 95.11 | ||
Weighted average share price at acceptance date | € 107.05 | ||
Weighted average fair value on the acceptance date | € 40.04 | ||
Weighted average estimated volatility | 35.86% | ||
Weighted average expected life of the warrant (years) | 6 years | ||
Weighted average risk free rate (%) | (0.27%) | ||
2019 RMV allocated on April 2019 | |||
Warrant Plans | |||
Exercise Price | € 95.11 | ||
Weighted average share price at acceptance date | € 107.45 | ||
Weighted average fair value on the acceptance date | € 40.05 | ||
Weighted average estimated volatility | 35.63% | ||
Weighted average expected life of the warrant (years) | 6 years | ||
Weighted average risk free rate (%) | (0.28%) | ||
2018 allocated on April 2018 | |||
Warrant Plans | |||
Exercise Price | € 79.88 | ||
Weighted average share price at acceptance date | € 84.88 | ||
Weighted average fair value on the acceptance date | € 38.39 | ||
Weighted average estimated volatility | 39.44% | ||
Weighted average expected life of the warrant (years) | 8 years | ||
Weighted average risk free rate (%) | 0.51% | ||
2018 RMV allocated on April 2018 | |||
Warrant Plans | |||
Exercise Price | € 79.88 | ||
Weighted average share price at acceptance date | € 84.88 | ||
Weighted average fair value on the acceptance date | € 38.39 | ||
Weighted average estimated volatility | 39.44% | ||
Weighted average expected life of the warrant (years) | 8 years | ||
Weighted average risk free rate (%) | 0.51% | ||
2017 allocated on May 2017 | |||
Warrant Plans | |||
Exercise Price | € 80.57 | ||
Weighted average share price at acceptance date | € 68.67 | ||
Weighted average fair value on the acceptance date | € 26.86 | ||
Weighted average estimated volatility | 40.06% | ||
Weighted average expected life of the warrant (years) | 8 years | ||
Weighted average risk free rate (%) | 0.33% | ||
2017 RMV allocated on May 2017 | |||
Warrant Plans | |||
Exercise Price | € 80.57 | ||
Weighted average share price at acceptance date | € 68.67 | ||
Weighted average fair value on the acceptance date | € 26.80 | ||
Weighted average estimated volatility | 40.08% | ||
Weighted average expected life of the warrant (years) | 8 years | ||
Weighted average risk free rate (%) | 0.29% |
Warrant plans - Category (Detai
Warrant plans - Category (Details) | 12 Months Ended | |||
Dec. 31, 2019EquityInstruments€ / shares | Dec. 31, 2018EquityInstruments€ / shares | Dec. 31, 2017EquityInstruments€ / shares | Dec. 31, 2016EquityInstruments€ / shares | |
Warrant Plans | ||||
Total warrants outstanding | 5,541,117 | 4,626,782 | 3,970,807 | 3,466,407 |
Exercise Price | € / shares | € 70.09 | € 53.30 | € 39.32 | € 27.1 |
Weighted average remaining expected life | 1439 days | 1500 days | 1441 days | |
Non-executive directors | ||||
Warrant Plans | ||||
Total warrants outstanding | 222,600 | 216,780 | 216,060 | |
Executive team | ||||
Warrant Plans | ||||
Total warrants outstanding | 2,171,874 | 2,139,374 | 2,039,374 | |
Other | ||||
Warrant Plans | ||||
Total warrants outstanding | 3,146,643 | 2,270,628 | 1,715,373 |
Related parties - Narrative (De
Related parties - Narrative (Details) € / shares in Units, $ in Millions | Nov. 06, 2019EUR (€) | Oct. 22, 2019 | Aug. 28, 2019 | Aug. 23, 2019USD ($)item | Aug. 23, 2019EUR (€)item | Jul. 14, 2019USD ($) | Jul. 14, 2019EUR (€) | Dec. 31, 2019EUR (€)EquityInstrumentsemployee€ / shares | Dec. 31, 2018EUR (€)EquityInstruments€ / shares | Dec. 31, 2017EUR (€)EquityInstruments€ / shares |
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | ||||||||||
Number of executive committee members | employee | 5 | |||||||||
Number of board of directors | employee | 8 | |||||||||
Granted during the period | EquityInstruments | 1,699,690 | 1,235,245 | 873,000 | |||||||
Exercise price of warrants | € / shares | € 95.1 | € 79.9 | € 77.5 | |||||||
Development milestone amount receivable | € 18,200,000 | |||||||||
Cross charges payable relating to development of Filgotinib | 30,900,000 | |||||||||
Sales and marketing expenses | 8,200,000 | |||||||||
Upfront payment received | $ 3,950 | € 3,569,800,000 | ||||||||
Deferred income classified as current | 414,298,000 | € 149,801,000 | € 122,544,000 | |||||||
Total transaction price | 3,655,000,000 | |||||||||
Number of performance obligations | item | 3 | 3 | ||||||||
Revenue from contracts with customers related to glpg1690 | 17,700,000 | |||||||||
Total impact on revenue | 41,000,000 | |||||||||
Sales and marketing expense | € 24,577,000 | € 4,146,000 | € 2,803,000 | |||||||
Cost share mechanism | 50.00% | |||||||||
Number of outstanding performance Obligations | 2 | |||||||||
Restricted Stock Units (RSUs) | ||||||||||
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | ||||||||||
Granted during the period | EquityInstruments | 183,450 | |||||||||
Gilead | ||||||||||
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | ||||||||||
Transaction price allocated to remaining performance obligations | € 3,593,376,000 | |||||||||
Gilead collaboration agreement for drug discovery platform | ||||||||||
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | ||||||||||
Deferred Income | 2,200,000,000 | |||||||||
Revenue from performance obligations satisfied or partially satisfied in previous periods | 81,000,000 | |||||||||
GLPG 1690 License | ||||||||||
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | ||||||||||
Cost reimbursement receivable | 13,400,000 | |||||||||
Total transaction price | € 667,000,000 | |||||||||
Executive committee members as a group | ||||||||||
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | ||||||||||
Granted during the period | 315,000 | 350,000 | 475,000 | |||||||
Raj Parekh | ||||||||||
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | ||||||||||
Granted during the period | EquityInstruments | 15,000 | 15,000 | 15,000 | |||||||
Harrold van Barlingen | ||||||||||
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | ||||||||||
Granted during the period | EquityInstruments | 7,500 | |||||||||
Howard Rowe | ||||||||||
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | ||||||||||
Granted during the period | EquityInstruments | 7,500 | 7,500 | 7,500 | |||||||
Werner Cautreels | ||||||||||
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | ||||||||||
Granted during the period | EquityInstruments | 7,500 | 7,500 | ||||||||
Katrine Bosley | ||||||||||
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | ||||||||||
Granted during the period | EquityInstruments | 7,500 | 7,500 | 7,500 | |||||||
Christine Mummery | ||||||||||
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | ||||||||||
Granted during the period | EquityInstruments | 7,500 | 7,500 | ||||||||
Mary Kerr | ||||||||||
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | ||||||||||
Granted during the period | EquityInstruments | 7,500 | 7,500 | 7,500 | |||||||
Peter Guenter | ||||||||||
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | ||||||||||
Granted during the period | EquityInstruments | 7,500 | |||||||||
Gilead | ||||||||||
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | ||||||||||
Possible increase of ownership | 25.10% | 22.04% | 25.84% | |||||||
Trade and other receivables | € 31,645,000 | |||||||||
Trade and other payables | € 39,100,000 | |||||||||
Agreement term (in years) | 10 years | |||||||||
Upfront payment received | $ 3,950 | € 3,600,000,000 | ||||||||
Equity investment | $ 1,100 | € 960,000,000 | ||||||||
Deferred Income | € 85,600,000 | |||||||||
Current derivative financial assets | 85,600,000 | |||||||||
Additional equity investment | € 368,000,000 | |||||||||
Line research and development expenditure related to filgotinib | € 72,000,000 | |||||||||
Cost share mechanism | 50.00% | |||||||||
Gilead | Maximum | ||||||||||
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | ||||||||||
Possible increase of ownership | 29.90% | |||||||||
Gilead | GLPG 1690 License | ||||||||||
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | ||||||||||
Cost reimbursements recognized | € 17,700,000 | |||||||||
Filgotinib drug license | ||||||||||
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | ||||||||||
Transaction price allocated to remaining performance obligations | 780,000,000 | |||||||||
Filgotinib drug license | Gilead | ||||||||||
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | ||||||||||
Sales and marketing expense | € 8,200,000 |
Related parties - Summary of re
Related parties - Summary of remuneration package (Details) | 12 Months Ended | ||
Dec. 31, 2019EUR (€)EquityInstruments | Dec. 31, 2018EUR (€)EquityInstruments | Dec. 31, 2017EUR (€)EquityInstruments | |
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | |||
Post-employment benefits | € 323,000 | € 305,000 | € 248,000 |
Total benefits excluding warrants and RSUs | € 16,619,000 | € 5,346,000 | € 4,305,000 |
Granted during the period | EquityInstruments | 1,699,690 | 1,235,245 | 873,000 |
Total cost of warrants granted in the year | € 14,236,000 | € 15,507,000 | € 15,699,000 |
Key management personnel compensation, tax advisory services amount | € 20,100 | ||
Key Management personnel compensation, social security amount | € 5,000 | ||
Warrants | |||
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | |||
Granted during the period | EquityInstruments | 360,000 | 402,500 | 535,000 |
Restricted Stock Units (RSUs) | |||
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | |||
Granted during the period | EquityInstruments | 183,450 | ||
Executive committee members as a group | |||
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | |||
Short-term benefits for executive committee members as a group | € 14,129,000 | € 2,909,000 | € 2,477,000 |
Gross salary | 2,121,000 | 1,920,000 | 1,639,000 |
Employer social security on gross salary | 61,000 | 125,000 | 31,000 |
Cash bonus | 1,230,000 | 757,000 | 697,000 |
Exceptional bonus | 10,500,000 | ||
Employer social security on exceptional bonus | 108,000 | ||
Other short-term benefits | 109,000 | 107,000 | 110,000 |
Long-term benefits for executive committee members as a group | € 1,874,000 | € 1,812,000 | € 1,217,000 |
Granted during the period | 315,000 | 350,000 | 475,000 |
Raj Parekh | |||
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | |||
Board fees and other short-term benefits for directors | € 90,000 | € 92,000 | € 91,000 |
Granted during the period | EquityInstruments | 15,000 | 15,000 | 15,000 |
Harrold van Barlingen | |||
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | |||
Board fees and other short-term benefits for directors | € 15,000 | € 45,000 | |
Granted during the period | EquityInstruments | 7,500 | ||
Howard Rowe | |||
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | |||
Board fees and other short-term benefits for directors | € 55,000 | € 53,000 | € 45,000 |
Granted during the period | EquityInstruments | 7,500 | 7,500 | 7,500 |
Werner Cautreels | |||
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | |||
Board fees and other short-term benefits for directors | € 15,000 | € 48,000 | € 55,000 |
Granted during the period | EquityInstruments | 7,500 | 7,500 | |
Katrine Bosley | |||
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | |||
Board fees and other short-term benefits for directors | € 45,000 | € 45,000 | € 45,000 |
Granted during the period | EquityInstruments | 7,500 | 7,500 | 7,500 |
Christine Mummery | |||
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | |||
Board fees and other short-term benefits for directors | € 13,000 | € 40,000 | € 41,000 |
Granted during the period | EquityInstruments | 7,500 | 7,500 | |
Mary Kerr | |||
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | |||
Board fees and other short-term benefits for directors | € 45,000 | € 46,000 | € 41,000 |
Granted during the period | EquityInstruments | 7,500 | 7,500 | 7,500 |
Peter Guenter | |||
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items] | |||
Board fees and other short-term benefits for directors | € 30,000 | ||
Granted during the period | EquityInstruments | 7,500 |
Consolidated companies as of _3
Consolidated companies as of December 31, 2019 (Details) - entity | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Belgium | |||
Consolidated companies as of December 31, 2019 | |||
Number of new legal entities incorporated | 2 | ||
BioFocus DPI AG | Switzerland | |||
Consolidated companies as of December 31, 2019 | |||
Percentage of voting rights held directly or indirectly through subsidiaries | 100.00% | 100.00% | 100.00% |
Fidelta d.o.o. | Croatia | |||
Consolidated companies as of December 31, 2019 | |||
Percentage of voting rights held directly or indirectly through subsidiaries | 100.00% | 100.00% | 100.00% |
Galapagos Biopharma BV | The Netherlands | |||
Consolidated companies as of December 31, 2019 | |||
Percentage of voting rights held directly or indirectly through subsidiaries | 100.00% | ||
Changes in voting rights | 100.00% | ||
Galapagos Biopharma BV | Belgium | |||
Consolidated companies as of December 31, 2019 | |||
Percentage of voting rights held directly or indirectly through subsidiaries | 100.00% | ||
Changes in voting rights | 100.00% | ||
Galapagos B.V | The Netherlands | |||
Consolidated companies as of December 31, 2019 | |||
Percentage of voting rights held directly or indirectly through subsidiaries | 100.00% | 100.00% | 100.00% |
Galapagos Biopharma Spain S.L.U | Spain | |||
Consolidated companies as of December 31, 2019 | |||
Percentage of voting rights held directly or indirectly through subsidiaries | 100.00% | ||
Changes in voting rights | 100.00% | ||
Galapagos Biopharma Italy S.r.l. | Italy | |||
Consolidated companies as of December 31, 2019 | |||
Percentage of voting rights held directly or indirectly through subsidiaries | 100.00% | ||
Changes in voting rights | 100.00% | ||
Galapagos Biopharma Germany GmbH | Germany | |||
Consolidated companies as of December 31, 2019 | |||
Percentage of voting rights held directly or indirectly through subsidiaries | 100.00% | ||
Changes in voting rights | 100.00% | ||
Galapagos Biotech Ltd. (formerly Inpharmatica Ltd.) | United Kingdom | |||
Consolidated companies as of December 31, 2019 | |||
Percentage of voting rights held directly or indirectly through subsidiaries | 100.00% | 100.00% | 100.00% |
Galapagos GmbH | Switzerland | |||
Consolidated companies as of December 31, 2019 | |||
Percentage of voting rights held directly or indirectly through subsidiaries | 100.00% | 100.00% | 100.00% |
Galapagos Real Estate 1 BV | Belgium | |||
Consolidated companies as of December 31, 2019 | |||
Percentage of voting rights held directly or indirectly through subsidiaries | 100.00% | 100.00% | |
Galapagos Real Estate 2 BV | Belgium | |||
Consolidated companies as of December 31, 2019 | |||
Percentage of voting rights held directly or indirectly through subsidiaries | 100.00% | 100.00% | |
Galapagos Real Estate B.V. | The Netherlands | |||
Consolidated companies as of December 31, 2019 | |||
Percentage of voting rights held directly or indirectly through subsidiaries | 100.00% | ||
Changes in voting rights | 100.00% | ||
Galapagos SASU (France) | France | |||
Consolidated companies as of December 31, 2019 | |||
Percentage of voting rights held directly or indirectly through subsidiaries | 100.00% | 100.00% | 100.00% |
Galapagos, Inc. (formerly Biofocus, Inc.) | United States | |||
Consolidated companies as of December 31, 2019 | |||
Percentage of voting rights held directly or indirectly through subsidiaries | 100.00% | 100.00% | 100.00% |
Xenometrix, Inc. | United States | |||
Consolidated companies as of December 31, 2019 | |||
Percentage of voting rights held directly or indirectly through subsidiaries | 100.00% | 100.00% | 100.00% |
Financial risk management - Fin
Financial risk management - Financial risk factors (Details) € in Thousands, $ in Millions | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) |
Financial risk management | |||||
Equity instruments | € 11,275 | € 6,000 | € 1,754 | ||
Financial assets | 5,847,242 | 1,316,539 | 1,181,545 | ||
Financial liabilities | 181,006 | 69,540 | 48,727 | ||
Liquidity risk | |||||
Cash and cash equivalents | $ 656.9 | 1,861,616 | 1,290,796 | 1,151,211 | € 973,241 |
Current financial investments | |||||
Financial risk management | |||||
Financial assets | 3,919,216 | ||||
Cash and cash equivalents | |||||
Financial risk management | |||||
Financial assets | 1,861,616 | 1,290,796 | 1,151,211 | ||
Restricted cash (current and non-current) | |||||
Financial risk management | |||||
Financial assets | 1,418 | 1,276 | 1,158 | ||
Trade and other receivables (excl prepayments) | |||||
Financial risk management | |||||
Financial assets | 53,717 | 18,467 | 27,422 | ||
Current financial instruments | |||||
Financial risk management | |||||
Financial liabilities | 6,198 | ||||
Trade & other liabilities | |||||
Financial risk management | |||||
Financial liabilities | 142,510 | 68,038 | 47,122 | ||
Other non-current liabilities | |||||
Financial risk management | |||||
Financial liabilities | 6,914 | € 1,502 | 1,597 | ||
Lease liabilities. | |||||
Financial risk management | |||||
Financial liabilities | € 25,384 | € 9 |
Financial risk management - Agi
Financial risk management - Aging of Debtors (Details) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financial risk management | |||
Financial assets | € 5,847,242 | € 1,316,539 | € 1,181,545 |
60 - 90 days | Trade receivables | Credit risk | |||
Financial risk management | |||
Financial assets | 87 | 236 | |
90 - 120 days | Trade receivables | Credit risk | |||
Financial risk management | |||
Financial assets | 12 | 1 | |
more than 120 days | Trade receivables | Credit risk | |||
Financial risk management | |||
Financial assets | € 0 | € 0 | € 0 |
Financial risk management - Int
Financial risk management - Interest rate risk and foreign exchange risk (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest rate risk | |||
Financial risk management | |||
Increase in interest rates | 1.00% | 1.00% | 1.00% |
Decrease in interest rates | 1.00% | 1.00% | 1.00% |
Approximate increase in profit or loss, and equity from increase in interest rates | € 57,800 | € 12,900 | € 11,500 |
Approximate decrease in profit or loss, and equity from decrease in interest rates | € 57,800 | € 12,900 | € 11,500 |
Foreign exchange risk | |||
Financial risk management | |||
Percentage of change in risk assumption | 10.00% | 10.00% | 10.00% |
Euros - U.S. Dollars Exchange rate value | Foreign exchange risk | |||
Financial risk management | |||
Increase (Decrease) in net book value | € (133,373) | € (27,200) | € (21,083) |
Euros - GB Pounds Exchange rate value | Foreign exchange risk | |||
Financial risk management | |||
Increase (Decrease) in net book value | 113 | 100 | 122 |
Euros - CH Francs Exchange rate value | Foreign exchange risk | |||
Financial risk management | |||
Increase (Decrease) in net book value | 538 | 208 | 203 |
Euros - HR Kunas Exchange rate value | Foreign exchange risk | |||
Financial risk management | |||
Increase (Decrease) in net book value | 650 | 611 | (185) |
U.S. Dollars - GB Pounds Exchange rate value | Foreign exchange risk | |||
Financial risk management | |||
Increase (Decrease) in net book value | € (894) | € (923) | € (831) |
Auditor's remuneration (Details
Auditor's remuneration (Details) - EUR (€) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Auditor's remuneration | ||
Statutory auditor's fees | € 1,406,800 | € 414,600 |
Fees for audit-related services | 29,200 | 0 |
Fees for persons related to the statutory auditor | 29,200 | 27,500 |
Fees for legal assignments | 43,000 | 92,100 |
Other fees related to non-audit services executed by the statutory auditor | 148,200 | |
Other fees related to non-audit services executed by persons related to the statutory auditor | € 46,600 | |
Other fees related to IT services | € 134,800 |
Events after balance sheet da_2
Events after balance sheet date (Details) | Mar. 17, 2020EUR (€)€ / sharesshares | Dec. 31, 2019EquityInstruments | Dec. 31, 2018EquityInstruments | Dec. 31, 2017EquityInstruments |
Disclosure of non-adjusting events after reporting period [line items] | ||||
Warrants exercised | EquityInstruments | 754,605 | 567,270 | 368,200 | |
Exercise of Warrants [Member] | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Warrants exercised | 152,220 | |||
Average exercise price warrants | € / shares | € 35.18 | |||
Increase to share capital and issuance premium due to warrants issued | € 5,354,538.80 | |||
Number of shares issued | shares | 152,220 | |||
Closing share price | € / shares | € 141.40 | |||
CEO [member] | Exercise of Warrants [Member] | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Warrants exercised | 15,000 | |||
Members of Executive Committee [member] | Exercise of Warrants [Member] | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Warrants exercised | 15,000 | |||
Members of Board of Directors [member] | Exercise of Warrants [Member] | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Warrants exercised | 17,520 |