Investor newsletter: 3rd quarter 2010 wrap-up

Dear reader,

During the past three months, Galapagos kept an exciting pace with progress in the clinic, acquisition of a new research center and three award nominations.

Advances in the clinic

Galapagos advanced its novel mode-of-action candidate drug, GLPG0259, into Phase II clinical trials in rheumatoid arthritis patients.  Interim results for this Proof-of-Concept trial are expect in mid-2011, with completion of the dose-finding component by the end of 2011.  Another rheumatoid arthritis candidate drug based on promising JAK targets, GLPG0634, entered Phase I trials in August.

Acquisition of R&D center in Zagreb

In September, Galapagos acquired GSK's state-of-the art research center in Zagreb.  This center with 130 employees provides additional capacity for Galapagos' growing R&D requirements.  In addition, Galapagos will provide R&D services to GSK under a three year fee-for-service contract to the value of €14 M.

Deals for service operations

Last quarter, the service division extended a major agreement with the U.S. National Institutes of Health, signed a new collaboration with the University of Bristol, and capitalized on the synergies between Argenta and BioFocus through a deal extension with Genentech.

Corporate events

In August, Galapagos announced its half year results were in line with 2010 full year guidance given earlier this year: group revenues of over €135 million, with positive operational income and cash flow, and a positive net result in 2010.  In September, Galapagos announced that its Board of Directors appointed Mr. Howard Rowe, previously a Managing Director at Goldman Sachs, as an Independent Director of the Company.

Scientific publications

Q3 was also productive in terms of scientific output.  At the 21st International Symposium on Medicinal Chemistry, Galapagos gave a presentation on the chemistry behind the MAPKAPK5/GLPG0259 program as well as a poster on osteoarthritis drug discovery. At the 10th International Conference on Cancer-Induced Bone Disease, Galapagos presented a poster on the combined effects of cancer metastasis candidate drug GLPG0187 with standard-of-care treatments for metastatic breast cancer.

Upcoming conferences

This quarter, Galapagos plans to present at Biotechnica, BioFIT, the NYSE Euronext & France Biotech Life Sciences Day and Dag van de Belegger.

Award nominations

We are proud to announce that Galapagos is a finalist for this year's European Biotechnica Award, to be presented next week in Hannover.  Galapagos is also nominated for the Deloitte Technology Fast50, an annual election of the 50 fastest growing technology companies in the Netherlands and Belgium, where the ranking and winners will be announced Oct. 7th.  The Company has also been shortlisted for two Scrip Awards (Biotech Company and Clinical Research Team of the Year), which will be awarded on November 4th in London. 

Galapagos in the news

In English:

Galapagos acquires Zagreb R&D centre from GSK Reuters, 8 September 2010

In het Nederlands:

Galapagos begint aan 'cruciale' test De Tijd, 28 september 2010

9 kleine aandelen met toekomst Netto, 23 september 2010

Galapagos koopt onderzoekscentrum van GSK in Zagreb De Standaard, 8 september 2010

2010 Financial Calendar

12 November 2010: 3Q 2010 update            

4 March 2011: FY 2010 results   

As always, if you have any questions or would like further information, feel free to contact the IR team at ir@glpg.com or +31 62 291 6240.

With best regards,

The Galapagos IR team