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Galapagos (GLPG)
NASDAQ:GLPG
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Galapagos
(NASDAQ:GLPG)
52Neutral
Positive Factors
Financial stability
The company expects a cash runway extending to 2028, suggesting financial stability for ongoing projects.
Strategic focus
GLPG is prioritizing the development of GLPG5101 due to logistical advantages, which could streamline the manufacturing process.
Negative Factors
Uncertainty and risks
The absence of updates on the proposed spinoff indicates uncertainty about the company's strategic direction.
Galapagos (GLPG) vs. S&P 500 (SPY)
Market Cap
$1.74B
Dividend YieldN/A
Average Volume (3M)287.49K
Price to Earnings (P/E)21.7
Beta (1Y)0.83
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees1,123
SectorHealthcare
Sector Strength78
IndustryBiotechnology
Share Statistics
EPS (TTM)1.20
Shares Outstanding65,897,070
10 Day Avg. Volume201,905
30 Day Avg. Volume287,489
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)6.69
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$25.75Price Target Upside-0.92% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering4
Galapagos Business Overview & Revenue Model
Company DescriptionGalapagos NV (GLPG) is a biotechnology company based in Belgium, focusing on the discovery and development of small molecule medicines with novel modes of action. The company operates primarily in the pharmaceutical sector, with a strong emphasis on research and development to address unmet medical needs. Galapagos' core products include drug candidates in various therapeutic areas such as inflammation, fibrosis, and other diseases.
How the Company Makes MoneyGalapagos makes money through the development and commercialization of its proprietary drug candidates. The company's revenue streams are primarily derived from collaborations with major pharmaceutical companies, which include upfront payments, milestone payments, and royalties. Key partnerships, such as those with Gilead Sciences, contribute significantly to its earnings by providing funding and sharing the commercialization responsibilities for certain drug candidates. Additionally, Galapagos may generate revenue from licensing agreements and government grants to support its R&D efforts.
Galapagos Financial Statement Overview
Summary
Galapagos shows significant revenue and operational challenges with negative margins and declining revenue. Despite a strong balance sheet with low leverage, emerging liquidity issues and weak cash flow position highlight potential cash management problems.Income Statement
Galapagos has faced significant revenue decline with Total Revenue turning negative in the TTM compared to prior positive figures. This negative trend is concerning, especially in conjunction with negative EBIT and EBITDA margins, indicating operational inefficiencies. The company's Net Income has shown improvement, suggesting cost management efforts, but the overall profitability metrics are weak.35
Negative
Balance Sheet
The balance sheet highlights a strong equity position with a low Debt-to-Equity Ratio, suggesting financial stability. The Equity Ratio is robust, indicating a high proportion of assets financed by equity. However, declining Total Assets and Cash Reserves signal potential liquidity challenges if the trend continues.65
Positive
Cash Flow
Galapagos has experienced negative Free Cash Flow, along with a negative Operating Cash Flow, reflecting operational cash challenges. The Free Cash Flow to Net Income ratio remains negative, showing cash flow inconsistencies despite positive net income. This trend may hinder long-term cash sustainability.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| -8.97M | 239.72M | 505.28M | 484.85M | 478.05M | 844.99M | Gross Profit |
| -112.52M | 203.74M | 493.20M | 483.22M | -45.61M | 417.67M | EBIT |
| -211.56M | -88.26M | -267.52M | -165.60M | -178.63M | 370.29M | EBITDA |
| -135.80M | 51.04M | -33.37M | -100.93M | -294.52M | 374.24M | Net Income Common Stockholders |
| 206.33M | 211.70M | -217.99M | -125.42M | -311.00M | 149.84M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 3.68B | 3.68B | 4.09B | 4.70B | 5.16B | 5.78B | Total Assets |
| 4.36B | 4.36B | 4.73B | 5.19B | 5.72B | 6.07B | Total Debt |
| 9.60M | 9.60M | 21.90M | 26.86M | 29.44M | 25.38M | Net Debt |
| -157.21M | -157.21M | -486.22M | -2.21B | -2.11B | -1.84B | Total Liabilities |
| 1.56B | 1.56B | 2.21B | 2.55B | 3.05B | 3.19B | Stockholders Equity |
| 2.80B | 2.80B | 2.53B | 2.64B | 2.67B | 2.88B |
| Cash Flow | Free Cash Flow | ||||
| -402.35M | -425.24M | -537.49M | -561.71M | -518.65M | 3.16B | Operating Cash Flow |
| -317.96M | -405.97M | -500.54M | -503.83M | -427.34M | 3.21B | Investing Cash Flow |
| 219.09M | 71.19M | -1.25B | 541.24M | 757.29M | -3.76B | Financing Cash Flow |
| -4.51M | -5.00M | -1.49M | -3.88M | 22.04M | 1.34B |
Galapagos Technical Analysis
Negative
25.99
Price Trends
25.26
Positive
26.41
Negative
26.84
Negative
Market Momentum
0.31
Positive
52.81
Neutral
38.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GLPG, the sentiment is Negative. The current price of 25.99 is below the 20-day moving average (MA) of 26.22, above the 50-day MA of 25.26, and below the 200-day MA of 26.84, indicating a neutral trend. The MACD of 0.31 indicates Positive momentum. The RSI at 52.81 is Neutral, neither overbought nor oversold. The STOCH value of 38.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GLPG.
Galapagos Risk Analysis
Galapagos disclosed 79 risk factors in its most recent earnings report. Galapagos reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Galapagos Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $75.38B | 17.99 | 15.95% | 0.13% | 8.27% | 10.35% | |
78 Outperform | $13.46B | 32.10 | 8.05% | ― | 17.35% | 151.40% | |
68 Neutral | $10.87B | 33.12 | 14.16% | ― | 24.81% | 33.67% | |
64 Neutral | $127.22B | ― | -3.15% | ― | 11.64% | -114.72% | |
60 Neutral | $13.11B | 249.67 | 0.76% | ― | 14.76% | -88.32% | |
52 Neutral | $1.74B | 21.71 | 7.21% | ― | ― | ― | |
49 Neutral | $6.84B | 0.05 | -53.14% | 2.48% | 24.49% | -3.26% |
* Healthcare Sector Average
Performance Comparison
GLPG
Galapagos
25.99
-7.98
-23.49%
BMRN
BioMarin Pharmaceutical
70.60
-13.27
-15.82%
INCY
Incyte
67.71
9.34
16.00%
NBIX
Neurocrine
108.99
-30.11
-21.65%
REGN
Regeneron
680.61
-282.62
-29.34%
VRTX
Vertex Pharmaceuticals
502.92
95.23
23.36%
Galapagos Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: 4.08% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant advancements in cell therapy and strategic initiatives, such as the separation into two entities and key partnerships. However, challenges in manufacturing setup, deprioritization of certain programs, and workforce reductions were noted. The overall sentiment balances between positive strategic steps and the challenges faced.Highlights
Advancement of GLPG5101 CD19 CAR-T Program
Galapagos made significant progress in advancing their flagship GLPG5101 CD19 CAR-T clinical development program, receiving FDA's IND clearance to begin clinical studies in the U.S. The program showed promising results in the ATALANTA study, with high overall and complete response rates in refractory/relapsed lymphomas.
Strategic Partnerships and Collaborations
Galapagos executed key partnerships with companies like Lonza, Thermo Fisher, and Adaptimmune to support their cell therapy goals. These partnerships aim to enhance their decentralized manufacturing platform and expand therapeutic applications.
Separation into Two Entities
Galapagos announced plans to separate into two publicly-traded entities, Galapagos and SpinCo. SpinCo will focus on building a pipeline of innovative medicines through transformational transactions, while Galapagos will concentrate on accelerating global oncology leadership.
Financial Performance and Cash Position
Galapagos reported a net profit of €74 million for 2024, driven by fair value adjustments, currency exchange, and interest income. The company ended the year with approximately €3.3 billion in cash.
Lowlights
Deprioritization of GLPG5201
Galapagos decided to deprioritize activities related to GLPG5201, their second CD19 CAR-T candidate, to focus resources on the more promising GLPG5101 program.
Challenges in Manufacturing and Regulatory Delays
There were procedural and operational delays in starting the ATALANTA clinical trial in the U.S. The complexity of setting up a decentralized manufacturing network added to the challenges.
Strategic Restructuring and Workforce Reduction
As part of their strategic focus on cell therapy, Galapagos announced a restructuring that will reduce their workforce by 40% to align their resources and reduce cash burn.
Company Guidance
During the Galapagos Full Year 2024 Financial Results and Business Update Conference Call, the company provided comprehensive guidance on their strategic direction and financial outlook. Galapagos reported total revenues of €276 million for the year, with research and development expenses at €335 million, marking a 39% increase due to expansion in oncology CAR-T. The company ended the year with approximately €3.3 billion in cash and a cash burn of €293 million, excluding business development. Key strategic initiatives include advancing their flagship CD19 CAR-T program, GLPG5101, with plans to start pivotal studies in 2026 and aim for first approval by 2028. To streamline operations, Galapagos announced the separation into two publicly-traded entities: Galapagos, focusing on cell therapy in oncology, and SpinCo, targeting innovative medicines through partnerships. Galapagos will capitalize on a decentralized manufacturing platform, projecting a cash runway to 2028 with an annual burn rate between €175 million and €225 million. Meanwhile, SpinCo will be capitalized with approximately €2.45 billion to pursue high-quality biotech assets.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.