Galapagos: Revenue Down 91% in Q1, Operating Loss Reduced
Galapagos has revealed its Q1 2026 results, marked by a significant contraction in revenue and operational expenses. The company, which is renaming itself to Lakefront Biotherapeutics, relies on a strategic alliance with Gilead around the Ouro immunology portfolio to preserve its financial independence and potential for external growth.
Revenue Down 91%, Reduced Expenses
Total revenue for the first quarter of 2026 amounted to 6.5 million euros, down 91% from 75.0 million euros in the same period of 2025. This contraction is primarily due to the drop in partnership revenues, which fell from 61.2 million euros to 1.6 million euros, due to the completion of the recognition of exclusive access rights granted to Gilead for molecule discovery, fully recorded by the end of 2025. Product revenues (Jyseleca) amounted to 4.9 million euros compared to 13.8 million euros a year earlier. Concurrently, R&D costs plunged by 83%, from 182.7 million euros to 31.0 million euros, while sales and administrative expenses contracted by 19%, from 43.8 to 35.5 million euros. This reduction in expenses stems from the restructuring strategy launched in January 2025, which generated exceptional expenses of 111 million euros in Q1 2025 (severance payments, contract terminations, asset impairments).
Expected Cash Position Around 2 Billion Euros by End of 2026 After Ouro Investment
Galapagos recorded an operating loss of 63.7 million euros in the first quarter of 2026, compared to a loss of 158.7 million euros a year earlier. This improvement reflects the normalization of expenses after the exceptional adjustments of 2025. However, the company reported a net profit of 14.5 million euros (compared to a loss of 153.4 million euros in Q1 2025), driven by foreign exchange gains and latent gains of 64.3 million euros on its financial investments, as well as net financial income of 77.7 million euros. These accounting results mask an operational cash consumption of 77.9 million euros over the quarter. Gross cash (cash and financial investments) stood at 2.98 billion euros on March 31, 2026, slightly down from 3.0 billion euros at the end of 2025.
Expected Cash Position Around 2 Billion Euros by End of 2026 After Ouro Investment
Galapagos estimates its end-of-2026 cash position to be around 2.0 billion euros after absorbing strategic investments. As part of this collaboration related to the planned acquisition of Ouro Medicines by Gilead, Galapagos will participate in financing the operation: its initial payment amounts to 837.5 million dollars, approximately 713 million euros, with an additional 60 to 75 million euros in expenses in 2026, including transaction fees and operational costs. The reduction in overall burn allows Lakefront to retain flexibility: after this transaction, it could allocate up to 500 million dollars, approximately 425 million euros, to independent business development operations from Gilead. This amount includes up to 150 million dollars, approximately 128 million euros, that could be used for a possible share buyback, subject to applicable restrictions. The restructuring of CAR-T cell therapy activities will generate unique costs estimated at 125 to 175 million euros in 2026, with completion expected before the end of September 2026.
