Lakefront Biotherapeutics returns to profit over nine months thanks to its financial result
Lakefront Biotherapeutics reported a net profit of €13.9 million for the first nine months of the financial year on November 11, 2026, compared with a net loss of €461.3 million a year earlier. This return to positive territory is due to its financial result: net financial income of €156.1 million more than offset an operating loss of €148.4 million, which was reduced by 68% year on year.
At the same time, revenues fell 88% to €26.1 million, following the end of revenues linked to the agreement with Gilead. The Mechelen-based biotech also announced a second share buyback programme of €50 million and set its year-end cash guidance at between €2.0 and €2.05 billion.
Positive net income driven by financial and currency gains
Net fair value adjustments and exchange rate differences reached €119.0 million, compared with a charge of €50.5 million a year earlier. They mainly stem from €68.3 million in positive fair value changes on financial investments and €42.0 million in unrealised exchange gains on dollar-denominated holdings.
The group held $2,150.2 million at September 30, which exposes it to fluctuations in the euro-dollar exchange rate as long as its functional currency remains the euro. Lakefront also plans to switch to the dollar as its presentation currency for the 2026 financial year, and then as its functional currency with effect from January 1, 2027.
Excluding currency effects, fair value gains and interest income fell to €68.2 million, compared with €77.2 million the previous year. Profit from continuing operations came to €7.5 million, supplemented by €6.4 million from discontinued operations related to Jyseleca, resulting in earnings per share of €0.21, compared with a loss of €7.00 per share.
Charges fall following the 2025 restructuring, as do revenues
Collaboration revenues fell 95% to €8.4 million. In the first nine months of 2025, they included €172.6 million linked to the exclusive access rights granted to Gilead over the research platform, whose deferred revenues were fully recognised at the end of 2025.
Jyseleca supply revenues from Alfasigma fell 40% to €17.7 million, for a nearly equivalent cost of sales of €17.6 million.
The reduction in the operating loss is primarily due to the comparison base: 2025 included a €204.8 million impairment on cell therapy and €135.5 million in reorganisation costs.
Research and development expenses fell 77% to €82.5 million, reflecting these non-recurring charges and lower spending on CAR-T programmes.
Selling, general and administrative expenses decreased 30% to €76.6 million, mainly due to lower personnel costs. The withdrawal from cell therapy, announced in January 2026, is now presented as largely completed.
The acquisition of Ouro Medicines accounts for most of the decline in cash
Cash and financial investments fell by €814.9 million since the end of 2025, to €2,183.1 million at September 30. The acquisition of Ouro Medicines accounts for €740.3 million, operating cash consumption for €97.2 million and share buybacks for €40.8 million. In return, intangible assets rose from €0.8 million to €754.3 million.
The first €50 million buyback programme ended on October 16, 2026, with 1.99 million shares acquired at an average price of €25.19.
Chief Financial Officer Aaron Cox stated that “our guidance for cash and financial investments at the end of 2026 is at least 2 billion euros”, including the second buyback programme, whereas the previous range did not include it.
Lakefront plans to retain at least €1.6 billion for other strategic transactions after funding its portfolio through to a first authorisation of Gamgertamig. These forecasts assume a rate of $1.175 per euro, compared with 1.1355 at September 30.
Gamgertamig, which has received orphan drug designation from the FDA for pemphigus, is expected to enter registration studies in 2027, while the GLPG3667 programme has been discontinued. The result for the period therefore rests on the return on a cash position, part of which was converted into research assets with the Ouro acquisition.
