Lakefront (formerly Galapagos) returns to profitability in H1
Lakefront Biotherapeutics (formerly Galapagos) published its first-half results on August 10, 2026. The Belgian group returned to net profitability of €16.6 million, compared to a loss of €259.1 million a year earlier, a shift primarily driven by financial items and a sharp decline in research and development expenses.
Beyond this turnaround in results, the period was marked by the completion of the acquisition of Ouro Medicines with Gilead Sciences and by cash and equivalents reduced to €2,239.5 million following a €733.5 million outlay related to this transaction.
Net income of €16.6 million, supported by lower charges and financial results
Over the first six months of 2026, total net revenues stood at €18.6 million, compared to €140.3 million a year earlier (a decline of 87%). This comparison includes, in the first half of 2025, recognition of €115.1 million in revenues linked to exclusive access rights granted to Gilead on the drug discovery platform, with the balance fully recognized at the end of 2025.
The operating loss from continuing activities narrowed to €107.2 million, compared to €215.7 million in the first half of 2025. R&D expenses fell to €56.5 million (versus €278.0 million), and general, administrative and commercial expenses to €58.0 million (versus €74.5 million). The comparison is affected by the strategic reorganization of 2025, which had a negative impact of €131.6 million on the previous year's results (severance payments, early termination of collaborations and impairments).
Net financial results came in positive at €123.2 million, compared to a loss of €45.0 million a year earlier, notably including €52.4 million in positive fair value changes of financial investments and €38.8 million in unrealized foreign exchange gains. Net income from continuing activities thus stood at €15.8 million, and total net income at €16.6 million, representing earnings per share of €0.25 (compared to a loss of €3.93 per share in the first half of 2025).
The Ouro Medicines acquisition refocuses the group on gamgertamig
In June 2026, Lakefront and Gilead Sciences completed the acquisition of Ouro Medicines. The two companies are collaborating on the development of gamgertamig, a BCMAxCD3 T-cell engager intended for autoimmune diseases, presented as a potential first-in-class candidate in its category.
Gamgertamig obtained Fast Track and Orphan Drug designations from the U.S. FDA for the treatment of autoimmune hemolytic anemia and immune thrombocytopenia, and entry into registrational studies is planned for 2027. Phase 1b trials are ongoing in Australia, the United States, New Zealand, the Czech Republic and Japan, and an expansion of the clinical program is anticipated for 2027.
The group also indicated that the phase 2 GALACELA study evaluating GLPG3667 in systemic lupus erythematosus did not meet its primary endpoint at 32 weeks or the comparable secondary endpoint at 48 weeks, while maintaining a favorable safety profile. Lakefront is evaluating strategic options for this program. Finally, the phased discontinuation of cell therapy activities initiated in January 2026 is expected to be largely completed by the end of the third quarter of 2026.
Cash position target maintained at around €2 billion for end of 2026
The group maintained its target for cash and financial investments at the end of 2026, expected in a range of €1.975 billion to €2.050 billion, or approximately €2 billion. This forecast now incorporates the €50 million share buyback program announced on June 9, 2026, which was not included in the previous range and is to be completed by December 31, 2026 at the latest. As of June 30, 241,904 shares had been repurchased at an average price of €25.1261.
The assumptions are based on an EUR/USD exchange rate of 1.175, consistent with end-2025, whereas the actual rate as of June 30, 2026 was 1.1394. Management also indicates plans to maintain at least €1.6 billion in available cash to finance additional strategic transactions and other capital allocation priorities, once the portfolio is funded through the first approval of gamgertamig.
As of June 30, 2026, cash and financial investments totaled €2,239.5 million, compared to €2,998.0 million at December 31, 2025, representing a net decrease of €758.5 million over the half-year. This is primarily explained by €733.5 million in outflows related to the purchase of Ouro Medicines, operational cash consumption of €63.6 million, and favorable foreign exchange and fair value effects of €38.5 million.
