GLPG-5101

Pictured: Healthcare worker carrying an IV bag/iStock, Sergey Mikheev Belgian biotech Galapagos announced on Wednesday that it is enlisting Blood Centers of America in its strategic goal of decentralizing the manufacturing of CAR-T cell therapeutics in the United States. The partners did not disclose the specific financial details of the deal but said it would give Galapagos access to Blood Centers of America’s (BCA) more than 50 community blood centers across 43 states, enabling the biotech to manufacture its CAR-T cancer therapies closer to treatment centers. The agreement will also allow Galapagos to deploy its decentralized CAR-T manufacturing platform in the U.S., with the ability to deliver “fresh, fit cells with a vein-to-vein time of seven days,” according to the announcement. Galapagos CEO Paul Stoffels in a statement called Wednesday’s agreement a “major milestone” for the biotech’s expansion in the U.S., enabling it to “establish centers for support of our pivotal studies, with the potential to be used for commercial introduction.” The partnership will also allow Galapagos to “efficiently scale up decentralized CAR-T therapy manufacturing” by leveraging BCA’s extensive nationwide network of blood centers, whose existing infrastructure will help “harmonize operations” across the U.S. Through the collaboration, Galapagos is looking to solve many of what it calls the “limitations” of currently available CAR-T therapies and give physicians more control over treatment while also improving patient experience. Galapagos said it will use BCA’s apheresis capacities as needed. The network of blood centers will also help support site initiations and onboarding, according to the announcement, which will speed up Galapagos’ campaign to decentralize its CAR-T therapies and ensure quality. Galapagos is currently working on three clinical CAR-T programs. The most mature of these is GLPG5101, which is a CD19-directed therapy currently in Phase II for relapsed or refractory non-Hodgkin lymphoma. It is running another CD19 program called GLPG5201, which is in Phase I for relapsed or refractory chronic lymphocytic leukemia and Richter transformation. The third program is GLPG5301, a BCMA-directed CAR-T therapy undergoing Phase I assessment for relapsed or refractory multiple myeloma. The BCA deal follows Galapagos’ previous agreement with Thermo Fisher Scientific, announced in January 2024, for manufacturing and logistics support for the biotech’s hemato-oncology programs in the San Francisco area. In November 2023, Galapagos entered into a similar but separate agreement with Landmark Bio, which will serve as Galapagos’ strategic point-of-care manufacturing partner in Boston. Tristan Manalac is an independent science writer based in Metro Manila, Philippines. Reach out to him on LinkedIn or email him at tristan@tristanmanalac.com or tristan.manalac@biospace.com.

Advanced potentially best-in-class cell therapy and small molecule R&D pipeline comprising four clinical assets and >15 discovery programs in oncology and immunologyExecuted agreements with BridGene Biosciences and Thermo Fisher Scientific, and investment in Frontier MedicinesTransferred Jyseleca® business to Alfasigma S.p.A., freeing up resources to invest in growth areasGroup net revenues in the first quarter of €100 millionCash and current financial investments of €3.6 billion on 31 March 2024Reconfirmed 2024 cash burni guidance of €280 million to €320 million, not including potential business development opportunities Webcast presentation with management on 3 May 2024, at 14:00 CET / 8:00 am ET, www.glpg.com Mechelen, Belgium; 2 May 2024, 22:01 CET; regulated information – Galapagos NV (Euronext & NASDAQ: GLPG) today announced its first quarter 2024 financial results and provided a business update and outlook for the remainder of 2024. “We are moving forward with a renewed focus, a differentiated and expanding R&D pipeline, and competitive technology platforms to bring innovation to patients around the world. We continue to build a strong team of global leaders and we expanded our U.S. footprint,” said Dr. Paul Stoffels1, CEO and Chairman of the Board of Directors of Galapagos. “As we look forward to the year ahead, we strive to make important progress in our clinical programs, achieving regulatory milestones to initiate clinical development of our CAR-T programs in the U.S., and expanding our decentralized CAR-T network in the U.S. and Europe. In parallel, we will continue to build our early-stage pipeline of cell therapy and small molecule investigational medicines in oncology and immunology, both internally and through external partnerships.” Thad Huston, CFO and COO of Galapagos, concluded: “We are committed to investing in our internal R&D pipeline, while we continue to actively pursue business development opportunities. We are broadening our oncology and immunology portfolio and will capitalize on opportunities that are aligned with our strategic objectives.” First quarter 2024 and recent business update At the Annual and Extraordinary Shareholders’ Meetings held on 30 April 2024, all proposed resolutions were approved (see: press release of 30 April 2024). Presented our innovative decentralized CAR-T manufacturing and 7-day vein-to-vein approach to hematological cancer care at the EBMT-EHA and EBMT annual meetings with new preliminary translational and previously published encouraging clinical data of our CD19 CAR-T candidates. The data support the promise of GLPG5101 in relapsed/refractory non-Hodgkin lymphoma (NHL) and GLPG5201 in relapsed/refractory chronic lymphocytic leukemia (CLL) and Richter transformation (RT), in addressing the critical needs of patients facing poor prognosis. Discontinued the development of CD19 CAR-T candidate in refractory systemic lupus erythematosus. Transferred the Jyseleca® business to Alfasigma per 31 January 2024. Signed a strategic collaboration and license agreement with BridGene Biosciences to further strengthen our growing early-stage oncology precision medicine pipeline. Entered into a strategic collaboration agreement with Thermo Fisher Scientific for decentralized CAR-T manufacturing in the San Francisco area.Participated with an investment of $40.0 million in the Series C financing round of precision oncology pioneer Frontier Medicines. Financial performanceFirst quarter 2024 key figures (consolidated)(€ millions, except basic & diluted income per share) Three months ended 31 March % Change 2024 2023 Total net revenues 62.4 58.6 +7% Cost of sales (2.5) - R&D expenses (71.6) (52.5) +36% G&Aii and S&Miii expenses (30.8) (27.1) +14% Other operating income 9.4 6.8 +37% Operating loss (33.1) (14.2) Fair value adjustments and net exchange differences 30.6 (9.7) Net other financial result 25.4 12.5 Income taxes 0.6 0.2 Net profit/loss (-) from continuing operations 23.5 (11.2) Net profit from discontinued operations, net of tax 66.7 34.4 Net profit of the period 90.2 23.2 Basic and diluted earnings per share (€) 1.4 0.4 Current financial investments, cash & cash equivalents 3,557.9 4,005.5 (*) (*) Including €15.4 million of net accrued interest income DETAILS OF THE FINANCIAL RESULTS OF THE FIRST THREE MONTHS OF 2024As a consequence of the transfer of our Jyseleca® business to Alfasigma, the revenues and costs related to Jyseleca® for the first quarter of 2024 are presented separately from the results of our continuing operations in the line ‘Net profit from discontinued operations, net of tax’ in our consolidated income statement. The comparative first quarter of 2023 has been restated accordingly for the presentation of the results related to the Jyseleca® business. Results from our continuing operationsTotal operating loss from continuing operations for the three months ended 31 March 2024 was €33.1 million, compared to an operating loss of €14.2 million for the three months ended 31 March 2023. Total net revenues for the three months ended 31 March 2024 amounted to €62.4 million, compared to €58.6 million for the three months ended 31 March 2023. The revenue recognition related to the exclusive access rights granted to Gilead for our drug discovery platform amounted to €57.6 million for the first three months of both 2024 and 2023. Our deferred income balance at 31 March 2024 includes €1.2 billion allocated to our drug discovery platform that is recognized linearly over the remaining period of our 10-year collaboration. Cost of sales for the three months ended 31 March 2024 amounted to €2.5 million and related to the supply of Jyseleca® to Alfasigma under the transition agreement. The related revenues are booked in total net revenues.R&D expenses in the first three months of 2024 amounted to €71.6 million, compared to €52.5 million for the first three months of 2023. This increase was primarily explained by higher costs for CAR-T and small molecule programs in oncology.G&A and S&M expenses amounted to €30.8 million in the first three months of 2024, compared to €27.1 million in the first three months of 2023. This increase was primarily due to an increase in legal and professional fees, mainly related to business development activities. Other operating income amounted to €9.4 million in the first three months of 2024, compared to €6.8 million for the same period last year. This increase is mainly due to €2.2 million of recharges for transition services to Alfasigma for the months of February and March 2024. Net financial income in the first three months of 2024 amounted to €56.0 million, compared to net financial income of €2.8 million for the first three months of 2023. Fair value adjustments and net currency exchange gains in the first three months of 2024 amounted to €30.6 million, compared to fair value adjustments and net currency exchange losses of €9.7 million for the first three months of 2023, and were primarily attributable to €12.4 million of unrealized currency exchange gains on our cash and cash equivalents and current financial investments at amortized cost in U.S. dollars, and to €17.6 million of positive changes in fair value of current financial investments.Net other financial income in the first three months of 2024 amounted to €25.4 million, compared to net other financial income of €12.5 million for the first three months of 2023, and was primarily attributable to €25.2 million of interest income, which increased significantly due to the increase in interest rates. Net profit from continuing operations for the first three months of 2024 was €23.5 million, compared to a net loss from continuing operations of €11.2 million for the first three months of 2023.Results from discontinued operations (€ millions) Three months ended 31 March % Change 2024 2023 Product net sales 11.3 26.7 -58% Collaboration revenues 26.0 93.6 -72% Total net revenues 37.3 120.3 -69% Cost of sales (1.9) (3.6) -47% R&D expenses (13.4) (51.0) -74% G&A and S&M expenses (9.2) (31.1) -71% Other operating income 53.9 1.5 Operating profit 66.7 36.1 Net financial result 0.1 (1.3) Income taxes (0.1) (0.4) Net profit from discontinued operations 66.7 34.4 Total operating profit from discontinued operations amounted to €66.7 million in the first three months of 2024, compared to an operating profit of €36.1 million in the same period last year. Product net sales of Jyseleca® in Europe were €11.3 million for the first three months of 2024 consisting of sales to customers in January 2024. Product net sales to customers for the first three months of 2023 amounted to €26.7 million. As from 1 February 2024, all economics linked to the sales of Jyseleca® in Europe are to the benefit of Alfasigma.Collaboration revenues for the development of filgotinib with Gilead amounted to €26.0 million for the first three months of 2024, compared to €93.6 million for the same period last year. The sale of the Jyseleca® business to Alfasigma on 31 January 2024 led to the full recognition in revenue of the remaining deferred income related to filgotinib. Cost of sales related to Jyseleca® net sales were €1.9 million for the first three months of 2024. Cost of sales related to Jyseleca® net sales for the first three months of 2023 amounted to €3.6 million. R&D expenses for the development of filgotinib for the first three months of 2024 amounted to €13.4 million, compared to €51.0 million in the first three months of 2023. As from 1 February 2024, all filgotinib development expenses are recharged to Alfasigma.G&A and S&M expenses related to the Jyseleca® business amounted to €9.2 million in the first three months of 2024, compared to €31.1 million in the first three months of 2023. As from 1 February 2024, all remaining G&A and S&M expenses relating to Jyseleca® are recharged to Alfasigma.Other operating income for the first three months of 2024 amounted to €53.9 million (€1.5 million for the same period last year) and comprised €53.2 million related to the preliminary calculation of the gain on the sale of the Jyseleca® business to Alfasigma. This preliminary result at 31 March 2024 of the transaction is considering the following elements: €50.0 million of upfront payment received at closing of the transaction of which €40.0 million was paid on an escrow account. This amount will be kept in escrow for a period of one year after the closing date of 31 January 2024. We gave customary representations and warranties which are capped and limited in time (at 31 March 2024, this €40.0 million is presented as “Escrow account” in our balance sheet).€13.2 million of cash received at closing of the transaction from Alfasigma for preliminary settlement for net cash and working capital and an additional adjustment estimated at €1.1 million related to settlement for completion accounts.€47.0 million of estimated fair value on 31 January 2024 of the future earn-outs payable by Alfasigma to us (the fair value of these future earn-outs at 31 March 2024 is presented on the lines “Non-current contingent consideration receivable” and “Trade and other receivables”).€40.0 million of liability towards Alfasigma on 31 January 2024 for R&D cost contributions of which €5.0 million was paid in the first quarter of 2024 (at 31 March 2024, €35.0 million of liabilities for R&D cost contribution is presented in our balance sheet in “Other non-current liabilities” for €10.0 million and on the line “Trade and other liabilities” for €25.0 million). Net profit from discontinued operations related to Jyseleca® amounted to €66.7 million for the first three months of 2024, compared to a net profit amounting to €34.4 million for the first three months of 2023. Cash, cash equivalents and current financial investments totaled €3,557.9 million as of 31 March 2024, as compared to €3,684.5 million as of 31 December 2023. Total net decrease in cash and cash equivalents and current financial investments amounted to €126.6 million during the first three months of 2024, compared to a net decrease of €88.6 million during the first three months of 2023. This net decrease was composed of (i) €125.2 million of operational cash burn, (ii) €36.9 million for the acquisition of financial assets held at fair value through profit or loss, (iii) €38.7 million of net cash in related to the sale of the Jyseleca® business to Alfasigma of which €40.0 million has been transferred to an escrow account, offset by (iv) €36.8 million of positive exchange rate differences, positive changes in fair value of current financial investments and variation in accrued interest income. Outlook 2024 Financial outlook For the full year 2024, we reconfirm our cash burn guidance of €280 million to €320 million (compared to €414.8 million for the full year 2023), not including future potential business development opportunities. R&D Outlook We are progressing three CAR-T Phase 1/2 studies in hemato-oncology: GLPG5101 in relapsed/refractory NHL; GLPG5201 in relapsed/refractory CLL, and RT; andGLPG5301 in relapsed/refractory multiple myeloma. We are progressing two Phase 2 studies with TYK2 inhibitor GLPG3667, in systemic lupus erythematosus and in dermatomyositis. We plan to file Investigational New Drug applications in the U.S. to progress clinical development of our CAR-T programs in hemato-oncology. We will further upscale our CAR-T network and operations in the U.S. and Europe. Business development We will continue to evaluate business development opportunities that fit our strategy to accelerate and expand our pipeline of potential best-in-class investigational medicines in our therapeutic focus areas of oncology and immunology. Conference call and webcast presentationWe will host a conference call and webcast presentation on 3 May 2024, at 14:00 CET / 8:00 am ET. To participate in the conference call, please register in advance using this link. Dial-in numbers will be provided upon registration. The conference call can be accessed 10 minutes prior to the start of the call by using the conference access information provided in the email received after registration, or by selecting the “call me” feature. The live webcast is available on glpg.com or via the following link. The archived webcast will be available for replay shortly after the close of the call on the investor section of the website. Financial calendar 2024 1 August 202430 October 2024 Half-year 2024 resultsThird quarter 2024 results (webcast: 2 August 2024)(webcast: 31 October 2024) About GalapagosWe are a biotechnology company with operations in Europe and the U.S. dedicated to developing transformational medicines for more years of life and quality of life. Focusing on high unmet medical needs, we synergize compelling science, technology, and collaborative approaches to create a deep pipeline of best-in-class small molecules, CAR-T therapies, and biologics in oncology and immunology. With capabilities from lab to patient, including a decentralized CAR-T manufacturing network, we are committed to challenging the status quo and delivering results for our patients, employees, and shareholders. For additional information, please visit www.glpg.com or follow us on LinkedIn or X (formerly Twitter). For further information, please contact: Media inquiries:Marieke Vermeersch +32 479 490 603 media@glpg.com Jennifer Wilson + 44 7539 359 676media@glpg.com Investor inquiries:Sofie Van Gijsel +1 781 296 1143ir@glpg.comSandra Cauwenberghs +32 495 58 46 63ir@glpg.com Forward-looking statementsThis press release contains forward-looking statements, all of which involve certain risks and uncertainties. These statements are often, but are not always, made through the use of words or phrases such as “believe,” “anticipate,” “expect,” ”intend,” “plan,” “seek,” “upcoming,” “future,” “estimate,” “may,” “will,” “could,” “would,” “potential,” “forward,” “goal,” “next,” “continue,” “should,” “encouraging,” “aim,” “progress,” “remain,” “explore,” “further,” as well as similar expressions. These statements include, but are not limited to, the guidance from management regarding our financial results (including guidance regarding the expected operational use of cash for the fiscal year 2024), statements regarding our regulatory outlook, statements regarding the amount and timing of potential future milestones, and other payments, statements regarding our R&D plans, strategy and outlook, including progress on our oncology or immunology portfolio, our CAR-T-portfolio and our SIKi-portfolio, and potential changes of such plans, statements regarding our pipeline and complementary technology platforms facilitating future growth, statements regarding our regulatory and R&D outlook, statements regarding the expected timing, design and readouts of ongoing and planned clinical trials, including but not limited to (i) GLPG3667 in SLE and DM, (ii) GLPG5101 in rrNHL, (iii) GLPG5201 in rrCLL, and (iv) GLPG5301 in rrMM, statements regarding our commercialization efforts for filgotinib, our product candidates, and any of our future approved products, if any, statements regarding our expectations on commercial sales of any of our product candidates (if approved), statements related to the timing for submission of an Investigational New Drug application and the clinical development of our CAR-T program, and statements related to our portfolio goals and business plans. Galapagos cautions the reader that forward-looking statements are based on our management’s current expectations and beliefs and are not guarantees of future performance. Forward-looking statements may involve known and unknown risks, uncertainties and other factors which might cause our actual results, financial condition and liquidity, performance or achievements, or the industry in which we operate, to be materially different from any historic or future results, financial conditions and liquidity, performance or achievements expressed or implied by such forward-looking statements. In addition, even if Galapagos’ results, performance, financial condition and liquidity, and the development of the industry in which it operates are consistent with such forward-looking statements, they may not be predictive of results or developments in future periods. Such risks include, but are not limited to, the risk that our expectations and management’s guidance regarding our 2024 operating expenses, cash burn and other financial estimates may be incorrect (including because one or more of our assumptions underlying our revenue and expense expectations may not be realized), the risk that ongoing and future clinical trials may not be completed in the currently envisaged timelines or at all, the inherent risks and uncertainties associated with competitive developments, clinical trials, recruitment of patients, product development activities and regulatory approval requirements (including the risk that data from our ongoing and planned clinical research programs in DM, SLE, relapsed/refractory NHL, rrCLL, rrMM and other immunologic and oncologic indications or any other indications or diseases, may not support registration or further development of our product candidates due to safety or efficacy concerns or other reasons), risks related to the acquisitions of CellPoint and AboundBio, including the risk that we may not achieve the anticipated benefits of the acquisitions of CellPoint and AboundBio, the risk that the preliminary and topline data from the ATALANTA-1, EUPLAGIA-1 and PAPILIO-1-studies may not be reflective of the final data, risks related to our reliance on collaborations with third parties (including, but not limited to, our collaboration partners Gilead, Lonza, BridGene Biosciences and Thermo Fisher Scientific), the risk that the transfer of the Jyseleca® business will not have the currently expected results for our business and results of operations, the risk that our plans with respect to CAR-T may not be achieved on the currently anticipated timeline or at all, the risk that our estimates of the commercial potential of our product candidates or expectations regarding the costs and revenues associated with the commercialization rights may be inaccurate, the risk that we will not be able to continue to execute on our currently contemplated business plan and/or will revise our business plan, the risks related to our strategic transformation, including the risk that we may not achieve the anticipated benefits of such exercise on the currently envisaged timeline or at all. A further list and description of these risks, uncertainties and other risks can be found in our filings and reports with the Securities and Exchange Commission (SEC), including in our most recent annual report on Form 20-F filed with the SEC and our subsequent filings and reports filed with the SEC. Given these risks and uncertainties, the reader is advised not to place any undue reliance on such forward-looking statements. In addition, even if the result of our operations, financial condition and liquidity, or the industry in which we operate are consistent with such forward-looking statements, they may not be predictive of results, performance or achievements in future periods. These forward-looking statements speak only as of the date of publication of this release. We expressly disclaim any obligation to update any such forward-looking statements in this release to reflect any change in our expectations or any change in events, conditions or circumstances, unless specifically required by law or regulation. Addendum Consolidated statements of income and comprehensive income/loss (-) (unaudited) Consolidated income statement Three months ended31 March (thousands of €, except per share data) 2024 2023 Total net revenues 62,432 58,574 Cost of sales (2,548) - Research and development expenses (71,614) (52,559) Sales and marketing expenses (2,907) (1,017) General and administrative expenses (27,881) (26,034) Other operating income 9,387 6,838 Operating loss (33,131) (14,198) Fair value adjustments and net currency exchange differences 30,613 (9,697) Other financial income 25,707 13,358 Other financial expenses (254) (844) Profit/loss (-) before tax 22,935 (11,380) Income taxes 568 185 Net profit/loss (-) from continuing operations 23,503 (11,195) Net profit from discontinued operations, net of tax 66,717 34,402 Net profit 90,220 23,207 Net profit attributable to: Owners of the parent 90,220 23,207 Basic and diluted earnings per share 1.37 0.35 Basic and diluted earnings/loss (-) per share from continuing operations 0.36 (0.17) Consolidated statement of comprehensive income/loss (–) Three months ended31 March (thousands of €) 2024 2023 Net profit 90,220 23,207 Items that will not be reclassified subsequently to profit or loss: Re-measurement of defined benefit obligation 74 - Items that may be reclassified subsequently to profit or loss: Translation differences, arisen from translating foreign activities 79 (59) Realization of translation differences upon sale of foreign operations 4,095 - Other comprehensive income/loss (-), net of income tax 4,248 (59) Total comprehensive income attributable to: Owners of the parent 94,468 23,148 Total comprehensive income attributable to owners of the parent arises from: Continuing operations 23,392 (11,179) Discontinued operations 71,076 34,327 Total comprehensive income, net of income tax 94,468 23,148 Consolidated statements of financial position (unaudited) (thousands of €) 31 March 2024 31 December 2023 Assets Goodwill 69,715 69,557 Intangible assets other than goodwill 125,998 127,906 Property, plant and equipment 125,059 126,321 Deferred tax assets 1,107 1,126 Non-current R&D incentives receivables 144,775 141,252 Non-current contingent consideration receivable 42,739 - Other non-current assets 65,516 29,645 Non-current assets 574,909 495,807 Inventories 80,558 73,978 Trade and other receivables 54,611 28,449 Current R&D incentives receivables 37,436 37,436 Current financial investments 3,484,560 3,517,698 Cash and cash equivalents 73,372 166,803 Escrow account 40,222 - Other current assets 15,711 15,140 Current assets from continuing operations 3,786,470 3,839,504 Assets in disposal group classified as held for sale - 22,085 Total current assets 3,786,470 3,861,589 Total assets 4,361,379 4,357,396 Equity and liabilities Share capital 293,937 293,937 Share premium account 2,736,994 2,736,994 Other reserves (5,530) (5,890) Translation differences 2,687 (1,201) Accumulated losses (133,080) (228,274) Total equity 2,895,008 2,795,566 Retirement benefit liabilities 2,270 2,293 Deferred tax liabilities 22,728 23,607 Non-current lease liabilities 3,837 4,944 Other non-current liabilities 42,887 31,570 Non-current deferred income 1,012,435 1,071,193 Non-current liabilities 1,084,157 1,133,607 Current lease liabilities 4,140 4,652 Trade and other liabilities 145,551 135,201 Current tax payable 62 56 Current deferred income 232,461 256,270 Current liabilities from continuing operations 382,214 396,179 Liabilities directly associated with assets in disposal group classified as held for sale - 32,044 Total current liabilities 382,214 428,223 Total liabilities 1,466,371 1,561,830 Total equity and liabilities 4,361,379 4,357,396 Consolidated cash flow statements (unaudited) Three months ended31 March (thousands of €) 2024 2023 Net profit of the period 90,220 23,207 Adjustment for non-cash transactions (13,367) 34,340 Adjustment for items to disclose separately under operating cash flow (25,638) (9,972) Adjustment for items to disclose under investing and financing cash flows (57,736) (2,426) Change in working capital other than deferred income (46,217) 8,273 Decrease in deferred income (81,974) (150,517) Cash used in operations (134,712) (97,095) Interest paid (432) (2,944) Interest received 13,461 5,823 Corporate taxes paid (751) (651) Net cash flows used in operating activities (122,434) (94,868) Purchase of property, plant and equipment (3,742) (4,264) Purchase of and expenditure in intangible fixed assets (2,520) (20) Purchase of current financial investments (420,158) (1,008,866) Investment income received related to current financial investments 4,653 2,345 Sale of current financial investments 489,651 722,137 Cash out from sale of subsidiaries, net of cash disposed (1,339) - Acquisition of financial assets held at fair value through profit or loss (36,880) - Net cash flows generated from/used in (-) investing activities 29,665 (288,669) Payment of lease liabilities (1,168) (1,960) Proceeds from capital and share premium increases from exercise of subscription rights - 1,770 Net cash flows used in financing activities (1,168) (190) Decrease in cash and cash equivalents (93,937) (383,727) Cash and cash equivalents at beginning of the year 166,810 508,117 Decrease in cash and cash equivalents (93,937) (383,727) Effect of exchange rate differences on cash and cash equivalents 499 (254) Cash and cash equivalents at end of the period 73,372 124,135 Consolidated statements of changes in equity (unaudited) (thousands of €) Share capital Share premium account Translation differences Other reserves Accumulated losses Total On 1 January 2023 293,604 2,735,557 (1,593) (4,853) (496,689) 2,526,026 Net profit 23,207 23,207 Other comprehensive income/loss (-) (111) 52 (59) Total comprehensive income/loss (-) (111) 52 23,207 23,148 Share-based compensation 13,663 13,663 Exercise of subscription rights 333 1,437 1,770 On 31 March 2023 293,937 2,736,994 (1,704) (4,801) (459,821) 2,564,604 On 1 January 2024 293,937 2,736,994 (1,201) (5,890) (228,274) 2,795,566 Net profit 90,220 90,220 Other comprehensive income 3,888 360 4,248 Total comprehensive income 3,888 360 90,220 94,468 Share-based compensation 4,974 4,974 On 31 March 2024 293,937 2,736,994 2,687 (5,530) (133,080) 2,895,008 1 Throughout this press release, ‘Dr. Paul Stoffels’ should be read as ‘Dr. Paul Stoffels, acting via Stoffels IMC BV’ i The operational cash burn (or operational cash flow if this liquidity measure is positive) is equal to the increase or decrease in our cash and cash equivalents (excluding the effect of exchange rate differences on cash and cash equivalents), minus:• the net proceeds, if any, from share capital and share premium increases included in the net cash flows generated from/used in (-) financing activities• the net proceeds or cash used, if any, related to the acquisitions or disposals of businesses; the acquisition of financial assets held at fair value through profit or loss; the movement in restricted cash and movement in current financial investments, if any, the cash advances and loans given to third parties, if any, included in the net cash flows generated from/used in (-) investing activities• the cash used for other liabilities related to the acquisition of businesses, if any, included in the net cash flows generated from/used in (-) operating activities.This alternative liquidity measure is in our view an important metric for a biotech company in the development stage. The operational cash burn for the first three months of 2024 amounted to €125.2 million and can be reconciled to our cash flow statement by considering the decrease in cash and cash equivalents of €93.9 million, adjusted by (i) the net sale of current financial investments amounting to €69.5 million, (ii) the cash-out related to the sale of subsidiaries of €1.3 million, and (iii) the acquisition of financial assets held at fair value through profit or loss of €36.9 million.ii General and administrativeiii Sales and marketing Attachment Galapagos reports first quarter 2024 financial results