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GALAPAGOS

Analysis of Galapagos share price

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Elements that can influence the price of this asset:

Analysis N°1

Of course, we will have to keep a close eye on the development of the pipeline and its diversification with the studies conducted on promising new treatment candidates and the various results of clinical trials in different phases. Of particular note here are the trials conducted on the group's flagship products such as Filgotinib for the treatment of rheumatoid arthritis or Crohn's disease and GLPG1205, which targets inflammatory diseases of the small intestine in general.

Analysis N°2

Another important element to be monitored as part of this fundamental analysis concerns the positioning of this company internationally. We will therefore follow the research partnerships set up by the group and the creation of new research units in different countries.

Analysis N°3

Of course, you should also keep an eye on the financial health of the company with data on its market capitalization and cash flow. Of course, the costs of research and development and their weight in the company's financial results will be taken into account.

Analysis N°4

The forecasts and advice of analysts specializing in the biotech sector also often carry a lot of weight in the medium and long-term direction of this stock. You should therefore keep a close eye on this data.

Analysis N°5

Finally, we will of course also keep a close eye on the direct competition of the Galapagos company with all the news and advances made by the two major companies that we will present below and that carry out research on the same segments as this group.

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General presentation of Galapagos

We now offer you our help to better understand the Galapagos company and how it may evolve in the coming years. A good knowledge of the activities of this group and its sources of profit will indeed enable you to anticipate its future stakes, its threats and its opportunities.

The Galapagos Group NV is a Dutch company active in the biotechnology sector. More specifically, the company specializes in the research and development of drugs based on new targets discovered in primary human cells and subsequently validated.

To better understand the activities of this group, it is possible to divide them into several categories according to the share of turnover they generate and in this way:

  • Drug research and development activities alone account for 98.8% of the Group's sales, with several products currently in various stages of clinical trials.
  • The remaining 1.2% of turnover comes from ancillary activities.

It is also interesting to know the geographical distribution of this company's revenues. For example, Galapagos currently generates only 5.8% of its revenues in Europe and 94.2% in North America.

Analysis of Galapagos share price
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The major competitors of Galapagos

We will now look at the competitive environment of the Galapagos group with a presentation of its main opponents on the market. Here we have selected the two biotech companies whose research focuses on drugs similar to those tested by the Dutch biotech.

Vertex Pharmaceuticals 

This American biotechnology company has existed since 1989 and is listed on the American stock market and on the Nasdaq 100 stock market index. It produces Ivacaftor for the treatment of cystic fibrosis and Telaprevir for the treatment of hepatitis C. Ivacaftor is thus successfully indicated for a rare form of cystic fibrosis, but not for its most common form. It is also known as one of the most expensive treatments in the world, costing nearly 220,000 euros per year per patient.

AbbVie 

Finally, the second most serious competitor to Galapagos is the American group AbbVie, which also specialises in pharmaceutical research. Abbvie is responsible for the research and development of therapeutic drugs for the treatment of rheumatoid arthritis, psoriasis, Crohn's disease, thyroid disease, Parkinson's disease, HIV, complications of cystic fibrosis, low testosterone levels and complications associated with chronic kidney disease.


The major partners of Galapagos

Let's now discover two major strategic partnerships that the Galapagos Group has put in place over the past few years. These alliances are indeed important because they often allow for significant volatility in the market trends of this stock.

Pharnext

First of all, let's talk about the partnership signed by Galapagos with Pharnext, a French biopharmaceutical company developing an advanced portfolio of products in the field of neurodegenerative diseases. This partnership is a research and development partnership aimed at creating a new pipeline of synergistic drug combinations covering a wide range of indications. The partnership therefore builds on the research capabilities of both companies and leverages Pharnext's disruptive technology platform, Pleotherapie, which has already discovered and patented low-dose repositioned synergistic drug combinations in new indications and aims to accelerate the development of more effective and safe treatments that address unmet medical needs.

Gilead 

Another partnership, financial this time, was signed with the Gilead group, which will pay 3.95 billion dollars to Galapagos and will devote 1.1 billion dollars to the purchase of shares in this company. Thus, Gilead will pay an investment of 140.59 per share and increase its stake in the company from 12.3% to 22%. This price per share represents a 10% premium over the closing price of 128.15 euros just before this announcement. This partnership between Gilead and Galapagos is the second of its kind, as a previous agreement worth $2 billion was signed in 2015.

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Positive factors for Galapagos shares
The factors in favour of a rise in the Galapagos share price:

The strengths of the Galapagos stock and this company are:

  • The scientific strategies and objectives of the group that are most often effective.
  • The good progress of some of its flagship products, some of which are in the validation phase.
  • The group's international presence, particularly its strong presence in the North American market.
  • The quality of its team of high-level researchers.
  • The partnerships set up by the company are particularly solid and useful.
  • Finally, the financial health of this biotech is excellent, which reassures investors.
Negative factors for Galapagos shares
The factors in favour of a drop in the Galapagos share price:

As far as the weak points of this value are concerned, the following can be noted:

  • Many of the group's projects are still far from being completed, which could lead to unpleasant surprises.
  • Finally, the competition is particularly active with promising results on similar or similar treatments.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

How has the Galapagos share performed over 5 years?

During the last five years, and despite the fact that this Dutch company has not paid any dividend to its shareholders, we can observe a good performance of this stock on the stock exchange. In fact, the five-year performance of this stock has reached a total increase of 508.59%. In the last year alone, i.e. 2019, the stock has also achieved a major performance with +96.68%.

When was Galapagos founded and listed?

Galapagos Genomics NV was founded in 1999. It was a joint venture between Crucell and Tibotec. The company was subsequently renamed Galapagos NV and was listed on the Euronext Amsterdam stock exchange in May 2005. The share price is still quoted continuously and in real time on compartment A of this European financial market.

What drugs are being tested by Galapagos?

Several drug candidates are currently being tested by Galapagos. These include Filgotinib for the treatment of rheumatoid arthritis and Crohn's disease, GLPG1205 for the treatment of inflammatory bowel disease, GLPG0778 and GLPG0555 for the treatment of systemic lupus erythematosus, psoriasis and ulcerative colitis, and GLPG 3221 for the treatment of cystic fibrosis.

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