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BioFocus revenue surge boosts Galapagos

Written by News Desk
Thursday, 06 March 2008
Galapagos CEO, Onno van de Stolpe A £10m revenues increase by the East of England service division of Belgian’s Galapagos NV has underpinned major group growth for the global drug discovery outfit. A Galapagos trading update said the company expects revenues for 2007 to exceed the high end of its guidance of €64m (£48m), most of which will come from Gt Chesterford-based BioFocus DPI, whose own revenues increased 39 per cent over 2006. Galapagos will report segment revenues for BioFocus DPI of €48.5m (£36.6m) and a segment loss of €4.9m (£3.7m). In 2007, Galapagos received €4.4m (£3.3m) in cash through capital increases while strong cash flow in the second half of the year was related to upfront payments received from its alliance partners Janssen Pharmaceutica, GSK, and Eli Lilly, contributing to a €49m (£37m) cash balance at year end. BioFocus DPI still reported a segment loss before exceptional costs mainly due to lower than expected sales in biology services and compound libraries as well as to the effect of site consolidations. “BioFocus DPI revenues came in below budget and caused the service division to report a loss,” said CEO, Onno van de Stolpe. “We believe the restructuring implemented last year will strengthen the leading position of BioFocus DPI in drug discovery services and show an improved performance in 2008.” BioFocus integrated sites in Cambridge, moved the Heidelberg operations into the Basel site and relocated the Leiden activities to reduce the cost base and improve efficiencies. While medicinal chemistry services exceeded expectations, the biology revenues were below budget, partly due to the site reorganisations. The order book for biology services has since shown improvement; management is confident the restructuring and consolidation will start to pay off in 2008, bringing the division back into profitability. Set as favorite Bookmark Email This Hits: 371 Trackback(0) TrackBack URI for this entry Comments (0) Subscribe to this comment's feed Show/Hide comments Write comment Show/Hide comment form This content has been locked. You can no longer post any comment.