Galapagos beat our expectation

All,

Galapagos clearly beat our expectations in Q418. 

While the Enexio business cratered a little less dramatically than we had assumed, Kelvion showed some good growth. 

The company arrives at a heavily adjusted EBITDA of 73m and therefore leverage of “only” 8.8x. 

Cash is at a meagre E51m, but only E20m of that are actually available. That’s however considerably better than we had feared.

Thoughts:

While the development - in particular at Kelvion - is positive, we are unlikely to jump into the name before hearing of more concrete plans as to what will be done to Enexio. The presentation does not include specifics on the matter, but perhaps we’ll hear of something soon.

Wolfgang