Galapagos to Raise Capital Via a Private Placement of New Shares

Galapagos NV has announced the launch of a private placement of new shares to institutional investors for a targeted amount of €40 million.

The Company may extend this amount but will in no event place in excess of 10% of the current number of outstanding shares (i.e. no more than 2,696,831 new shares will be issued).

Jefferies International Limited and Kempen & Co. will be acting as Joint Global Coordinators and Joint Bookrunners for the offering.

The Board of Directors of Galapagos has decided to cancel the preferential subscription right of the existing shareholders in connection with the contemplated issuance of shares, which will take place within the limits of the authorized capital.

The new shares will be offered through an accelerated bookbuild offering to qualified and other eligible investors.

The new shares are scheduled to be admitted to listing on NYSE Euronext in the week of 22 April 2013. The offering will start on 24 April at CET.

Galapagos has asked the Financial Services and Markets Authority (FSMA) to suspend trading of its shares on NYSE Euronext Brussels and Amsterdam and it is expected that trading of the Galapagos shares will be suspended until shortly after publication of the result of the bookbuild offering.

"Galapagos is developing novel mode of action drugs. Our pipeline is maturing, and we now have two JAK1 selective molecules in Phase 2 in three inflammation conditions, a GPR43 inhibitor in Phase 2 in ulcerative colitis, and are expecting the start of multiple Phase 1 studies in a number of different diseases over the next 18 months. In addition, we have a large number of discovery programs that are moving towards clinical development," said Onno van de Stolpe, 3.10 CEO of Galapagos.

Stolpe continued, "Our business model supports financing of our operations beyond AbbVie's licensing decision on GLPG0634 in early 2015. With this offering, Galapagos aims to build a war chest to strengthen the pipeline further, whether that be by keeping attractive programs in house longer, making acquisitions, or pursuing in-licensing opportunities."