Lakefront Biotherapeutics

Total net revenues were EUR 6.5 million in Q1 2026 versus EUR 75 million in Q1 2025. Revenue was mainly EUR 4.9 million of supply revenues from Jyseleca inventory sales to Alfasigma and EUR 1.6 million of collaboration revenues from Gilead royalties. R&D expenses decreased to EUR 31 million, operating loss improved to EUR 63.7 million from EUR 158.7 million a year ago, and net financial income was EUR 77.7 million, leading to net profit of EUR 14.5 million versus a net loss of EUR 153.4 million in Q1 2025. Cash and financial investments were EUR 2,982.2 million at March 31, 2026. For 2026, management expects EUR 60 million to EUR 75 million of Ouro-related cash expenditures, plus approximately EUR 713 million upfront payment, for total Ouro-related cash expenditures of EUR 775 million to EUR 790 million; one-time cell therapy wind-down cash costs are expected to be EUR 125 million to EUR 175 million, and year-end cash is expected to be EUR 1.975 billion to EUR 2.05 billion.

Henry Gosebruch framed the quarter as the start of a broader transformation rather than an incremental update. He emphasized a rebuilt management team and board, a repositioned portfolio, and the shift to Lakefront Biotherapeutics, saying the company is now focused on disciplined capital allocation, business development, and long-term sustainable value. On gamgertamig, he described the asset as a potentially first- and best-in-class program with multibillion-dollar potential and said the team believes the initial rare autoimmune indications give it a speed-to-market advantage.

Aaron Cox highlighted that the revised Gilead-related terms are a major financial flexibility event, saying participation was far above the prior USD 150 million expectation under the legacy agreement and that EUR 500 million is now unlocked for broader use beyond the Ouro investment. He also noted that up to EUR 150 million of that amount may be used for share repurchases, subject to limitations, and said shareholders already approved a buyback authorization. On the quarter, he cited EUR 6.5 million of revenue, EUR 31 million of R&D expense, EUR 63.7 million of operating loss, EUR 77.7 million of net financial income, and EUR 2,982.2 million of cash and investments; he added that the company remains robustly funded and expects to retain a majority of current cash even after gamgertamig-related spend until first approval.

Analysts pressed for detail on gamgertamig’s differentiation, the criteria for moving into registrational studies, and how Galapagos will prioritize indications. Management said the key profile is profound B-cell depletion with a dosing schedule that lowers CRS risk and keeps depletion duration short enough to reduce infection risk and the need for IVIG; they expect to be comfortable with Phase III doses by 2027. They also said indication selection will balance mechanistic rationale, unmet need, feasibility, and the ability to show broad potential, while noting the current studies are relatively small and capital efficient. Another question focused on whether Galapagos will keep doing business development; Henry said the hurdle for the next deal is very high because the company is busy executing the current portfolio and has no rush to do another BD deal.