RBC Expects Business Development To Unlock This Pharma Stock's Balance Sheet Value

RBC Capital Markets views Galapagos' NV GLPG Q1 Jyseleca revenues in line as the story focuses on whether new leadership can unlock value from GLPG's ample balance sheet.
Jyseleca's Q1 sales reached €14.4 million, with total sales up 20% Y/Y to €136.3 million.
The company held a cash balance of €4.64 billion, with cash burn guidance of €450-€490 million in FY22.
Business Development primarily involves deals or collaborations around early-stage assets rather than later-stage or large acquisitions and openness to indications outside of areas GLPG has worked historically.
RBC senses a collaborative tone towards partner Gilead Sciences Inc GILD, though it believes the deal structure between the parties may need some tuning for optimal value creation.
With the strategic review of the internal and external pipeline still evolving, the analysts expect shares to trade in line.
The analysts raised the price target to $62 from $60 on model updates.
Price Action: GLPG shares are down 5.38% at $56.45 during the market session on the last check Monday.

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