Company: GLPG
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001558370-25-003806
Chunk: 360

Company: GALAPAGOS NV
Filing Date: 2025-03-27
Form: 20-F
Item: Item 16I
Chunk 360
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 agreement, we agreed to contribute € 40.0 million to AlfaSigma for Jyseleca® related development activities. We concluded that the transition agreement was negotiated...
As part of the transition services, we continued to sell the products to end-customers in certain countries during a transition period. We collected the cash from the customers, but transferred...
Sale of inventories to Alfasigma: we concluded that we are still in full control of our inventories and therefore present the revenues and cost of sales relating to the sale of inventories (API...
Key sources of estimation uncertainty
The following are the key sources of estimation uncertainty that have the most significant effect on the amounts recognized in our consolidated financial statements for the year ended December 31, 2024.
Transfer Jyseleca® business to Alfasigma - Determination of the fair value of the contingent earn-outs
The contingent consideration included in the total consideration for the sale of the Jyseleca® business to Alfasigma was recorded at fair value at the completion date (January 31, 2024) and is updated at each reporting date. The fair value is based on our best estimate of the expected earn-outs and sales milestones in the future, considering probability adjusted sales forecasts of Jyseleca® discounted using an appropriate discount rate. The fair value is reviewed at each reporting date and any

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Table of Contents

changes are reflected in our consolidated income statement, in the line 'Net profit from discontinued operations, net of tax'.
Determination of fair value of equity instruments
As there is no active market for any of our equity instruments and most of the companies we invest in are early stage R& D organizations, we establish the fair value by using other valuation techniques. The fair value is estimated by management based on the cost of investment and adjusted as necessary for impairment and revaluations with reference to relevant available information and recent financing rounds. The inputs used are categorized as Level 3 inputs.
We refer to note 16 for more information about the equity investments.
Adaptimmune collaboration
Under the terms of the Collaboration and Exclusive License Agreement, we paid an upfront exclusivity payment of $70.0million and $15.0million in R& D funding to Adaptimmune at signing of the collaboration. A further $15.0million in R& D funding will follow subject to the start of dosing in the proof-of-concept trial.
We capitalized the $70.0million as intangible asset (as