Company: GLPG
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001558370-25-003806
Chunk: 189

Company: GALAPAGOS NV
Filing Date: 2025-03-27
Form: 20-F
Item: Item 5
Chunk 189
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●   subcontracting costs related to contracted agencies for marketing campaigns and materials, business analytics, market research and promotional expenses;
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●   professional fees to support our commercial activities;
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●   impairment expenses and depreciation of fixed assets used by our commercial staff;
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●   other operating expenses, namely press and communication fees, operational taxes, costs of samples, travel and accommodation costs, and office expenses.
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Our total sales and marketing expenses (before discontinued operations) strongly decreased, as a consequence of the transfer of the Jyseleca® business to Alfasigma on January 31, 2024.
General and administrative expenses
General and administrative expenses consist primarily of salaries and benefits related to our executive, finance, human resources, business development, legal, intellectual property, and information technology support functions, as well as depreciation and impairment costs of fixed assets. Professional fees reported under general and administrative expenses mainly include legal fees, accounting fees, audit fees, and fees for taxation advisory and other consultancy costs. Other general and administrative operating expenses primarily encompass software and license costs, equipment maintenance and leasing costs, consultancy costs, insurance costs, Belgian tax on securities accounts, office expenses, and travel costs.
Our total general and administrative expenses (before discontinued operations) decreased due to a reduction of the staff as a consequence of the transfer of the Jyseleca® business to Alfasigma on January 31, 2024, and are expected to decrease further following the announced planned reorganization in 2025.
Grants and R&D incentives
We benefit from various grants and R&D incentives from certain governmental agencies. These grants and R&D incentives generally aim to partly reimburse approved expenditures incurred in our R&D efforts and are credited to the income statement, under other operating income, when the relevant expenditure has been incurred and there is reasonable assurance that the grant or R&D incentive is receivable. The main grants and R&D incentives are as follows:

●   Companies in Belgium are eligible to receive R&amp;D incentives linked to R&amp;D investments (equaling 25% of 20.5% of the investment value in 2024). This R&amp;D tax credit results in a cash inflow to us from the tax authorities five years after the investment was made and capitalized in our standalone financial statements under Belgian GAAP for the portion that has not been used to offset the payment of corporate tax or is paid to us for the portion that remains unused. In 2023 we also received