Citi downgrades Galapagos on Jyseleca commercial outlook, M&A pace

Lakefront Biotherapeutics NV

24/08/2023 07:43

** Citigroup downgrades Galapagos  GLPG.AS  to "neutral"
from "buy", citing the pace of M&A, initial direction into
oncology, downgrade of commercial outlook for Jyseleca and
delays in timelines for key pipeline assets
    ** Its updated model following the Belgian biotechnology
company's Q2 results led to revenue downgrades, making
Galapagos's 2025 recovery "unrealistic"
    ** Citi cuts its PT by almost a fifth to 41 euros
    ** "With meaningful clinical datasets now not expected until
2025+ (...), we find it difficult to defend our Buy thesis short
term," Citi says
    ** It thinks that M&A in Europe are "less likely" now after
Galapagos announcement on the evaluation of strategic options
for Jyseleca, its rheumatoid arthritis and ulcerative colitis
drug
    ** However, it sees accelerated timelines for cell therapy
trials in the U.S. and cell therapy efforts in autoimmune as
potential drivers for the improvement of sentiment 

 (Reporting by Laura Lenkiewicz)
 ((Laura.lenkiewicz@thomsonreuters.com))