Galapagos NV, a Belgian drug developer, fell the most in more than a year after reporting a full-year loss and dropping a promise to become profitable.
Galapagos fell 5.6 percent to 19.25 euros in Brussels, the biggest decline since February 2012. More than 522,000 shares traded, almost nine times the three-month daily average. The stock has gained 53 percent in the past year, compared with a 16 percent advance for Belgium’s benchmark Bel20 Index.
Galapagos reported a full-year loss of 5.7 million euros ($7.5 million), the Mechelen-based company said in a statement today, after forecasting “positive” net income in August. The company also missed its own cash position target, and stopped repeating a pledge it has made in past years to be profitable.
“This profitability ambition is very difficult to maintain and they don’t promise it any more,” said Jan De Kerpel, an analyst at KBC Securities in Brussels. “That’s kind of an eye-opener” to some investors who aren’t specialized in the biotech industry.
Galapagos also said that Roche Holding AG decided to end an agreement under which it paid Galapagos to develop fibrosis drugs because of a strategic change. The company said it has received 16 million euros in payments from Basel, Switzerland-based Roche and plans to find another partner for the products.