On November 11, 2026 Lakefront Biotherapeutics NV (Euronext & NASDAQ: LKFT) reported its financial results for the first nine months of 2026 and provided a business update.
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"At ASH (Free ASH Whitepaper), we look forward to sharing results from patients enrolled in company-sponsored trials, which we believe will further characterize the differentiated efficacy and safety profile of gamgertamig and its potential as a first- and best-in-class T-cell engager in autoimmune disease," said Henry Gosebruch, Chief Executive Officer of Lakefront.
"Our guidance for year-end 2026 cash and financial investments is at least €2 billion, including the recently completed share repurchase program and taking into account the decision to initiate a second €50 million share repurchase program, which is expected to be completed by the end of the first quarter of 2027," added Aaron Cox, Chief Financial Officer of Lakefront.
1 American Society of Hematology (ASH) (Free ASH Whitepaper)
Third Quarter 2026 Business Update
CORPORATE
Lakefront completed a €50 million share repurchase program on October 16, 2026. Under this completed program, 1.99 million shares were repurchased at an average price of €25.19.
Dr. Mehdi Shahidi has been appointed as Non-Executive Independent Board Director. He replaces Dr. Paulo Fontoura, who resigned from the Lakefront Board in July 2026 following his appointment as Global Head of R&D at Sanofi.
IMMUNOLOGY PORTFOLIO
A gamgertamig poster presentation highlighting data from ongoing Phase 1b studies that suggest potential to retain remission after B cell reconstitution, maintained in the absence of background therapy for autoimmune cytopenias, consistent with an "immune reset", has been accepted for the 2026 American Society of Hematology (ASH) (Free ASH Whitepaper) Meeting. Investor webcast scheduled for Monday, December 14, 2026, at 8:00 AM ET.
Gamgertamig has been granted Orphan Drug Designation by the U.S. Food and Drug Administration (U.S. FDA) for the treatment of pemphigus. Gamgertamig was previously granted both Fast Track and Orphan Drug Designation by the U.S. FDA for the treatment of autoimmune hemolytic anemia (AIHA) and immune thrombocytopenia (ITP).
Gamgertamig is expected to enter registrational studies in 2027.
Ongoing Lakefront-sponsored clinical trials of gamgertamig in autoimmune diseases are actively enrolling, and expansion of the clinical trials program is anticipated in 2027.
Phase 1b study with gamgertamig in patients with autoimmune cytopenias (including ITP and AIHA) (NCT07083960), active in Australia and the United States.
Phase 1b study with gamgertamig in seropositive autoimmune diseases (including idiopathic inflammatory myositis, Sjögren’s disease, pemphigus vulgaris (PV), and pemphigus foliaceus (PF)) (NCT07229144), active in Australia, New Zealand, Czech Republic, and Japan.
Multicenter, long-term follow-up study in participants who previously participated in a gamgertamig clinical study (NCT07847892) initiated in September 2026.
Lakefront expects to initiate proof-of-concept basket studies assessing gamgertamig in additional autoimmune indications in the first half of 2027.
In addition, Keymed is conducting a number of company-sponsored studies in Greater China with gamgertamig in both malignant and autoimmune indications.
Lakefront continues to progress the preclinical portfolio of three autoimmune and inflammatory disease programs originally from Ouro Medicines (Ouro) with an opt-in for Gilead Sciences (Gilead) for a 50/50 profit split post clinical proof-of-concept for $75 million per program.
GLPG3667 discontinuation: Lakefront has completed a rigorous analysis of the competitive landscape and market opportunity. Following extensive discussions with potential strategic partners, the Company has decided to discontinue the program. The cost associated with this discontinuation is not expected to be material.
ONCOLOGY CAR-T CELL THERAPY UPDATE
The Company announced the start of the wind-down of its cell therapy activities in January 2026. At the date of this press release, the wind-down is substantially complete, with the last wave of departures of impacted personnel expected before year-end and limited remaining costs for the fourth quarter of 2026 and beyond, primarily associated with the HESPERIA study.
To support long-term patient follow-up, the HESPERIA study continues to monitor safety of all patients treated in the discontinued parent studies; associated spending is expected to remain minimal.
Post-period Event
On October 14, 2026, Lakefront completed the sale of its next-generation early-stage cell therapy pipeline to Armed Cell Therapeutics BV for €8 million upfront and the potential for up to $230 million in milestone payments and a low-single-digit royalty to Lakefront. This program is based on technology originated from and research undertaken by AboundBio, which was acquired by Lakefront Biotherapeutics NV (previously Galapagos NV) in 2022.
The Board of Directors of Lakefront has approved a second €50 million share repurchase program. This second share repurchase program will be initiated shortly, with completion expected by the end of the first quarter of 2027. For further details, we refer to the press release to be issued upon launch of the program.
Financial Guidance
The Company expects its year-end 2026 cash and financial investments balance to be in the range of €2.0 to €2.05 billion. This guidance includes initiating a second €50 million share repurchase program, which was not considered in the previous guidance range.
Lakefront forecasts having at least €1.6 billion of its cash remaining for additional strategic transactions and other capital allocation priorities following funding the portfolio to first gamgertamig approval.
Lakefront expects to change the presentation currency of its consolidated financial statements for the year ending December 31, 2026, from the euro to the U.S. dollar, and to change the functional currency from the euro to the U.S. dollar effective January 1, 2027. These changes are intended to better reflect the increasingly U.S. dollar-denominated nature of the Company’s operations and financial profile.
All guidance figures assume a EUR/USD exchange rate of 1.175, consistent with year-end 2025 and prior guidance. As of September 30, 2026, the EUR/USD exchange rate was 1.1355.
These estimates are subject to change and depend on exchange rate fluctuations and future business development activity.
Financial Performance
Key figures for the first nine months of 2026 (consolidated)
(€ millions, except basic & diluted earnings/loss (-) per share)
Nine months ended September 30,
% Change
2026 2025
Supply revenues 17.7 29.3 -40%
Collaboration revenues 8.4 182.1 -95%
Total net revenues 26.1 211.4 -88%
Cost of sales (17.6) (29.3) -40%
R&D expenses (82.5) (351.9) -77%
G&Ai and S&Mii expenses (76.6) (109.0) -30%
Impairment of the cell therapy activities (204.8)
Other operating income 2.2 21.4 -90%
Operating loss (148.4) (462.2) -68%
Fair value adjustments and net exchange differences 119.0 (50.5)
Net other financial result 37.1 30.4
Income taxes (0.2) 19.3
Net profit/loss (-) from continuing operations 7.5 (463.0)
Net profit from discontinued operations, net of tax 6.4 1.7
Net profit/loss (-) of the period 13.9 (461.3)
Basic and diluted earnings/loss (-) per share (€) 0.2 (7.0)
Financial investments, cash and cash equivalents 2,183.1 3,050.1
Details of the financial results for the first nine months of 2026
Total operating loss from continuing operations for the first nine months of 2026 amounted to €148.4 million, compared to an operating loss of €462.2 million for the first nine months of 2025. The operating loss in 2025 was negatively impacted by an impairment on the cell therapy activities of €204.8 million as a result of the Company’s announced strategic alternatives process for the cell therapy activities, and the executed strategic reorganization announced in January 2025, for €135.5 million. The latter was reflected in severance costs of €47.5 million, costs for early termination of collaborations of €45.5 million, impairment on fixed assets related to small molecules activities of €9.5 million, professional services costs of €21.4 million, €9.8 million accelerated non-cash cost recognition for subscription right plans and €1.8 million other operating expenses.
Total net revenues amounted to €26.1 million for the first nine months of 2026, compared to €211.4 million for the first nine months of 2025. The revenue recognition related to the exclusive access rights granted to Gilead for Lakefront’s drug discovery platform amounted to €172.6 million for the first nine months of 2025. The deferred income related to the drug discovery platform was fully released in revenue at the end of 2025.
Cost of sales amounted to €17.6 million for the first nine months of 2026, compared to €29.3 million for the first nine months of 2025, and related to the supply of Jyseleca to Alfasigma under the transition agreement. The related revenues are reported in total net revenues.
R&D expenses amounted to €82.5 million for the first nine months of 2026, compared to €351.9 million for the first nine months of 2025. In the first nine months of 2025, the Company recorded increased personnel expenses (mainly related to severance costs), an impairment on fixed assets (related to small molecules programs) and a provision for early termination of collaboration agreements. Additionally, due to the wind-down of the cell therapy activities, the spending in the CAR-T programs decreased in the first nine months of 2026 as compared to the first nine months of 2025.
G&A and S&M expenses amounted to €76.6 million for the first nine months of 2026, compared to €109.0 million for the first nine months of 2025. This decrease was mainly due to lower personnel costs (primarily severance costs).
Impairment of the cell therapy activities in 2025 is a result of the Company’s previously announced strategic alternatives process for the cell therapy activities whereby the Company assessed the recoverable amount of the cell therapy activities’ associated assets in accordance with International Accounting Standard 36. The recoverable amount was estimated to be lower than the assets’ carrying value. As a result, the Company recognized an impairment loss of €204.8 million for the first nine months of 2025, thereby aligning the cell therapy assets’ book value with the Company’s strategic intention to wind down the cell therapy activities, which resulted in a full impairment of both the associated goodwill and intangible assets and a partial impairment of property, plant and equipment.
Other operating income amounted to €2.2 million for the first nine months of 2026, compared to €21.4 million for the first nine months of 2025, mainly driven by lower R&D incentives income.
Net financial income amounted to €156.1 million for the first nine months of 2026, compared to net financial loss of €20.1 million for the first nine months of 2025.
Fair value adjustments and net currency exchange results amounted to a positive amount of €119.0 million for the first nine months of 2026, compared to a negative amount of €50.5 million for the first nine months of 2025, and were primarily attributable to €68.3 million of positive changes in fair value of financial investments and €42.0 million of unrealized currency exchange gains on Lakefront’s cash and cash equivalents and financial investments at amortized cost in U.S. dollars.
Net other financial income amounted to €37.1 million for the first nine months of 2026, compared to net other financial income of €30.4 million for the first nine months of 2025. Interest income amounted to €35.6 million for the first nine months of 2026, compared to €31.4 million of interest income for the first nine months of 2025. Fair value gains and interest income derived from cash, cash equivalents and financial investments excluding any currency exchange results amounted to €68.2 million for the first nine months of 2026 (compared to €77.2 million for the same period last year).
Income taxes amounted to a negative amount of €0.2 million for the first nine months of 2026, compared to positive income taxes of €19.3 million in the same period last year. The major amount in 2025 can be mainly explained by the reversal of the deferred tax liabilities linked to capitalized intangible assets related to the cell therapy activities, as the Company recorded an impairment on these intangible assets.
The Company reported a net profit from continuing operations of €7.5 million for the first nine months of 2026, compared to a net loss from its continuing operations of €463.0 million for the first nine months of 2025.
Net profit from discontinued operations related to Jyseleca amounted to €6.4 million for the first nine months of 2026, compared to net profit amounting to €1.7 million for the first nine months of 2025.
Lakefront reported a net profit of €13.9 million for the first nine months of 2026, compared to a net loss of €461.3 million for the first nine months of 2025.
Cash position
Financial investments and cash and cash equivalents totaled €2,183.1 million on September 30, 2026, as compared to €2,998.0 million on December 31, 2025. The cash and cash equivalents and financial investments included $2,150.2 million held in U.S. dollars ($2,159.0 million on December 31, 2025) which could generate foreign exchange gains or losses in the financial results in accordance with the fluctuation of the EUR/U.S. dollar exchange rate as the Company’s functional currency is EUR (translated at a rate of 1.1355 €/$ at September 30, 2026).
Total net decrease in cash and cash equivalents and financial investments amounted to €814.9 million during the first nine months of 2026, compared to a net decrease of €267.7 million during the first nine months of 2025. This net decrease was composed of (i) €97.2 million of operational cash burniii, which includes cash in of €88.2 million related to the return on financial investments, (ii) €58.4 million of positive exchange rate differences, positive changes in fair value of current financial investments, variation in accrued interest income, (iii) €1.1 million, which includes acquisition of equity investments and the issuance of a convertible loan, (iv) €6.1 million of net cash in related to the sale of subsidiaries, (v) €40.8 million purchase of own shares and (vi) €740.3 million cash out related to the purchase of Ouro Medicines.
(Press release, Lakefront Biotherapeutics, NOV 11, 2026, View Source [SID1234674625])