Here's Why Galapagos Stock Rose 20.5% in October
Shares of Galapagos (NASDAQ: GLPG) gained over 20% last month, according to data provided by S&P Global Market Intelligence. The Belgian pharmaceutical company reported third-quarter 2019 operating results that reminded investors of its long-term potential. The business generated revenue of approximately $831 million in the first nine months of 2019, a 266% increase from the year-ago period. Operating income improved to $434 million in the first three quarters of this year, up from a loss of $59 million in the same period of 2018.
The pre-commercial company is entirely dependent on collaboration revenue right now, but a deepening relationship with Gilead Sciences (NASDAQ: GILD) has significantly reduced risk. The partner made an up-front payment of $3.95 billion and invested $1.1 billion in Galapagos stock in July as part of an expanded collaboration agreement. That allowed Galapagos to exit September with nearly $6.2 billion in cash and no doubt helped to fuel the pharma stock's rise.
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Source Fool.com
