UPDATE 1-Galapagos plans share issue, says on track for 09

* To use capital to speed up clinical product development

* Says on track to achieve its 2009 financial objectives

AMSTERDAM, Oct 15 (Reuters) - Belgian biotech Galapagos (GLPG.BR) (GLPG.AS) said on Thursday it planned to raise capital through a share issue on Friday to help speed up its clinical product development.

The company also said it was well on track to achieve its 2009 operational and financial objectives, including a target for 100 million euros in revenues.

Galapagos said it would issue up to 2,125,925 new ordinary shares starting from 0600 GMT on Friday.

The new shares will be offered through an accelerated bookbuild offering to eligible investors, and will list on Euronext Brussels following their issuance.

Galapagos, a bone and joint specialist, said earlier this week it had expanded its alliance with Merck (MRK.N) for the development of treatments for the hardening of arteries.

It reported a net loss of 7.3 million euros in the first half of 2009, on revenues of 37.7 million euros (Reporting by Catherine Hornby; editing by Carol Bishopric)