UPDATE 1-Galapagos says 2007 sales to exceed guidance

BRUSSELS, Feb 27 (Reuters) - Belgian biotechnology company Galapagos (GLPG.BR) (GLPG.AS) said on Wednesday that 2007 sales would exceed the top end of its guidance at 64 million euros ($94.84 million).

Galapagos, which specialises in bone and joint diseases such as rheumatoid arthritis and osteoporosis, said in a statement that its cash position as the end of last year was 49 million euros, a limited rise of 2 million euros from a year earlier.

The company cautioned that the results published on Wednesday had not been audited and could differ from the results it will release on March 7.

Galapagos also said its BioFocus DPI division, which provides the bulk of its sales, would post revenues of about 48.5 million euros, up 39 percent year-on-year, but also a loss of 4.9 million euros before exceptional costs.

"Management is confident that the restructuring and consolidation efforts affecting the service division will start to pay off in 2008 and will contribute to bring the division back into profitability," the company said in a statement.

"For Galapagos as a whole, the coming year promises to be pivotal, with the anticipated entry into the clinic in 2008," Chief Executive Onno van de Stolpe said.

Galapagos has to date concentrated on pre-clinical studies into drug candidates. (Reporting by Julien Ponthus; Editing by Quentin Bryar)