Galapagos intends to wind down cell therapy business

Galapagos (GLPG) announced its intention to wind down its cell therapy business and pursue new business development transactions with its available cash resources. The intention to wind down follows a comprehensive review of strategic alternatives, including a potential divestiture. Based on this assessment and extensive input from its advisors, Galapagos intends to wind down its cell therapy business. The intention to wind down the cell therapy business was unanimously approved by the board of Galapagos NV other than the two directors appointed by Gilead (GILD), both of whom recused themselves from the vote. This intention is subject to the conclusion of consultations with works councils in Belgium and the Netherlands, during which Galapagos will continue to operate the business. Galapagos would consider any viable proposal to acquire all, or part of the cell therapy business, if such a proposal emerges during the wind down process. The intention to wind down, if ultimately implemented, is anticipated to impact approximately 365 employees across Europe, the U.S. and China, as well as the closure of the sites in Leiden, Basel, Princeton, Pittsburgh and Shanghai. The remaining Galapagos NV organization would keep a dedicated presence at its headquarters in Mechelen, Belgium. The non-cell therapy activities would continue to be managed by Galapagos. In the event that the board would effectively proceed with a full wind down decision, the company would expect to incur the following spend related to the cell therapy business: EUR 100M-EUR 125M of operating costs from Q4 through 2026 and EUR 150M-EUR 200M of one-time restructuring costs in 2026. An updated 2025 cash outlook will be provided with the company’s third-quarter earnings in early November.