Galapagos (GLPG) AI Stock Analysis

• Market Cap: $2.04B
• Dividend Yield: N/A
• Average Volume (3M): 248.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.71
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 704
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -3.54
• Shares Outstanding: 65,897,070
• 10 Day Avg. Volume: 175,632
• 30 Day Avg. Volume: 248,773
• PEG Ratio: -0.35
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 6.37
• P/FCF Ratio: -4.37
• Enterprise Value/Market Cap: -0.63
• Enterprise Value/Revenue: -4.50
• Enterprise Value/Gross Profit: -3.06
• Enterprise Value/Ebitda: 3.73
• 1Y Price Target: $30.50
• Price Target Upside: -6.01% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): -4.77
• Revenue Forecast (FY): $309.89M

• Rating: 47 Neutral
• Price Target: $31.00 ▼(-4.47% Downside)

Galapagos' overall stock score reflects a challenging financial and operational landscape. The company's strong cash position and strategic partnerships are positive, but are overshadowed by significant operating losses, poor valuation metrics, and technical indicators suggesting potential downward pressure. Investors should be cautious and monitor the company's ability to execute its strategic transformation and improve financial performance.

Positive Factors

Strong Cash Position

A robust cash position provides Galapagos with financial flexibility to invest in R&D and strategic initiatives, supporting long-term growth.

Strategic Partnerships

The partnership with Gilead enhances Galapagos's ability to develop and commercialize new therapies, potentially expanding market reach and revenue.

Pipeline Developments

Progress in the TYK2 program indicates potential future revenue streams and strengthens Galapagos's position in the competitive biotech market.

Negative Factors

Failed Cell Therapy Spin-Off

The failure to spin off the cell therapy business reflects strategic challenges and may limit Galapagos's ability to focus on core competencies.

Significant Operating Loss

Substantial operating losses highlight ongoing financial struggles, which could hinder investment in growth and innovation initiatives.

High Restructuring Costs

High restructuring costs from winding down the cell therapy business could strain financial resources and delay profitability improvements.

Galapagos Business Overview & Revenue Model

Company Description

Galapagos NV, an integrated biopharmaceutical company, engages in the discovery, development, and commercialization of various medicines for high unmet medical need. Its pipeline products include filgotinib, a JAK1 inhibitor that is in various phases of clinical trials for the treatment of rheumatoid arthritis, Crohn's disease, ulcerative colitis, small bowel CD, fistulizing CD, ankylosing spondylitis, psoriatic arthritis, and uveitis. The company's pipeline products also comprise GLPG1972 that has completed Phase 2b trial for treating osteoarthritis; Toledo molecules, including GLPG3970, GLPG4399, and GLPG4876 for inflammation; and GLPG4716 and Ziritaxestat to treat idiopathic pulmonary fibrosis. In addition, its other pipeline products include GLPG2737, a cystic fibrosis transmembrane conductance regulator that is in Phase 2 clinical trials to treat patients with autosomal dominant polycystic kidney disease; and GLPG0555, a JAK1 inhibitor, which is in Phase 1b for treatment of patients with osteoarthritis. The company has collaboration agreements with Gilead Sciences, Inc.; AbbVie S.à r.l.; and Novartis Pharma AG. Galapagos NV was incorporated in 1999 and is headquartered in Mechelen, Belgium.

How the Company Makes Money

Galapagos generates revenue primarily through the development and commercialization of its pharmaceuticals. The company earns money from several key revenue streams: milestone payments from partnerships with larger pharmaceutical companies, royalties from sales of partnered products, and potentially revenue from its own marketed products once they are approved. Significant partnerships, such as those with Gilead Sciences, contribute to Galapagos's earnings through upfront payments and success-based milestones as products progress through clinical trials. Additionally, grants and collaborations with academic institutions may also supplement its income.

Galapagos Financial Statement Overview

Summary

Galapagos shows a mixed financial performance. The company has a strong gross profit margin and low leverage, but struggles with profitability and cash flow generation. The negative net profit and EBIT margins, along with ongoing cash flow issues, highlight significant challenges.

Income Statement

Galapagos shows a mixed performance in its income statement. The TTM gross profit margin is strong at 87.59%, indicating efficient cost management. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins, reflecting ongoing losses. Revenue growth is modest at 4.10% TTM, but the company has faced revenue declines in previous years, highlighting volatility in sales performance.

Balance Sheet

The balance sheet of Galapagos is relatively stable with a low debt-to-equity ratio of 0.0032 TTM, suggesting minimal leverage and financial risk. However, the return on equity is negative at -10.20% TTM, indicating inefficiencies in generating returns for shareholders. The equity ratio is not explicitly calculated, but the low debt levels suggest a solid equity base.

Cash Flow

Galapagos faces challenges in cash flow management, with negative operating cash flow and free cash flow TTM. The free cash flow to net income ratio is slightly positive at 1.07, indicating some alignment between cash flow and accounting profits. However, the negative free cash flow growth rate of -3.58% TTM highlights ongoing cash flow issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	286.92M	275.65M	239.72M	241.25M	484.85M	478.05M
Gross Profit	422.74M	240.79M	239.72M	241.25M	483.22M	478.05M
EBITDA	-346.93M	43.33M	51.04M	3.87M	-100.93M	-281.70M
Net Income	-435.95M	74.08M	211.70M	-217.99M	-125.42M	-305.44M
Balance Sheet
Total Assets	4.13B	4.14B	4.36B	4.73B	5.19B	5.72B
Cash, Cash Equivalents and Short-Term Investments	3.58B	3.12B	3.68B	4.09B	4.70B	5.16B
Total Debt	8.81M	11.72M	9.60M	21.90M	26.86M	29.44M
Total Liabilities	1.25B	1.24B	1.56B	2.21B	2.55B	3.05B
Stockholders Equity	2.88B	2.90B	2.80B	2.53B	2.64B	2.67B
Cash Flow
Free Cash Flow	-287.04M	-402.14M	-425.24M	-537.49M	-561.71M	-518.65M
Operating Cash Flow	-269.36M	-320.03M	-405.97M	-500.54M	-503.83M	-427.34M
Investing Cash Flow	284.55M	220.60M	71.19M	-1.25B	541.24M	757.29M
Financing Cash Flow	-4.47M	-4.92M	-5.00M	-1.49M	-3.88M	22.04M

Galapagos Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.45
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GLPG, the sentiment is Positive. The current price of 32.45 is above the 20-day moving average (MA) of 32.04, below the 50-day MA of 32.93, and above the 200-day MA of 29.00, indicating a neutral trend. The MACD of -0.59 indicates Negative momentum. The RSI at 51.61 is Neutral, neither overbought nor oversold. The STOCH value of 78.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GLPG.

Galapagos Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGIO	59 Neutral	$2.37B	―	-27.57%	―	36.26%	-158.98%
TARS	55 Neutral	$2.90B	―	-28.35%	―	182.44%	47.21%
TVTX	54 Neutral	$2.89B	―	-410.78%	―	114.22%	77.02%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
GLPG	47 Neutral	$2.04B	―	-16.45%	―	―	―
IRON	43 Neutral	$3.17B	―	-34.78%	―	―	-34.96%
RXRX	41 Neutral	$2.00B	―	-91.06%	―	-32.98%	-18.46%

Galapagos Corporate Events

Galapagos NV to Wind Down Cell Therapy Business Amid Strategic Shift

Galapagos NV announced its financial results for the first nine months of 2025, revealing a strategic shift with the intention to wind down its cell therapy business. This decision follows a comprehensive strategic review aimed at optimizing capital allocation and supporting the company’s long-term sustainability. The wind down, if implemented, will affect approximately 365 employees and lead to the closure of several sites across Europe, the U.S., and China. Despite a significant operating loss of €462.2 million due to impairments, Galapagos maintains a robust balance sheet with €3.05 billion in cash and financial investments as of September 30, 2025. The company plans to focus on value-accretive transactions in small molecule and biologics programs, leveraging its partnership with Gilead to enhance its strategic positioning.

Galapagos to Present Promising CAR-T Cell Therapy Data at ASH 2025

On November 3, 2025, Galapagos NV announced that it will present new data for its CAR T-cell therapy candidate, GLPG5101, at the upcoming American Society of Hematology Annual Meeting in December 2025. The data, derived from Phase 2 studies, highlight the potential of GLPG5101 in treating relapsed/refractory non-Hodgkin lymphoma, demonstrating high complete response rates and low-grade toxicities. This development underscores Galapagos’ commitment to advancing cell therapy solutions and could enhance its positioning in the oncology market by addressing high unmet medical needs.

Galapagos NV Strengthens Board with Strategic Appointments

On October 30, 2025, Galapagos NV announced significant changes to its Board of Directors to strengthen its strategic focus on business development. The appointments of Dr. Neil Johnston and Devang Bhuva as new directors aim to align the Board’s composition with the company’s strategic direction, enhancing its capacity to execute transformational business development strategies. These changes are expected to support Galapagos in creating value for shareholders and advancing its pipeline of novel medicines.

Galapagos NV to Wind Down Cell Therapy Business Following Strategic Review

On October 21, 2025, Galapagos NV announced its intention to wind down its cell therapy business following a comprehensive strategic review. This decision, aimed at enhancing operational efficiencies and focusing on transformational business development, was unanimously approved by the board, excluding two directors from Gilead who recused themselves. The wind-down process is expected to impact approximately 365 employees and result in the closure of several sites across Europe, the U.S., and China. The company plans to allocate its resources to areas of unmet need, with anticipated costs ranging from €100 million to €125 million in operating expenses and €150 million to €200 million in restructuring costs through 2026.

Galapagos Appoints Fred Blakeslee as General Counsel

On October 16, 2025, Galapagos NV announced the appointment of Fred Blakeslee as Executive Vice President and General Counsel, succeeding Valeria Cnossen. Blakeslee, who brings extensive legal expertise and experience in high-impact partnerships, is expected to play a crucial role in Galapagos’ strategic transformation and growth. His previous role at AbbVie involved leading legal teams in significant mergers and acquisitions, including the $63 billion acquisition of Allergan PLC. This leadership transition is seen as a pivotal step in advancing Galapagos’ clinical pipeline and enhancing its position in the biopharmaceutical industry.

Galapagos Updates on Cell Therapy Business Strategic Review

On October 1, 2025, Galapagos NV announced an update on its strategic review of alternatives for its cell therapy business, initially disclosed on May 13, 2025. The company has received a limited number of non-binding offers from financial consortia interested in acquiring the business. Galapagos is working with these potential bidders to finalize due diligence and secure financing commitments. The deadline for binding offers is approaching, and a decision regarding the divestment or alternative actions is expected by November 5, 2025.