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Galapagos scales back its cell therapy business to enhance efficiency and focus on transformative opportunities, impacting over 365 employees globally.
Galapagos announced plans to scale back on its cell therapy business, while the company pursues new transformational business development transactions with its available cash resources. The announcement follows Galapagos comprehensive review of strategic alternatives, along with a potential divestiture.
“We have undertaken a thorough strategic review and sale process to identify potential buyers or investors with the expertise and resources to take the cell therapy business forward,” said Henry Gosebruch, chief executive officer of Galapagos. “Following a limited number of non-binding offers, ultimately no viable proposals were received with terms or financing that would reasonably support the business’ future. After a comprehensive review of all strategic alternatives, given the ongoing investment requirements, coupled with evolving market dynamics and taking into account the interest of all relevant stakeholders, we believe that allocating our capital to other areas of unmet need would be a more attractive use of our resources. Now that this comprehensive strategic review process has concluded, we look forward to continuing to pursue transformative business development opportunities.”
Galapagos says that its plan enables the company to both enhance operational efficiencies and set its focus on utilizing available cash to follow through on its strategy to build a pipeline of novel therapeutics through strategic business development transactions under the leadership of its new management team.1 According to a press release from Galapagos, the company’s intention to wind down its cell therapy business aims to support a stronger and more sustainable future for Galapagos.
The company based its decision on a strategic review, along with extensive input from its advisors. Additionally, the decision was unanimously approved by the Board of Galapagos NV, not including two directors appointed by Gilead, both of whom recused themselves from the vote.1 According to a press release from Galapagos, the plans to scale back its cell therapy business is subject to the conclusion of consultations with works councils in both Belgium and the Netherlands, during which Galapagos will continue to operate the business.1 Galapagos also announced that it would consider any viable proposal acquiring all, or part of its cell therapy business.
If Galapagos’ plan to scale back follows through, the company anticipates the decision to effect upwards of 365 employees across Europe, US, and China. The decision may also lead to the closure of the sites in Leiden, Netherlands, Basel, Switzerland, Princeton & Pittsburgh, U.S., and in Shanghai, China.1 Any remaining organizations are planned to be repositioned for long-term growth through transformational business development and would keep a dedicated presence at its headquarters in Mechelen, Belgium. The non-cell therapy activities would continue to be managed by Galapagos. Additionally, if Galapagos follows through, the company expects to incur $116 million to $145 million in operating costs from Q4 2025 through 2026, and $175 million to $230 million in one-time restructuring costs in 2026.1
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