Gilead Sciences is set to acquire Ouro Medicines for $2.2bn, marking the company’s first move into the T-cell engager (TCE) space and a deepening of ties with long-term partner, Galapagos. Through this deal, the California-based big pharma company will hand over $1.68bn upfront, while pledging up to $500m in milestone payments to absorb the latter’s BCMA/CD3-targeting TCE, gamgertamig (OM336). The therapy is currently in clinical development for antibody-mediated orphan diseases such as immune thrombocyto ...

Core Viewpoint - Galapagos NV received transparency notifications from Bank of America regarding changes in its voting rights holdings, indicating fluctuations around the 5% threshold for equivalent financial instruments related to Galapagos' voting rights [1][6]. Summary by Relevant Sections Voting Rights - On March 3, 2026, Bank of America fell below the 5% threshold for voting rights, holding 1.00% directly and 4.70% through equivalent financial instruments, totaling 5.70% [3][10]. - On March 4, 2026, Bank of America crossed back above the 5% threshold, holding 0.51% directly and 5.30% through equivalent financial instruments, totaling 5.80% [2][3]. Equivalent Financial Instruments - As of March 6, 2026, Bank of America held 3,489,591 equivalent financial instruments, representing 5.30% of Galapagos' voting rights [2][7]. - The breakdown of equivalent financial instruments includes various types such as rights to recall and swaps, with significant holdings in rights of use [7][11]. Notifications and Compliance - The notifications from Bank of America were made in compliance with Belgian transparency legislation, detailing the reasons for the changes in holdings as acquisitions or disposals of financial instruments treated as voting securities [6][10]. - The total number of voting rights held by Bank of America, including its affiliates, was reported as 335,202, which is 5.80% of the total outstanding shares of 65,897,071 [2][6]. Company Overview - Galapagos is a biotechnology company focused on developing medicines for serious diseases, particularly in oncology and immunology, utilizing a flexible asset selection approach to drive value for patients and shareholders [12].

Core Insights - Galapagos NV has appointed Tania Philipp as Chief Human Resources Officer (CHRO), effective March 4, 2026, succeeding Annelies Missotten, who will assist in the transition until June 30, 2026 [1][3] Group 1: Leadership Transition - Tania Philipp brings nearly three decades of experience in human resources within the life sciences sector, having held executive roles at various organizations including Vor Bio and Tango Therapeutics [2] - The CEO of Galapagos, Henry Gosebruch, expressed confidence in Philipp's ability to foster a strong culture during the company's transformation [3] Group 2: Company Overview - Galapagos is a biotechnology company focused on developing meaningful medicines for serious diseases, prioritizing oncology and immunology & inflammation programs with clear clinical proof-of-concept [4]

Core Insights - Galapagos is undergoing a strategic reset, focusing on business development in inflammation & immunology and oncology, while winding down its cell therapy activities [4][7][17] Financial Performance - The company reported an operating profit of €295.1 million for 2025, primarily due to the recognition of €1.069 billion in deferred income from Gilead [5][8] - Galapagos ended 2025 with approximately €2.998 billion in cash, down from €3.317 billion at the end of 2024, with a significant portion held in U.S. dollars [11][12] Research and Development - The TYK2 inhibitor GLPG3667 achieved positive Phase 2 results in dermatomyositis and systemic lupus erythematosus, but the company lacks the infrastructure for Phase 3 trials and is seeking partners for further development [6][7] Strategic Direction - The company is prioritizing "clinically de-risked opportunities" and leveraging its collaboration with Gilead as a strategic advantage [2][4] - A new leadership team has been assembled, and the board has been refreshed with directors experienced in capital allocation and operations [3][4] Future Guidance - For 2026, the company expects to be cash flow neutral to positive by year-end, with a projected cash outflow of up to €50 million in Q1 related to the wind-down of cell therapy [13][15] - The wind-down of cell therapy activities is expected to be substantially completed by the end of Q3 2026 [13][16]

Financial Data and Key Metrics Changes - Total operating profit from continuing operations amounted to EUR 295.1 million in 2025, compared to an operating loss of EUR 188.3 million in 2024, primarily due to the release of EUR 1,069 million in deferred income related to Gilead [8][9] - Financial investments in cash and cash equivalents totaled EUR 2,998 million on December 31, 2025, down from EUR 3,317.8 million on December 31, 2024 [11] - The company expects to have approximately EUR 2.775 billion to EUR 2.85 billion in cash equivalents and financial investments by December 31, 2026 [15] Business Line Data and Key Metrics Changes - The decision to wind down cell therapy activities resulted in operating expenses of EUR 399.8 million, including an impairment of EUR 228.1 million and severance costs of EUR 33.3 million [10] - The company is evaluating strategic options for its legacy R&D asset, GLPG3667, which met primary endpoints in clinical studies [6][7] Market Data and Key Metrics Changes - The company has transitioned a significant portion of its cash holdings to US dollars, now holding approximately 72% in USD and 28% in euros, reflecting a strategic shift based on expected business development activities [12][47] Company Strategy and Development Direction - The company is focused on a transformative strategy, moving away from cell therapy and aiming for long-term value creation through business development opportunities [4][5] - Collaboration with Gilead is seen as a key strategic advantage, providing a platform for future growth and deal-making [6][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the pipeline of opportunities and emphasized a disciplined approach to capital allocation [16] - The company aims to be cash flow neutral to positive by the end of 2026, despite ongoing restructuring costs [14][50] Other Important Information - The company expects the wind down of cell therapy activities to be substantially completed by the end of Q3 2026, with a one-time restructuring cash impact of EUR 125 million to EUR 175 million in 2026 [13][14] Q&A Session Summary Question: Business development strategy and Gilead agreement - Management confirmed that the strategy remains focused on de-risking late-stage clinical assets, particularly in the I&I and oncology space, without setting a specific deadline for deals [18][20][21] Question: Update on GLPG3667 development - Management reiterated a high bar for internal development versus out-licensing, emphasizing ongoing discussions with potential partners [25][26][27] Question: Capital allocation and Gilead partnership - Management highlighted that the EUR 3 billion capital must account for both acquisitions and development expenses, with Gilead potentially contributing to deal terms and development costs [31][33] Question: Future of cell therapy wind down costs - Management indicated that while the range for restructuring costs has been lowered, future updates will be provided as the wind down progresses [40][42] Question: Cash allocation strategy and breakeven expectations - Management expects to be cash flow neutral or positive by year-end, with ongoing costs impacting quarterly results [49][50]

Financial Data and Key Metrics Changes - Total operating profit from continuing operations amounted to EUR 295.1 million in 2025, compared to an operating loss of EUR 188.3 million in 2024, primarily due to the release of EUR 1,069 million in deferred income related to Gilead [9][10] - Financial investments in cash and cash equivalents totaled EUR 2,998 million on December 31, 2025, down from EUR 3,317.8 million on December 31, 2024 [12] - The company expects to have approximately EUR 2.775 billion to EUR 2.85 billion in cash equivalents and financial investments at December 31, 2026 [15] Business Line Data and Key Metrics Changes - The decision to wind down cell therapy activities resulted in operating expenses of EUR 399.8 million, including an impairment of EUR 228.1 million and severance costs of EUR 33.3 million [11] - The strategic reorganization related to the small molecule business announced in 2025 incurred costs of EUR 124.8 million [11] Market Data and Key Metrics Changes - The company has transitioned a significant portion of its cash holdings to US dollars, now holding approximately 72% in USD and 28% in euros, reflecting a strategic shift based on expected business development activities [12][49] Company Strategy and Development Direction - The company is focused on transforming its strategic direction away from cell therapy, aiming for long-term value creation with a strong foundation and approximately EUR 3 billion in cash [4][8] - The management team has been restructured to include leaders with extensive business development expertise, aiming to create significant shareholder value [5] - Collaboration with Gilead is viewed as a key strategic advantage, enhancing the company's ability to pursue transformative business development opportunities [6][7] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the potential for business development opportunities, particularly in the immunology and oncology sectors, while maintaining a disciplined approach to capital allocation [19][20] - The company anticipates being cash flow neutral to positive by the end of 2026, despite ongoing restructuring costs [14][52] Other Important Information - The company plans to complete the wind down of cell therapy activities by the end of Q3 2026, with an expected one-time restructuring cash impact of EUR 125 million to EUR 175 million in 2026 [13] - The annual report is expected to be filed near the end of March 2026, providing additional information to stakeholders [57] Q&A Session Summary Question: Update on business development focus and Gilead agreement - Management confirmed the strategy remains focused on de-risking late-stage clinical assets, particularly in immunology and oncology, without setting a specific deadline for deals [19][20] Question: Thoughts on GLPG3667 development versus out-licensing - Management maintains a high bar for all assets, including GLPG3667, and is exploring partnerships to accelerate development while ensuring capital efficiency [25][27] Question: Capital allocation and Gilead partnership impact - The company has EUR 3 billion in capital, which will be allocated for acquisitions and development expenses, with Gilead potentially contributing to deal terms and development costs [30][33] Question: Expectations for operating income breakeven - Management expects to be cash flow neutral or positive by year-end 2026, though predicting exact timing for costs is challenging [51][52]

Fiscal Year 2025 Results Presentation, February 24, 2026 Forward-Looking Statements This presentation contains "forward looking statements," all of which involve certain risks and uncertainties. These statements are often, but are not always, made through the use of words or phrases such as "vision," " progress," "believe," "anticipate," "plan," "continue," "forward," "goal," "should," "expect," "outlook," "estimate," "next," "encouraging," " aim," and "will," and "initiate" as well as any similar expressio ...

Core Insights - Galapagos NV reported a pivotal year in 2025, focusing on a strategic transformation to enhance long-term value creation, particularly through business development and collaboration with Gilead [2][3] - The company is winding down its cell therapy activities, which is expected to be substantially completed by the end of Q3 2026, allowing for a leaner organization focused on sustainable growth [6][9] - Financially, Galapagos ended 2025 with approximately €3.0 billion in cash and financial investments, and anticipates a year-end cash position for 2026 between €2.775 billion and €2.850 billion [3][24] Financial Performance - Total net revenues for 2025 reached €1,112.2 million, a significant increase of 304% compared to €275.6 million in 2024, driven by collaboration revenues from Gilead [10][13] - Operating profit from continuing operations was €295.1 million in 2025, a turnaround from an operating loss of €188.3 million in 2024, primarily due to revenue recognition from the drug discovery platform [12][13] - The company reported a net profit of €320.9 million for 2025, compared to a net profit of €74.1 million in 2024, reflecting strong financial performance [18] Cash and Investments - Cash and financial investments totaled €2,998.0 million at the end of 2025, down from €3,317.8 million at the end of 2024, with a notable increase in U.S. dollar holdings [19][20] - The net decrease in cash and financial investments for 2025 was €319.8 million, an improvement from a net decrease of €366.7 million in 2024 [20] Strategic Focus - The company aims to build a pipeline of novel therapeutics through disciplined capital allocation and is focused on transformative business development opportunities in areas of high unmet medical need [2][6] - Galapagos expects to be cash flow neutral to positive by the end of 2026, excluding business development activities and currency fluctuations [24] Upcoming Events - A conference call is scheduled for February 24, 2026, to discuss the financial results and strategic direction [26]

Core Insights - Galapagos NV has appointed Dr. Paulo Fontoura as a Non-Executive Independent Director to its Board of Directors, effective February 9, 2026, replacing Dr. Susanne Schaffert [1] - The appointment is expected to enhance the Board's strategic guidance capabilities as the company explores transformative business development opportunities [1][2] Company Overview - Galapagos is focused on disciplined growth and advancing innovative medicines for patients while delivering long-term value for shareholders [2] - The company is entering a new phase with a clear strategic focus [2] Dr. Paulo Fontoura's Background - Dr. Fontoura has 20 years of experience in the pharmaceutical industry, with expertise in neurology, immunology, ophthalmology, and rare diseases [2] - He previously served as Chief Medical Officer at Xaira and held a senior position at Roche, where he led clinical development and contributed to the launch of multiple breakthrough therapies [2] - Dr. Fontoura has academic credentials including an MD and PhD in Neuroimmunology from the New University of Lisbon and a postdoctoral fellowship at Stanford University [2]

Core Viewpoint - Bank of America Corporation has crossed the 5% threshold of voting rights in Galapagos NV, indicating a significant increase in its stake in the company as of February 9, 2026 [1][6]. Summary by Relevant Sections Voting Rights - As of February 11, 2026, Bank of America Corporation, including its affiliates, holds 104,522 voting rights and 3,415,894 equivalent financial instruments, totaling 5.34% of Galapagos' 65,897,071 outstanding shares [2][6]. - The direct voting rights after the transaction are 0.16%, while the equivalent financial instruments account for 5.18%, leading to a total of 5.34% voting rights [3]. Transaction Details - The threshold was crossed on February 9, 2026, with the notification received on February 11, 2026 [6]. - The acquisition was due to the purchase of financial instruments treated as voting securities [6]. Breakdown of Voting Rights - The previous notification indicated no voting rights held by Bank of America Corporation, while after the transaction, the total voting rights held is 104,522, representing 0.16% [5]. - The breakdown of equivalent financial instruments includes various types such as rights to recall and swaps, with a total of 3,415,894 equivalent financial instruments representing 5.18% [7]. Total Voting Rights - The combined total of voting rights and equivalent financial instruments held by Bank of America Corporation is 3,520,416, which constitutes 5.34% of Galapagos' voting rights [7].