Galapagos Announces Intention to Wind Down Cell Therapy Business as Part of the Company’s Ongoing Transformation

Core Viewpoint - Galapagos NV intends to wind down its cell therapy business to optimize capital allocation and focus on new transformational business development opportunities [1][3][11] Strategic Review and Decision - The decision follows a comprehensive strategic review that included exploring potential divestiture options, but no viable proposals were received [3][4] - The Board of Galapagos unanimously approved the wind down, with the exception of two Directors appointed by Gilead who recused themselves [4] Operational Impact - The wind down is expected to affect approximately 365 employees across Europe, the U.S., and China, and will involve the closure of sites in Leiden, Basel, Princeton, Pittsburgh, and Shanghai [5] - The remaining organization will focus on long-term growth through new business development while maintaining a presence in Mechelen, Belgium [5] Financial Implications - If the wind down proceeds, the company anticipates incurring operating costs of €100 million to €125 million from Q4 2025 through 2026, along with one-time restructuring costs of €150 million to €200 million in 2026 [6] - An updated cash outlook for 2025 will be provided with the company's third-quarter earnings report in early November [6] Future Focus - The company aims to enhance operational efficiencies and build a pipeline of novel therapeutics under the leadership of its new management team [2][3] - Galapagos will continue to consider any viable proposals for the cell therapy business during the wind down process [4]