Galapagos to shutter cell and gene therapy unit

Core Insights - Galapagos NV is shutting down its cell and gene therapy (CGT) division after unsuccessful attempts to sell it, reflecting a broader trend of retreat in the biotech sector due to lost momentum and high costs [1][3] Company Summary - The Belgian biotech will close its CGT division, resulting in approximately 365 job losses across its operations in the Netherlands, Switzerland, the US, and China [2] - The restructuring is expected to incur operational costs of €100–€125 million ($115 million-145 million) and reconstruction costs of €150–€200 million by the end of 2026 [2] - Galapagos remains open to offers for a partial or full acquisition of the CGT unit during the wind-down period [3] Industry Summary - The CGT industry is experiencing a significant pullback in investment as companies face high manufacturing costs, scalability challenges, and uncertain commercial returns [3][6] - Recent examples of companies retreating from CGT include Novo Nordisk, which abandoned its R&D cell therapy division, and Takeda, which shifted focus back to small molecules and biologics [4] - Gilead Sciences' Kite Pharma also terminated a collaboration valued at over $2.3 billion for off-the-shelf cell therapies [5] - Despite challenges, the CGT market is projected to grow, with an estimated worth of around $79 billion by 2030 [7] - The industry calls for improved collaboration between regulators and companies, as well as the use of contract development and manufacturing organizations (CDMOs) to enhance development quality [8]