Galapagos to wind down cell therapy business after failed attempt at sale

Core Insights - Galapagos, once a prominent player in the biotech sector, has faced significant setbacks in research and development, leading to a strategic shift in its business model [3][4] - The company plans to wind down its cell therapy business and focus on building a new pipeline of medicines through deals and acquisitions, resulting in substantial layoffs and site closures [6][8] Company Developments - Galapagos had a lucrative partnership with Gilead Sciences, which included a $5.1 billion deal in 2019, reflecting strong initial confidence in the company's potential [3] - The company announced plans to split into two entities earlier this year, with one focused on pipeline-building deals and the other continuing under the Galapagos name [4] - Following a failed attempt to sell the cell therapy unit, Galapagos will now proceed with a wind-down plan that has received unanimous board support, except for two Gilead-appointed directors [5][6] Financial Implications - The anticipated business closure will incur operating costs of €100 million to €125 million through 2026, alongside one-time restructuring costs estimated between €150 million and €200 million in 2026 [7] - The company plans to update its cash outlook for 2025 during the third-quarter earnings report in early November [7] - Approximately 365 employees, over half of the workforce, are expected to be laid off as part of the restructuring process [8]