Galapagos Reports Nine Months 2025 Financial Results and Provides Business Update

Core Insights - Galapagos NV has concluded its strategic review process, deciding to wind down its cell therapy business to optimize capital allocation for a sustainable future [1][4] - The company has a robust balance sheet with €3.05 billion in cash and financial investments as of September 30, 2025, and expects to end the year with approximately €2.975 billion to €3.025 billion [1][15] - Leadership changes have been made to align with the new strategic direction, enhancing corporate and business development capabilities [3][6] Financial Performance - Total net revenues for the first nine months of 2025 reached €211.4 million, a 6% increase from €200.1 million in the same period of 2024 [5][9] - The company reported an operating loss of €462.2 million for the first nine months of 2025, significantly higher than the €125.6 million loss in the same period of 2024, primarily due to a €204.8 million impairment related to the cell therapy business [7][10] - Net loss from continuing operations was €463.0 million for the first nine months of 2025, compared to a net loss of €20.4 million for the same period in 2024 [10][12] Strategic Focus - The management aims to strategically deploy capital in a disciplined manner, focusing on value-accretive transactions, particularly in small molecule and biologics programs in immunology and oncology [1][4] - The company is actively evaluating opportunities and believes its partnership with Gilead provides a strategic advantage in pursuing these opportunities [1][4] Operational Changes - The wind down of the cell therapy business is expected to impact approximately 365 employees across various locations, with the remaining organization projected to consist of 35-40 employees by the end of 2026 [4][15] - The company anticipates being cash flow neutral to positive by the end of 2026, excluding any business development activities and currency fluctuations, if the wind down is successfully implemented [1][15] Clinical Pipeline - Galapagos is advancing its clinical pipeline, including GLPG5101, a CD19 CAR-T candidate in Phase 1/2 trials, and GLPG3667, a small molecule TYK2 inhibitor in Phase 3-enabling studies [5][6]