Galapagos Unveils 2025 Split To Accelerate Innovation, Sharpen Strategic Focus

Galapagos NV GLPG has unveiled plans to divide its operations into two entities, aiming to enhance shareholder value and sharpen strategic focus.

One entity, referred to as SpinCo, will prioritize developing innovative medicines through transformational transactions, while the core Galapagos company will focus on its global cell therapy leadership in oncology.

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Under the separation plan, SpinCo will have approximately $2.53 billion (2.45 billion euro) of Galapagos’ cash reserves.

It will target oncology, immunology and virology through strategic business deals. SpinCo intends to list its shares on Euronext, with Galapagos shareholders receiving proportional shares of SpinCo. The division will require shareholder approval, with completion anticipated by mid-2025.

As part of the separation, Galapagos will amend its 2019 global Option, License and Collaboration Agreement (OLCA) with Gilead Sciences Inc GILD.

The updated terms grant Galapagos full global development and commercialization rights to its pipeline, subject to royalties on certain product sales.

After the split, the OLCA will apply exclusively to SpinCo. Gilead will hold a 25% stake in both companies post-separation and maintain representation on SpinCo's board.

Galapagos CEO Paul Stoffels emphasized the separation’s role in accelerating innovation and growth. He highlighted Galapagos’ renewed focus on its decentralized cell therapy platform, which has shown promise in treating relapsed/refractory non-Hodgkin lymphoma.

To align with this vision, Galapagos plans to exit its small molecule discovery programs and seek partners for related assets, including the TYK2 inhibitor GLPG3667, currently in Phase 2 trials.

The restructuring will result in approximately 300 job reductions across Europe, with significant impacts in Belgium and the closure of its French site.

Galapagos expects to operate from key hubs in the U.S., Netherlands and Belgium, aiming to streamline operations and reduce annual cash burn to 175-225 million euros.

Galapagos anticipates completing the spin-off by mid-2025.

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