Galapagos modified course earlier this yr, asserting it not needed to give attention to cell remedy and would search patrons for this enterprise. After buying across the property for months, Galapagos discovered nobody else within the biopharmaceutical sector needs them both.
The strategic evaluation and sale course of that began in Could yielded a restricted variety of non-binding provides, most of them from monetary buyers. None of these provides got here with phrases or financing that will moderately help the cell remedy property’ future, in order that enterprise will wind down, the Belgium-based firm stated Tuesday. The choice adopted a complete evaluation that took into consideration the funding wanted to keep up the cell remedy enterprise in addition to “evolving market dynamics.”
“Primarily based on this evaluation and intensive enter from its advisors, Galapagos intends to wind down its cell remedy enterprise,” the corporate stated within the announcement. “This intention to wind down the cell remedy enterprise goals to help a stronger and extra sustainable future for Galapagos.”
Not so way back, Galapagos envisioned cell remedy as its future. The corporate aimed to enhance on at the moment obtainable cell therapies, that are made in a multi-step course of that includes harvesting a affected person’s immune cells and engineering them into focused most cancers fighters in a distant lab — a course of that may take a month or extra. Galapagos’s method employs know-how that allows manufacturing of those therapies on the level of care or in a centralized location, shortening to a couple of week the time wanted to make and ship a remedy to a affected person.
Galapagos, which started in 1999 as a developer of small molecule medication for inflammatory problems, introduced in January plans to spin out all of its property, leaving legacy Galapagos centered on creating most cancers cell therapies. The corporate revised these plans in Could, asserting it could search patrons for all of its property, together with the cell remedy enterprise and its clinical-stage applications. Galapagos would then use its capital to amass or license clinical-stage medication in immunology, oncology, and virology. It could additionally proceed a partnership that legacy Galapagos had with Gilead Sciences. Gilead retains an fairness stake in Galapagos.
Cell remedy is changing into a sizzling space for dealmaking. Earlier this month, Bristol Myers Squibb reached a $1.5 billion deal to purchase preclinical Orbital Therapeutics. That announcement adopted M&A strikes by AstraZeneca, AbbVie, and Gilead Sciences. Every of these offers brings in vivo cell remedy platforms and applications that keep away from the complexities and infrastructure required of ex vivo cell therapies, together with the therapies Galapagos is creating. These offers additionally provide their large pharma acquirers the chance to broaden the attain of cell remedy to the therapy of autoimmune problems.
Galapagos shouldn’t be alone in strolling away from cell therapies. At the start of the month, Takeda Pharmaceutical introduced reprioritization of its portfolio would result in the discontinuation of its cell remedy work. Quickly after, Novo Nordisk stated it could cease its cell remedy work as a part of a broader company restructuring.
The Galapagos board voted unanimously to approve the wind-down of the cell remedy enterprise, except two administrators appointed by Gilead who recused themselves from the vote. Galapagos stated it would think about “any viable proposal to amass all, or a part of the cell remedy enterprise” in the course of the wind-down course of. Exiting cell remedy will result in the closure of websites in Leiden, the Netherlands, and Basel, Switzerland, in Europe; Princeton, New Jersey, and Pittsburgh within the U.S.; and Shanghai, China. An estimated 365 staff throughout these websites will lose their jobs. What stays of Galapagos will keep its headquarters in Mechelen, Belgium.
As of the top of the primary half of 2025, Galapagos reported its money place was €3.1 billion (about $3.6 billion). That capital will go towards enterprise offers to construct a brand new pipeline underneath its new administration staff. In Could, the Galapagos board introduced business veteran Henry Gosebruch would succeed the retiring Paul Stoffels as CEO.
Galapagos stated the total wind-down of the cell remedy enterprise is anticipated to end in €100 million to €125 million in working prices from the fourth quarter of 2025 via 2026, and €150 million to €200 million of one-time restructuring prices in 2026. Galapagos stated an up to date 2025 money outlook shall be supplied with the corporate’s third-quarter 2025 earnings report in early November.
Picture: Ekkaluck, Getty Photographs
