Galapagos NV to Wind Down Cell Therapy Business After Failed Sale Efforts

Strategic Review Concludes with Wind-Down Decision

Galapagos NV, the Belgian biotechnology company headquartered in Mechelen, Belgium, announced on October 21, 2025, its intention to wind down its cell therapy business. This decision follows an extensive strategic review process that failed to yield viable acquisition proposals for the unit. The company had actively sought buyers or investors with the expertise and resources to take the cell therapy business forward, but ultimately received only a limited number of non-binding offers, none of which were deemed viable or fully financed.

The intention to wind down was unanimously approved by the Board of Galapagos NV, with the two directors appointed by Gilead recusing themselves from the vote. This move marks a significant shift in the company's strategy, aiming to enhance operational efficiencies and reallocate its available cash resources towards building a pipeline of novel therapeutics through strategic business development.

Impact on Workforce and Global Operations

The wind-down is anticipated to affect approximately 365 employees across Europe, the U.S., and China, representing more than half of the company's 704-person workforce at the end of last year. Additionally, the decision will lead to the closure of several global sites, including those in Leiden (Netherlands), Basel (Switzerland), Princeton and Pittsburgh (U.S.), and Shanghai (China). The company's headquarters in Mechelen, Belgium, will maintain its operations, focusing on non-cell therapy activities.

The implementation of this decision is subject to the conclusion of consultations with works councils in both Belgium and the Netherlands. During these consultation periods, Galapagos will continue to operate the cell therapy business and remains open to considering any viable proposals for the acquisition of all or part of the unit.

Financial Implications and Future Outlook

Galapagos expects to incur substantial costs associated with the wind-down. Projected expenses include €100 million to €125 million in operating costs from the fourth quarter of 2025 through 2026, alongside €150 million to €200 million in one-time restructuring costs in 2026. The total financial impact could reach up to €325 million. The company plans to provide an updated 2025 cash outlook with its third-quarter earnings report in early November.

This decision follows a turbulent year for Galapagos, which initially announced plans in January 2025 to split into two publicly listed entities, one dedicated to cell therapies. These plans were abandoned in May 2025, leading the company to explore all strategic alternatives for its cell therapy arm. The company's stock experienced a sharp decline of more than 15% on the Brussels stock exchange following the announcement. The strategic shift aims to reposition Galapagos for long-term growth by focusing on new business development opportunities and leveraging its cash resources for transformative transactions.