Galapagos to Wind Down Cell Therapy Unit, Impacting 365 Jobs and 5 Facilities

Belgian biotech company Galapagos has announced plans to wind down its cell therapy business, marking a dramatic shift in strategy that will affect hundreds of employees across multiple countries. The decision comes after a six-month period of strategic review and unsuccessful attempts to divest the unit.

Failed Divestment and Strategic Shift

Galapagos CEO Henry Gosebruch stated that "no viable proposals were received with terms or financing that would reasonably support the business's future." The company had set a November 5 deadline for disclosing its decision on the future of the cell therapy unit after receiving a limited number of non-binding offers, primarily from financial investors.

The biotech giant has opted against investing its own resources into the cell therapy business, citing "evolving market dynamics" and a reassessment of the unit's needs. This decision represents a complete reversal from the company's stance earlier this year when it had planned to focus on cell therapy as a core area of development.

Impact on Workforce and Facilities

The wind-down process is expected to affect approximately 365 employees across Europe, the United States, and China. Galapagos plans to close five facilities:

• Two in the United States
• One in the Netherlands
• One in Switzerland
• One in China

The company will maintain its headquarters in Belgium, where it intends to pursue "transformational business development" deals to rebuild its pipeline of drug candidates.

Financial Implications and Industry Trend

Galapagos anticipates significant financial impact from this decision:

• Cell therapy operating costs of up to 125 million euros from Q4 2025 through 2026
• One-time restructuring costs between 150-200 million euros in 2026

As of June, the company reported 3.1 billion euros ($3.6 billion) in cash and investments, though the wind-down process is likely to reduce this figure.

This move by Galapagos aligns with a broader trend in the pharmaceutical industry, as other major players such as Novo Nordisk and Takeda have recently announced their withdrawal from cell therapy development, resulting in substantial layoffs.