Galapagos to Wind Down Cell Therapy Business, Cutting 365 Jobs Amid Industry Shift
Belgian biotech company Galapagos NV has announced plans to wind down its cell therapy business, marking a significant shift in strategy and resulting in the loss of approximately 365 jobs across Europe, the United States, and China. The decision comes after a failed attempt to sell the unit and reflects broader challenges facing the cell therapy sector.
Strategic Reversal and Job Cuts
Galapagos CEO Henry Gosebruch revealed that the company had conducted a thorough search for potential buyers of its cell therapy unit but received no viable proposals. "Ultimately no viable proposals were received with terms or financing that would reasonably support the business's future," Gosebruch stated. This outcome led to the decision to wind down the cell therapy operations and reallocate resources to other areas of unmet medical need.
The wind-down process, subject to negotiations with worker representatives in Belgium and the Netherlands, will affect around 365 employees, representing more than half of Galapagos' 704-person workforce as of the end of last year. The company plans to close multiple sites, including two facilities in the US and one each in the Netherlands, Switzerland, and China.
Financial Impact and Future Focus
The closure of the cell therapy unit is expected to have significant financial implications for Galapagos. The company anticipates one-time restructuring costs of €150 million to €200 million ($174 million to $232 million) in 2026, along with operating costs of €100 million to €125 million ($116 million to $145 million) from Q4 2025 through 2026.
Despite these costs, Galapagos aims to leverage its substantial cash reserves—€3.1 billion ($3.6 billion) as of June 2025—to pursue "transformative business development opportunities." The company will maintain its headquarters in Belgium, focusing on building a new pipeline of drug candidates through strategic deals and acquisitions.
Broader Industry Trends
Galapagos' decision to exit the cell therapy field aligns with recent moves by other pharmaceutical giants. Earlier this month, both Novo Nordisk and Takeda announced their withdrawal from cell therapy investments, resulting in additional industry layoffs. These developments suggest a broader reassessment of the cell therapy sector within the pharmaceutical industry.
The wind-down of Galapagos' cell therapy business represents the latest turn in what has been a tumultuous year for the company. It follows a series of strategic shifts, including abandoned plans to split the company and the departure of former CEO Paul Stoffels. As Galapagos pivots away from cell therapies, it will focus on its remaining pipeline of small molecule assets targeting diseases such as systemic lupus erythematosus and inflammatory bowel disease.
References
- Galapagos Exits Cell Therapy, Cuts 365 Employees
Galapagos at the start of the year had planned to split into two businesses, with one resulting entity focused on cell therapies. The biotech nixed these plans a few months later, instead choosing to put up for sale multiple cell therapy assets.
- Galapagos to wind down cell therapy business after failed attempt at sale
The plans, if implemented, would result in the layoff of about 365 employees. Galapagos said it will still entertain acquisition offers as it works to close the unit.
- Galapagos to wind down cell therapy unit, threatening 365 jobs and 5 facilities
Galapagos is planning to wind down its cell therapy business, completing a whiplash change that saw the biotech go from focusing on the modality to ditching it in six months.
Explore Further
What has been the financial performance of Galapagos NV in recent years, and how might these layoffs impact their long-term outlook?
What are the broader challenges in the cell therapy sector that led Galapagos and other companies like Novo Nordisk and Takeda to exit the field?
What steps has Galapagos previously taken to support and grow its cell therapy business before deciding to wind it down?
How does Galapagos plan to reallocate resources and focus on the development of small molecule assets targeting systemic lupus erythematosus and inflammatory bowel disease?
What are the potential implications of Galapagos' layoffs on its global operations and workforce morale, particularly across Europe, the United States, and China?