Galapagos Streamlines Operations, Consolidates Cell Therapy Business Amid Strategic Shift

Belgian biotech company Galapagos has announced significant changes to its business structure and pipeline, marking a new chapter in its corporate strategy. The company is consolidating its cell therapy operations and trimming its small molecule pipeline as it prepares for potential strategic transactions.

Reunification of Cell Therapy Assets

Galapagos has regained global development and commercialization rights for its cell therapies from Gilead Sciences, effectively ending a portion of their 10-year partnership established in 2019. The cell therapy assets will now be housed in a newly formed subsidiary, Galapagos Cell Therapeutics. As part of this arrangement, Galapagos will owe Gilead a single-digit royalty on future proceeds from either product sales or a potential sale of the cell therapy business.

Henry Gosebruch, Galapagos' newly appointed CEO, stated, "We have commenced a bold new chapter in our transformation journey. Our priorities are clear: pursue and execute on transformational transactions to build a pipeline of innovative clinical programs and maximize the cash available for this new business development activity, all with the goal of delivering meaningful impact to patients."

Pipeline Optimization and Strategic Review

In addition to consolidating its cell therapy business, Galapagos is actively reshaping its small molecule pipeline:

1. The company has transferred undisclosed small molecule programs in immunology and oncology to Onco3R Therapeutics, another Belgian biotech, in exchange for equity and potential milestone payments.

2. Galapagos is exploring partnership opportunities for its TYK2 inhibitor GLPG3667, currently in phase 2 trials for systemic lupus erythematosus and dermatomyositis.

These moves are part of a broader strategic review, with the company planning to provide an update on the future of its cell therapy business in the third quarter of 2025.

Reversal of Previous Split Plans

The latest announcements come after Galapagos abandoned its earlier plans to split into two separate entities. In January, the company had announced intentions to create one entity focused on cell therapies and another dedicated to building a new pipeline through "transformational transactions." This plan, which included ending the Gilead partnership and a 40% reduction in workforce, was ultimately scrapped in May due to "general market regulation conditions."

The current strategy represents a significant pivot for Galapagos as it seeks to streamline operations, focus on high-potential assets, and position itself for future growth in the competitive biotech landscape.