Galapagos Restructures, Consolidates Cell Therapies Amid Strategic Shift

Belgian biotech company Galapagos has announced a significant restructuring of its business, marking a new chapter in its transformation journey. The company is consolidating its cell therapy operations and trimming its pipeline as it prepares for potential strategic transactions.

Regaining Control of Cell Therapy Portfolio

Galapagos has secured global development and commercialization rights for its cell therapies from Gilead Sciences, effectively ending a portion of their 10-year partnership initiated in 2019. This move places these therapies under a newly formed subsidiary, Galapagos Cell Therapeutics. In exchange for regaining control, Galapagos will owe Gilead a single-digit royalty on future proceeds from either product sales or a potential sale of the cell therapy business.

The fate of this cell therapy unit remains uncertain, with Galapagos announcing a strategic review. The company plans to provide an update on this review in the third quarter of 2025, leaving open the possibility of a sale or other strategic options for the business.

Pipeline Optimization and Partnerships

In addition to consolidating its cell therapy assets, Galapagos is actively pruning its small molecule pipeline. 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.

Galapagos is also exploring partnership opportunities for its TYK2 inhibitor, GLPG3667, currently in phase 2 trials for systemic lupus erythematosus and dermatomyositis. This move signals a shift in focus and resources within the company's research and development efforts.

Strategic Pivot and Leadership Change

These strategic moves come in the wake of Galapagos abandoning its earlier plans to split into two separate entities. The company had initially announced intentions to create one entity focused on cell therapies and another dedicated to building a new pipeline through "transformational transactions." However, citing "general market regulation conditions," Galapagos reversed this decision in May.

Henry Gosebruch, the newly appointed CEO of Galapagos, emphasized the company's new direction, stating, "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."

This restructuring follows a significant workforce reduction, with Galapagos having previously announced layoffs affecting 40% of its staff. The company's evolving strategy reflects its efforts to streamline operations, focus on core assets, and position itself for future growth in a challenging biotech landscape.