Galapagos Nv Stock Earnings Reports

Galapagos announced a major strategic shift: after a multi-month review and an unsuccessful sale process, the Board has formed an intention to wind down the cell therapy business. If implemented, the wind-down could impact up to ~365 employees and result in site closures (Leiden, Basel, Princeton, Pittsburgh, Shanghai). The company has ~EUR 3.05 billion in cash and investments (≈EUR 46/share) and continues to receive interest income (~EUR 77m YTD) plus royalties/earn-outs from Jyseleca (~EUR 15–20m p.a.) and expected tax receivables (~EUR 20–35m p.a. for ~3 years). Financials through Sept. 30, 2025 include an operating loss of EUR 462.2m driven by a EUR 204.8m impairment on the cell therapy business and EUR 135.5m of strategic reorganization charges. Management expects cash impacts from the wind-down of EUR 100–125m operating cash (Q4 2025–2026; EUR 50–75m in 2026) and one-time restructuring cash costs of EUR 150–200m in 2026, and they expect to be cash flow neutral to positive by the end of 2026 (excluding BD activities and FX). The TYK2 program (GLPG3667) remains as the last legacy R&D program; two fully enrolled Phase III-enabling studies (SLE and dermatomyositis) will report data in early 2026. The company is pivoting to an M&A/business-development-led strategy, leveraging a newly assembled BD team, substantial cash resources, and a collaborative relationship with Gilead (25% owner) to pursue mid/late-stage, clinically derisked assets—initial focus areas include oncology and immunology/inflammatory disease. Works council consultations in Belgium and the Netherlands are underway, with management aiming to conclude them in Q1 2026; the company remains open to viable acquisition proposals for some or all cell therapy assets during the consultation process.