Galapagos to Cease Cell Therapy Operations After Buyer Search Fails

Galapagos, the Belgian biopharmaceutical company, announced it will wind down its cell therapy operations after a lengthy search for buyers yielded no viable offers. The decision, revealed on Tuesday, comes after several months in which potential buyers showed limited interest in the company’s cell therapy assets.

Initially, in January 2023, Galapagos had shifted its focus towards cell therapy, aiming to innovate on existing treatments by streamlining the manufacturing process. This involved creating therapies closer to patient care, reducing the time from production to delivery from over a month to about a week. Despite these advancements, the strategic review initiated in May 2023 concluded that the investment required to sustain the cell therapy business was not supported by any serious offers.

The company received a few non-binding expressions of interest, primarily from financial investors, but none presented terms that would ensure the future viability of the cell therapy division. In its announcement, Galapagos stated, “Based on this assessment and extensive input from its advisors, Galapagos intends to wind down its cell therapy business,” emphasizing the need to foster a “stronger and more sustainable future” for the company.

Impact of the Decision and Future Plans

The decision to exit the cell therapy market reflects broader challenges within the sector. Recently, major companies like Takeda Pharmaceutical and Novo Nordisk have also scaled back their cell therapy initiatives, citing a shift in strategic focus. This trend highlights the complexities involved in developing and marketing cell therapies, particularly those that require extensive infrastructure and investment.

As part of the wind-down process, Galapagos plans to close facilities in several locations, including Leiden and Basel in Europe, as well as Princeton and Pittsburgh in the United States, and Shanghai in China. This closure will result in approximately 365 job losses across these sites. The Galapagos board unanimously approved the decision, with the exception of two directors appointed by Gilead Sciences, who recused themselves from the vote.

The company, which reported a cash position of €3.1 billion (about $3.6 billion) at the end of the first half of 2025, intends to use this capital to pursue new opportunities in immunology, oncology, and virology. Galapagos plans to acquire or license clinical-stage drugs that align with its revised focus. The company will continue its partnership with Gilead, which retains an equity stake in Galapagos.

Financial Implications and Future Outlook

Galapagos anticipates that the wind-down of its cell therapy business will result in operating costs ranging from €100 million to €125 million from the fourth quarter of 2025 through 2026. Additionally, one-time restructuring costs are estimated between €150 million and €200 million during 2026. An updated cash outlook for 2025 is expected in the third-quarter earnings report due in early November.

The strategic shift comes as Henry Gosebruch takes the helm as CEO, succeeding the retiring Paul Stoffels. Under Gosebruch’s leadership, Galapagos aims to build a new pipeline and strengthen its position in the evolving biopharmaceutical landscape.

As the company moves forward, it will be crucial for Galapagos to adapt to the changing dynamics of the biopharmaceutical sector, especially as interest in cell therapies continues among other major players in the industry.