Galapagos Ends Cell Therapy Business After Failed Sale Attempts

Galapagos, the Belgian biopharmaceutical company, announced on Tuesday that it will wind down its cell therapy business after failing to find a buyer for the assets. This decision follows a strategic review initiated earlier this year that sought to reposition the company’s focus on more viable sectors within biopharmaceuticals.

The company had actively sought buyers since May, but a comprehensive search yielded no satisfactory offers. Most proposals were from financial investors and lacked the necessary terms or financing to support the future of the cell therapy assets. In its announcement, Galapagos stated, “Based on this assessment and extensive input from its advisors, Galapagos intends to wind down its cell therapy business.”

Galapagos had previously envisioned a significant role for cell therapy in its future, aiming to enhance existing treatments that involve complex processes of harvesting and engineering a patient’s immune cells. The company’s innovative approach promised to streamline this process, reducing delivery times from over a month to about a week. Despite these advancements, changing market dynamics and substantial investment requirements contributed to the decision to close this division.

Transitioning Strategy and Market Challenges

In a notable shift from its earlier plans, Galapagos had initially intended to spin out its assets while focusing exclusively on cancer cell therapies. However, by May, the strategy evolved to include a complete sale of all assets, including its clinical-stage programs. The company’s leadership now aims to use its capital to acquire or license promising drugs in immunology, oncology, and virology, while continuing its partnership with Gilead Sciences, which retains an equity stake in Galapagos.

The biopharmaceutical landscape has recently seen increased activity in cell therapy, with major companies like Bristol Myers Squibb and AstraZeneca making significant acquisitions. Earlier this month, Bristol Myers Squibb announced a $1.5 billion deal for preclinical company Orbital Therapeutics, highlighting the competitive nature of the market. However, Galapagos is not alone in retreating from cell therapy; both Takeda Pharmaceutical and Novo Nordisk recently announced similar decisions, citing a need to prioritize their portfolios.

Impact on Employment and Financial Projections

The decision to wind down the cell therapy division will result in the closure of facilities in multiple locations, including Leiden (Netherlands), Basel (Switzerland), Princeton (New Jersey), Pittsburgh, and Shanghai, affecting approximately 365 employees across these sites. The board of Galapagos unanimously approved this plan, with the exception of two directors appointed by Gilead, who recused themselves from the vote.

Financially, the wind-down is projected to incur operating costs between €100 million and €125 million from the fourth quarter of 2025 through 2026, along with one-time restructuring costs estimated at €150 million to €200 million in 2026. The company reported a cash position of €3.1 billion (approximately $3.6 billion) as of the end of the first half of 2025, which will be directed towards building a new pipeline under the management of recently appointed CEO Henry Gosebruch, who succeeded Paul Stoffels.

Galapagos plans to provide an updated cash outlook for 2025 in its upcoming third-quarter earnings report in early November, as it aims to navigate this transition while refocusing on its core competencies in the biopharmaceutical sector.