Galapagos to Shutter Cell Therapy Unit in Major Strategic Pivot
The move to wind down the division, acquired in 2022 for over €139M, follows a failed sale attempt, as the company pivots to conserve cash and focus on its core drug pipeline.
Galapagos NV is dismantling its cell therapy ambitions, announcing a board decision to initiate a full wind-down of the division in a significant strategic reversal for the Belgian-American biotech firm.
The decision impacts approximately 365 employees across Europe, the U.S., and China and involves the closure of sites in Leiden, Basel, Princeton, Pittsburgh, and Shanghai. Shares of Galapagos (GLPG) were largely flat in Tuesday trading, with a slight dip of less than 1% to $32.74, as investors digested the long-term implications of the pivot.
The move marks a stark end to a costly venture that began just a few years ago. In a press release issued Monday, the company stated the shutdown follows a "comprehensive strategic review and sale process." The inability to find a buyer for the unit suggests a challenging market for cell therapy assets and a potential lack of confidence from prospective partners in the division's value proposition.
Galapagos plunged into the highly competitive CAR-T therapy space in mid-2022 with the all-cash acquisitions of CellPoint for €125 million upfront and AboundBio for $14 million. The strategy at the time was to accelerate the company’s entry into next-generation cancer treatments by leveraging a decentralized, point-of-care manufacturing model. Today's announcement unwinds that nine-figure bet entirely.
Financially, the decision appears to be a move to staunch significant cash burn and refocus resources. While the company is unprofitable, with a trailing twelve-month EPS of -$7.92, it boasts a formidable cash position, reporting approximately €3.0 billion in cash and cash equivalents as of the end of 2025. By eliminating the high operational costs associated with cell therapy research and development, Galapagos can extend its financial runway and redirect capital.
The company, which has a market capitalization of roughly $2.17 billion, indicated it will provide an update on the estimated costs of the wind-down during its full-year 2025 earnings release on February 23, 2026.
With the cell therapy chapter closing, Galapagos intends to sharpen its focus on its remaining pipeline and external growth. The company highlighted its ongoing TYK2 inhibitor program, GLPG3667, for severe auto-immune indications, and stated it would evaluate all strategic alternatives to accelerate its development. Furthermore, CEO Henry Gosebruch signaled an intent to pursue "transformative business development for future growth," suggesting the company may leverage its substantial cash reserves for acquisitions or in-licensing deals to rebuild its pipeline.
Wall Street has maintained a cautious stance on Galapagos, with a majority of analysts rating the stock a 'Hold' and at least one recommending a 'Sell', according to market data. This strategic reset, though drastic, may be viewed by some as a necessary, if painful, step to streamline operations and align spending with more promising near-term assets. The failure to divest the cell therapy unit will likely be a key point of discussion for investors, who will be looking for a clearer picture of the company's forward strategy and capital allocation plans during its upcoming earnings call.