Biotech company Galapagos to phase out cell therapy operations, putting 365 jobs at risk
Belgian-Dutch biotech company Galapagos has announced plans to phase out its cell therapy activities, a move expected to affect around 365 employees across Europe, the United States and China.
The decision follows an unsuccessful search for a buyer, with the company confirming that “no viable proposals” were received. Galapagos shares dropped sharply on the Brussels stock exchange on Tuesday morning after the news, falling more than 15 per cent to 25.16 euros.
Facility closures and restructuring plans
The restructuring could also lead to the closure of Galapagos’ facilities in Leiden, Basel, Princeton, Pittsburgh and Shanghai. The company said it intends to reposition the remaining organisation “for long-term growth”, maintaining its core operations at headquarters in Mechelen.
“In recent months, we have undertaken a thorough strategic review and sales process to identify potential buyers or investors with the expertise and resources to continue the cell therapy business,” said CEO Henry Gosebruch. “Despite a limited number of non-binding offers, we ultimately received no viable proposals with terms or financing that would sufficiently secure the future of these businesses.”
The announcement follows a turbulent year for Galapagos. In January, the company revealed plans to split into two publicly listed entities, with one focused on cell therapies and another, SpinCo, aimed at developing innovative medicines “through transformative transactions.” Those plans were abandoned in May, when the company instead began exploring “all strategic alternatives” for its cell therapy arm.
Financial impact and outlook
If the phase-out proceeds after consultations with works councils, Galapagos expects operating costs related to cell therapy to reach 100–125 million euros between late 2025 and 2026, alongside restructuring costs of 150–200 million euros in 2026.
Galapagos will publish its third-quarter results in early November. In the first half of 2025, the company reported a loss of 259.1 million euros, underscoring the financial pressures behind the decision.
The pharmaceutical company Galapagos NV headquarters in Mechelen, Thursday 09 January 2025. Biotech company Galapagos splits into two and cuts 300 jobs in Europe. A significant reduction in the workforce is planned in Belgium. BELGA PHOTO JONAS ROOSENS
#FlandersNewsService | The pharmaceutical company Galapagos NV headquarters in Mechelen © BELGA PHOTO JONAS ROOSENS
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