Galapagos to Wind Down Cell Therapy Unit, Impacting 365 Jobs and 5 Facilities
Belgian biotech company Galapagos has announced plans to wind down its cell therapy business, marking a significant shift in strategy that will affect hundreds of employees across multiple countries. The decision comes after a six-month period of uncertainty and failed attempts to find a suitable buyer for the unit.
Strategic Reversal and Job Losses
Galapagos CEO Henry Gosebruch stated that "no viable proposals were received with terms or financing that would reasonably support the business's future." This development follows the company's May announcement that it was exploring strategic alternatives for its cell therapy division.
The wind-down process, subject to discussions with worker representatives in Belgium and the Netherlands, is expected to impact approximately 365 employees in Europe, the United States, and China. Galapagos plans to close five facilities:
- Two in the United States
- One in the Netherlands
- One in Switzerland
- One in China
Financial Implications and Future Focus
The company anticipates significant financial repercussions from this decision:
- Cell therapy operating costs of up to 125 million euros from Q4 2025 through 2026
- One-time restructuring costs between 150-200 million euros in 2026
Despite these costs, Galapagos reported a strong cash position of 3.1 billion euros ($3.6 billion) as of June 2025. The company intends to redirect its resources towards "transformational business development" deals to build a new pipeline of drug candidates.
Industry Context and Market Dynamics
Galapagos' decision reflects broader challenges in the cell therapy sector. Recent announcements from pharmaceutical giants Novo Nordisk and Takeda, both abandoning their cell therapy efforts, underscore the difficulties faced by companies in this field. These industry-wide shifts have resulted in nearly 400 layoffs across the three companies.
The wind-down of Galapagos' cell therapy unit marks the end of a tumultuous period for the company, which began with plans to split the business in January 2025. Despite initially positioning itself as a "focused cell therapy company" under former CEO Paul Stoffels, Galapagos has now pivoted away from this strategy entirely.
References
- Galapagos to wind down cell therapy unit, threatening 365 jobs and 5 facilities
Galapagos is planning to wind down its cell therapy business, completing a whiplash change that saw the biotech go from focusing on the modality to ditching it in six months.
Explore Further
What factors influenced Galapagos' decision to abandon its cell therapy unit despite having a strong cash position?
What are the detailed financial implications of the wind-down process beyond the one-time restructuring costs and operating expenses?
How does Galapagos plan to allocate its resources for future drug development after shifting away from the cell therapy strategy?
What challenges led to the industry's broader struggles in cell therapy, as exemplified by Novo Nordisk and Takeda's similar decisions?
What were the initial reasons for Galapagos' strategic pivot to focus on cell therapy under former CEO Paul Stoffels, and how have these reasons evolved?